Report of Earnings and Financial Statements for theNine Months Ended December 31, 2023 (Consolidated)<IFRS>
February 9, 2024
Listed company’s name:

Kawasaki Heavy Industries, Ltd.

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

TSE (Prime Market), and NSE (Premier Market)
7012
https://global.kawasaki.com/
Yasuhiko Hashimoto, President and Chief Executive Officer
Takashi Torii, Executive Officer, Group Manager, Corporate Communication
Group Department+81 3-3435-2130

Tel:

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

February 9, 2024
Available
Conducted (for institutional investors, analysts and thepress)(Amounts in millions of yen rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2023
(April 1, 2023 – December 31, 2023)(1) Operating Results(Percentage figures represent changes versus the year-ago period)
Revenue

Nine Months Ended
December 31, 2023
Nine Months Ended
December 31, 2022

Business profit

ProfitMillions ofyen%Millions ofyen%Millions ofyen

1,229,069

2.7

741

(99.1)(17,931)-(11,835)-

1,196,330

15.2

80,885181.4

72,127191.2

53,727314.0

Profit attributable toowners of parent
Millions of%yenNine Months Ended
December 31, 2023
Nine Months Ended
December 31, 2022

Profit before tax

Total comprehensive
incomeMillions of
%
yen

%

Millions ofyen%

Basic earnings
per shareyen

Diluted earnings
per shareyen(13,480)-

8,009(87.4)(80.48)-52,512366.8

63,600189.0313.55-1

(2) Financial Condition

Total assets

Total equity

Equity attributable toowners of parent

Millions of yen

Millions of yen

Millions of yen

Ratio of equity
attributable toowners of parent tototal assets%

As of December 31, 2023

2,663,212

589,321568,783

21.4

As of March 31, 2023

2,457,725

596,872

576,201

23.4

2. Dividends
Record date or term

End of firstquarteryen

End of second
quarteryen

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

Full year

yenYear ended
30.00
60.00
90.00
March 31, 2023
Year ending
20.00
March 31, 2024
Year ending March 31,
20.00
40.00
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)
Revenue
Millions ofyen%(Percentage figures indicate change compared with the previous fiscal year)
Profit attributable
Basic earnings
Business profit
Profit before tax
to owners ofper share
parentMillions of%Millions of%Millions of
%
yen
yen
yen
yen

Full year
1,840,000 6.6
43,000 (47.8)
21,000Note: Revisions to the most recently announced earnings forecast: Yes

2(70.1)

12,000(77.4)

71.64

Notes1. Changes affecting the status of material subsidiaries (scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates(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
3. Number of shares issued and outstanding (common shares)(1) Number of shares issued as of period-end (including treasury shares)
December 31, 2023:
167,921,800 shares
March 31, 2023:
167,921,800 shares(2) Number of shares held in treasury as of period-end
December 31, 2023:
423,200 shares
March 31, 2023:
440,255 shares(3) Average number of shares during respective periods
December 31, 2023:
167,488,925 shares
December 31, 2022:
167,476,424 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 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 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 Friday,
February 9, 2024, and to post the presentation material on quarterly financial results to be used for thepresentation on TDnet and the Company’s website simultaneously with the announcement of financial
results.

3

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 and13

Condensed Quarterly Consolidated Statement of Comprehensive Income(3) Condensed Quarterly Consolidated Statement of Changes in Equity

15(4) Condensed Quarterly Consolidated Statement of Cash Flow

17(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements

18(Notes on the going-concern assumption)

18(Segment information)

18(Other notes)

19

3. Supplementary information

20(1) Supplementary information on consolidated earnings forecasts for the fiscal year ending
March 31, 2024

420

1. Qualitative Information about Financial Statements(1) Consolidated operating results
The global economy has remained strong, mainly in personal consumption, due to favorable
employment and income conditions in the United States. On the other hand, there are concerns aboutan economic slowdown caused by the monetary tightening. Furthermore, there are increasing
uncertainties about the outlook of the global economy due to factors such as the downturn in China’s
economy caused by the prolonged real estate recession and an increase in geographical risks.
In Japan, although the economy has continued to recover due to strong corporate profits and capital
investment as well as personal consumption and inbound demand, there are concerns about the impact
on consumer sentiment due to a hike in prices in the future.
In this business environment, the Group’s consolidated orders received during the third quarter ofthis consolidated fiscal year decreased as a whole, due to decreases mainly in the Rolling Stocksegment and the Precision Machinery & Robot segment, despite an increase mainly in the Aerospace
Systems segment. Revenue increased from the same period of the previous fiscal year as a whole, due
to higher sales in the Rolling Stock segment and the Energy Solution & Marine Engineering segment,
despite lower sales in the Precision Machinery & Robot segment.
Business profit decreased year on year due to deterioration in the Aerospace Systems segment, thePowersports & Engine segment and the Precision Machinery & Robot segment, despite an increase
mainly in the Energy Solution & Marine Engineering segment. Profit and loss attributable to ownersof parent deteriorated year on year mainly due to deterioration in business profit.
As a result, the Group’s consolidated orders received decreased by ¥186.4 billion year on year to¥1,290.1 billion, consolidated revenue increased by ¥32.7 billion year on year to ¥1,229.0 billion,
business profit decreased by ¥80.1 billion year on year to ¥0.7 billion, loss before tax came to ¥17.9
billion, deteriorating ¥90.0 billion year on year, and loss attributable to owners of parent came to ¥13.4
billion, deteriorating ¥65.9 billion year on year.

5Third-quarter consolidated operating performance is summarized by segment below.

Segment Information
Segment revenue, business profit (loss), and orders received (billions of yen)
Nine months ended December 312022(A)

2023(B)

Orders received
Change (B – A)

Nine months ended December 31

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Systems

238.6

13.7

235.5

(35.5)(3.0)

Rolling Stock

92.3

0.7

135.8

2.6

212.3

9.3

234.3

179.1

7.4

Engine

413.7

Other

2022

2023

Change(A)(B)(B – A)(49.2)

200.7

332.5

131.7

43.4

1.8

294.3

41.8

(252.5)

16.6

21.9

7.3

301.8

281.2

(20.6)

158.7

(4.3)

(20.4)(11.8)

197.6

157.6

(39.9)

53.7

404.4

32.0

(9.3)

(21.7)

413.7

404.4

(9.3)

60.0

3.3

60.2

1.5

0.1

(1.8)

68.1

72.4

4.2

-

(7.4)

-

(12.1)

-

(4.7)

-

-

-

1,196.3

80.8

1,229.0

0.7

32.7(80.1)

1,476.5

1,290.1(186.4)

Aerospace

Energy Solution& Marine
Engineering
Precision
Machinery &RobotPowersports &Adjustments
Total

Notes: 1. Revenue includes only sales to external customers.
2. The Powersports & Engine segment’s orders received are equal to its revenue as production is based mainlyon estimated demand.

6

Aerospace Systems
Regarding the business environment surrounding the Aerospace Systems segment, demand from
Ministry of Defense in Japan is expected to increase going forward under the Ministry of Defense’s
policy of drastic strengthening of defense capabilities. With respect to commercial aircraft, demandfor both commercial aircraft airframes and jet engines is increasing due to the recovery of air passenger
demand to nearly pre-COVID levels and the strong COVID-19 rebound demand for commercial
aircraft airframes.
Amid such an operating environment, consolidated orders received increased by ¥131.7 billion year
on year to ¥332.5 billion mainly due to increases in orders received from Ministry of Defense in Japanand component parts of airframes for commercial aircraft.
Consolidated revenue decreased by ¥3.0 billion year on year to ¥235.5 billion mainly due to the
lump-sum recognition of losses related to the in-service issues of jet engines for commercial aircraft,despite increases in sales for Ministry of Defense in Japan and component parts of airframes and jetengines for commercial aircraft.
Business loss came to ¥35.5 billion, deteriorating ¥49.2 billion year on year, mainly due to the lumpsum recognition of losses related to the in-service issues of jet engines for commercial aircraft, despite
increases due to increases in sales for Ministry of Defense in Japan and component parts of airframes
for commercial aircraft.
Rolling StockRegarding the business environment surrounding the Rolling Stock segment, the number of railway
users has recovered due to the convergence of the infection by COVID-19 pandemic, and investments
in rolling stock are resuming both in Japan and overseas. On the other hand, although the impact on
the current situation is limited, we need to keep a close watch on shortages of electronic components,
logistics disruptions, and rising raw materials prices, while they appear to be converging. In themedium and long term, however, relatively stable growth is expected around the world due todevelopment of urban transportation in overseas markets, as well as demand for railway infrastructure
following economic development in Asian countries.
Amid such an operating environment, consolidated orders received decreased by ¥252.5 billion to¥41.8 billion compared to the same period of the previous fiscal year, when there were orders for thelarge-scale project such as new generation subway cars for the New York City Transit.
Consolidated revenue increased by ¥43.4 billion year on year to ¥135.8 billion mainly due to anincrease in sales of railcars for the United States, despite a decrease in sales of railcars for domestic
market.
Business profit increased by ¥1.8 billion year on year to ¥2.6 billion mainly due to an increase inprofit resulting from an increase in the revenue, despite a decrease in domestic operations.

7

Energy Solution & Marine Engineering
The business environment surrounding the Energy Solution & Marine Engineering segment has
been strongly influenced by the worldwide trend toward achieving carbon neutrality. As a result,contacts and requests for cooperation are increasing regarding decarbonization solutions, includinghydrogen products of the Company’s strength. Also, demand for distributed power sources in Japanand overseas and, for energy infrastructure development in emerging countries, remains strong, while
there is ongoing demand for the replacement of aging facilities for refuse incineration plants in Japan.
On the other hand, besides the uncertainty about the current situation, such as the stability of fuel gas
supply required for the operation of power generation facilities, it is necessary to pay attention to theimpact on orders and revenues due to the recent persistently high prices of raw material, equipment,
and fuel.
Amid such an operating environment, consolidated orders received decreased by ¥20.6 billion to¥281.2 billion compared to the same period of the previous fiscal year, when there were many largescale projects for the domestic waste disposal facilities maintenance and operation business and orders
for LPG/NH3 carriers, despite orders for naval ships equipment for Ministry of Defense in Japan.
Consolidated revenue increased by ¥21.9 billion year on year to ¥234.3 billion mainly due to theship & offshore structure field centered on LPG/NH3 carriers, and the energy field.
Business profit came to ¥16.6 billion, increasing ¥7.3 billion year on year, because of an increasein profit mainly due to higher sales in the ship & offshore structure field, and an increase in profit due
to higher sales in the energy field.
Precision Machinery & Robot
Regarding the business environment surrounding the Precision Machinery & Robot segment, in the
precision machinery field, while the performance has continued to be strong in the construction
machinery market outside China, demand in the Chinese construction machinery market was sluggish
due to the impact of the prolonged real estate recession and other factors. In the robotics field, sluggish
demand for robots for semiconductor manufacturing equipment bottomed out, and the demand will
recover from fiscal year 2024 while capturing new demand related to AI and green investment.
Meanwhile, business conditions in China, the biggest consumer country for the general industrial
robots, remain sluggish. Therefore, inventory adjustments have continued, but demand for automation
is surely increasing due to a rise in labor costs and labor shortages.
Amid such an operating environment, consolidated orders received decreased by ¥39.9 billion year
on year to ¥157.6 billion mainly due to the general decline in hydraulic equipment for the Chineseconstruction machinery market and industrial robots.
Consolidated revenue decreased by ¥20.4 billion year on year to ¥158.7 billion mainly due to thegeneral decline in hydraulic equipment for the Chinese construction machinery market and industrial
robots.
8

Business loss came to ¥4.3 billion, deteriorating ¥11.8 billion year on year, mainly due to the impactof lower capacity utilization as well as a decrease in the revenue.
Powersports & Engine
Regarding the business environment surrounding the Powersports & Engine segment, althoughdemand has continued to be strong in the major markets, the United States and Europe, market
competition has intensified as a result of supplies increased from manufacturers after the convergenceof the supply chain disruptions in the previous fiscal year. In addition, as recreational demand has
decreased due to the slowdown in China's economy, the mid-to-large motorcycle market has reduced
in general.
Amid such an operating environment, consolidated revenue decreased by ¥9.3 billion year on yearto ¥404.4 billion mainly due to decreases in motorcycles for China and Southeast Asia and generalpurpose engines, despite increases in four-wheeled vehicles for North America and motorcycles for
Europe.
Business profit decreased by ¥21.7 billion year on year to ¥32.0 billion mainly due to a decrease in
the revenue as well as an increase in fixed costs and the recording of recall-related expenses*, whichis related to four-wheeled vehicles for the United States.
*The Company received a notice from the U.S. Consumer Product Safety Commission that a penalty

will be imposed for the recall of certain models of four-wheeled vehicles for the United States.
Other Operations
Consolidated revenue of ¥60.2 billion was on par with the same period of the previous fiscal year's
result.
Business profit decreased by ¥1.8 billion year on year to ¥1.5 billion.
In the Group Vision 2030, the Group will focus on three fields; “A Safe and Secure Remotely
Connected Society,” “Near-Future Mobility” and “Energy and Environmental Solutions,” and ismaking steady progress in creating solutions to social issues, such as the medical and healthcare
business including surgical support robots and the commercialization of delivery robots and unmannedtransport helicopters, as well as the promotion of hydrogen business and electrification to realize acarbon neutral society at an early date.
Furthermore, the Group’s policy is to cooperate in providing supports for the early recovery of areas
affected by the Noto Peninsula Earthquake and enhance support packages that can respond to various
natural disasters, which are becoming increasingly likely in the future.

9(2) Consolidated financial condition
Assets, liabilities, and equity
1. Assets
Current assets were ¥1,710.5 billion, ¥140.2 billion increase from the previous fiscal year mainly
due to increases in inventories and trade and other receivables.
Non-current assets were ¥952.6 billion, ¥65.2 billion increase from the previous fiscal year mainly
due to an increase in property, plant and equipment.
As a result, total assets were ¥2,663.2 billion, ¥205.4 billion increase from the previous fiscal year.

2. Liabilities
Interest-bearing debt was ¥831.0 billion, ¥241.1 billion increase from the previous fiscal year.
Liabilities were ¥2,073.8 billion, ¥213.0 billion increase from the previous fiscal year mainly due
to an increase in interest-bearing debt.

3. Equity
Equity was ¥589.3 billion, ¥7.5 billion decrease from the previous fiscal year mainly due to therecording of loss attributable to owners of parent.

Cash flows
Cash and cash equivalents (Hereinafter referred to as “net cash”) during the third quarter of thisconsolidated fiscal year were ¥102.0 billion, an increase of ¥14.0 billion compared to the same periodof the previous fiscal year. The cash flow situations and relevant factors during the third quarter of thisconsolidated fiscal year are stated below.

1. Cash flows from operating activities
Cash outflows from operating activities were ¥97.9 billion, an increase of ¥15.1 billion comparedto the same period of the previous fiscal year. Major sources of operating cash flows included
depreciation and amortization of ¥61.0 billion and an increase in refund liability of ¥53.5 billion.
Major uses of operating cash flows included an increase in inventories of ¥83.1 billion and an increasein trade and other receivables of ¥58.0 billion.

2. Cash flows from investing activities
Investing activities used net cash of ¥81.1 billion, which is ¥27.8 billion more than in the same
period of the previous fiscal year. This was mainly due to purchase of property, plant and equipment.

3. Cash flows from financing activities
Financing activities provided net cash of ¥146.7 billion, which is ¥4.8 billion less than in the same
period of the previous fiscal year. This was mainly due to net increase in short-term borrowings.

10(3) Consolidated earnings forecast
With respect to the earnings forecasts for the fiscal year ending March 31, 2024, the Company
expects revenue of ¥1,840.0 billion, which has been left unchanged from the previous forecast(November 8) due to a reduction in the sales forecast in the Precision Machinery & Robot segment,
despite higher sales in the Energy Solution & Marine Engineering segment.
The Company expects business profit of ¥43.0 billion, which is ¥3.0 billion increase from theprevious forecast due to an increase resulting from an improvement in profitability in the Aerospace
Systems segment and the Energy Solution & Marine Engineering segment, despite a decrease in profit
due to a decrease in the revenue in the Precision Machinery & Robot segment and the recording ofrecall-related expenses which is related to four-wheeled vehicles for the United States in thePowersports & Engine segment.
The Company is forecasting profit before tax of ¥21.0 billion, profit attributable to owners of parentof ¥12.0 billion, after-tax ROIC of 1.5%, and ROE of 2.0%.
The forecast of consolidated orders received is expected to be ¥1,950.0 billion, which is ¥40.0
billion increase from the previous forecast due to increases in orders received from Ministry of
Defense in Japan in the Aerospace Systems segment and the domestic waste disposal facilities in the
Energy Solution & Marine Engineering segment.
The exchange rates assumed in this forecast are ¥140 to the U.S. dollar and ¥150 to the euro.

Note regarding consolidated earnings forecast
The above earnings forecast is based on information available at the time of preparation, andincludes risks and uncertainties. We therefore discourage making investment decisions depending
solely on this forecast. Please note that actual earnings may differ materially from this forecast, due toa variety of important factors stemming from changes in 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 systemrelated issues.

112. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Statement of Financial Position
Millions of yen
As of
As of
March 31, 2023
December 31, 2023
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Inventories
Income taxes receivable
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Right-of-use assets
Investments accounted for using equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds, borrowings and other financial liabilities
Income taxes payable
Contract liabilities
Provisions
Refund liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds, borrowings and other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of parent
Share capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

12

138,420
470,398
159,422
690,431551
10,741
100,385
1,570,350

102,015556,217
134,291
776,938
6,872
13,748120,481
1,710,565

451,010
66,24868,42277,44070,224110,264
43,763887,374
2,457,725

483,871
68,12664,29590,29778,086
126,593
41,375
952,646
2,663,212

452,250
340,176
18,071
256,247
22,897
10,258208,760
1,308,661

476,493572,045
8,712
241,544
30,34464,485
168,228
1,561,855

445,082
91,552
1,942
833
12,779552,190
1,860,852

399,361
94,665
1,170
829
16,008512,035
2,073,890

104,484
55,716380,255(1,107)36,852576,201
20,670596,872
2,457,725

104,484
56,433353,118(1,067)55,814
568,783
20,537589,3212,663,212

(2) Condensed Quarterly Consolidated Statement of Profit and Loss andCondensed Quarterly Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statement of Profit and Loss
For nine months ended December 31, 2023 and 2022
Millions of yen

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit of investments accounted for using equity method
Other income
Other expenses
Business profit
Finance income
Finance costs
Profit (loss) before tax
Income tax expense
Profit (loss)
Profit (loss) attributable to:
Owners of parent
Non-controlling interests
Earnings per share
Basic earnings (loss) per share

Nine months ended
December 31, 2022
1,196,330
949,501
246,828
168,807
3,935
2,818
3,890
80,885
1,363
10,12072,127
18,39953,727

Nine months ended
December 31, 2023
1,229,069
1,038,299
190,770
196,199
6,148
3,655
3,633
741
2,107
20,780(17,931)(6,095)(11,835)

52,512
1,214(13,480)
1,644

313.55(80.48)For three months ended December 31, 2023 and 2022
Millions of yen

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted for using equity
methodOther income
Other expenses
Business profit
Finance income
Finance costs
Profit before tax
Income tax expense
ProfitProfit attributable to:
Owners of parent
Non-controlling interests
Earnings per share
Basic earnings per share

13

Three months ended
December 31, 2022
436,584
329,845
106,738
58,953Three months ended
December 31, 2023
459,728
357,373
102,354
67,960

2,932

(391)

379
1,043
50,054(7,249)6,623
36,1806,886
29,294960
1,374
33,588(2,516)
14,531
16,5405,965
10,57428,749
544

9,866
708

171.6558.90

Condensed Quarterly Consolidated Statement of Comprehensive Income
For nine months ended December 31, 2023 and 2022
Millions of yen

Profit (loss)
Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments accounted
for using equity method
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

For three months ended December 31, 2023 and 2022

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments accounted
for using equity method
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

14

Nine months ended
December 31, 2022
53,727

Nine months ended
December 31, 2023
(11,835)(1,036)

2,148

528

(35)

0

1

(507)

2,114

2,146
7,794

(427)
14,585439

3,572

10,3809,872
63,60017,73019,844
8,009

62,078
1,522

5,658
2,351

Millions of yen
Three months ended
December 31, 2022
29,294Three months ended
December 31, 2023
10,574

(451)

(329)

(152)

(11)

238

0

(365)

(341)

9,352
(12,469)

6,116(6,106)(2,352)760(5,470)(5,835)23,458770
429
11,00423,502(44)

10,380623

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
For nine months ended December 31, 2022 (April 1, 2022 – December 31, 2022)
Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
Profit (loss)
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2022

Share capital

Capital surplus

104,484

55,525Retainedearnings

320,671
52,512

Treasury shares

Remeasurementsof defined
benefit plans

Financial assets
measured at fairvalue throughothercomprehensive
income(1,129)

-

4,435

538
538

(1,007)(1,007)(538)

59

52,512(3)
26(0)(8,394)479

248

104,484247

34(7,879)

23

(538)

59

55,773365,304(1,105)-

3,487

Total equity
attributable toowners ofparentNon-controllinginterests

505,484
52,512
9,565
62,078(3)
26(8,394)-

19,407
1,214
307
1,522

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
Profit (loss)
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2022

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations(284)

21,78025,931

1,546
1,546

8,488
8,488

9,565
9,565

Total

(479)

248

(561)

Total

524,891
53,727
9,872
63,600(3)
26(8,955)
-

366

366

(2,079)(2,079)

(259)

(11)

(571)

(571)

(571)

(571)

(1,050)34(8,659)0(2,532)

34(11,191)

34,445558,902

18,397577,300

690

30,26815(571)

For nine months ended December 31, 2023 (April 1, 2023 – December 31, 2023)
Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2023
Profit (loss)
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2023

Share capital

Capital surplus

104,484

55,716

Retainedearnings

380,255(13,480)

Treasury shares

Remeasurementsof defined
benefit plans

Financial assets
measured at fairvalue throughothercomprehensive
income(1,107)

-

4,109

(32)
(32)

2,107
2,107

32

202

(13,480)(5)45

0(13,430)
(234)
8

717

104,484717(13,656)

39

32

202

56,433353,118(1,067)-

6,418

Total equity
attributable toowners ofparentNon-controllinginterests

20,670
1,644
706
2,351

234

576,201(13,480)
19,1385,658(5)
45(13,430)
-

(17)

(9)

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2023
Profit (loss)
Other comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2023

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations

676

32,06636,852

1,026
1,026

16,036
16,036

19,138
19,138

Total

(17)

(581)

Total

596,872(11,835)
19,8448,009(5)45(14,012)
(9)
-

717
(393)

(393)

(393)

(1,902)(1,185)
(393)

(393)

(17)

(176)

(13,076)(2,484)(15,560)

1,309

48,08555,814

568,783

20,537589,32116

(4) Condensed Quarterly Consolidated Statement of Cash Flow

Cash flows from operating activities
Profit (loss)
Depreciation and amortization
Impairment losses
Finance income and finance costs
Share of loss (profit) of investments accounted for using equity method
Loss (gain) on sale of fixed assets
Income tax expense
Increase (decrease) in retirement benefit liability
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Decrease (increase) in advance payment
Increase (decrease) in contract liabilities
Increase (decrease) in refund liability
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Payments for equity method investment and purchase of other financial
assetsProceeds from equity method investment and sale of other financial
assetsPayments for acquisition of subsidiaries
Decrease due to loss of control over subsidiaries
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease liabilities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Dividends paid
Proceeds from factoring agreements
Repayment of liabilities under factoring agreements
Dividends paid to non-controlling interests
Payments for acquisition of subsidiary shares
not resulting in change in scope of consolidation
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

17

Millions of yen
Nine months ended
Nine months ended
December 31, 2022
December 31, 2023
53,72755,980405
3,137(3,935)518
18,3992,771(64,277)(26,589)(106,083)
26,151(29,416)
14,784(749)(24,778)
6,257(21,370)(95,068)
1,131
327(4,286)(15,221)(113,118)(11,835)
61,019568
7,763(6,148)502(6,095)
2,956(58,082)
25,099(83,160)
17,976
1,535(19,181)
53,576(25,917)(19,208)(15,328)(73,961)
1,768
358(5,557)(20,528)(97,921)(38,749)
1,981(6,241)
17(68,359)
2,400(12,203)47(6,313)

(163)

80

249

(525)
(3,224)(291)(53,266)(92)(2,988)(81,109)

177,841(10,993)
12,500(18,500)
9,000(20,000)(7,982)
47,139(32,302)(561)

269,826(12,304)
23,682(12,540)(40,000)(13,196)
27,114(84,744)
(581)

(11)

(1,195)(4,567)
151,561(5,690)(20,513)
108,51187,998(9,312)
146,748(4,122)(36,404)
138,420
102,015

(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements
Notes on the going-concern assumption
Not applicable.

Segment information
For nine months ended December 31, 2022 (April 1, 2022 – December 31, 2022)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers *1
Total revenue
Business profit(loss) *3
Finance income
Finance costs
Profit (loss) before
tax

Rolling
Stock

EnergyPrecision
Powersports
Solution &Machinery && Engine
MarineRobot
Engineering

Millions of yen
Other

Total

Eliminations Consolidated
and
total
corporate *2

238,600

92,359212,353

179,189413,788

60,0391,196,330-

1,196,330

7,273

607

10,417

13,724664

15,79348,481(48,481)-245,874

92,966

222,770

192,913414,453

75,833

1,244,811(48,481)

1,196,330

13,710

793

9,387

7,443

53,7283,317

88,380(7,495)80,885
1,363(10,120)
72,127

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of negative ¥7,495 million include negative ¥244 million for intersegment
transactions and negative ¥7,250 million for general and administrative expenses not attributed reportablesegments.
3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses,
share of profit and loss of investments accounted for using equity method, other income, and other expenses
from revenue.

For nine months ended December 31, 2023 (April 1, 2023 – December 31, 2023)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers *1
Total revenue
Business profit(loss) *3
Finance income
Finance costs
Profit (loss) before
tax

Rolling
Stock

EnergyPrecision
Powersports
Solution &Machinery && Engine
MarineRobot
Engineering

Millions of yen
Other

Total

Eliminations Consolidated
and
total
corporate *2

235,542

135,829

234,350

158,717404,422

60,2081,229,069-

1,229,069

6,977

393

16,26912,218820

17,262

53,942(53,942)-

242,519

136,222250,620

170,935

405,242

77,4701,283,012(53,942)

1,229,069(35,555)

2,637

16,699(4,368)32,011

1,514

12,938(12,196)

741
2,107(20,780)(17,931)

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of negative ¥12,196 million include negative ¥689 million for intersegment
transactions and negative ¥11,506 million for general and administrative expenses not attributed reportablesegments.
3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses,
share of profit and loss of investments accounted for using equity method, other income, and other expenses
from revenue.

18

Other notes
The recording of loss related to the in-service issues of PW1100G-JM Engine
The PW1100G-JM Engine program (Hereinafter referred to as the program), in which the Company
participates through International Aero Engines, LLC (Hereinafter referred to as IAE), a multinational
collaboration on civil aero engine, has been impacted by the challenge of managing significant inservice issues, so the Company is currently working hard with IAE to remedy this situation. As amember of this program, the Company would cover its portion of the loss associated with in-service
issues. Therefore, ¥56,247 million has been recorded on “Refund liabilities” in the condensed
quarterly consolidated statement of financial position and deducted from “Revenue” in the condensed
quarterly consolidated statement of profit and loss as a partial burden of the loss related to
Airworthiness Directives which mandated additional inspections.

19

3. Supplementary information(1) Supplementary information on consolidated earnings forecasts for the fiscal year
ending March 31, 2024
(i) Revenue and business profit (loss)

Reportable segment

Forecast for the year ending March 31, 2024 (fiscal 2023)
Revised forecast
Forecast issued
Change(A)
November 8, 2023 (B)(A – B)

390.0
190.0

Business
profit(loss)(17.0)
4.0

390.0
190.0

Business
profit(loss)(24.0)
4.0

360.0

26.0

350.0

220.0

(1.0)

590.0
90.0

47.0
2.0
(18.0)
43.0

Revenue
Aerospace Systems
Rolling StockEnergy Solution & Marine
Engineering
Precision Machinery &RobotPowersports & Engine
Other
Adjustments
Total

Billions of yen
Year ended
March 31, 2023
(fiscal 2022) (Actual)

1,840.0-

Business
profit(loss)
7.0
-

22.0

10.0

230.0

3.0

590.0
90.0

50.0
2.0
(17.0)
40.0

Revenue

1,840.0

348.8
131.9

Business
profit(loss)
14.8
1.3

4.0

314.5

3.9

(10.0)

(4.0)

252.6

8.7

-

(3.0)
(1.0)
3.0

591.1
86.3

71.5
(1.8)
(16.2)
82.3

Revenue-

Revenue

1,725.6(ii) Orders received

Reportable segment

Forecast for the year ending March 31, 2024 (fiscal 2023)
Revised forecast
Forecast issued
Change(A)
November 8, 2023 (B)(A – B)
590.0
560.0
30.0
80.0
80.0
-

Billions of yen
Year ended
March 31, 2023
(fiscal 2022) (Actual)
345.5
313.2

Aerospace Systems
Rolling StockEnergy Solution & Marine
360.0
340.0
20.0
Engineering
Precision Machinery &
230.0
240.0
(10.0)
Robot
Powersports & Engine
590.0
590.0
Other
100.0
100.0
Total
1,950.0
1,910.0
40.0
Note: 1. Assumed exchange rate for the fiscal year ending March 31, 2024: ¥140/USD, ¥150/EUR
2. The Powersports & Engine segment’s orders received are equal to its revenue as production is based mainlyon estimated demand.

20

439.0
262.0
591.1
86.4
2,037.4