Financial Results for FY2019

(for the year ended March 31, 2020)

May 12, 2020

Table of Contents

Ⅰ. Consolidated Results for FY2019

Summary of Financial Results

3

R&D/CAPEX/Number of Employees

15

Financial Results by Segment

4

Historical Data

16

Details of Change in Profit

5

Market Overview

17

Summary of Income Statement

6

Forecast

19

  • Financial Results/Impact of COVID-19

Aerospace Systems

7

Energy System & Plant Engineering

8

Precision Machinery & Robot

9

Ship & Offshore Structure

10

Rolling Stock

11

Motorcycle & Engine

12

Summary of Balance Sheet

13

Summary of Cash Flows

14

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2

Summary of Financial Results

[Billion Yen]

FY2018

FY2019

Change

Actual

Forecast

Actual

vs. FY2018

Forecast

in February

in February

Orders Received

1,588.7

1,550.0

1,513.5

75.2

36.5

Net Sales

1,594.7

1,660.0

1,641.3

+

46.5

18.7

Operating Income

64.0

60.0

62.0

1.9

+

2.0

Recurring Profit

37.8

41.0

40.4

+

2.5

0.6

Net Income Attributable to

27.4

25.0

18.6

8.7

6.4

Owners of Parent

Before-tax ROIC

4.5%

4.8%

4.2%

- 0.3%

0.6%

ROE

5.8%

5.2%

4.0%

- 1.8%

1.2%

※Revised order received of FY2018 due to a change and a refinement of calculation methods of order received in the Precision Machinery & Robot segment (1585.9 billion yen → 1588.7 billion yen)

<> exchange rates>

Yen/US$

110.77

107.00

108.94

Yen/EUR

128.33

118.00

121.70

vs. FY2018

  • Orders Received
    • Decreased mainly in Aerospace Systems and Ship & Offshore Structure segment
  • Net Sales
    • Increased as a whole due to an increase in Aerospace Systems, Rolling Stock and other segments, despite a decrease in Motorcycle & Engine, Energy System & Plant Engineering and other segments
  • Profits
    • Operating income decreased as a whole due to a decrease in Motorcycle & Engine, Precision Machinery & Robot and other segments, despite an increase in Aerospace Systems, Rolling Stock segment
    • Recurring profit increased due to a decrease in payments for the in-service issues of commercial aircraft jet engines
    • Net income attributable to owners of parent decreased due to the partial withdrawal of deferred tax assets, and other factors

(Appendix)

Net Sales in Foreign Currencies for FY2019

[Billion]

US$EUR

2.000.44

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3

Financial Results by Segment

[Billion Yen]

Orders Received

Net Sales

Operating Income

FY2018

FY2019

Change

FY2018

FY2019

Change

FY2018

FY2019

Change

Aerospace Systems

431.6

414.9

16.6

463.9

532.5

+

68.5

32.6

42.7

+

10.1

Energy System &

263.5

252.3

11.1

253.0

242.9

10.0

11.6

17.5

+

5.9

Plant Engineering

Precision Machinery & Robot

※1 225.2

218.8

6.3

222.0

217.3

4.7

21.3

12.2

9.1

Ship & Offshore Structure

81.1

56.2

24.9

78.9

71.6

7.2

1.0

-0.6

1.7

Rolling Stock

136.0

125.7

10.3

124.6

136.5

+

11.8

-13.7

-3.8

+

9.9

Motorcycle & Engine

356.8

337.7

19.0

356.8

337.7

19.0

14.3

-1.9

16.3

Others

94.2

107.5

+

13.3

95.1

102.4

+

7.2

2.5

1.2

1.2

Eliminations and corporate※2

-

-

-

-

-

-

-5.7

-5.3

+

0.4

Total

※11,588.7

1,513.5

75.2

1,594.7

1,641.3

+

46.5

64.0

62.0

1.9

※1 Revised order received in FY2018 of Precision Machinery & Robot segment due to change in calculation method of order received

and refinement

Precision Machinery & Robot

(before)

222.4

(after)

225.2

Total

(before)

1585.9

(after)

1588.7

※2 "Eliminations and corporate" includes some expenses incurred at Head Office which were not allocated to each industry segment for internal reporting

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4

Details of Change in Profit

  • Operating Profit

-1.9Billion yen (FY2018 64.0 Billion yen ⇒ FY2019 62.0 Billion yen)

Loss on Rolling Stock

Effects of

Project in FY2018

foreign exchange rates

Change in selling, general and

-4.2

Change in Sales

+16.5

administrative expenses

-10.5

-3.6

+4.3

Long Island Rail

-4.4

Road Project

Change in product mix

and other factors

64.0

62.0

-1.9 Billion yen

FY2018

FY2019

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5

Summary of Income Statement

[Billion Yen]

(

FY2018

FY2019

)

Operating Income

1.9

(

64.0

62.0

)

Net Sales

+

46.5

(

1,594.7

1,641.3

)

Cost of sales

+

44.1

(

1,326.6

1,370.8

)

Selling, general & administrative expenses

+

4.4

(

204.0

208.4

)

-

Salaries and benefits

+

1.6

(

54.9

56.6

)

-

R&D expenses

+

3.8

(

48.7

52.6

)

Non-operating Income / Expenses

+

4.5

(

-26.1

-21.6

)

Net Interest expense (incl. dividend income)

0.4

(

-2.2

-2.6

)

Equity in income of unconsolidated subsidiaries and affiliates

0.3

(

1.5

1.2

)

Gain and loss on foreign exchange

3.7

(

-4.7

-8.4

)

Payments for the in-service issues of commercial aircraft jet

+

3.3

(

-14.8

-11.5

)

engines

Others

+

5.6

(

-5.9

-0.2

)

Extraordinary Income / Losses

1.1

(

-

-1.1

)

- Gain on sales of fixed assets

+

1.2

(

-

1.2

)

-

Loss on business withdrawal

2.3

(

-

-2.3

)

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6

Aerospace Systems

Main Products: Aircrafts for Japan Ministry of Defense(MOD), Component parts for commercial aircrafts, Commercial helicopters, Missiles, Space equipment, Jet engines, Aerospace Gearbox

FY2018(Accumulated)

FY2019(Accumulated)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

U:In Feb.

Orders Received

Net Sales

L: Actual

[Billion Yen]

Order backlog

[530.0]

532.5

431.6 463.9

576.0Billion Yen

371.4

280.5

250.8

201.1

104.9

122.1

79.0

69.7

FY2019 (vs. FY2018)

  • Orders Received: Decreased due to a decrease in aircrafts for MOD and component parts for commercial aircrafts, despite an increase in component parts for commercial aircraft jet engines
  • Net Sales: Increased due to an increase in aircrafts for MOD, component parts for commercial aircrafts and component parts for commercial aircraft jet engines, and other factors
  • Operating Income: Increased due to an increase in sales and other factors

Impact of COVID-19 (FY2020 forecast)

  • A decline in demand for commercial aircraft and a decline in aftermarket sales of commercial aircraft jet engines are expected in accordance with a sharp decline in passenger demand

Operating Income

Operating Margin

8.0%

[Billion Yen]

7.0%

6.4%

[36.0]

5.5%

4.5%

42.7

Sales units of component parts for commercial aircraft [Unit]

32.6

3.9%

3.8%

FY2018

FY2019

5.0%

Boeing 767

31

34

Boeing 777

41

44

21.2

20.5

Boeing 777X

7

9

5.3

9.4

4.8

9.7

Boeing 787

146

167

FY2018

FY2019

Actual

Actual

Before-tax ROIC

5.0%

8.0%

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7

Energy System & Plant Engineering

Main Products: Industrial plants(cement, fertilizer and others), Power plants, LNG tanks, Municipal waste incineration plants, Tunnel boring machines, Crushing machines,

Gas turbine co-generation system, Gas engines, Diesel engines, Gas turbines & steam turbines for marine & land, Marine propulsion system, Aero-dynamic machinery

FY2018(Accumulated)

FY2019(Accumulated)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

U:In Feb.

Orders Received

Net Sales

L: Actual

[Billion Yen]

Order backlog

[280.0]

[250.0]

263.5 253.0

403.4Billion Yen

252.3

242.9

FY2019 (vs. FY2018)

Orders Received:

Decreased compared to FY2018 when

received orders of energy products including

CCPP and LNG tanks in the domestic market,

despite orders received for domestic municipal

Net Sales:

waste incineration plants and other factors

Decreased due to a decrease in energy business

201.6

146.7

184.3

and other factors, despite an increase in

construction works of chemical plants for the

overseas market

124.0

93.9

69.8

Operating Income

Operating Margin

7.2%

[Billion Yen]

8.0%

4.5%

5.2%

[16.0]

17.5

2.6%

11.6

13.0

1.8%

2.1%

0.4%

4.5

5.0

2.2

0.8

0.2

※1. CCPP = Combined Cycle Power Plant

Operating Income: Increased due to an improvement in profitability

of chemical plants for the overseas market,

despite a decrease in revenue

Impact of COVID-19 (FY2020 forecast)

  • There is a possibility that the customer's short-term capital investment decisions will be reviewed due to factors such as economic activity stagnation and resource price instability caused by movement restrictions inside and outside Japan
  • Uncertainty in the future is strengthening due to delays in closing deals and a decrease in after-sales

FY2018

FY2019

Actual

Actual

Before-tax ROIC

9.3%

10.4%

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8

Precision Machinery & Robot

Main Products: Hydraulic components for construction machinery, Hydraulic components and systems for industrial machines,

Marine application machines, Deck cranes and other marine deck equipment, Industrial robots, Medical and pharmaceutical robot

FY2018(Accumulated)

FY2019(Accumulated)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

U:In Feb.

Orders Received

Net Sales

L: Actual

[Billion Yen]

Order backlog

[230.0]

[220.0]

225.2 222.0

50.6Billion Yen

218.8

217.3

172.0

157.1

115.4

104.6

57.1

52.9

Operating Income

Operating Margin

9.5%

9.4%

9.6% 9.6%

[Billion Yen]

21.3

5.6%

14.9

3.6%

3.2% 3.5%

[14.5]

9.6

12.2

4.5

1.7

3.2

5.2

FY2019 (vs. FY2018)

  • Orders Received: Decreased due to a decrease in hydraulic components for construction machinery, despite an increase in each series of robots
  • Net Sales: Decreased due to a decrease in hydraulic components for construction machinery
  • Operating Income: Decreased due to a decrease in sales, an increase in R&D expense of hydraulic components for construction machinery, decrease in robots production in China, and other factor

Impact of COVID-19 (FY2020 forecast)

  • Although demand in China is recovering quickly, overall sales are expected to decline due to a review of capital investment plans and a decrease in demand for construction machinery in other regions including Europe and the US
  • The market conditions for robots for semiconductor manufacturing equipment have been steadily recovering

※About revised order received in FY2018

Revised order received in FY2018 as below due to change in calculation method of order received and refinement

1Q

2Q

3Q

4Q

Before

50.9

104.8

157.3

222.4

After

57.1

115.4

172.0

225.2

FY2018

FY2019

Actual

Actual

Before-tax ROIC

19.8%

8.8%

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9

Ship & Offshore Structure

Main Products: LNG carriers, LPG carriers, Bulk carriers, Submarines, JETFOIL

FY2018(Accumulated)

FY2019(Accumulated)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

U:In Feb.

Orders Received

Net Sales

L: Actual

[Billion Yen]

81.1 78.9

Order backlog

[70.0]

85.9 Billion Yen

65.2

[60.0]

71.6

56.2

53.0

39.7

22.8

37.1

22.0

21.5

Operating Income Operating Margin

[Billion Yen]

2.8

6.1%

4.4%

1.3

1.2

1.0

[-2.0]

3.2%

1.3%

-0.3-1.4-0.7-0.6

-1.7%-1.4%-0.8%

-3.9%

FY2019 (vs. FY2018)

  • Orders Received: Decreased compared to FY2018 when

received orders of submarines, despite received orders of LPG carriers

  • Net Sales: Decreased due to a decrease in construction works of LNG carriers and LPG carriers
  • Operating Income: Deterioated due to a decrease in new building ships and operation losses, and other factors

Impact of COVID-19 (FY2020 forecast)

  • Although there is no request to extend the delivery date of ordered ships at this stage, there is concern that the contract closing date may be delayed due to delays in business negotiations
  • The impact on business performance is limited

Units of Orders Received and Sales of New Building Ships [Unit]

Orders Received

Sales

Orders Backlog

FY2018

FY2019

FY2018

FY2019

FY2019

LNG carriers

5

2

LPG carriers

1

4

6

6

5

Submarines

1

2

2

2

Others

3

2

4

3

Total

5

4

15

14

10

※Sales includes units by percentage-of-completion method

FY2018

FY2019

Actual

Actual

Before-tax ROIC

3.2%

1.4%

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10

Rolling Stock

Main Products: Electric train cars (incl. Shinkansen), Electric and diesel locomotives, Passenger coaches, Bogies

FY2018(Accumulated)

FY2019(Accumulated)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

U:In Feb.

Orders Received

Net Sales

L: Actual

[Billion Yen]

Order backlog

[130.0]

[150.0]

136.0

136.5

499.4Billion Yen

124.6

125.7

79.686.0

91.2

60.5

59.3

24.9 23.3

16.020.4

Operating Income

Operating Margin

[Billion Yen]

[-2.0]

FY2019 (vs. FY2018)

  • Orders Received: Decreased compared to FY2018 when received orders of passenger cars for the US market, despite received orders of Shinkansen and subway for the domestic market
  • Net Sales: Increased due to an increase in passenger cars for the domestic and the US market, despite decrease in component parts for the overseas market
  • Operating Income: Improved due to an increase in sales, a decrease in temporary expense of the US projects incurred in
    FY2018, and other factors, despite time lag and cost fluctuation by the impact of COVID-19 for some projects

Impact of COVID-19 (FY2020 forecast)

  • In North America, although it is expected that delivery delays due to temporary production interruptions at local subsidiaries and temporary suspension of acceptance by customers, the impact on business performance will be limited

-0.9

-3.5-4.3

-3.1

-3.8

2.7%

-3.9%

-7.4%

-3.2%

-

-8.8

-11.0%

-7.3%

-13.7

-17.3%

FY2018

FY2019

-19.5%

Actual

Actual

Before-tax ROIC

-26.4%

-7.2%

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11

Motorcycle & Engine

Main Products: Motorcycles, Utility Vehicles, All-Terrain Vehicles(ATVs), Personal Watercraft, General-purpose Gasoline Engines

FY2018(Accumulated)

FY2019(Accumulated)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

U:In Feb.

Net Sales

L: Actual

[Billion Yen]

[345.0]

356.8

337.7

226.2

230.1

144.4

147.2

73.7

68.3

Operating Income

Operating Margin

[Billion Yen]

14.3

4.0%

[3.0]

-3.3-4.6

-2.8

-3.3

-4.5-1.9

-4.4%

-0.0%

-0.5%

-2.2%

-4.1%

-1.9%

-3.2%

FY2019 (vs. FY2018)

  • Net Sales: Decreased due to the impact of COVID-19, the appreciation of the yen against the euro and other currency compared to FY2018, and other factors
  • Operating Income: Decreased due to a decrease in sales and deteriorated due to an increase in manufacturing costs by appreciation of the Thai baht against the yen, recall of ATVs, and other factors

Impact of COVID-19 (FY2020 forecast)

  • Significant sales decline is expected due to the suspension of sales activities and demand drop around the world

Wholesales by Product

[Thousands of units, Billion Yen]

FY2018

FY2019

Unit

Amount

Unit

Amount

Motorcycles for developed contries

165

131.7

162

123.0

Motorcycles for emerging market

385

92.2

337

78.7

Utility Vehicles, ATVs & PWC

70

80.9

70

84.6

General-purpose gasoline engines

52.0

51.4

Total

620

356.8

569

337.7

FY2018

FY2019

Actual

Actual

Before-tax ROIC

8.4%

-2.6%

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12

Summary of Balance Sheet

[Billion Yen]

End of

End of

Change

Mar. 2019

Mar. 2020

Cash on hand and in banks

74.3

106.1

+

31.7

Change in CAPEX and others [Billion Yen]

Trade receivables

427.6

473.2

+

45.5

Inventories

592.8

631.6

+

38.8

Total fixed assets

502.4

503.9

+

1.4

Others assets

241.5

242.9

+

1.3

Total assets

1,838.8

1,957.8

+

118.9

Trade payables

370.2

371.6

+

1.4

Interest-bearing debt

439.4

567.4

+

128.0

Advances from customers

181.4

148.6

32.8

495.9

Fixed Asset_______

82.1

CAPEX___________

Depriciation_______

56.1

502.4503.9

66.970.4

59.061.2

Other liabilities

355.4

398.5

+

43.0

Total liabilities

1,346.5

1,486.2

+

139.6

Total shareholders' equity

483.5

485.5

+

2.0

Other net assets

8.7

▲ 13.9

22.7

Total net assets

492.2

471.5

20.6

Total liabilities & net assets

1,838.8

1,957.8

+

118.9

Ratio of shareholders' equity to total assets

25.9%

23.2%

Net D/E Ratio

76.6%

101.2%

  • Assets increased due to an increase in working capital in Aerospace Systems segment and other factors
  • Liabilities increased as a whole due to an increase in interest- bearing debt by an increase in working capital
  • Net assets decreased due to a decrease in payment of dividend and accumulated adjustment for retirement benefits, and other factors

FY2017

FY2018

FY2019

Change in interest-bearing debt [Billion Yen]

Long-term debt

Short-term debt

800

600

400

200

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2017

FY2018

FY2019

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13

Summary of Cash Flows

[Billion Yen]

Change in CF from operating activities & others

FY2018

FY2019

Change

[Billion Yen]

436.4486.6598.8

Cash flows from

109.7

-15.4

- 125.2

operating activities

Cash flows from

-85.3

-69.4

+ 15.9

investing activities

Free Cash Flows

24.4

-84.8

- 109.2

Cash flows from

-19.7

115.8

+ 135.5

financing activities

  • Cash flows from operating activities deteriorated due to an increase in working capital in Aerospace Systems segment
  • Cash flows from investing activities improved due to a decrease in CAPEX in Aerospace Systems segment
  • Given the above mentioned changes, free cash flows deteriorated

Working capital___ __ ___ _

CF from operating activities_

109.7

Income before

32.9

56.0

37.8

39.3

income taxes &

minority interests

_

-15.4

FY2017 FY2018 FY2019

Change in FCF &

Net Income attributable to Owners of Parent [Billion Yen]

Net Income Attributable to

Owners of Parent______

28.9

24.4 27.4

18.6

FCF

FY2017

FY2018

FY2019

-24.5

-84.8

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14

R&D/CAPEX/Number of Employees

[Billion Yen/Persons]

FY2018

FY2019

Change

Actual

In February

Actual

vs in February

R&D Expenses

48.7

56.0

52.6

3.4

CAPEX

66.9

77.0

70.4

6.6

(Construction Base)

Depreciation and

59.0

61.5

61.2

0.3

Amortization

Domestic

26,171

26,800

26,616

184

Overseas

9,520

9,800

9,716

84

Number of Employees

35,691

36,600

36,332

268

※Capex represents the total of newly recorded property, plant and equipment and newly recorded intangible assets.

Depreciation & amortization represents depreciation/amortization expenses for property, plant and equipment and intangible assets.

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15

Historical Data

1,000.0

800.0

600.0

400.0

200.0

0.0

Share holders' equity(left axis)

Interest bearing debt(left axis)

Before-tax ROIC(right axis)

398.4

446.6

444.6

414.3

439.4

484.6

400.6

304.2

276.4

389.2

428.9

429.1

407.1

319.8

237.5 290.4 313.1 290.4 277.0 289.0 306.0 338.2 363.0 431.9 431.3 437.2 466.0 476.3

15.0%

12.0%

9.0%

6.0%

3.0%

0.0%

[Billion yen]

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Before-tax ROIC

8.7%

11.2%

4.5%

0.2%

6.0%

7.4%

6.1%

8.1%

10.4%

9.4%

5.0%

3.9%

4.5%

4.2%

Invested Capital

594.6

589.6

679.7

705.9

718.2

713.2

822.8

807.6

846.3

829.7

837.9

912.7

915.8

1,023.0

Net Sales

1,438.6

1,501.0

1,338.5

1,173.4

1,226.9

1,303.7

1,288.8

1,385.4

1,486.1

1,541.0

1,518.8

1,574.2

1,594.7

1,641.3

Operating Profit

69.1

76.9

28.7

-1.3

42.6

57.4

42.0

72.3

87.2

95.9

45.9

55.9

64.0

62.0

Recurring Profit

49.0

63.9

38.7

14.2

49.1

63.6

39.3

60.6

84.2

93.2

36.6

43.2

37.8

40.4

Net Income

29.7

35.1

11.7

-10.8

25.9

23.3

30.8

38.6

51.6

46.0

26.2

28.9

27.4

18.6

Attributable to

Owners of Parent

Yen/US$

117

115

101

93

86

79

82

99

109

118

108

110

110

108

© 2020 KAWASAKI HEAVY INDUSTRIES, LTD. All Rights Reserved

16

Market Overview (1/2)

Aerospace Systems

  • In military aircraft business, there is a certain demand within tight defense budget.
  • In commercial aircraft business, although the demand for aircrafts and aircraft jet engines had been increased along with the increased number of air passengers, both aircraft and aircraft jet engine business demands will be expected to decline due to the impact of COVID-19.

Energy System & Plant Engineering

  • In Japan, the demand for major repair work on municipal waste incineration plants continues.
  • In the medium- and long-term, the demand for distribute power plants in the domestic and overseas market, and for energy infrastructure development in emerging countries is strong.
  • However, there is a possibility of customer short-term capital investment decisions will be reviewed due to factors such as economic activity stagnation and resource price instability caused by COVID-19.

Precision Machinery & Robot

  • In construction machinery markets, domestic customers reduced production due to Typhoon Nov. 19 (Hagibis).
  • In addition, current sales in Korean market and emerging countries such as India and Indonesia are sluggish, however, whole in the demand is stable.
  • Although the impact of COVID-19 is still uncertainty, Chinese market is recovering
  • In China, robots markets is recovering from a tough situation based on the US-China trade friction.
  • In semiconductor markets, demand is recovering due to Taiwanese and Korean major semiconductor manufacturers have restarted investment, despite uncertainty in the future caused by impact of COVID-19.
  • Estimating that the demand for robots will steadily expand in the medium- to long-term.

© 2020 KAWASAKI HEAVY INDUSTRIES, LTD. All Rights Reserved

17

Market Overview (2/2)

Ship & Offshore Structure

  • New-buildvessel price is on the path of moderate recovery and the demand for LNG fueled vessels increases along with strengthening environmental regulations.
  • However, the competition is still intense due to the shipping market downturn in long-term ,continuation of assistance programs by South Korean Government, and other factors.
  • For the impact of COVID-19, although there is no request to extend the delivery date of ordered ship at this stage, there is concern that the contract closing date may be delayed due to delays in business negotiations.

Rolling Stock

  • In the medium- and long-term, replacement demand for aging railcars is stable in Japan.
  • In the US, including the focused market of New York, demand for new and replacement is expected.
  • In Asia, the demand in the emerging market increases along with promoting infrastructure exports by Japanese Government.
  • However, plans of delivery and order received in the domestic and overseas projects are expected to be reviewed caused by the impact of COVID-19

Motorcycle & Engine

  • In motorcycle market, moderate growth continues mainly in Europe however decreased in emerging countries.
  • In utility vehicle and personal watercraft market, stable growth continues mainly in US.
  • In general purpose engine business, market growth temporarily slowed down due to inclement weather and the US- China trade friction .

mid-March 2020>

  • After COVID-19 expand rapidly in main market of Europe and around the world, the market has dropped significantly due to sales agents are closed caused by lockdown.

© 2020 KAWASAKI HEAVY INDUSTRIES, LTD. All Rights Reserved

18

Forecast

For the Impact of COVID-19(FY2020 forecast)

  • Several business are expected to be severely affected by stagnant global economic activity
  • Especially in Aerospace systems segment which affected by the passenger demand drops sharply and Motorcycle & Engine segment which affected by lockdown and sluggish personal consumption
  • There is the possibility to be in the red as the whole

For the Postponement of announcement of Consolidated Financial Forecast for FY2020

  • It is difficult to estimate forecast for each business at this stage
  • In the future, we will carefully assess the impact on business results and will promptly announce it when it becomes possible to disclose rational forecasts

For FY2020 Dividend

  • Considering this business situation, the dividend forecast for FY2020 is yet to be determined (the year-end dividend for FY2019 is planned to be no dividend)

For the Medium-Term Business Plan (FY2019-2021)

  • Withdrawing the FY2021 management target in consideration of the current business and market environment

© 2020 KAWASAKI HEAVY INDUSTRIES, LTD. All Rights Reserved

19

Figures recorded in the business forecasts are forecasts that reflect the judgment of the Company based on the information available at the time of release and include risks and uncertainties. Accordingly, the Company cautions investors not to make investment decisions solely on the basis of these forecasts.

Actual business results may differ materially from these business forecasts due to various important factors resulting from changes in the external environment and internal environment. Important factors that may affect actual business results include, but are not limited to, economic conditions, the yen exchange rate against the U.S. dollar and other currencies, the tax system, and laws and regulations.

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Kawasaki Heavy Industries Ltd. published this content on 12 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2020 03:44:06 UTC