Appendix I            
Consolidated Balance Sheet (Summary)              
        (Millions of yen)
As of December 20, 2006
As of March 20, 2006
  
Difference
As of December 20, 2005
 
(A)
% of Total
(B)
% of Total
  
(A) - (B)
Amount
% of Total
 
Assets  
Current assets  
Cash and time deposits
12,159
12,147
  
12
11,187
Trade notes and accounts receivable
85,616
85,012
  
603
73,256
Inventories
67,283
58,177
  
9,106
63,738
Other current assets
20,622
13,854
  
6,768
16,489
 
Total current assets
185,682
68.9
169,192
66.3
  
16,490
164,672
65.9
   
Fixed assets  
Property, plant and equipment
39,145
39,656
  
(510)
39,183
Intangible fixed assets
7,454
8,422
  
(967)
8,611
Investments and other assets
37,224
37,952
  
(727)
37,321
 
Total fixed assets
83,824
31.1
86,030
33.7
  
(2,206)
85,116
34.1
                       
 
Total Assets
269,507
100.0
255,222
100.0
  
14,284
249,789
100.0
 
 
Liabilities  
Current liabilities  
Trade notes and accounts payable
71,530
65,082
  
6,447
61,739
Short-term bank loans
24,122
30,274
  
(6,152)
34,357
Other current liabilities
32,532
33,616
  
(1,084)
28,279
 
Total current liabilities
128,185
47.6
128,973
50.5
  
(788)
124,376
49.7
 
Long-term liabilities  
Corporate bonds
10,000
10,000
  

-
10,000
Convertible bonds
14,268
14,368
  
(100)
15,000
Long-term debt
8,741
7,914
  
827
10,556
Acrued retirement benefits for employees
35,581
35,774
  
(192)
35,219
Other long-term liabilities
1,223
1,351
  
(127)
2,577
 
Total long-term liabilities
69,815
25.9
69,408
27.2
  
406
73,353
29.4
   
 
Total liabilities
198,000
73.5
198,382
77.7
  
(382)
197,729
79.1
   
Minority interests  
  Minority interests
-
-
4,090
1.6
  
(4,090)
3,921
1.6
                         
Shareholders' equity  
Common stock
-
-
15,858
6.2
  
(15,858)
15,541
6.2
Additional paid-in capital
-
-
11,329
4.4
  
(11,329)
11,013
4.4
Retained earnings
-
-
20,367
8.0
  
(20,367)
15,971
6.4
Net unrealized holding gain on securities
-
-
4,739
1.9
  
(4,739)
4,734
1.9
Foreign currency translation adjustments
-
-
764
0.3
  
(764)
1,179
0.5
Treasury stock, at cost
-
-
(309)
(0.1)
  
309
(303)
(0.1)
 
Total shareholders' equity
-
-
52,750
20.7
  
(52,750)
48,137
19.3
 
   
 
Total liabilities, minority interests, and shareholders' equity
-
-
255,222
100.0
  
(255,222)
249,789
100.0
                       
                       
Net assets      
Shareholders' equity      
Common stock
15,908
-
    
15,908
-
  
Additional paid-in capital
11,379
-
    
11,379
-
  
Retained earnings
33,181
-
    
33,181
-
  
Treasury stock, at cost
(344)
-
    
(344)
-
  
 
Total shareholders' equity
60,125
22.3
-
    
60,125
-
  
                   
Evaluation and translation adjustments      
Net unrealized holding gain on securities
4,505
-
    
4,505
-
  
Deferred hedge income
(17)
  
-
    
(17)
-
  
Foreign currency translation adjustments
1,753
  
-
    
1,753
-
  
 
Total evaluation and translation adjustments
6,241
2.3
  
-
      
6,241
-
    
               
Minority interests
5,139
  
1.9
  
-
      
5,139
-
    
               
 
Total net assets
71,506
  
26.5
  
-
      
71,506
-
    
               
 
Total liabilities and net assets
269,507
   100.0  
-
      
269,507
-
    
 
 
 
 
 

Appendix II
Consolidated Statements of Income (Summary)
(Millions of yen)
   
Nine Months Ended
20 December, 2006
  
Nine Months Ended
20 December, 2005
  
Difference
  
(%)
   
 
(A)
  
% of Total
  
(B)
  
% of Total
  
(A)-(B)
  
(A)/(B)
   
Net sales 265,005   100.0   228,179   100.0   36,826   116.1
Cost of sales 188,599   71.2   165,867   72.7   22,732   113.7
   
Gross profit 76,405   28.8   62,312   27.3   14,093   122.6
                       
Selling, general and administrative expenses 53,748   20.3   48,396   21.2   5,352   111.1
   
Operating income 22,657   8.5   13,915   6.1   8,741   162.8
                       
Non-operating income                      
Interest and dividends received
456
253
  

202

  
Miscellaneous income
1,388
1,217
  
171
  
   
Total non-operating income 1,845   0.7   1,471   0.6   373   125.4
                         
Non-operating expenses                      
Interest expense
905
966
  
(60)
  
Miscellaneous expenses
687
399
  
288
  
   
Total non-operating expenses 1,593   0.6   1,366   0.6   227   116.7
                         
   
Ordinary income 22,908   8.6   14,021   6.1   8,887   163.4
                         
Extraordinary gains 3,100   1.2   206   0.1  
2,893
   1,501.9
Extraordinary losses 4,561   1.7   4,758   2.1  
(196)
   95.9
   
Income before income taxes and minority
  interests		 21,446   8.1   9,469   4.1   11,977   226.5
                         
Provision for income taxes- current 4,952   1.9   4,983   2.2  
(31)
   99.4
Provision for income taxes- deferred 2,368   0.9   (1,319)   (0.6)  
3,688
   -
Minority interests 631   0.2   43   0.0  
587
   1,439.4
   
Net income (loss) 13,494   5.1   5,761   2.5   7,733   234.2
   

Appendix III
Consolidated Statement of Changes in Net Assets
(Millions of yen)
 
Shareholders’ equity
 Common stock  Additional paid-in
 capital		  Retained earnings  Treasury stock, at
 cost		  Total shareholders’
 equity
Balance at March 20, 2006
15,858
11,329
20,367
(309)
47,246
Changes in the third quarter          
  Exercise of share warrant
50
49
    
99
  Cash dividends    
(2,093)
  
(2,093)
  Board members' bonus    
(169)
  
(169)
  Net income    
13,494
  
13,494
  Acquisition of own shares      
(35)
(35)
  Disposal of treasury stock  
0
  
0
1
  Increase due to increase of
  subsidiaries		    
1,246
  
1,246
  Decrease due to increase of
  subsidiaries		    
(21)
  
(21)
  Increase due to decrease of
  subsidiaries		    
1,602
  
1,602
  Decrease due to decrease of
  companies to which equity
  method is applied		    
(1,246)
  
(1,246)
  Net changes in the items other
  than shareholders’ equity in
  the third quarter		          
Net changes in the third quarter
50
50
12,813
(35)
12,879
Balance at December 20, 2006
15,908
11,379
33,181
(344)
60,125

 
Valuation and translation adjustments
  Minority
 interests		  Total net
 assets
 Net unrealized
 holding gain on
 securities		  Deferred hedge
 income		  Foreign currency
 translation
 adjustments		  Total evaluation
 and translation
 adjustments
Balance at March 20, 2006
4,739
- 
764
5,503
4,090
56,840
Changes in the third quarter            
  Exercise of share warrant          
99
  Cash dividends          
(2,093)
  Board members' bonus          
(169)
  Net income          
13,494
  Acquisition of own shares          
(35)
  Disposal of treasury stock          
1
  Increase due to increase
  of subsidiaries		          
1,246
  Decrease due to increase
  of subsidiaries		          
(21)
  Increase due to decrease
  of subsidiaries		          
1,602
  Decrease due to decrease
  of companies to which
  equity method is applied		          
(1,246)
  Net changes in the items
  other than shareholders’
  equity in the third quarter
(233)
(17)
989
738
1,048
1,787
Net changes in the third quarter
(233)
(17)
989
738
1,048
14,666
Balance at December 20,2006
4,505
(17)
1,753
6,241
5,139
71,506

Appendix IV
Consolidated Statements of Cash Flows (Summary)
(Millions of Yen)
 
Nine Months Ended
20 December, 2006
 
Nine Months Ended
20 December, 2005
  
Difference
 
(A)
  
(B)
  
(A)-(B)
Cash flows from operating activities                      
  Income before income taxes and minority interests     21,446       9,469       11,977
  Depreciation and amortization     5,095       5,097       (2)
  Impairment loss on fixed assets     2,030       -       2,030
  (Increase) decrease in trade receivables     (3,367)       18,405       (21,772)
  (Increase) decrease in inventories     (8,686)       (9,418)       732
  Increase (decrease) in trade payables     3,605       (5,543)       9,148
  Income taxes paid     (7,043)       (10,474)       3,430
  Other, net     (4,015)       435       (4,451)
Net cash provided by (used in) operating activities     9,066       7,972       1,094
                       
Cash flows from investing activities                      
  Purchases of property, plant and equipment and intangible assets     (5,895)       (6,199)       304
  Proceeds from sales of property, plant and equipment     1,068       338       729
  Purchases of investment securities     (540)       (95)       (445)
  Proceeds from sales of investment securities     188       213       (24)
  Proceeds from sales of securities of affiliates     1,792       -       1,792
  Other, net     (222)       (219)       (2)
Net cash provided by (used in) investing activities     (3,609)       (5,962)       2,353
                       
Cash flows from financing activities                      
  Increase (decrease) in short-term debt     (3,517)       (4,881)       1,363
  Proceeds from long-term debt     3,715       20       3,695
  Repayments of long-term debt     (4,603)       (3,920)       (682)
  Dividends paid to shareholders of the Company     (2,093)       -       (2,093)
  Dividends paid to minority shareholders     (161)       (186)       24
  Other, net     (38)       (32)       (5)
Net cash provided by (used in) financing activities     (6,699)       (9,001)       2,301
                       
Effect of exchange rate changes on cash and cash equivalents     173       228       (55)
Net increase (decrease) in cash and cash equivalents     (1,068)       (6,762)       5,693
Cash and cash equivalents at beginning of year     12,102       17,906       (5,804)
Increase due to inclusion of subsidiaries in consolidation     975       -       975
Cash and cash equivalents at December 20, 2006     12,008       11,144       864

 

Appendix V

Segment Information

Business Segments

    (Millions of yen)
    Nine months ended December 20, 2006
    Motion
Control		   Robotics   System
Engineering		   Information
Technologies		   Other   Total   Eliminations
& Corporate		   Consolidated
Net sales                              
Sales to third parties 119,686   89,544   31,728   18,421   5,623   265,005   -   265,005
  Intersegment sales
  and transfers 		13,802   304   2,078   2,231   13,705   32,123   (32,123)  

-
 
  Total sales 133,489   89,849   33,807   20,653   19,329   297,129   (32,123)   265,005
Operating costs and
  expenses 		118,260   83,783   34,441   20,125   17,899   274,509   (32,160)   242,348
Operating income   (loss) 15,229   6,066   (634)   528   1,430   22,620   36   22,657
                                 
  (Note)1. Business segments are adopted for inner management.
  2. The name of the "Robotics Automation" segment was changed to "Robotics". This change has no effect.
  3. Changes in accounting methods
(1) The Company has adopted "Accounting Standard for Directors' Bonus". As a result of this change, operating costs and expenses in the third quarter increased for Motion Control by 46 million yen, Robotics by 25 million yen, System Engineering by 18 million yen, Information Technologies by 15 million yen, and Other by 14 million yen. Operating income decreased as much for each business segment.
(2) Allowance for directors' retirement benefits had previously been recognized when actual payment was made, however the company decided to make an allowance for directors' retirement benefits as necessary according to the provisions of the Company's bylaw at the end of the third quarter. As a result of this change, operating costs and expenses in the third quarter increased for Motion Control by 40 million yen, Robotics by 26 million yen, System Engineering by 18 million yen, and Other by 5 million yen. Operating income decreased as much for each business segment.
(3) The earnings and expenses of overseas subsidiaries had previously been calculated using the spot exchange rate on the record date, however the Company decided to use the average exchange rate during the accounting period. As a result of this change, net sales decreased for Motion Control by 1,409 million yen, Robotics by 802 million yen, and Information Technologies by 0 million yen. Operating income decreased for Motion Control by 136 million yen, Robotics by 16 million yen, Information Technologies by 0 million yen.

    (Millions of yen)
    Nine months ended December 20, 2005
    Motion
Control		   Robotics
Automation		   System
Engineering		   Information
Technologies		   Other   Total   Eliminations
& Corporate		   Consolidated
Net sales                              
  Sales to third parties 98,354   84,921   21,994   16,109   6,800   228,179   -   228,179
  Intersegment sales
  and transfers 		12,370   949   2,089   1,729   16,841   33,981   (33,981)   -
  Total sales 110,725   85,871   24,084   17,838   23,642   262,160   (33,981)   228,179
Operating costs and
  expenses 		102,530   78,840   26,617   17,879   22,377   248,244   (33,980)   214,263
Operating income 8,194   7,030   (2,533)   (40)   1,264   13,916   (1)   13,915
     
  (Note)1. Business segments are adopted for inner management.
  2. Changes in accounting methods
License fees had previously been included in non-operating income, however the Company decided to include them in net sales.
This change had minor effect on net sales and operating income.


Geographical Areas

   
(Millions of yen)
   
    Nine months ended December 20, 2006    
    Japan   The
Americas		   Europe   Asia   Total   Eliminations
& Corporate		   Consolidated    
Net sales                              
Sales to third parties 171,832   39,226   32,392   21,554   265,005   -   265,005    
  Intersegment sales
  and transfers 		40,631   169   270   7,822   48,894   (48,894)   -    
  Total sales 212,463   39,396   32,663   29,377   313,900   (48,894)   265,005    
Operating costs and
  expenses 		198,093   35,446   30,978   26,596   291,115   (48,766)   242,348    
Operating income 14,369   3,949   1,684   2,781   22,785   (127)   22,657    
                                 
     
  (Note)1. Geographical areas are divided into categories based on their geographical proximity.
  2. The regions that belong to each area are as follows.
(1) The Americas - U.S.A., etc
(2) Europe - Germany, Sweden, The United Kingdom, etc
(3) Asia - The People's Republic of China, Singapore, Korea, etc
  3. Changes in accounting methods
(1) The Company has adopted "Accounting Standard for Directors' Bonus". As a result of this change, operating costs and expenses in the third quarter increased for Japan by 120 million yen. Operating income decreased as much.
(2) Allowance for directors' retirement benefits had previously been recognized when actual payment was made, however the company decided to make an allowance for directors' retirement benefits as necessary according to the provisions of the Company's bylaw at the end of the third quarter. As a result of this change, operating costs and expenses in the third quarter increased for Japan by 90 million yen. Operating income decreased as much.
(3) The earnings and expenses of overseas subsidiaries had previously been calculated using the spot exchange rate on the record date, however the Company decided to use the average exchange rate during the accounting period. As a result of this change, net sales decreased for The Americas by 133 million yen, Europe by 1,500 million yen, and Asia by 580 million yen. Operating income decreased for The Americas by 10 million yen, Europe by 82 million yen, and Asia by 60 million yen.
         
   
(Millions of yen)
   
    Nine months ended December 20, 2005    
    Japan   North
Americas		   Europe   Asia   Total   Eliminations
& Corporate		   Consolidated    
Net sales                              
  Sales to third parties 144,809   37,273   28,509   17,586   228,179   -   228,179    
  Intersegment sales
  and transfers 		33,780   262   247   5,830   40,120   (40,120)   -    
  Total sales 178,590   37,536   28,756   23,417   268,300   (40,120)   228,179    
Operating costs and
  expenses 		171,174   34,286   26,409   21,552   253,423   (39,159)   214,263    
Operating income 7,415   3,250   2,346   1,864   14,877   (961)   13,915    
     
  (Note)1. Geographical areas are divided into categories based on their geographical proximity.
  2. The regions that belong to each area are as follows.
(1) The Americas - U.S.A., etc
(2) Europe - Germany, Sweden, The United Kingdom, etc
(3) Asia - The People's Republic of China, Singapore, Korea, etc
  3. The geographical area of "North America" has been changed to "The Americas." This change had no effect.
  4. Changes in accounting methods
License fees had previously been included in non-operating income, however the Company decided to include them in net sales.
This change had minor effect on net sales and operating income.


Overseas Sales

   
(Millions of yen)
     
    Nine months ended December 20, 2006      
    The
Americas		   Europe   Asia   Other   Total      
Overseas sales 40,691   33,636   47,210   964   122,504      
Consolidated sales -   -   -   -   265,005      
Percentage of overseas sales in consolidated sales 15%   13%   18%   0%   46%      
     
  (Note)1. Geographical areas are divided into categories based on their geographical proximity.
  2. The regions that belong to each area are as follows.
(1) The Americas - U.S.A., etc
(2) Europe - Germany, Sweden, The United Kingdom, etc
(3) Asia - The People's Republic of China, Singapore, Korea, etc
(4) Other - Australia, etc
  3. Overseas sales are sales made by YASKAWA Electric and its subsidiaries to countries and regions excluding Japan.
  4. Changes in accounting methods
The earnings and expenses of overseas subsidiaries had previously been calculated using the spot exchange rate on the record date, however the Company decided to use the average exchange rate during the accounting period. As a result of this change, overseas sales decreased for The Americas by 128 million yen, Europe by 1,475 million yen, Asia by 534 million yen, and Other by 8 million yen. Consolidated sales decreased by 2,145 million yen. This change had minor effect on the percentage of overseas sales in consolidated sales.
                           
   
(Millions of yen)
     
    Nine months ended December 20, 2005      
    The
Americas		   Europe   Asia   Other   Total      
Overseas sales 38,432   29,661   39,200   1,089   108,383      
Consolidated sales -   -   -   -   228,179      
Percentage of overseas sales in consolidated sales 17%   13%   17%   1%   48%      
     
  (Note)1. Geographical areas are divided into categories based on their geographical proximity.
  2. The regions that belong to each area are as follows.
(1) The Americas - U.S.A., etc
(2) Europe - Germany, Sweden, The United Kingdom, etc
(3) Asia - The People's Republic of China, Singapore, Korea, etc
(4) Other - Australia, etc
  3. Overseas sales are sales made by YASKAWA Electric and its subsidiaries to countries and regions excluding Japan.
  4. In connection with the change in the geographical area of "North America" to "The Americas", sales in Brazil have been included in "The Americas" instead of "Other." This change had minor effect.
   
(Reference)  
Consolidated Sales by Business Segment
 
(Millions of yen)
 
Nine months ended
December 20, 2006
Nine months ended
December 20, 2005
Percentage
of change
Year ended  March 20,
2006
   
Percentage
  
Percentage
  
Percentage
  Motion Control
119,686
45.2％
98,354
43.1％
21.7％
133,909
41.5%
  Robotics
89,544
33.8％
84,921
37.2％
5.4％
113,458
35.1%
  System   Engineering
31,728
12.0％
21,994
9.6％
44.3％
41,932
13.0%
  Information   Technologies
18,421
6.9％
16,109
7.1％
14.4％
24,783
7.7%
  Other
5,623
2.1％
6,800
3.0％
(17.3％)
8,833
2.7%
  Total
265,005
100.0％
228,179
100.0％
16.1％
322,916
100.0%
（Note）The name of the “Robotics Automation” segment was changed to “Robotics” this fiscal year.
   
(Reference)  
Consolidated sales by geographical areas
 
(Millions of yen)
 
Nine months ended
December 20, 2006
Nine months ended
December 20, 2005
Percentage
of change
Year ended March 20, 2006
   
Percentage
  
Percentage
  
Percentage
  Japan
171,832
64.9％
144,809
63.5％
18.7％
208,728
64.6%
  The Americas
39,226
14.8％
37,273
16.3％
5.2％
50,353
15.6%
  Europe
32,392
12.2％
28,509
12.5％
13.6％
38,235
11.8%
  Asia
21,554
8.1％
17,586
7.7％
22.6％
25,600
7.9%
  Total
265,005
100.0％
228,179
100.0％
16.1％
322,916
100.0%

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