Report of Earnings and Financial Statements for the
Six Months Ended September 30, 2022 (Consolidated)<IFRS>
November 10, 2022
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:

November 10, 2022
December 5, 2022
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 Six Months Ended September 30, 2022
(April 1, 2022 – September 30, 2022)(1) Operating Results(Percentage figures represent changes versus the year-ago period)
RevenueSix Months Ended
September 30, 2022
Six Months Ended
September 30, 2021

Business profit

ProfitMillions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

759,745

11.6

30,83074.8

35,946143.3

24,433196.5

681,038-

17,640-14,774

-

8,241

-

Profit attributable toowners of parent
Millions of%yen
Six Months Ended
September 30, 2022
Six Months Ended
September 30, 2021

Profit before tax

Total comprehensive
incomeMillions of%yen

Basic earnings
per shareyen

Diluted earnings
per shareyen

23,763229.1

40,142223.0

141.89

-

7,220

-

12,428

-

43.17

-

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%

September 30, 2022

2,331,827

558,944

540,434

23.2

March 31, 2022

2,174,630

524,891

505,484

23.2

2. Dividends

Record date or term

End of firstquarteryen

End of second
quarter
yen

-

20.00

-

30.00

Year ended
March 31, 2022
Year ending
March 31, 2023
Year ending March 31,
2023 (forecast)

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

Full year
yen

-

20.00

40.00

-

40.00

70.00

Note: Revisions to the most recently announced dividend forecast: Yes
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, 2023
(April 1, 2022 – March 31, 2023)
Revenue

Full year

Millions ofyen
1,720,000%
14.6(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
76,000 150.3
68,000 145.7
45,000 256.1
268.69Note: Revisions to the most recently announced earnings forecast: Yes

2

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 stock)(1) Number of shares issued as of period-end (including treasury stock)
September 30, 2022:
167,921,800 shares
March 31, 2022:
167,921,800 shares(2) Number of shares held in treasury as of period-end
September 30, 2022:
439,339 shares
March 31, 2022:
449,527 shares(3) Average number of shares during respective periods
September 30, 2022:
167,473,629 shares
September 30, 2021:
167,251,505 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 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 on Thursday
November 10, 2022, 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.
Adoption of International Financial Reporting Standards (IFRS)The Group has applied the IFRS from the first quarter of the consolidated fiscal year ending March 31,
2023. Financial figures for the second quarter of the previous consolidated fiscal year and the previous
consolidated fiscal year are also presented in accordance with IFRS. The differences between IFRS andJapanese GAAP regarding financial figures, refer to “2. Condensed Quarterly Consolidated Financial
Statements and Notes (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements(First-time adoption of IFRS)” on page 19 in the Accompanying Materials.

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 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(First-time adoption of IFRS)

19
36

3. Supplementary information(1) Supplementary information on consolidated earnings forecasts for the fiscal year ending
March 31, 2023

436

1. Qualitative Information about Financial Statements
Forward-looking statements in the text are based on judgments made as of the end of this quarterly
consolidated accounting period. From the first quarter of the consolidated fiscal year, the Group
adopted the International Financial Reporting Standards (Hereinafter referred to as “IFRS”) in placeof the conventional Japanese GAAP, and the figures for the second quarter of the previous consolidated
fiscal year and the previous fiscal year have been reclassified to IFRS basis for comparative analysis.

(1) Consolidated operating results
The global economy is necessary to pay attention to the risk of an economic recession due to theeffects of inflation and monetary tightening while it has been particularly recovering in personal
consumption. In addition, it still takes time to normalize business activities in some fields even though
there are signs that supply shortages and logistics disruptions have been brought under control.
In Japan, although the COVID-19 "Seventh Wave" has shrunk and the economy continues torecover led by domestic demand such as service consumption and capital investment, it is necessary
to continue to closely monitor to the trends due to a historic depreciation of yen and a hike in prices
due to high raw materials prices.
In this business environment, the Group’s consolidated orders received during the second quarterof this consolidated fiscal year increased mainly in the Energy Solution & Marine Engineering
segment and the Motorcycle & Engine segment. Revenue increased from the same period of theprevious fiscal year as a whole, due to higher sales in the Motorcycle & Engine segment, the Aerospace
Systems segment and other segments.
Business profit increased year on year due to increases in the Motorcycle & Engine segment, theEnergy Solution & Marine Engineering segment, and the Aerospace Systems segment, despite
decreases in the Precision Machinery & Robot segment and the Rolling Stock segment. Profit
attributable to owners of parent increased mainly due to an increase in business profit as well as an
upturn in foreign exchange gains and losses.
As a result, the Group’s consolidated orders received increased by ¥207.1 billion year on year to¥866.6 billion, consolidated revenue increased by ¥78.7 billion year on year to ¥759.7 billion, businessprofit increased by ¥13.1 billion year on year to ¥30.8 billion, profit before tax increased by ¥21.1
billion year on year to ¥35.9 billion, and profit attributable to owners of parent increased by ¥16.5
billion year on year to ¥23.7 billion.

5

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

Segment Information
Segment revenue, business profit (loss), and orders received (billions of yen)Six months ended September 30

2021(A)

2022(B)

Orders received

Change (B – A)

Six months ended
September 30

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Systems

133.3

(7.6)

145.0

(3.0)

11.6

4.6

97.2

125.6

28.4

Rolling Stock

57.5

1.3

58.5

(0.0)

0.9

(1.3)

23.1

39.3

16.1

130.9

(5.6)

134.5

3.1

3.5

8.7

164.2

238.4

74.1

118.2

7.8

117.6

5.5

(0.6)

(2.3)

128.1

139.5

11.4

Engine

206.7

19.1

265.1

28.0

58.4

8.9

206.7

265.1

58.4

Other

34.0

2.0

38.8

1.8

4.7

(0.1)

40.0

58.4

18.4

-

0.5

-

(4.6)

-

(5.2)

-

-

-

681.0

17.6

759.7

30.8

78.7

13.1

659.5

866.6

207.1

2021

2022

Change(A)(B)(B – A)

Aerospace

Energy Solution& Marine
Engineering
Precision
Machinery &Robot
Motorcycle &Adjustments
Total

Notes: 1. Revenue include only sales to external customers.
2. The Motorcycle & 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 for
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, demand
for the passenger, which had been sluggish due to the spread of the infection by COVID-19 pandemic,
has been making significant progress toward recovering due to an increase the number of countries
prioritizing the resumption of economic activities.
Amid such an operating environment, consolidated orders received increased by ¥28.4 billion year
on year to ¥125.6 billion due to an increase in component parts of jet engines for commercial aircraftand orders received from the Ministry of Defense in Japan.
Consolidated revenue increased by ¥11.6 billion year on year to ¥145.0 billion due to an increasein component parts of jet engines for commercial aircraft, despite a decrease in component parts ofairframes for commercial aircraft.
Business loss came to ¥3.0 billion, improving ¥4.6 billion year on year, due to an improvement incomponent parts of jet engines for commercial aircraft, despite a deteriorating in component parts ofairframes for commercial aircraft.
Rolling StockRegarding the business environment surrounding the Rolling Stock segment, although there was an
impact of a decrease in the number of railway users due to the spread of the infection by COVID-19
pandemic, the number of the users is expected to recover with progress in measures against infection
by COVID-19 pandemic, and the replacement plan of aging railcars has been moving forward in Japanand overseas. On the other hand, although the impact on the current situation is limited, we need tokeep a close watch on shortages of electronic components, logistics disruptions, and rising raw
materials prices, while they appear to be converging. In the medium and long term, however, relatively
stable growth is expected around the world due to development of urban transportation as anenvironmental protection measure and to ease congestion in large cities caused by increasing
population concentration, as well as demand for railway infrastructure following economic
development in Asian countries.
Amid such an operating environment, consolidated orders received increased by ¥16.1 billion to¥39.3 billion compared to the same period of the previous fiscal year due to orders for the large-scale
project such as new commuter trains for the domestic market.
Consolidated revenue increased by ¥0.9 billion year on year to ¥58.5 billion mainly due to anincrease in sales of railcars for Asia, despite a decrease in sales of railcars for domestic market.
Business loss came to ¥0.0 billion, deteriorating ¥1.3 billion year on year, mainly due to the impact
of delays in the process of railcar’s project for Long Island Rail Road in the United States, despite anincrease in revenue mainly due to an increase in sales of railcars for Asia.
7

Energy Solution & Marine Engineering
The business environment surrounding the Energy Solution & Marine Engineering segment remains
on a recovery track as the global economy moves from stagnation due to the COVID-19 pandemic tonormalization. Demand for distributed power sources in Japan and overseas and, for energy
infrastructure development in emerging countries, remains strong, while there is ongoing demand forthe replacement of aging facilities for refuse incineration plants in Japan. Also, the new vessels’ market
is temporary out of a slump, as seen in increased orders for LPG/NH3 carriers. In addition, there is a
growing worldwide trend toward achieving carbon neutrality, and contacts and requests forcooperation are increasing regarding decarbonization solutions, including hydrogen products of ourCompany’s strength. On the other hand, besides the uncertainty about the current situation, such as
the availability of fuel gas required for the operation of power generation facilities, it is necessary to
pay attention to the impact on orders and revenues due to the recent persistently high prices of raw
material, equipment, fuel, and transportation.
Amid such an operating environment, consolidated orders received increased by ¥74.1 billion fromthe same period of the previous fiscal year to ¥238.4 billion mainly due to an increase in orders for
power generation facilities and LPG/NH3 carries and orders for large-scale projects such as thedomestic waste treatment facilities maintenance and operation business.
Consolidated revenue increased by ¥3.5 billion year on year to ¥134.5 billion mainly due to anincrease in the volume of work of energy business and submarines for Ministry of Defense in Japan,
despite a decrease in the volume of work of domestic waste disposal facilities.
Business profit came to ¥3.1 billion, improving ¥8.7 billion year on year, mainly due to an
improvement in share of profit and loss of investments accounted for using equity method, despite adecrease in the volume of work of domestic waste disposal facilities.
Precision Machinery & Robot
Regarding the business environment surrounding the Precision Machinery & Robot segment, in the
precision machinery field, the performance has continued to be strong in the construction machinery
market outside China, and in the Chinese construction machinery market, the demand can be seen asign of recovery due to strong export performance even though the demand was temporarily sluggish
due to the effects of lockdowns associated with the Zero-COVID-19 policy and other factors. In the
robotics field, while semiconductor manufacturers continue to make high-level capital investments,
the performance of robots for semiconductor manufacturing equipment is stay favorable as well as
general-purpose robots have continued high demand for the automation investment.
Amid such an operating environment, consolidated orders received increased by ¥11.4 billion year
on year to ¥139.5 billion, due to an increase in various robots for semiconductor manufacturing
equipment and other applications, in addition to easing the impact of lockdowns on hydraulicequipment for the Chinese construction machinery market.
8Consolidated revenue of ¥117.6 billion was on par with the previous year's result, despite anincrease in sales of various robots due to sales expansion.
Business profit decreased by ¥2.3 billion year on year to ¥5.5 billion due to a decrease in hydraulicequipment for the Chinese construction machinery market, an increase in soaring costs of electronic
components and materials, and a decrease in operations during the lockdowns.
Motorcycle & Engine
The business environment surrounding the Motorcycle & Engine segment continues to be affectedby the COVID-19 pandemic. Although logistics disruptions are heading toward improving, we needto keep a close watch on the impact on product supply due to ongoing shortages of semiconductors
and raw materials. Demand in the United States and Europe, a major market, remained strong. In
addition, the Southeast Asian market has been recovering from the previous fiscal year as a whole,although it varies by country.
Amid such an operating environment, consolidated revenue increased by ¥58.4 billion year on yearto ¥265.1 billion mainly due to an increase in motorcycles for North America and Southeast Asia, andfour-wheeled vehicles for North America, as well as a weaker yen on foreign exchange rates, despitea decrease in motorcycles for Europe due to shortage of product supply, and the transitory impact oflockdowns in China.
Business profit increased by ¥8.9 billion year on year to ¥28.0 billion due to the impact of foreignexchange rates as well as an increase in sales of both motorcycles and four-wheeled vehicles due tothe effects of the sales expansion and price increases, despite a rise in raw materials and logistics costs
and an increase in fixed costs.
Other Operations
Consolidated revenue increased by ¥4.7 billion year on year to ¥38.8 billion.
Business profit decreased by ¥0.1 billion year on year to ¥1.8 billion.
In the Group Vision 2030, the Group will focus on three fields; “A Safe and Secure RemotelyConnected Society”, “Near-Future Mobility” and “Energy and Environmental Solutions” and willtransform our business structure into a form which promises faster growth. The Group is making
steady progress in new businesses, such as the development of surgical support robots and automated
PCR testing, the development of delivery robots and unmanned transport helicopters, and thepromotion of hydrogen-related projects.

9(2) Consolidated financial condition
Assets, liabilities, and equity
1. Assets
Current assets were ¥1,459.8 billion, ¥139.6 billion increase from the previous fiscal year mainly
due to an increase in inventories.
Non-current assets were ¥871.9 billion, ¥17.5 billion increase from the previous fiscal year mainly
due to an increase in investments accounted for using equity method.
As a result, total assets were ¥2,331.8 billion, ¥157.1 billion increase from the previous fiscal year.

2. Liabilities
Interest-bearing debt was ¥667.0 billion, ¥113.1 billion increase from the previous fiscal year.
Liabilities were ¥1,772.8 billion, ¥123.1 billion increase from the previous fiscal year mainly due
to an increase in interest-bearing debt.

3. Equity
Equity was ¥558.9 billion, ¥34.0 billion increase from the previous fiscal year mainly due toincreases in exchange differences on translation of foreign operations.

Cash Flows
Cash and cash equivalents (Hereinafter referred to as “net cash”) during the second quarter of thisconsolidated fiscal year were ¥ 83.0 billion, an increase of ¥ 28.2 billion compared to the same periodof the previous fiscal year. The cash flow situations and relevant factors during the second quarter ofthis consolidated fiscal year are stated below.

1. Cash flows from operating activities
Cash outflows from operating activities were ¥ 70.0 billion, an increase of ¥ 14.1 billion comparedto the same period of the previous fiscal year. Major sources of operating cash flows included
depreciation and amortization of ¥37.5 billion. Major uses of operating cash flows included an increase
in inventories of ¥59.2 billion, an increase in advance payment of ¥27.7 billion, and an increase incontract assets of ¥20.0 billion.

2. Cash flows from investing activities
Investing activities used net cash of ¥35.4 billion, which is ¥4.7 billion more than in the same periodof the previous fiscal year, mainly due to purchase of property, plant and equipment.

3. Cash flows from financing activities
Financing activities provided net cash of ¥91.2 billion, which is ¥43.9 billion more 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
The Group voluntarily applies the IFRS from the first quarter of the consolidated fiscal year,
therefore, has calculated the consolidated earnings forecast for the fiscal year ending March 2023,
based on IFRS.
As a result of the higher sales and profits mainly due to sales expansion and price increases
particularly in the Motorcycle & Engine segment and profitability improvement in the Aerospace
Systems segment, in addition to the trend towards a weaker yen on the exchange rates, the company
is forecasting revenue of ¥1,720.0 billion, ¥30.0 billion increase from the previous forecast (August12), and business profit of ¥76.0 billion, ¥20.0 billion increase from the previous forecast.
In addition, along with the revision of business profit mentioned above, the Company is forecasting
profit before tax of ¥68.0 billion, profit attributable to owners of parent of ¥45.0 billion, ROIC of
6.6%, and ROE of 8.5%.
The forecast of consolidated orders received is expected to be ¥1,900.0 billion, ¥300.0 billion
increase from the previous forecast, mainly due to an unofficial order for a subway rolling stock project
for the New York City Transit in the United States in the Rolling Stock segment.
In this forecast, exchange rates are assumed to be ¥140 to the U.S. dollar and ¥135 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 the external environment and/or the Company’s
internal environment. Important factors that impact actual operating performance include, but are notlimited to, the economic situation surrounding the Company’s scope of business, foreign exchange
rates, in particular the yen/dollar exchange rate, tax codes and other regulatory system-related issues.

112. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Financial Position

AssetsCurrent assets
Cash and cash equivalents
Trade
other
receivables
Cashandandcash
equivalents
Contract assets
Inventories
Income equivalents
taxes receivable
cash
Other financial assets
Other current assets
cash
equivalents
Total current
assetsNon-current
assetscash equivalents
Property, plant and equipment
Intangible assets
cash
equivalents
Right-of-use
assetsInvestments accounted for using equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

Transition date
(April 1, 2021)

Millions of yen
As ofMarch 31, 2022

122,166
355,061
148,523565,860
3,482
6,660
23,1101,224,865

108,511409,246
109,132
615,476
3,046
10,60664,184
1,320,204

83,043428,811
129,131
702,408
1,829
8,734
105,908
1,459,868

449,155
62,51055,50473,464
69,913
106,430
48,835865,8142,090,679

444,375
61,94058,52470,43870,752102,20946,183
854,425
2,174,630

448,892
61,986
61,50378,44371,735104,225
45,172871,958
2,331,827

As ofSeptember 30, 2022

Liabilities and equity
Liabilitiesand equity
Liabilities
Current liabilities
Trade and other payables
Liabilities
equity and other financial liabilities
Bonds,andborrowings
Income taxes payable
Contract liabilities
Provisions
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

418,070
266,724
4,753
159,476
26,918116,244992,187

399,892
208,773
8,506
256,189
24,409161,951
1,059,723

397,886
363,205
8,707
268,513
21,072
153,931
1,213,316

478,002115,218
7,082
1,038
17,504
618,847
1,611,034

458,068
107,024
4,136
1,382
19,403590,014
1,649,738

432,702109,137
2,359
893
14,472559,566
1,772,882

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

104,484
54,542
299,409(136)
3,846
462,146
17,498479,645
2,090,679

104,484
55,525
320,671(1,129)25,931
505,484
19,407
524,891
2,174,630

104,484
55,707
341,748(1,104)
39,598
540,434
18,510558,9442,331,82712

(2) Condensed Quarterly Consolidated Statement of Profit and Loss andCondensed Quarterly Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statements of Profit and Loss
For six months ended September 30, 2022 and 2021
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

Six months ended
September 30, 2021
681,038
563,101
117,937
95,894

Earnings per share
Basic earnings per share

Six months ended
September 30, 2022
759,745619,656
140,089
109,854(7,022)

1,002

5,590
2,970
17,640741
3,607
14,774
6,533
8,241

2,438
2,846
30,8308,613
3,497
35,946
11,51324,433

7,220
1,020

23,763669

43.17

141.89For three months ended September 30, 2022 and 2021
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 (loss)
Finance income
Finance costs
Profit (loss) before tax
Income tax expense
Profit (loss)
Profit attributable to:
Owners of parent
Non-controlling interests
Earnings per share
Basic earnings (loss) per share

13

Three months ended
September 30, 2021
325,467
271,900
53,56748,803Three months ended
September 30, 2022
409,401
326,683
82,71756,285(5,974)

371

2,529
2,230
(911)
301
1,679
(2,289)1,372(3,661)812
1,378
26,237
1,100
1,996
25,341
6,702
18,639(4,239)577

18,305333(25.31)109.30Condensed Quarterly Consolidated Statement of Comprehensive Income
For six months ended September 30, 2022 and 2021
Millions of yen

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

Six months ended
September 30, 2021
8,241

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

Six months ended
September 30, 2022
24,433

789

(585)

(25)

680

(0)

(237)

763

(142)

(184)
1,358

(7,205)
20,263

2,249

2,792

3,424
4,187
12,42815,851
15,70840,142

11,1701,257

38,575
1,566

For three months ended September 30, 2022 and 2021
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

14

Three months ended
September 30, 2021
(3,661)Three months ended
September 30, 2022
18,639

626

(9)

(69)

223

1

3

558

217

56
109

(4,163)
7,952

498(1,264)664
1,222(2,438)

2,524
2,741
21,380(3,051)
613

20,705675

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
For six months ended September 30, 2021 (April 1, 2021 – September 30, 2021)
Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2021
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
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 September 30,
2021

Share capital

Capital surplus

104,484

54,542Retainedearnings

299,409
7,220

Treasury shares

Remeasurementsof defined
benefit plans

Financial assets
measured at fairvalue throughothercomprehensive
income

(136)

-

4,025

(18)
(18)

762
762

18

(130)

7,220
1,916
(1,024)111(929)

104,484

(4)
982

4
116

(1,024)18(130)

55,524

306,746(1,160)-4,657

Total equity
attributable toowners ofparentNon-controllinginterests

17,498
1,020
237
1,257

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2021
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
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 September 30,
2021

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations

(179)

-

3,846

(488)
(488)

3,693
3,693

3,949
3,949

462,146
7,220
3,949
11,170
1,916(1,024)

(111)

-

Total

(376)

Total

479,645
8,241
4,187
12,4281,916(1,024)
(376)
-

(929)
(223)

(929)

(223)

(223)

(223)

0
0

0
(334)

(0)
(260)

(166)
(542)

(166)
(802)

(890)

3,694

7,461

473,057

18,214491,27115(223)

For six months ended September 30, 2022 (April 1, 2022– September 30, 2022)
Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
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 September 30,
2022

Share capital

Capital surplus

104,484

55,525Retainedearnings

320,671
23,763

Treasury shares

Remeasurementsof defined
benefit plans

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

-

4,435

690
690

(797)
(797)

(690)

55

23,763(2)
26(0)(3,357)635

182

104,484

182

34(2,687)

24

(690)

55

55,707

341,748(1,104)-

3,693

Total equity
attributable toowners ofparentNon-controllinginterests

19,407
669
896
1,566

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
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 September 30,
2022

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations(284)

21,78025,931(8,114)(8,114)23,03323,033

14,812
14,812505,484
23,763
14,812
38,575

(635)

(2)
26
(3,357)
-

Total

182

(560)

Total

524,891
24,43315,70840,142(2)
26(3,918)
-

366

366

(2,079)(2,079)

(190)

(8)

(509)

(509)

(509)

(509)

(1,145)34(3,625)0(2,464)34(6,089)39,598

540,434

18,510558,944(8,908)44,81316(509)

(4) Condensed Quarterly Consolidated Statement of Cash Flow

Cash flows from operating activities
ProfitDepreciation 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
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
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
Proceeds from 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 fluidity of lease receivables
Repayment of payables under fluidity lease receivables
Dividends paid to non-controlling interests
Net decrease (increase) in treasury shares
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
Six months ended
Six months ended
September 30, 2021 September 30, 2022
8,241
38,018
223
1,276
7,022
441
6,533
3,141
10,369(14,324)(48,980)(53,342)(23,199)8,284(18,598)(74,892)
521
245(2,147)(7,893)(84,166)

24,43337,578248
1,851(1,002)339
11,513
1,804
4,190(20,017)(59,266)(10,805)(27,799)
3,988(24,440)(57,384)677
241(2,566)(11,000)(70,032)(29,229)
2,636(23,993)
1,763

(185)

(5,306)

705

66

(7)
489
(5,066)(30,657)(524)(3,224)(4,229)(35,449)

79,482(6,745)
11,000(13,001)
10,000(30,000)(27)
27,819(26,929)
(376)
(990)
(2,965)47,266
161(67,396)
122,166
54,769127,594(7,275)(15,000)
9,000(20,000)(3,351)
22,526(18,670)(560)
0(3,047)
91,213(11,199)(25,467)
108,51183,043

(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements

Notes on the going-concern assumption
Not applicable
Segment information
For six months ended September 30, 2021 (April 1, 2021 – September 30, 2021)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Financial costs
Profit before tax

EnergyPrecision
Solution &Machinery &MarineRobot
Engineering

Rolling
Stock

Millions of yen
Motorcycle& Engine

Other

Total

Eliminations Consolidated
and
total
corporate *2

133,360

57,598130,968

118,266

206,771

34,072

681,038-

681,038

3,573

4

7,409

7,977

358

8,526

27,849(27,849)-

136,934

57,603

138,377

126,243

207,129

42,599708,887(27,849)

681,038(7,648)1,331(5,608)

7,816

19,154

2,061

17,108531

17,640741(3,607)
14,774

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of ¥531 million include negative ¥276 million for intersegment transactions and¥808 million for general and administrative expenses not attributed reportable segments.
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 six months ended September 30, 2022 (April 1, 2022– September 30, 2022)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Financial costs
Profit before tax

EnergyPrecision
Solution & Machinery&
MarineRobot
Engineering

Rolling
Stock

Millions of yen
Motorcycle& Engine

Other

Total

Eliminations Consolidated
and
total
corporate *2

145,000

58,563

134,507

117,644

265,190

38,838759,745-759,745

4,917

7

7,357

8,742

420

10,68732,133(32,133)-

149,918

58,570141,865

126,387

265,61049,526

791,878(32,133)

759,745(3,010)

(49)

3,103

5,511

28,0791,867

35,502(4,671)30,8308,613(3,497)35,946

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of negative ¥4,671 million include negative ¥243 million for intersegment
transactions and negative ¥4,428 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

First-time adoption of IFRSThe Group disclosed its condensed quarterly consolidated financial statements in accordance withIFRS from the first quarter of the consolidated fiscal year. The most recent consolidated financial
statements prepared in accordance with Japanese GAAP are those for the consolidated fiscal year
ended March 31, 2022, and IFRS transition date is April 1, 2021.

1. Mandatory exceptions and exemption provisions under IFRS 1
In principle, IFRS requires companies that adopt IFRS for the first time to apply the standards
required by IFRS retrospectively. However, for some of the standards required under IFRS, IFRS 1
specifies standards for which the exemption is applied mandatorily and those for which the exemption
is applied voluntarily.
Items that must apply mandatory exemptions are “estimates,” “derecognition of financial assets andfinancial liabilities,” “hedge accounting,” “non-controlling interests,” and “classification andmeasurement of financial instruments,” and they are prohibited retrospective application of IFRS.
Except for “derecognition of financial assets and financial liabilities,” the Group applies the
exemptions prospectively from the transition date. “Derecognition of financial assets and financial
liabilities” is applied prospectively from the date selected by the Group.
Major exemptions adopted by the Group when transitioning from Japanese GAAP to IFRS are as
follows.
(1) Business combinations
The Group elects not to apply IFRS 3, “Business combinations” retrospectively to the businesscombinations that occurred before the date of transition to IFRS.
(2) Leases
The Group determines whether a contract existing at the date of transition to IFRS includes leases
based on the facts and circumstances existing as of that date, and the lease liability is the present valueof the remaining lease payments discounted using the lessee’s incremental borrowing rate as of thetransition date. In addition, the right-of-use asset is measured as of the transition date and is equal to
the lease liability.
(3) Exchange differences on translation of foreign operations
The Group deems the cumulative translation differences of all foreign operations to be zero at thetransition date of IFRS.
(4) Financial instruments
The designation in accordance with IFRS 9, “Financial Instruments” for financial instruments
19

recognized prior to the date of transition to IFRS is based on relevant facts and circumstances thatexisted at the date of transition to IFRS.

2. Reconciliations
In preparing the condensed quarterly consolidated financial statements based on IFRS, the Company
reconcile equity, profit and loss, and comprehensive income which previously reported in the quarterly
consolidated financial statements based on Japanese GAAP. The effects of this adjustment on theGroup’s financial condition, operating results and cash flows are as follows.
In the reconciliations below, “Reclassification” includes items that do not affect retained earnings
and comprehensive income, while “Differences in recognition and measurement” include items that
affect retained earnings and comprehensive income.

20

(1) Reconciliations of equity(i) Transition date (April 1, 2021)
Millions of yen
Line items underJapanese GAAP
AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable - trade, andcontract assets
Allowance for doubtful
accounts
Merchandise and finished
goodsWork in process
Raw materials andsupplies

Other
Total current assets
Non-current assets
Property, plant andequipment
Intangible assets
Investments and otherassetsInvestment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful
accounts
Total non-current assets
Total assets

Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

IFRS

Notes

Line items under IFRS
AssetsCurrent assets
Cash and cash equivalents
Trade and otherreceivables

126,702(4,536)-

122,166(a)429,673(102,212)

27,600355,061(b),(c),(d),(j)(3,589)

3,589

-

-

-

114,664

33,858148,523

69,223(69,223)

-

-

(e)

399,847(399,847)

-

-

(e)

138,215(138,215)

-

-

(e)

43,314
1,203,387

607,285
3,482
6,660(21,648)-(41,425)

1,443
21,477565,860
3,482
6,660
23,1101,224,865

451,259(10,564)8,460

449,155(k)22,427-(37)
10,60240,12044,90262,51055,504(k)(l)

12,721(12,721)

-

-

(g)

-

73,464-73,464

(f)

155

(155)

-

-

-

58,057

11,856

69,91381,587
165,967(120,047)

24,843
2,916

106,430
48,835(1,403)

1,403

-

-

732,715
1,936,103-

133,099
154,576865,8142,090,679

-

-

21

(c)
(d),(j)(e),(k)(a),(g)(b),(g)(c),(g),(o)(p)(f),(g)Contract assets

Inventories
Income taxes receivable
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant andequipment
Intangible assets
Right-of-use assets

Investments accounted
for using equity method
Other financial assets
Deferred tax assets
Other non-current assets(c)
Total non-current assets
Total assets

Millions of yen
Line items underJapanese GAAP
Liabilities
Current liabilities
Notes and accounts
payable - trade
Electronically recorded
obligations - operating
Short-term borrowings
Current portion of bonds
payableLease liabilities
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for
construction warranties
Provision for loss on
construction contracts

Japanese
GAAP

Reclassification

Retirement benefit
liability
Provision for thein-service issues ofcommercial aircraft jetengines
Deferred tax liabilities
Other
Total non-current
liabilities
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net
assets

IFRS

Notes

247,294

170,776-

418,070(b)

107,849(107,849)

-

-

(b)

141,579(141,579)

-

-

(h)

30,000(30,000)

-

-

(h)
(h)
(g),(h),(j),(l)1,061(1,061)---

207,395

59,328

266,724

4,753
159,476
18,239-(18,239)-

4,753
159,476-(i)

12,550(12,550)

-

-

(i)

14,367(14,367)

-

-

(i)

-

26,918-26,918

192,849(79,441)

2,836

116,244930,022-

62,165992,187

190,000
199,177
9,532(190,000)(199,177)(9,532)---421,831

56,170478,002

115,456-(238)

115,218

(n)

5,984

(5,984)

-

-

(i)

Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities

Differences inrecognition
andmeasurement(i)(b),(g),(h),(i),
(m)

(h)
(h)
(h)
(g),(h),(j),(l)

-

7,082

-

-

(87)

7,082
1,038

(i)
(p)

41,668(24,220)57

17,504(g),(n)562,944-

55,902

618,847

1,492,967-

118,067

1,611,034

104,484
54,542
266,937
(136)

-

-

104,484
54,542
299,409
(136)

(134)

-

3,980

3,846

425,693-

36,453462,146

17,442
443,135-55
36,50917,498479,645

1,936,103-

154,576

2,090,679

22

Liabilities
Current liabilities
Trade and other payables

Bonds, borrowings andother financial liabilities
Income taxes payable
Contract liabilities

Provisions
Other current liabilities
Total current liabilities
Non-current liabilities

1,125

32,472

Line items under IFRS

(r)(n),(o),(q)

Bonds, borrowings andother financial liabilities
Retirement benefit
liability

Provisions
Deferred tax liabilities
Other non-current
liabilities
Total non-current
liabilities
Total liabilities
EquityShare capital
Capital surplus
Retained earnings
Treasury shares
Other components ofequityTotal equity attributable toowners of parent
Non-controlling interests
Total equity
Total liabilities and equity

(ii) As of September 30, 2021
Millions of yen
Line items underJapanese GAAP
AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable - trade, andcontract assets
Allowance for doubtful
accounts
Merchandise and finished
goodsWork in process
Raw materials andsupplies

Other
Total current assets
Non-current assets
Property, plant andequipment
Intangible assets

Japanese
GAAP

Reclassification

60,590Differences inrecognition
andmeasurement-(5,820)Notes

Line items under IFRS

54,769(a)(b),(c),(d),(j)AssetsCurrent assets
Cash and cash equivalents
Trade and otherreceivables

IFRS

405,928(73,129)

13,545346,344(3,624)

3,624

-

-

(c)

-

108,228

54,625

162,854(d),(j)72,320(72,320)

-

-

(e)

432,986(432,986)

-

-

(e)

149,766(149,766)

-

-

(e)

102,887
1,220,856

655,073
2,847
9,062(44,811)-(41,144)

1,573
28,600613,9292,847
9,062
59,6491,249,457(a),(g)(b),(g)445,085(11,086)8,246

442,246(k)

22,113-

11,09939,78647,633

61,90058,732(k)(l)-

68,892

2

68,894(f)-

56,025

13,06569,090253,287

82,673(208,980)

24,3802,919

107,054
47,226(1,375)

1,375

-

-

719,111
1,939,967-

136,034
164,634

855,145
2,104,602-(e),(k)Contract assets

Inventories
Income taxes receivable
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant andequipment
Intangible assets
Right-of-use assets

Investments and otherassetsOther
Allowance for doubtful
accounts
Total non-current assets
Total assets-

23(c),(g),(o)(p)(f),(g)Investments accounted
for using equity method
Other financial assets
Deferred tax assets
Other non-current assets(c)
Total non-current assets
Total assets

Millions of yen
Line items underJapanese GAAP
Liabilities
Current liabilities
Notes and accounts
payable - trade
Electronically recorded
obligations - operating
Short-term borrowings

Income taxes payable
Contract liabilities
Provision for bonuses
Provision for
construction warranties
Provision for loss on
construction contracts

Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

IFRS

Retirement benefit
liability
Provision for thein-service issues ofcommercial aircraft jetengines

Other
Total non-current
liabilities
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total accumulated othercomprehensive income

Non-controlling interests
Total net assets
Total liabilities and net
assetsLine items under IFRS

Liabilities
Current liabilities
Trade and other payables

205,673

151,271-356,945(b)95,809(95,809)

-

-

(b)

177,461(177,461)---

275,22178,077353,298(h)(g),(h),(j),(l)5,361
168,456
16,827(16,827)-

5,361
168,456-(i)

11,997(11,997)

-

-

(i)

11,991(11,991)

-

-

(i)

-

23,998-23,998

243,923(136,403)

2,447

109,967

937,503-80,524

1,018,028

180,000
195,256(180,000)(195,256)---

407,523

44,835452,358

118,370-

146

118,516

(n)

4,022

(4,022)

-

-

(i)

-

5,091
1,198

30

5,091
1,229

(i)
(p)

52,654(34,535)(13)

18,105(g),(n)550,303-44,998595,302

1,487,807-

125,523

1,613,331

104,484
55,525
271,454(1,160)-(0)35,292-

104,484
55,524
306,746(1,160)

3,665

-

3,795

7,461

433,970-

39,086

473,057

18,189452,160-

24
39,111

18,214491,271

1,939,967-

164,634

2,104,602

-

Other

Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings

Notes

24

(i)
(b),(g),(h),(i),(m)

Bonds, borrowings andother financial liabilities
Income taxes payable
Contract liabilities

Provisions
Other current liabilities

Total current liabilities
Non-current liabilities(h)(h)(g),(h),(j),(l)(r)(n),(o),(q)

Bonds, borrowings andother financial liabilities
Retirement benefit
liability

Provisions
Deferred tax liabilities
Other non-current
liabilities
Total non-current
liabilities
Total liabilities
EquityShare capital
Capital surplus
Retained earnings
Treasury shares
Other components ofequityTotal equity attributable toowners of parent
Non-controlling interests
Total equity
Total liabilities and equity

(iii) As of March 31, 2022
Millions of yen
Line items underJapanese GAAP
AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable - trade, andcontract assets
Allowance for doubtful
accounts
Merchandise and finished
goodsWork in process
Raw materials andsupplies

Other
Total current assets
Non-current assets
Property, plant andequipment
Intangible assets
Investments and otherassetsInvestment securities

Retirement benefit asset

Deferred tax assets
Other
Allowance for doubtful
accounts
Total non-current assets
Total assets

Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

IFRS

Notes

Line items under IFRS
AssetsCurrent assets
Cash and cash equivalents
Trade and otherreceivables

114,469(5,957)-

108,511(a)418,625(39,268)

29,890409,246(b),(c),(d),(j)(3,908)

3,908

-

-

(c)

-

74,13035,002

109,132(d),(j)78,616(78,616)

-

-

(e)

419,954(419,954)

-

-

(e)

160,113(160,113)

-

-

(e)

109,911
1,297,781

658,684
3,046
10,606(46,465)-(43,208)739
22,423

615,476
3,046
10,60664,184
1,320,204

444,262(10,815)

10,928444,375(k)23,413-(112)
10,927

38,63847,597

61,94058,524(k)(l)

14,539(14,539)

-

-

(g)

-

70,4362

70,438

(f)

200

(200)

-

-

-

57,85812,89470,752

86,249157,668(114,921)

15,9593,437

102,20946,183(1,366)

1,366

-

-

724,967
2,022,748-

129,458
151,881854,425
2,174,630-

25(e),(k)(a),(g)(b),(g)(c),(g),(o)(p)(f),(g)Contract assets

Inventories
Income taxes receivable
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant andequipment
Intangible assets
Right-of-use assets

Investments accounted
for using equity method
Other financial assets
Deferred tax assets
Other non-current assets(c)
Total non-current assets
Total assets

Millions of yen
Line items underJapanese GAAP
Liabilities
Current liabilities
Notes and accounts
payable - trade
Electronically recorded
obligations - operating
Short-term borrowings
Current portion of bonds
payableLease liabilities

Income taxes payable
Contract liabilities
Provision for bonuses
Provision for
construction warranties
Provision for loss on
construction contracts

Japanese
GAAP

Reclassification

Retirement benefit
liability
Provision for thein-service issues ofcommercial aircraft jetengines
Deferred tax liabilities
Other
Total non-current
liabilities
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net
assets

IFRS

Notes

239,976

159,935(19)399,892(b)

104,336(104,336)

-

-

(b)

96,108(96,108)

-

-

(h)

20,000(20,000)

-

-

(h)

1,175

(1,175)---141,069

67,704

208,773

8,506
256,189
23,938(23,938)-(h)(g),(h),(j),(l)8,506
256,189-(i)

14,797(14,797)

-

-

(i)

9,602

(9,602)

-

-

(i)

-

24,409-24,409212,696(55,455)

4,709

161,951

987,328-

72,394

1,059,723

180,000
194,297
9,899(180,000)(194,297)(9,899)---404,82153,247458,068

106,803-

220

107,024

(n)

3,054

(3,054)

-

-

(i)

1,593

4,112
-

24
(210)

4,136
1,382

(i)
(p)

41,249(21,683)(162)

19,403(g),(n)536,896-

53,117590,014

1,524,225-

125,512

1,649,738

104,484
55,526285,381(1,129)-(0)35,290-104,484
55,525
320,671(1,129)34,917-(8,986)25,931

479,180-

26,303

505,484

19,342498,522-65
26,36919,407
524,891

2,022,748-

151,881

2,174,630

OtherTotal current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities

Differences inrecognition
andmeasurement

26(i)(b),(g),(h),(i),(m)Line items under IFRS
Liabilities
Current liabilities
Trade and other payables

Bonds, borrowings andother financial liabilities
Income taxes payable
Contract liabilities

Provisions
Other current liabilities
Total current liabilities
Non-current liabilities

(h)
(h)
(h)
(g),(h),(j),(l)(r)(n),(o),(q)

Bonds, borrowings andother financial liabilities
Retirement benefit
liability

Provisions
Deferred tax liabilities
Other non-current
liabilities
Total non-current
liabilities
Total liabilities
EquityShare capital
Capital surplus
Retained earnings
Treasury shares
Other components ofequityTotal equity attributable toowners of parent
Non-controlling interests
Total equity
Total liabilities and equity

(ⅳ) Notes on reconciliation of equity(Reclassification)(a) Reclassification of cash and deposits
Time deposits with maturities of more than three months, which were included in “Cash and deposits”
under Japanese GAAP, are reclassified to “Other financial assets” of current assets under IFRS.
(b) Reclassification of account receivables, electronically recorded obligations-operating, and accountpayableAccount receivables which were included in “Other” of current assets under Japanese GAAP, arereclassified to “Trade and other receivables” under IFRS. In addition, “Electronically recorded
obligations-operating,” which were presented separately, and account payable which was included in“Other” of current liabilities under Japanese GAAP, are reclassified to “Trade and other payables”
under IFRS.
(c) Reclassification of allowance for doubtful accounts“Allowance for doubtful accounts,” which was separately presented in current assets under Japanese
GAAP, is reclassified to directly deducting the item from “Trade and other receivables” etc. under
IFRS. In addition, “Allowance for doubtful accounts” which was separately presented in non-current
assets under Japanese GAAP, is reclassified to directly deducting the item from “Other financial assets”
of non-current assets.
(d) Reclassification of contract assets“Contract assets,” which were included in “Notes and accounts receivable - trade, and contract assets”
under Japanese GAAP, are presented separately under IFRS.
(e) Reclassification of inventories“Merchandise and finished goods,” “Work in process,” and “Raw materials and supplies,” whichwere presented separately under Japanese GAAP, are reclassified to “Inventories” under IFRS.
(f) Reclassification of investments accounted for using equity method“Investments accounted for using equity method,” which were included in “Other” of investments
and other assets under Japanese GAAP, are presented separately under IFRS.
(g) Reclassification of other financial assets and other financial liabilities
Derivative assets, etc. which were included in “Other” of current assets under Japanese GAAP, arereclassified to “Other financial assets” of current assets under IFRS. In addition, “Investment
securities,” which were presented separately under Japanese GAAP, and long-term accounts receivable,
27

etc. which were included in “Other” of investments and other assets under Japanese GAAP, arereclassified to “Other financial assets” of non-current assets under IFRS.
Derivative liabilities, which were included in “Other” of current liabilities under Japanese GAAP,
are reclassified to “Bonds, borrowings and other financial liabilities” of current liabilities under IFRS.
In addition, long-term accounts payable, etc. which were included in “Other” of non-current liabilities
under Japanese GAAP, are reclassified to “Bonds, borrowings and other financial liabilities” of noncurrent liabilities under IFRS.
(h) Reclassification of bonds payable, commercial paper, borrowings, and lease liabilities“Short-term borrowings,” “Current portion of bonds payable,” and “Lease liabilities,” which were
presented separately in current liabilities under Japanese GAAP, and commercial paper which was
included in “Other” of current liabilities under Japanese GAAP, are reclassified to “Bonds, borrowings
and other financial liabilities” of current liabilities under IFRS. In addition, “Bonds payable,” “Longterm borrowings,” and “Lease liabilities,” which were presented separately in non-current liabilities
under Japanese GAAP, are reclassified to “Bonds, borrowings and other financial liabilities” of noncurrent assets under IFRS.
(i) Reclassification of provisions“Provision for construction warranties,” and “Provision for loss on construction contracts,” whichwere presented separately under Japanese GAAP, are reclassified to “Provisions” of current liabilities
under IFRS. In addition, “Provision for the in-service issues of commercial aircraft jet engines,” which
was presented separately under Japanese GAAP, is reclassified to “Provisions” of non-current
liabilities under IFRS.
“Provision for bonuses,” which was presented separately under Japanese GAAP, is reclassified to“Other current liabilities” under IFRS.

(Differences in recognition and measurement)(j) Adjustments to receivables securitization transaction
Certain trade receivables that were derecognized regarding receivables securitization transaction
under Japanese GAAP, are recognized as “Contract assets” instead of being derecognized because they
do not meet the derecognition criteria under IFRS. In addition, payables associated with receivables
securitization are recognized as “Bonds, borrowings and other financial liabilities” under current andnon-current liabilities.
(k) Adjustments to property, plant and equipment, and intangible assets
Under Japanese GAAP, development expenses were treated as research and development expenses
and expensed as “Selling, general and administrative expenses” when incurred as well as a portion of28

costs related to mass production of new products and models, etc. was recorded as “Work in process.”
Under IFRS, development expenses that meet the criteria for capitalization are recorded as “Intangible
assets.” In addition, certain expenses that were expensed as “Selling, general and administrative
expenses” when incurred development expenses under Japanese GAAP are recorded as “Property,
plant and equipment” as they have the criteria for capitalization under IFRS. Furthermore, since IFRS
does not allow depreciation for asset acquisitions other than government subsidies, and records
processed using the direct depreciation method under Japanese GAAP have been canceled.
(l) Adjustments to right-of-use assets and lease liabilities
Under Japanese GAAP, except for finance lease transactions, lease payments are expensed at thetime they incurred. Under IFRS, the present value is measured based on the future lease payments at
the lease commencement date and recorded as “Right-of-use assets” and “Lease liabilities.” “Leaseliabilities” are included in “Bonds, borrowings and other financial liabilities” under current and noncurrent liabilities.
(m) Adjustments to levies
Under Japanese GAAP, expenses were recognized for items qualified as levies such as property
taxes, over the fiscal year. On the other hand, under IFRS, they are recognized as “Other current
liabilities” under current liabilities at the time the tax assessment is determined.
(n) Adjustments to employee benefit
With respect to retirement benefit liability, under Japanese GAAP, actuarial gains and losses andprior service costs were recognized in other comprehensive income as incurred, and for the amountprorated over a certain number of years within the average remaining service period of employees at
the incurrence, actuarial gains and losses were expensed from the following fiscal year of theincurrence while prior service costs were expensed from the fiscal year in which they incurred. Under
IFRS, actuarial gains and losses are recognized in other comprehensive income as incurred and
immediately reclassified to “Retained earnings.” Prior service costs are recognized in profit or loss as
incurred.
In addition, special holidays, etc. granted subject to a certain number of years of service, which were
not accounted for under Japanese GAAP, are recorded as “Other non-current liabilities” under IFRS.
(o) Adjustments to equity financial instruments
Under Japanese GAAP, unlisted shares and investments with no market value were measured using
the cost method, however, they are measured at fair value under IFRS. In addition, for equity financial
assets, gains or losses on sales and impairment losses were recognized as profit or loss under Japanese
GAAP, however, under IFRS, the changes in fair value are recognized as other comprehensive income
29when subsequent changes in fair value are designated to be presented in other comprehensive income.
(p) Adjustment to tax effects
Regarding the adoption of IFRS, “Deferred tax assets” and “Deferred tax liabilities” have increased
or decreased due to the reconsideration of the recoverability of all deferred tax assets. In addition,
under Japanese GAAP, tax effects arising from the elimination of unrealized profits and losses arecalculated using the effective tax rate of the seller, however, under IFRS, these are calculated using
the effective tax rate of the buyer.
(q) Reclassification of exchange differences on translation of foreign operations
At a first-time adoption, the Group has opted to apply the exemption provided in IFRS 1 andtransferred the entire balance of cumulative exchange differences of foreign operations to “Retained
earnings” at the transition date.
(r) Retained earnings
The impact of the above adjustments on retained earnings is as follows. (loss)
Consolidated Financial Position(k) Adjustments to property, plant andequipment, and intangible assets(l) Adjustments to right-of-use assets andlease liabilities(m) Adjustments to levies(n)Adjustments
to employee benefitCashand cash equivalents(o) Adjustments to equity financial
instruments
cashAdjustment
equivalentsto tax effects(p)(q) Reclassification of exchange
differences on translation of foreign
cash equivalents
operations
Other
cash equivalents
Adjustments on retained earnings

IFRS transition date
(April 1, 2021)(April 1, 2021) IFRS transition date

6,785

Millions of yen
As ofSeptember 30, 2021

As ofMarch 31, 2022

6,968

6,646

-

(358)

(132)

(3,402)(2,240)(1,700)(2,262)(3,395)
8,563

5,094

5,093

5,116

28,94029,952

22,262

(931)

(931)

(931)

(1,772)
32,472(1,468)35,292(2,840)35,290(April 1, 2021) date
(April 1, 2021)

cash equivalents30

(2) Reconciliations of profit or loss and comprehensive income(i) For six months ended September 30, 2021 (April 1, 2021 – September 30, 2021)
Millions of yen
Line items under Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

681,082564,582
116,500(44)(44)

96,094

Japanese
GAAP

IFRS

Notes

(1,481)
1,481

681,038
563,101
117,937(a),(c)-(199)

95,894(c)-(7,024)2(7,022)

(a)

-

394
(784)
2,861

5,590
2,970
17,640

(a)
(a)

-

-

-

5,195
3,754
(5,627)(4,545)(13,866)(1,633)
(223)
877
3,158

12,496
6,934
5,562

-

(135)
448
2,277
(401)
2,678

741
3,607
14,774
6,533
8,241

Net unrealized losses
on securities

(193)

-

982

789

(d)

Remeasurement of defined
benefit plans

214

-

(239)

(25)

(c)

-

(0)

-

(0)

(339)

-

154

(184)

2,110

-

(751)

1,358

Share of othercomprehensive incomeof associates accounted forusing equity method

2,249

0

-

2,249

Total other comprehensive
incomeComprehensive Income

4,041

-

145

4,187

9,603

-

2,824

12,428Net sales
Cost of sales
Gross profit
Selling, generaland administrative expenses

Operating profit
Non-operating income
Non-operating expenses
Extraordinary income
Extraordinary losses

Profit before income taxes
Income taxes
ProfitOther comprehensive
incomeDeferred losses on hedges
Foreign currency translation
adjustment

20,406
4,545
13,866
1,633
223

31

(a)
(a)
(a)
(a)
(a),(d)(a),(d)(b),(e)Line items under IFRSRevenue
Cost of sales
Gross profit
Selling, general andadministrative expenses
Share of profit (loss) ofinvestments accounted forusing equity method
Other income
Other expenses
Business Profit

Finance income
Finance costs
Profit before tax
Income tax expense
ProfitOther comprehensive
incomeItems that will not bereclassified to profit or loss：
Financial assets measured
at fair value through othercomprehensive income
Remeasurements ofdefined benefit plans
Share of othercomprehensive income ofinvestments accounted forusing equity method
Items that may bereclassified to profit or loss：
Cash flow hedges
Exchange differences ontranslation of foreign
operations
Share of othercomprehensive income ofinvestments accounted forusing equity method
Total other comprehensive
incomeComprehensive income

(ii) For three months ended September 30, 2021 (July 1, 2021 – September 30, 2021)
Millions of yen
Line items under Japanese
GAAP
Net sales
Cost of sales
Gross profit
Selling, generaland administrative expenses

Operating profit
Non-operating income
Non-operating expenses
Extraordinary income
Extraordinary losses

Reclassification

Differences inrecognition
andmeasurement

325,451
270,978
54,472

(24)
(421)
397

49,233

Japanese
GAAP

IFRS

Notes

40
1,343
(1,302)

325,467
271,900
53,567(a),(c)-(430)

48,803(c)-(5,974)(0)(5,974)

(a)

-

2,281
2,998
(6,294)(2,692)(9,972)

247
(768)
143

2,529
2,230
(911)

(a)
(a)

-

-

301
1,679
(2,289)1,372(3,661)

5,239
2,692
9,972
146

-

(a)
(a)
(a)
(a)
(a),(d)(a),(d)

-

(146)
304
1,435

(2,186)
2,602(4,789)

-

(3)
243
(102)
(1,230)1,127

Net unrealized gains
on securities

201

-

425

626

(d)

Remeasurement of defined
benefit plans

(79)

-

9

(69)

(c)

-

1

-

1

44

-

12

56

314

-

(205)

109

Share of othercomprehensive incomeof associates accounted forusing equity method

499

(1)

-

498

Total other comprehensive
incomeComprehensive Income

980

-

241

1,222

(3,808)-1,369(2,438)Loss before income taxes
Income taxes
Loss
Other comprehensive
incomeDeferred gains on hedges
Foreign currency translation
adjustment

32(b),(e)Line items under IFRSRevenue
Cost of sales
Gross profit
Selling, general andadministrative expenses
Share of profit (loss) ofinvestments accounted forusing equity method
Other income
Other expenses
Business Profit (loss)

Finance income
Finance costs
Profit (loss) before tax
Income tax expense
Profit (loss)
Other comprehensive
incomeItems that will not bereclassified to profit or loss：
Financial assets measured
at fair value through othercomprehensive income
Remeasurements ofdefined benefit plans
Share of othercomprehensive income ofinvestments accounted forusing equity method
Items that may bereclassified to profit or loss：
Cash flow hedges
Exchange differences ontranslation of foreign
operations
Share of othercomprehensive income ofinvestments accounted forusing equity method
Total other comprehensive
incomeComprehensive income

(iii) For consolidated fiscal year ended March 31,2022 (April 1, 2021 – March 31, 2022)
Millions of yen
Line items under Japanese
GAAP

Japanese
GAAPNet sales
Cost of sales
Gross profit
Selling, generaland administrative expenses

1,500,879
1,244,300
256,578-

210,772

Differences inrecognition
andmeasurement

IFRS

Notes

3,314
(3,314)1,500,879
1,247,615
253,263(a),(c)123239

211,134(c)-(14,289)(120)(14,410)

(a)

-

503
(3,098)
(72)

6,795
4,147
30,366

(a)
(a)

-

-

-

6,292
7,245
(15,366)(9,342)(25,213)(1,633)
(715)
4,684
4,270

30,853
6,867
23,985-(2,128)981(3,182)
5,966(9,149)

2,556
5,251
27,67012,834
14,836

Net unrealized losses on
securities

(524)

-

2,874

2,350

(d)

Remeasurement of defined
benefit plans

11,130-(848)

10,281

(c)

-

(1)

-

(1)

(337)

-

211

(125)

16,407-(2,727)

13,680Share of othercomprehensive incomeof associates accounted forusing equity method

9,218

1

-

9,220

Total other comprehensive
incomeComprehensive Income

35,895-(489)

35,40559,880-(9,639)50,241

Operating profit
Non-operating income
Non-operating expenses
Extraordinary income
Extraordinary losses

Profit before income taxes
Income taxes
ProfitOther comprehensive
incomeDeferred losses on hedges
Foreign currency translation
adjustment

Reclassification

45,805
9,342
25,213
1,633
715

-

33

(a)
(a)
(a)
(a)
(a),(d)(a),(d)(b),(e)Line items under IFRSRevenue
Cost of sales
Gross profit
Selling, general andadministrative expenses
Share of profit (loss) ofinvestments accounted forusing equity method
Other income
Other expenses
Business Profit

Finance income
Finance costs
Profit before tax
Income tax expense
ProfitOther comprehensive
incomeItems that will not bereclassified to profit or loss：
Financial assets measured
at fair value through othercomprehensive income
Remeasurements ofdefined benefit plans
Share of othercomprehensive income ofinvestments accounted forusing equity method
Items that may bereclassified to profit or loss：
Cash flow hedges
Exchange differences ontranslation of foreign
operations
Share of othercomprehensive income ofinvestments accounted forusing equity method
Total other comprehensive
incomeComprehensive income

(iii) Notes on reconciliation of profit and loss and comprehensive income(Reclassification)(a) Reclassification of presentation items
For items presented as “Non-operating income,” “Non-operating expenses,” “Extraordinary income”
and “Extraordinary losses” under Japanese GAAP, finance-related profits or losses are recorded as“Finance income” and “Finance costs”, and other items are presented as “Cost of sales,” “Other
income,” “Other expenses,” and “Share of profit (loss) of investments accounted for using equity
method,” under IFRS.
(b) Income tax expense“Income taxes - current” and “Income taxes - deferred,” which were separately presented underJapanese GAAP, are presented in total as “Income tax expense” under IFRS.

(Differences in recognition and measurement)(c) Adjustment to employee benefit
Under Japanese GAAP, actuarial gains and losses and prior service costs were recognized in othercomprehensive income as incurred, and for the amount prorated over a certain number of years within
the average remaining service period of employees at the incurrence, actuarial gains and losses were
expensed from the following fiscal year of the incurrence while prior service costs were expensed
from the fiscal year in which they incurred. Under IFRS, actuarial gains and losses are recognized inother comprehensive income as incurred and immediately reclassified to “Retained earnings.” Prior
service costs are recognized in profit or loss as incurred.

(d) Adjustments to equity financial instruments
Under Japanese GAAP, unlisted shares and investments with no market value were measured using
the cost method, however, they are measured at fair value under IFRS. In addition, for equity financial
assets, gains or losses on sales and impairment losses were recognized as profit or loss under Japanese
GAAP, however, under IFRS, the changes in fair value are recognized as other comprehensive income
when subsequent changes in fair value are designated to be presented in other comprehensive income.

(e) Adjustment to tax effects
Regarding the adoption of IFRS, “Deferred tax assets” and “Deferred tax liabilities” have increased
or decreased due to the occurrence of temporary differences and the reconsideration of therecoverability of all deferred tax assets. In addition, under Japanese GAAP, tax effects arising fromthe elimination of unrealized profits and losses are calculated using the effective tax rate of the seller,
however, under IFRS, these are calculated using the effective tax rate of the buyer.

34

(3) Adjustment to Cash Flow
Major differences between the consolidated cash flows statement based on Japanese GAAP and theconsolidated cash flows statement based on IFRS are as follows.
・Receivables securitization transactions that do not meet the criteria for derecognition of financial
assets under IFRS have been changed the classification from cash flows from operating activities tocash flows from financing activities.
・With the application of IFRS 16, lease payments under operating leases have been changed theclassification from cash flows from operating activities to cash flows from financing activities as“Repayments of lease liabilities.”
・Expenditures of development expenses that meet the criteria for capitalization under IFRS have beenchanged the classification from cash flows from operating activities to cash flows from investing
activities.

35

3. Supplementary information(1) Supplementary information on consolidated earnings forecasts for the fiscal year
ending March 31, 2023
(i)

Revenue and business profit (loss)

Reportable segment

360.0
140.0

Business
profit(loss)
10.5
1.0

350.0
140.0

Business
profit(loss)
6.0
3.0

320.0

5.5

330.0

260.0

16.0

550.0
90.0

56.0
4.0
(17.0)
76.0

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

Billions of yen
Year ended
March 31, 2022
(Fiscal 2021) (Actual)

Forecast for the year ending March 31, 2023 (fiscal 2022)
Revised forecast
Forecast issued
Change(A)
August 12, 2022 (B)(A – B)

1,720.0-

Business
profit(loss)
4.5
(2.0)

2.5

(10.0)

3.0

297.3(10.8)

260.0

14.5

-

1.5

252.6

13.9

520.0
90.0

45.0
4.0
(19.0)
56.0

30.0

11.0

-

-

447.9
78.0

30.0

2.0
20.0

1,500.8

37.5
3.1
(5.2)
30.3

Revenue

1,690.0

Revenue
10.0

Revenue

Business
profit (loss)

298.2
126.6

(10.3)
2.2(ii) Orders received

Reportable segment

Forecast for the year ending March 31, 2023 (fiscal 2022)
Revised forecast
Forecast issued
Change(A)
August 12, 2022 (B)(A – B)
300.0
280.0
20.0
300.0
80.0
220.0

Billions of yen
Year ended
March 31, 2022
(Fiscal 2021) (Actual)
383.3
71.5

Aerospace Systems
Rolling StockEnergy Solution & Marine
390.0
360.0
30.0
Engineering
Precision Machinery &
270.0
270.0
Robot
550.0
520.0
Motorcycle & Engine
30.0
90.0
90.0
Other
Total
1,900.01,600.0
300.0
Note: 1. Assumed exchange rate for the fiscal year ending March 2023: ¥140/USD, ¥135/EUR
2. The Motorcycle & Engine segment’s orders received are equal to its revenue as production is based mainly on
estimated demand.

36

343.5
271.8
447.9
84.0
1,602.1