Explanatory Meeting for the Third Quarter Ended December 31, 2012 Outline of Answers to Main Questions

Q: Profits are forecasted to significantly advance in the fourth quarter. What are the grounds for this forecast?

A: We plan to secure profits, by raising the sales proportions of Mining machinery and China, and compressing inventory as well as the current foreign exchange situation of the weakening yen.

Q: The outlook for mining machinery demand was revised down again. Do you see any signs of improvement in new orders of mining machinery?

A: Although demand in Indonesia remains sluggish, we have been receiving new inquiries from Russia CIS regions, etc., since the beginning of the year, and we are seeing a slight improvement recently.

Q: Do you still plan to conduct the capital investment plan after considering the current situation of the mining industry?

A: Although the new buildings in the factory are under construction for better production rationalization, we will take a flexible approach with regards to installation of the working machines inside.

Q: What is the outlook for the Chinese market?

A: We have been seeing a slight improvement in the demand for small machineries, but demand overall remains severe. The demand in the fourth quarter is expected to decline by 30% year-on-year and actual demand recovery is forecasted to be in or after the next fiscal year.