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

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES

FLASH CONSOLIDATED FINANCIAL RESULTS	February 4, 2021
For nine months ended December 31, 2020 and 2019 and one year ended March 31, 2020	(Consolidated)

Operating results

		Millions of yen	Thousands of U.S. dollars
	Nine months ended		Nine months ended			Nine months ended
Net sales		Dec. 31, 2020			Dec. 31, 2019			Dec. 31, 2020
	1,032,484		1,135,444		$	9,973,764
Operating profit		(3,735)			30,983			(36,080)
Profit attributable to owners of parent		(13,969)			4,762			(134,940)
Earnings per share (Yen)		(83.62)			28.50

Financial position

		Millions of yen / Thousand shares	Thousands of U.S. dollars
		As of			As of		As of
Total assets		Dec. 31, 2020			March. 31, 2020		Dec. 31, 2020
	2,041,646		1,957,845		$ 19,722,237
Net assets		456,632			471,562	4,411,051
Number of shares issued and outstanding		167,042			167,043
Equity Ratio		21.6%			23.3%

Cash flows

		Millions of yen	Thousands of U.S. dollars
	Nine months ended		Nine months ended		Nine months ended
Operating activities		Dec. 31, 2020			Dec. 31, 2019		Dec. 31, 2020
	(139,750)		(288,421)		$ (1,349,981)
Investing activities		(22,400)			(46,216)	(216,383)
Financing activities		192,645			335,815	1,860,945
Cash and cash equivalents at end of period		133,085			70,914	1,285,597

Fiscal year forecast					Millions of yen
		Net sales			Operating profit			Profit attributable to
						owners of parent
One year ending March 31, 2021		1,500,000		(10,000)		(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 ￥103.52=$1, the rate prevailing as of December 30, 2020, solely for the convenience of the readers.

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								(Consolidated)
Consolidated Balance Sheets
As of December 31 and March 31, 2020
		Millions of yen			Thousands of
				U.S. dollars
		As of			As of			As of
Assets		Mar. 31, 2020			Dec. 31, 2020			Dec. 31, 2020
Current assets					137,326
Cash and deposits		106,108		$	1,326,565
Notes and accounts receivable - trade		473,204			477,359			4,611,273
Merchandise and finished goods		75,042			66,620			643,547
Work in process		426,256			482,563			4,661,544
Raw materials and supplies		130,359			135,067			1,304,743
Other		51,176			68,168			658,501
Allowance for doubtful accounts		(3,367)			(3,407)			(32,912)
Total current assets		1,258,781			1,363,698			13,173,281
Non-current assets
Property, plant and equipment					179,453
Buildings and structures, net		193,931					1,733,510
Other		288,639			283,811			2,741,605
Total property, plant and equipment		482,570			463,264			4,475,116
Intangible assets		21,358			22,092			213,408
Investments and other assets					193,966
Other		196,973					1,873,706
Allowance for doubtful accounts		(1,838)			(1,375)			(13,282)
Total investments and other assets		195,134			192,590			1,860,413
Total non-current assets		699,063			677,947			6,548,947
Total assets		1,957,845			2,041,646			19,722,237
Liabilities
Current liabilities					221,257
Notes and accounts payable - trade		261,159					2,137,336
Electronically recorded obligations - operating		110,526			112,685			1,088,534
Short-term borrowings		166,188			183,605			1,773,619
Income taxes payable		6,116			5,804			56,066
Provision for sales promotion expenses		12,174			6,176			59,660
Provision for bonuses		22,032			9,199			88,862
Provision for construction warranties		14,454			11,941			115,350
Provision for loss on construction contracts		11,464			12,245			118,286
Advances received		148,610			135,126			1,305,313
Other		194,998			303,687			2,933,607
Total current liabilities		947,726			1,001,729			9,676,671
Non-current liabilities					190,000
Bonds payable		160,000					1,835,394
Long-term borrowings		188,859			196,258			1,895,846
Retirement benefit liability		129,846			136,253			1,316,200
Provision for the in-service issues of		15,689			9,656			93,277
commercial aircraft jet engines
				51,116
Other		44,161					493,779
Total non-current liabilities		538,556			583,284			5,634,505
Total liabilities		1,486,283			1,585,013			15,311,177
Net assets
Shareholders' equity					104,484
Share capital		104,484					1,009,312
Capital surplus		54,542			54,542			526,874
Retained earnings		326,626			311,888			3,012,828
Treasury shares		(133)			(134)			(1,294)
Total shareholders' equity		485,520			470,780			4,547,720
Accumulated other comprehensive income					1,378
Valuation difference on available-for-sale securities		1,636					13,311
Deferred gains or losses on hedges		(272)			403			3,893
Foreign currency translation adjustment		(11,311)			(13,777)			(133,085)
Remeasurements of defined benefit plans		(19,946)			(18,752)			(181,144)
Total accumulated other comprehensive income		(29,892)			(30,748)			(297,025)
Non-controlling interests		15,934			16,600			160,355
Total net assets		471,562			456,632			4,411,051
Total liabilities and net assets		1,957,845			2,041,646			19,722,237

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(Consolidated)

Consolidated Statements of Profit and Loss

For nine months ended December 31, 2020 and 2019

		Millions of yen			Thousands of
				U.S. dollars
	Nine months ended		Nine months ended		Nine months ended
Net sales		Dec. 31, 2019			Dec. 31, 2020			Dec. 31, 2020
	1,135,444		1,032,484		$	9,973,764
Cost of sales		954,085			899,606			8,690,166
Gross profit		181,359			132,877			1,283,588
Selling, general and administrative expenses					40,709
Salaries and allowances		41,357					393,248
Research and development expenses		36,371			29,751			287,394
Other		72,645			66,152			639,026
Total selling, general and administrative expenses		150,375			136,612			1,319,668
Operating profit (loss)		30,983			(3,735)			(36,080)
Non-operating income					396
Interest income		530					3,825
Dividend income		252			797			7,699
Share of profit of entities accounted for using equity method		867			1,454			14,046
Foreign exchange gains		－			1,936			18,702
Reversal of provision for the in-service issues of		－			3,005			29,028
commercial aircraft jet engines
				3,096
Other		2,157					29,907
Total non-operating income		3,807			10,687			103,236
Non-operating expenses					2,918
Interest expenses		2,787					28,188
Foreign exchange losses		4,794			－			-
Payments for the in-service issues of		7,640			－			-
commercial aircraft jet engines
				4,090
Other		4,189					39,509
Total non-operating expenses		19,411			7,008			67,697
Ordinary profit (loss)		15,379			(56)			(541)
Extraordinary income
Gain on sales of non-current assets		1,277			3,236			31,260
Gain on sales of shares of subsidiaries and associates		－			1,581			15,272
Total extraordinary income		1,277			4,817			46,532
Extraordinary losses
Loss on withdrawal from business		2,383			－			-
Impairment loss		－			3,948			38,138
Total extraordinary losses		2,383			3,948			38,138
Profit before income taxes		14,273			811			7,834
Income taxes		8,416			13,580			131,182
Profit (loss)		5,856			(12,768)			(123,338)
Profit attributable to non-controlling interests		1,094			1,200			11,592
Profit (loss) attributable to owners of parent		4,762			(13,969)			(134,940)

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