Financial Results for Third Quarter FY 2011
(for the year ending March 31, 2012)

January 31, 2012
Kawasaki Heavy Industries, Ltd.

Table of Contents

I. Consolidated Results for Third Quarter FY2011
 Summary of Financial Results1 Details of Change in Profit I
2
 Details of Change in Profit II3
 Financial Results by Segment
4
Ship & Offshore Structure
5
Rolling Stock6
Aerospace
7
Gas Turbine & Machinery
8
Plant & Infrastructure
9Motorcycle & Engine
10
Precision Machinery11 Financial Condition and Cash Flows
12

II．Forecast for FY2011
 Consolidated Operating Performance Forecast by Segment
 R&D/CAPEX/Number of Employees

13
14
15

I. Consolidated Results for Third Quarter FY2011

Summary of Financial Results(Billion Yen)FY2010.3Q

FY2011.3Q

Orders Received

874.0

782.1

- 91.9Net Sales

870.5

906.3

+ 35.7

Operating Income

38.7

47.2

+ 8.5

Recurring Profit

45.2

58.1

+ 12.8Net Income

28.1

33.6

+ 5.5

Yen / US$

88

79

Yen / EUR

115

112

Exchange Rates ( weighted-average )-1-

vs. FY2010.3Q

Change< Orders Received >Decreased as a whole mainly due to decreasein orders received in Rolling Stock, Ship &Offshore Structure and Plant & Infrastructure
segments, despite increase in orders received in
Gas Turbine & Machinery and Precision
Machinery segments< Net Sales >Increased as a whole because a sales increasein Precision Machinery, Plant & Infrastructure
and Aerospace segments exceed a sales decrease
in Gas Turbine & Machinery, Ship & Offshore
Structure and Motorcycle & Engine segments< Profits >Increased as a whole because the effects of sales
increase in Precision Machinery, Plant &Infrastructure and Aerospace segments and otherfactors exceed the adverse impact of theappreciation of the yen

Details of Change in Profit I- FY2011.3Q vs. FY2010.3Q 【Operating Income】+ 8.5 ( FY2010.3Q 38.7  FY2011.3Q 47.2 )Improvements andother factors+ 21.9FY2010.3Q
38.7

Adverse impact offluctuation offoreign exchange rate

- 22.2
Effects ofsales increase
Increase in selling, general & Impact of decline
administrative expenses
in material price

- 5.7

+ 3.3

-2-

+ 11.2(Billion Yen)FY2011.3Q
47.2

Details of Change in Profit II- FY2011.3Q vs. FY2010.3Q (Billion Yen)

【Non-operating Income/Expenses】+ 4.3 ( FY2010.3Q 6.4  FY2011.3Q 10.8 )Net Interest expense ( incl. dividend income )Equity in income of unconsolidated subsidiaries and affiliates
Gain and loss on foreign exchange
Others【Extraordinary Income/Losses】

+ 0.2
0
+ 2.1
+ 1.9

( - 1.6  - 1.4 )( 7.0  7.1 )( 0.5  2.7 )( 0.5  2.4 )- 0.3 （ FY2010.3Q - 0.5  FY2011.3Q - 0.9 )※Loss on impairment of fixed assets
Effect of application of accounting for asset retirement obligations
Bad debt expense for doubtful accounts of affiliates
※

- 0.9
+ 0.2
+ 0.2

Loss on impairment of idle assets whose book values were written down to the recoverable amounts-3-(0  - 0.9 )( - 0.2 0)( - 0.2 
0)Financial Results by Segment(Billion Yen)

Net Sales

Orders Received

Operating Income/Loss

FY20103Q

FY2011
3Q

ChangeFY20103Q

FY2011
3Q

ChangeFY20103Q

FY2011
3Q

ChangeShip & Offshore Structure

67.2

36.9

- 30.3

93.2

87.1

- 6.1

4.9

4.1

- 0.8

Rolling Stock

124.1

49.9

- 74.2

95.5

94.6

- 0.9

5.9

4.9

- 1.0

Aerospace

123.7

114.1

- 9.5

135.0

138.5

+ 3.5

2.0

5.9

+ 3.8

Gas Turbine & Machinery

113.6

123.3

+ 9.6

149.6

137.0

- 12.5

9.6

8.0

- 1.6

Plant & Infrastructure

105.4

84.0

- 21.3

56.4

78.7+ 22.2

4.6

8.8

+ 4.1

Motorcycle & Engine

159.2

154.2

- 4.9

159.2

154.2

- 4.9

- 2.6

- 4.5

- 1.9

Precision Machinery

106.7

131.1

+ 24.4

99.0

129.0

+ 30.0

14.6

20.7

+ 6.0

Other

73.8

88.2

+ 14.3

82.2

86.7

+ 4.4

1.6

3.3

+ 1.6

-

-

-

-

-

-

- 2.3

-4.0

- 1.7

874.0

782.1

- 91.9

870.5

906.3

+ 35.7

38.7

47.2

+ 8.5

Eliminations and corporate

Total

Note : “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（Billion Yen / In accumulated amount）

Orders Received（Forecast in November 60.0）

67.2

78.9
60.0

36.4
17.0

24.6

36.9

 FY2011.3Q ( vs. FY2010.3Q )Orders Received: Orders received of a small-sized LNG carrier, a LPG
carrier and 6 bulk carriers
Net Sales: Decrease in sales of large-scale vessels such as LNG carriers
Operating Income: Decreased due to the effect of sales decrease, the adverse
impact of the appreciation of the yen and materials price rise
<Units of Orders Received and Sales of New Building Ships>

1.6

Orders Received
FY2010.3Q

1Q

2Q

3Q

FY2010

1Q

2Q

3Q

LNG carriers
Small-sized LNG carriers
LPG carriers
VLCCs
Bulk carriers
Submarines
Total（Forecast in November 110.0）

Net Sales
118.4

110.0

93.2

87.1

61.2

53.1

28.6

1Q

FY2011
Forecast

27.7

2Q

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast

FY2011 .3Q FY20 10.3Q

1
1
10
1
11

6
8

(un it)Sales
FY2011.3Q

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

2(1)
2(1)
2(1)

22(16)
2(2)32(24)

21(14)
2(2)29(19)

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

 FY2011 Forecast ( vs. Forecast in November )Orders Received & Net Sales: Remain unchanged because of no significant
changeOperating Income/Loss: Remains unchanged due to cost reduction andmaterials price decline and other factors, despite the adverse impact of theappreciation of the yen<For Reference> Joint Venture in China

Operating Income/Loss
4.9
3.3

4.1

2.0
FY2010

1Q

2Q

3Q

- 1.0

0.9

0.5

1Q

2Q

FY2011
Forecast
3Q- 4.0（Forecast in November - 4.0）

NACKS was established in December 1995, as a fifty-fifty joint venture between KHI and
China Ocean Shipping(Group) Company (COSCO), one of the world’s largest shipping
company, and its capacity was expanded in 2008. (NACKS is an equity method affiliate) At
NACKS, various types of commercial vessels are built for domestic shipping company suchas COSCO as well as for Japanese and European customers. As a parent company of
NACKS, KHI also supports DACOS, which was established by NACKS and COSCO Groupin July 2007. The first ship was delivered in September 2011 at DACOS.
Under close partnership between KHI and COSCO groups, KHI is working on expansion of
its operations and strengthening its earning power.

-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)（Billion Yen / In accumulated amount）

Orders Received
187.1
101.5

117.7

（Forecast in November 150.0）

124.1

110.0
22.6

1Q

2Q

3Q

FY2010

1Q

42.1

49.9

2Q

3Q

（Forecast in November 130.0）

Net Sales
131.1

130.0

95.5

94.6

63.0

55.3

26.6
1Q

FY2011
Forecast

25.8
2Q

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast

Operating Income/Loss（Forecast in November 6.0）

8.1

7.0

5.9

4.9

3.4
1.7
1Q

0
2Q

3Q

FY2010

1Q

1.1
2Q

3Q

FY2011
Forecast

 FY2011.3Q ( vs. FY2010.3Q )Orders Received: Decrease in large-scale orders received for overseas
marketNet Sales: Remained the same level as in the previous third quarter becauseof sales increase for overseas market, despite sales decrease for domestic
marketOperating Income: Decreased due to the adverse impact of the appreciationof the yen and other factors
 FY2011 Forecast ( vs. Forecast in November )Orders Received: Revised down due to the effect of order deferrals indomestic and overseas markets
Net Sales: Remains unchanged because of no significant change
Operating Income: Revised up due to cost reduction and other factors,
despite the adverse impact of the appreciation of the yen<For Reference> Present Status of New Overseas Projects
North America :- Working to win orders mainly for heavy rails and commuter rails- Extension of product lineup such as efSET® and K-Star Express® to meet demand for
Medium- to High-speed rail projects
High-speed railways :- KHI self-developed efSET® (Environmentally Friendly Super Express Trains), a new
high-speed train that will achieve maximum service speed of 350km/h to satisfy demandfor overseas markets, and completed principle designs by the end of March 2010.
- California High-speed Rail: Working with other Japanese companies aiming to win E&M
system including rail cars.
- There are plans in India, Vietnam and other countries.
E&M System Projects in Asian region : Taichung City Railway System - Won the package
contract of 36 cars and E&M system in March 2011 under cooperation with other companies.
KHI as a leader of consortium will play its role to oversee the whole project and system
integration as well as supply the cars and rail yard facilities.

-6-

Aerospace
Main Products : Aircrafts for Japan Ministry of Defense, Component parts for commercial aircrafts (Boeing , Embraer), Missiles（Billion Yen / In accumulated amount）（Forecast in November 280.0）

Orders Received

300.0
206.7

87.9

123.7

114.1

FY2010.3Q FY2011.3Q
47
63
10
19
B787
18
18
Embraer170/175
1110
Embraer190/195
64
73

67.5

36.5
1Q

 FY2011.3Q ( vs. FY2010.3Q )Orders Received: Decrease in orders received for Japan Ministry of Defense(MOD)
Net Sales: Increase in sales of component parts for Boeing including B777
Operating Income: Increased due to sales increase, cost reduction and other< Sales units of component parts for commercial aircrafts >factors(unit)
B777
B767

30.6
2Q

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast

 FY2011 Forecast ( vs. Forecast in November )（Forecast in November 220.0）

Net Sales

220.0

196.8
138.5

135.0
87.4

83.0
40.0

34.2
1Q

2Q

3Q

FY2010

1Q

2Q

1Q

- 1.8

3.0

2Q

- 1.1

FY2011
Forecast（Forecast in November 5.0）

Operating Income/Loss

2.0

3Q

5.9

6.0

3Q

FY2011
Forecast

3.0
1Q

3Q

FY2010- 0.8

2Q

Orders Received: Revised up due to increase in orders received for MOD
Net Sales: Remains unchanged because of no significant change
Operating Income: Revised up due to cost reduction of the component partsfor commercial aircrafts and other factors, despite the adverse impact of theappreciation of the yen<For Reference> Present Status of Main Projects
Aircrafts for MOD :The #2 test XC-2 transport aircraft was manufactured at Kawasaki’s Gifu Works anddelivered to MOD on March 29, 2011 at the Works. KHI will continue to work towardcommencement of the mass production.
Component parts for commercial aircrafts :B777 - According to the production rate increase for Boeing B777 program announced byBoeing, KHI’s production rate for the program has increased to 7 units per month from thesecond half of FY2010. During FY2012, the production rate is expected to increase up to 8.3
units per month.
B787 – In September 2011, the first Boeing B787 was delivered to the airline by Boeing andregular flight service with B787 was started from November 1, 2011. KHI has completed the
production system at Kawasaki’s Nagoya Works 1 for ramp-up production.

-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（Billion Yen / In accumulated amount）

Orders Received（Forecast in November 230.0）

230.0
187.5
123.3

113.6
33.0
1Q

79.7

65.3

2Q

31.3
3Q

FY2010

1Q

Net Sales

2Q

3Q

FY2011
Forecast（Forecast in November 210.0）

210.0

202.6
149.6

137.0

99.2
49.9

45.5

 FY2011.3Q ( vs. FY2010.3Q )Orders Received: Increase in orders received for gas engine power plant
Net Sales: Decrease in sales of gas turbine-driven natural gas compressors
and sales for Japan Ministry of Defense
Operating Income: Decreased due to sales decrease and other factors
 FY2011 Forecast ( vs. Forecast in November ）Orders Received & Net Sales: Remain unchanged because of no significant
changeOperating Income: Revised up due to cost reduction and other factors,
despite the adverse impact of the appreciation of the yen

84.7<For Reference>
1Q

2Q

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast

Gas Turbine Division : Major Projects for Commercial Aircraft Jet Engines
AircraftTrent1000
B787

TrentXWB
A350

PW1100G - JM
A320neo

Participation TypeShare

RRSP（※)
Approx. 8.5%

RRSP（※)
Approx. 7%

RRSP（※)
Approx. 6%

Responsible
Components

Intermediate pressurecompressor (IPC) module

Intermediate pressurecompressor (IPC) module

Primary parts of the engine’s fan andlow-pressure compressor

First IPC module shipped to Rolls-Royce inMarch 2011.

Made decision to collaborate in a program fordevelopment and production.

Operating Income/Loss
9.6（Forecast in November 6.0）

9.5

8.0

6.1
4.0

1Q

3.3

2Q

3Q

FY2010

1Q

Present Status

7.0
（※）

3.9

2Q

3Q

FY2011
Forecast

Development was completed and mass
production started in FY2010. To bedelivered in accordance with production
schedule of airplanes.

Risk & Revenue Sharing Partner

Machinery Division : Gas Engines
In September 2011, KHI received an order for a 110MW power plant which consistsof 14 Kawasaki Green Gas Engines with world’s highest power-generating efficiencyof 49%.
-8-

Plant & Infrastructure
Main Products: Industrial plants (cement, chemical and others), Power plants, LNG & LPG tanks, Municipal refuse incineration plants,
Shield machines, Crushing machines（Billion Yen / In accumulated amount）（Forecast in November 140.0）

Orders Received
105.4

 FY2011.3Q ( vs. FY2010.3Q ）Orders Received: Decrease in orders received for domestic customers
Net Sales: Increase in sales of overseas projects
Operating Income: Increased due to sales increase and other factors

FY2011
Forecast

 FY2011 Forecast ( vs. Forecast in November )Orders Received & Net Sales: Remain unchanged because of no
significant change
Operating Income: Revised up due to improvement in profitability bysteady progress in some projects

84.0

77.3
46.8

32.0

1Q

140.0
119.9

19.1
2Q

3Q

FY2010

1Q

2Q

3Q（Forecast in November 130.0）

Net Sales

130.0
89.0
20.4
1Q

38.8

2Q

78.7
56.2

56.4
23.8
3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast（Forecast in November 14.0）

Operating Income/Loss

15.0
8.2
3.5

4.6

8.8

0.9

0.2
1Q

6.7

2Q

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast<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 forthe time being and set up, in China, an integrated system for waste heat recovery
power generation systems for cement plants and cement producing facilities, and in
May 2011, KHI has decided to construct a new plant for cement producing facilities
at Anhui Conch Kawasaki Equipment Manufacturing Co., Ltd. (CKE).
As well as further intensifying partnership with CONCH, KHI will develop andcontribute to bring new technologies such as Zero Emission Eco Town System(ZEET) that is an integration of cement plant with waste treatment technology andsludge processing technology in order to establish new business model for global
environmental conservation.
-9-

Motorcycle & Engine
Main Products: Motorcycles, All-Terrain Vehicles(ATVs), Utility Vehicles, Personal Watercraft, General-purpose Gasoline Engines（Billion Yen / In accumulated amount）（Forecast in November 260.0）

Net Sales

240.0

234.4
159.2

154.2

113.2

106.2

65.1

1Q

59.6

2Q

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast

Operating Income/Loss
0.7

2Q

3Q

FY2010

1Q

0.3

2Q

3Q

FY2011
Forecast

 FY2011.3Q ( vs. FY2010.3Q )Net Sales: Decrease in sales due to sales decrease in U.S. and European
markets and the adverse impact of the appreciation of the yen, despitesales increase in Asian and other emerging countries
Operating Income/Loss: Loss expanded due to sales decrease, theadverse impact of the appreciation of the yen and other factors
 FY2011 Forecast ( vs. Forecast in November )Net Sales & Operating Income/Loss: Revised down due to the impact
of floods in Thailand and other factors

1Q

- 1.1
-2.3

- 2.6
- 4.9

-3.0
-4.5
（Forecast in November 2.0）

＜Wholesales by Geografic Area for Consumer Products＞
FY2010.3Q
FY2010
Unit
AmountUnit
AmountDomestic
10
8.2
14
11.3
Nort h America (incl. Canada)
73 (37)53.2 118 (67)78.5
Europe
43
30.0
67
47.7
Emerging Countries & O the rs
195
43.8
272
61.0
Total
321
135.2
471
198.5

(Thousand s of unit / Billion Yen)FY2011.3Q
FY2011 Forecast
Unit
AmountUnit Amount
10
9.1
14
12.0
69 (38)44.2 128 (75)
78.5
31
26.2
58
43.2
234
53.5
317
69.3
344
133.0
517
203.0

Note: 1) Sal es units and amount include the following products.
Uni ts: Mot orcycles, All-Terrain Vehicles(ATVs), Utility Vehicles and Personal Watercraft(Jet Ski)
Amount : The products mentioned above and parts for those products.
2) Figures in the parenthesis ( ) represent motorcycle sales units.

<Business Development in Emerging Markets>
Since KHI started motorcycle business in Philippines in 1974, KHI establishedsubsidiaries in Indonesia, Thailand and Brazil to manufacture and sell
motorcycles. In emerging markets, as demand for leisure motorcycles isincreasing, and expected to increase from now on following further economic
growth and increased purchasing power, KHI focuses on expansion andreinforcement of business operations in those markets. In India, KHI establishednew subsidiary in 2010 to import and sell motorcycles in order to cultivate its
market.
- 10 -

Precision Machinery
Main Products： Hydraulic components (pumps, motors & valves), Hydraulic systems for industrial use, Hydraulic marine machinery, Industrial Robots（Billion Yen / In accumulated amount）（Forecast in November 200.0）

Orders Received

180.0
148.9

131.1

106.7

91.1

68.0

43.4

35.0
1Q

2Q

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast（Forecast in November 190.0）

Net Sales

180.0
140.3

129.0

99.0
60.9

2Q

40.4
3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast（Forecast in November 28.0）

Operating Income/Loss

27.0
22.3

20.7

14.6

14.5

8.6

7.1

3.9
1Q

2Q

 FY2011 Forecast ( vs. Forecast in November )Orders Received & Net Sales: Revised down due to demand decrease of
hydraulic components for construction machinery in emerging countries
Operating Income: Revised down due to the effect of the sales decrease

85.2

27.8
1Q

 FY2011.3Q ( vs. FY2010.3Q )Orders Received : Increase in orders received for hydraulic components forconstruction machinery in emerging countries
Net Sales: Increase in sales of hydraulic components for construction
machinery and painting robots
Operating Income: Increased due to sales increase and other factors

3Q

FY2010

1Q

2Q

3Q

FY2011
Forecast<Businesses Development in China>
In August 2006, production of hydraulic pumps started at Chinese subsidiary in
Suzhou to meet the increasing demand of hydraulic components for construction
machinery in China. In April 2010, production of hydraulic components started in ajoint venture with a Chinese company in Zhejiang, while a sales subsidiary inShanghai provides the products manufactured at the above manufacturing
companies to customers throughout China.
In order to further enhance its presence in Chinese market which has a high growthpotential from a mid- to long-term perspective, KHI Group as a whole is working
on further expansion and deepening of its business operation which includes
operation start at a new plant in Suzhou, expansion of the plant in Zhejiang andestablishment of the subsidiary for after-sales service in Shanghai, as well as
expansion of production capacity at Nishi-Kobe Works.
- 11 -

Financial Condition and Cash Flows【Financial Condition】(Billion Yen)FY2010End of March 2011

End of December 2011

1,354.2

1,404.4

Shareholders’ Equity

289.0

309.7

（Ratio of shareholders’ equity to total assets）(21.3%)(22.0%)

Interest-bearing debt

429.1

491.6

（Net Interest-bearing debt）(381.9)(455.7)

Net Debt Equity Ratio

132%

147%

Total Assets

FY2011

Note: Interest-bearing debt includes lease obligations【Cash Flows】（Billion Yen）

FY2010.3Q

FY2011.3Q

Cash flows from operating activities- 33.5- 16.1

Cash flows from investing activities- 41.5- 51.4

Free Cash Flows- 75.0- 67.5

Cash flows from financing activities

78.0

61.2

- 12 -

II. Forecast for FY2011

Consolidated Operating Performance(Billion Yen)FY2010FY2011 Forecast

Actualin November

Orders Received

1,270.6

1,430.0

Net Sales

1,226.9

1,360.0

vs. Forecast in November

Changevs. FY2010

vs. Forecast
in November

1,380.0+ 109.4- 50.01,330.0+ 103.1- 30.0in January

Operating Income

42.6

50.0

50.0

+ 7.4

0

Recurring Profit

49.1

52.0

52.0

+ 2.9

0

Net Income

25.9

32.0

26.0

+ 0.1

- 6.0

< Orders Received >Forecast was revised down due to decreasein Rolling Stock and Precision Machinery
segments, despite increase in Aerospacesegment< Net Sale >Forecast was revised down because ofsales decrease in Motorcycle & Engine
segment due to the impact of floods inThailand , and in Precision Machinery
segment due to demand decrease of
hydraulic components for construction
machinery in emerging countries< Profits >Exchange Rates (actual & assumed)

Yen / US$

86

80

80

Yen / EUR

113

110

100

Note : Assumed rates are applied to the outstanding foreign exchange exposure as of the respective disclosure date
(For Reference)- Forecast for operating income andrecurring profit remain unchanged due tothe measures to improve profitability,
including fixed cost reduction andimprovement in productivity in eachsegments, despite the effect of the sales
decrease and the adverse impact of theappreciation of the yen

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

Operating Recurring
IncomeProfitUS$
2.0 (2.3)
1.5 (2.0)EUR
0.1 (0.2)
0 (0.1)* Figures in the parenthesis ( ) represent impact as of November 2, 2011- 13 -- Forecast for net income was revised
down due to the effect of partial writedown of deferred tax assets following
the promulgation of a law concerning
reduction of the corporate tax rate

Forecast by Segment(Billion Yen)

Orders Received
FY2010Net Sales

FY2011 Forecast

FY2010Operating Income/Loss

FY2011 Forecast

FY2010FY2011 Forecast

Actualin November

in January

Actualin November

in January

Actualin November

in January

Ship & Offshore Structure

78.9

60.0

60.0

118.4

110.0

110.0

- 1.0

- 4.0

- 4.0

Rolling Stock

187.1

150.0

110.0

131.1

130.0

130.0

8.1

6.0

7.0

Aerospace

206.7

280.0

300.0

196.8

220.0

220.0

3.0

5.0

6.0

Gas Turbine & Machinery

187.5

230.0

230.0

202.6

210.0

210.0

9.5

6.0

7.0

Plant & Infrastructure

119.9

140.0

140.0

89.0

130.0

130.0

8.2

14.0

15.0

Motorcycle & Engine

234.4

260.0

240.0

234.4

260.0

240.0

- 4.9

2.0

- 3.0

Precision Machinery

148.9

200.0

180.0

140.3

190.0

180.0

22.3

28.0

27.0

Others

106.8

110.0

120.0

114.0

110.0

110.0

2.5

2.0

3.0

-

-

-

-

-

-

- 5.3

- 9.0

-8.0

1,270.6

1,430.0

1,380.0

1,226.9

1,360.0

1,330.0

42.6

50.0

50.0

Eliminations and corporate
Total

Note : “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)

FY2010
Actual

FY2011
Forecast

ChangeR&D Expenses

37.0

44.4

+ 7.4

CAPEX
(Construction Base)

55.3

88.0

+ 32.7

Depreciation & Amortization

50.3

51.0

+ 0.7

Domestic

24,511

25,000+ 489

Overseas

8,195

8,900

+ 705

32,70633,900+ 1,194

Number of Employees- 15 -

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.