Hitachi Construction Machinery

A: The market remains adverse due to the downturn in resource prices, and we anticipated that the demand would be at the same level as the previous fiscal year. On the other hand, in accordance with the FY2014 plan of the Company, we are earnestly striving to expand sales of the full line-up of dump trucks. Also, we have an order backlog of approximately 30% in ultra-large hydraulic excavators and a backlog of approximately 50% in dump trucks, including the orders with originally scheduled deliveries in FY2013.　These order backlogs are incorporated to the presented sales plan.

A: Since the beginning of 2014, demands have slowed down, particularly affected by the face that local government-related projects have been cancelled or postponed due to the change in the government’s policy putting more emphasis on “reform than growth.” We expect that the demand in FY2014 will be almost at the same level as the previous year and estimate that the demand in April will also be at the same level year-on-year.

A: For the foreign exchange sensitivity on operating income in FY2014, we expect a fluctuation of 1 yen in USD to have an impact of ¥1.5 billion and ¥400 million in EUR, and a fluctuation of ¥0.1 in RMB is expected to have a ¥700 million impact.

A: “Others (Mix Account)” consists of declined profits of approximately ¥8.5 billion affected by a decrease in the mining operation constituent ratio, ¥3 billion affected by a decrease in the sales constituent ratio of the Americas, and the rest caused by the difference in models and regions that brought profits in the relevant fiscal year.