Report of Earnings and Financial Statements for the
Six Months Ended September 30, 2014 (Consolidated)(Prepared pursuant to Japanese GAAP)
October 29, 2014
Listed company’s name:

Kawasaki Heavy Industries, Ltd.

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

1st sections of the TSE, and NSE
7012
http://www.khi.co.jp/
Shigeru Murayama, President
Ryoji Mori, Senior Manager, Accounting Department+81 3-3435-2130

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

November 10, 2014
December 2, 2014

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, 2014
(April 1 – September 30, 2014)(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
633,422
6.4
23,189 (13.6)
25,963September 30, 2014
Six Months Ended
595,077
3.4
26,840158.2
22,788September 30, 2013
Note: Comprehensive income September 30, 2014: 21,181million yen (29.2%)
September 30, 2013: 29,949million yen 190.7%
Earnings per shareyen
Six Months Ended
September 30, 2014
Six Months Ended
September 30, 2013%

million yen

%

13.9

18,18539.8

13.0

13,001

4.6

Earnings per share– diluted
yen

10.87

-

7.77

-

(2) Financial Condition
Total assets

Net assets

million yen

million yen%

September 30, 2014

1,630,986

382,542

22.5

March 31, 2014

1,554,430

376,68623.3

Note: Shareholders’ equity:

September 30, 2014 : 368,194 million yen
March 31, 2014
: 363,041 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, 2014
Year ending
3.00
March 31, 2015
Year ending March
31, 2015 (forecast)
Note: Revisions to the most recently announced dividend forecast: Yes

Full year
yen

6.00

6.00

5.00

8.00

3. Forecast of Consolidated Earnings for the Year Ending March 31, 2015
(April 1, 2014 – March 31, 2015)
Net sales

Full year

million yen%

1,510,000

8.9(Percentage figures represent changes versus the year-ago period)
Earnings per
Operating income
Recurring profit
Net income
sharemillion yen%
million yen%
million yen%
yen
77,000

6.4

72,00018.8

48,00024.3

Note: Revision to the most recently announced earnings forecast: Yes

4. Notes
1) Changes affecting the status of material subsidiaries (scope of consolidation): None2) 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 10 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: None
(2) Changes in accounting policies other than (1): None
(3) Changes in accounting estimates: None
(4) Correction of errors: None
4) Number of shares issued and outstanding (common stock)(1) Number of shares issued as of period-end (including treasury stock)
September 30, 2014:
1,671,892,659 shares
March 31, 2014:
1,671,892,659 shares(2) Number of shares held in treasury as of period-end
September 30, 2014:
163,053 shares
March 31, 2014:
141,710 shares(3) Average number of shares during respective periods
Six months ended September 30, 2014:
1,671,741,376 shares
Six months ended September 30, 2013:
1,671,782,411 shares

2

28.71

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, and do
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 “Consolidated
earnings outlook” on page 9 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
29, 2014, 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

9

2. Summary Information (Notes)

10(1) Changes affecting the status of material subsidiaries (scope of consolidation)

10(2) Accounting procedures specific to preparation of quarterly consolidated financial statements

10

3. Consolidated Financial Statements

11(1) Consolidated balance sheets

11(2) Consolidated statements of income and comprehensive income

13(Consolidated statements of income for the six months ended September 30, 2014)13(Consolidated statements of comprehensive income for the six months ended September 30, 2014)13(3) Consolidated cash flow statements

14(4) Notes on financial statements

15(Notes on the going-concern assumption)

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

15(Segment information and others)

15

4. Supplementary Information

17(1) Orders and sales (consolidated)

17(2) Net sales by geographic area (consolidated)

18(3) Supplementary information on earnings forecasts for the fiscal year ending March 31, 2015194

1. Qualitative Information and Financial Statements(1) Consolidated operating results
In the first half of the fiscal year ending March 31, 2015, the global economy was
expected to grow moderately, particularly the US economy, which is on a recovery track,
but the situation now bears watching as there are risks of an economic downturn
stemming from factors such as concerns about economic stagnation in the eurozone andemerging countries, the tapering of monetary easing in the US, as well as heightened
geopolitical tensions.
The prospects for the Japanese economy are somewhat opaque, as the recovery inpersonal consumption has been materializing slowly due to the recoil drop in spending
in the wake of the demand surge preceding the consumption tax hike, as well as theimpacts of inclement summer weather. However, the economy is forecast to gradually
head towards a recovery, underpinned by the high level of public investment and theimprovement in employment and income environment. Still, an eye must be kept on any
impacts from sudden foreign exchange rate movements and the situation with thefollow-on consumption tax increase.
Amid such an economic environment, the Group achieved an overall significant
increase in orders received in the fiscal first half, centered on order growth in segments
such as Ship & Offshore Structure and Plant & Infrastructure. First-half sales also
increased overall, as despite a decline in sales in segments such as Ship & Offshore
Structure and Rolling Stock, there was a considerable increase in sales in the Aerospacesegment, along with other factors. First-half operating income declined on the whole, as
the drop in operating income in segments including Rolling Stock, Ship & Offshore
Structure, and Gas Turbine & Machinery offset the increase in operating income in the
Aerospace and Precision Machinery segments.
The Group’s first half consolidated orders received increased ¥113.7 billion year on
year to ¥706.5 billion. Consolidated net sales totaled ¥633.4 billion, a ¥38.3 billion
year-on-year increase, but consolidated operating income decreased ¥3.6 billion year on
year to ¥23.1 billion, due to the decline in profit margin caused by changes to the sales
mix, among other factors. Consolidated recurring profit increased ¥3.1 billion to ¥25.9
billion, largely due to the narrowing of foreign exchange losses, while consolidated net
income grew ¥5.1 billion year on year to ¥18.1 billion, as there was also a decline in tax
expense.

5

Consolidated operating performance in the first half of fiscal year is summarized by segment
below.

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

2014 (A)

Orders received

Change (A – B)

2013 (B)Six months ended
September 30

Net

OperatingNet

OperatingNet

Operating

2014

2013

Changesales

incomesales

incomesales

income(A)(B)(A – B)

Ship & Offshore
Structure

34.8

(0.7)

39.5

1.5

(4.6)

(2.2)

77.1

30.7

46.4

Rolling Stock

56.9

1.2

59.9

3.7

(3.0)

(2.5)

91.5

75.0

16.5

Aerospace

144.8

13.5

122.3

10.2

22.4

3.3

114.4

96.1

18.3

83.8

1.4

77.3

3.5

6.5

(2.0)

85.9

84.1

1.8

47.2

1.0

39.2

1.7

8.0

(0.7)

66.9

46.1

20.7

137.7

1.0

139.7

2.5

(1.9)

(1.5)

137.7

139.7

(1.9)

Machinery

63.7

5.1

55.6

4.2

8.1

0.8

64.8

61.7

3.0

Other

64.1

1.2

61.2

1.3

2.9

(0.1)

67.8

59.0

8.7

-

(0.7)

-

(2.1)

-

1.3

-

-

-

633.4

23.1

595.0

26.8

38.3

(3.6)

706.5

592.8

113.7

Gas Turbine &Machinery
Plant &
Infrastructure
Motorcycle &EnginePrecision

Adjustments
Total

Notes: 1. Net sales include only sales to external customers.
2.The Motorcycle & Engine segment’s orders received are equal to its net sales as production is based mainlyon estimated demand.

Ship & Offshore Structure
Consolidated orders received increased ¥46.4 billion year on year to ¥77.1 billion, as a result ofbooking orders for two LNG carriers and an LPG carrier.
Consolidated net sales decreased ¥4.6 billion year on year to ¥34.8 billion, as growth in theamount of construction of LNG carriers was overshadowed by a decline in the amount ofconstruction of other vessels, most notably LPG carriers and bulk carriers.
As a result of the decline in sales, the segment posted a consolidated operating loss of ¥0.7 billion,a ¥2.2 billion deterioration year on year.

6Rolling Stock
Consolidated orders received grew ¥16.5 billion to ¥91.5 billion, largely as a result of an orderfrom the Singapore Land Transport Authority for subway train cars for new lines.
Consolidated net sales decreased ¥3.0 billion year on year to ¥56.9 billion, as a result of a decline
in overseas sales to customers in North America and Asia.
Consolidated operating income decreased ¥2.5 billion year on year to ¥1.2 billion, attributable to a
decline in sales and profit margin.

Aerospace
Consolidated orders received grew ¥18.3 billion year on year to ¥114.4 billion, due to an increasein orders from Japan’s Ministry of Defense and for component parts for the Boeing 787.
Consolidated net sales increased ¥22.4 billion year on year to ¥144.8 billion, largely due to thegrowth in sales to Japan’s Ministry of Defense and of component parts for Boeing787.
Consolidated operating income increased ¥3.3 billion year on year to ¥13.5 billion largely as aresult of the increase in sales.

Gas Turbine & Machinery
Consolidated orders received increased ¥1.8 billion year on year to ¥85.9 billion,
attributable to the increase in orders for industrial gas turbines, natural gas
compression modules, and other products.
Consolidated net sales grew ¥6.5 billion year on year to ¥83.8 billion, due to anincrease in sales of hydraulic machinery, aircraft engine components, and otherproducts.
Despite the increase in sales, consolidated operating income fell ¥2.0 billion year on
year to ¥1.4 billion, due to the amortization of development costs for the aircraft engine
new program, R&D costs, and other factors.

Plant & Infrastructure
Consolidated orders received totaled ¥66.9 billion, a ¥20.7 billion increase year on
year, due to an increase in orders for boiler power plant projects and earth-moving
machinery.
Consolidated net sales grew ¥8.0 billion year on year to ¥47.2 billion, attributable tothe increase in overseas plant projects and other factors.
Despite the increase in sales, consolidated operating income declined ¥0.7 billion year
on year to ¥1.0 billion, due to the decline in profit margin, among other factors.

7

Motorcycle & Engine
Consolidated net sales decreased ¥1.9 billion year on year to ¥137.7 billion, as the decline inmotorcycle sales in countries in Latin America and Thailand negated the increase in motorcycle sales
to Indonesia and countries in Europe.
Consolidated operating income totaled ¥1.0 billion, a ¥1.5 billion year-on-year decline, largely
attributable to the drop in sales and profit margin.

Precision Machinery
Consolidated orders received grew ¥3.0 billion to ¥64.8 billion. The increase was due
to growth in orders for industrial robots for the automotive industry, a rise in orders ofhydraulic components for the construction machinery market in Japan, and otherfactors.
Consolidated net sales increased ¥8.1 billion year on year to ¥63.7 billion,
attributable to the growth in sales for industrial robots for the automotive industry, arise in sales of hydraulic components for the construction machinery market in Japan,
and other factors.
Consolidated operating income was up ¥0.8 billion year on year to ¥5.1 billion, due tothe growth in sales and other factors.

Other Operations
Consolidated net sales increased ¥2.9 billion year on year to ¥64.1 billion.
Consolidated operating income decreased ¥0.1 billion year on year to ¥1.2 billion.

(2) Consolidated financial position
At September 30, 2014, consolidated assets totaled ¥1,630.9 billion, a ¥76.5 billion
increase from March 31, 2014. The increase was largely attributable to inventory growth
stemming from progress toward completion of construction jobs and capital expenditure that added
to property, plant and equipment. Consolidated liabilities at September 30, 2014, were¥1,248.4 billion, a ¥70.6 billion increase from March 31, 2014. The rise was largely due
to the increase in commercial paper and other interest-bearing debt, which offset the
decline in trade payables. At September 30, 2014, interest-bearing debt totaled ¥541.2
billion, an increase of ¥96.6 billion from March 31, 2014. At September 30, 2014,
consolidated net assets totaled ¥382.5 billion, a ¥5.8 billion increase from March 31,
2014, largely attributable to the posting of quarterly net income despite the payment ofdividends.

8

(3) Consolidated earnings outlook
Despite the opaque economic prospects in the eurozone and emerging countries, theeconomic environment surrounding the Group’s business remains solid. This, in tandemwith the fact that the yen has been weaker than initially expected, has prompted us torevise our consolidated earnings outlook for the current fiscal year ending March 31,
2015. We have increased our consolidated net sales forecast to ¥1,510.0 billion, up by¥20.0 billion from our previous forecast. We have similarly raised our profit forecasts,
as despite a drop in profits in the motorcycle business attributable to lower profit
margins in emerging countries, higher overall profits are expected as a result of the
yen’s depreciation, and other factors. Consequently, we now expect consolidated
operating income of ¥77.0 billion (up ¥4.0 billion versus the previous forecast),
consolidated recurring profit of ¥72.0 billion (up ¥6.0 billion), and consolidated net
income of ¥48.0 billion (up ¥5.5 billion).
Due to an unofficial order for a large overseas project in the Plant & Infrastructure
segment, we are forecasting consolidated orders received of ¥1,640.0 billion, up by¥50.0 billion versus our previous forecast.

The Company's earnings forecasts assume exchange rates of ¥105 to the US dollar and ¥135
to the euro.
In conjunction with these upward revisions to consolidated operating results, we haveincreased our forecast annual dividend by 1 yen per share versus our previous forecast.
As a result, we are now planning to pay an annual dividend of 8 yen per share (3 yeninterim dividend, 5 yen year-end dividend).

Note regarding consolidated earnings outlook
The above earnings outlook is based on information available at the time of
preparation, and includes risks and uncertainties. We therefore discourage making
investment decisions depending solely on this outlook. Actual earnings may differ
materially from this outlook, due to a variety of important factors stemming fromchanges the external environment and/or the Company’s internal environment.
Important factors that impact actual operating performance include, but are not limited
to, the economic situation surrounding the Company’s scope of business, foreignexchange rates, in particular the yen/dollar exchange rate, tax codes and otherregulatory system-related issues.

9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.

10

3. Consolidated Financial Statements(1) Consolidated balance sheets
Millions of yen
As of
As of
March 31, 2014
September 30, 2014
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
Total current assets
Fixed assets
Net property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Trade payables
Electronically recorded obligations-operating
Short-term debt
Income taxes payable
Accrued bonuses
Provision for losses on construction contracts
Other provisions
Advances from customers
Other
Total current liabilities
Long-term liabilities
Bonds payable
Long-term debt
Provisions
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities

11

47,949415,664
56,673
302,511
98,84887,211(3,104)
1,005,754

37,187410,291
58,844
343,607
106,999
107,264(2,939)1,061,255

383,912
17,262

401,304
16,824

148,210(710)
147,500
548,675
1,554,430

152,460(858)
151,601
569,730
1,630,986

252,107
3,756
53,92320,060190,757
18,71910,100310,775
22,11813,56010,535
137,598
104,714795,415

209,887
72,500154,688
6,481
17,637
9,364
9,708
151,777
200,737
832,782

110,000
141,343
4,064
97,04829,871
382,328
1,177,744

120,000
165,117
3,355
95,746
31,441
415,661
1,248,443

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

104,484
54,393
217,449(43)
376,284

104,484
54,393
220,811(51)
379,637

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

2,652(3,803)
6,416(18,509)(13,243)
13,645
376,686
1,554,430

3,058(2,883)
5,902(17,520)(11,443)
14,348382,542
1,630,986

12

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income
Millions of yen
Six months ended
September 30, 2013
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
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss, net
Other
Total non-operating expenses
Recurring profit
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, 2014

595,077
486,913108,164

633,422526,539
106,883

22,29018,187332
40,51281,323
26,84023,68918,016
41,987
83,69323,189

475
275
5,016
1,850
7,617

292
176
5,739
2,214
8,422

2,018
7,583
2,067
11,66922,78822,788
8,777
14,0101,008
13,001

1,894
646
3,108
5,648
25,96325,963
6,511
19,451
1,266
18,185

Consolidated statements of comprehensive income
Millions of yen
Six months ended
September 30, 2013
Income before minority interests
Other comprehensive income
Net unrealized gains on securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
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

13

Six months ended
September 30, 2014

14,01019,451

1,231
(817)
7,084
320

429
959
3,555
802

8,119

(4,016)

15,93829,94928,1811,767

1,730
21,181
19,985
1,196

(3) Consolidated cash flow statements
Millions of yen
Six months ended
September 30, 2013
Cash flow from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expense
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(Increase) decrease in other current assets
Increase (decrease) in other current liabilities
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 and affiliate
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
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 due to changes in fiscal
period of consolidated subsidiaries
Cash and cash equivalents at end of period

14

Six months ended
September 30, 2014

22,78817,931(7,672)(4,067)(750)
2,018(5,016)24,269(40,461)(37,953)
12,165(11,457)(10,961)825(38,342)740(2,134)(5,868)(45,605)

25,963
21,530(10,717)
(603)
(468)
1,894
(5,739)4,990(40,597)(23,713)
12,514(18,523)(16,628)
2,665(47,433)486(2,071)(11,788)(60,807)(41,576)(28,757)

541

471

(36)
86
(721)
(527)
(28)
46
308
(41,907)

(49)
2
(472)
(42)
(33)
94
(919)
(29,707)86,616
7,000(23,652)
20,000(7)(8,344)(436)(192)
80,983(699)(7,229)36,971

105,340
37,019(73,379)
20,000(9)(10,006)(487)(79)
78,398227(11,889)
45,431804

122

30,546

33,664

(4) Notes on financial statements

Notes on the going-concern assumption
Not applicable
Notes on significant changes in the amount of shareholders’ equity
Not applicable
Segment information and others
Segment information
1. Six months ended September 30, 2013 (April 1, 2013 – September 30, 2013)(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)

39,55059,990122,354
77,36839,241
139,705
55,636
61,229595,077
595,077

921
1,455
1,035
8,457
8,083
313
5,615
16,47242,354(42,354)-

40,471
61,445
123,389
85,82647,325140,018
61,25277,701
637,431(42,354)595,077

1,543
3,752
10,279
3,509
1,705
2,592
4,244
1,382
29,009(2,169)26,840Millions of yen
Amount(125)(2,044)

IncomeIntersegment transactions
Corporate expenses*

Total(2,169)*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 applicable15

2. Six months ended September 30, 2014 (April 1, 2014 – September 30, 2014)(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)

34,87656,915
144,842
83,89647,245
137,728
63,77464,143
633,422
633,422

909
923
1,181
4,917
7,534
349
6,878
15,72738,422(38,422)-35,786
57,839146,024
88,81454,779138,077
70,652
79,870671,844(38,422)
633,422

(708)
1,201
13,593
1,495
1,005
1,052
5,129
1,218
23,988(799)
23,189Millions of yen
AmountIncomeIntersegment transactions(25)
Corporate expenses*
(774)
Total
(799)
* 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 applicable16

4. Supplementary information(1) Orders and sales (consolidated)
Orders received
Six months ended
September 30, 2013

Six months ended
September 30, 2014

Year ended March 31,
2014

Segment

million yen% of total
million yen% of total
million yen% of total
Ship & Offshore Structure
30,732
5.1
77,192
10.9
117,872
8.0
Rolling Stock
75,073
12.6
91,59812.9
133,049
9.1
Aerospace
96,16816.2
114,48916.2
286,383
19.6
Gas Turbine & Machinery
84,15714.1
85,96412.1
222,013
15.2
Plant & Infrastructure
46,185
7.7
66,9549.4
103,9127.1
Motorcycle & Engine
139,705
23.5
137,72819.4
322,248
22.1
Precision Machinery
61,72410.4
64,801
9.1
127,297
8.7
Other
59,056
9.9
67,8489.6
142,684
9.8
Total
592,804
100.0
706,576
100.0
1,455,462
100.0
Note: The Motorcycle & Engine segment’s orders received are equal to its net sales as production is based mainlyon estimated demand.

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, 2013
million yen% of total
39,5506.6
59,99010.0
122,35420.5
77,36813.0
39,241
6.5
139,705
23.4
55,636
9.3
61,22910.2
595,077
100.0

Six months ended
September 30, 2014
million yen% of total
34,876
5.5
56,9158.9
144,84222.8
83,89613.2
47,245
7.4
137,728
21.7
63,77410.0
64,143
10.1
633,422100.0

Year ended March 31,
2014
million yen% of total
80,863
5.8
147,951
10.6
280,73720.2
189,241
13.6
103,898
7.4
322,248
23.2
123,2768.8
137,2649.9
1,385,482
100.0Year ended March 31,
2014
million yen% of total
161,13410.7
364,65424.3
450,58130.0
295,100
19.6
170,737
11.3
25,821
1.7
32,2342.1
1,500,264
100.0

Six months ended
September 30, 2014
million yen% of total
209,135
13.0
409,98125.5
425,57126.5
305,877
19.0
191,287
11.9
26,848
1.6
35,9342.2
1,604,637
100.0

Six months ended
September 30, 2013
million yen% of total
113,830
8.1
383,11727.5
413,47829.7
248,670
17.9
176,71112.7
27,8872.0
24,626
1.7
1,388,323
100.0

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

17

(2) Net sales by geographic area (consolidated)
Six months ended September 30, 2013 (April 1, 2013 – September 30, 2013)
Japan
United States
EuropeAsia
Other areas
Total

Millions of yen
44.2%
22.1%
6.7%
17.8%
9.0%
100.0%

263,067
131,578
40,393
106,470
53,567595,077

Six months ended September 30, 2014 (April 1, 2014 – September 30, 2014)
Japan
United States
EuropeAsia
Other areas
Total

Millions of yen
40.8%
24.2%
7.6%
18.2%
8.9%
100.0%

258,659
153,779
48,525
115,455
57,002
633,42218

(3) Supplementary information on earnings forecasts for the fiscal year ending March 31,
20151) Consolidated earnings outlook
Billions of yen

Net sales
Operating income
Recurring profit
Net income
Orders received
Before-tax ROIC (%)

Outlook for the year ending March 31, 2015 (fiscal 2014)
Revised forecast
Forecast issued
Change(A)
July 30, 2014 (B)(A – B)
1,510.0
1,490.0
20.0
77.0
73.0
4.0
72.0
66.0
6.0
48.0
42.5
5.5
1,640.0
1,590.0
50.0
9.3%
8.6%
0.7%

Fiscal 2013 (ended
March 31, 2014)(actual)1,385.4
72.3
60.6
38.6
1,455.4
8.1%

Notes: 1. Outlook’s assumed foreign exchange rates: ¥105 = US$1, ¥135= 1 euro
2. Before-tax ROIC = (income before income taxes + interest expense) / invested capital.

2) Outlook by reportable segment(a) Net sales and operating income (loss)
Billions of yen
Outlook for the year ending March 31, 2015 (fiscal 2014)
Revised forecast
Forecast issued
Change(A)
July 30, 2014 (B)(A – B)

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

Net sales
95.0
135.0
330.0
230.0
120.0
320.0
140.0
140.0
1,510.0

Operatingincome(loss)
2.0
6.0
30.0
10.0
6.0
13.0
12.0
5.0
(7.0)
77.0

Net sales
85.0
135.0
320.0
230.0
120.0
320.0
140.0
140.0
1,490.019

Operatingincome(loss)
0.0
6.0
27.0
9.0
6.0
16.0
12.0
4.0
(7.0)
73.0

Net sales
10.0
10.0
20.0

Operatingincome(loss)
2.0
3.0
1.0
(3.0)
1.0
4.0

Fiscal 2013 (ended
March 31, 2014)(actual)
Net sales
80.8
147.9
280.7
189.2
103.8
322.2
123.2
137.2
1,385.4

Operatingincome(loss)
(2.0)
7.5
26.2
10.4
6.3
16.1
10.4
4.4
(7.2)
72.3

(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, 2015 (fiscal 2014)
Revised outlook
Forecast issued
Change(A)
July 30, 2014 (B)(A – B)
150.0
150.0
150.0
180.0
(30.0)
310.0
300.0
10.0
240.0
230.0
10.0
190.0
130.0
60.0
320.0
320.0
140.0
140.0
140.0
140.0
1,640.0
1,590.0
50.0Billions of yen
Fiscal 2013 (ended
March 31, 2014)(actual)
117.8
133.0
286.3
222.0
103.9
322.2
127.2
142.6
1,455.4

Outlook for the year ending March 31, 2015 (fiscal 2014)
Revised outlook
Forecast issued
Change(A)
July 30, 2014 (B)(A – B)Fiscal 2013 (ended
March 31, 2014)(actual)(c) Before-tax ROIC(%)

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

5.4
7.9
20.8
5.2
13.5
7.0
17.9
9.3

0.2
7.9
17.7
5.1
13.5
9.2
16.8
8.6

20

5.2
3.1
0.1
(2.2)
1.1
0.7

3.4
10.2
19.6
4.6
14.9
1.4
17.5
8.1