Kawasaki Heavy Industries : Report of Earnings and Financial Statements for the Three Months Ended June 30, 2023(Consolidated)&l...

Report of Earnings and Financial Statements for the

Three Months Ended June 30, 2023 (Consolidated)

	August 8, 2023
Listed company's name:	Kawasaki Heavy Industries, Ltd.
Listed on:	TSE (Prime Market), and NSE (Premier Market)
Stock code:	7012
URL:	https://global.kawasaki.com/
Representative:	Yasuhiko Hashimoto, President and Chief Executive Officer
Contact:	Takashi Torii, Executive Officer, Group Manager, Corporate Communication
	Group Department
Tel:	[phone]

Scheduled dates:

Submission of quarterly securities filing: Commencement of dividend payments: Supplementary materials to quarterly earnings:

Quarterly earnings presentation:

August 8, 2023

-

Available

Conducted (for institutional investors, analysts and the press)

(Amounts in millions of yen rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023

(April 1, 2023 - June 30, 2023)

(1) Operating Results

(Percentage figures represent changes versus the year-ago period)

	Revenue	Business profit	Profit before tax	Profit
	Millions of	%	Millions of	%	Millions of	%	Millions of	%
	yen		yen		yen		yen
Three Months Ended	405,340	15.7	10,253	123.2	14,966	41.1	9,447	63.0
June 30, 2023
Three Months Ended	350,344	(1.5)	4,593	(75.2)	10,605	(37.8)	5,794	(51.3)
June 30, 2022
	Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
	owners of parent	income		per share	per share
	Millions of	%	Millions of	%		yen		yen
	yen		yen
Three Months Ended	9,089	66.5	19,179	2.2		54.27		-
June 30, 2023
Three Months Ended	5,457	(52.4)	18,761	26.2		32.58		-
June 30, 2022

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(2) Financial Condition

				Ratio of equity
	Total assets	Total equity	Equity attributable to	attributable to
	owners of parent	owners of parent to
				total assets
	Millions of yen	Millions of yen	Millions of yen	%
As of June 30, 2023	2,480,770	605,244	584,768	23.6
As of March 31, 2023	2,457,725	596,872	576,201	23.4

2. Dividends

Record date or term

Dividend per share

End of first

End of second

End of third

End of fiscal

Full year

quarter

quarter

quarter

year

Year ended

yen

yen

yen

yen

yen

-

30.00

-

60.00

90.00

March 31, 2023

Year ending

-

March 31, 2024

Year ending March 31,

40.00

-

40.00

80.00

2024 (forecast)

Note: Revisions to the most recently announced dividend forecast: None

In the Company's articles of incorporation, the dates of record are set as the last day of the fiscal second quarter and the last day of the fiscal year.

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2024

(April 1, 2023 - March 31, 2024)

(Percentage figures indicate change compared with the previous fiscal year)

							Profit attributable	Basic earnings
	Revenue	Business profit	Profit before tax	to owners of
	per share
							parent
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	yen
	yen		yen		yen		yen
Full year	1,900,000	10.1	78,000	(5.3)	70,000	(0.5)	47,000	(11.4)	280.62

Note: Revisions to the most recently announced earnings forecast: None

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Notes

1. Changes affecting the status of material subsidiaries (scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
4. Number of shares issued and outstanding (common shares)
5. 1. Number of shares issued as of period-end (including treasury shares)

	June 30, 2023:	167,921,800 shares
	March 31, 2023:	167,921,800 shares
(2)	Number of shares held in treasury as of period-end
	June 30, 2023:	440,794 shares
	March 31, 2023:	440,255 shares
(3)	Average number of shares during respective periods
	June 30, 2023:	167,481,211 shares
	June 30, 2022:	167,471,974 shares

*The quarterly report of earnings and financial statements is exempted from quarterly review procedures based on the Financial Instruments and Exchange act.

*Appropriate Use of Financial Forecasts and Other Important Matters

Forward-Looking Statements

These materials contain various forward-looking statements and other forecasts regarding performance and other matters. Such statements are based on information available at the time of their preparation, and do not mean that the Company promises to achieve these figures. Actual results may differ from those expressed or implied by forward-looking statements due to a range of factors. For assumptions underlying earnings forecasts and other information regarding the use of such forecasts, refer to "1. Qualitative Information about Financial Statements (3) Consolidated earnings forecast" on page 11 in the Accompanying Materials.

How to Obtain Supplementary Material on Quarterly Financial Results and Details of the Quarterly Financial Results

The Company plans to conduct a presentation for institutional investors, analysts and the press on Tuesday, August 8, 2023, and to post the presentation material on quarterly financial results to be used for the presentation on TDnet and the Company's website simultaneously with the announcement of financial results.

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Accompanying Materials - Contents

1. Qualitative Information about Financial Statements	5
(1)	Consolidated operating results	5
(2)	Consolidated financial condition	10
(3)	Consolidated earnings forecast	11
2. Condensed Quarterly Consolidated Financial Statements and Notes	12
(1)	Condensed Quarterly Consolidated Statement of Financial Position	12
(2) Condensed Quarterly Consolidated Statement of Profit and Loss and	13
	Condensed Quarterly Consolidated Statement of Comprehensive Income
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity	14
(4)	Condensed Quarterly Consolidated Statement of Cash Flow	16
(5)	Notes Concerning Condensed Quarterly Consolidated Financial Statements	17
(Notes on the going-concern assumption)	17
(Segment information)	17
3. Supplementary information	18
(1)	Supplementary information on consolidated earnings forecasts for the fiscal year ending	18

March 31, 2024

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1. Qualitative Information about Financial Statements

(1) Consolidated operating results

The global economy has not seen a significant economic slowdown, as the unemployment rate stays at a low level in the United States as well as the inflation rate is declining due to monetary tightening. In Japan, the Nikkei Stock Average has remained at a high level, reaching its highest level since the collapse of the bubble economy, supported by increasing inbound demand due to the elimination of border control measures associated with COVID-19 and rising wages due to high prices.

On the other hand, we need to keep a close watch on the future trend of domestic and global economy, including increased downside risks to the economy due to sluggish real estate market in China as well as the impact of uncertain foreign exchange rates.

In this business environment, the Group's consolidated orders received during the first quarter of this consolidated fiscal year increased mainly due to increases in the Aerospace Systems segment and the Powersports & Engine segment. Revenue increased from the same period of the previous fiscal year as a whole, due to higher sales in the Powersports & Engine segment, the Rolling Stock segment, the Aerospace Systems segment, etc.

Business profit increased year on year mainly due to improvements in the Energy Solution & Marine Engineering segment and the Aerospace Systems segment, despite a deterioration in the Precision Machinery & Robot segment. Profit attributable to owners of parent increased due to an increase in business profit.

As a result, the Group's consolidated orders received increased by ¥45.2 billion year on year to ¥457.3 billion, consolidated revenue increased by ¥54.9 billion year on year to ¥405.3 billion, business profit increased by ¥5.6 billion year on year to ¥10.2 billion, profit before tax increased by ¥4.3 billion year on year to ¥14.9 billion, and profit attributable to owners of parent increased by ¥3.6 billion year on year to ¥9.0 billion.

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