Financial Results for Third Quarter FY 2010
(for the year ending March 31, 2011)

January 31, 2011
Kawasaki Heavy Industries, Ltd.

Table of Contents

I. Consolidated Results for Third Quarter FY2010
1
 Summary of Financial Results2
 Details of Change in Profit I
3
 Details of Change in Profit II4
 Financial Results by Segment
5
Ship & Offshore Structure
6
Rolling Stock
7
Aerospace
8
Gas Turbine & Machinery
9
Plant & Infrastructure
10Motorcycle & Engine
11
Precision Machinery12 Financial Condition and Cash Flows

II．Forecast for FY2010
 Consolidated Operating Performance Forecast by Segment
 R&D/CAPEX/Number of Employees(Note) Change in Segment Information
Disclosure

13
14
15
16

I. Consolidated Results for Third Quarter FY2010

Summary of Financial Results(Billion Yen / In accumulated amount)

FY2009 3Q

FY2010 3Q

ChangeOrders Received

649.9

874.0

+ 224.1

Net Sales

798.0

870.5

+ 72.4

Operating Income/Loss- 14.038.7+ 52.7

Recurring Profit/Loss

- 5.5

45.2

+ 50.7Net Income/Loss- 10.328.1+ 38.4

Yen / US$

95

88

Yen / EUR

132

115

Exchange Rates ( weighted-average )-1-

vs. FY2009 3Q< Orders Received >Significant increase as a whole mainly due tolarge-scale orders received in Rolling Stock
Segment< Net Sales >Increase as a whole due to a significant sales
increase in Precision Machinery segmentwith growth in hydraulic components sales toemerging construction machinery markets< Profits >Profit improved significantly as a whole dueto the effects of sales increase in Precision
Machinery segment and the measures toimprove profitability, such as fixed cost
reduction, in Motorcycle & Engine segment
and other factors, despite the adverse impactof the appreciation of the yen

Details of Change in Profit I- FY2010 3Q vs. FY2009 3Q (Billion Yen / In accumulated amount)【Operating Income/Loss】+ 52.7 ( FY2009 3Q - 14.0  FY2010 3Q 38.7 )Changes in product mix
and other factors+ 28.2FY2010 3Q

38.7
Cost variance based onhigh production
Decrease in selling, general &administrative expenses

+ 7.0

+ 5.7
Decrease in amortization of
net transition cost (Note)

FY2009 3Q+ 7.8- 14.0Adverse impact offluctuation offoreign exchange rate

- 12.8Impact of decline
in material priceEffects ofsales increase+ 15.7
Note: Amortization of net transition cost stemming from a change in accounting for
retirement benefits and severance costs (approx.13.0 billion yen per year) wascompleted in FY2009.

+ 1.1
-2-

Details of Change in Profit II- FY2010 3Q vs. FY2009 3Q (Billion Yen / In accumulated amount)【Non-operating Income/Expenses】- 2.0 ( FY2009 3Q 8.5  FY2010 3Q 6.4 )Net Interest expense ( incl. dividend income )Equity in income of unconsolidated subsidiaries and affiliates
Gain and loss on foreign exchange
Others【Extraordinary Income/Losses】

- 0.4
+ 2.7
- 6.1
+ 1.8

（ - 1.2  - 1.6 ）（ 4.3  7.0 ）（ 6.7  0.5 ）（ - 1.3  0.5 ）+ 6.6 ( FY2009 3Q - 7.1  FY2010 3Q - 0.5 )+ 6.9 （ - 6.9 0）- 0.3 （ - 0.2  - 0.5 ）Provision for losses on damages suit
Others-3-

Financial Results by Segment(Billion Yen / In accumulated amount)

Orders Received

Net Sales

Operating Income/Loss

FY20093Q

FY20103Q

ChangeFY20093Q

FY20103Q

ChangeFY20093Q

FY20103Q

ChangeShip & Offshore Structure

10.4

67.2

+ 56.7

111.7

93.2

- 18.5

0.8

4.9

+ 4.1

Rolling Stock

55.5

124.1

+ 68.6

110.5

95.5

- 14.9

5.2

5.9

+ 0.6

Aerospace

79.9

123.7

+ 43.7

119.3

135.0

+ 15.6

0.3

2.0

+ 1.6

Gas Turbine & Machinery

138.5

113.6

- 24.9

128.8

149.6

+ 20.7

3.9

9.6

+ 5.6

Plant & Infrastructure

98.7

105.4

+ 6.7

59.0

56.4

- 2.5

0.7

4.6

+ 3.9

Motorcycle & Engine

144.0

159.2

+ 15.1

144.0

159.2

+ 15.1- 21.1- 2.6+ 18.4

Precision Machinery

54.8

106.7

+ 51.855.4

99.0+ 43.5

0.7

14.6+ 13.9Others

67.6

73.8

+ 6.2

69.0

82.2

+ 13.2

- 0.9

1.6

+ 2.6

-

-

-

-

-

-

- 3.8

- 2.3

+ 1.5

649.9

874.0

+ 224.1

798.0

870.5

+ 72.4- 14.038.7+ 52.7

Eliminations and corporate

Total

Note I : FY2009 figures are the recalculated figures based on the new industry segmentation and the new accounting standard which have been adopted since FY2010  Refer to Page 16
Note II: “Eliminations and corporate” includes some expenses incurred at Head Office which were not allocated to each industry segment for internal reporting-4-

Ship & Offshore Structure
Main Products： LNG carriers, LPG carriers, VLCCs, Bulk carriers, Submarines, Offshore structures
Note I : Segment denomination has changed from “Shipbuilding” to “Ship & Offshore Structure” in accordance with reorganization of company structure as of October 1, 2010
Note II: FY2009 Operating Income is the recalculated figures based on the new accounting standard which has been adopted since FY2010  Refer to Page 16（Billion Yen / In accumulated amount）（Forecast in November 100.0）

Orders Received

100.0
67.2
36.4
1.8

2.7

10.4

16.1

1.6

 FY2010 3Q （ vs. FY2009 3Q ）Orders Received: Significant increase due to orders received of asubmarine and 10 bulk carriers
Net Sales: Decrease in sales of large-scale vessels
Operating Income/Loss: Income improved due to profitability
improvement and other factors, despite increase in provision for losses
on construction contracts<Units of Orders Received and Sales of New Building Ships>

1Q

2Q

3Q

FY2009

1Q

Net Sales

2Q

3Q

Orders Received

FY2010
Forecast

FY2009 3Q FY2010 3Q FY2009 3Q FY2010 3Q

LNG carriers
Small-sized LNG carriers
LPG carriers
VLCCs
Bulk carriers
Submarines（Forecast in November 120.0）

151.8
111.7
39.4

1Q

93.2

65.2

120.0

3Q

FY20091Q

2Q

3Q

FY2010
Forecast

4.9
3.3
0.8

2.0

1.5

1.0

1Q
2Q

10
1

2(2)
1(0)
10(6)
2(2)

22(16)
2(2)11

20(12)

32(24)

3Q

 FY2010 Forecast （ vs. Forecast in November ）Orders received, net sales and operating income remain unchanged

 (For Reference) Joint Venture in China（Forecast in November 1.0）

- 0.6

1

3(2)
1(1)
4(3)

61.2

Operating Income/Loss

1.4

Total

5(2)
1

Note: ( ) = Sales units by percentage-of-completion method

28.6
2Q

(unit)Sales

FY20091Q

2Q

3Q

FY2010
Forecast

NACKS was established in Nantong in December 1995, as a joint venture
between KHI and China Ocean Shipping(Group) Company, the biggest
shipping company in China and its capacity was expanded in 2008.
At NACKS, various types of commercial vessels such as very large-size
container ships, VLCCs, bulk carriers and car carriers are built by utilizing
two large-scale docks for both domestic and overseas customers under thetechnical support from KHI. (NACKS is an equity method affiliate.)-5-

Rolling Stock
Main Products : Electric train cars (incl. Shinkansen), Electric and diesel locomotives, Passenger coaches,
Platform screen doors, Gigacell (High-Capacity, Full Sealed Ni-MH Battery)
Note: FY2009 figures are the recalculated figures based on the new industry segmentation (excl. crushing machine) and the new accounting standard which have been adopted
since FY2010  Refer to Page 16（Billion Yen / In accumulated amount）（Forecast in November 180.0）

Orders Received

180.0
101.5
25.5
1Q

39.5

2Q

55.5

66.2

3Q

FY2009

1Q

117.7

124.1

2Q

3Q

（Forecast in November 145.0）

Net Sales
150.0

145.0

110.5

95.5

72.5

63.0

37.5

1Q

 FY2010 Forecast （ vs. Forecast in November ）- Orders received and net sales remain unchanged- Operating income was revised up due to improvement in profitability
by cost reduction, and other factors

26.6
2Q

3Q

FY20091Q

Operating Income/Loss

2Q

3Q

3.7

 (For Reference) The Present Status of New Overseas Projects
 North America- Working to win orders mainly for heavy rails and commuter rails- Light Rail Vehicles (LRVs) for U.S. market is currently under development
 High-speed railways- There are plans in U.S., Vietnam and other countries
 Dedicated Freight Corridor - Western Corridor Phase I (Delhi – Mumbai)- Japanese ODA project, working to win orders for electric locomotives
 E&M system projects in Asian region- Working with other companies

FY2010
Forecast（Forecast in November 7.0）

8.7

8.0
5.9

5.2
3.4

1.9
1Q

FY2010
Forecast

 FY2010 3Q （ vs. FY2009 3Q ）Orders Received: Significant increase due to large-scale orders
received of subway cars for Washington Metropolitan Area Transit
Authority
Net Sales: Decrease in sales for overseas market
Operating Income/Loss: Income increased due to profitability
improvement and other factors, despite the adverse impact of sales
decrease

1.7
2Q

3Q

FY20091Q

2Q

3Q

FY2010
Forecast-6-

Aerospace
Main Products : Aircrafts for Japan Ministry of Defense, Component parts for commercial aircrafts (BOEING , Embraer), Missiles
Note: FY2009 Operating Income is the recalculated figures based on the new accounting standard which has been adopted since FY2010  Refer to Page 16（Billion Yen / In accumulated amount）

 FY2010 3Q （ vs. FY2009 3Q ）Orders Received: Increase in orders received for component parts for
BOEING including B777 and B787
Net Sales: Increase in sales for Japan Ministry of Defense (MOD) andsales of component parts for BOEING B787
Operating Income/Loss: Income increased due to sales increase andother factors, despite the adverse impact of the appreciation of the yen（Forecast in November 210.0）

Orders Received

210.0
171.3
123.7
87.9

79.9
46.5

36.5

11.4
1Q

2Q

3Q

FY2009

1Q

2Q

3Q

215.0

188.8
135.0

119.3

83.0

73.3
34.2

26.6
2Q

3Q

FY20091Q

2Q

3Q

FY2010
Forecast

Operating Income/Loss（Forecast in November 2.0）

3.7

3.3

2.0
0.3

1Q
2Q

- 1.9

 FY2010 Forecast （ vs. Forecast in November ）Orders received, net sales and operating income remain unchanged（Forecast in November 215.0）

Net Sales

1Q

FY2010
Forecast

3Q

1Q

2Q

FY2009

3Q

- 1.8

2.0

- 1.1

FY2010
Forecast For Reference Aircrafts for Japan Ministry of Defense : The #1 test XC-2 transport aircraft
manufactured at Kawasaki’s Gifu Works completed a successful first flight in January
2010, and was delivered to MOD on March 30, 2010 at the Works after a series of inhouse testing. Also, the #2 test XC-2 transport aircraft manufactured at the Works
completed a successful first flight on January 27, 2011.
 Component parts for commercial aircrafts : A new production facility (the South
Plant) was completed in Kawasaki’s Nagoya Works 1 in March, 2010 to support
increasing production demands for the Boeing 787 Dreamliner. The South Plant isfurnished with the same kind of state-of-the-art equipment that is used in the North
Plant which an extension was completed in July 2006. The new facility will enable
Kawasaki to perform integrated production that includes everything from composite
component fabrication to forward fuselage assembly.
 Space systems : A payload fairing* for the H-IIB Launch Vehicle No.2 wasshipped in November 2010.
* Payload fairing is the enclosure for KOUNOTORI-2, unmanned cargo spacecraft loaded on

H-IIB which was successfully launched on January 22, 2011.

-7-

Gas Turbine & Machinery
Main Products : Jet engines, Gas turbine co-generation system, Gas turbines & steam turbines for marine & land,
Diesel engines, Marine propulsion system, Aero-dynamic machinery
Note: FY2009 Operating Income is the recalculated figures based on the new accounting standard which has been adopted since FY2010  Refer to Page 16（Billion Yen / In accumulated amount）（Forecast in November 220.0）

Orders Received
226.2

220.0

138.5

113.6

99.8
52.3

1Q

33.0
2Q

3Q

FY2009

1Q

65.3

2Q

3Q

（Forecast in November 210.0）

Net Sales

210.0

191.3
149.6

128.8

99.2

83.4

49.9

44.7
1Q

FY2010
Forecast

 FY2010 3Q （ vs. FY2009 3Q ）Orders Received: Decrease in orders received for component parts forcommercial aircraft jet engines that had a large order received in thesame period last year, and for gas turbine-driven natural gas
compressors
Net Sales: Increase in sales of gas turbine-driven natural gas
compressors and sales for Japan Ministry of Defense
Operating Income/Loss: Income increased due to sales increase, andother factors

2Q

3Q

FY20091Q

2Q

3Q

 FY2010 Forecast （ vs. Forecast in November ）- Orders received and net sales remain unchanged- Operating income was revised up due to cost reduction, and otherfactors

FY2010
Forecast<Summary of Major Projects for Commercial Aircraft Jet Engines>
Aircraft

V2500
A320 and others

Trent1000
B787

TrentXWB
A350

Participation Type

Full Partner

RRSP（※)RRSP（※)

Share

Approx. 6%

Approx. 8.5%

Approx. 7%（Forecast in November 9.0）

Operating Income/Loss

9.6

8.9

10.0

6.1
4.0

3.9
1.2

1.4

1Q

2Q

3Q

FY20091Q

Responsible
Components
2Q

3Q

（※）

FY2010
Forecast-8-

Intermediate
Intermediate
Fan case, vane, disc,pressurepressure
low-pressure compressor blade compressor (IPC) compressor (IPC)
modulemoduleRisk & Revenue Sharing Partner

Plant & Infrastructure
Main Products: Industrial plants (cement, chemical and others), Power plants, LNG & LPG tanks, Municipal refuse incineration plants, Shield machines, Crushing machines
Note: FY2009 figures are the recalculated figures based on the new industry segmentation (incl. crushing machine) and the new accounting standard which have been adopted
since FY2010  Refer to Page 16（Billion Yen / In accumulated amount）（Forecast in November 130.0）

Orders Received
135.6

 FY2010 3Q （ vs. FY2009 3Q ）Orders Received: Increase in orders received for various types ofplants in both domestic and overseas markets
Net Sales: Decrease in large-scale projects for overseas customers
Operating Income/Loss: Income increased due to steady progress insome projects

130.0
105.4

98.7
77.3
37.5

32.0

15.8
1Q

2Q

3Q

FY2009

1Q

2Q

3Q

107.5
43.3

100.0

59.0
20.4

16.5
2Q

3Q

FY20091Q

Operating Income/Loss

38.8

2Q

56.4

3Q

9.0
3.5

1.7
1Q

2Q

0.7
3Q

 (For Reference) Joint Ventures in China
In 2006, KHI started a joint venture with Anhui Conch Cement Company
Ltd., China’s largest cement manufacturer. KHI has established three joint
ventures for the time being and set up an integrated system in China
encompassing the design, production, sales and after-sale services of waste
heat recovery power generation systems for cement plants and cement
producing facilities (Pre-heaters, Rotary Kilns and Roller Mills) withsophisticated technologies it has accumulated. KHI will contribute further tobring technologies such as a waste gasification system that can be integrated
with cement kilns and a membrane sewage treatment system, for environment
and energy conservation in China.

FY2010
Forecast（Forecast in November 8.0）

7.9

- 0.5

 FY2010 Forecast （ vs. Forecast in November ）- Orders received and net sales remain unchanged- Operating income was revised up due to improvement in profitability
by steady progress in some projects（Forecast in November 100.0）

Net Sales

1Q

FY2010
Forecast

4.6

0.2
FY20091Q

2Q

3Q

FY2010
Forecast-9-Motorcycle & Engine
Main Products: Motorcycles, All-Terrain Vehicles(ATVs), Utility Vehicles, Personal Watercraft, General-purpose Gasoline Engines
Note: FY2009 figures are the recalculated figures based on the new industry segmentation (excl. industrial robots) and the new accounting standard which have been adopted
since FY2010  Refer to Page 16（Billion Yen / In accumulated amount）（Forecast in November 250.0）

Net Sales

240.0

203.0
159.2

144.0

113.2

100.9

65.1

58.0

1Q

2Q

3Q

FY20091Q

2Q

3Q

FY2010
Forecast

Operating Income/Loss
1Q

2Q

3Q

FY2009

- 3.9

0.7

2Q

3Q

FY2010
Forecast

1Q

- 1.1

- 2.6

- 4.0

- 13.3（Forecast in November - 4.0）

- 21.1- 27.0＜Wholesales by Geografic Area for Consumer Products＞
FY2009 3Q
FY2009Unit
AmountUnit
AmountDomestic
13
10.2
17
12.9
North Ame rica (incl. Canada )60(37)
42.1 80(49)56.3Europe
49
39.1
72
56.2
Emerging Countries & Others
159
31.9
228
45.1
Total
281
123.3
397
170.5

(Thousands of unit / Billion Yen)FY2010 3Q
FY2010 Forecast
Unit
AmountUnit
Amount
10
8.2
16
12.4
73(37)
53.2 121(70)
77.4
43
30.0
67
46.9
195
43.8
284
62.1
321
135.2
488
198.8

Note: 1) Sales un its and amount include th e following products.
Un its: M otorcycles, All-Terrain Vehicles (ATVs), Utility Vehicles and Personal Watercraft(J et Ski)
Amount: The products m entioned above and p arts for those p roducts.
2 ) Figures in the p arenthesis ( ) represent motorcycle sales units.

 FY2010 3Q （ vs. FY2009 3Q ）Net Sales: Sales increase in Asian and other emerging countries, andother factors
Operating Income/Loss: Losses reduced significantly due to sales
increase and the effects of business restructuring measures
implemented through the previous fiscal year and other factors,
despite the adverse impact of the appreciation of the yen FY2010 Forecast （ vs. Forecast in November ）- Net sales was revised down due to slower-than-expected recovery of
motorcycle demand in U.S. and European markets and the adverse
impact of the appreciation of the yen- Operating income/loss remains unchanged because the effects ofimprovement in profitability in Asian and other emerging markets
offset the adverse impact of sales decrease in U.S. and European
markets and the appreciation of the yen For Reference- A joint venture, CK&K, was established in China with Kwang Yang Motor Co.,
Ltd.(KYMCO) of Taiwan for production and sales of general-purpose gasoline
engines. Production started in January 2010. (CK&K is an equity method affiliate.)- New subsidiary, IKM, was established in India on July 1, 2010 to import and sell
motorcycles.

- 10 -

Precision Machinery
Main Products： Hydraulic components (pumps, motors & valves), Hydraulic systems for industrial use, Hydraulic marine machinery, Industrial Robots
Note: FY2009 figures are the recalculated figures based on the new industry segmentation (incl. industrial robots) and the new accounting standard which have been adopted
since FY2010  Refer to Page 16（Billion Yen / In accumulated amount）（Forecast in November 140.0）

Orders Received

150.0
106.7

84.9
13.1
1Q

32.8

2Q

54.8

3Q

68.0
35.0

FY20091Q

2Q

3Q

FY2010
Forecast（Forecast in November 130.0）

Net Sales

140.0
99.0

82.7
16.5
1Q

34.2

2Q

60.9

55.4
27.8
3Q

FY20091Q

2Q

3Q

FY2010
Forecast（Forecast in November 15.0）

Operating Income/Loss

18.0
14.6
8.6
1Q

2Q

0.7

- 0.3

- 0.6

3Q

3.4

3.9

FY20091Q

2Q

3Q

FY2010
Forecast

 FY2010 3Q （ vs. FY2009 3Q ）Orders Received : Increase in orders received for hydrauliccomponents for construction machinery in emerging countries
Net Sales: Increase in sales of hydraulic components for construction
machinery and industrial robots for manufacturers of semiconductor
production equipments
Operating Income/Loss: Income improved due to improvement in
profitability by sales growth and increased capacity utilization
 FY2010 Forecast （ vs. Forecast in November ）- Orders received and net sales were revised up due to increase in
hydraulic components for construction machinery in emerging
countries- Operating income was revised up due to the effects of sales increase
and cost reduction, and other factors
 （For Reference） Businesses Development in China
In August 2006, production of hydraulic pumps started at Chinese subsidiary in
Suzhou to meet the increasing demand in China. Also, in Zhejiang, a joint venture of
hydraulic machinery manufacturing was established with a Chinese company andproduction started in April 2010. In order to provide the products manufactured at
the above two manufacturing companies to customers throughout China, a sales
subsidiary was established in Shanghai and its operation started in April 2010.
Through establishment of the subsidiaries and a joint venture, we have consolidated
our operating system to enhance our presence in Chinese construction machinery
market in which a tremendous growth potential is expected, and to further expand
and deepen our business operations.

- 11 -

Financial Condition and Cash Flows【Financial Condition】(Billion Yen)

FY2009End of March 2010

End of December 2010

1,352.4

1,399.9

Shareholders’ Equity

277.0

291.1

（Ratio of shareholders’ equity to total assets）(20.4%)(20.7%)

Interest-bearing debt

428.9

525.0

（Net Interest-bearing debt）（394.1）(486.9)Net Debt Equity Ratio

142%

167%

Total Assets

FY2010Note: Interest-bearing debt includes lease obligations【Cash Flows】（Billion Yen / In accumulated amount）

FY2009 3Q

FY2010 3Q

Cash flows from operating activities- 98.7- 33.5

Cash flows from investing activities- 52.6- 41.5

Free Cash Flows- 151.3- 75.0Cash flows from financing activities

151.6

78.0

- 12 -

II. Forecast for FY2010

Consolidated Operating Performance(Billion Yen)

FY2009FY2010 Forecast

vs. Forecast in November

Change< Orders Received & Net Sales >Actualin November

in January

vs. FY2009

vs. Forecast
in November

Orders Received

1,001.2

1,340.0

1,340.0+ 338.7

0

Net Sales

1,173.4

1,280.0

1,280.0+ 106.50Operating Income/Loss

- 1.3

32.0

40.0

+ 41.3+ 8.0

Recurring Profit/Loss

14.2

32.0

46.0

+ 31.7+ 14.0Net Income/Loss- 10.820.0

29.0+ 39.8+ 9.0

Exchange Rates (actual & assumed)

Yen / US$

93

83

83

Yen / EUR

130

115

110

Note : Assumed rates are applied to the outstanding foreign exchange exposure as of the respective disclosure date

(For Reference)

Impact on profit by FX fluctuation of 1 yen(Billion Yen)

US$
EUR

Operating Recurring
IncomeProfit
2.0
2.0
0.3
0.1

- 13 -

Orders received and net sales remainunchanged because the amount of decreasein Motorcycle & Engine segment that is
affected by slow recovery of motorcycle
demand in U.S. and European markets
offsets the increased amount in Precision
Machinery segment with growth inhydraulic components sales to emerging
construction machinery markets< Profits >- Profits were revised up due to the effectsof sales increase in Precision Machinery
segment by active business development,
and the company-wide measures toimprove profitability, such as fixed cost
reduction and improvement inproductivity- The amount of increase in recurring profit
exceeds that of operating income due tothe increase in equity in income ofunconsolidated subsidiaries and affiliates,
decrease in interest expense and otherfactors

Forecast by Segment(Billion Yen)

Orders Received
FY2009ActualNet Sales

FY2010 Forecast
in November

in January

FY2009ActualOperating Income/Loss

FY2010 Forecast

FY2009in November

in January

Actual

FY2010 Forecast
in November

in January

Ship & Offshore Structure

16.1

100.0

100.0

151.8

120.0

120.0

1.5

1.0

1.0

Rolling Stock

66.2

180.0

180.0

150.0

145.0

145.0

8.7

7.0

8.0

Aerospace

171.3

210.0

210.0

188.8

215.0

215.0

3.7

2.0

2.0

Gas Turbine & Machinery

226.2

220.0

220.0

191.3

210.0

210.0

8.9

9.0

10.0

Plant & Infrastructure

135.6

130.0

130.0

107.5

100.0

100.0

7.9

8.0

9.0

Motorcycle & Engine

203.0

250.0

240.0

203.0

250.0

240.0

- 27.0

- 4.0

- 4.0

Precision Machinery

84.9

140.0

150.0

82.7

130.0

140.0

3.4

15.0

18.0

Other

97.5

110.0

110.0

97.8

110.0

110.0

- 1.0

1.0

2.0

-

-

-

-

-

-

- 7.5

- 7.0

- 6.0

1,001.2

1,340.0

1,340.0

1,173.4

1,280.0

1,280.0

- 1.3

32.0

40.0

Eliminations and corporate
Total

Note I : FY2009 figures are the recalculated figures based on the new industry segmentation and the new accounting standard which have been adopted since FY2010  Refer to Page 16
Note II: “Eliminations and corporate” includes some expenses incurred at Head Office which are not allocated to each industry segment for internal reporting- 14 -

R&D/CAPEX/Number of Employees(Billion Yen / Persons)

FY2009Actual

FY2010
Forecast

ChangeR&D Expenses

38.0

40.5

+ 2.4

CAPEX
(Construction Base)

59.2

70.0

+ 10.8Depreciation & Amortization

51.4

51.0

- 0.4

Domestic

24,396

24,600+ 204

Overseas

7,901

8,100

+ 199

32,29732,700+ 403

Number of Employees- 15 -

(Note) Change in Segment Information Disclosure＜Change in Industry Segment and Segment Denomination＞
Industry segment and segment denomination have been changed as stated below, in accordance with the newindustry segmentation for internal reporting which has been adopted since April 2010.
Change in Industry Segment
Crushing Machine business unit :(Previous) “Rolling Stock segment”  (Current) “Plant & Infrastructure Engineering segment”* “Plant & Infrastructure segment” as of October 1, 2010

Industrial Robots business unit :(Previous) “Consumer Products & Machinery segment”  (Current) “Precision Machinery segment”
Change in Segment Denomination（Previous) “Consumer Products & Machinery segment”  (Current) “Motorcycle & Engine segment”(Previous) “Hydraulic Machinery segment”  (Current) “Precision Machinery segment”＜Application of New Financial Accounting Standard for Segment Information Disclosure＞
With the previous accounting standard, operating income by industry segment was presented with reflecting
re-allocation of some expenses incurred at Head Office which were not allocated to each segment for internalreporting.
However, as a new accounting standard adopting "Management Approach" has applied since FY 2010 in Japan,such expenses will not have been re-allocated to each segment.
Accordingly, for the readers' convenience, recalculated FY2009 operating income based on the new accounting
standard is presented on certain pages of this material to easily compare with the financial results for the previous
fiscal year.
- 16 -

Kawasaki,
Working as One for the Good of the Planet

Cautionary Statement
The performance outlook and the forecasts stated in this material were prepared by Kawasaki Heavy Industries, Ltd.
(hereinafter, KHI) based on the circumstances at the release point, and include potential risks and uncertain factorsthat relate to economic conditions, foreign currency exchange rates, tax rules, regulations and other factors.
Accordingly, please note that the actual operating results, financial position, and business deployment of KHI
may sometimes differ considerably from the descriptions in the present projections.