Kawasaki Heavy Industries : Flash Report for Fiscal Year Ended March 31, 2019(Consolidated Basis) (PDF：173KB）

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES

FLASH CONSOLIDATED FINANCIAL RESULTS	April 25, 2019
For the year ended March 31, 2019 and 2018	(Consolidated)

Operating results

		Millions of yen				Thousands of U.S. dollars
		Year ended			Year ended		Year ended
Net sales		Mar. 31, 2019			Mar. 31, 2018		Mar. 31, 2019
		1,594,743			1,574,242		$ 14,365,760
Operating profit		64,023			55,925	576,732
Profit attributable to owners of parent		27,453			28,915	247,302
Earnings per share (Yen)		164.34			173.09

Financial position

		Millions of yen / Thousand shares				Thousands of U.S. dollars
		As of			As of		As of
Total assets		Mar. 31, 2019			Mar. 31, 2018		Mar. 31, 2019
		1,838,855			1,785,028		$ 16,564,769
Net assets		492,261			481,386	4,434,384
Number of shares issued and outstanding		167,045			167,047
Equity Ratio		25.9%			26.1%

Cash flows

		Millions of yen				Thousands of U.S. dollars
		Year ended			Year ended			Year ended
		Mar. 31, 2019			Mar. 31, 2018			Mar. 31, 2019
Operating activities		109,762			56,050		$	988,758
Investing activities		(85,344)			(80,590)			(768,796)
Financing activities		(19,771)			37,770			(178,101)
Cash and cash equivalents at end of period		68,311			64,362			615,359

Fiscal year forecast					Millions of yen
		Net sales			Operating profit			Profit attributable to
								owners of parent
One year ending March 31, 2020		1,700,000			72,000			38,000

- 1 -

(Consolidated)

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 ￥111.01=$1, the rate prevailing as of March 29, 2019, 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 the year ended March 31, 2019 and 2018 based on the new reportable segments: Aerospace Systems, Energy System & Plant Engineering, Precision Machinery & Robot, Ship & Offshore Structure, Rolling Stock, Motorcycle & Engine, and Other.

- 2 -

								(Consolidated)
Consolidated Balance Sheets
As of March 31, 2019 and 2018
		Millions of yen						Thousands of
								U.S. dollars
		As of			As of			As of
Assets		Mar. 31, 2019			Mar. 31, 2018			Mar. 31, 2019
Current assets		74,311				$		669,408
Cash and deposits					70,632
Notes and accounts receivable - trade		427,665			470,110			3,852,491
Merchandise and finished goods		68,176			62,385			614,143
Work in process		405,087			326,459			3,649,104
Raw materials and supplies		119,558			115,893			1,077,002
Other		45,333			72,542			408,369
Allowance for doubtful accounts		(3,792)			(2,247)			(34,159)
Total current assets		1,136,340			1,115,776			10,236,375
Non-current assets
Property, plant and equipment		194,939						1,756,049
Buildings and structures, net					186,623
Machinery, equipment and vehicles, net		148,620			144,399			1,338,798
Land		62,705			62,694			564,859
Leased assets, net		2,148			2,199			19,350
Construction in progress		18,227			25,724			164,192
Other, net		59,028			58,155			531,736
Total property, plant and equipment		485,669			479,797			4,375,002
Intangible assets		16,797			16,178			151,311
Investments and other assets		14,501						130,628
Investment securities					14,798
Retirement benefit asset		93			88			838
Deferred tax assets		70,179			69,632			632,186
Other		116,696			92,441			1,051,221
Allowance for doubtful accounts		(1,422)			(3,685)			(12,810)
Total investments and other assets		200,048			173,276			1,802,072
Total non-current assets		702,514			669,252			6,328,385
Total assets		1,838,855			1,785,028			16,564,769
Liabilities
Current liabilities		247,191						2,226,745
Notes and accounts payable - trade					245,398
Electronically recorded obligations - operating		123,083			117,772			1,108,756
Short-term loans payable		100,023			108,978			901,027
Current portion of bonds		10,000			20,000			90,082
Lease obligations		319			283			2,874
Income taxes payable		10,390			6,042			93,595
Provision for bonuses		21,168			19,903			190,686
Provision for construction warranties		13,096			13,000			117,971
Provision for loss on construction contracts		27,609			18,258			248,707
Advances received		181,419			194,306			1,634,258
Other		129,978			125,454			1,170,867
Total current liabilities		864,280			869,398			7,785,605
Non-current liabilities		140,000						1,261,148
Bonds payable					130,000
Long-term loans payable		187,568			185,685			1,689,650
Lease obligations		1,513			1,697
Deferred tax liabilities		593			9,187			879,218
Retirement benefit liability		97,602			86,836
Provision for the in-service issues of		11,468			－			103,306
commercial aircraft jet engines
		43,566						392,451
Other					20,837
Total non-current liabilities		482,313			434,244			4,344,771
Total liabilities		1,346,593			1,303,642			12,130,376
Net assets
Shareholders' equity		104,484						941,213
Capital stock					104,484
Capital surplus		54,542			54,573			491,325
Retained earnings		324,606			308,010			2,924,115
Treasury shares		(130)			(124)			(1,171)
Total shareholders' equity		483,502			466,944			4,355,481
Accumulated other comprehensive income		2,682						24,160
Valuation difference on available-for-sale securities					3,526
Deferred gains or losses on hedges		(227)			403			(2,045)
Foreign currency translation adjustment		(4,556)			719			(41,041)
Remeasurements of defined benefit plans		(5,014)			(5,532)			(45,167)
Total accumulated other comprehensive income		(7,115)			(883)			(64,093)
Non-controlling interests		15,874			15,324			142,996
Total net assets		492,261			481,386			4,434,384
Total liabilities and net assets		1,838,855			1,785,028			16,564,769

- 3 -

Consolidated Statements of Profit and Loss

For the year ended March 31, 2019 and 2018

Net sales Cost of sales Gross profit

Selling, general and administrative expenses Salaries and allowances

Research and development expenses Other

Total selling, general and administrative expenses Operating profit

Non-operating income Interest income Dividend income

Gain on sales of securities

Share of profit of entities accounted for using equity method Other

Total non-operating income Non-operating expenses

Interest expenses Foreign exchange losses

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

Payments for contract adjustments for commercial aircraft jet engines

Other

Total non-operating expenses Ordinary profit Extraordinary income

Gain on sales of non-current assets Total extraordinary income

Extraordinary losses

Loss from termination of a shipbuilding

contract for an offshore service vessel Total extraordinary losses

Profit before income taxes Income taxes - current Income taxes - deferred Total income taxes Profit

Profit attributable to non-controlling interests Profit attributable to owners of parent

(Consolidated)

	Millions of yen						Thousands of
							U.S. dollars
	Year ended			Year ended			Year ended
	Mar. 31, 2019			Mar. 31, 2018			Mar. 31, 2019
	1,594,743			1,574,242		$	14,365,760
	1,326,668			1,319,715			11,950,887
	268,075			254,527			2,414,873
	54,952			52,502			495,018
	48,734			45,434			439,005
	100,364			100,665			904,099
	204,052			198,602			1,838,141
	64,023			55,925			576,732
	909			720			8,188
	294			291			2,648
	862			46			7,765
	1,574			4,492			14,179
	3,056			3,580			27,529
	6,696			9,131			60,319
	3,427			2,794			30,871
	4,721			7,017			42,528
	14,851			－			133,781
	－			2,505			－
	9,857			9,513			88,794
	32,858			21,830			295,991
	37,861			43,225			341,059
	－			2,606			－
	－			2,606			－
	－			12,833			－
	－			12,833			－
	37,861			32,999			341,059
	16,704			11,634			150,473
	(8,681)			(9,982)			(78,200)
	8,022			1,652			72,264
	29,838			31,347			268,787
	2,385			2,431			21,485
	27,453			28,915			247,302

- 4 -

Consolidated Statements of Cash Flows

For the year ended March 31, 2019 and 2018

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 retirement benefit liability

Increase (decrease) in provision for the in-service issues of commercial aircraft jet engines

(Consolidated)

		Millions of yen					Thousands of
							U.S. dollars
	Year ended			Year ended			Year ended
	Mar. 31, 2019			Mar. 31, 2018			Mar. 31, 2019
	37,861			32,999	$		341,059
	59,022			56,137			531,682
	(667)			1,093			(6,008)
	1,245			(387)			11,215
	100			814			901
	9,336			11,029			84,101
	11,982			13,324			107,936
	11,468			－			103,306

Interest and dividend income		(1,203)	(1,011)		(10,837)
Interest expenses		3,427	2,794		30,871
Share of loss (profit) of entities accounted for using equity method		(1,574)	(4,492)		(14,179)
Loss (gain) on sales of non-current assets		－	(2,606)			－
Loss from cancellation of a shipbuilding contract for an offshore service vesse		－	12,833			－
Decrease (increase) in notes and accounts receivable - trade		58,985	(35,516)		531,349
Decrease (increase) in inventories		(65,383)	(26,443)		(588,983)
Increase (decrease) in notes and accounts payable - trade		6,829	21,569		61,517
Decrease (increase) in advance payments		1,202	6,103		10,828
Increase (decrease) in advances received		(14,013)	(10,092)		(126,232)
Decrease (increase) in other current assets		(1,557)	(22,937)		(14,026)
Increase (decrease) in other current liabilities		2,299	8,644		20,710
Other, net		1,192	(789)		10,738
Subtotal		120,553		63,066		1,085,965
Interest and dividend income received		3,859		4,166		34,763
Interest expenses paid		(3,439)	(2,795)		(30,979)
Income taxes paid		(11,211)	(8,386)		(100,991)
Net cash provided by (used in) operating activities		109,762		56,050		988,758
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets		(82,836)	(82,238)		(746,203)
Proceeds from sales of property, plant and equipment and intangible assets		605	6,452		5,450
Purchase of investment securities		(1,025)	(512)		(9,233)
Proceeds from sales of investment securities		989	342		8,909
Purchase of shares of subsidiaries and associates		(3,818)	(3,408)		(34,393)
Other, net		741	(1,226)		6,675
Net cash provided by (used in) investing activities		(85,344)		(80,590)		(768,796)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable		(10,866)	16,363		(97,883)
Proceeds from long-term loans payable		34,772	64,363		313,233
Repayments of long-term loans payable		(30,709)	(42,694)		(276,633)
Proceeds from issuance of bonds		20,000	20,000		180,164
Redemption of bonds		(20,000)	(10,000)		(180,164)
Cash dividends paid		(10,868)	(8,375)		(97,901)
Dividends paid to non-controlling interests		(1,950)	(1,433)		(17,566)
Other, net		(149)	(454)		(1,342)
Net cash provided by (used in) financing activities		(19,771)		37,770		(178,101)
Effect of exchange rate change on cash and cash equivalents		(696)		410		(6,270)
Net increase (decrease) in cash and cash equivalents		3,949		13,640		35,573
Cash and cash equivalents at beginning of period		64,362		50,722		579,786
Cash and cash equivalents at end of period		68,311		64,362		615,359

- 5 -