Report of Earnings and Financial Statements for theThree Months Ended June 30, 2019 (Consolidated)(Prepared pursuant to Japanese GAAP)
July 30, 2019
Listed company’s name:

Kawasaki Heavy Industries, Ltd.

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

1st sections of the TSE, and NSE
7012
https://www.khi.co.jp/
Yoshinori Kanehana, President
Tatsuo Hoshino, Senior Manager, Accounting Department+81 3-3435-2130

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

August 6, 2019
Available
Conducted (for institutional investors, analysts and thepress)

1. Consolidated Financial Results for the Three Months ended June 30, 2019
(April 1, 2019 – June 30, 2019)(Amounts in millions of yen rounded down to the nearest million yen)

(1) Operating Results
Net sales(Percentage figures represent changes versus the year-ago period)
Net income attributable
Operating income
Recurring profit
to owners of parent
million yen%
million yen%
million yen%

million yen%
Three Months Ended
350,778
2.0
1,088 (84.6)(4,391)
June 30, 2019
Three Months Ended
343,785
2.5
7,103
44.6
8,550
June 30, 2018
Note: Comprehensive income: Three months ended June 30, 2019: ¥(6,232) million
Note: Comprehensive income: Three months ended June 30, 2018: ¥1,672 million
Earnings per share
Earnings per share– dilutedyenyenThree Months Ended(49.38)June 30, 2019
Three Months Ended
15.33
June 30, 2018-(8,249)

-

57.3

2,561

(21.8)-%(46.5)%(2) Financial Condition
Total assets

Net assets

million yen

million yen%

June 30, 2019

1,911,544

474,71224.0

March 31, 2019

1,838,855

492,26125.9

Note: Shareholders’ equity: June 30, 2019: ¥459,144 million
Note: Shareholders’ equity: March 31, 2019: ¥ 476,387 million

1

Equity ratio

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

-

35.00

-

35.00

70.00

35.00

-

35.00

70.00

Year ended
March 31, 2019Year ending
March 31, 2020
Year ending March
31, 2020 (forecast)

Full year
yen-

Note: Revisions to the most recently announced dividend forecast: None

3. Forecast of Consolidated Earnings for the Year Ending March 31, 2020
(April 1, 2019 – March 31, 2020)
Net sales

Full year

million yen%

1,700,000

6.6(Percentage figures represent changes versus the year-ago period)
Net income
Earnings per
Operating income
Recurring profit
attributable to owners
shareof parent
million yen%
million yen%
million yen%
yen
72,00012.4

Note: Revisions to the most recently announced earnings forecast: None2

61,00061.1

38,00038.4

227.48

Notes1) Changes affecting the status of material subsidiaries (scope of consolidation): None2) Accounting procedures specific to preparation of quarterly consolidated financial statements: Yes*For further details, see “2.Consolidated Financial Statements (3)Notes on financial statements” onpage 14 in the Accompanying Materials.
3) Changes in accounting policies, changes in accounting estimates, and correction of errors(1) Changes in accounting policies in accord with revisions to accounting standards: Yes(2) Changes in accounting policies other than (1): None
(3) Changes in accounting estimates: None
(4) Correction of errors: None
4) Number of shares issued and outstanding (common stock)(1) Number of shares issued as of period-end (including treasury stock)June 30, 2019:
167,080,532 shares
March 31, 2019:
167,080,532 shares(2) Number of shares held in treasury as of period-end
June 30, 2019:35,463 shares
March 31, 2019:35,196 shares(3) Average number of shares during respective periods
June 30, 2019:
167,045,137 shares
June 30, 2018:
167,047,117 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 and Financial Statements (3) Consolidated earnings outlook ” on page 10 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 Tuesday July 30, 2019, and to post the briefing material on quarterly financial results to be used
for the briefing on TDnet and the Company’s website simultaneously with the announcement of financial
results.

3

Accompanying Materials – Contents
1. Qualitative Information and Financial Statements

5(1) Consolidated operating results

5(2) Consolidated financial position

10(3) Consolidated earnings outlook

10

2. Consolidated Financial Statements

11(1) Consolidated balance sheets

11(2) Consolidated statements of income and comprehensive income13(3) Notes on financial statements

14(Notes on the going-concern assumption)

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

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

14(Changes in accounting policies)

14(Related to consolidated statements of income)14(Segment information)

15

3. Supplementary Information

15(1) Consolidated cash flow statements (condensed)

415

1. Qualitative Information about Financial Statements(1) Consolidated operating results
The global economy continues to grow at a moderate pace overall, but concerns are increasing
about an economic downturn stemming from U.S.-China trade friction. Given the possibility of an
intensification of U.S.-China trade frictions if future trade talks do not go well, and the remaining
possibility of a U.K. exit from the EU without an agreement, there is a continued need to closely
monitor the downward risks to the global economy.
The Japanese economy has been recovering modestly, due to the modest increasing of capital
investment, the improvement in corporate earnings, and other factors. Although overall modest
growth is expected to continue, it is necessary to continue to closely monitor foreign exchange trends
and watch out for deterioration in corporate earnings caused by the economic policies, etc. of theUnited States and other countries.
Amid such an operating environment, the Group’s orders received in the first three months of the
fiscal year ending March 31, 2020, decreased versus the previous fiscal year, mainly in the Energy
System & Plant Engineering segment. Net sales increased overall, due to an increase in the
Aerospace Systems and other segments, despite a decline in the Energy System & Plant Engineering
segment and Motorcycle & Engine segment. Operating income decreased overall, due to thedeterioration in the Precision Machinery & Robot segment and Rolling Stock segment and otherfactors, despite the improvement in the Energy System & Plant Engineering segment andMotorcycle & Engine segment. Recurring profit and net income attributable to owners of parent fell
into the red mainly owing to an increase in loss on foreign exchange.
As a result, the Group’s consolidated orders received decreased ¥31.7 billion versus the same
period of the previous fiscal year to ¥328.2 billion, consolidated net sales increased ¥6.9 billion year
on year to ¥350.7 billion, operating income decreased ¥6.0 billion year on year to ¥1.0 billion,
recurring loss deteriorated ¥12.9 billion year on year to ¥4.3 billion, and net loss attributable toowners of parent deteriorated ¥10.8 billion year on year to ¥8.2 billion.

5

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

Segment Information
Segment net sales, operating income, and orders received (billion yen)Three months ended June 30

2018(A)

Orders received

Change (B – A)

2019 (B)Three months ended
June 30

Net

Net

Net

OperatingNet

Operating

2018

2019

Change

sales

sales

sales

incomeSales

income(A)(B)(B – A)

Aerospace
Systems

104.9

5.3

122.1

4.8

17.2

(0.4)

79.0

69.7

(9.3)

51.0

0.2

45.0

0.8

(5.9)

0.5

93.9

69.8

(24.0)

47.9

4.5

48.3

1.7

0.3

(2.8)

57.1

52.9

(4.1)

Structure

22.0

1.3

22.8

(0.3)

0.8

(1.7)

6.9

21.5

14.6

Rolling Stock

23.3

(0.9)

20.4

(3.5)

(2.9)

(2.6)

24.9

16.0

(8.9)

Engine

73.7

(3.3)

68.3

(2.8)

(5.4)

0.4

73.7

68.3

(5.4)

Other

20.6

0.3

23.5

0.4

2.9

0.1

24.2

29.7

5.5

-

(0.5)

-

(0.0)

-

0.5

-

-

-

343.7

7.1

350.7

1.0

6.9

(6.0)

359.9

328.2

(31.7)

Energy System& Plant
Engineering
Precision
Machinery &RobotShip & Offshore

Motorcycle &Adjustments
Total

Notes: 1. Net sales include only sales to external customers.
2. The method for calculating orders received in the Precision Machinery & Robot segment was changed in
the first quarter of FY2019 from the previous simple method to a method based on more detailed ordervalues. The value for orders received in the first quarter of the previous fiscal year has been recalculated inaccordance with the new calculation method.
3.The Motorcycle & Engine segment’s orders received are equal to its net sales as production is based mainlyon estimated demand.

6

Aerospace Systems
Regarding the business environment surrounding the Aerospace Systems segment, there is acertain level of demand from the Ministry of Defense in Japan amid the tight defense budget.
Demand for commercial aircraft airframes and jet engines is increasing in conjunction with the risein the number of air passengers.
Amid such an operating environment, consolidated orders received decreased ¥9.3 billion year on
year to ¥69.7 billion due to an increase in demand for component parts of commercial aircraft
airframes and commercial aircraft jet engines.
Consolidated net sales increased ¥17.2 billion year on year to ¥122.1 billion due to an increase indemand for component parts of commercial aircraft airframes and commercial aircraft jet engines.
Operating income of ¥4.8 billion was on par with the previous year's result, as increased sales ofcomponent parts to the Ministry of Defense and for commercial aircraft offset an increase indepreciation of development costs of a new program relating to component parts for commercial
aircraft engines.
Energy System & Plant Engineering
Regarding the business environment surrounding the Energy System & Plant Engineering
segment, in addition to the recovery in resources development and oil and natural gas-related
investment overseas, there is still demand for energy infrastructure maintenance in Asia. Besides,
demand for distributed power sources is increasing due to stronger interest in investment in theenvironment and energy conservation, among other factors. In Japan, there is ongoing demand for
replacing aging facilities for refuse incineration plants and industrial machinery. Meanwhile, in theenergy and environmental field, although there is large potential demand for distributed powersources in Japan, investment plans are slightly delayed in light of the liberalization of electricity.
Amid such an operating environment, consolidated orders received decreased ¥24.0 billion year
on year to ¥69.8 billion. Although new orders were relatively strong, including an order for major
refurbishments of domestic waste disposal facilities, the year-on-year result reflects the
non-recurrence of orders received for large projects in the previous fiscal year, including orders for a
Combined Cycle Power Plant and an LNG tank for the Japanese market.
Consolidated net sales decreased ¥5.9 billion year on year to ¥45.0 billion, due to a decline inconstruction work volume on Energy system segment and refuse incineration plants and otherfactors.
Operating income increased ¥0.5 billion year on year to ¥0.8 billion, due to the profitability
improvement in the Energy System segment and the other factors, despite a drop in sales.

7Precision Machinery & Robot
Regarding the business environment for the Precision Machinery & Robot segment, there
continues to be robust demand in China’s construction machinery market for hydraulic components
used in hydraulic excavators. However, some construction machinery makers have started preparing
for inventory adjustments. For that and other reasons, we continue to closely monitor conditions in
the Chinese market. In the robot market, the current market situation is deteriorating due to thepostponement of capital investment and the putting off of investment by semiconductor
manufacturers in the Chinese market due to the U.S.-China trade friction. While the overseas market
is expected to remain unstable for some time, demand in the domestic market is expected to steadily
expand in the industrial sector as a whole, including in the human-robot coexistence field.
Amid such an operating environment, consolidated orders received decreased ¥4.1 billion year on
year to ¥52.9 billion, due to a decrease in various robots.
Consolidated net sales were ¥48.3 billion, nearly unchanged year on year, due to an increase in
hydraulic components for construction machinery market, despite the drop in robot sales forsemiconductor.
Operating income decreased ¥2.8 billion year on year to ¥1.7 billion, as a result of factors
including the drop in robot sales, increases in costs of hydraulic components and research anddevelopment.
Ship & Offshore Structure
While demand for gas-fueled vessels is being driven higher by tighter environmental regulationsand LNG development projects are beginning to take shape, the Ship & Offshore Structure
segment’s operating environment remains adverse due to the prolonged slump in the marinetransport market, the continuation of the South Korean government’s support policies for its
shipbuilding industry, and other issues.
Amid such an operating environment, consolidated orders received increased ¥14.6 billion year on
year to ¥21.5 billion, due to orders for LPG carriers and the other factors.
Consolidated net sales increased ¥0.8 billion year on year to ¥22.8 billion, due to an increase insales of vessel repair, despite the decreases in volume of construction of LNG carrier and LPG
carrier.
The segment posted a consolidated operating loss of ¥0.3 billion, a ¥1.7 billion deterioration fromoperating income a year earlier. The main factors dragging down earnings were lower revenue fromnewly built ships and the posting of losses from operations.

8

Rolling StockRegarding the business environment surrounding the Rolling Stock segment, there continues to bestable demand in Japan for the replacement of aging railcars. Overseas, demand for new andreplacement railcars is expected to increase in the U.S., including in the core New York area market.
Meanwhile, in Asia, we are planning the formation of projects for emerging markets in tandem with
the Japanese government’s efforts to promote infrastructure-related exports.
In this operating environment, we received new orders for passenger cars for the domestic market
but consolidated orders received totaled only ¥16.0 billion, ¥8.9 billion less than a year earlier when
we received a large order for passenger cars and refurbishments from the North American market.
Consolidated net sales decreased ¥2.9 billion year on year to ¥20.4 billion, due to a decrease insales of rolling stocks for Japan and components for overseas.
Operating income resulted in an operating loss of ¥3.5 billion, a ¥2.6 billion deterioration from theresult a year earlier, primarily due to the decrease in sales and cost fluctuations for some projects.
Motorcycle & Engine
Regarding the business environment surrounding the Motorcycle & Engine segment, while themodest growth in motorcycle markets mainly in Europe is continuing, some emerging markets are
weak. With respect to utility vehicles, the market continues to grow stably mainly in North America,
and the general-purpose engine market is also growing steadily.
In this operating environment, consolidated net sales decreased ¥5.4 billion year on year to ¥68.3
billion, due to the impact from yen appreciation and delayed recording of wholesale sales.
Although sales decreased, operating loss improved ¥0.4 billion year on year to ¥2.8 billion loss, asa result of factors including a temporary increase in selling, general, and administrative expenses.
Other Operations
Consolidated net sales increased ¥2.9 billion year on year to ¥23.5 billion.
Operating income increased ¥0.1 billion year on year to ¥0.4 billion.

9(2) Consolidated financial position(i) Assets
Current assets were ¥1,204.9 billion, ¥68.5 billion increase from March 31, 2019 due to anincrease in trade receivables.
Fixed assets were ¥706.6 billion, ¥4.1 billion increase from March 31, 2019 due to capital
expenditure and the other factors.
As a result, total assets were ¥1,911.5 billion, ¥72.6 billion increase from March 31, 2019.
(ii) Liabilities
Interest bearing liabilities were ¥595.4 billion, ¥155.9 billion increase from March 31, 2019.
Liabilities were ¥1,436.8 billion, ¥90.2 billion increase from March 31, 2019 due to an increase
in interest bearing liabilities such as Short-term debt and other factors.
(iii) Net assets
Consolidated net assets were ¥474.7 billion, ¥17.5 billion decrease from March 31, 2019 due toposting of net loss attributable to owners of parent and payment of dividends.

(3) Consolidated earnings outlook
The Company has left its earnings forecasts for the fiscal year ending March 31, 2020, unchanged
from the figures previously announced on April 25, 2019.
The Company’s earnings forecasts assume exchange rates of ¥110 to the U.S. dollar and ¥125 tothe euro.

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

102. Consolidated Financial Statements(1) Consolidated balance sheets
Million yen
As of
As of
March 31, 2019
June 30, 2019
AssetsCurrent assets
Cash on hand and in banks
Trade receivables
Merchandise and finished products
Work in process
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Net property, plant and equipment
Buildings and structures
Other
Total property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Trade payables
Electronically recorded obligations - operating
Short-term debt
Income taxes payable
Provision for sales promotion expenses
Accrued bonuses
Provision for product warranties
Provision for losses on construction contracts
Advances from customers
Other
Total current liabilities
Long-term liabilities
Bonds payable
Long-term debt
Net defined benefit liability
Provision for the in-service issues of commercial aircraft
jet engines
Other
Total long-term liabilities
Total liabilities

11

74,311
427,665
68,176
405,087
119,558
45,333(3,792)
1,136,340

44,433
467,593
73,968435,790122,061
64,639(3,577)1,204,908

194,939
290,729
485,669
16,797

192,775
293,815
486,591
17,845

201,471(1,422)200,048
702,514
1,838,855

203,602(1,402)
202,200
706,636
1,911,544

247,191
123,083
100,023
10,390497
21,16813,096
27,609181,419
139,800
864,280

210,560
127,350
140,529
5,239
5,198
23,58912,567
29,766
173,567
229,234
957,604

140,000
187,568
97,602140,000
187,086
97,027(*1)11,468(*1)10,333

45,674
482,313
1,346,593

44,781
479,228
1,436,832

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

104,484
54,542
324,606(130)
483,502104,484
54,542
305,561(130)
464,457

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

2,682
(227)
(4,556)(5,014)(7,115)
15,874492,261
1,838,855

2,654
426
(4,719)(3,674)(5,313)
15,568474,7121,911,54412

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income
Million yen
Three months ended
June 30, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and benefits
R&D expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in income of non-consolidated subsidiaries and affiliates
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Other
Total non-operating expenses
Recurring profit(loss)
Income(loss) before income taxes
Income taxes
Net income(loss)
Net income attributable to non-controlling interests
Net income(loss) attributable to owners of parent

Three months ended
June 30, 2019343,785
288,048
55,737350,778
301,426
49,351

12,960
10,32325,34948,634
7,103

13,344
11,11823,79948,262
1,088

93
142
323
2,038
601
3,198

135
223
338
732
1,430

753
998
1,751
8,550
8,550
5,636
2,913
352
2,561

911
5,039
959
6,910
(4,391)(4,391)
3,578(7,969)279(8,249)Consolidated statements of comprehensive income
Million yen
Three months ended
June 30, 2018
Net income(loss)
Other comprehensive income
Net unrealized gains (losses) on securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurement of defined benefit plans
Share of other comprehensive income(loss) of associates
accounted for using equity method
Total other comprehensive income(loss)
Comprehensive Income(loss) attributable to:
Owners of parent
Non-controlling interests

13

Three months ended
June 30, 2019

2,913

(7,969)175(1,127)
536
777

(30)
695
(1,685)
1,342(1,604)

1,414(1,241)
1,672
1,651
20

1,737
(6,232)(6,446)
214

(3) Notes on financial statements

Notes on the going-concern assumption
Not applicable
Notes on significant changes in the amount of shareholders’ equity
Not applicable
Accounting procedures specific to preparation of quarterly consolidated financial statements(Calculation of tax expense)
The Company calculates tax expense by rationally estimating its effective tax rate after
application of tax effect accounting to pretax net income for the fiscal year which includes the firstquarter under review, and multiplying quarterly pretax net income by said estimated effective tax
rate. If unable to use the estimated effective tax rate, the Company calculates tax expense bymultiplying the statutory effective tax rate by quarterly pretax net income adjusted to reflect material
differences other than temporary differences.
Income taxes are reported inclusive of income tax adjustments.
Changes in accounting policies
Consolidated subsidiaries applying U.S. accounting standards began applying Topic 606,
"Revenue from Contracts with Customers" from the first quarter of the year under review.
With the application of this standard, when contracted goods or services are transferred to thecustomer, revenue is recognized at an amount that reflects the consideration expected to be received
in exchange for the goods or services. In applying this standard, the Company adopted the method,
as is permitted as a transitional measure, of recognizing the cumulative effect of a retroactive
adjustment from the date at which the standard was applied and accordingly reducing retained
earnings at the beginning of the current consolidated fiscal year.
As a result, retained earnings at the beginning of the first quarter of the year under review
decreased by ¥4,948 million. In addition, income before income taxes for the first quarter of current
fiscal year increased by ¥3,890 million over the amount that would have been recorded if theprevious accounting standard had been applied.

Related to consolidated statements of income(*1) The payments for the in-service issues of commercial aircraft jet engines
The Company participates as a risk and revenue sharing partner on the Rolls-Royce Trent 1000
engine program, which has been impacted by the challenge of managing significant in-service issues.
Rolls-Royce continues to work hard to remedy this situation and has made further substantial
progress on the implementation of long-term solutions and mitigation of the near-term impact on
customers. In the FY2019 1st quarterly financial results, the Company has made a provision of theabnormal cost related to in-service issues which the Company would cover as a member of thisprogram.
14

Segment information
1. Three months ended June 30, 2018 (April 1, 2018 – June 30, 2018)(1) Sales and income (loss) by reportable segment
Million yen

Aerospace Systems
Energy System & Plant Engineering
Precision Machinery & Robot
Ship & Offshore structure
Rolling stock
Motorcycle & Engine
Other
Reportable segment total
Adjustments*1
Consolidated total
Notes: 1. Breakdown of adjustments:

External sales

Intersegment
sales

Total sales

Operatingincome (loss)

104,946
51,00447,99222,08523,39273,757
20,607343,785
343,785

3,886
4,248
3,734
663
3
160
8,988
21,684(21,684)-

108,832
55,25351,726
22,74823,39573,91729,595
365,470(21,684)
343,785

5,325
233
4,596
1,358
(915)
(3,308)
359
7,649
(546)
7,103

Million yen
IncomeAmountIntersegment transactions
13
Corporate expenses*
(560)
Total
(546)
*Corporate expenses mainly comprise general and administrative expenses not attributed to reportablesegments.
2. Segment income adjustments are based on operating income reported on the consolidated statements
of income for the corresponding period.

(2) Impairment loss on fixed assets and goodwill by reportable segment
Not applicable152. Three months ended June 30, 2019 (April 1, 2019 – June 30, 2019)(1) Sales and income (loss) by reportable segment
Million yen

Aerospace Systems
Energy System & Plant Engineering
Precision Machinery & Robot
Ship & Offshore structure
Rolling stock
Motorcycle & Engine
Other
Reportable segment total
Adjustments*1
Consolidated total
Notes: 1. Breakdown of adjustments:

External sales

Intersegment
sales

Total sales

Operatingincome (loss)

122,188
45,017
48,34722,895
20,42468,35623,546
350,778
350,778

2,383
5,407
3,253
2,100
8
138
9,162
22,454(22,454)-

124,572
50,42551,60024,996
20,43368,49432,709373,232(22,454)
350,778

4,869
828
1,760
(398)
(3,548)(2,849)
472
1,134
(45)
1,088

Million yen
Amount92(138)

IncomeIntersegment transactions
Corporate expenses*

Total
(45)
* Corporate expenses mainly comprise general and administrative expenses not attributed to reportablesegments.
2. Segment income adjustments are based on operating income reported on the consolidated statements
of income for the corresponding period.

(2) Impairment loss on fixed assets and goodwill by reportable segment
Not applicable
3. Supplementary information(1) Consolidated cash flow statements (condensed)
Million yen
Three months ended
June 30, 2018
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at end of period(74,195)(26,661)
89,26452,487

16

Three months ended
June 30, 2019
(163,712)(17,138)
150,583
39,326