Report of Earnings and Financial Statements for theThree Months Ended June 30, 2018 (Consolidated)(Prepared pursuant to Japanese GAAP)
July 31, 2018
Listed company’s name:

Kawasaki Heavy Industries, Ltd.

Listed on:
Stock code:
URL:
Representative:
Contact:
Tel:

1st sections of the TSE, and NSE
7012
https://www.khi.co.jp/
Yoshinori Kanehana, President
Tatsuo Hoshino, Senior Manager, Accounting Department+81 3-3435-2130

Scheduled dates:
Submission of quarterly securities filing:
Commencement of dividend payments:
Supplementary materials to quarterly earnings:
Quarterly earnings presentation:

August 8, 2018
Available
Conducted (for institutional investors, analysts and thepress)

1. Consolidated Financial Results for the Three Months ended June 30, 2018
(April 1, 2018 – June 30, 2018)(Amounts in millions of yen rounded down to the nearest million yen)

(1) Operating Results
Net sales(Percentage figures represent changes versus the year-ago period)
Net income attributable
Operating income
Recurring profit
to owners of parent
million yen%
million yen%
million yen%

million yen%
Three Months Ended
343,785
2.5
7,103
44.6
8,550
57.3
2,561 (21.8)
June 30, 2018
Three Months Ended
335,329(1.3)
4,908 (69.2)
5,433
(5.3)
3,278 (31.6)
June 30, 2017
Note: Comprehensive income: Three months ended June 30, 2018:
1,672 million yen(46.5)%
Three months ended June 30, 2017:
3,130 million yen-%
Earnings per share
Earnings per share– dilutedyenyenThree Months Ended
15.33
June 30, 2018
Three Months Ended
19.62
June 30, 2017
Note: As the company carried out a share consolidation with a 10:1 ratio of common shares with an effective dateof October 1, 2017, earnings per share has been calculated assuming this share consolidation was carried out
at the beginning of the fiscal year ended March 31, 2017 .

1

(2) Financial Condition
Total assets

Net assets

Equity ratio

million yen

million yen%

June 30, 2018

1,847,870

477,549

25.0

March 31, 2018

1,785,028

481,38626.1

Note: Shareholders’ equity: June 30, 2018: 462,698 million yen
March 31, 2018: 466,061 million yen

2. Dividends

Record date or term

Dividend per share
End of third
End of fiscal
quarter
year
yen
yen

End of firstquarteryen

End of second
quarter
yen

-

3.00

-

30.00

-

35.00

-

35.00

70.00

Year ended
March 31, 2018Year ending
March 31, 2019Year ending March
31, 2019 (forecast)

Full year
yen-

Note: Revisions to the most recently announced dividend forecast: None
※ The company conducted a share consolidation with a 10:1 ratio of common shares, with an effective date ofOctober 1, 2017. The expected dividend per share for the fiscal year ended March 31, 2018 factoring in theimpact of the share consolidation is shown. The total annual dividend for the fiscal year ended March 31, 2018
is denoted with the “-“ mark. Without the impact of the share consolidation factored in, the expected dividend
per share for the fiscal year ended March 31, 2018 would be ¥3 per share, and the total annual dividend wouldbe ¥6 per share.

3. Forecast of Consolidated Earnings for the Year Ending March 31, 2019
(April 1, 2018 – March 31, 2019)
Net sales

Full year

million yen%

1,650,000

4.8(Percentage figures represent changes versus the year-ago period)
Net income
Earnings per
Operating income
Recurring profit
attributable to owners
shareof parent
million yen%
million yen%
million yen%
yen
75,00034.1

Note: Revisions to the most recently announced earnings forecast: None270,00061.9

47,00062.5

281.35

Notes1) Changes affecting the status of material subsidiaries (scope of consolidation): None2) Accounting procedures specific to preparation of quarterly consolidated financial statements: Yes*For further details, see “2.Consolidated Financial Statements (3)Notes on financial statements” onpage 14 in the Accompanying Materials.
3) Changes in accounting policies, changes in accounting estimates, and correction of errors(1) Changes in accounting policies in accord with revisions to accounting standards: None
(2) Changes in accounting policies other than (1): None
(3) Changes in accounting estimates: None
(4) Correction of errors: None
4) Number of shares issued and outstanding (common stock)(1) Number of shares issued as of period-end (including treasury stock)June 30, 2018:
167,080,532 shares
March 31, 2018:
167,080,532 shares(2) Number of shares held in treasury as of period-end
June 30, 2018:33,585 shares
March 31, 2018:
33,049 shares(3) Average number of shares during respective periods
June 30, 2018:
167,047,117 shares
June 30, 2017:
167,054,407 shares*As the company carried out a share consolidation with a 10:1 ratio of common shares with an effective date ofOctober 1, 2017, the number of shares issued as of period-end, the number of shares held in treasury as ofperiod-end, and the average number of shares during respective periods have been calculated assuming that
this share consolidation was carried out at the beginning of the fiscal year ended March 31, 2017.

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 performanceand other matters. Such statements are based on information available at the time of their preparation, anddo not mean that the Company promises to achieve these figures. Actual results may differ from thoseexpressed 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 and Financial Statements (3) Consolidated earnings outlook ” on page 10 in the
Accompanying Materials.
How to Obtain Supplementary Briefing Material on Quarterly Financial Results and Details of theQuarterly Financial Results Briefing
The Company plans to conduct a briefing for institutional investors ,analysts and the press by conference
call on Tuesday July 31, 2018, and to post the briefing material on quarterly financial results to be used
for the briefing on TDnet and the Company’s website simultaneously with the announcement of financial
results.

3

Accompanying Materials – Contents
1. Qualitative Information and Financial Statements

5(1) Consolidated operating results

5(2) Consolidated financial position

10(3) Consolidated earnings outlook

10

2. Consolidated Financial Statements

11(1) Consolidated balance sheets

11(2) Consolidated statements of income and comprehensive income13(3) Notes on financial statements

14(Notes on the going-concern assumption)

14(Notes on significant changes in the amount of shareholders’ equity)

14(Accounting procedures specific to preparation of quarterly consolidated financial statements)

14(Segment information and others)

14

3.Other15(1) Claim for damages in overseas LNG tank construction work
4. Supplementary Information

15
16(1) Consolidated cash flow statements (condensed)

416

1. Qualitative Information about Financial Statements(1) Consolidated operating results
In the first three months of the fiscal year ending March 31, 2019, the global economy is relatively
lacking in vigor overall due to the economic slowdown in emerging countries and resource-richcountries, along with other factors, despite the ongoing modest growth centered on the U.S., where
the real economy remains strong, as well as China, where foreign and domestic demand is robust. In
addition, uncertainty about future prospects for the real economy persists, including influence tocorporate activities due to Brexit, concerns about economic deterioration due to the trade friction
between the U.S. and China, and other factors. Going forward, these risks with the potential to dragdown the global economy must continue to be watched.
The Japanese economy has been recovering modestly, due to the modest increasing of capital
investment, the improvement in corporate earnings, and other factors. Although overall modest
growth is expected to continue, it is necessary to continue to closely watch foreign exchange rates
since the economic policies of the U.S. and other countries or other factors may trigger a swing to
yen appreciation.
Amid such an operating environment, the Group’s orders received in the first three months of the
fiscal year ending March 31, 2019, increased versus the previous fiscal year, mainly in the Energy
System & Plant Engineering and Rolling Stock segment. Net sales increased overall, due toincreases in the Precision Machinery & Robot and Motorcycle & Engine segments, despite a decline
in the Rolling Stock segment. Operating income increased overall, due to improvement in the Ship
& Offshore Structure segment and other factors, despite the deterioration in the Aerospace Systems
segment. Recurring profit increased due to the improvement of foreign exchange income and theother factors. Net income attributable to owners of parent decreased as a result of the increase of tax
expenses.
As a result, the Group’s consolidated orders received increased ¥81.1 billion versus the same
period of the previous fiscal year to ¥353.7 billion, consolidated net sales increased ¥8.4 billion year
on year to ¥343.7 billion, consolidated operating income increased ¥2.1 billion year on year to ¥7.1
billion, consolidated recurring profit rose by ¥3.1 billion year on year to ¥8.5 billion, and net income
attributable to owners of parent decreased ¥0.7 billion year on year to ¥2.5 billion.

5

First-quarter consolidated operating performance is summarized by segment below.

Segment Information
Segment net sales, operating income, and orders received (billion yen)Three months ended June 30

2017 (A)2018 (B)

Orders received

Change (B – A)Three months ended
June 30

Net

Net

Net

OperatingNet

Operating

2017

2018

Change

sales

sales

sales

incomeSales

income(A)(B)(B – A)

Aerospace
Systems

105.9

7.9

104.9

5.3

(0.9)

(2.6)

67.3

79.0

11.7

53.5

(0.5)

51.0

0.2

(2.5)

0.7

53.2

93.9

40.6

41.8

4.5

47.9

4.5

6.1

0.0

42.8

50.9

8.0

Structure

19.7

(2.8)

22.0

1.3

2.3

4.2

13.3

6.9

(6.4)

Rolling Stock

29.1

(0.9)

23.3

(0.9)

(5.7)

0.0

11.1

24.9

13.7

Engine

67.7

(3.3)

73.7

(3.3)

5.9

0.0

67.7

73.7

5.9

Other

17.4

0.6

20.6

0.3

3.1

(0.3)

16.9

24.2

7.3

-

(0.6)

-

(0.5)

-

0.1

-

-

-

335.3

4.9

343.7

7.1

8.4

2.1

272.5

353.7

81.1

Energy System& Plant
Engineering
Precision
Machinery &RobotShip & Offshore

Motorcycle &Adjustments
Total

Notes: 1. Net sales include only sales to external customers.
2.The Motorcycle & Engine segment’s orders received are equal to its net sales as production is based mainlyon estimated demand.
3. The Company has reviewed the method of business segment classification from the first three months of the
fiscal year ending March 31, 2019 and has changed its reportable segments from the previous Ship &Offshore Structure, Rolling Stock, Aerospace, Gas Turbine & Machinery, Plant & Infrastructure, Motorcycle& Engine, Precision Machinery, and Other Operations to Aerospace Systems, Energy System & Plant
Engineering, Precision Machinery & Robots, Ship & Offshore Structure, Rolling Stock, Motorcycle &Engine, and Other Operations .
Consolidated segment information for the first three months of the fiscal year ended March 31, 2018 has
been prepared using the revised segment classification method.

6

Aerospace Systems
Concerning the business environment surrounding the Aerospace Systems segment, there is acertain level of demand from the Ministry of Defense in Japan amid the tight defense budget, while
demand for new and replacement of commercial aircraft airframes and jet engines is increasing in
conjunction with the rise in the number of air passengers.
Amid such an operating environment, consolidated orders received increased ¥11.7 billion year on
year to ¥79.0 billion due to remains for a high level of demand for component parts for commercial
aircraft and the increase of a demand of component parts for commercial aircraft jet engines.
Consolidated net sales was ¥104.9 billion on par with the same period of the previous fiscal year,
due to remains for a high level of demand of component parts for commercial aircraft and increasingof a demand for component parts for e commercial aircraft engines.
Consolidated operating income fell ¥2.6 billion year on year to ¥5.3 billion due to factors
including an increase in amortization of new program development costs of component parts forcommercial aircraft jet engines.
Energy System & Plant Engineering
Regarding the business environment surrounding the Energy System & Plant Engineering
segment, in addition to the recovery in resources development and oil and natural gas-related
investment overseas due to the rise in crude oil prices, there is still demand for energy infrastructure
maintenance in Asia. Besides, demand for distributed power sources is increasing due to stronger
interest in investment in the environment and energy conservation, among other factors. In Japan,
there is ongoing demand for replacing aging facilities for refuse incineration plants and industrial
machinery. Meanwhile, in the energy and environmental field, although there is large potential
demand for distributed power sources in Japan, investment plans are slightly delayed in light of theliberalization of electricity.
Amid such an operating environment, consolidated orders received increased ¥40.6 billion year on
year to ¥93.9 billion, due to the order received of a LNG tank and industrial gas turbine for thedomestic market.
Consolidated net sales fell ¥2.5 billion year on year to ¥51.0 billion, due to the decline inconstruction work volume on a chemical plant for overseas market, and other factors.
Despite the drop in sales, operating income was ¥0.2 billion, a ¥0.7 billion increase compared tothe previous year due to the profitability improvement in the Energy System segment and the otherfactors.

7

Precision Machinery & Robot
With respect to the business environment surrounding the Precision Machinery segment, theconstruction machinery market is brisk, centered on robust demand for vigorous excavators in China,
and our construction machinery manufacturers, which are our customers, are competing to increase
production. As for robots, in addition to increased demand in the automotive and semiconductor
fields, demand is growing due to the expansion of the application coverage of industrial robots
caused by the shortage of workers.
Amid such an operating environment, consolidated orders received increased ¥8.0 billion year on
year to ¥50.9 billion, due to the increase in hydraulic components for construction machinery andvarious industrial robots.
Consolidated net sales increased ¥6.1 billion year on year to ¥47.9 billion, due to an increase insales of hydraulic components for construction machinery and a sustained high demand for various
industrial robots.
Although net sales increased, consolidated operating income was ¥4.5 billion, nearly unchanged
year on year, as a result of factors including an increase in costs associated with increased
production.
Ship & Offshore StructureWith respect to the business environment surrounding the Ship & Offshore Structure segment,
while new-build vessel prices are recovering after bottoming out and demand for gas-fueled vessels
has been increasing in conjunction with the tightening of environmental regulations, competition
remains intense due to factors including the pushing back of demand for LNG carriers due to thedelay in LNG development projects and the continuation of policies by the Chinese and South
Korean governments to support their domestic shipbuilding industries.
Amid such an operating environment, consolidated orders received were ¥6.9 billion, a ¥6.4
billion year on year decline versus the same period of the previous fiscal year when orders for LPG
carriers and Kawasaki JETFOIL were received.
Consolidated net sales increased ¥2.3 billion year on year to ¥22.0 billion, due to an increase of a
volume of vessel repair.
Consolidated operating income was ¥1.3 billion, a ¥4.2 billion improvement from the same periodof the previous fiscal year due to the sale increase, improvement of shipbuilding cost and otherfactors..

8

Rolling Stock
With respect to the business environment surrounding the Rolling Stock segment, there continues
to be stable demand in Japan for the replacement of aging railcars. In North America, demand for
new and replacement railcars have been increasing in the New York area, which is the core market,
and the other areas. Meanwhile, in Asia, demand in emerging markets is increasing in tandem with
the Japanese government’s efforts to promote infrastructure-related exports.
In this business environment, consolidated orders received increased ¥13.7 billion year on year to¥24.9 billion due to factors including receipt of orders for rolling stock and modification work for
North America.
Consolidated net sales decreased ¥5.7 billion year on year to ¥23.3 billion, due to the decrease ofsales for overseas market, North America and other countries.
Although sales decreased, consolidated operating loss was ¥0.9 billion, nearly unchanged year on
year, as a result of factors including higher profits from components and construction work.

Motorcycle & Engine
Regarding the business environment surrounding the Motorcycle & Engine segment, the modest
growth in motorcycle markets mainly in Europe is continuing, and the decline in demand for
motorcycles in emerging countries is signaling a bottoming out. With respect to utility vehicles, themarket continues to grow stably mainly in North America, and the general-purpose engine market isalso growing steadily.
Amid such an operating environment, consolidated net sales increased ¥5.9 billion year on year to¥73.7 billion, due to the increase in motorcycles and vehicles for developed countries, despite thedecline in motorcycles for emerging markets.
Although sales increased, consolidated operating loss was ¥3.3 billion, nearly unchanged year on
year, as a result of factors including a temporary increase in selling, general, and administrative
expenses.
Other Operations
Consolidated net sales increased ¥3.1 billion year on year to ¥20.6 billion.
Consolidated net operating income was ¥0.3 billion on per with the same period in the previous
fiscal year.

9(2) Consolidated financial position(i) Assets
Total assets at June 30, 2018, were ¥1,847.8 billion, ¥62.8 billion increase from March 31, 2018.
Current assets increased ¥68.0 billion year on year to ¥1,183.8 billion, due to increasing of workin process. Fixed assets decreased ¥5.2 billion year on year to ¥663.9 billion, primarily due todepreciation and amortization.
(ii) Liabilities
Liabilities increased ¥66.6 billion year on year to ¥1,370.3 billion due to the increasing of interest
bearing liabilities such as Short-term debt and other factors.
Interest bearing liabilities increased ¥94.5 billion year on year to ¥541.1 billion.
(iii) Net assets
Consolidated net assets decreased ¥3.8 billion year on year to ¥477.5 billion due to the increase
the posting of net income attributable to owners of parent and the decrease of dividends.

(3) Consolidated earnings outlook
The Company has left its earnings forecasts for the fiscal year ending March 31, 2019, unchanged
from the figures previously announced on April 26, 2018.
The Company’s earnings forecasts assume exchange rates of ¥107 to the U.S. dollar and ¥130 tothe euro.

Note regarding consolidated earnings outlook
The above earnings outlook is based on information available at the time of preparation, andincludes risks and uncertainties. We therefore discourage making investment decisions depending
solely on this outlook. Please note that actual earnings may differ materially from this outlook, due
to a variety of important factors stemming from changes the external environment and/or theCompany’s internal environment. Important factors that impact actual operating performance include,
but are not limited to, the economic situation surrounding the Company’s scope of business, foreignexchange rates, in particular the yen/dollar exchange rate, tax codes and other regulatory
system-related issues.

102. Consolidated Financial Statements(1) Consolidated balance sheets
Million yen
As of
As of
March 31, 2018
June 30, 2018
AssetsCurrent assets
Cash on hand and in banks
Trade receivables
Merchandise and finished products
Work in process
Raw materials and supplies
Other
Allowance for doubtful receivables

70,632
470,11062,385
326,459
115,893
72,542(2,247)
1,115,776

58,055483,864
65,327
382,486
112,966
85,108(3,937)1,183,871

Total current assets
Fixed assets
Net property, plant and equipment
Buildings and structures
Other
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

186,623
293,173
479,797
16,178

195,890
287,037
482,928
16,196

176,961(3,685)173,276
669,252
1,785,028

168,326(3,452)
164,874
663,999
1,847,870

Liabilities
Current liabilities
Trade payables
Electronically recorded obligations - operating
Short-term debt
Income taxes payable
Accrued bonuses
Provision for product warranties
Provision for losses on construction contracts
Advances from customers
Other
Total current liabilities

245,398
117,772
108,978
6,042
19,90313,00018,258194,306
145,737
869,398

217,536
118,317
121,756
5,822
21,742
11,81916,874
186,119
222,888922,877

130,000
185,685
86,836
31,721
434,244
1,303,642

130,000
181,419
87,482
48,541
447,443
1,370,321

Long-term liabilities
Bonds payable
Long-term debt
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities

11

Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

104,484
54,573308,010(124)
466,944

104,484
54,573
305,560(126)
464,492

Accumulated other comprehensive income
Net unrealized gains (losses) on securities, net of tax
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total net assets and liabilities

3,526
403
719
(5,532)(883)
15,324
481,386
1,785,028

3,699
(731)
(5)
(4,756)(1,793)
14,850477,549
1,847,870

12

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income
Million yen
Three months ended
June 30, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and benefits
R&D expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in income of non-consolidated subsidiaries and affiliates
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Recurring profit
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

Three months ended
June 30, 2018335,329
284,154
51,175

343,785
288,048
55,737

12,601
9,455
24,20946,266
4,908

12,960
10,32325,34948,634
7,103

193
158
1,335
553
549
2,790

93
142
323
2,038
601
3,198

667
1,598
2,266
5,433
5,433
1,749
3,683
405
3,278

753
998
1,751
8,550
8,550
5,636
2,913
352
2,561

Consolidated statements of comprehensive income
Million yen
Three months ended
June 30, 2017
Net income
Other comprehensive income
Net unrealized gains (losses) on securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurement of defined benefit plans
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive Income attributable to:
Owners of parent
Non-controlling interests

13

Three months ended
June 30, 2018

3,683

2,913

270
248
23
863

175
(1,127)536
777(1,958)(1,604)

(553)
3,130
2,633
497

(1,241)
1,672
1,651
20

(3) Notes on financial statements

Notes on the going-concern assumption
Not applicable
Notes on significant changes in the amount of shareholders’ equity
Not applicable
Accounting procedures specific to preparation of quarterly consolidated financial statements(Calculation of tax expense)
The Company calculates tax expense by rationally estimating its effective tax rate after
application of tax effect accounting to pretax net income for the fiscal year which includes the firstquarter under review, and multiplying quarterly pretax net income by said estimated effective tax
rate. If unable to use the estimated effective tax rate, the Company calculates tax expense bymultiplying the statutory effective tax rate by quarterly pretax net income adjusted to reflect material
differences other than temporary differences.
Income taxes are reported inclusive of income tax adjustments.
Segment information
1. Three months ended June 30, 2017 (April 1, 2017 – June 30, 2017)(1) Sales and income (loss) by reportable segment
Million yen

Aerospace Systems
Energy System & Plant Engineering
Precision Machinery & Robot
Ship & Offshore structure
Rolling stock
Motorcycle & Engine
Other
Reportable segment total
Adjustments*1
Consolidated total
Notes: 1. Breakdown of adjustments:

External sales

Intersegment
sales

Total sales

Operatingincome (loss)

105,90353,522
41,823
19,711
29,171
67,76917,427335,329
335,329

975
4,097
3,376
709
47
138
9,840
19,186(19,186)-

106,879
57,61945,20020,421
29,21967,90727,268354,516(19,186)
335,329

7,978
(514)
4,576
(2,861)(944)(3,327)
664
5,571
(662)
4,908

Million yen
Amount(18)(643)

IncomeIntersegment transactions
Corporate expenses*

Total
(662)
*Corporate expenses mainly comprise general and administrative expenses not attributed to reportablesegments.
2. Segment income adjustments are based on operating income reported on the consolidated statements
of income for the corresponding period.

(2) Impairment loss on fixed assets and goodwill by reportable segment
Not applicable142. Three months ended June 30, 2018 (April 1, 2018 – June 30, 2018)(1) Sales and income (loss) by reportable segment
Million yen

Aerospace Systems
Energy System & Plant Engineering
Precision Machinery & Robot
Ship & Offshore structure
Rolling stock
Motorcycle & Engine
Other
Reportable segment total
Adjustments*1
Consolidated total
Notes: 1. Breakdown of adjustments:

External sales

Intersegment
sales

Total sales

Operatingincome (loss)

104,946
51,00447,99222,08523,39273,757
20,607343,785
343,785

3,886
4,248
3,734
663
3
160
8,988
21,684(21,684)-

108,832
55,25351,726
22,74823,39573,91729,595
365,470(21,684)
343,785

5,325
233
4,596
1,358
(915)
(3,308)
359
7,649
(546)
7,103

Million yen
Amount13(560)

IncomeIntersegment transactions
Corporate expenses*

Total
(546)
* Corporate expenses mainly comprise general and administrative expenses not attributed to reportablesegments.
2. Segment income adjustments are based on operating income reported on the consolidated statements
of income for the corresponding period.

(2)Review of reportable segment
The Company has reviewed the method of business segment classification from the first threemonths of the fiscal year ending March 31, 2019 and has changed its reportable segments fromthe previous Ship & Offshore Structure, Rolling Stock, Aerospace, Gas Turbine & Machinery,
Plant & Infrastructure, Motorcycle & Engine, Precision Machinery, and Other Operations to
Aerospace Systems, Energy System & Plant Engineering, Precision Machinery & Robots, Ship
& Offshore Structure, Rolling Stock, Motorcycle & Engine, and Other Operations .
Consolidated segment information for the first three months of the fiscal year ended March 31,2018 has been prepared using the revised segment classification method.
(3) Impairment loss on fixed assets and goodwill by reportable segment
Not applicable
3. Other(1) Claim for damages in overseas LNG tank construction work
On a certain overseas LNG tanks construction project, overall costs increased from initially
expected due to a breach of contract by the overseas subcontractor. In July 2018, we claimed
compensation for the part of damages totaling approximately ¥40.0 billion, caused by the breachof contract. Part of the claimed amount is recorded as “Other” in current assets, which isdeducted from estimated overall costs.

15

4. Supplementary information(1) Consolidated cash flow statements (condensed)
Million yen
Three months ended
June 30, 2017
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at end of period(86,681)(27,599)
105,647
42,872

16

Three months ended
June 30, 2018
(74,195)(26,661)
89,26452,487