Report of Earnings and Financial Statements for theThree Months Ended June 30, 2022 (Consolidated)<IFRS>
August 12, 2022
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:

August 12, 2022-

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 Three Months ended June 30, 2022
(April 1, 2022 – June 30, 2022)(1) Operating Results(Percentage figures represent changes versus the year-ago period)
RevenueThree Months Ended
June 30, 2022
Three Months Ended
June 30, 2021

Business profit

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

350,344

(1.5)

4,593

(75.2)

10,605(37.8)

5,794(51.3)

355,570-

18,551-

17,063-

11,902-

Profit attributable toowners of parent
Millions of%yen
Three Months Ended
June 30, 2022
Three Months Ended
June 30, 2021

Profit before tax

Total comprehensive
incomeMillions of%yen

Basic earnings
per shareyen

Diluted earnings
per share
yen

5,457

(52.4)

18,761

26.2

32.58

-

11,460-14,866

-

68.60

-

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%

June 30, 2022

2,246,868

537,827

519,800

23.1

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

-

20.00

40.00

30.00

-

20.00

50.00

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

Full year
yen-

Note: Revisions to the most recently announced dividend forecast: Yes
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
1,690,000%
12.6(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
56,000 84.4
52,000 87.9
32,000 153.2
191.07

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 stock)(1) Number of shares issued as of period-end (including treasury stock)June 30, 2022:
167,921,800 shares
March 31, 2022:
167,921,800 shares(2) Number of shares held in treasury as of period-end
June 30, 2022:
449,890 shares
March 31, 2022:
449,527 shares(3) Average number of shares during respective periods
June 30, 2022:
167,471,974 shares
June 30, 2021:
167,041,976 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 outlook” 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 by conference
call on Friday August 12, 2022, 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 first quarter of the previous consolidated fiscal year and the previous
consolidated fiscal year are also presented in accordance with IFRS.
The differences between IFRS and Japanese 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 18 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 outlook

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

14(4) Condensed Quarterly Consolidated Statement of Cash Flow

16(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements

17(Notes on the going-concern assumption)

17(Segment Information)

17(First-time adoption of IFRS)

18
34

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

434

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

(1) Consolidated operating results
The global economy has been seeking to strike a balance between measures against infection by
COVID-19 pandemic and socio-economic activities, mainly in developed countries, and continuing topick up amid improvement in the employment and income situation, restoring personal consumption,
investment in decarbonization, and increasing international air passenger demand. On the other hand,
there are increasing uncertainties about the outlook of the global economy due to factors such as theprolonged situation in Ukraine, increased tensions between the United States and China, risingresource and energy prices, supply chain disruptions, and the risk of an economic downturn mainly
due to the impact of monetary tightening policies in the United States and Europe.
With regard to the Japanese economy, although business capital investment and personal
consumption in response to the relaxation of action restrictions has been on a recovery trend, there areconcerns about an economic slowdown due to the expansion of COVID-19 “Seventh Wave” and the
upward pressure on prices stemming from the depreciation of yen, and it is necessary to continue toclosely monitor the situation.
In this business environment, the Group’s consolidated orders received during the first quarter ofthis consolidated fiscal year increased mainly due to increases in the Energy Solution & Marine
Engineering segment and the Aerospace Systems segment. Revenue increased in the Motorcycle &Engine segment and other segments, but overall sales decreased from the same period of the previous
fiscal year due to lower sales in the Energy Solution & Marine Engineering segment, the Aerospace
Systems segment, and other segment. Business profit decreased year on year due to deteriorates in the
Aerospace Systems segment and the Precision Machinery & Robot segment. Profit attributable toowners of parent decreased mainly due to a decrease in business profit despite improvement in foreignexchange gains and losses.
As a result, the Group’s consolidated orders received increased by ¥107.8 billion year on year to¥412.0 billion, consolidated revenue decreased by ¥5.2 billion year on year to ¥350.3 billion, businessprofit decreased by ¥13.9 billion year on year to ¥4.5 billion, profit before tax decreased by ¥6.4 billion
year on year to ¥10.6 billion, and profit attributable to owners of parent decreased by ¥6.0 billion year
on year to ¥5.4 billion.

5

First -quarter consolidated operating performance is summarized by segment below.

Segment Information
Segment revenue, business profit, and orders received (billions of yen)Three months ended June 30

2021(A)

2022(B)

Orders received

Change (B – A)Three months ended
June 30

Business

Revenue

profitBusiness

Revenue

profitRevenue

Business

2021

2022

Changeprofit(A)(B)(B – A)

Aerospace
Systems

70.0

(4.2)

63.4

(8.9)

(6.6)

(4.6)

37.4

60.4

23.0

Rolling Stock

28.7

(0.2)

26.4

(0.1)

(2.3)

0.0

9.3

11.7

2.3

70.3

0.4

63.5

(0.0)

(6.8)

(0.4)

60.9

124.5

63.6

57.6

4.6

52.6

1.4

(5.0)

(3.1)

65.1

67.9

2.8

Engine

113.4

14.9

126.0

12.8

12.5

(2.0)

113.5

126.0

12.5

Other

15.2

0.9

18.3

1.3

3.0

0.3

17.8

21.3

3.4

-

2.0

-

(2.0)

-

(4.0)

-

-

-

355.5

18.5

350.3

4.5

(5.2)

(13.9)

304.2

412.0

107.8

Energy Solution& Marine
Engineering
Precision
Machinery &Robot
Motorcycle &Adjustments
Total

Notes: 1. Revenue include only sales to external customers.
2. The Motorcycle & 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 generally stable despite the tight defense budget. With respect tocommercial aircraft, demand for the passenger, which had been sluggish due to the spread of theinfection by COVID-19 pandemic, has been recovering due to an increase the number of countries
prioritizing the resumption of economic activities, despite uncertainty about the outlook due to theimpact of the delayed recovery in Asia and other regions and the situation in Ukraine.
Amid such an operating environment, consolidated orders received increased by ¥23.0 billion year
on year to ¥60.4 billion, due to an increase in component parts of airframes for Ministry of Defense inJapan and component parts of jet engines for commercial aircraft.
Consolidated revenue decreased by ¥6.6 billion year on year to ¥63.4 billion, due to a decrease incomponent parts of airframes for Ministry of Defense in Japan and commercial aircraft, despite anincrease in component parts of jet engines for commercial aircraft.
Business loss came to ¥8.9 billion, deteriorating ¥4.6 billion year on year, due to a deterioration incomponent parts of airframes for Ministry of Defense in Japan and commercial aircraft, despite an
improvement in component parts of jet engines for commercial aircraft.
Rolling StockRegarding the business environment surrounding the Rolling Stock segment, the effect of the
COVID-19 has led to a review railway-related investment plans in Japan, and delays in work processes
as well as postponement of biddings overseas. In addition, although the impact on the current situation
is limited, we need to keep a close watch on shortages of electronic components, logistics disruptions,and rising raw materials prices. In the medium and long term, however, relatively stable growth isexpected around the world due to development of urban transportation as an environmental 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 ¥2.3 billion to¥11.7 billion compared to the same period of the previous fiscal year, due to orders for the large-scale
project such as new commuter trains for the domestic market.
Consolidated revenue decreased by ¥2.3 billion year on year to ¥26.4 billion, mainly due to adecrease in sales of railcars for the United States.
Business loss of ¥0.1 billion was on par with the previous year's result, despite a decrease in sales.
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
7infrastructure development in emerging countries, remains strong, while there is ongoing demand forthe replacement of aging facilities for refuse incineration plants. Also, business opportunities on LPG
carriers are solid. In addition, there is a growing worldwide trend toward achieving carbon neutrality,
and contacts and requests for cooperation are increasing regarding decarbonization solutions,
including hydrogen products of our Company’s strength. On the other hand, it is necessary to pay
close attention to the impact on profit and loss due to the recent high prices of raw materials, equipment
and fuel costs, and transportation costs.
Amid such an operating environment, consolidated orders received increased by ¥63.6 billion fromthe same period of the previous fiscal year to ¥124.5 billion, mainly due to an increase in orders for
LPG carries and orders for large-scale projects such as the domestic waste treatment facilities
maintenance and operation business.
Consolidated revenue decreased by ¥6.8 billion year on year to ¥63.5 billion, mainly due to adecrease in the volume of work of domestic waste disposal facilities, despite an increase in the volume
of work on LPG carries.
Business loss came to ¥0.0 billion, deteriorating ¥0.4 billion year on year, due to a decrease in thevolume of work of domestic waste disposal facilities, despite an improvement in share of profit andloss of investment accounted for using equity method.
Precision Machinery & Robot
Regarding the business environment surrounding the Precision Machinery & Robot segment, in the
precision machinery field, although the performance has continued to be strong in the construction
machinery market outside China, the overall performance was sluggish due to the weak demand in the
Chinese construction machinery market affected by the lockdowns associated with the Zero-COVID19 policy and other factors. In the robotics field, while semiconductor manufacturers continue to makehigh-level capital investments, the performance of robots for semiconductor manufacturing equipment
is stay favorable as well as general-purpose robots have continued high demand for the automation
investment. On the other hand, supply constraints had continued due to supply chain issues such as
insufficient supply of electronic components and lockdowns in China, however, the impact of the
lockdown has been resolved and the insufficient supply of electronic components are heading toward
improving.
Amid such an operating environment, consolidated orders received increased by ¥2.8 billion year
on year to ¥67.9 billion, due to a weaker yen on foreign exchange rates and an increase in various
robots for semiconductor manufacturing equipment and other applications, despite a decrease in
hydraulic equipment for the Chinese construction machinery market.
Consolidated revenue decreased by ¥5.0 billion year on year to ¥52.6 billion due to a decrease in
hydraulic equipment for the Chinese construction machinery market, despite the impact of the weaker
yen on foreign exchange rates.
8

Business profit decreased by ¥3.1 billion year on year to ¥1.4 billion mainly due to a decrease insales and operations during the lockdowns.
Motorcycle & Engine
The business environment surrounding the Motorcycle & Engine segment continues to be affectedby the COVID-19 pandemic. Demand for off-road models such as four-wheeled vehicles continued to
be strong in the United States, a major market, as in the previous fiscal year, and the European market
also remained strong. On the other hand, although the Southeast Asian market has recovered comparedto the same period of the previous fiscal year, the outlook remains uncertain. The supply of products
is also affected by shortages of semiconductors and raw materials and disruptions in distribution.
Amid such an operating environment, consolidated revenue increased by ¥12.5 billion year on yearto ¥126.0 billion mainly due to a weaker yen on foreign exchange rates, as well as an increase inmotorcycles for North America and Southeast Asia, despite a decrease in four-wheeled vehicles forNorth America and motorcycles for Europe due to shortage of product supply.
Business profit decreased by ¥2.0 billion year on year to ¥12.8 billion due to a rise in raw materials
and logistics costs and an increase in fixed costs, despite an increase in sales and a weaker yen on
foreign exchange rates compared to the same period of the previous fiscal year.
Other Operations
Consolidated revenue increased by ¥3.0 billion year on year to ¥18.3 billion.
Business profit increased by ¥0.3 billion year on year to ¥1.3 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 the development of surgical support robots and automated
PCR testing, the development of delivery robots and unmanned transport helicopters, and thepromotion of hydrogen-related projects.

9(2) Consolidated financial condition
Assets, liabilities, and equity
1. Assets
Current assets were ¥1,382.0 billion, ¥61.8 billion increase from the previous fiscal year mainly due
to an increase in inventories.
Non-current assets were ¥864.8 billion, ¥10.4 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 ¥2,246.8 billion, ¥72.2 billion increase from the previous fiscal year.

2. Liabilities
Interest-bearing debt was ¥641.5 billion, ¥87.5 billion increase from the previous fiscal year.
Liabilities were ¥1,709.0 billion, ¥59.3 billion increase from the previous fiscal year mainly due toan increase in interest-bearing debt.

3. Equity
Equity was ¥537.8 billion, ¥12.9 billion increase from the previous fiscal year mainly due toincreases in exchange differences on translation of foreign operations.

Cash Flows
Cash and cash equivalents (Hereinafter referred to as “net cash”) during the first quarter of thisconsolidated fiscal year were ¥ 78.4 billion, a decrease of ¥ 38.5 billion compared to the same periodof the previous fiscal year. The cash flow situations and relevant factors during the first quarter of thisconsolidated fiscal year are stated below.

1. Cash flows from operating activities
Cash outflows from operating activities were ¥ 61.9 billion, a decrease of ¥ 32.4 billion comparedto the same period of the previous fiscal year. Major sources of operating cash flows included a
decrease in trade and other receivables of ¥23.6 billion, and depreciation and amortization of ¥19.0
billion. Major uses of operating cash flows included an increase in advance payment of ¥28.3 billion,
an increase in inventories of ¥27.7 billion, and a decrease in trade and other payables of ¥25.5 billion.

2. Cash flows from investing activities
Investing activities used net cash of ¥24.0 billion, which is ¥10.4 billion more than in the same
period of the previous fiscal year, mainly due to purchase of property, plant and equipment.

3. Cash flows from financing activities
Financing activities provided net cash of ¥62.7 billion, which is ¥25.0 billion more than in the same
period of the previous fiscal year. This was mainly due to net increase in short-term borrowings.

10(3) Consolidated earnings outlook
The Company voluntarily applies the IFRS from the first quarter of the fiscal year ending March
2023, therefore, has calculated the forecast of consolidated earning outlook based on IFRS.
The outlook of revenue is expected to be ¥1,690.0 billion, ¥10.0 billion increase from the previous
outlook (May 10), mainly due to the revision of the assumed exchange rate from ¥120 to ¥125 to the
U.S. dollar.
In terms of profit, the Company is forecasting business profit of ¥56.0 billion, ¥3.0 billion increase
from the previous outlook, profit before tax of ¥52.0 billion, and profit attributable to owners of parentof ¥32.0 billion mainly due to changes in the assumed exchange rate, despite the impact of various
cost increases and the impact of the slowdown in the Chinese construction machinery market in thePrecision Machinery & Robot segment. Furthermore, the Company is expecting ROIC of 5.3% and
ROE of 6.4%.
The outlook of consolidated orders received is expected to be ¥1,600.0 billion, ¥30.0 billion increase
from the previous outlook.
In this outlook, exchange rates are assumed to be ¥125 to the U.S. dollar and ¥130 to the euro.

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 thisoutlook. Please note that actual earnings may differ materially from this outlook, due to a variety ofimportant factors stemming from changes 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, foreign exchange rates, inparticular 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

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

Transition date
(April 1, 2021)

Millions of yen
As ofMarch 31, 2022

As ofJune 30, 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

78,495402,350
116,785
661,022
5,897
12,575
104,881
1,382,008

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

446,743
61,60260,10976,98871,303
101,919
46,192864,860
2,246,868

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

378,096324,512
4,117
270,201
21,636
155,467
1,154,032

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

429,735
107,556
2,691
994
14,030555,0091,709,041

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
55,525323,272(1,129)37,647
519,800
18,026537,827
2,246,86812

(2) Condensed Quarterly Consolidated Statement of Profit and Loss andCondensed Quarterly Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statements of Profit and Loss
Millions of yen
Three months ended
June 30, 2021
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investment 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

Three months ended
June 30, 2022

355,570
291,200
64,36947,091

350,344
292,972
57,37253,568(1,047)

631

3,060
740
18,551440
1,928
17,063
5,160
11,902

1,625
1,467
4,593
7,512
1,500
10,6054,810
5,794

11,460
442

5,457
336

68.60

32.58

Condensed Quarterly Consolidated Statement of Comprehensive Income
Millions of yen
Three months ended
June 30, 2021
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

13

Three months ended
June 30, 2022

11,902

5,794

162

(575)

44

457

(1)

(241)

204

(359)

(241)
1,249

(3,041)
12,310

1,751

4,057

2,759
2,964
14,866

13,326
12,967
18,761

14,222644

17,869891

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2021
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Transfer to non-financial
assets
Other
Total transactions withownersBalance as of June 30, 2021

Share capital

Capital surplus

Retainedearnings

Treasuryshares104,484

54,542

299,409
11,460(136)

of defined
benefit plans

Financialassetsmeasured atfair value
through othercomprehensive
income

-

4,025

44
44

177
177

(44)

(132)

Remeasurements

11,460(1)
176

3
104,484

54,542

180

(1)

(44)

(132)

311,050

(137)

-

4,070

Total equity
attributable toowners ofparentNon-controlling

462,146
11,4602,762
14,222(1)

17,498442
202
644

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2021
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Transfer to non-financial
assets
Other
Total transactions withownersBalance as of June 30, 2021

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations

(179)

-

3,846

(331)
(331)

2,871
2,871

2,762
2,762

Total

interests

(376)
(176)

Total

479,645
11,902
2,964
14,866
(1)
(376)
-

(142)

(142)

(142)

(142)

(142)

(319)

(140)

(376)

(516)

6,289

476,229

17,766493,995

3
(653)

2,871

14

3

Millions of yen
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Transfer to non-financial
assets
Other
Total transactions withownersBalance as of June 30, 2022

Share capital

Capital surplus

Retainedearnings

104,484

55,525

320,671
5,457

Treasuryshares(1,129)5,457

of defined
benefit plans

Financialassetsmeasured atfair value
through othercomprehensive
income

-

4,435

465
465

(792)
(792)

Remeasurements(0)(3,357)
465

(465)

34
104,484

55,525(2,856)

(0)

(465)

323,272(1,129)-Total equity
attributable toowners ofparentNon-controlling

505,484
5,457
12,412
17,869(0)(3,357)

19,407
336
554
891

3,642

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Transfer to non-financial
assets
Other
Total transactions withownersBalance as of June 30, 2022

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations(284)

21,78025,931(3,291)(3,291)

16,03016,03012,412
12,412

Total

interests

(560)

(465)

(229)

(229)

(229)
(3,805)37,81015

Total

524,891
5,794
12,967
18,761(0)(3,918)
-

366

366

(2,079)(2,079)

(229)

(229)

34

0

34

(695)

(3,553)(2,272)(5,826)

37,647

519,800

18,026537,827

(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
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
Repayments of long-term borrowings
Dividends paid
Proceeds from fluidity of lease receivables
Repayment of payables under fluidity lease receivables
Dividends paid to non-controlling interests
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

16

Millions of yen
Three months ended Three months ended
June 30, 2021
June 30, 2022
11,902
18,68289703
1,047(1,543)
5,160
572
29,503(21,923)(16,129)(39,397)(5,445)488(8,636)(24,923)309
167(1,118)(4,010)(29,575)

5,794
19,005
62
721
(631)
317
4,810
(205)
23,667(7,652)(27,732)(25,523)(28,373)
8,640(27,128)(54,226)
401
206
(954)
(7,421)(61,995)(14,020)
2,423(13,315)
1,212

(250)

(5,111)

436

1

(3)
(2,161)(13,577)(501)(3,224)(3,097)(24,035)

54,987(3,104)(4,500)(25)
11,190(18,093)(376)(2,377)37,701
349(5,101)
122,166
117,064

84,208(3,267)(4,000)(3,082)
7,106(14,596)(560)(3,038)62,769(6,754)(30,015)
108,51178,495(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements

Notes on the going-concern assumption
Not applicable
Segment information
Three months ended June 30, 2021 (April 1, 2021 – June 30, 2021)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Financial costs
Profit before tax

EnergyPrecision
Solution &Machinery &MarineRobot
Engineering

Rollingstock

Millions of yen
Motorcycle& Engine

Other

Total

Eliminations Consolidated
and
total
corporate *2

70,07528,79670,331

57,651

113,478

15,236355,570-

355,570

2,333

2

3,463

3,990

138

3,980

13,908(13,908)-

72,40928,79873,794

61,642

113,617

19,216369,479(13,908)355,570(4,255)

(209)

447

4,619

14,919947

16,4692,081

18,551440(1,928)17,063

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of ¥2,081 million include negative ¥119 million for intersegment transactions and¥2,201 million for general and administrative expenses not attributed reportable segments.
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.

Three months ended June 30, 2022 (April 1, 2022– June 30, 2022)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Financial costs
Profit before tax

EnergyPrecision
Solution & Machinery&
MarineRobot
Engineering

Rollingstock

Millions of yen
Motorcycle& Engine

Other

Total

Eliminations Consolidated
and
total
corporate *2

63,45826,40463,51452,607126,047

18,311

350,344-

350,344

2,727

5

3,455

3,980

148

4,382

14,700(14,700)-

66,185

26,41066,97056,588126,195

22,694

365,044(14,700)

350,344(8,929)

(158)

(27)

1,482

12,883

1,347

6,597

(2,004)

4,593
7,512
(1,500)10,605

Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices.
2. Eliminations and corporate of negative ¥2,004 million include negative ¥111 million for intersegment
transactions and negative ¥1,892 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.

17

First-time adoption of IFRSThe Group disclosed its condensed quarterly consolidated financial statements in accordance withIFRS from the first quarter of this 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 retrospectively to the “Business combinations” 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
18

recognized prior to the date of transition to IFRS is based on relevant facts and circumstances thatexisted 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.

19

(1) Reconciliations of equity(i) Transition date (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

-

-

20

(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

21

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 June 30, 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

122,051

Differences inrecognition
andmeasurement-(4,987)

Notes

Line items under IFRS

117,064(a)(b),(c),(d),(j)AssetsCurrent assets
Cash and cash equivalents
Trade and otherreceivables

IFRS

410,009(100,772)

16,598

325,834(3,636)

3,636

-

-

(c)

-

128,914

41,511

170,425(d),(j)66,471(66,471)

-

-

(e)

410,871(410,871)

-

-

(e)

143,876(143,876)

-

-

(e)

77,695
1,227,338

621,218
4,625
7,552(38,968)-(39,794)

1,452
19,767

581,424
4,625
7,552
40,1791,247,105(a),(g)(b),(g)446,866(11,360)

8,301

443,807(k)

22,099-11,36039,92647,84262,02559,203(k)(l)-

74,442

2

74,444(f)-

56,61012,345

68,956258,957

81,642(214,091)

23,783
2,906

105,426
47,772(1,396)

1,396

-

-

726,526
1,953,865-

135,109
154,876

861,635
2,108,741-(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-

22(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

202,788

171,052-

373,840(b)

112,025(112,025)

-

-

(b)

138,279(138,279)---

259,439

68,475327,915(h)(g),(h),(j),(l)5,028
160,078
19,347(19,347)-

5,028
160,078-(i)

12,261(12,261)

-

-

(i)

12,457(12,457)

-

-

(i)

-

24,719-24,719276,391(160,839)

3,683

119,235

938,658-

72,1591,010,817

190,000
195,214(190,000)(195,214)---418,21944,550462,769

115,610-

183

115,794

(n)

5,052

(5,052)

-

-

(i)

-

6,148
1,197

159

6,148
1,356

(i)
(p)

53,141(35,299)

15

17,858(g),(n)559,019-

44,908603,927

1,497,677-

117,068

1,614,745

104,484
54,542276,806(137)-

34,243-

104,484
54,542311,050
(137)

2,736

-

3,552

6,289

438,433-

37,795476,229

17,754456,187-

12
37,80817,766493,995

1,953,865-

154,876

2,108,741

-

Other

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

Notes

23

(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-

24(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

25(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 separately presented 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 separately presented 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,
26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 of27

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 recognized as “Other current
liabilities” under current liabilities at the time the tax assessment is determined.
(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
28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
(April 1, 2021)(April 1, 2021) IFRS transition date

6,785

Millions of yen
As ofJune 30, 2021

As ofMarch 31, 2022

7,000

6,646

-

(466)

(132)

(3,402)(2,240)(2,558)(2,206)(3,395)
8,563

5,094

5,035

5,116

28,94028,63722,262

(931)

(931)

(931)

(1,772)
32,472(265)
34,243(2,840)35,290(April 1, 2021) date
(April 1, 2021)

cash equivalents29

(2) Reconciliations of profit or loss and comprehensive income(i) Three months ended June 30, 2021 (April 1, 2021 – June 30, 2021)
Millions of yen
Line items under Japanese
GAAP

Reclassification

Differences inrecognition
andmeasurement355,631
293,604
62,027

(20)
421
(441)

46,860Japanese
GAAP

IFRS

Notes

(40)
(2,824)
2,783

355,570
291,200
64,369(a),(c)-230

47,091(c)-(1,049)2(1,047)

(a)

-

146
(15)
2,718

3,060
740
18,551

(a)
(a)

-

-

-

2,914
755
666
(1,853)(3,893)(1,633)
(76)
572
1,722

14,683
4,332
10,351

-

(132)
205
2,379
828
1,550

440
1,928
17,063
5,160
11,902Net unrealized losses
on securities

(394)

-

557

162

(d)

Remeasurement of defined
benefit plans

293

-

(249)

44

(c)

-

(1)

-

(1)

(383)

-

142

(241)

1,796

-

(546)

1,249

Share of othercomprehensive incomeof associates accounted forusing equity method

1,749

1

-

1,751

Total other comprehensive
incomeComprehensive Income

3,060

-

(96)

2,964

13,412-

1,454

14,866

Net sales
Cost of sales
Gross profit
Selling, generaland administrative expenses

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

15,166
1,853
3,893
1,633
76

30

(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
Other comprehensive
incomeComprehensive income

(ii) 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

-

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
Other comprehensive
incomeComprehensive income

(iii) 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.

32

(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.

33

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

Revenue and business profit (loss)
Billions of yen

Reportable segment

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

350.0
140.0

Business
profit(loss)
6.0
3.0

350.0
140.0

Business
profit(loss)
2.5
3.0

330.0

2.5

330.0

2.5

-

-

313.2

(10.8)

260.0

14.5

270.0

17.0

(10.0)

(2.5)

272.4

13.9

520.0
90.0

45.0
4.0
(19.0)
56.0

500.0
90.0

43.0
4.0
(19.0)
53.0

20.0

2.0

-

-

10.0

3.0

448.7
98.2
(66.8)
1,500.8

37.5
3.1
(5.2)
30.3

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

Year ended
March 31, 2022
(Fiscal 2021) (Actual)

1,690.0

Revenue

1,680.0

Revenue-

Business
profit(loss)
3.5

Revenue

Business
profit (loss)

-

308.3
126.7

(10.3)
2.2(ii) Orders received

Reportable segment

Outlook for the year ending March 31, 2023 (fiscal 2022)
Revised forecast
Forecast issued
Change(A)
May 10, 2022 (B)(A – B)
280.0
280.0
80.0
80.0

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

Aerospace Systems
Rolling StockEnergy Solution & Marine
360.0
340.0
20.0
Engineering
Precision Machinery &
270.0
280.0
(10.0)
Robot
520.0
500.0
Motorcycle & Engine
20.0
90.0
90.0
Other
Total
1,600.0
1,570.0
30.0
Note: 1. Assumed exchange rate for the fiscal year ending March 2023: ¥125/USD, ¥130/EUR
2. The Motorcycle & Engine segment’s orders received are equal to its revenue as production is based mainly on
estimated demand.

34

343.5
271.8
447.9
84.0
1,602.1