Report of Earnings and Financial Statements for the
Six Months Ended September 30, 2012 (Consolidated)(Prepared pursuant to Japanese GAAP)
October 31, 2012
Listed company’s name:

Kawasaki Heavy Industries, Ltd.

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

1st sections of the TSE, OSE, and NSE
7012
http://www.khi.co.jp/
Satoshi Hasegawa, President
Hideyuki Matsubara, Senior Manager, Accounting Department+81 3-3435-2130

Scheduled dates:
Submission of quarterly securities filing:
Commencement of dividend payments:

November 8, 2012-

Supplementary materials to quarterly earnings:
Quarterly earnings presentation:

Available
Conducted (for institutional investors and analysts)

1. Consolidated Financial Results for the Six Months ended September 30, 2012
(April 1 – September 30, 2012)(Amounts in millions of yen rounded down to the nearest million yen)

(1) Operating Results(Percentage figures represent changes versus the year-ago period)
Net sales

Operating income

Recurring profit

million yen%
million yen%
million yen
Six Months Ended
574,999(1.7)
10,391 (60.9)
20,165September 30, 2012
Six Months Ended
584,990
2.3
26,62327.3
27,237
September 30, 2011
Note: Comprehensive income September 30, 2012: 10,300million yen (30.9%)
September 30, 2011: 14,916 million yen 92.6%
Earnings per shareyen
Six Months Ended
September 30, 2012
Six Months Ended
September 30, 2011%

million yen%(25.9)

12,429(30.2)

28.1

17,813

44.4

Earnings per share– diluted
yen

7.43

-

10.65

10.50

(2) Financial Condition
Total assets

Net assets

million yen

million yen%

September 30, 2012

1,380,896

317,037

22.1

March 31, 2012

1,362,139

315,92222.4

Note: Shareholders’ equity:

September 30, 2012: 306,427 million yen
March 31, 2012: 306,054 million yen

1

Net income

Equity Ratio

2. Dividends

Record date or term

End of firstquarteryen

End of second
quarteryen

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

Year ended
0.00
March 31, 2012
Year ending
0.00
March 31, 2013
Year ending March
31, 2013 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

Full year
yen

5.00

5.00

5.00

5.00

3. Forecast of Consolidated Earnings for the Year Ending March 31, 2013
(April 1, 2012 – March 31, 2013)
Net sales

Full year

million yen%

1,300,000(0.2)(Percentage figures represent changes versus the year-ago period)
Earnings per
Operating income
Recurring profit
Net income
sharemillion yen%
million yen%
million yen%
yen
36,000(37.3)

50,000(21.4)

30,00028.6

Note: Revision to the most recently announced earnings forecast: Yes
For details, please see “Notice Concerning Revision of the Outlook for Performance for the Fiscal Year Ending
March 31, 2013” announced today (October 31, 2012).

4. Notes
1) Changes affecting the status of material subsidiaries (scope of consolidation): None
*This refers to additions and removals of material subsidiaries to and from the consolidated groupduring the period. For further details, see “Changes affecting the status of material subsidiaries(scope of consolidation)” on page 9 in the Accompanying Materials.
2) Accounting procedures specific to preparation of quarterly consolidated financial statements: Yes*For further details, see “Accounting procedures specific to preparation of quarterly consolidated
financial statements” on page 9 in the Accompanying Materials.
3) Changes in accounting policies, changes in accounting estimates, and correction of errors(1) Changes in accounting policies in accord with revisions to accounting standards: Yes(2) Changes in accounting policies other than (1): None
(3) Changes in accounting estimates: Yes(4) Correction of errors: None
*The above changes correspond to Article 10-5 in the "Ordinance on Terminology, Forms andPreparation Methods of Quarterly Consolidated Financial Statements." For further details, see“Changes in accounting policies, changes in accounting estimates, and correction of errors” onpage 9 in the Accompanying Materials.
4) Number of shares issued and outstanding (common stock)(1) Number of shares issued as of period-end (including treasury stock)
September 30, 2012:
1,671,892,659 shares
March 31, 2012:
1,671,892,659 shares(2) Number of shares held in treasury as of period-end
September 30, 2012:
90,297 shares
March 31, 2012:
77,126 shares

2

17.94

(3) Average number of shares during respective periods
Six months ended September 30, 2012:
1,671,809,081 shares
Six months ended September 30, 2011:
1,671,112,605 shares

Quarterly review status
This report is exempt from the quarterly review of accounts conducted in accord with Japan’s Financial
Instruments and Exchange Act. As of this report’s publication, the quarterly review of the quarterly
financial results had not been completed.
*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 preparation. Actual
results may differ from those expressed or implied by forward-looking statements due to a range offactors. For assumptions underlying earnings forecasts and other information regarding the use of suchforecasts, refer to “Consolidated earnings outlook” on page 8 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 and analysts on Wednesday October
31, 2012, and to post the briefing material on quarterly financial results to be used for the briefing on
TDnet and the Company’s website simultaneously with the announcement of financial results.

3

Accompanying Materials – Contents
1. Qualitative Information and Financial Statements

5(1) Consolidated operating results

5(2) Consolidated financial position

8(3) Consolidated earnings outlook

8

2. Summary Information (Notes)

9(1) Changes affecting the status of material subsidiaries (scope of consolidation)

9(2) Accounting procedures specific to preparation of quarterly consolidated financial statements

9(3) Changes in accounting policies, changes in accounting estimates, and correction of errors

9

3. Consolidated Financial Statements

10(1) Consolidated balance sheets

10(2) Consolidated statements of income and comprehensive income

12(Consolidated statements of income for the six months ended September 30, 2012)12(Consolidated statements of comprehensive income for the six months ended September 30, 2012)12(3) Consolidated cash flow statements

13(4) Notes on the going-concern assumption

14(5) Notes on significant changes in the amount of shareholders’ equity

14(6) Segment information and others

14

4. Supplementary Information

15(1) Orders and sales

15(2) Net sales by geographic area

16(3) Supplementary information on earnings forecasts for the fiscal year ending March 31, 2013174

1. Qualitative Information and Financial Statements(1) Consolidated operating results
Although the global economy is expected to continue on a track to gradual recovery, the speedof recovery in developed countries remains slow due to uncertainties such as the financial
problems and a continuing severe employment situation in the U.S. and debtor nation problems
in Europe. In addition, the global economy is in danger of further downturn because of
emerging countries that have led the global economy are also experiencing economic slowdown,with the economic growth rate of China expected to fall short of initial forecasts. The
surrounding business environment is expected to remain tough due to currency movements that
require caution.
In Japan, demand for reconstruction related to the Great East Japan Earthquake was moving intofull swing, but its economy was faced with possible negative factors, including slowdown ofexport companies triggered by the prolongation of the yen’s strength and the downward trend of
the global economy. Meanwhile, the social roles by the Group, which is engaged in various key
infrastructures, have become increasingly important amid mounting interest in the future ofenergy.
Under such business environment, overall orders received by the Group increased for the firsthalf of the fiscal year ending March 2013 because greater orders for the Rolling Stock andAerospace segments offset fewer orders for the Precision Machinery and other segments. Manybusiness segments of the Group posted year-on-year decreases in sales and profits. Overall sales
fell chiefly due to decreases in the Precision Machinery caused by economic slowdown in Chinaand Plant & Infrastructure segments, despite increases in the Aerospace and other segments.
Overall profits declined owing to lower profits in the Precision Machinery and Rolling Stocksegments, despite rises in profits in the Aerospace and other segments.
As a result, in the second quarter under review, orders received increased ¥16.9 billion year on
year to ¥503.4 billion on a consolidated basis. Net sales decreased ¥9.9 billion to ¥574.9 billion.
Operating income dropped ¥16.2 billion to ¥10.3 billion, recurring profit declined ¥7.0 billion to¥20.1 billion, and net income fell ¥5.3 billion to ¥12.4 billion.
Consolidated segment information for the first half of the fiscal year is summarized below.

5Segment Information
Segment net sales, operating income, and orders received (billions of yen)Six months ended September 30

Orders received
Six months ended

2011

2012
September 30

Segment

Net

OperatingNet

Operatingsales

incomesales

income2011

2012

Ship & Offshore Structure

53.1

0.5

45.8

1.0

24.6

37.8

Rolling Stock

55.3

1.1

51.4

(3.1)

42.1

66.9

Aerospace

87.4

3.0

109.1

4.3

67.5

91.0

Gas Turbine & Machinery

84.7

3.9

93.2

3.2

79.7

65.4

Plant & Infrastructure

56.2

6.7

46.4

3.1

46.8

51.3

Motorcycle & Engine

106.2

(2.3)

103.9

(2.2)

106.2

103.9

Precision Machinery

85.2

14.5

67.0

4.9

91.1

55.6

Other

56.4

1.8

57.9

0.6

55.1

58.1

-

(2.7)

-

(1.7)

-

-

584.9

26.6

574.9

10.3

513.4

530.4

Adjustments
Total

Note: Net sales include only sales to external customers.

Ship & Offshore Structure
Orders received increased ¥13.2 billion from a year earlier to ¥37.8 billion on a consolidated
basis, due to the receipt of orders for four ships, including an LNG carrier.
Net sales decreased ¥7.3 billion to ¥45.8 billion, owing to a fall in construction of Cape size
bulk carriers, despite a growth in construction of liquefied gas carriers such as an LNG carrier
and an LPG carrier.
Operating income increased ¥0.4 billion from a year ago to ¥1.0 billion due to a decrease inprovision for losses on construction contracts, despite of a decline in sales.
Rolling Stock
Orders received totaled ¥66.9 billion on a consolidated basis, up ¥24.8 billion year on year,
primarily thanks to the receipt of orders from Taiwan for high-speed rail cars and fromSingapore for subway cars.
Net sales were ¥51.4 billion, down ¥3.8 billion year on year, due to a decrease in sales
overseas, although sales rose in Japan because of a rise in sales to JR companies.
Operating income and loss deteriorated ¥4.2 billion from a year ago to an operating loss of¥3.1 billion, affected by provision for losses on construction contracts for a certain overseas
project.
6

Aerospace
Orders received increased ¥23.4 billion from the previous fiscal year to ¥91.0 billion on aconsolidated basis, mainly due to rises in orders from Japan’s Ministry of Defense and orders
from Boeing for component parts for the Boeing 777 and 787.
Net sales jumped ¥21.6 billion to ¥109.1 billion, thanks to an increase in sales to the Ministryof Defense, including C-2 transport aircraft, and a rise in sales to Boeing of component parts for
the Boeing 787. In addition, sales of component parts for the Boeing 777 continued to be robust.
Operating income improved ¥1.3 billion from a year earlier to ¥4.3 billion, largely because ofincreased sales and reduced costs.
Gas Turbine & Machinery
Orders received totaled ¥65.4 billion on a consolidated basis, down ¥14.2 billion from a year
earlier, when a large order for the construction of a gas engine power plant was received, despitelarger orders for component parts for commercial aircraft jet engines.
Net sales increased ¥8.4 billion from a year earlier to ¥93.2 billion, buoyed by increases insales of industrial gas turbines, gas engines and component parts for commercial aircraft jetengines, despite a decrease in sales of turbine facilities.
Operating income was ¥3.2 billion, down ¥0.6 billion, primarily affected by higher R&D
expenses.
Plant & Infrastructure
Orders received increased ¥4.5 billion year on year to ¥51.3 billion on a consolidated basis,thanks to the receipt of orders for cryogenic tanks and such like for the Ichthys LNG project.
Net sales declined ¥9.8 billion to ¥46.4 billion, owing to a drop in large orders from overseas,
although sales of LNG storage tanks continued to be strong, and sales of conveying facilities
and municipal refuse incineration plants went up.
Operating income decreased ¥3.5 billion to ¥3.1 billion, due to falls in sales and profitability.
Motorcycle & Engine
Net sales were ¥103.9 billion, down ¥2.2 billion from a year earlier, hurt by a sharp drop insales of motorcycles in Europe and the yen’s sharp climb against the euro, despite an increase insales of motorcycles for emerging countries such as Indonesia.
Operating loss remained almost unchanged at ¥2.2 billion.
Precision Machinery
Orders received sharply decreased ¥35.5 billion from a year ago to ¥55.6 billion on aconsolidated basis, due to a substantial decline in orders for hydraulic equipment to theconstruction machinery market in emerging countries, mainly China.
Net sales fell ¥18.1 billion to ¥67.0 billion, owing to a drop in sales of hydraulic equipment to7the construction machinery market in emerging countries, mainly China.
Operating income sharply declined ¥9.5 billion to ¥4.9 billion, because of lower sales and anincrease in fixed expenses caused by capital spending in previous years.
Other Operations
Net sales totaled ¥57.9 billion, up ¥1.4 billion from the previous fiscal year.
Operating income was ¥0.6 billion, down ¥1.1 billion.

(2) Consolidated financial position
At the end of the first half under review, total assets stood at ¥1,380.8 billion on a consolidated
basis, up ¥18.7 billion from the previous fiscal year, reflecting a decrease in trade receivables, anincrease in inventories resulting from progress toward completion of construction jobs, and anincrease in property, plant and equipment due to capital investment and investments in Dalian
COSCO KHI Shipbuilding Engineering Co., Ltd. Liabilities were ¥1,063.8 billion, up ¥17.6
billion, due to rises in commercial paper, corporate bonds and advances from customers, despite afall in trade payables. Interest-bearing debt was ¥472.3 billion, up ¥65.1 billion. Net assets were¥317.0 billion, up ¥1.1 billion, reflecting payment of dividends and the booking of net income.
(3) Consolidated earnings outlook
Although the global economy is expected to continue on a track to gradual recovery, the speed ofrecovery in developed countries remains slow due to uncertainties such as the financial problems
and a continuing severe employment situation in the U.S. and debtor nation problems in Europe.
In addition, the global economy is in danger of further downturn because of emerging countries
that have led the global economy are also experiencing economic slowdown, with the economic
growth rate of China expected to fall short of initial forecasts. The surrounding businessenvironment is expected to remain tough due to currency movements that require caution.
As a result of the review of the earnings outlook for the current year in light of such businesscircumstances, overall net sales are expected to decrease ¥80.0 billion from the forecasts
announced previously to ¥1,300.0 billion on a consolidated basis, due to a sharp decline in sales at
the Precision Machinery segment, which is experiencing a low demand for hydraulic equipment
for construction machinery in emerging countries, and to a decrease in sales for the Motorcycle &Engine segment as a result of the strong yen and economic slowdown in developed countries.
Although profits at the Ship & Offshore Structure segment exceed the initial forecasts,
consolidated operating income is expected to decrease ¥16.0 billion from the forecasts announced
previously to ¥36.0 billion, due to decreased sales and provision of loss on construction contracts
for a certain overseas project at the Rolling Stock segment. Consolidated recurring profit isexpected to decrease ¥6.0 billion from the forecasts announced previously to ¥50.0 billion
because non-operating income and loss is expected to improve due to a turnaround in exchange
8gains on forward exchange contracts as well as equity method income. In addition, consolidated
net income is forecasted to decrease ¥4.0 billion from the forecasts announced previously to ¥30.0
billion.
For details, please see “Notice Concerning Revision of the Outlook for Performance for the
Fiscal Year Ending March 31, 2013” announced today (October 31, 2012).
The Company's earnings forecasts assume exchange rates of ¥80 to the US dollar and ¥100 to
the euro.

2. Summary Information (Notes)(1) Changes affecting the status of material subsidiaries (scope of consolidation)
Not applicable(2) Accounting procedures specific to preparation of quarterly consolidated financial statements
The Company calculates tax expense by rationally estimating its effective tax rate after
application of deferred-tax accounting to pretax net income for the fiscal year, which includes
the second quarter under review, and multiplying quarterly pretax net income by said estimatedeffective tax rate. If unable to use the estimated effective tax rate, the Company calculates tax
expense by multiplying the statutory effective tax rate by quarterly pretax net income adjusted
to reflect material differences other than temporary differences.
Income taxes are reported inclusive of income tax adjustments.
(3) Changes in accounting policies, changes in accounting estimates, and correction oferrorsChange in depreciation method
In accordance with the revision to the Corporate Tax Law, from the first quarter under review, theCompany and its domestic consolidated subsidiaries have changed the depreciation method forproperty, plant and equipment acquired on or after April 1, 2012 to the method stipulated in therevised Corporate Tax Law.
As a result, operating income, recurring profit and income before income taxes and minority
interests for the first half under review increased ¥299 million respectively.

93. Consolidated Financial Statements(1) Consolidated balance sheets
Millions of yen
As of
Six months ended
March 31, 2012
September 30, 2012
AssetsCurrent assets
Cash on hand and in banks
Trade receivables
Merchandise and finished products
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful receivables

34,316
404,054
53,558300,224
88,11390,174(3,255)967,186

28,798361,806
57,157
336,025
86,07988,600(3,166)955,301

274,750

285,433

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

300
18,48518,786130
18,305
18,436102,356(940)
101,416
394,953
1,362,139

122,832(1,107)
121,725
425,594
1,380,896

Liabilities
Current liabilities
Trade payables
Short-term debt
Income taxes payable
Accrued bonuses
Provision for losses on construction contracts
Other provisions
Advances from customers
Other
Total current liabilities

310,775
137,568
4,627
20,58230,977
7,128
99,05085,291
696,002272,206
146,990
3,306
15,55827,242
5,759
111,718
110,230
693,014Long-term liabilities
Bonds payable
Long-term debt
Employees’ retirement and severance benefits
Other provisions
Other
Total long-term liabilities
Total liabilities

60,000198,737
75,052
4,192
12,232350,214
1,046,216

80,000199,420
72,585
3,811
15,027
370,844
1,063,859

104,484
54,393
176,414(22)
335,270

104,484
54,393
180,093(25)
338,947

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

10

Accumulated other comprehensive income
Net unrealized gains (losses) on securities, net of tax
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

11

3,989
246
(33,451)(29,215)9,868
315,922
1,362,139

1,653
2,579
(36,753)(32,520)
10,610317,037
1,380,896

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income
Millions of yen
Six months ended
September 30, 2011
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and benefits
R&D expenses
Provision for doubtful accounts
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in income of non-consolidated subsidiaries and affiliates
Foreign exchange gain, net
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss, net
Loss on valuation of securities
Other
Total non-operating expenses
Recurring profit
Extraordinary losses
Loss on impairment of fixed assets
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in net income of consolidated subsidiaries
Net income (loss)

Six months ended
September 30, 2012

584,990
485,826
99,164574,999
488,593
86,406

19,896
16,22836,41672,541
26,623

20,683
18,203269
36,85876,014
10,391

701
377
4,833
2,396
8,308

836
285
5,920
3,581
3,120
13,744

2,255
2,990
7
2,442
7,694
27,237

2,073
86
1,809
3,969
20,165924
924
26,312
7,254
19,058
1,245
17,813

20,165
6,629
13,536
1,107
12,429Consolidated statements of comprehensive income
Millions of yen
Six months ended
September 30, 2011
Income before minority interests
Other comprehensive income
Net unrealized gains (losses) on securities, net of tax
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Share of other comprehensive income of associates accounted forusing equity method
Total other comprehensive income
Comprehensive Income attributable to:
Owners of the parent company
Minority interests

12

Six months ended
September 30, 2012

19,05813,536(1,175)153(3,680)(2,362)2,331(2,519)

561

(685)

(4,141)
14,916
13,5501,366(3,236)
10,3009,124
1,176

(3) Consolidated cash flow statements
Millions of yen
Six months ended
September 30, 2011
Cash flow from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Loss on impairment of fixed assets
Increase (decrease) in provisionInterest and dividend income
Interest expense
Loss (gain) on valuation of securities
Equity in income non-consolidated subsidiaries and affiliates(Increase) decrease in trade receivables(Increase) decrease in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances from customers
Other
Subtotal
Cash received for interest and dividends
Cash paid for interest
Cash paid for income taxes
Net cash provided by operating activities
Cash flow from investing activities
Acquisition of property, plant, equipment and intangible assets
Proceeds from sales of property, plant, equipment and intangible
assetsAcquisition of investments in securities
Proceeds from sales of investments in securities
Acquisition of investments in subsidiaries of affiliate
Payments for lease and guarantee deposits
Decrease (Increase) in short-term loans receivable
Additions to long-term loans receivable
Proceeds from collection of long-term loans receivable
Other
Net cash used for investing activities
Cash flow from financing activities
Net increase (decrease) in short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of bonds
Redemption of bonds payable
Acquisition of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Net cash used for financing activities
Effect of exchange rate changes
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents by change ofconsolidation period of subsidiaries
Cash and cash equivalents at end of period

13

Six months ended
September 30, 2012

26,312
22,312924(3,927)(1,078)2,255
7(4,833)73,204(28,528)(58,568)
13,350(434)
40,995
1,063(2,298)(7,188)32,572

20,16521,921(12,176)(1,121)
2,073
86(5,920)34,414(43,390)(40,727)
14,120(1,362)(11,916)
1,160(2,029)(6,701)(19,487)(33,176)(32,298)

155

275

(34)
5
(526)
25
(35)
43
857
(32,686)(489)
794(12,331)(1,152)
(375)
(41)
48
(601)
(46,172)(4,416)
8,741(3,954)20,000(20,186)(7)(5,000)(470)(33)(5,328)(1,977)(7,419)44,62951,342
24,327(27,425)
20,000(2)(8,331)(434)(188)
59,287
1,012(5,358)33,245(1,508)-35,701

27,886

(4) Notes on the going-concern assumption

Not applicable(5) Notes on significant changes in the amount of shareholders’ equity
Not applicable(6) Segment information and others
Segment information
1. Six months ended September 30, 2011 (April 1, 2011 – September 30, 2011)(1) Sales and income (loss) by reportable segment
Millions of yen

Ship & Offshore Structure
Rolling Stock
Aerospace
Gas Turbine & Machinery
Plant & Infrastructure
Motorcycle & Engine
Precision Machinery
Other
Reportable segment total
Adjustments*1
Consolidated total
Notes: 1. Breakdown of adjustments:

External sales

Intersegment
sales

Total sales

Operatingincome (loss)

53,18355,36687,47984,76056,299106,20285,251
56,446584,990584,990

722
472
899
7,432
4,311
482
6,564
16,76937,655(37,655)-

53,906
55,83888,37992,19360,610106,684
91,816
73,215
622,646(37,655)584,990

532
1,133
3,057
3,914
6,740
(2,378)14,514
1,868
29,383(2,760)26,623

Millions of yen
IncomeAmountIntersegment transactions
13
Corporate expenses*(2,774)
Total(2,760)*Corporate expenses mainly comprise general and administrative expenses not attributed to reportablesegments.
2. Segment income adjustments are based on operating income reported on the quarterly consolidated
statements of income for the corresponding period.

(2) Impairment loss on fixed assets and goodwill by reportable segment
Not applicable14

2. Six months ended September 30, 2012 (April 1, 2012 – September 30, 2012)(1) Sales and income (loss) by reportable segment
Millions of yen

Ship & Offshore Structure
Rolling Stock
Aerospace
Gas Turbine & Machinery
Plant & Infrastructure
Motorcycle & Engine
Precision Machinery
Other
Reportable segment total
Adjustments*1
Consolidated total
Notes: 1. Breakdown of adjustments:

External sales

Intersegment
sales

Total sales

Operatingincome (loss)

45,80851,483
109,156
93,217
46,405
103,927
67,06057,938574,999574,999

1,162
449
1,153
8,252
6,964
349
5,965
15,941
40,239(40,239)-

46,97051,932
110,310
101,470
53,369104,277
73,02573,880615,238(40,239)
574,999

1,019(3,100)
4,399
3,269
3,150
(2,288)
4,971
692
12,113(1,722)
10,391Millions of yen
IncomeAmountIntersegment transactions
810
Corporate expenses*(2,553)
Total(1,722)* Corporate expenses mainly comprise general and administrative expenses not attributed to reportablesegments.
2. Segment income adjustments are based on operating income reported on the quarterly consolidated
statements of income for the corresponding period.

(2) Impairment loss on fixed assets and goodwill by reportable segment
Not applicable
4. Supplementary information(1) Orders and sales (consolidated)
Orders received
Six months ended
September 30, 2011
Segment

Six months ended
September 30, 2012

Year ended March 31,
2012% of total
million yen% of total
million yen% of total
million yen
Ship & Offshore Structure
24,657
4.8
37,877
7.1
39,9093.0
Rolling Stock
42,126
8.2
66,932
12.6
66,0995.0
Aerospace
67,596
13.1
91,01017.1
327,233
24.9
Gas Turbine & Machinery
79,72915.5
65,47012.3
227,28117.3
Plant & Infrastructure
46,823
9.1
51,3849.6
119,284
9.0
Motorcycle & Engine
106,20220.6
103,92719.5
235,243
17.9
Precision Machinery
91,15917.7
55,618
10.4
174,587
13.3
Other55,161
10.7
58,186
10.9
122,239
9.3
Total
513,456
100.0
530,408
100.0
1,311,878
100.0
Note: The Motorcycle & Engine segment’s orders received are equal to its net sales as production is based mainlyon estimated demand.

15

Net sales
Segment
Ship & Offshore Structure
Rolling Stock
Aerospace
Gas Turbine & Machinery
Plant & Infrastructure
Motorcycle & Engine
Precision Machinery
Other
Total

Six months ended
September 30, 2011
% of total
million yen
53,1839.0
55,366
9.4
87,47914.9
84,76014.4
56,2999.6
106,20218.1
85,251
14.5
56,4469.6
584,990
100.0

Six months ended
September 30, 2012
million yen% of total
45,8087.9
51,4838.9
109,156
18.9
93,21716.2
46,405
8.0
103,927
18.0
67,06011.6
57,938
10.0
574,999
100.0

Year ended March 31,
2012
million yen% of total
113,532
8.7
132,684
10.1
206,580
15.8
194,655
14.9
122,800
9.4
235,24318.0
175,077
13.4
123,205
9.4
1,303,778
100.0Year ended March 31,
2012
million yen% of total
102,870
6.8
345,170
23.1
386,37625.8
409,81927.4
181,698
12.1
42,3002.8
25,8791.7
1,494,116
100.0

Six months ended
September 30, 2012
million yen % of total
92,8096.6
344,48524.5
365,305
26.0
365,74226.0
178,597
12.7
30,858
2.1
26,1161.8
1,403,914
100.0

Six months ended
September 30, 2011
million yen% of total
145,76210.4
394,12528.3
244,59817.5
356,45425.6
175,708
12.6
48,698
3.5
25,5581.8
1,390,905
100.0

Order backlog
Segment
Ship & Offshore Structure
Rolling Stock
Aerospace
Gas Turbine & Machinery
Plant & Infrastructure
Motorcycle & Engine
Precision Machinery
Other
Total

(2) Net sales by geographic area (consolidated)
Six months ended September 30, 2011 (April 1, 2011 – September 30, 2011)
Japan
United States
EuropeAsia
Other areas
Total

Millions of yen
41.2%
17.5%
10.6%
19.7%
10.8%
100.0%

241,194
102,865
62,180115,232
63,516584,990

Six months ended September 30, 2012 (April 1, 2011 – September 30, 2012)
Japan
United States
EuropeAsia
Other areas
Total

Millions of yen
50.0%
19.7%
6.9%
15.1%
8.1%
100.0%

287,599
113,606
40,23486,82546,732574,999

16

(3) Supplementary information on earnings forecasts for the fiscal year ending March 31,
20131) Consolidated earnings outlook

Revised forecast(A)

Forecast issued
April 26, 2012 (B)Net sales
Operating income
Recurring profit
Net income

1,300.0
36.0
50.0
30.0

1,380.0
52.0
56.0
34.0

(80.0)(16.0)(6.0)(4.0)

Billions of yen
Fiscal 2011
(ended March 31,
2012)(actual)1,303.7
57.4
63.6
23.3

Orders received
Before-tax ROIC (%)
R&D expenses
Capital expenditures
Depreciation/amortization
Number of employees at end of
fiscal year
*Number of employees outsideof Japan included therein

1,350.0
7.3%
45.0
75.0
52.0

1,430.0
8.2%
45.0
79.0
54.0

(80.0)(0.9%)(4.0)(2.0)

1,311.8
7.4%
39.9
63.9
48.9

34,50034,700(200)

33,267*9,100*9,200*(100)*8,497

Outlook for the year ending March 31, 2013 (fiscal 2012)
Change(A – B)

Notes: 1. Outlook’s assumed foreign exchange rates: ¥80 = US$1, ¥100= 1 euro

2. Before-tax ROIC = (income before income taxes + interest expense) / invested capital.
3. Capital expenditures represent the total of newly recorded property, plant and equipment andnewly recorded intangible assets. Depreciation/amortization represents depreciation andamortization expenses on property, plant and equipment and intangible assets.
2) Outlook by reportable segment(a) Net sales and operating income (loss)
Billions of yen
Outlook for the year ending March 31, 2013 (fiscal 2012)
Revised forecast
Forecast issued
Change(A)
April 26, 2012 (B)(A – B)

Segment
Ship & Offshore Structure
Rolling Stock
Aerospace
Gas Turbine & Machinery
Plant & Infrastructure
Motorcycle & Engine
Precision Machinery
Other
Adjustments
Total

Net sales

80.0
130.0
250.0
210.0
130.0
250.0
130.0
120.0
1,300.0

Operatingincome(loss)

(2.0)
2.0
9.0
8.0
11.0
2.0
12.0
3.0
(9.0)
36.0

Net sales

80.0
130.0
250.0
210.0
130.0
260.0
200.0
120.0
1,380.017

Operatingincome(loss)

(5.0)
6.0
9.0
8.0
10.0
5.0
27.0
2.0
(10.0)
52.0

Net sales(10.0)(70.0)(80.0)

Operatingincome(loss)
3.0
(4.0)
1.0
(3.0)
(15.0)
1.0
1.0(16.0)

Fiscal 2011 (ended
March 31, 2012)(actual)
Net sales

113.5
132.6
206.5
194.6
122.8
235.2
175.0
123.2
1,303.7

Operatingincome(loss)

3.9
5.1
7.8
7.7
14.1
(2.9)
26.6
3.8
(8.8)
57.4

(b) Orders received

Segment
Ship & Offshore Structure
Rolling Stock
Aerospace
Gas Turbine & Machinery
Plant & Infrastructure
Motorcycle & Engine
Precision Machinery
Other
Total

Outlook for the year ending March 31, 2013 (fiscal 2012)
Revised outlook
Forecast issued
Change(A)
April 26, 2012 (B)(A – B)
110.0
110.0
140.0
150.0
(10.0)
220.0
220.0
240.0
230.0
10.0
130.0
130.0
250.0
260.0
(10.0)
130.0
210.0(80.0)
130.0
120.0
10.0
1,350.0
1,430.0(80.0)

18

Billions of yen
Fiscal 2011 (ended
March 31, 2012)(actual)

39.9
66.0
327.2
227.2
119.2
235.2
174.5
122.2
1,311.8