Kawasaki Heavy Industries : Flash Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (Consolidated Basis) （PD...

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES

FLASH CONSOLIDATED FINANCIAL RESULTS	February 6, 2020
For nine months ended December 31, 2019 and 2018 and one year ended March 31, 2019	(Consolidated)

Operating results

		Millions of yen	Thousands of U.S. dollars
	Nine months ended		Nine months ended		Nine months ended
Net sales		Dec. 31, 2019			Dec. 31, 2018		Dec. 31, 2019
	1,135,444		1,094,583		$ 10,364,619
Operating profit		30,983			36,849	282,821
Profit attributable to owners of parent		4,762			11,385	43,469
Earnings per share (Yen)		28.50			68.15

Financial position

		Millions of yen / Thousand shares	Thousands of U.S. dollars
		As of			As of		As of
Total assets		Dec. 31, 2019			Mar. 31, 2019		Dec. 31, 2019
	2,053,540		1,838,855		$ 18,745,230
Net assets		475,013			492,261	4,336,038
Number of shares issued and outstanding		167,044			167,045
Equity Ratio		22.3%			25.9%

Cash flows

		Millions of yen	Thousands of U.S. dollars
	Nine months ended		Nine months ended		Nine months ended
Operating activities		Dec. 31, 2019			Dec. 31, 2018		Dec. 31, 2019
	(288,421)		(207,489)		$ (2,632,780)
Investing activities		(46,216)			(67,409)	(421,871)
Financing activities		335,815			254,463	3,065,404
Cash and cash equivalents at end of period		70,914			43,259	647,321

Fiscal year forecast					Millions of yen
		Net sales			Operating profit			Profit attributable to
						owners of parent
One year ending March 31, 2020		1,660,000		60,000		25,000

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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 ￥109.55=$1, the rate prevailing as of December 30, 2019, solely for the convenience of the readers.

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								(Consolidated)
Consolidated Balance Sheets
As of December 31 and March 31, 2019
		Millions of yen			Thousands of
				U.S. dollars
		As of			As of			As of
Assets		Dec. 31, 2019			Mar. 31, 2019			Dec. 31, 2019
Current assets		74,408
Cash and deposits			74,311	$	679,215
Notes and accounts receivable - trade		548,257			427,665			5,004,628
Merchandise and finished goods		89,052			68,176			812,889
Work in process		449,740			405,087			4,105,340
Raw materials and supplies		128,011			119,558			1,168,517
Other		66,322			45,333			605,404
Allowance for doubtful accounts		(4,094)			(3,792)			(37,371)
Total current assets		1,351,697			1,136,340			12,338,631
Non-current assets
Property, plant and equipment		195,891
Buildings and structures, net				194,939			1,788,142
Other		288,883			290,729			2,636,997
Total property, plant and equipment		484,774			485,669			4,425,139
Intangible assets		18,977			16,797			173,227
Investments and other assets		199,402
Other				201,471			1,820,192
Allowance for doubtful accounts		(1,311)			(1,422)			(11,967)
Total investments and other assets		198,091			200,048			1,808,225
Total non-current assets		701,843			702,514			6,406,600
Total assets		2,053,540			1,838,855			18,745,230
Liabilities
Current liabilities		227,269
Notes and accounts payable - trade				247,191			2,074,569
Electronically recorded obligations - operating		111,157			123,083			1,014,669
Short-term borrowings		283,420			100,023			2,587,129
Income taxes payable		4,755			10,390			43,405
Provision for sales promotion expenses		6,317			497			57,663
Provision for bonuses		10,595			21,168			96,714
Provision for construction warranties		12,428			13,096			113,446
Provision for loss on construction contracts		14,214			27,609			129,749
Advances received		145,900			181,419			1,331,812
Other		272,256			139,800			2,485,221
Total current liabilities		1,088,316			864,280			9,934,423
Non-current liabilities		140,000
Bonds payable				140,000			1,277,955
Long-term loans payable		191,940			187,568			1,752,077
Net defined benefit liability		101,980			97,602			930,899
Provision for the in-service issues of		13,993			11,468			127,732
commercial aircraft jet engines
	42,296
Other				45,674			386,089
Total non-current liabilities		490,211			482,313			4,474,770
Total liabilities		1,578,527			1,346,593			14,409,192
Net assets
Shareholders' equity		104,484
Capital stock				104,484			953,756
Capital surplus		54,542			54,542			497,873
Retained earnings		312,726			324,606			2,854,642
Treasury shares		(133)			(130)			(1,214)
Total shareholders' equity		471,620			483,502			4,305,066
Accumulated other comprehensive income		2,673
Valuation difference on available-for-sale securities				2,682			24,400
Deferred gains or losses on hedges		(391)			(227)			(3,569)
Foreign currency translation adjustment		(11,171)			(4,556)			(101,972)
Remeasurements of defined benefit plans		(3,667)			(5,014)			(33,473)
Total accumulated other comprehensive income		(12,556)			(7,115)			(114,614)
Non-controlling interests		15,949			15,874			145,586
Total net assets		475,013			492,261			4,336,038
Total liabilities and net assets		2,053,540			1,838,855			18,745,230

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Consolidated Statements of Profit and Loss

For nine months ended December 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

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

Other

Total non-operating expenses Ordinary profit Extraordinary income

Gain on sales of non-current assets Total extraordinary income

Extraordinary losses

Loss on withdrawal from business Total extraordinary losses

Profit before income taxes Income taxes

Profit

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

(Consolidated)

	Millions of yen			Thousands of
			U.S. dollars
Nine months ended		Nine months ended		Nine months ended
	Dec. 31, 2019			Dec. 31, 2018			Dec. 31, 2019
	1,135,444		1,094,583		$	10,364,619
	954,085			910,113			8,709,128
	181,359			184,469			1,655,491
	41,357			40,325			377,517
	36,371			33,427			332,004
	72,645			73,867			663,122
	150,375			147,620			1,372,661
	30,983			36,849			282,821
	530			648			4,838
	252			263			2,300
	867			1,014			7,914
	2,157			2,585			19,690
	3,807			4,512			34,751
	2,787			2,505			25,440
	4,794			4,620			43,761
	7,640			9,745			69,740
	4,189			4,625			38,238
	19,411			21,496			177,188
	15,379			19,865			140,383
	1,277			－			11,657
	1,277			－			11,657
	2,383			－			21,753
	2,383			－			21,753
	14,273			19,865			130,288
	8,416			6,721			76,823
	5,856			13,144			53,455
	1,094			1,758			9,986
	4,762			11,385			43,469

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(Consolidated)

Segment information

Information by reportable segment

					Millions of yen
					Nine months ended
					Dec. 31, 2018
		External			Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems		328,137		8,536		336,674		21,295
Energy System & Plant Engineering		168,844			14,285			183,129			4,534
Precision Machinery & Robot		154,282			11,777			166,059			14,942
Ship & Offshore Structure		63,066			2,665			65,732			2,803
Rolling Stock		86,088			16			86,105			(6,452)
Motorcycle & Engine		226,298			496			226,795			(33)
Other		67,865			29,035			96,900			2,456
Total		1,094,583			66,813			1,161,397			39,545
Eliminations and corporate		-			(66,813)			(66,813)			(2,696)
Consolidated total		1,094,583			-			1,094,583			36,849
					Millions of yen
					Nine months ended
					Dec. 31, 2019
		External		Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems		371,446		6,913		378,360		20,517
Energy System & Plant Engineering	162,317			23,379			185,697			13,027
Precision Machinery & Robot		147,080			11,422			158,503			5,216
Ship & Offshore Structure		53,016			6,514			59,531			(788)
Rolling Stock		97,477			12			97,489			(3,147)
Motorcycle & Engine		230,171			497			230,668			(4,517)
Other		73,934			27,782			101,716			2,055
Total		1,135,444			76,522			1,211,967			32,364
Eliminations and corporate		-			(76,522)			(76,522)			(1,380)
Consolidated total		1,135,444			-			1,135,444			30,983
					Thousands of U.S. dollars
					Nine months ended
					Dec. 31, 2019
		External			Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems	$	3,390,653	$	63,104	$	3,453,765	$	187,284
Energy System & Plant Engineering		1,481,670			213,409			1,695,089			118,914
Precision Machinery & Robot		1,342,583			104,263			1,446,855			47,613
Ship & Offshore Structure		483,943			59,461			543,414			(7,193)
Rolling Stock		889,795			110			889,904			(28,727)
Motorcycle & Engine		2,101,059			4,537			2,105,596			(41,232)
Other		674,888			253,601			928,489			18,759
Total		10,364,619			698,512			11,063,140			295,427
Eliminations and corporate		-			(698,512)			(698,512)			(12,597)
Consolidated total	$	10,364,619		$	-		$	10,364,619		$	282,821

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(Consolidated)

Orders by reportable segment

For nine months ended December 31, 2019 and 2018

		Billions of yen			Millions of
				U.S. dollars
	Nine months ended			Nine months ended		Nine months ended
Orders :		Dec. 31, 2019			Dec. 31, 2018			Dec. 31, 2019
	245.1
Aerospace Systems			280.5	$	2,237
Energy System & Plant Engineering		184.3			201.6			1,682
Precision Machinery & Robot		157.1			172.0			1,434
Ship & Offshore Structure		31.6			65.2			288
Rolling Stock		91.2			79.6			832
Motorcycle & Engine		230.1			226.2			2,100
Other		82.8			71.1			756
Total		1,022.6			1,096.6		$	9,335

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