TADANO : Consolidated Financial Statement for the Fiscal Year Ended March 31, 2016

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Planning and Administration Division Tel： [phone]

Date： May 11, 2016

URL： http://www.tadano.com

Consolidated Financial Statement for the Fiscal Year Ended March 31, 2016

1. Consolidated Business Results for the Fiscal Year from April 1, 2015 to March 31, 2016

   （Unit: Millions of Yen）

   Sales	Operating Income	Net Income Attributable to Tadano Ltd.
   Fiscal Year Ended March 31, 2016	209,426 2.6%	31,062 5.4%	19,621 0.7%
   Fiscal Year Ended March 31, 2015	204,059 12.3%	29,462 39.4%	19,483 35.2%

   Note: Listed values less than one million yen are rounded down.

   Percentage figures represent increase (decrease) in comparison to results from the same period of the previous fiscal year.

2. Outlook for Consolidated Business Performance for the Fiscal Year from April 1, 2016 to March 31, 2017

   （Unit: Millions of Yen）

   Sales	Operating Income	Net Income Attributable to Tadano Ltd.
   Full-Year Term	190,000 (9.3%)	20,000 (35.6%)	13,500 (31.2%)

   Note: Percentage figures represent increase (decrease) in comparison to results from the same period of the previous fiscal year.

   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.

3. Overview of the Fiscal Year Ended March 31, 2016

   Despite rising capital investment, various factors led to a standstill in the Japanese economy during the fiscal year under review. These factors included weak exports, attributed to slowing growth in emerging markets, and lack of growth in personal consumption, corporate earnings, and production. While the European economy showed signs of recovery, growth in the U.S. economy slowed. The slowing trend in emerging markets grew more pronounced. Various factors contributed to a growing sense of uncertainty, including the economic slowdown in China, trends in crude oil prices, and

   geopolitical risks, combined with considerable fluctuations in foreign exchange and stock markets since the start of the calendar year.

   In our industry, high utilization rates continued in general in the Japanese market, driven by factors including earthquake recovery and reconstruction, disaster preparedness and mitigation, efforts to address an aging infrastructure, and recovering private sector construction investment, resulting in continuing high demand. Despite regional variations, overall demand outside Japan declined. Demand grew in Europe and grew slightly in Southeast Asia, but it fell slightly in the Middle East and fell pronouncedly in North America and Central and South America.

   Boosted by growth in sales of mobile cranes and aerial work platforms, sales in the Japanese market totaled 104,981 million yen, up 4.4% from the previous fiscal year, despite lower sales of truck loader cranes. A company focus on expanding sales of larger products and capturing demand related to plants and infrastructure resulted in sales outside Japan of 104,444 million yen, a new record and 0.9% above the previous fiscal year. Total sales rose to 209,426 million yen, up 2.6% from the previous fiscal year. Sales outside Japan accounted for 49.9% of all sales.

   Efforts to maintain and improve sales prices, cost savings, the effects of exchange rates, and other factors resulted in operating income of 31,062 million yen, up 5.4% from the previous fiscal year. With the recording of extraordinary losses of 1,080 million yen, including revaluation losses on investments in affiliates related to our China Operations, net income attributable to Tadano Ltd. totaled 19,621 million yen, up 0.7% from the previous fiscal year.

   These figures resulted in a fifth consecutive year of revenue and profit growth. Both sales and profits reached record highs for the third consecutive year.

   Outline of Key Product Lines

   Thanks to continuing high demand and a focus on expanding sales, Japanese sales of mobile cranes rose by 7.7% from the previous fiscal year to 51,104 million yen. Outside Japan, even as demand fell, sales rose by 1.6% from the previous fiscal year to 90,429 million yen, driven by a focus on expanding sales of larger products and capturing demand related to plants and infrastructure. Total sales of mobile cranes increased by 3.7% from the previous fiscal year to 141,534 million yen.

   Despite a focus on expanding sales, Japanese sales of truck loader cranes fell by 5.1% from the previous fiscal year to 18,686 million yen, amid decreasing demand. Sales outside Japan totaled 1,688 million yen, up 47.5% from the previous fiscal year, thanks to a focus on emerging market sales. Total sales of truck loader cranes fell to 20,375 million yen, down 2.2% from the previous fiscal year.

   Thanks to continuing high demand in the rental industry and backed by growing need for infrastructure inspections and an apparent trend toward resumption of capital investment in the electric utility and electric work industries, sales of aerial work platforms increased by 11.1% from the previous fiscal year to 19,432 million yen.

   Sales of parts, repairs, used cranes, and other products and services fell 4.2% from the previous fiscal year to 28,084 million yen.

4. Outlook for the Fiscal Year Ended March 31, 2017

Despite expectations of personal consumption recovery and growth in capital investment, we expect the Japanese economy to remain at a standstill due to a lack of export growth resulting from slowing overseas economies. Concerns outside Japan include economic uncertainty in Europe, slowing economic growth in the U.S., slowing growth in emerging markets, trends in exchange rates and crude oil prices, and geopolitical risks.

We expect demand in the Japanese market to remain high, backed by high utilization rates driven by factors including earthquake recovery and reconstruction, disaster preparedness and mitigation, efforts to address an aging infrastructure, and construction demand for the 2020 Olympics in Tokyo. Nevertheless, we do expect a slight decline due to the effects of shifting production toward models meeting new emissions restrictions. Due to concerns raised by the slowdown in emerging economies and the continuing low prices of crude oil and other resources, we expect an overall decline in overseas demand, with some variation from region to region.

Under the Tadano Group Mid-Term Management Plan (14-16) basic policy of "Becoming a Stronger Company," we will implement seven strategies to realize three priorities.

During fiscal year 2016, we will wrap up the final year of the Mid-Term Management Plan (14-16) and consider what preparations need to be made for the next Mid-Term Management Plan (17-19). We will also prepare for and respond to any sudden market drops and escalating competition.