Kawasaki Heavy Industries : Flash Report for the First Quarter of the Fiscal Year Ending March 31, 2021(Consolidated Basis) (PDF...

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES

FLASH CONSOLIDATED FINANCIAL RESULTS	August 6, 2020
For three months ended June 30, 2020 and 2019 and one year ended March 31, 2020	(Consolidated)

Operating results

		Millions of yen	Thousands of U.S. dollars
	Three months ended		Three months ended		Three months ended
Net sales		Jun. 30, 2020			Jun. 30, 2019			Jun. 30, 2020
	300,602		350,778		$	2,790,069
Operating profit		(20,661)			1,088			(191,767)
Profit attributable to owners of parent		(11,771)			(8,249)			(109,254)
Earnings per share (Yen)		(70.47)			(49.38)

Financial position

		Millions of yen / Thousand shares	Thousands of U.S. dollars
		As of			As of		As of
Total assets		Jun. 30, 2020			March. 31, 2020		Jun. 30, 2020
	2,013,273		1,957,845		$ 18,686,402
Net assets		457,557			471,562	4,246,863
Number of shares issued and outstanding		167,043			167,043
Equity Ratio		22.0%			23.3%

Cash flows

		Millions of yen	Thousands of U.S. dollars
	Three months ended		Three months ended		Three months ended
Operating activities		Jun. 30, 2020			Jun. 30, 2019			Jun. 30, 2020
	(101,107)		(163,712)		$	(938,435)
Investing activities		2,649			(17,138)			24,587
Financing activities		163,834			150,583			1,520,642
Cash and cash equivalents at end of period		167,929			39,326			1,558,650

Fiscal year forecast

Millions of yen

Net sales		Operating profit

One year ending March 31, 2021

1,460,000

(30,000)

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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 ￥107.74=$1, the rate prevailing as of June 30, 2020, solely for the convenience of the readers.

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								(Consolidated)
Consolidated Balance Sheets
As of June 30 and March 31, 2020
		Millions of yen			Thousands of
				U.S. dollars
		As of			As of			As of
Assets		Mar. 31, 2020			Jun. 30, 2020			Jun. 30, 2020
Current assets					171,686
Cash and deposits		106,108		$	1,593,521
Notes and accounts receivable - trade		473,204			430,165			3,992,621
Merchandise and finished goods		75,042			64,214			596,009
Work in process		426,256			457,700			4,248,190
Raw materials and supplies		130,359			136,462			1,266,586
Other		51,176			61,965			575,135
Allowance for doubtful accounts		(3,367)			(3,321)			(30,824)
Total current assets		1,258,781			1,318,873			12,241,257
Non-current assets
Property, plant and equipment					178,160
Buildings and structures, net		193,931					1,653,611
Other		288,639			293,708			2,726,081
Total property, plant and equipment		482,570			471,869			4,379,701
Intangible assets		21,358			21,989			204,093
Investments and other assets					202,371
Other		196,973					1,878,327
Allowance for doubtful accounts		(1,838)			(1,831)			(16,995)
Total investments and other assets		195,134			200,540			1,861,333
Total non-current assets		699,063			694,399			6,445,136
Total assets		1,957,845			2,013,273			18,686,402
Liabilities
Current liabilities					198,541
Notes and accounts payable - trade		261,159					1,842,779
Electronically recorded obligations - operating		110,526			108,833			1,010,145
Short-term borrowings		166,188			191,664			1,778,949
Income taxes payable		6,116			6,037			56,033
Provision for sales promotion expenses		12,174			7,594			70,484
Provision for bonuses		22,032			24,761			229,822
Provision for construction warranties		14,454			12,384			114,943
Provision for loss on construction contracts		11,464			13,697			127,130
Advances received		148,610			143,381			1,330,806
Other		194,998			229,298			2,128,253
Total current liabilities		947,726			936,195			8,689,391
Non-current liabilities					220,000
Bonds payable		160,000					2,041,953
Long-term borrowings		188,859			198,859			1,845,730
Retirement benefit liability		129,846			131,213			1,217,867
Provision for the in service issues of		15,689			14,057			130,472
commercial aircraft jet engines
				55,390
Other		44,161					514,108
Total non-current liabilities		538,556			619,520			5,750,139
Total liabilities		1,486,283			1,555,716			14,439,540
Net assets
Shareholders' equity					104,484
Share capital		104,484					969,779
Capital surplus		54,542			54,542			506,237
Retained earnings		326,626			314,854			2,922,350
Treasury shares		(133)			(133)			(1,234)
Total shareholders' equity		485,520			473,748			4,397,141
Accumulated other comprehensive income					1,242
Valuation difference on available-for-sale securities		1,636					11,528
Deferred gains or losses on hedges		(272)			(262)			(2,432)
Foreign currency translation adjustment		(11,311)			(13,014)			(120,791)
Remeasurements of defined benefit plans		(19,946)			(19,543)			(181,390)
Total accumulated other comprehensive income		(29,892)			(31,578)			(293,094)
Non-controlling interests		15,934			15,387			142,816
Total net assets		471,562			457,557			4,246,863
Total liabilities and net assets		1,957,845			2,013,273			18,686,402

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(Consolidated)

Consolidated Statements of Profit and Loss

For three months ended June 30, 2020 and 2019

		Millions of yen		Thousands of
			U.S. dollars
	Three months ended	Three months ended		Three months ended
Net sales		Jun. 30, 2019			Jun. 30, 2020			Jun. 30, 2020
	350,778		300,602		$	2,790,069
Cost of sales		301,426			278,357			2,583,599
Gross profit		49,351			22,244			206,460
Selling, general and administrative expenses					13,458
Salaries and allowances		13,344					124,912
Research and development expenses		11,118			8,145			75,599
Other		23,799			21,302			197,717
Total selling, general and administrative expenses		48,262			42,906			398,236
Operating profit (loss)		1,088			(20,661)			(191,767)
Non-operating income					138
Interest income		135					1,281
Dividend income		223			119			1,105
Share of profit of entities accounted for using equity method		338			－		-
Foreign exchange gains		－			2,377			22,062
Other		732			1,492			13,848
Total non-operating income		1,430			4,128			38,314
Non-operating expenses					1,030
Interest expenses		911					9,560
Share of loss of entities accounted for using equity method		－			20			186
Foreign exchange losses		5,039			－		-
Other		959			1,347			12,502
Total non-operating expenses		6,910			2,398			22,257
Ordinary loss		(4,391)			(18,931)			(175,710)
Extraordinary income
Gain on sales of non-current assets		－			3,236			30,035
Gain on sales of shares of subsidiaries and associates		－			1,581			14,674
Total extraordinary income		－			4,817			44,709
Loss before income taxes		(4,391)			(14,114)			(131,001)
Income taxes		3,578			(2,366)			(21,960)
Loss		(7,969)			(11,747)			(109,031)
Profit attributable to non-controlling interests		279			24			223
Loss attributable to owners of parent		(8,249)			(11,771)			(109,254)

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(Consolidated)

Segment information

Information by reportable segment

					Millions of yen
					Three months ended
					Jun. 30, 2019
		External			Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems		122,188		2,383		124,572		4,869
Energy System & Plant Engineering		45,017			5,407			50,425			828
Precision Machinery & Robot		48,347			3,253			51,600			1,760
Ship & Offshore Structure		22,895			2,100			24,996			(398)
Rolling Stock		20,424			8			20,433			(3,548)
Motorcycle & Engine		68,356			138			68,494			(2,849)
Other		23,546			9,162			32,709			472
Total		350,778			22,454			373,232			1,134
Eliminations and corporate		-			(22,454)			(22,454)			(45)
Consolidated total		350,778			-			350,778			1,088
					Millions of yen
					Three months ended
					Jun. 30, 2020
		External		Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems		74,619		1,874		76,493		(17,518)
Energy System & Plant Engineering	50,081			4,859			54,941			1,580
Precision Machinery & Robot		45,403			2,549			47,953			1,343
Ship & Offshore Structure		22,191			706			22,897			(437)
Rolling Stock		32,362			1			32,364			(1,463)
Motorcycle & Engine		58,974			126			59,100			(5,944)
Other		16,969			8,381			25,350			(153)
Total		300,602			18,499			319,102			(22,593)
Eliminations and corporate		-			(18,499)			(18,499)			1,931
Consolidated total		300,602			-			300,602			(20,661)
					Thousands of U.S. dollars
					Three months ended
					Jun. 30, 2020
		External			Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems	$	692,584	$	17,394	$	709,978	$	(162,595)
Energy System & Plant Engineering		464,832			45,099			509,941			14,665
Precision Machinery & Robot		421,413			23,659			445,081			12,465
Ship & Offshore Structure		205,968			6,553			212,521			(4,056)
Rolling Stock		300,371			9			300,390			(13,579)
Motorcycle & Engine		547,373			1,169			548,543			(55,170)
Other		157,500			77,789			235,289			(1,420)
Total		2,790,069			171,700			2,961,778			(209,699)
Eliminations and corporate		-			(171,700)			(171,700)			17,923
Consolidated total	$	2,790,069		$	-		$	2,790,069		$	(191,767)

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(Consolidated)

Orders by reportable segment

For three months ended June 30, 2020 and 2019

		Billions of yen			Millions of
				U.S. dollars
	Three months ended		Three months ended		Three months ended
Orders :		Jun. 30, 2019			Jun. 30, 2020			Jun. 30, 2020
				45.4
Aerospace Systems		69.7		$	421
Energy System & Plant Engineering		69.8			46.2			429
Precision Machinery & Robot		52.9			50.7			471
Ship & Offshore Structure		21.5			9.9			92
Rolling Stock		16.0			18.7			174
Motorcycle & Engine		68.3			58.9			547
Other		29.7			18.0			167
Total		328.2			248.2		$	2,304

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