TADANO : Consolidated Financial Results (Quantitative) For Second Quarter of FY 2017

Consolidated Financial Results (Quantitative)

For Second Quarter of FY 2017

(Cumulative Term April 1, 2017 through September 30, 2017)

Notes:

1. For the purpose of timely English-language financial information disclosure, Tadano Ltd. provides quantitative financial results reports in concurrence with the disclosure of its original Japanese-language financial results. Detailed qualitative information will be disclosed at a later date in a comprehensive financial results report.

2. Forward-looking statements contained in this report are based on information available as of the date this report was prepared. A variety of factors may cause actual results to differ from projections.

   October 30, 2017

   1

   Tadano Ltd.

   Income Statement (vs. Previous Year)

   (Unit: millions of yen)

   FY2016 First Half		FY2017 First Half		Increase/ Decrease
   Amount	Percentage	Amount	Percentage
   Net sales	90,914	100.0%	82,880	100.0%	-8,034
   Cost of sales	65,282	71.8%	59,120	71.3%	-6,161
   Gross profit on installment sales	94	0.1%	27	0.0%	-66
   Gross profit	25,726	28.3%	23,786	28.7%	-1,939
   Selling, general, and administrative expenses	15,631	17.2%	15,238	18.4%	-393
   Operating income	10,094	11.1%	8,548	10.3%	-1,546
   Non-operating income and loss	-70	-0.1%	-161	-0.2%	-91
   Ordinary income	10,024	11.0%	8,386	10.1%	-1,637
   Extraordinary income and loss	-57	-0.1%	4	0.0%	62
   Income before income taxes	9,966	11.0%	8,391	10.1%	-1,575
   Corporate taxes	2,957	3.3%	2,400	2.9%	-557
   Net income attributable to noncontrolling interests	35	0.0%	21	0.0%	-13
   Net income attributable to Tadano Ltd.	6,973	7.7%	5,969	7.2%	-1,004

   1

   Balance Sheet (vs. End of Previous Fiscal Year)

   （ Unit： millions of yen）

   FY2016 Year-End		FY2017 First Half		Increase/ Decrease
   Amount	Percentage	Amount	Percentage
   Cash deposit	68,745	29.9%	81,660	34.0%	12,915
   Accounts receivable	48,717	21.2%	43,458	18.0%	-5,259
   Inventories	54,877	23.9%	58,172	24.2%	3,295
   Other current assets	5,624	2.4%	5,042	2.1%	-581
   Total current assets	177,965	77.4%	188,334	78.3%	10,369
   Tangible fixed assets	41,183	18.0%	41,224	17.2%	40
   Intangible fixed assets	1,181	0.5%	1,135	0.5%	-45
   Investment and other assets	9,469	4.1%	9,705	4.0%	236
   Total fixed assets	51,834	22.6%	52,065	21.7%	230
   Total assets	229,799	100.0%	240,400	100.0%	10,600

   Accounts payable	26,080	11.3%	33,183	13.8%	7,102
   Interest-bearing debt	37,235	16.3%	36,646	15.3%	-588
   Other liabilities	23,934	10.4%	23,143	9.6%	-790
   Total liabilities	87,250	38.0%	92,973	38.7%	5,723
   Total equity	142,549	62.0%	147,426	61.3%	4,876
   Total liabilities and equity	229,799	100.0%	240,400	100.0%	10,600

   2

   Net Sales by Product

   (Millions of yen)

   Mobile Cranes

   Truck Loader Cranes Aerial Work Platforms Other

   (Unit: millions of yen)

   100,000

   FY2016 First Half		FY2017 First Half		Increase / Decrease
   Amount	Percentage	Amount	Percentage	Amount	Percentage
   Mobile Cranes	57,369	63.1%	45,679	55.2%	-11,689	-20.4%
   Truck Loader Cranes	9,534	10.5%	10,074	12.2%	540	5.7%
   Aerial Work Platforms	10,831	11.9%	12,117	14.5%	1,285	11.9%
   Other	13,178	14.5%	15,008	18.1%	1,829	13.9%
   Total	90,914	100%	82,880	100%	-8,034	-8.8%

   90,914 80,000

   13,178

   10,831

   82,880

   15,008

   60,000

   9,534

   12,117

   10,074

   40,000 20,000

   57,369

   45,679

   ◆Outside Japan sales ratio 45.3% → 42.2%

   Breakdown of Mobile Crane sales in and outside Japan

   Japan	22,429	18,160	-4,269	-19.0%
   Outside Japan	34,939	27,519	-7,419	-21.2%

   0 FY 2016 First Half FY2017 First Half

   4

   3

   Sales Trends by Market Outside Japan

   (Millions of yen)

   The GR-1600XL, one of the world's
   largest-capacity Rough Terrain Cranes (Released in August 2013)
   FY 00	FY 01	FY 02	FY 03	FY 04	FY 05	FY 06	FY 07	FY 08	FY 09	FY 10	FY 11	FY 12	FY 13	FY 14	FY 15	FY 16	FY 16 First Half	FY 17 First Half
   Europe	11,435	9,754	10,893	11,978	12,000	16,292	19,170	25,566	29,630	19,196	12,739	11,643	12,510	16,844	20,211	22,844	20,701	12,141	7,694
   North America	2,671	2,739	2,755	3,402	4,547	9,798	12,324	18,342	20,145	15,301	6,616	13,938	20,406	27,782	36,836	39,127	25,438	12,788	12,404
   Caribbean, Central and South America	948	586	287	457	866	1,721	2,420	2,542	2,722	887	1,691	3,012	2,201	2,449	3,475	826	1,513	878	445
   Asia	4,225	4,368	5,362	5,185	4,888	4,749	7,861	12,069	10,954	9,680	6,603	9,190	10,982	16,923	16,383	17,083	13,694	7,811	5,694
   Middle East	2,142	3,098	3,602	5,663	7,347	8,507	11,708	13,878	15,836	5,948	6,686	7,432	10,090	18,167	17,052	17,680	10,375	4,900	6,095
   Other	956	1,524	2,066	3,696	4,634	5,790	7,409	9,158	10,063	5,177	3,939	7,654	9,970	13,320	9,576	6,881	5,683	2,636	2,650
   Total	22,379	22,072	24,968	30,384	34,285	46,859	60,894	81,557	89,354	56,191	38,277	52,872	66,160	95,487	103,535	104,444	77,406	41,158	34,984
   Outside Japan Sales Ratio	23.8%	25.0%	30.1%	31.4%	33.7%	38.8%	42.1%	46.8%	54.9%	53.9%	42.6%	46.3%	49.1%	52.5%	50.7%	49.9%	43.1%	45.3%	42.2%
   Exchange rate (USD)	107.83	121.54	125.35	115.99	108.24	110.21	116.38	117.84	103.46	93.57	87.81	79.84	79.82	97.65	105.85	121.05	108.84	111.81	112.37

   120,000

   Sales fell 15.0% compared to the same quarter of the previous fiscal year. Sales grew by 24.4% in Middle East, but fell by 36.6% in Europe, 3.0% in North America, and 27.1% in Asia.

   100,000

   80,000

   60,000

   40,000

   20,000

   0

   Exchange rate (EUR) 99.63 108.8 118.41 131.03 134.47 136.92 146.14 161.24 152.44 130.2 116.39 111.12 102.63 129.68 140.42 134.31 120.33 124.62 121.64

   Notes • Other markets comprise Oceania, Africa, and the CIS.

   • The exchange rates indicated above are average rates over each period. (Since the fiscal year of subsidiaries outside Japan ends in December, full-year rates are averages for January-December; interim rates are averages for January-June.)

   • Euro figures for FY2001 and earlier have been converted from Deutsche Mark.

4

FY2017 Business Performance Forecasts

FY2016		FY2017 forecast		Perc ent c hange
Amount	Per c entage	Amount	Per c entage
Net sales	179,676	100.0%	175,000	100.0%	-2.6%
Operating income	18,484	10.3%	17,000	9.7%	-8.0%
Ordinary income	18,490	10.3%	16,500	9.4%	-10.8%
Net income attributable to Tadano Ltd.	11,881	6.6%	11,000	6.3%	-7.4%

(Unit: millions of yen)

*No changes from the forecast released on April 28, 2017.

Dividends per share	Mid-year Year-end	¥13.00 ¥13.00	Mid-year Year-end	¥13.00 ¥13.00
	Full-year	¥26.00	Full-year	¥26.00

*No changes from the forecast released on April 28, 2017.

Capital investment	¥6,030 million	¥8,000 million
Depreciation	¥3,113 million	¥3,300 million
Exchange rate (USD)	¥108.84	110 (2nd Half)
Exchange rate (EUR)	¥120.33	120 (2nd Half)

Figures for capital investment include leased assets [FY2017 management policies]

1. Pursue the Tadano Group's Core Values (Safety, Quality, Efficiency)

2. Engage in first-year activities of the Mid- Term Management Plan (17-19)

3. Focus on the Tadano Red Arrow, and engaging in Tadano Yellow Arrow activities

4. Prepare for and respond to Tadano Blue Arrow changes and escalating competition

【 Nine Strategies of the Mid-Term Management Plan (17- 19) 】

1. Improve Market Position

2. Enhance Product Competitiveness

3. Pursue Global & Flexible MONOZUKURI

4. Provide Outstanding Quality & Service

5. Improve Product Life-Cycle Value

6. Develop Solution Business

7. Raise Level of Profitability and Asset Efficiency

8. Establish Growth Structure

9. Strengthen the Tadano Group & Global Management Structure

• FY2017 proportion of sales outside Japan: 45.4%

5

FY2017 Forecast (Net Sales by Product)

(Millions of yen)

200,000 179,676

Mobile Cranes

Truck Loader Cranes Aerial Work Platforms Other

(Unit: millions of yen)

150,000

27,213

23,202

FY2016		FY2017 Forecast		Increase / Decrease
Amount	Percentage	Amount	Percentage	Amount	Percentage
Mobile Cranes	109,627	61.0%	103,500	59.1%	-6,127	-5.6%
Truck Loader Cranes	19,633	10.9%	18,800	10.7%	-833	-4.2%
Aerial Work Platforms	23,202	12.9%	22,700	13.0%	-502	-2.2%
Other	27,213	15.2%	30,000	17.2%	2,786	10.2%
Total	179,676	100%	175,000	100%	-4,676	-2.6%

175,000

30,000

22,700

100,000

19,633

18,800

50,000

109,627 103,500

◆Outside Japan sales ratio : 43.1% → 45.4%

Japan	45,017	39,700	-5,317	88.2%
Outside Japan	64,609	63,800	-809	98.7%

Breakdown of Mobile Crane Sales Inside and Outside Japan 0 FY2016 FY2017 Forecast

No changes from the forecast released on April 28, 2017.

However, the structure of net sales by product changed according to the latest situation.

6