Kawasaki Heavy Industries : Flash Report for Fiscal Year Ended March 31, 2020 (Consolidated Basis) （PDF：301KB）

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES

FLASH CONSOLIDATED FINANCIAL RESULTS	May 12, 2020
For the year ended March 31, 2020 and 2019	(Consolidated)

Operating results

		Millions of yen	Thousands of U.S. dollars
		Year ended			Year ended		Year ended
Net sales		Mar. 31, 2020			Mar. 31, 2019		Mar. 31, 2020
	1,641,335		1,594,743		$ 15,081,641
Operating profit		62,063			64,023	570,275
Profit attributable to owners of parent		18,662			27,453	171,478
Earnings per share (Yen)		111.72			164.34

Financial position

		Millions of yen / Thousand shares	Thousands of U.S. dollars
		As of			As of		As of
Total assets		Mar. 31, 2020			March. 31, 2019		Mar. 31, 2020
	1,957,845		1,838,855		$ 17,989,938
Net assets		471,562			492,261	4,333,015
Number of shares issued and outstanding		167,043			167,045
Equity Ratio		23.2%			25.9%

Cash flows

		Millions of yen	Thousands of U.S. dollars
		Year ended			Year ended			Year ended
Operating activities		Mar. 31, 2020			Mar. 31, 2019			Mar. 31, 2020
	(15,461)		109,762		$	(142,066)
Investing activities		(69,401)			(85,344)			(637,701)
Financing activities		115,803			(19,771)			1,064,072
Cash and cash equivalents at end of period		102,546			68,311			942,259

Fiscal year forecast

As the novel coronavirus (COVID-19) is spreading, the Company has determined that it is difficult to provide an appropriate and reasonable earnings forecast at this time. Accordingly, the earnings forecast for the year ending March 31, 2021

is yet to be determined, and will be announced as soon as the impact on performance can be reasonably forecast.

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(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 ￥108.83=$1, the rate prevailing as of March 31, 2020, solely for the convenience of the readers.

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								(Consolidated)
Consolidated Balance Sheets
As of March 31, 2020 and 2019
		Millions of yen			Thousands of
				U.S. dollars
		As of			As of			As of
Assets		Mar. 31, 2020			Mar. 31, 2019			Mar. 31, 2020
Current assets		106,108
Cash and deposits			74,311	$	974,989
Notes and accounts receivable - trade		473,204			427,665			4,348,103
Merchandise and finished goods		75,042			68,176			689,534
Work in process		426,256			405,087			3,916,714
Raw materials and supplies		130,359			119,558			1,197,822
Other		51,176			45,333			470,238
Allowance for doubtful accounts		(3,367)			(3,792)			(30,938)
Total current assets		1,258,781			1,136,340			11,566,489
Non-current assets
Property, plant and equipment		193,931
Buildings and structures, net				194,939			1,781,963
Machinery, equipment and vehicles, net		151,196			148,620			1,389,286
Land		62,183			62,705			571,377
Leased assets, net		2,694			2,148			24,754
Construction in progress		15,959			18,227			146,642
Other, net		56,604			59,028			520,114
Total property, plant and equipment		482,570			485,669			4,434,163
Intangible assets		21,358			16,797			196,251
Investments and other assets		12,035
Investment securities				14,501			110,585
Retirement benefit asset		135			93			1,240
Deferred tax assets		70,598			70,179			648,700
Other		114,203			116,696			1,049,371
Allowance for doubtful accounts		(1,838)			(1,422)			(16,889)
Total investments and other assets		195,134			200,048			1,793,017
Total non-current assets		699,063			702,514			6,423,440
Total assets		1,957,845			1,838,855			17,989,938
Liabilities
Current liabilities		261,159
Notes and accounts payable - trade				247,191			2,399,697
Electronically recorded obligations - operating		110,526			123,083			1,015,584
Short-term borrowings		166,188			100,023			1,527,042
Current portion of bonds payable		20,000			10,000			183,773
Lease obligations		1,542			319			14,169
Income taxes payable		6,116			10,390			56,198
Provision for sales promotion expenses		12,174			4,991			111,863
Provision for bonuses		22,032			21,168			202,444
Provision for construction warranties		14,454			13,096			132,813
Provision for loss on construction contracts		11,464			27,609			105,339
Advances received		148,610			181,419			1,365,524
Other		173,456			124,986			1,593,825
Total current liabilities		947,726			864,280			8,708,316
Non-current liabilities		160,000
Bonds payable				140,000			1,470,183
Long-term borrowings		188,859			187,568			1,735,358
Lease obligations		873			1,513			8,022
Deferred tax liabilities		796			593			7,314
Retirement benefit liability		129,846			97,602			1,193,109
Provision for the in service issues of commercial		15,689			11,468			144,161
aircraft jet engines
	42,491
Other				43,566			390,435
Total non-current liabilities		538,556			482,313			4,948,599
Total liabilities		1,486,283			1,346,593			13,656,924
Net assets
Shareholders' equity		104,484
Share capital				104,484			960,066
Capital surplus		54,542			54,542			501,167
Retained earnings		326,626			324,606			3,001,250
Treasury shares		(133)			(130)			(1,222)
Total shareholders' equity		485,520			483,502			4,461,270
Accumulated other comprehensive income		1,636
Valuation difference on available-for-sale securities				2,682			15,033
Deferred gains or losses on hedges		(272)			(227)			(2,499)
Foreign currency translation adjustment		(11,311)			(4,556)			(103,933)
Remeasurements of defined benefit plans		(19,946)			(5,014)			(183,277)
Total accumulated other comprehensive income		(29,892)			(7,115)			(274,667)
Non-controlling interests		15,934			15,874			146,412
Total net assets		471,562			492,261			4,333,015
Total liabilities and net assets		1,957,845			1,838,855			17,989,938

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(Consolidated)

Consolidated Statements of Profit and Loss

For the year ended March 31, 2020 and 2019

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

Share of profit of entities accounted for using equity method Penalty income

Insurance claim income Other

Total non-operating income Non-operating expenses

Interest expenses Foreign exchange losses

Payments for the in service issues of commercial aircraft jet engines

Other

Total non-operating expenses Ordinary profit Extraordinary income

	Millions of yen			Thousands of
			U.S. dollars
	Year ended	Year ended			Year ended
	Mar. 31, 2020	Mar. 31, 2019			Mar. 31, 2020
	1,641,335			1,594,743		$	15,081,641
	1,370,809			1,326,668			12,595,874
	270,526			268,075			2,485,767
	56,651			54,952			520,546
	52,608			48,734			483,396
	99,203			100,364			911,541
	208,463			204,052			1,915,492
	62,063			64,023			570,275
	695			909			6,386
	288			294			2,646
	1,255			1,574			11,532
	2,784			13			25,581
	1,191			388			10,944
	3,469			3,516			31,875
	9,686			6,696			89,001
	3,615			3,427			33,217
	8,479			4,721			77,911
	11,500			14,851			105,669
	7,725			9,857			70,982
	31,319			32,858			287,779
	40,429			37,861			371,488

Gain on sales of non-current assets	1,277		－		11,734
Total extraordinary income	1,277		－	11,734
Extraordinary losses
Loss on withdrawal from business	2,383		－		21,897
Total extraordinary losses	2,383		－		21,897
Profit before income taxes	39,323		37,861		361,325
Income taxes - current	10,546	16,704	96,903
Income taxes - deferred	8,500		(8,681)		78,103
Total income taxes	19,046		8,022		175,007
Profit	20,276		29,838		186,309
Profit attributable to non-controlling interests	1,614		2,385		14,830
Profit attributable to owners of parent	18,662		27,453		171,478

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(Consolidated)

Consolidated Statements of Cash Flows

For the year ended March 31, 2020 and 2019
			Millions of yen			Thousands of
					U.S. dollars
		Year ended			Year ended			Year ended
Cash flows from operating activities		Mar. 31, 2020			Mar. 31, 2019			Mar. 31, 2020
Profit before income taxes		39,323		37,861	$	361,325
Depreciation		61,283			59,022			563,108
Increase (decrease) in allowance for doubtful accounts		238			(667)			2,187
Increase (decrease) in provision for sales promotion expenses		707			14			6,496
Increase (decrease) in provision for bonuses		889			1,245			8,169
Increase (decrease) in provision for construction warranties		1,412			100			12,974
Increase (decrease) in provision for loss on construction contracts		(16,133)			9,336			(148,240)
Increase (decrease) in retirement benefit liability		10,574			11,982			97,161
Increase (decrease) in provision for the in-service issues of		4,221			11,468			38,785
commercial aircraft jet engines
Interest and dividend income		(983)			(1,203)			(9,032)
Interest expenses		3,615			3,427			33,217
Share of loss (profit) of entities accounted for using equity method		(1,255)			(1,574)			(11,532)
Loss (gain) on sales of non-current assets		(1,277)			－			(11,734)
Loss on withdrawal from business		2,383			－			21,897
Decrease (increase) in trade receivables		(46,753)			58,985			(429,597)
Decrease (increase) in inventories		(48,068)			(65,383)			(441,680)
Increase (decrease) in trade payables		2,401			6,829			22,062
Decrease (increase) in advance payments - trade		3,326			1,202			30,561
Increase (decrease) in advances received		(31,827)			(14,013)			(292,447)
Decrease (increase) in other current assets		(8,986)			(1,557)			(82,569)
Increase (decrease) in other current liabilities		18,303			2,284			168,180
Other, net		6,004			1,192			55,169
Subtotal		(600)			120,553			(5,513)
Interest and dividends received		2,500			3,859			22,972
Interest paid		(3,630)			(3,439)			(33,355)
Income taxes paid		(13,731)			(11,211)			(126,169)
Net cash provided by (used in) operating activities		(15,461)			109,762			(142,066)
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets		(71,947)			(82,836)			(661,095)
Proceeds from sales of property, plant and equipment and intangible assets	6,087			605			55,931
Purchase of investment securities		(935)			(1,025)			(8,591)
Proceeds from sales of investment securities		1,232			989			11,320
Purchase of shares of subsidiaries and associates		(5,400)			(3,818)			(49,619)
Other, net		1,562			741			14,353
Net cash provided by (used in) investing activities		(69,401)			(85,344)			(637,701)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings		103,758			(10,866)			953,395
Proceeds from long-term borrowings		24,348			34,772			223,725
Repayments of long-term borrowings		(28,938)			(30,709)			(265,901)
Proceeds from issuance of bonds		40,000			20,000			367,546
Redemption of bonds		(10,000)			(20,000)			(91,886)
Dividends paid		(11,710)			(10,868)			(107,599)
Dividends paid to non-controlling interests		(989)			(1,950)			(9,088)
Other, net		(664)			(149)			(6,101)
Net cash provided by (used in) financing activities		115,803			(19,771)			1,064,072
Effect of exchange rate change on cash and cash equivalents		3,293			(696)			30,258
Net increase (decrease) in cash and cash equivalents		34,234			3,949			314,564
Cash and cash equivalents at beginning of period		68,311			64,362			627,685
Cash and cash equivalents at end of period		102,546			68,311			942,259

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Segment information

Information by reportable segment

For the year ended March 31, 2019
											Millions of yen
											Year ended Mar. 31, 2019
					Intersegment						Operating						Depreciation			Investment for			Capital
	External sales					Total sales					Total assets				affiliates applied for
			sales					income(loss)				and amortization				expenditures
															equity methods
Aerospace Systems		463,958		12,089		476,048		32,611		649,260		21,299		-		24,022
Energy System & Plant Engineering		253,041			19,899			272,940			11,634			301,798			3,412			18,552			2,237
Precision Machinery & Robot		222,095			17,151			239,247			21,352			205,199			8,220			634			11,636
Ship & Offshore Structure		78,974			4,549			83,523			1,090			121,918			1,559			45,955			2,360
Rolling Stock		124,689			27			124,716			(13,797)			211,102			2,615			133			3,358
Motorcycle & Engine		356,847			718			357,566			14,366			283,770			15,317			1,549			18,505
Other		95,136			41,136			136,273			2,501			93,601			1,527			3,509			861
Total		1,594,743			95,572			1,690,316			69,760			1,866,652			53,953			70,334			62,982
Eliminations and corporate		-			(95,572)			(95,572)			(5,737)			(27,797)			5,069			-			3,918
Consolidated total		1,594,743			-			1,594,743			64,023			1,838,855			59,022			70,334			66,900
											Thousands of U.S. dollars
											Year ended Mar. 31, 2019
					Intersegment						Operating						Depreciation			Investment for			Capital
	External sales					Total sales					Total assets			and		affiliates applied for
			sales					income(loss)								expenditures
															amortization			equity methods
Aerospace Systems	$	4,179,425	$	108,900	$	4,288,334	$	293,766	$	5,848,662	$	191,866	$	-	$	216,395
Energy System & Plant Engineering		2,279,443			179,254			2,458,697			104,801			2,718,656			30,736			167,120			20,151
Precision Machinery & Robot		2,000,676			154,500			2,155,184			192,343			1,848,473			74,047			5,711			104,819
Ship & Offshore Structure		711,413			40,978			752,392			9,819			1,098,261			14,044			413,972			21,259
Rolling Stock		1,123,223			243			1,123,466			(124,286)			1,901,649			23,556			1,198			30,250
Motorcycle & Engine		3,214,548			6,468			3,221,025			129,412			2,556,256			137,979			13,954			166,697
Other		857,004			370,561			1,227,574			22,530			843,176			13,756			31,610			7,756
Total		14,365,760			860,931			15,226,700			628,412			16,815,170			486,019			633,583			567,354
Eliminations and corporate		-			(860,931)			(860,931)			(51,680)			(250,401)			45,663			-			35,294
Consolidated total	$	14,365,760		$	-		$	14,365,760		$	576,732		$	16,564,769		$	531,682		$	633,583		$	602,648

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Segment information

Information by reportable segment

For the year ended March 31, 2020
											Millions of yen
											Year ended Mar. 31, 2020
					Intersegment						Operating						Depreciation			Investment for			Capital
	External sales					Total sales					Total assets				affiliates applied for
			sales					income(loss)				and amortization				expenditures
															equity methods
Aerospace Systems		532,549		6,477		539,027		42,777		745,048		22,539		-		25,121
Energy System & Plant Engineering		242,972			30,871			273,843			17,566			314,753			3,362			18,621			3,048
Precision Machinery & Robot		217,387			15,529			232,917			12,211			203,525			9,279			1,737			12,845
Ship & Offshore Structure		71,680			9,049			80,730			(637)			125,642			1,625			44,930			1,355
Rolling Stock		136,553			18			136,571			(3,819)			211,759			2,533			135			2,740
Motorcycle & Engine		337,757			772			338,529			(1,948)			282,185			15,963			1,601			21,353
Other		102,435			38,927			141,362			1,235			94,174			1,562			3,682			745
Total		1,641,335			101,647			1,742,983			67,386			1,977,089			56,866			70,708			67,210
Eliminations and corporate		-			(101,647)			(101,647)			(5,322)			(19,243)			4,417			-			3,284
Consolidated total		1,641,335			-			1,641,335			62,063			1,957,845			61,283			70,708			70,495
											Thousands of U.S. dollars
											Year ended Mar. 31, 2020
		External sales			Intersegment			Total sales			Operating			Total assets			Depreciation			Investment for			Capital
												and		affiliates applied for
				sales					income(loss)								expenditures
															amortization			equity methods
Aerospace Systems	$	4,893,403	$	59,515	$	4,952,927	$	393,063	$	6,845,980	$	207,103	$	-	$	230,828
Energy System & Plant Engineering		2,232,583			283,663			2,516,246			161,408			2,892,153			30,892			171,102			28,007
Precision Machinery & Robot		1,997,492			142,690			2,140,191			112,203			1,870,119			85,261			15,961			118,028
Ship & Offshore Structure		658,642			83,148			741,799			(5,853)			1,154,479			14,932			412,846			12,451
Rolling Stock		1,254,737			165			1,254,902			(35,091)			1,945,778			23,275			1,240			25,177
Motorcycle & Engine		3,103,528			7,094			3,110,622			(17,899)			2,592,897			146,678			14,711			196,205
Other		941,239			357,686			1,298,925			11,348			865,331			14,353			33,833			6,846
Total		15,081,641			933,998			16,015,648			619,186			18,166,765			522,521			649,711			617,569
Eliminations and corporate		-			(933,998)			(933,998)			(48,902)			(176,817)			40,586			-			30,176
Consolidated total	$	15,081,641		$	-		$	15,081,641		$	570,275		$	17,989,938		$	563,108		$	649,711		$	647,753

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(Consolidated)

Orders by reportable segment

For the year ended March 31, 2020 and 2019

		Billions of yen			Millions of
				U.S. dollars
		Year ended			Year ended			Year ended
Orders :		Mar. 31, 2020			Mar. 31, 2019			Mar. 31, 2020
	414.9
Aerospace Systems			431.6	$	3,812
Energy System & Plant Engineering		252.3			263.5			2,318
Precision Machinery & Robot		218.8			225.2			2,010
Ship & Offshore Structure		56.2			81.1			516
Rolling Stock		125.7			136.0			1,155
Motorcycle & Engine		337.7			356.8			3,103
Other		107.5			94.2			988
Total		1,513.5			1,588.7		$	13,907

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