Flash Report for the Second Quarter of the Fiscal Year Ending March 31, 2019(Consolidated Basis) (PDF:170.7K )

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES FLASH CONSOLIDATED FINANCIAL RESULTS

For six months ended September 30, 2018 and 2017 and one year ended March 31, 2018

Operating results

Net sales Operating profit

Profit attributable to owners of parent Earnings per share (Yen)

Financial position

Total assets Net assets

Number of shares issued and outstanding Equity Ratio

Cash flows

Operating activities Investing activities Financing activities

Cash and cash equivalents at end of period

Millions of yen

Six months ended

Sep. 30, 2018

Six months ended

Sep. 30, 2017

688,107 709,721 8,454 16,115 (3,592) 10,853 (21.50) 64.97

Millions of yen / Thousand shares

As of Sep. 30, 2018

1,900,544

472,569 481,386 4,160,671

167,046 167,047

24.0%

Millions of yen

Six months ended

Sep. 30, 2018

• (113,421)

As of Sep. 30, 2017

1,785,028

26.1%Six months ended

Sep. 30, 2017

October 30, 2018

(Consolidated)

Thousands of U.S. dollarsSix months ended

Sep. 30, 2018

$

6,058,347 74,432 (31,625)Thousands of U.S. dollarsAs of Sep. 30, 2018

$ 16,733,087

Thousands of U.S. dollarsSix months ended

Sep. 30, 2018

(123,333) $ (998,600)

(47,533) 149,311 50,468

(40,285) (418,498)

155,631 40,277

1,314,589 444,339

Fiscal year forecast

One year ending March 31, 2019

Net salesMillions of yenOperating profit

Profit attributable to owners of parent

1,645,000

66,000

31,000

Notes : 1. This "FLASH CONSOLIDATED FINANCIAL RESULTS" and following financial statements have been prepared in conformity with generally accepted accounting principles and practices in Japan.

• 2. All US$ amounts in these statements represent the arithmetical results of translating Japanese yen to U.S. dollars on the basis of ￥113.58=$1, the rate prevailing as of September 28, 2018, solely for the convenience of the readers.

• 3. As KHI carried out a share consolidation with a 10:1 ratio of common shares with an effective date of October 1, 2017, earnings per share has been calculated assuming that this share consolidation was carried out at the beginning of the fiscal year ended March 31, 2018.

• 4. The company has reported its segment information for six months ended September 30, 2018 and 2017 based on the new reportable segments: Aerospace Systems, Energy System & Plant Engineering, Precision Machinery & Robot, Ship & Offshore Structure, Rolling Stock, Motorcycle & Engine, and Other.

(Consolidated)

Consolidated Balance Sheets

As of September 30 and March 31, 2018

Assets

Current assets

Cash and deposits

Notes and accounts receivable - trade

Merchandise and finished goods

Work in process

Raw materials and supplies

Other

Allowance for doubtful accounts

Total current assets Non-current assets

Property, plant and equipment

Buildings and structures, net Other

Total property, plant and equipment

Intangible assets

Investments and other assets

Other

Allowance for doubtful accounts Total investments and other assets

Total non-current assets

Total assets

Liabilities

Current liabilities

Notes and accounts payable - trade

Electronically recorded obligations - operating

Short-term loans payable

Income taxes payable

Provision for bonuses

Provision for construction warranties

Provision for loss on construction contracts

Advances received

Other

Total current liabilities Non-current liabilities

Bonds payable

Long-term loans payable

Net defined benefit liability

Provision for the in-service issues of commercial aircraft jet engines

Other

Total non-current liabilities Total liabilities

Net assets

Shareholders' equity

Capital stock Capital surplus Retained earnings Treasury shares

Total shareholders' equity

Accumulated other comprehensive income

Valuation difference on available-for-sale securities Deferred gains or losses on hedges

Foreign currency translation adjustment Remeasurements of defined benefit plans

Total accumulated other comprehensive income

Non-controlling interests

Total net assets

Total liabilities and net assets

Millions of yen

As of Sep. 30, 2018

• 57,414

491,502

74,609

412,644

119,331

81,948

(3,906)

1,233,543

195,701

287,661

483,362

16,124

171,031

(3,519)

167,512

667,000

1,900,544

216,735

118,720

136,094

4,372

16,969

11,651

20,690

185,802

264,657

975,694

140,000

165,807

89,699

9,745

47,028

452,279

1,427,974

104,484

54,542

299,406

(127)

458,306

4,064

(1,715)

221

(3,963)

(1,393)

15,656

472,569

1,900,544

As of Mar. 31, 2018

Thousands of

U.S. dollars

As of Sep. 30, 2018

70,632 $ 470,110 62,385

505,494 4,327,364 656,885

326,459 3,633,069

115,893 1,050,634

72,542

(2,247) 1,115,776

721,500

(34,390) 10,860,565

186,623 1,723,023

293,173 2,532,673

479,797

16,178

176,961

(3,685)

173,276

669,252

1,785,028

4,255,696

141,962

1,505,820

(30,983)

1,474,837

5,872,513

16,733,087

245,398 1,908,214

117,772 1,045,254

108,978 1,198,222

6,042 38,493

19,903 149,401

13,000 102,580

18,258 182,162

194,306 1,635,869

145,737 2,330,137

869,398

8,590,368

130,000 1,232,611

185,685 1,459,826

86,836 789,743

- 85,799

31,721 414,052

434,244 1,303,642

3,982,030

12,572,407

104,484 919,915

54,573 480,208

308,010

(124)

466,944

2,636,080

(1,118)

4,035,094

3,526

35,781

403

(15,099)

719

1,946

(5,532) (34,892)

(883) (12,264)

15,324 481,386 1,785,028

137,841 4,160,671 16,733,087

- 3 -

Consolidated Statements of Profit and Loss

For six months ended September 30, 2018 and 2017

Thousands of

Millions of yen

U.S. dollars

Other

Total non-operating expenses

Ordinary profit

Profit before income taxes

Income taxes

Profit

Profit attributable to non-controlling interests

Profit attributable to owners of parent

Six months ended
Sep. 30, 2018
Net sales		688,107	6,058,347
Cost of sales	581,972	5,123,895
Gross profit	106,135	934,451
Selling, general and administrative expenses
Salaries and allowances	26,537	233,641
Research and development expenses	21,240	187,005
Other	49,903	439,364
Total selling, general and administrative expenses	97,680	860,011
Operating profit	8,454	74,432
Non-operating income
Interest income	239	2,104
Dividend income	180	1,585
Share of profit of entities accounted for using equity method	802	7,061
Foreign exchange gains	3,102	27,311
Other	1,398	12,309
Total non-operating income	5,724	50,396
Non-operating expenses
Interest expenses	1,546	13,612
Payments for the in-service issues of
	9,745	85,799
commercial aircraft jet engines
2,680	23,596
13,971	123,006
207	1,823
207	1,823
2,940	25,885
(2,733)	(24,062)
859	7,563
(3,592)	(31,625)

Six months ended

Six months ended

Sep. 30, 2017

709,721

599,529

110,191

25,542

20,659

47,874

94,076

16,115

358

185

2,553

1,442

1,376

5,916 1,338

－

5,577

6,915

15,116

15,116

3,250

11,865

1,011

10,853

Sep. 30, 2018

$

(Consolidated)

Consolidated Statements of Cash Flows

For six months ended September. 30, 2018 and 2017

Cash flows from operating activities

Profit before income taxes Depreciation

Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses

Increase (decrease) in provision for construction warranties Increase (decrease) in provision for loss on construction contracts Increase (decrease) in net defined benefit liability

Increase (decrease) in provision for the in-service issues of commercial aircraft jet enginesInterest and dividend income Interest expenses

Share of loss (profit) of entities accounted for using equity method Decrease (increase) in notes and accounts receivable - trade Decrease (increase) in inventories

Increase (decrease) in notes and accounts payable - trade Decrease (increase) in advance payments

Increase (decrease) in advances received Decrease (increase) in other current assets Increase (decrease) in other current liabilities Other, net

Subtotal

Interest and dividend income received Interest expenses paid

Income taxes paid

Net cash provided by (used in) operating activities Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets

Six months ended

Sep. 30, 2018

Proceeds from sales of property, plant and equipment and intangible assets Purchase of investment securities

Proceeds from sales of investment securities Purchase of shares of subsidiaries and associates Net decrease (increase) in short-term loans receivable Payments of long-term loans receivable

Collection of long-term loans receivable Other, net

Net cash provided by (used in) investing activities Cash flows from financing activities

Net increase (decrease) in short-term loans payable Proceeds from long-term loans payable Repayments of long-term loans payable Proceeds from issuance of bonds Redemption of bonds

Cash dividends paid

Dividends paid to non-controlling interests Other, net

Net cash provided by (used in) financing activities

Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

• 207

29,342

1,465

(2,968)

(1,367)

2,409

4,868

9,745

(420)

1,546

(802)

(9,526)

(78,347)

(28,770)

(1,939)

(12,247)

(7,059)

(17,295)

3,434

(107,727)

477

(1,541)

(4,630)

(113,421)

(43,587)

334

(557)

136

(2,081)

(51)

(91)

82

(1,717)

(47,533)

144,642

7,779

(7,617)

20,000

(10,000)

(5,032)

(679)

218

149,311

(2,250)

(13,893)

64,362

50,468

Millions of yen

Six months ended Sep. 30, 2017

Thousands of

U.S. dollars Six months ended

Sep. 30, 2018

15,116 $ 1,823

27,442 258,338

(115) 12,898

(3,491) (26,131)

(933) (12,036)

(727) 21,210

7,197 42,860

－ 85,799

(543) (3,698)

1,338 13,612

(2,553) (7,061)

(43,312) (83,870)

(31,518) (689,796)

(11,014) (253,302)

(4,386) (17,072)

(40,403) (107,827)

(19,133) (62,150)

(12,149) (152,272)

1,203 (117,983)

30,234 (948,468)

524

4,200

(1,338) (13,568)

(4,536) (40,764)

(123,333) (998,600)

(38,595) (383,756)

566 2,941

(222) (4,904)

54 1,197

(1,791) (18,322)

25 (449)

(57) (801)

45 722

(309) (15,117)

(40,285) (418,498)

110,375 56,355 (16,599) 20,000

1,273,481 68,489 (67,063) 176,087

(10,000) (88,044)

(3,375) (44,304)

(662) (5,978)

(462) 155,631

1,919 1,314,589

(2,457) (19,810)

(10,445) (122,319)

50,722 40,277

566,667

444,339