Report of Earnings and Financial Statements for theNine Months Ended December 31, 2022 (Consolidated)<IFRS>
February 10, 2023
Listed company’s name:

Kawasaki Heavy Industries, Ltd.

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

TSE (Prime Market), and NSE (Premier Market)
7012
https://global.kawasaki.com/
Yasuhiko Hashimoto, President and Chief Executive Officer
Takashi Torii, Executive Officer, Group Manager, Corporate Communication
Group Department+81 3-3435-2130

Tel:

Scheduled dates:
Submission of quarterly securities filing:
Commencement of dividend payments:
Supplementary materials to quarterly earnings:
Quarterly earnings presentation:

February 10, 2023-

Available
Conducted (for institutional investors, analysts and thepress)(Amounts in millions of yen rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022
(April 1, 2022 – December 31, 2022)(1) Operating Results(Percentage figures represent changes versus the year-ago period)
Revenue

Nine Months Ended
December 31, 2022
Nine Months Ended
December 31, 2021

Business profit

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

1,196,330

15.2

80,885181.4

72,127191.2

53,727314.0

1,038,686-

28,746-

24,771-

12,977-

Profit attributable toowners of parent
Millions of%yenNine Months Ended
December 31, 2022
Nine Months Ended
December 31, 2021

Profit before tax

Total comprehensive
incomeMillions of%yen

Basic earnings
per shareyen

Diluted earnings
per shareyen

52,512366.8

63,600189.0313.55-

11,249-22,003

-

67.22

-

1

(2) Financial Condition
Total assets

Total equity

Equity attributable toowners of parent

Millions of yen

Millions of yen

Millions of yen

Ratio of equity
attributable toowners of parent tototal assets%

December 31, 2022

2,436,446

577,300

558,902

22.9

March 31, 2022

2,174,630

524,891

505,484

23.2

2. Dividends

Record date or term

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

End of firstquarteryen

End of second
quarter
yen

-

20.00

-

-

30.00

-

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

Full year
yen

20.00

40.00

40.00

70.00

Note: Revisions to the most recently announced dividend forecast: None
In the Company’s articles of incorporation, the dates of record are set as the last day of the fiscal second
quarter and the last day of the fiscal year.

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2023
(April 1, 2022 – March 31, 2023)
Revenue

Full year

Millions ofyen
1,750,000%
16.6(Percentage figures indicate change compared with the previous fiscal year)
Profit attributable
Basic earnings
Business profit
Profit before tax
to owners ofper share
parentMillions of%Millions of%Millions of
%
yen
yen
yen
yen
86,000 183.2
78,000 181.9
54,000 327.3
322.43

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

2

Notes1. Changes affecting the status of material subsidiaries (scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates(1) Changes in accounting policies required by IFRS: None
(2) Changes in accounting policies due to other reasons: None
(3) Changes in accounting estimates: None
3. Number of shares issued and outstanding (common shares)(1) Number of shares issued as of period-end (including treasury shares)
December 31, 2022:
167,921,800 shares
March 31, 2022:
167,921,800 shares(2) Number of shares held in treasury as of period-end
December 31, 2022:
439,900 shares
March 31, 2022:
449,527 shares(3) Average number of shares during respective periods
December 31, 2022:
167,476,424 shares
December 31, 2021:
167,325,170 shares*The quarterly report of earnings and financial statements is exempted from quarterly review
procedures based on the Financial Instruments and Exchange act.
*Appropriate Use of Financial Forecasts and Other Important Matters
Forward-Looking Statements
These materials contain various forward-looking statements and other forecasts regarding performanceand other matters. Such statements are based on information available at the time of their preparation, anddo not mean that the Company promises to achieve these figures. Actual results may differ from thoseexpressed or implied by forward-looking statements due to a range of factors. For assumptions underlying
earnings forecasts and other information regarding the use of such forecasts, refer to “1. Qualitative
Information about Financial Statements (3) Consolidated earnings forecast” on page 11 in the
Accompanying Materials.
How to Obtain Supplementary Briefing Material on Quarterly Financial Results and Details of theQuarterly Financial Results Briefing
The Company plans to conduct a briefing for institutional investors, analysts and the press on Friday
February 10, 2023, and to post the briefing material on quarterly financial results to be used for the briefing
on TDnet and the Company’s website simultaneously with the announcement of financial results.
Adoption of International Financial Reporting Standards (IFRS)The Group has applied the IFRS from the first quarter of the consolidated fiscal year ending March 31,
2023. Financial figures for the third quarter of the previous consolidated fiscal year and the previous
consolidated fiscal year are also presented in accordance with IFRS. The differences between IFRS andJapanese GAAP regarding financial figures, refer to “2. Condensed Quarterly Consolidated Financial
Statements and Notes (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements(First-time adoption of IFRS)” on page 19 in the Accompanying Materials.

3

Accompanying Materials – Contents
1. Qualitative Information about Financial Statements

5(1) Consolidated operating results

5(2) Consolidated financial condition

10(3) Consolidated earnings forecast

11

2. Condensed Quarterly Consolidated Financial Statements and Notes

12(1) Condensed Quarterly Consolidated Financial Position

12(2) Condensed Quarterly Consolidated Statement of Profit and Loss and13

Condensed Quarterly Consolidated Statement of Comprehensive Income(3) Condensed Quarterly Consolidated Statement of Changes in Equity

15(4) Condensed Quarterly Consolidated Statement of Cash Flow

17(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements

18(Notes on the going-concern assumption)

18(Segment Information)

18(First-time adoption of IFRS)

19
36

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

436

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

(1) Consolidated operating results
Although personal consumption in the United States is losing its previous momentum, the global
economy as a whole continues to grow moderately due to an increase in air travel demand resulting
from easing of travel restrictions in each country and other factors. In Japan, the economy continues
to promote a balance between measures against the infection and socio-economic activities and to
recover led by domestic demand such as service consumption and capital investment.
On the other hand, while supply constraints with a focus on semiconductors are improving,inflationary pressures such as high raw material prices continue, and there are concerns about an
economic recession due to monetary tightening by central banks around the world. In addition, inJapan, it is necessary to continue to closely monitor to the economic outlook since a historicdepreciation of yen has been corrected.
In this business environment, the Group’s consolidated orders received during the third quarter ofthis consolidated fiscal year increased mainly in the Rolling Stock segment and the Powersports &Engine segment. Revenue increased from the same period of the previous fiscal year as a whole, due
to higher sales in the Powersports & Engine segment, the Aerospace Systems segment, etc.
Business profit increased year on year due to increases in the Powersports & Engine segment, theAerospace Systems segment, and the Energy Solution & Marine Engineering segment, despite
decreases in the Precision Machinery & Robot segment and the Rolling Stock segment. Profit
attributable to owners of parent increased due to an increase in business profit despite a deterioration
in foreign exchange gains and losses.
As a result, the Group’s consolidated orders received increased by ¥450.1 billion year on year to¥1,476.5 billion, consolidated revenue increased by ¥157.6 billion year on year to ¥1,196.3 billion,
business profit increased by ¥52.1 billion year on year to ¥80.8 billion, profit before tax increased by¥47.3 billion year on year to ¥72.1 billion, and profit attributable to owners of parent increased by¥41.2 billion year on year to ¥52.5 billion.

5

Third -quarter consolidated operating performance is summarized by segment below.
From the third quarter of this consolidated fiscal year, the previous reportable segment of"Motorcycle & Engine" has been changed the name to "Powersports & Engine" for the purpose ofaligning with the Group's business strategy. This change is a change in the name of the reportablesegments and it has no impact on segment information.

Segment Information
Segment revenue, business profit (loss), and orders received (billions of yen)
Nine months ended December 31

2021(A)

2022(B)

Orders received

Change (B – A)

Nine months ended
December 31

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Systems

204.9

(9.5)

238.6

13.7

33.6

Rolling Stock

89.1

2.9

92.3

0.7

201.7

(9.6)

212.3

179.5

11.7

Engine

309.5

Other

2021

2022

Change(A)(B)(B – A)

23.2

160.8

200.7

39.9

3.2

(2.1)

42.2

294.3

252.1

9.3

10.5

18.9

253.2

301.8

48.6

179.1

7.4

(0.3)

(4.3)

197.4

197.6

0.1

30.1

413.7

53.7

104.2

23.6

309.5

413.7

104.1

53.7

4.5

60.0

3.3

6.2

(1.2)

63.0

68.1

5.0

-

(1.4)

-

(7.4)

-

(6.0)

-

-

-

1,038.6

28.7

1,196.3

80.8

157.6

52.1

1,026.4

1,476.5

450.1

Aerospace

Energy Solution& Marine
Engineering
Precision
Machinery &RobotPowersports &Adjustments
Total

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

6

Aerospace Systems
Regarding the business environment surrounding the Aerospace Systems segment, demand for
Ministry of Defense in Japan is expected to increase going forward under the Ministry of Defense’s
policy of drastic strengthening of defense capabilities. With respect to commercial aircraft, demand
for the passenger, which had been sluggish due to the spread of the infection by COVID-19 pandemic,
has been making significant progress toward recovering due to an increase the number of countries
prioritizing the resumption of economic activities.
Amid such an operating environment, consolidated orders received increased by ¥39.9 billion year
on year to ¥200.7 billion due to an increase in component parts of jet engines for commercial aircraftand orders received from the Ministry of Defense in Japan.
Consolidated revenue increased by ¥33.6 billion year on year to ¥238.6 billion mainly due to anincrease in component parts of jet engines for commercial aircraft.
Business profit came to ¥13.7 billion, improving ¥23.2 billion year on year, mainly due to an
improvement in component parts of jet engines for commercial aircraft.
Rolling StockRegarding the business environment surrounding the Rolling Stock segment, although there was an
impact of a decrease in the number of railway users due to the spread of the infection by COVID-19
pandemic, the number of the users is expected to recover with progress in measures against infection
by COVID-19 pandemic, and the replacement plan of aging railcars has been moving forward in Japanand overseas. On the other hand, although the impact on the current situation is limited, we need tokeep a close watch on shortages of electronic components, logistics disruptions, and rising raw
materials prices, while they appear to be converging. In the medium and long term, however, relatively
stable growth is expected around the world due to development of urban transportation as anenvironmental protection measure and to ease congestion in large cities caused by increasing
population concentration, as well as demand for railway infrastructure following economic
development in Asian countries.
Amid such an operating environment, consolidated orders received increased by ¥252.1 billion to¥294.3 billion compared to the same period of the previous fiscal year due to orders for the large-scale
project such as new generation subway cars for the New York City Transit and new commuter cars
for the domestic market.
Consolidated revenue increased by ¥3.2 billion year on year to ¥92.3 billion mainly due to anincrease in sales of railcars for Asia, despite a decrease in sales of railcars for domestic market.
Business profit came to ¥0.7 billion, decreasing ¥2.1 billion year on year, mainly due to the impact
of delays in the process of railcar’s project for Long Island Rail Road in the United States, despite anincrease in the revenue mainly due to an increase in sales of railcars for Asia.

7

Energy Solution & Marine Engineering
The business environment surrounding the Energy Solution & Marine Engineering segment remains
on a recovery track as the global economy moves from stagnation due to the COVID-19 pandemic tonormalization. Demand for distributed power sources in Japan and overseas and, for energy
infrastructure development in emerging countries, remains strong, while there is ongoing demand forthe replacement of aging facilities for refuse incineration plants in Japan. Also, ongoing demand is
expected due to factors such as an increase in orders for LPG/NH3 carriers. In addition, there is a
growing worldwide trend toward achieving carbon neutrality, and contacts and requests forcooperation are increasing regarding decarbonization solutions, including hydrogen products of theCompany’s strength. On the other hand, besides the uncertainty about the current situation, such as
the availability of fuel gas required for the operation of power generation facilities, it is necessary to
pay attention to the impact on orders and revenues due to the recent persistently high prices of raw
material, equipment, fuel, and transportation.
Amid such an operating environment, consolidated orders received increased by ¥48.6 billion fromthe same period of the previous fiscal year to ¥301.8 billion mainly due to an increase in orders for
power generation facilities and orders for large-scale projects such as the domestic waste disposal
facilities maintenance and operation business.
Consolidated revenue increased by ¥10.5 billion year on year to ¥212.3 billion mainly due to anincrease in the volume of work of energy business and submarines for Ministry of Defense in Japan,
despite a decrease in the volume of work of domestic waste disposal facilities.
Business profit came to ¥9.3 billion, improving ¥18.9 billion year on year, mainly due to an
improvement in share of profit and loss of investments accounted for using equity method, despite adecrease in the volume of work of domestic waste disposal facilities.
Precision Machinery & Robot
Regarding the business environment surrounding the Precision Machinery & Robot segment, in the
precision machinery field, while the performance has continued to be strong in the construction
machinery market outside China, demand in the Chinese construction machinery market was sluggish
due to the effects of lockdowns associated with the Zero-COVID-19 policy and other factors. In the
robotics field, while the performance of robots for semiconductor manufacturing equipment is stayfavorable, we need to keep a close watch on the stabilization of demand for some semiconductors suchas for smartphones, and future trends in demand for robots for semiconductor manufacturing
equipment due to the impact of economic frictions between the United States and China. Generalindustrial robots also have continued high demand for the automation investment.
Amid such an operating environment, consolidated orders received of ¥197.6 billion was on parwith the previous year's result, due to an increase in various robots, despite a decrease in hydraulicequipment for the Chinese construction machinery market.
8Consolidated revenue of ¥179.1 billion was on par with the previous year's result, mainly due to anincrease in the revenue of various robots due to sales expansion, despite a decrease in hydraulicequipment for the Chinese construction machinery market.
Business profit decreased by ¥4.3 billion year on year to ¥7.4 billion due to an increase in soaring
costs of electronic components and materials, a temporary decrease in operations during the
lockdowns in China, and a decrease in hydraulic equipment for the Chinese construction machinery
market.
Powersports & Engine
The business environment surrounding the Powersports & Engine segment continues to be affectedby the COVID-19 pandemic. Although logistics disruptions are heading toward improving, we needto keep a close watch on the impact on product supply due to ongoing shortages of semiconductors
and raw materials. Although demand in the United States and Europe, the major markets, is slightly
slowing down, it is going strong for the time being. In addition, the Southeast Asian market has been
recovering from the previous fiscal year as a whole, although it varies by country.
Amid such an operating environment, consolidated revenue increased by ¥ 104.2 billion year on
year to ¥ 413.7 billion mainly due to an increase in motorcycles for North America and Southeast Asia,and four-wheeled vehicles for North America, as well as a weaker yen on foreign exchange rates,
despite a decrease in motorcycles for Europe due to shortage of product supply.
Business profit increased by ¥23.6 billion year on year to ¥53.7 billion due to the steady progressin price pass-through as well as the sales expansion of motorcycles and four-wheeled vehicles and theimpact of foreign exchange rates, despite a rise in raw materials and logistics costs and an increase in
fixed costs.
Other Operations
Consolidated revenue increased by ¥ 6.2 billion year on year to ¥ 60.0 billion.
Business profit decreased by ¥ 1.2 billion year on year to ¥ 3.3 billion.
In the Group Vision 2030, the Group will focus on three fields; “A Safe and Secure RemotelyConnected Society”, “Near-Future Mobility” and “Energy and Environmental Solutions” and willtransform our business structure into a form which promises faster growth. The Group is making
steady progress in new businesses, such as healthcare business which is developed surgical support
robots and automated PCR testing services, and moreover the development of delivery robots andunmanned transport helicopters as well as the promotion of hydrogen-related projects.

9(2) Consolidated financial condition
Assets, liabilities, and equity
1. Assets
Current assets were ¥1,570.0 billion, ¥ 249.8 billion increase from the previous fiscal year mainly
due to an increase in inventories and trade receivables.
Non-current assets were ¥866.3 billion, ¥11.9 billion increase from the previous fiscal year mainly
due to an increase in investments accounted for using equity method.
As a result, total assets were ¥2,436.4 billion, ¥261.8 billion increase from the previous fiscal year.

2. Liabilities
Interest-bearing debt was ¥721.7 billion, ¥167.8 billion increase from the previous fiscal year.
Liabilities were ¥1,859.1 billion, ¥209.4 billion increase from the previous fiscal year mainly due
to an increase in interest-bearing debt.

3. Equity
Equity was ¥577.3 billion, ¥52.4 billion increase from the previous fiscal year mainly due to therecording of profit attributable to owners of parent.

Cash Flows
Cash and cash equivalents (Hereinafter referred to as “net cash”) during the third quarter of thisconsolidated fiscal year were ¥ 87.9 billion, an increase of ¥ 19.3 billion compared to the same periodof the previous fiscal year. The cash flow situations and relevant factors during the third quarter of thisconsolidated fiscal year are stated below.

1. Cash flows from operating activities
Cash outflows from operating activities were ¥ 113.1 billion, an improving of ¥ 22.5 billion
compared to the same period of the previous fiscal year. Major sources of operating cash flows
included depreciation and amortization of ¥ 55.9 billion and an increase in trade and other payablesof ¥ 26.1 billion. Major uses of operating cash flows included an increase in inventories of ¥106.0
billion, an increase in trade and other receivables of ¥ 64.2 billion, and an increase in advance paymentof ¥ 29.4 billion.

2. Cash flows from investing activities
Investing activities used net cash of ¥53.2 billion, which is ¥6.8 billion more than in the same periodof the previous fiscal year. This was mainly due to purchase of property, plant and equipment.

3. Cash flows from financing activities
Financing activities provided net cash of ¥151.5 billion, which is ¥21.8 billion more than in thesame period of the previous fiscal year. This was mainly due to net increase in short-term borrowings.

10(3) Consolidated earnings forecast
The Group voluntarily applies the IFRS from the first quarter of the consolidated fiscal year,
therefore, has calculated the consolidated earnings forecast for the fiscal year ending March 2023,
based on IFRS.
Due to the increase in the revenue and the decrease in the risk of the supply chain of the Powersports& Engine segment, and the strong recovery in the Aerospace Systems segment market, the company
is forecasting revenue of ¥1,750.0 billion, which is ¥30.0 billion increase from the previous forecast(November 10), and business profit of ¥86.0 billion, which is ¥10.0 billion increase from the previous
forecast.
In addition, along with the revision of business profit mentioned above, the Company is forecasting
profit before tax of ¥78.0 billion, profit attributable to owners of parent of ¥54.0 billion, ROIC of
7.4%, and ROE of 10.2%.
The forecast of consolidated orders received is expected to be ¥1,950.0 billion, which is ¥50.0
billion increase from the previous forecast.
In this forecast, exchange rates are assumed to be ¥130 to the U.S. dollar and ¥135 to the euro.

Note regarding consolidated earnings forecast
The above earnings forecast is based on information available at the time of preparation, andincludes risks and uncertainties. We therefore discourage making investment decisions depending
solely on this forecast. Please note that actual earnings may differ materially from this forecast, due toa variety of important factors stemming from changes the external environment and/or the Company’s
internal environment. Important factors that impact actual operating performance include, but are notlimited to, the economic situation surrounding the Company’s scope of business, foreign exchange
rates, in particular the yen/dollar exchange rate, tax codes and other regulatory system-related issues.

112. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Financial Position
Transition date
(As of April 1, 2021)
AssetsCurrent assets
Cash and cash equivalents
Trade
other
receivables
Cashandandcash
equivalents
Contract assets
Inventories
Income equivalents
taxes receivable
cash
Other financial assets
Other current assets
cash
equivalents
Total current
assetsNon-current
assetscash equivalents
Property, plant and equipment
Intangible assets
cash
equivalents
Right-of-use
assetsInvestments accounted for using equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

Millions of yen
As ofMarch 31, 2022

As ofDecember 31, 2022

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

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

87,998479,121
135,722
729,479
5,832
14,582
117,355
1,570,091

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

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

445,786
62,29562,00678,67770,817102,074
44,697866,354
2,436,446

Liabilities and equity
Liabilitiesand equity
Liabilities
Current liabilities
Trade and other payables
Liabilities
equity and other financial liabilities
Bonds,andborrowings
Income taxes payable
Contract liabilities
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds, borrowings and other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities

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

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

433,134
412,756
12,134274,197
20,356
149,538
1,302,118

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

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

430,198
110,2442,020
986
13,578557,027
1,859,145

EquityEquity attributable to owners of parent
Share capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

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

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

104,484
55,773365,304(1,105)34,445558,902
18,397577,300
2,436,44612

(2) Condensed Quarterly Consolidated Statement of Profit and Loss andCondensed Quarterly Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statements of Profit and Loss
For nine months ended December 31, 2022 and 2021
Millions of yen

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted for using equity
methodOther income
Other expenses
Business profit
Finance income
Finance costs
Profit before tax
Income tax expense
ProfitProfit attributable to:
Owners of parent
Non-controlling interests

Nine months ended
December 31, 2021
1,038,686
849,222
189,464
148,382

Earnings per share
Basic earnings per share

Nine months ended
December 31, 2022
1,196,330
949,501
246,828
168,807(15,179)

3,935

5,682
2,839
28,746968
4,942
24,771
11,793
12,9772,818
3,890
80,885
1,363
10,12072,127
18,39953,727

11,2491,728

52,512
1,214

67.22

313.55For three months ended December 31, 2022 and 2021
Millions of yen

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted for using equity
methodOther income
Other expenses
Business profit
Finance income
Finance costs
Profit before tax
Income tax expense
ProfitProfit attributable to:
Owners of parent
Non-controlling interests
Earnings per share
Basic earnings per share

13

Three months ended
December 31, 2021
357,648
286,12171,52752,487

Three months ended
December 31, 2022
436,584
329,845
106,738
58,953(8,157)

2,932

92
(131)
11,106
226
1,335
9,997
5,260
4,736

379
1,043
50,054(7,249)6,623
36,1806,886
29,294

4,028
708

28,749544

24.05

171.65

Condensed Quarterly Consolidated Statement of Comprehensive Income
For nine months ended December 31, 2022 and 2021
Millions of yen

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments accounted
for using equity method
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income

Nine months ended
December 31, 2021
12,977

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

Nine months ended
December 31, 2022
53,727660(1,036)

(21)

528

(1)

0

638

(507)

(230)
4,038

2,146
7,794

4,579

439

8,387
9,025
22,003

10,3809,872
63,60020,023
1,980

62,0781,522

For three months ended December 31, 2022 and 2021
Millions of yen

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments accounted
for using equity method
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

14

Three months ended
December 31, 2021
4,736

Three months ended
December 31, 2022
29,294

(128)

(451)

4

(152)

(0)

238

(125)

(365)

(46)
2,680

9,352
(12,469)

2,329(2,352)

4,963
4,838
9,575

(5,470)(5,835)23,4588,852
722

23,502(44)

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
For nine months ended December 31, 2021 (April 1, 2021 – December 31, 2021)
Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2021
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2021

Share capital

Capital surplus

104,484

54,542Retainedearnings

299,409
11,249Treasury shares

Remeasurementsof defined
benefit plans

Financial assets
measured at fairvalue throughothercomprehensive
income

(136)

-

4,025

(9)
(9)

636
636

9

(607)

11,2491,916(1,025)33

4(3,357)598(936)

104,484984

150(2,609)

(991)

9

(607)

55,526

308,049(1,127)-

4,054

Total equity
attributable toowners ofparentNon-controllinginterests

462,146
11,2498,774
20,023
1,916(1,025)37(3,357)-

17,498
1,728
251
1,980

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2021
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2021

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations

(179)

-

3,846

(413)
(413)

8,560
8,560

8,774
8,774

Total

(598)

(376)

(936)
(286)

Total

479,645
12,977
9,025
22,003
1,916(1,025)37(3,733)
-

(936)

(286)

(286)

(286)

0
0

0
(884)

150
(3,501)

(213)
(589)

(63)
(4,091)

(879)

8,560

11,735

478,668

18,889497,55815(286)

For nine months ended December 31, 2022 (April 1, 2022– December 31, 2022)
Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2022

Share capital

Capital surplus

104,484

55,525Retainedearnings

320,671
52,512

Treasury shares

Remeasurementsof defined
benefit plans

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

-

4,435

538
538

(1,007)(1,007)(538)

59

52,512(3)
26(0)(8,394)479

248

104,484247

34(7,879)

23

(538)

59

55,773365,304(1,105)-

3,487

Total equity
attributable toowners ofparentNon-controllinginterests

19,407
1,214
307
1,522

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
ProfitOther comprehensive income
Comprehensive income
Issuance of new shares
Purchase of treasury shares
Disposal of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of December 31,
2022

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations(284)

21,78025,931

1,546
1,546

8,488
8,488

9,565
9,565

505,484
52,512
9,565
62,078

(479)

(3)
26
(8,394)
-

Total

248

(561)

Total

524,891
53,727
9,872
63,600(3)
26(8,955)
-

366

366

(2,079)(2,079)

(259)

(11)

(571)

(571)

(571)

(571)

(1,050)34(8,659)0(2,532)

34(11,191)

34,445558,902

18,397577,300

690

30,26816(571)

(4) Condensed Quarterly Consolidated Statement of Cash Flow

Cash flows from operating activities
ProfitDepreciation and amortization
Impairment losses
Finance income and finance costs
Share of loss (profit) of investments accounted for using equity method
Loss (gain) on sale of fixed assets
Income tax expense
Increase (decrease) in retirement benefit liability
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Decrease (Increase) in advance payment
Increase (decrease) in contract liabilities
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for equity method investment and purchase of other financial
assetsProceeds from equity method investment and sale of other financial
assetsPayments for acquisition of subsidiaries
Proceeds from acquisition of subsidiaries
Decrease due to loss of control over subsidiaries
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease liabilities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Dividends paid
Proceeds from fluidity of lease receivables
Repayment of payables under fluidity lease receivables
Dividends paid to non-controlling interests
Net decrease (increase) in treasury shares
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

17

Millions of yen
Nine months ended
Nine months ended
December 31, 2021
December 31, 2022
12,97756,962295
2,047
15,179790
11,793
4,051(18,616)(35,472)(86,461)(48,539)(28,299)
17,212(24,480)(120,559)
682
302(3,062)(12,999)(135,635)

53,72755,980405
3,137(3,935)518
18,3992,771(64,277)(26,589)(106,083)
26,151(29,416)
14,784(40,641)(95,068)
1,131
327(4,286)(15,221)(113,118)(42,393)
2,373(38,749)
1,981(1,162)(6,313)

1,574

80

(8)
489
(7,325)(46,451)(525)(3,224)(6,515)(53,266)

161,671(10,572)
11,000(17,001)
10,000(30,000)(3,129)36,230(23,293)
(376)
(953)
(3,817)
129,757(1,177)(53,507)
122,166
68,658177,841(10,993)
12,500(18,500)
9,000(20,000)(7,982)
47,139(32,302)(561)
0(4,579)151,561(5,690)(20,513)
108,51187,998(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements

Notes on the going-concern assumption
Not applicable
Segment information
For nine months ended December 31, 2021 (April 1, 2021 – December 31, 2021)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Finance costs
Profit before tax

EnergyPrecision
Solution &Powersports
Machinery & & Engine
MarineRobot
Engineering

Rolling
Stock

Millions of yen
Other

Total

Eliminations Consolidated
and
total
corporate *2

204,907

89,152201,779

179,531309,546

53,7691,038,686-

1,038,686

5,331

5

10,39812,401551

14,09942,788(42,788)-

210,239

89,157

212,178

191,933

310,097

67,8691,081,474(42,788)

1,038,686(9,536)

2,985(9,612)

11,74630,127

4,529

30,240(1,494)28,746968(4,942)
24,771

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of negative ¥ 1,494 million include negative ¥ 377 million for intersegment
transactions and negative ¥ 1,117 million for general and administrative expenses not attributed reportablesegments.
3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses,
share of profit and loss of investments accounted for using equity method, other income, and other expenses
from revenue.

For nine months ended December 31, 2022 (April 1, 2022– December 31, 2022)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Finance costs
Profit before tax

Rolling
Stock

EnergyPrecision
Solution & Machinery& Powersports
Marine& Engine
Robot
Engineering

Millions of yen
Other

Total

Eliminations Consolidated
and
total
corporate *2

238,600

92,359212,353

179,189413,788

60,0391,196,330-

1,196,330

7,273

607

10,417

13,724664

15,79348,481(48,481)-245,874

92,966

222,770

192,913414,453

75,833

1,244,811(48,481)

1,196,330

13,710

793

9,387

7,443

53,7283,317

88,380(7,495)80,885
1,363(10,120)
72,127

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of negative ¥ 7,495 million include negative ¥ 244 million for intersegment
transactions and negative ¥ 7,250 million for general and administrative expenses not attributed reportablesegments.
3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses,
share of profit and loss of investments accounted for using equity method, other income, and other expenses
from revenue.

18

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

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

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

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

20

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

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

Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

IFRS

Notes

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

126,702(4,536)-

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

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

3,589

-

-

-

114,664

33,858148,523

69,223(69,223)

-

-

(e)

399,847(399,847)

-

-

(e)

138,215(138,215)

-

-

(e)

43,314
1,203,387

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

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

451,259(10,564)8,460

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

12,721(12,721)

-

-

(g)

-

73,464-73,464

(f)

155

(155)

-

-

-

58,057

11,856

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

24,843
2,916

106,430
48,835(1,403)

1,403

-

-

732,715
1,936,103-

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

-

-

21

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

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

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

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

Japanese
GAAP

Reclassification

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

IFRS

Notes

247,294

170,776-

418,070(b)

107,849(107,849)

-

-

(b)

141,579(141,579)

-

-

(h)

30,000(30,000)

-

-

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

207,395

59,328

266,724

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

4,753
159,476-(i)

12,550(12,550)

-

-

(i)

14,367(14,367)

-

-

(i)

-

26,918-26,918

192,849(79,441)

2,836

116,244930,022-

62,165992,187

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

56,170478,002

115,456-(238)

115,218

(n)

5,984

(5,984)

-

-

(i)

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

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

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

-

7,082

-

-

(87)

7,082
1,038

(i)
(p)

41,668(24,220)57

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

55,902

618,847

1,492,967-

118,067

1,611,034

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

-

-

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

(134)

-

3,980

3,846

425,693-

36,453462,146

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

1,936,103-

154,576

2,090,679

22

Liabilities
Current liabilities
Trade and other payables

Bonds, borrowings andother financial liabilities
Income taxes payable
Contract liabilities

Provisions
Other current liabilities
Total current liabilities
Non-current liabilities

1,125

32,472

Line items under IFRS

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

Bonds, borrowings andother financial liabilities
Retirement benefit
liability

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

(ii) As of December 31, 2021
Millions of yen
Line items underJapanese GAAP
AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable - trade, andcontract assets
Allowance for doubtful
accounts
Merchandise and finished
goodsWork in process
Raw materials andsupplies

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

Japanese
GAAP

Reclassification

75,250Differences inrecognition
andmeasurement-(6,591)

Notes

Line items under IFRS

68,658(a)(b),(c),(d),(j)AssetsCurrent assets
Cash and cash equivalents
Trade and otherreceivables

IFRS

447,438(87,465)

20,343

380,316(3,680)

3,680

-

0

(c)

-

125,255

58,751

184,006(d),(j)90,703(90,703)

-

0

(e)

454,071(454,071)

-

0

(e)

151,917(151,917)

-

0

(e)

118,694
1,334,395

696,692
2,945
10,610(48,434)-(41,320)(0)
1,452
39,226655,372
2,945
10,61071,712
1,373,622(a),(g)(b),(g)442,060(10,927)

7,828

438,962(k)

22,095-

12
10,91539,69147,29961,79958,214(k)(l)-

64,1402

64,142(f)-

56,75912,32869,088248,444

82,677(204,884)

25,1992,938

107,877
46,498(1,306)

1,306

-

-

711,2932,045,689-

135,289
174,516

846,583
2,220,205-(e),(k)Contract assets

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

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

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

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

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

Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

IFRS

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

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

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

Liabilities
Current liabilities
Trade and other payables

206,830

152,641-

359,471(b)

109,694(109,694)

-

-

(b)

178,077(178,077)---

362,564

88,709451,273(h)(g),(h),(j),(l)9,016
178,724
9,563(9,563)-

9,016
178,724-(i)

12,091(12,091)

-

-

(i)

10,443(10,443)

-

-

(i)

-

22,545-22,545327,214(217,880)

1,141

110,475

1,041,656-

89,851

1,131,507

180,000
191,749(180,000)(191,749)---

403,232

44,499447,731

119,472-

120

119,593

(n)

3,132

(3,132)

-

-

(i)

-

4,202
1,307

(57)

4,202
1,250

(i)
(p)

52,160(33,861)62

18,362(g),(n)546,514-44,625591,139

1,588,170-

134,476

1,722,647

104,484
55,527
270,876(1,127)-(0)37,173-

104,484
55,526
308,049(1,127)

8,911

-

2,824

11,735

438,671-

39,996478,668

18,846457,518-42
40,03918,889497,558

2,045,689-

174,516

2,220,205

-

Other

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

Notes

24

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

Bonds, borrowings andother financial liabilities
Income taxes payable
Contract liabilities

Provisions
Other current liabilities

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

Bonds, borrowings andother financial liabilities
Retirement benefit
liability

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

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

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

Retirement benefit asset

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

Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

IFRS

Notes

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

114,469(5,957)-

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

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

3,908

-

-

(c)

-

74,13035,002

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

-

-

(e)

419,954(419,954)

-

-

(e)

160,113(160,113)

-

-

(e)

109,911
1,297,781

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

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

444,262(10,815)

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

38,63847,597

61,94058,524(k)(l)

14,539(14,539)

-

-

(g)

-

70,4362

70,438

(f)

200

(200)

-

-

-

57,85812,89470,752

86,249157,668(114,921)

15,9593,437

102,20946,183(1,366)

1,366

-

-

724,967
2,022,748-

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

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

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

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

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

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

Japanese
GAAP

Reclassification

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

IFRS

Notes

239,976

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

104,336(104,336)

-

-

(b)

96,108(96,108)

-

-

(h)

20,000(20,000)

-

-

(h)

1,175

(1,175)---141,069

67,704

208,773

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

14,797(14,797)

-

-

(i)

9,602

(9,602)

-

-

(i)

-

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

4,709

161,951

987,328-

72,394

1,059,723

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

106,803-

220

107,024

(n)

3,054

(3,054)

-

-

(i)

1,593

4,112
-

24
(210)

4,136
1,382

(i)
(p)

41,249(21,683)(162)

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

53,117590,014

1,524,225-

125,512

1,649,738

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

479,180-

26,303

505,484

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

2,022,748-

151,881

2,174,630

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

Differences inrecognition
andmeasurement

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

Bonds, borrowings andother financial liabilities
Income taxes payable
Contract liabilities

Provisions
Other current liabilities
Total current liabilities
Non-current liabilities

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

Bonds, borrowings andother financial liabilities
Retirement benefit
liability

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

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

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

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

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

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

6,785

Millions of yen
As ofDecember 31, 2021

As ofMarch 31, 2022

6,189

6,646

-

(265)

(132)

(3,402)(2,240)(844)(2,253)(3,395)
8,563

5,094

5,069

5,116

28,94031,60722,262

(931)

(931)

(931)

(1,772)
32,472(1,397)
37,173(2,840)35,290(April 1, 2021) date
(April 1, 2021)

cash equivalents30

(2) Reconciliations of profit or loss and comprehensive income(i) For nine months ended December 31, 2021 (April 1, 2021 – December 31, 2021)
Millions of yen

Reclassification

Differences inrecognition
andmeasurement

1,038,731
851,679
187,052(44)(44)

148,031

Line items under Japanese
GAAP

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

IFRS

Notes

(2,456)2,456

1,038,686
849,222
189,464(a),(c)-351

148,382(c)-(15,181)2(15,179)

(a)

-

330
(1,571)
4,010

5,682
2,839
28,746

(a)
(a)

-

-

-

5,352
4,411
(14,284)(5,666)(23,383)(1,633)
(295)
1,948
4,042

22,642
13,590
9,051

-

(980)
900
2,128
(1,797)
3,926

968
4,942
24,771
11,793
12,977Net unrealized losses
on securities

(437)

-

1,097

660

(d)

Remeasurement of defined
benefit plans

191

-

(212)

(21)

(c)

-

(1)

-

(1)

(429)

-

199

(230)

5,382

-

(1,343)

4,038

Share of othercomprehensive incomeof associates accounted forusing equity method

4,578

1

-

4,579

Total other comprehensive
incomeComprehensive Income

9,285

-

(259)

9,025

18,336-

3,666

22,003Operating profit
Non-operating income
Non-operating expenses
Extraordinary income
Extraordinary losses

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

39,0205,666
23,383
1,633
295

31

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

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

(ii) For three months ended December 31, 2021 (October 1, 2021 – December 31, 2021)
Millions of yen
Line items under Japanese
GAAP
Net sales
Cost of sales
Gross profit
Selling, generaland administrative expenses

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

Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement

Notes

357,648
287,096
70,552

-

(975)
975

357,648
286,12171,527(a),(c)51,937-550

52,487(c)-(8,157)(0)(8,157)

(a)

-

156
656
(8,657)(1,120)(9,517)

(63)
(787)
1,148

92
(131)
11,106

(a)
(a)

-

-

226
1,335
9,997
5,260
4,736

18,614
1,120
9,517
72

-

IFRS

-

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

-

(72)
1,071
883

10,145
6,656
3,489

-

(844)
452
(148)
(1,395)
1,247

Net unrealized gains
on securities

(244)

-

115

(128)

(d)

Remeasurement of defined
benefit plans

(22)

-

26

4

(c)

-

(0)

-

(0)

(90)

-

44

(46)

3,271

-

(591)

2,680

Share of othercomprehensive incomeof associates accounted forusing equity method

2,329

0

-

2,329

Total other comprehensive
incomeComprehensive Income

5,243

-

(405)

4,838

8,733

-

842

9,575

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

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

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

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

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

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

210,772

Differences inrecognition
andmeasurement

IFRS

Notes

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

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

(a)

-

503
(3,098)
(72)

6,795
4,147
30,366

(a)
(a)

-

-

-

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

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

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

Net unrealized losses on
securities

(524)

-

2,874

2,350

(d)

Remeasurement of defined
benefit plans

11,130-(848)

10,281

(c)

-

(1)

-

(1)

(337)

-

211

(125)

16,407-(2,727)

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

9,218

1

-

9,220

Total other comprehensive
incomeComprehensive Income

35,895-(489)

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

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

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

Reclassification

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

-

33

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

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

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

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

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

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

34

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

35

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

Revenue and business profit (loss)

Reportable segment

360.0
140.0

Business
profit(loss)
12.5
1.0

360.0
140.0

Business
profit(loss)
10.5
1.0

320.0

5.5

320.0

5.5

-

-

297.3

(10.8)

250.0

10.0

260.0

16.0

(10.0)

(6.0)

252.6

13.9

590.0
90.0

68.0
3.0
(14.0)
86.0

550.0
90.0

56.0
4.0
(17.0)
76.0

40.0

12.0
(1.0)
3.0
10.0

447.9
78.0

37.5
3.1
(5.2)
30.3

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

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

Forecast for the year ending March 31, 2023 (fiscal 2022)
Revised forecast
Forecast issued
Change(A)
November 10, 2022 (B)(A – B)

1,750.0

Revenue

1,720.0

Revenue-

Business
profit(loss)
2.0

-

30.0

Revenue

Business
profit (loss)

-

298.2
126.6

(10.3)
2.2

1,500.8(ii) Orders received

Reportable segment

Forecast for the year ending March 31, 2023 (fiscal 2022)
Revised forecast
Forecast issued
Change(A)
November 10, 2022 (B)(A – B)
300.0
300.0
300.0
300.0

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

Aerospace Systems
Rolling StockEnergy Solution & Marine
410.0
390.0
20.0
Engineering
Precision Machinery &
260.0
270.0
(10.0)
Robot
590.0
550.0
Powersports & Engine
40.0
90.0
90.0
Other
Total
1,950.0
1,900.0
50.0
Note: 1. Assumed exchange rate for the fiscal year ending March 2023: ¥130/USD, ¥135/EUR
2. The Powersports & Engine segment’s orders received are equal to its revenue as production is based mainlyon estimated demand.

36

343.5
271.8
447.9
84.0
1,602.1