The Items Published on the Internet Website
Concerning the Notice of the 192nd Ordinary
General Meeting of Shareholders

Consolidated Statement of Changes in Net Assets(April 1, 2014 - March 31, 2015)(Unit: million yen)
Shareholders’ equity
Common stock Capital surplus
Balance at the beginning of theperiod104,484

54,393Retainedearnings

Treasury stock

Total
shareholders’equity(43)376,284

217,449

Changes of items during the period
Cash dividends
Net income for the year

(15,045)(15,045)

51,63951,639Treasury stock purchased
Treasury stock disposed0

Retirement of treasury stock

(0)

(659)

Effect of changes in accounting
periods of consolidated
subsidiaries

(684)

(684)

0

0

660



221

221

Net changes of items other thanshareholders’ equity
Total changes of items during theperiod036,156(23)

36,132

Balance at the end of the period

104,484

54,393

253,605(67)412,416

Minority
interests

Total
net assets

Accumulated other comprehensive income
Accumulat
Total
Net
ForeignGainsedaccumulat
unrealized
currency(losses) on
adjustmen ed othergains ontranslation
hedgingt forcomprehensecurities
adjustmen
items
retirementsive
net of tax
ts
benefits
incomeBalance at the beginning of theperiod2,652(3,803)

6,416(18,509)(13,243)

13,645

376,686

Changes of items during the period
Cash dividends(15,045)

Net income for the year

51,639Treasury stock purchased(684)

Treasury stock disposed0

Retirement of treasury stockEffect of changes in accounting
periods of consolidated
subsidiaries

221

Net changes of items other thanshareholders’ equity

1,051

1,818

18,762

11,19032,822

2,316

35,139Total changes of items during theperiod

1,051

1,818

18,762

11,19032,822

2,316

71,271

Balance at the end of the period

3,704(1,985)25,179(7,318)19,57915,961

447,957–1–

Notes to the Consolidated Financial Statements(Notes to the basis for preparation of consolidated financial statements)
1. Scope of consolidation
Number of consolidated subsidiaries and names of
97 in total
principal subsidiaries(Domestic) Kawasaki Trading Co., Ltd., NIPPI Corporation, KCM Corporation, Kawasaki Machine
Systems, Ltd., Kawasaki Thermal Engineering Co., Ltd., KCMJ Corporation,
EarthTechnica Co., Ltd., Kawasaki Motors Corporation Japan(Overseas) Kawasaki Motors Corp., U.S.A., Kawasaki Motors Manufacturing Corp., U.S.A.,
Kawasaki Motors Enterprise (Thailand) Co., Ltd., Kawasaki Motors Europe N.V.,
Kawasaki Rail Car, Inc., P.T. Kawasaki Motor Indonesia, Kawasaki Motors (Phils.)
Corporation, Flutek, Ltd.
Two newly established subsidiaries were included in the scope of consolidation.
One consolidated subsidiary was eliminated due to liquidation and was excluded from the scope of
consolidation.
2. Application of the equity method(1) Number of non-consolidated subsidiaries andaffiliates and names of principal companies which are
subject to the equity method
Affiliates

17 in total

17, Nantong COSCO KHI ShipEngineering Co., Ltd.
One affiliate was excluded from application of the equity method due to sale of shares.

(2) Names of principal companies of non-consolidated
subsidiaries and affiliates not subject to the equity
methodAffiliates

Commercial Airplane Co., Ltd.,
Asahi Aluminium Co., Ltd.
These affiliates are excluded from application of the equity method because they do not haveany material impact on the consolidated financial statements with respect to net income andretained earnings.

3. Significant accounting policies(1) Standards and methods for evaluation of assets(i) Marketable securities
Bonds held to maturity
Principally stated by the amortized cost method
Other marketable securities- Securities with market quotations
Stated at market based on the market price on the settlement date of the accounting
period (with all valuation differences charged to net assets and the cost of sale computed
mainly by the moving average method).
- Securities without market quotations
Stated at cost principally using the moving average method
No trading securities are held by the Company.
(ii) Inventories
Stated at cost principally using the specific identification method, the moving-averagemethod, and the first-in first-out method (a method for lowering the book value due todeterioration of profitability)(iii) Net credit and net liability incurred by derivative transactions
Stated at market(2) Depreciation methods for fixed assets(i) Property, plant and equipment- Other than leased assets
The straight line method is principally used for depreciation.
- Leased assets
The leased assets involved in finance lease transactions that do not involve transfer ofownership are subject to the straight-line method, whereby the leasing period is deemed
to be the duration of useful life and the residual value as zero.
With respect to finance lease transactions not involving the transfer of ownership
undertaken prior to the first year of implementation of the revision of the lease–2–

accounting standards, the Company continues to apply accounting treatment similar tothat for ordinary operating leasing transactions.
(ii) Intangible assets- Other than leased assets
The straight line method is used. The Company’s own software (used by the Company)
is subject to amortization based on the period of internal use (generally five years).
- Leased assets
The leased assets involved in finance lease transactions that do not involve transfer ofownership are subject to the straight-line method, whereby the leasing period is deemed
to be the duration of useful life and the residual value as zero.
With respect to finance lease transactions not involving transfer of ownership
undertaken prior to the first year of the implementation of the revision of the leaseaccounting standards, the Company continues to apply an accounting treatment similar
to that for ordinary operating leasing transactions.
(3) Standards for translation of assets and liabilities denominated in foreign currencies into yen
The Company applies the revised accounting standards for transactions denominated in foreign
currencies (Opinion Concerning the Revision of Accounting Standards for Transactions
Denominated in Foreign Currencies issued by Business Accounting Council on October 22, 1999).
(4) Methods of accounting for provisions(i) Allowance for doubtful receivables
In order to provide losses due to doubtful receivables, an amount mainly based on thehistorical write-off rate is recorded for ordinary receivables, and the necessary amountbased on the estimated recoverability of individual cases is recorded for specified
receivables such as doubtful receivables.
(ii) Accrued bonuses
A provision is recorded based on estimated bonuses to employees.
(iii) Provision for product warranties
A provision is recorded for expenditures for warranties concerning construction contracts
based on past experience or on estimations of individual cases.
(iv) Provision for losses on construction contracts
A provision for an estimated amount of losses is recorded for the next fiscal year andthereafter concerning construction works which are anticipated to incur significant losses
and which allow reasonable estimation of the loss incurred at the end of fiscal year underreview among those construction works that have not been delivered as of the end of the
fiscal year.
(v) Provision for environmental measures
The Company provided an estimated amount to cover expenditures such as the disposal of
PCB (poly chlorinated biphenyl) waste required under the “Law Concerning Special Measuresfor Promotion of Appropriate Disposal of PCB Waste.”(5) Method of accounting for retirement benefits
A provision is recorded for the amount deemed to have been incurred as of fiscal year-end underreview based on the estimated retiree benefits and plan assets as of this fiscal year-end (including
the retirement benefit trust) in order to cover employee retirement benefits.
Actuarial differences are expensed effective from the next consolidated fiscal year mainly by thestraight line method over a period of 10 years, and prior service costs are expensed effective fromthis fiscal year chiefly by the straight line method for a period of 10 years.
Unrecognized actuarial differences and unrecognized prior service cost are recorded foraccumulated other comprehensive income’s cumulative adjustment for retirement benefits in the
net assets section of the consolidated balance sheet after adjusting for a tax effect.
With regard to the method for attributing expected retirement benefits to this consolidated
accounting period under review in calculating projected benefit obligations, the benefit formulabasis is applicable.
(6) Hedge accounting policy
The Company employs deferred hedge accounting.
(7) Standards for revenue recognition
The standard applied for posting revenue for construction contracts is in accordance with the
Accounting Standard for Construction Contracts (Accounting Standards Board of Japan(ASBJ),
Statement No. 15, December 27, 2007) and Guidance on Accounting Standard for Construction
Contracts (ASBJ Guidance No. 18, December 27, 2007). However, with respect to posting ofrevenue for long-term or major construction works (principally those with a construction period–3–longer than 1 year, and a contract amount of ¥3.0 billion or more) for which construction started
prior to March 31, 2009, we apply the percentage-of-completion method (the estimate for the rateof construction progress is mainly according to the cost accounting method), and with respect toother construction we apply the completed-contract method.
With regard to contracts for which the amount of revenue from delivery is not determined and/or
cost of sales is not finalized, both sales and cost of sales are estimated.
(8) Consumption tax and local consumption tax are subject to accounting treatment using the tax
excluded method.
(9) The Company adopts a consolidated tax payment system.
(10) Amortization method and amortization period of goodwill
Goodwill is amortized over the relevant period by the straight line method based on an estimateof the effective duration. However, all goodwill that is monetarily insignificant is amortized at oncein the fiscal year of incurrence.
(Additional Information)(Effects of the change of corporate tax rate, etc.)
In accordance with the promulgation of the "Law for Partial Amendment of the Income Tax Law,
Etc.” (2015, Law No. 9) and the “Law for Partial Amendment of the Local Tax Law, Etc.” (2015, Law
No. 2) on March 31, 2015, the income tax rates are to be reduced from the consolidated fiscal
years beginning on or after April 1, 2015.
The statutory tax rate, which is used to calculate deferred tax assets and liabilities, has been
reduced from the previous 35.4% to 32.9% and 32.1% for the temporary differences expected to
be cleared in the consolidated fiscal years beginning on April 1, 2015 and April 1, 2016,
respectively.
This tax rate change decreased net deferred tax assets (the amount obtained after deducting theamount of deferred tax liabilities) by ¥4,666 million, increased income taxes-deferred by ¥4,598
million, increased net unrealized gain on other securities by ¥138 million, decreased deferred gains
or losses on hedges by ¥71 million, and decreased accumulated adjustment for retirement benefitsby ¥135 million.
(Notes to Consolidated Balance Sheet)
1. The amounts presented are rounded down to the nearest unit.
2. Accumulated depreciation of property, plant and¥751,504 million
equipment
3. Assets pledged as collateral
Buildings and structures¥78 million
Investments in securities¥14 million
Other¥3,976 million
Shares of ENSEADA INDUSTRIA NAVAL S.A., an affiliate accounted forusing the equity method, are offered in security for loans from financial
institutions. Relevant liabilities as of the end of the fiscal year include
long-term debt of ¥45,500 million.
Besides those mentioned above, shares of affiliates in the amount of ¥30
million, which are eliminated in consolidated financial statements, areoffered in security (revolving pledge).
Liabilities relating to collateral
Short-term debt
¥10 million
Long-term debt
¥86 million
Other¥5 million
4. Guarantee obligations for bank loans of subsidiaries andaffiliates, etc. and employees¥21,779 million
5. With respect to some work in process, a trust beneficiaryright has been established with the expected tradereceivables as a trust asset. Work in process related tothe said trust asset amounts to ¥5,350 million.
(Notes to Consolidated Statement of Income)1. The amounts presented are rounded down to the nearest unit.
(Notes to Consolidated Statement of Changes in Net Assets)
1. The amounts presented are rounded down to the nearest unit.

–4–2. Total number of shares outstanding as of end of the fiscal year under review
Common stock 1,670,805,320 shares
3. Dividends
Resolution

Total dividend(million yen)

General Meetingof Shareholders
on June 26,
2014
Directors
Meeting on
September 30,
2014
Scheduled dateof resolution
General Meetingof Shareholders
on June 25,
2015

Dividend pershare (yen)Record date

Effective date

10,0306March 31, 2014

June 27, 2014

5,015

3

September 30,
2014

December 2,
2014

Record date

Effective date

March 31, 2015

June 26, 2015

Total dividend(million yen)

Dividend pershare (yen)11,694

7(Notes to financial instruments)
1. Matters regarding financial instruments
KHI Group raises necessary funds, in light of its business plans; for long-term working capital andcapital expenditure funds the Group predominantly raises funds through bank loans and issuance ofcorporate bonds, for short-term working capital it raises funds through bank loans and issuance ofshort-term bonds (electronic commercial paper), and so forth. Temporary surplus funds are invested inhighly secure financial assets. We use derivatives to avoid risks described hereunder and do not engage
in speculative transactions.
Operating receivables, namely, trade receivables are exposed to counterparty credit risk. The currency
exchange risk of the debts and credits in foreign currencies which arise from global business operations
is hedged by using foreign exchange forward contracts and currency swaps, and so forth in principle
against the net amount of the debts and credits in the foreign currency. Investments in securities aremainly shares of corporations which we have business dealings with, and of these investments, thoseshares that are listed are exposed to the risk of market price fluctuations.
Most trade payables, which are operating liabilities, have maturities of less than one year. Some ofthose are denominated in foreign currencies due to the import of materials, and so forth, and although
they are exposed to the risk of currency fluctuation, most are within the limit of the balance of accounts
receivable in the same foreign currency. Debts payable composed of loans, corporate bonds, and leaseobligations related to finance lease transactions are raised for the purpose of securing working capitaland capital expenditure funds, and the longest maturity from the date of balance sheet is about ten years.
Some of those instruments have floating interest and are denominated in foreign currencies and are
therefore exposed to the risk of interest rate and currency exchange fluctuations, however we hedge
those risks as required by using derivatives transactions (interest rate swaps and currency swaps).
Derivative transactions are transactions which include exchange forward contracts and currency
options and currency swaps transactions for the purpose of hedging exchange fluctuation risks of thedebts and credits in foreign currencies, and interest rates swap transactions and so forth for the purposeof hedging interest fluctuation risks of debts payable.
2. Matters concerning fair market value, etc. of financial instruments
The prices recorded in the consolidated balance sheet, fair market value and the difference between
those as of the end of this consolidated fiscal year are as follows.
(Unit: million yen)

(1) Cash on hand and in banks(2) Trade receivables(3) Long-term investment
securities(4) Trade payables(5) Electronically recorded

Price recorded in
the consolidatedbalance sheet(*)
51,645421,8908,806[253,907][85,453]–5–

Fair market
value(*)

Difference

51,645421,817
8,806

(73)
(0)

[253,907][85,453]-obligations-operating(6) Short-term debt
[122,338](7) Current bonds payable[20,000](8) Bonds payable[110,000](9) Long-term debt
[159,749](10) Derivative transactions[2,575](*) Figures which are posted as liabilities are shown in [ ].

[122,338][20,000][112,657][159,654][2,575](2,657)95-(Note 1) Matters concerning the method for calculating the fair market value of financial instruments andmarketable securities and derivatives transactions(1) Cash on hand and in banks
These instruments can be settled within short term and fair market value is roughly equal to bookvalue, therefore the fair market value is stated at book value.
(2) Trade receivables
Trade receivables are grouped into a specified period, and are stated at present value calculated by
the discount rate, which takes into account the respective period and credit risk.
(3) Long-term investment securities
The fair market value for these securities is stated at the price listed on the exchange.
(4) Trade payables, (5) Electronically recorded obligations-operating, (6) Short-term borrowings,(7) Current bonds payable
These instruments can be settled within short term and fair market value is roughly equal to bookvalue, therefore the fair market value is stated at book value.
(8) Bonds payable
The fair market value of these instruments is stated at market price.
(9) Long-term debt
The fair market value of long-term debt is determined by discounting the total of principal and interestby the interest rate on similar new debt.
(10) Derivatives transactions
The fair market value of derivatives is stated at the forward exchange rate or the price offered by the
trading financial institution.
(Note 2) Shares of affiliates, investments in affiliates and unlisted stocks, and investments in silent
partnerships (amount recorded in the consolidated balance sheet was ¥86,909 million) are notincluded in the table above, as it is deemed to be extremely difficult to ascertain fair market
value because those instruments have no market prices, and it is not possible to estimate their
future cash flows.
(Notes to per share information)
1. Net assets per share¥ 258.58
2. Net income per share¥ 30.89(Other)(Damage caused to NIPPI Corporation by snowfall)
The heavy snowfall on February 15, 2014 caused a hanger roof in Atsugi Works of NIPPICorporation, which is KHI's consolidated subsidiary, to collapse, causing damage to aircrafts of theJapan Maritime Self Defense Force that was undergoing regular maintenance. The Company and
NIPPI Corporation are currently having discussions with the Japanese Ministry of Defense
regarding the way to handle this case. Some discussion results could have a material impact on the
KHI Group’s financial performance.
(Business divestiture)
On November 28, 2014, the Company concluded an agreement with Hitachi Construction
Machinery Co., Ltd. (Tokyo) (hereinafter, “HCM”) on the assignment to HCM of all of the shares of
KCM Corporation (Hyogo Prefecture) (hereinafter, “KCM”), which is KHI's consolidated subsidiary.
Summary of the business divestiture(i) Name of the assignee
Hitachi Construction Machinery Co., Ltd.
(ii) Business description of the separated business
Manufacture and sale of construction machinery(iii) Principal reasons for carrying out the business divestiture
Since October 2008, the Company and HCM have had a business alliance covering
wheel-loader operations, including joint research and development of new models of wheel
loaders to meet the Tier 4 exhaust emission regulations. KCM was established in January 2009
and acquired the Company’s wheel-loader operations by assignment in April of the same year.

–6–With HCM’s capital investment in June 2010, it further accelerated joint development on newmodels of wheel loaders and on an efficient production system. The Company agreed to HCM’s
proposal, having judged that it would be effective to pursue synergies within the business field of
the HCM group for the further development of KCM under a policy of investing management
resources in a focused manner, in order to enhance enterprise value amid intensified global
competition in the construction machine industry. Currently under discussion is the transfer ofthe businesses of KCMJ Corporation, which engages in sales and servicing operations for KCM
products within Japan, to Hitachi Construction Machinery Japan Co., Ltd. at around the sametime as the execution date of the assignment of shares of KCM.
(iv) Date of the business divestiture (scheduled)
October 1, 2015(v) Overview of the transaction including legal form
Assignment of shares for which the consideration received is only cash assets.

–7–

Non-consolidated Statement of Changes in Net Assets(April 1, 2014 - March 31, 2015)(Unit: million yen)
Shareholders’ equity
Retained earnings
Other retained earnings
Reserve
Reserveforforadvanced Retained
specialdepreciati earnings
brought
depreciati
on offorwardon
fixed
assetsCapital surplus

Balance at beginning of theperiodChanges of items during
the period
Cash dividends
Net income for the year
Treasury stock
purchased
Treasury stock disposed
Retirement of treasury
stock
Reserve for special
depreciation
Reversal of provision for
special depreciation
Reserve for advanced
depreciation of fixed
assets
Reversal of provision foradvanced depreciationof fixed assets
Net changes of items
other thanshareholders' equity
Total changes of items
during the period
Balance at end of theperiodCommonstock

Legalcapitalsurplus

Othercapitalsurplus104,484

52,210

0

646

7,453

Treasury
stock

Total
shareholders’ equity(43)

272,842

108,090(15,045)
36,465(15,045)
36,465

0
(0)

(659)

(684)

(684)

0

0

660

-

15

(15)

-

(292)

292

-

442

(442)

-

(266)

266

-

-

-

(0)

(277)

176

20,861(23)

20,736

104,484

52,210

-

369

7,629

128,951(67)

293,578

Valuation and translation adjustments
Net
Gains
unrealized
Total valuation(losses) on
gains onand translation
hedgingsecurities net
adjustments
items
of taxBalance at beginning of the period
Changes of items during theperiodCash dividends

2,004(1,653)351

Total
net assets

273,193(15,045)

Net income for the year

36,465

Treasury stock purchased(684)

Treasury stock disposed0

Retirement of treasury stock-Reserve for special depreciation
Reversal of provision for special
depreciation
Reserve for advanced
depreciation of fixed assets
Reversal of provision foradvanced depreciation of
fixed assets
Net changes of items other thanshareholders' equity
Total changes of items during theperiodBalance at end of the period

681

(558)

122

122

681

(558)

122

20,8582,686(2,212)473

294,052–8–

Notes to the Non-consolidated Financial Statements(Notes to significant accounting policies)
1. Marketable securities are evaluated by the following methods. Trading securities and held-to-maturity
bonds are not held by the Company.
(1) Investment securities of subsidiaries and affiliates
Stated at cost using the moving-average method(2) Other marketable securities
・ Securities with market quotations
Stated at market based on the market price on the settlement date of the fiscal year.
Evaluation differences are all charged to net assets, and the amount obtained bysubtracting the amount of tax effect from the total amount of the evaluation difference isrepresented in the section of net assets as “Net unrealized gains on securities.”
The cost of sales is calculated chiefly by the moving average method.
・ Securities without market quotations
Stated at cost using the moving average method
2. Inventories are stated at cost using the specific identification method and the moving-averagemethod (a method for lowering the book value due to deterioration of profitability)
3. Derivatives are stated at market
4. Property, plant and equipment are subject to depreciation conducted by the following methods:(1) Other than leased assets
The straight line method is used.
(2) Leased assets
The leased assets involved in finance lease transactions that do not involve transfer of ownershipare subject to the straight-line method, whereby the leasing period is deemed to be the durationof useful life and the residual value as zero.
With respect to finance lease transactions not involving the transfer of ownership undertaken
prior to the first year of implementation of the revision of the lease accounting standards, theCompany continues to apply accounting treatment similar to that for ordinary operating leasingtransactions.
5. Intangible assets are subject to amortization conducted by the following methods:(1) Other than leased assets
The straight line method is used. The Company’s own software (used by the Company) is subject
to amortization based on the period of internal use (five years).
(2) Leased assets
The leased assets involved in finance lease transactions that do not involve transfer of ownershipare subject to the straight-line method, whereby the leasing period is deemed to be the durationof useful life and the residual value as zero.
With respect to finance lease transactions not involving transfer of ownership undertaken prior
to the first year of the implementation of the revision of the lease accounting standards, theCompany continues to apply an accounting treatment similar to that for ordinary operating
leasing transactions.
6. The Company applies the revised accounting standards for transactions denominated in foreign
currencies (Opinion Concerning the Revision of Accounting Standards for Transactions Denominatedin Foreign Currencies issued by the Business Accounting Deliberation Council on October 22, 1999) as
standards for translation of assets and liabilities denominated in foreign currencies into yen.

–9–

7. Standards of accounting for provisions(1) Allowance for doubtful receivables
In order to provide losses due to doubtful receivables, an amount based on the historical
write-off rate is recorded for ordinary receivables, and the necessary amount based on theestimated recoverability of individual cases is recorded for specified receivables such as doubtfulreceivables.
(2) Accrued bonuses
The Company has recorded a provision based on the estimated amount of payments in order tocover the bonus payouts to employees in accordance with the Company’s Rules for Bonus
Payment.
(3) Provision for product warranties
A provision is recorded for expenditures for warranties concerning construction contracts basedon past experience or on estimations of individual cases.
(4) Provision for losses on construction contracts
A provision for an estimated amount of losses is recorded for the next fiscal year and thereafterconcerning construction works which are anticipated to incur significant losses and which allow
reasonable estimation of the loss incurred at the end of this fiscal year among those construction
works that have not been delivered as of the end of the fiscal year.
(5) Employees’ retirement and severance benefits
A provision is recorded for the amount deemed to have been incurred as of this fiscal year-end
based on the estimated retiree benefits and plan assets as of this fiscal year-end (including thepension trust) to cover employee retirement benefits. With regard to the method for attributing
expected retirement benefits to this accounting period under review in calculating projected
benefit obligations, the benefit formula basis is applied. Actuarial differences are expensed by
the straight-line method over a period of ten years commencing from the current fiscal year, andpast service costs are expensed by the straight-line method over a period of ten years
commencing from the current fiscal year. Accounting procedures of unrecognized actuarial
differences and unrecognized prior service cost on retirement benefits are different from thosein the consolidated financial statements.
(6) Provision for environmental measures
The Company provided an estimated amount to cover expenditures such as the disposal of PCB
waste required under the “Law Concerning Special Measures for Promotion of Appropriate
Disposal of PCB (poly chlorinated biphenyl) Waste.”
8. Hedge accounting policy
The Company employs deferred hedge accounting.
9. Standards for revenue recognition
The standard applied for posting revenue for construction contracts is in accordance with the
Accounting Standard for Construction Contracts (ASBJ Statement No. 15, December 27, 2007) and
Guidance on Accounting Standard for Construction Contracts (ASBJ Guidance No. 18, December 27,2007). However, with respect to posting of revenue for long-term or major construction works (thosewith a construction period longer than 1 year, and a contract amount of ¥3.0 billion or more) for whichconstruction started prior to March 31, 2009 we apply the percentage-of-completion method (theestimate for the rate of construction progress is mainly according to the cost accounting method), andwith respect to other construction we apply the completed-contract method. With regard to contracts
for which the amount of revenue from delivery is not determined and/or cost of sales is not finalized,
both sales and cost of sales are estimated.
10. Consumption tax and local consumption tax are subject to the accounting treatment using the tax
excluded method.
11. We adopt a consolidated tax payment system.

– 10 –

(Change in Presentation)
1. “Recurring profit,” which in the previous fiscal year was included in “Other non-operating expenses” inthe accounting item “Non-operating expenses” (743 million yen in the previous fiscal year), increasedin terms of monetary importance and thus it has been presented separately for the fiscal year underreview.
(Notes to Non-Consolidated Balance Sheet)
1. The amounts presented are rounded down to the nearest unit.
2. Accumulated depreciation of property, plant and¥555,988 million
equipment
3. Monetary receivables from and payables to affiliates
Short-term monetary assets¥162,455 million
Long-term monetary assets¥11,062 million
Short-term monetary liabilities¥86,935 million
4. Asset pledged as collateral and liability relating tocollateral(1) Assets pledged as collateral
Investments in securities¥14 million
Shares of affiliates¥3,990 million
Buildings¥78 million
Total¥4,083 million
Shares of ENSEADA INDUSTRIA NAVAL S.A., an affiliate accounted for using
the equity method, are offered in security for loans from financial institutions.
Relevant liabilities as of the end of the fiscal year include long-term debt of¥45,500 million.
(2) Liability relating to collateralLong-term debt (due for repayment within one year)¥10 million
Long-term debt
¥86 million
5.
Guarantee liability for bank loans of subsidiaries andaffiliates, etc. and employees¥26,757 million
6.
With respect to some work in process, a trust
beneficiary right has been established with the
expected trade receivables as a trust asset. Work inprocess related to the said trust asset amounts to¥5,350 million.
(Notes to Non-consolidated Statement of Income)1. The amounts presented are rounded down to the nearest unit.
2. Transactions with affiliates
Net sales
Purchases
Transactions other than operating transactions¥ 446,635 million¥ 201,188 million¥ 29,803 million(Notes to Non-consolidated Statement of Changes in Net Assets)
1. The amounts presented are rounded down to the nearest unit.
2. Number of treasury stock at the end of fiscal year under review
sharesCommon stock 191,653(Notes to Tax Effect Accounting)Among other factors, the main contributing factor to deferred tax assets is the disallowance of various
provisions such as the employees’ retirement and severance benefits and the losses on construction
contracts, and the main contributing factor to the deferred tax liabilities incurred is net unrealized gain
on securities.
(Additional Information)(Effects of the change of corporate tax rate, etc.)
In accordance with the promulgation of the "Law for Partial Amendment of the Income Tax Law, Etc.”(2015, Law No. 9) and the “Law for Partial Amendment of the Local Tax Law, Etc.” (2015, Law No. 2) on
March 31, 2015, the income tax rates are to be reduced from the consolidated fiscal years beginning on
or after April 1, 2015.
The statutory tax rate, which is used to calculate deferred tax assets and liabilities, has been reduced
from previous 35.4% to 32.9% and 32.1% for the temporary differences expected to be cleared in the– 11 –

fiscal years beginning on April 1, 2015 and April 1, 2016, respectively.
This tax rate change decreased net deferred tax assets (the amount obtained after deducting theamount of deferred tax liabilities) by ¥4,421 million, increased income taxes-deferred by ¥4,469 million,
increased net unrealized gain on other securities by ¥127 million, and decreased deferred gains or losses
on hedges by ¥80 million.
(Notes to Leased Fixed Assets)
Other than the fixed assets recorded on the balance sheet, certain manufacturing facilities are used
under finance lease contracts not involving the transfer of the ownership of the leased property.
(Notes for transactions with interested parties)
Unit: million yen

Attributes

Affiliate

Company nameCommercial
Airplane Co.,
Ltd.

Percentage
of votingrights held

40% directly
heldRelationshipwithinterested
party
Sale of thecompany’s
products
Directors
concurrently
serving

Content oftransaction

Amount oftransaction

Sale of thecompany’s
products

144,310

Item

Balanceat fiscal
year-end

Accounts
receivable

18,039(Note 1) With respect to sale of products, the price is determined based on the same conditions as those of parties
that are not related to the Company.
(Note 2) Consumption tax is not included in the amount of transaction, but is included in the balance at fiscal
year-end.

(Notes to per Share Information)
1. Net assets per share¥176.01
2. Net income per share¥21.81– 12 –