Report of Earnings and Financial Statements for the
Fiscal Year Ended March 31, 2024 (Consolidated)<IFRS>
May 9, 2024
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:
Ordinary general meeting of shareholders:Submission of financial statements:
Commencement of dividend payments:
Supplementary materials to financial results:
Financial Results presentation:

June 26, 2024
June 26, 2024
June 27, 2024
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 Fiscal Year Ended March 31, 2024
(April 1, 2023 – March 31, 2024)(1) Operating Results(Percentage figures indicate change compared with the previous fiscal year)
Revenue
Business profit
Profit before tax
ProfitMillions of%Millions of%Millions of%Millions of
%
yen
yen
yen
yen
Year ended March 31,2024
Year ended March 31,
2023

1,849,287

7.2

46,201(43.9)

31,980(54.5)

27,310(50.6)

1,725,609

15.0

82,355171.2

70,349154.2

55,290272.7

Profit attributable toowners of parent
Millions of%yenYear ended March 31,2024
Year ended March 31,
2023

Total comprehensive
incomeMillions of%yen

Basic earnings
per shareyen

Diluted earnings
per shareyen

25,377(52.1)

73,745(9.9)

151.51-53,029319.6

81,83362.9

316.63-Return on equity
attributable to ownersof parent%

Ratio of profit before
tax to total assets

Ratio of businessprofit to revenue%
Year ended March 31,
4.2
1.2
2024
Year ended March 31,
9.8
3.0
2023
For reference: Share of profit of investments accounted for using equity method
Year ended March 31, 2024: ¥11,358 million
Year ended March 31, 2023: ¥3,314 million

1

%
2.5
4.8

(2) Financial Condition

Total assets

Total equity

Equityattributable toowners of parent

Millions of yen

Millions of yen

Millions of yen

Ratio of equity
attributable toowners of parent
to total assets%

2,680,176

654,549

634,090

23.7

3,785.57

2,457,725

596,872

576,20123.4

3,440.39

As of March 31,2024
As of March 31,2023

Equityattributable toowners of parent
per shareyen(3) Cash Flow Position(Millions of yen)
Cash and cash
Cash flows fromequivalents at end
financing activitiesof period

Cash flows fromoperating activities

Cash flows frominvesting activities

31,662(89,814)

12,911

84,153

23,617(77,457)

85,305

138,420

Year ended March 31,2024
Year ended March 31,
2023

2. Dividends
Dividend per share
Record date or term

1Q

2Q

3Q

yen

yen

yen

Total dividends
Payout ratio
paid(consolidated)
Year-end Full year
(annual)yenyenMillions ofyen%

Ratio ofdividends toequityattributable toowners ofparent(consolidated)%Year ended March 31,
30.00
60.00
90.00
15,10928.4
2023
Year ended March 31,
20.00
30.00
50.00
8,393
33.0
2024
Year ending March 31,
30.1
70.00
70.00
140.002025 (forecast)
Note: 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.

2.8
1.4

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2025
(April 1, 2024 – March 31, 2025)
Revenue

Full year

Millions ofyen%

2,250,000

21.7(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
130,000

181.4

2110,000

244.0

78,000207.4

465.69

Notes1. Changes affecting the status of material subsidiaries (scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates(1) Changes in accounting policies required by IFRS: None
(2) Changes in accounting policies due to other reasons: None
(3) Changes in accounting estimates: None
3. Number of shares issued and outstanding (common shares)(1) Number of shares issued as of period-end (including treasury shares)
March 31, 2024:
167,921,800 shares
March 31, 2023:
167,921,800 shares(2) Number of shares held in treasury as of period-end
March 31, 2024:
420,086 shares
March 31, 2023:
440,255 shares(3) Average number of shares during respective periods
March 31, 2024:
167,491,548 shares
March 31, 2023:
167,477,726 shares(Reference) Financial Results of the Company for the Fiscal Year Ended March 31, 2024
(April 1, 2023 – March 31, 2024)(1) Operating Results(Percentage figures indicate change compared with the previous fiscal year)
Net salesYear ended March 31,2024
Year ended March 31,
2023

Operating profit%

Millions ofyen

837,834

5.9(38,370)-(10,984)-(16,137)-

791,099(11.3)(1,542)-2,970(69.0)

11,998(43.6)

yen%

Millions ofyenProfitMillions ofyen

Earnings per share
Year ended March 31,2024
Year ended March 31,
2023

Ordinary profit%

Millions ofyen%

Earnings per share– diluted
yen(96.34)

-

71.63

-

(2) Financial Condition
Total assets

Net assets

Equity ratio

Millions of yen
Millions of yen
1,623,931
242,830
As of March 31, 2024
1,522,841
272,022
As of March 31, 2023
For reference: Shareholders’ equity
As of March 31, 2024 ¥242,830 million
As of March 31, 2023 ¥272,022 million

3

%
15.0
17.9

Net assets per shareyen
1,449.71
1,624.19

* Report of Earnings and Financial Statements are not subject to audit.
* 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. Overview ofoperating results (4) Consolidated earnings forecast” on page 12 in the Accompanying Materials.
How to Obtain Supplementary Material on Financial Results and Details of the Financial Results
The Company plans to conduct a presentation for institutional investors, analysts and the press on
Thursday, May 9, 2024, and to post the presentation material on financial results to be used for thepresentation on TDnet and the Company’s website simultaneously with the announcement of financial
results.

4

Accompanying Materials – Contents
1. Overview of operating results

6(1) Consolidated operating results

6(2) Consolidated financial condition

11(3) Cash flows

11(4) Consolidated earnings forecast

12

2. Basic rationale for selecting accounting standards

12

3. Consolidated Financial Statements and Notes

13(1) Consolidated Statement of Financial Position

13(2) Consolidated Statement of Profit and Loss and

14

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

15(4) Consolidated Statement of Cash Flow

17(5) Notes Concerning Consolidated Financial Statements

18(Notes on the going-concern assumption)

18(Segment information)

18(Per share data)

19(Material subsequent events)

19(Other notes)

20

4. Supplementary information on consolidated earnings forecasts for the fiscal year ending
March 31, 2025

521

1. Overview of operating results(1) Consolidated operating results
The global economy has remained strong, mainly in personal consumption, due to favorable
employment and income conditions in the United States. On the other hand, the outlook remains
uncertain due to factors such as the downturn in China’s economy caused by the prolonged real estate
recession and an increase in geographical risks.
In Japan, consumer sentiment is expected to be improved by wage increases exceeding a hike inprices, and the economy will continue to recover moderately due to increasing capital investment andinbound demand. However, we need to keep a close watch on the impact on the economy caused by arise in interest rates resulting from the policy changes made by the Bank of Japan, and subsequentexchange rate movements.
In this business environment, the Group’s consolidated orders received in the fiscal year ended
March 31, 2024, increased due to an increase mainly in the Aerospace Systems segment, despite
decreases mainly in the Rolling Stock segment and the Precision Machinery & Robot segment.
Revenue increased from the previous fiscal year as a whole, due to higher sales in the Rolling Stocksegment and the Aerospace Systems segment. Business profit decreased year on year mainly due todeterioration in the Aerospace Systems segment, the Powersports & Engine segment and the Precision
Machinery & Robot segment, despite an increase mainly in the Energy Solution & Marine Engineering
segment. Profit attributable to owners of parent decreased mainly due to a decrease in business profit.
As a result, the Group’s consolidated orders received increased by ¥45.9 billion year on year to¥2,083.4 billion, consolidated revenue increased by ¥123.6 billion year on year to ¥1,849.2 billion,
business profit decreased by ¥36.1 billion year on year to ¥46.2 billion, and profit attributable toowners of parent decreased by ¥27.6 billion year on year to ¥25.3 billion. Ratio of business profit torevenue was 2.5%, after-tax ROIC was 2.8%, and ROE was 4.2%.* The current cost of capital(WACC) is estimated to be in the 4-5% range, but it is possible to increase in the future considering
the latest stock price trends.
*After-tax ROIC = (profit attributable to owners of parent + interest expense × (1effective tax rate)) ÷ invested capital (average of net interestbearing debt at the beginning and end of the fiscal year + averageof shareholders' equity at the beginning and end of the fiscal year)

6Consolidated operating performance in the fiscal year ended March 31, 2024, is summarized bysegment below.

Segment Information
Segment revenue, business profit (loss), and orders received (billions of yen)
Years ended March 312023(A)

2024(B)

Orders received
Change (B – A)

Years ended March 31

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Revenue

Business
profit(loss)

Systems

348.8

14.8

396.1

(15.0)

47.3

Rolling Stock

131.9

1.3

195.9

3.7

314.5

3.9

353.2

252.6

8.7

Engine

591.1

Other

2023

2024

Change(A)(B)(B – A)(29.8)

345.5

692.6

347.0

64.0

2.3

313.2

88.7

(224.4)

31.9

38.6

28.0

439.0

401.6

(37.3)

227.9

(1.9)

(24.7)(10.7)

262.0

213.3

(48.6)

71.5

592.4

48.0

1.2

(23.4)

591.1

592.4

1.2

86.3

(1.8)

83.5

1.1

(2.8)

2.9

86.4

94.5

8.1

-

(16.2)-(21.7)

-

(5.4)

-

-

-

1,725.6

82.3

1,849.2

46.2

123.6

(36.1)

2,037.4

2,083.4

45.9

Aerospace

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

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

7

Aerospace Systems
Regarding the business environment surrounding the Aerospace Systems segment, demand from
Ministry of Defense in Japan is expected to increase continuously under the Ministry of Defense’s
policy of drastic strengthening of defense capabilities. With respect to commercial aircraft, demandfor both commercial aircraft airframes and jet engines is increasing due to the recovery of air passenger
demand to nearly pre-COVID levels and the strong COVID-19 rebound demand for commercial
aircraft airframes.
Amid such an operating environment, consolidated orders received increased by ¥347.0 billion year
on year to ¥692.6 billion mainly due to increases in orders received from Ministry of Defense in Japanand component parts of airframes for commercial aircraft.
Consolidated revenue increased by ¥47.3 billion year on year to ¥396.1 billion mainly due toincreases in sales for Ministry of Defense in Japan and component parts of airframes and jet engines
for commercial aircraft, despite the lump-sum recognition of losses related to the in-service issues ofjet engines for commercial aircraft.
Business loss came to ¥15.0 billion, deteriorating ¥29.8 billion year on year, mainly due to the lumpsum recognition of losses related to the in-service issues of jet engines for commercial aircraft, despite
increases due to increases in sales for Ministry of Defense in Japan and component parts of airframes
for commercial aircraft.
Rolling StockRegarding the business environment surrounding the Rolling Stock segment, the number of railway
users has recovered due to the convergence of the infection by COVID-19 pandemic, and investments
in rolling stock have resumed both in Japan and overseas. On the other hand, although the impact on
the current situation is limited, we need to keep a close watch on factors such as increasing time for
procurement of equipment, mainly electronic components, while they appear to be converging. In themedium and long term, however, relatively stable growth is expected around the world due todevelopment of urban transportation in overseas markets, as well as demand for railway infrastructure
following economic development in Asian countries.
Amid such an operating environment, consolidated orders received decreased by ¥224.4 billion to¥88.7 billion compared to the previous fiscal year, when there were orders for the large-scale projectsuch as new generation subway cars for the New York City Transit.
Consolidated revenue increased by ¥64.0 billion year on year to ¥195.9 billion mainly due to anincrease in sales of railcars for the United States, despite a decrease in sales of railcars for domestic
market.
Business profit increased by ¥2.3 billion year on year to ¥3.7 billion mainly due to an increase inprofit resulting from an increase in the revenue, despite a decrease in domestic operations.

8Energy Solution & Marine Engineering
The business environment surrounding the Energy Solution & Marine Engineering segment has
been strongly influenced by the worldwide trend toward achieving carbon neutrality. As a result,contacts and requests for cooperation are increasing regarding decarbonization solutions, includinghydrogen products of the Company’s strength. Also, demand for distributed power sources in Japanand overseas and, for energy infrastructure development in emerging countries, remains strong, while
there is ongoing demand for the replacement of aging facilities for refuse incineration plants in Japan.
On the other hand, besides the uncertainty about the current situation, such as the stability of fuel gas
supply required for the operation of power generation facilities, it is necessary to pay attention to theimpact on orders and revenues due to the recent persistently high prices of raw material, equipment,
and fuel.
Amid such an operating environment, consolidated orders received decreased by ¥37.3 billion to¥401.6 billion compared to the previous fiscal year, when there were more orders for LPG/NH3
carriers, despite orders for naval ships equipment for Ministry of Defense in Japan and refuse
incineration plants in Japan.
Consolidated revenue increased by ¥38.6 billion year on year to ¥353.2 billion mainly due to theship & offshore structure field centered on LPG/NH3 carriers, and the energy field.
Business profit increased by ¥28.0 billion year on year to ¥31.9 billion due to an increase in shareof profit of investments accounted for using equity method in the ship & offshore structure field andan increase in profit due to higher sales in the energy field.
Precision Machinery & Robot
Regarding the business environment surrounding the Precision Machinery & Robot segment, in the
precision machinery field, while the performance has continued to be strong in the construction
machinery market outside China, demand in the Chinese construction machinery market was sluggish
due to the impact of the prolonged real estate recession and other factors. In the robotics field, sluggish
demand for robots for semiconductor manufacturing equipment bottomed out, and the demand will
recover from fiscal year 2024 while capturing new demand related to AI and green investment.
Meanwhile, business conditions in China, the biggest consumer country for the general industrial
robots, remain sluggish. Therefore, inventory adjustments have continued, but demand for automation
is surely increasing due to a rise in labor costs and labor shortages.
Amid such an operating environment, consolidated orders received decreased by ¥48.6 billion year
on year to ¥213.3 billion mainly due to the general decline in hydraulic equipment for the Chineseconstruction machinery market and industrial robots.
Consolidated revenue decreased by ¥24.7 billion year on year to ¥227.9 billion mainly due to thegeneral decline in hydraulic equipment for the Chinese construction machinery market and industrial
robots.
9

Business loss came to ¥1.9 billion, deteriorating ¥10.7 billion year on year, mainly due to the impactof lower capacity utilization as well as a decrease in the revenue.
Powersports & Engine
Regarding the business environment surrounding the Powersports & Engine segment, althoughdemand has continued to be strong in the major markets, the United States and Europe, market
competition has intensified as a result of supplies increased from manufacturers after the convergenceof the supply chain disruptions in the previous fiscal year. In addition, as recreational demand has
decreased, the mid-to-large motorcycle market outside Europe and the United States has reduced ingeneral.
Amid such an operating environment, consolidated revenue of ¥592.4 billion was on par with theprevious year's result, mainly due to decreases in motorcycles for China and Southeast Asia andgeneral-purpose engines, despite increases in four-wheeled vehicles for North America andmotorcycles for Europe.
Business profit decreased by ¥23.4 billion year on year to ¥48.0 billion mainly due to an increasein fixed costs and the recording of recall-related expenses*, which is related to four-wheeled vehicles
for the United States.
*The Company received a notice from the U.S. Consumer Product Safety Commission that a penalty

will be imposed for the recall of certain models of four-wheeled vehicles for the United States.
Other Operations
Consolidated revenue decreased by ¥2.8 billion year on year to ¥83.5 billion.
Business profit came to ¥1.1 billion, improving ¥2.9 billion year on year.
In the Group Vision 2030, the Group will focus on three fields; “A Safe and Secure Remotely
Connected Society,” “Near-Future Mobility” and “Energy and Environmental Solutions,” and ismaking steady progress in creating solutions to social issues, such as the medical and healthcare
business including surgical support robots and the commercialization of delivery robots and unmannedtransport helicopters, as well as the promotion of hydrogen business and electrification to realize acarbon neutral society at an early date.
Furthermore, the Group cooperates in providing supports for the early recovery of areas affected by
the Noto Peninsula Earthquake and enhances support packages that can respond to various natural
disasters, which are becoming increasingly likely in the future.

10(2) Consolidated financial condition
Assets, liabilities, and equity
1. Assets
Current assets were ¥1,726.9 billion, ¥156.5 billion increase from the previous fiscal year due to anincrease mainly in trade and other receivables.
Non-current assets were ¥953.2 billion, ¥65.8 billion increase from the previous fiscal year mainly
due to an increase in property, plant and equipment.
As a result, total assets were ¥2,680.1 billion, ¥222.4 billion increase from the previous fiscal year.

2. Liabilities
Interest-bearing debt was ¥653.9 billion, ¥64.0 billion increase from the previous fiscal year.
Liabilities were ¥2,025.6 billion, ¥164.7 billion increase from the previous fiscal year mainly due
to increases in interest-bearing debt and trade and other payables.

3. Equity
Equity was ¥654.5 billion, ¥57.6 billion increase from the previous fiscal year mainly due to therecording of profit attributable to owners of parent as well as an increase in exchange differences ontranslation of foreign operations.

(3) Cash flows
Cash flows
Cash and cash equivalents (Hereinafter referred to as “net cash”) at the end of this fiscal year were
¥84.1 billion, a decrease of ¥54.2 billion compared to the previous fiscal year. The cash flow situations
and relevant factors in this fiscal year are stated below.

1. Cash flows from operating activities
Operating activities provided net cash of ¥31.6 billion, an increase of ¥8.0 billion compared to theprevious fiscal year. Major sources of operating cash flows included depreciation and amortization of¥80.9 billion and an increase in trade and other payables of ¥43.5 billion. Major uses of operating cash
flows included an increase in trade and other receivables of ¥186.4 billion and a decrease in othercurrent liabilities of ¥19.0 billion.

2. Cash flows from investing activities
Investing activities used net cash of ¥89.8 billion, which is ¥12.3 billion more than in the previous
fiscal year. This was mainly due to purchase of property, plant and equipment, as well as intangible
assets.

3. Cash flows from financing activities
Financing activities provided net cash of ¥12.9 billion, which is ¥72.3 billion less than in theprevious fiscal year. This was mainly due to proceeds from factoring agreements.

11(4) Consolidated earnings forecast
With respect to the earnings forecasts for the fiscal year ending March 31, 2025, the Company
expects revenue of ¥2,250.0 billion, a ¥400.8 billion year on year increase, due to higher sales mainly
caused by an increase in defense demand in the Aerospace Systems segment, and increased productionof four-wheeled vehicles in the Powersports & Engine segment.
The Company expects business profit of ¥130.0 billion, a ¥83.8 billion year on year increase,because of higher sales above mentioned, and efforts to improve profit margins in each segment, as
well as the reaction to the lump-sum recognition of losses related to the in-service issues of PW1100GJM implemented in the previous fiscal year. Furthermore, the Company expects profit attributable toowners of parent of ¥78.0 billion, after-tax ROIC of 6.7%, and ROE of 11.5%.
The forecast of consolidated orders received is expected to increase ¥276.5 billion year on year to¥2,360.0 billion mainly due to an increase in the revenue in the Powersports & Engine segment, andorders for projects abroad in the Rolling Stock segment.
The exchange rates assumed in this forecast are ¥140 to the U.S. dollar and ¥150 to the euro.

Note regarding consolidated earnings forecast
The above earnings forecast is based on information available at the time of preparation, andincludes risks and uncertainties. We therefore discourage making investment decisions depending
solely on this forecast. Please note that actual earnings may differ materially from this forecast, due toa variety of important factors stemming from changes in 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 systemrelated issues.

2. Basic rationale for selecting accounting standards
Considering the progress of global business activities, the Group voluntarily applies International
Financial Reporting Standards (IFRS) from the first quarter of the fiscal year ended March 31, 2023,
to enhance the global comparability of financial statements in the capital market and to improve thegroup management by standardizing the accounting process within the group.

123. Consolidated Financial Statements and Notes(1) Consolidated Statement of Financial Position
Millions of yen
As of
As of
March 31, 2023
March 31, 2024
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Inventories
Income taxes receivable
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Right-of-use assets
Investments accounted for using equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds, borrowings and other financial liabilities
Income taxes payable
Contract liabilities
Provisions
Refund liabilities
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
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

13

138,420
470,398
159,422
690,431551
10,741
100,385
1,570,350

84,153681,030
136,706
710,207
2,158
11,024
101,644
1,726,925

451,010
66,24868,42277,44070,224110,264
43,763887,374
2,457,725

496,331
69,61764,82490,95480,762
117,452
33,307953,250
2,680,176

452,250
340,176
18,071
256,247
22,897
10,258208,760
1,308,661

521,734
453,694
7,928
265,468
34,24272,518
185,902
1,541,489

445,082
91,552
1,942
833
12,779552,190
1,860,852

391,539
74,604957
707
16,327484,137
2,025,626

104,484
55,716380,255(1,107)36,852576,201
20,670596,872
2,457,725

104,484
56,455405,156(1,060)69,054
634,090
20,459654,549
2,680,176

(2) Consolidated Statement of Profit and Loss andConsolidated Statement of Comprehensive Income
Consolidated Statement of Profit and Loss

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit of investments accounted for using equity method
Other 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

Millions of yen
Year ended
Year ended
March 31, 2023
March 31, 2024
1,725,609
1,849,287
1,391,787
1,537,050
333,822
312,237
252,311
276,044
3,314
11,358
4,850
5,704
7,320
7,053
82,355
46,201
2,291
3,040
14,297
17,261
70,34931,98015,0584,670
55,29027,31053,0292,261

25,377
1,932

316.63151.51

Consolidated Statement of Comprehensive Income

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

14

Millions of yen
Year ended
Year ended
March 31, 2023
March 31, 2024
55,29027,310

(363)

4,214

14,35315,0170

1

13,98919,233

1,932
10,112

103
23,302508

3,795

12,553
26,542
81,833

27,202
46,43573,74578,785
3,048

71,0092,736

(3) Consolidated Statement of Changes in Equity
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
Disposal of treasury shares
Transfer of loss on disposal oftreasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of March 31, 2023

Share capital

Capital surplus

104,484

55,525Retainedearnings

320,67153,029Treasury shares

Remeasurementsof defined
benefit plans

Financial assets
measured at fairvalue throughothercomprehensive
income(1,129)-4,435

14,235
14,235

(370)
(370)

(14,235)43

22(1,107)(14,235)
-

43
4,109

Total equity
attributable toowners ofparentNon-controllinginterests

505,484
53,02925,75578,785(4)
26

19,407
2,261
787
3,048

53,029
(4)
26

(0)
0

(0)
(8,394)
14,191

190

104,484756
6,554
380,255190
55,716Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Transfer of loss on disposal oftreasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of March 31, 2023

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations(284)

21,78025,931

1,603
1,603

10,286
10,28625,75525,755

Total(14,191)(8,394)
-

190
(643)

(643)

(643)

(643)
676

(14,834)
36,852756(8,067)576,201

32,066

15

Total

524,891
55,29026,542
81,833
(4)
26
-

(964)

(9,358)
-

366

366

(2,079)(2,079)

891

1,082
(643)

(1,785)
20,670756(9,852)596,872

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

Balance as of April 1, 2023
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Transfer of loss on disposal oftreasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of March 31, 2024

Share capital

Capital surplus

104,484

55,716

Retainedearnings

380,255
25,377

Treasury shares

Remeasurementsof defined
benefit plans

Financial assets
measured at fairvalue throughothercomprehensive
income(1,107)-

4,109

15,075
15,075

4,167
4,167

(15,075)2,130

46(1,060)(15,075)-

2,130
10,407

Total equity
attributable toowners ofparentNon-controllinginterests

576,201
25,37745,631
71,009(7)
54

20,670
1,932
804
2,736

25,377(7)
54

0(13,430)
12,9458739

104,484739
56,455(477)
405,156

Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2023
ProfitOther comprehensive income
Comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Transfer of loss on disposal oftreasury shares
Dividends
Transfer to retained earnings
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest ofparent due to transactions with
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners
Balance as of March 31, 2024

Cash flow
hedgesExchangedifferences ontranslation offoreign
operations

676

32,06636,852

146
146

26,241
26,241

45,631
45,631

Total

Total

596,872
27,31046,43573,745
(7)
54
-

(17)

(12,945)(13,430)
-

(17)

(9)

(1,022)(14,452)
(9)
-

739
(467)
(467)
355

(17)
58,291

16

(467)

(467)

(13,429)
69,054(13,120)634,090(1,926)(1,186)(467)(2,948)20,459(16,068)
654,549

(4) Consolidated Statement of Cash FlowMillions of yen
Year ended
Year ended
March 31, 2023
March 31, 2024
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
Increase (decrease) in refund liability
Increase (decrease) in provisions
Decrease (increase) in other current assets
Increase (decrease) in other current 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
Purchase of intangible assets
Proceeds from sale of intangible assets
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
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Dividends paid
Proceeds from factoring agreements
Repayment of liabilities under factoring agreements
Dividends paid to non-controlling interests
Payments for acquisition of subsidiary shares
not resulting in change in scope of consolidation
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

17

55,29077,374
4,606
7,312(3,314)
1,042
15,0581,281(59,334)(50,291)(64,217)
42,213(28,508)(3,730)
1,648(4,028)(3,168)43,231
11,51043,9753,328
332(5,005)(19,013)
23,61727,31080,982
1,007
11,590(11,358)
2,050
4,670
(196)
(186,486)
22,725
9,903
43,5858,632
1,057
61,004
10,084(6,879)(19,070)
1,685
62,2988,504
364(8,110)(31,393)
31,662(58,943)2,180(11,001)29(80,063)2,669(16,480)80(6,702)

(949)

160

1,124

(648)
(3,224)
692(77,457)

(20)
(92)
3,918
(89,814)36,664(14,545)
18,500(21,987)
9,000(20,000)(8,383)
130,662(37,861)(964)

80,229(16,526)
31,582(23,041)
10,000(40,000)(13,415)
103,482(105,343)(1,022)(11)(1,563)(5,766)85,305(1,556)29,909108,511
138,420(11,470)
12,911(9,027)(54,267)
138,420
84,153

(5) Notes Concerning Consolidated Financial Statements
Notes on the going-concern assumption
Not applicable.

Segment information
Year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Finance costs
Profit before tax
Other items
Depreciation andamortization
Impairment loss
Share of profit(loss) ofinvestments
accounted forusing equity
methodEnergyPrecision
Solution & Machinery & Powersports& Engine
MarineRobot
Engineering

Rolling
Stock

Millions of yen
Other

Total

Eliminations
Consolidated
and
total
corporate *2

348,880

131,935

314,552

252,697591,151

86,392

1,725,609-

1,725,609

10,25414

21,303

19,315

1,033

23,27075,191(75,191)-

359,134

131,949

335,856

272,013592,184

109,662

1,800,801(75,191)

1,725,609

14,877

1,372

3,905

8,766

71,533(1,845)98,611(16,256)

82,3552,291(14,297)
70,34929,499

1,913

6,231

11,271

17,408

1,413

67,738

9,636

77,374

1,649

-

554

-

-

2,402

4,606

-

4,606

-

8

6,016

(2,761)

(40)

104

3,328

(14)

3,314

Notes: 1. Intersegment revenue and transfers are recorded at normal market prices.
2. Eliminations and corporate of negative ¥16,256 million include negative ¥838 million for intersegment
transactions and negative ¥15,418 million for general and administrative expenses not attributed reportablesegments.
3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses,
share of profit and loss of investments accounted for using equity method, other income, and other expenses
from revenue.

18

Year ended March 31, 2024 (April 1, 2023 – March 31, 2024)
Aerospace
Systems
Revenue fromexternal customers
Intersegment
revenue andtransfers*1
Total revenue
Business profit(loss) *3
Finance income
Finance costs
Profit before tax
Other items
Depreciation andamortization
Impairment loss
Share of profit(loss) ofinvestments
accounted forusing equity
methodEnergyPrecision
Powersports
Solution &Machinery & & Engine
MarineRobot
Engineering

Rolling
Stock

Millions of yen
Other

Total

Eliminations
Consolidated
and
total
corporate *2

396,188

195,940

353,248

227,935

592,42183,552

1,849,287-

1,849,287

12,09916

26,487

17,938

1,173

25,513

83,228(83,228)-

408,288

195,956

379,736

245,873593,594

109,066

1,932,515(83,228)

1,849,287(15,004)

3,752

31,911(1,947)48,071

1,140

67,924(21,723)

46,201
3,040(17,261)
31,98030,899

2,124

6,317

10,80819,7801,449

71,3799,602

80,982

-

-

567

-

440

-

1,007

-

1,007

-

2

13,762(2,531)-

136

11,370(12)

11,358Notes: 1. Intersegment revenue and transfers are recorded at normal market prices.
2. Eliminations and corporate of negative ¥21,723 million include negative ¥1,753 million for intersegment
transactions and negative ¥19,970 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.

Per share data
Basis for calculating basic earnings per share attributable to owners of parent is as follows:Year ended
Year ended
March 31, 2023
March 31, 2024
Profit attributable to owners of parent (Millions of yen)
53,02925,377
Average number of common shares (Thousands of shares)
167,477
167,491
Basic earnings per share (yen)316.63151.51
Notes:1. Diluted earnings per share are not stated because there are no potential shares.
2. The Company’s shares held by trusts whose beneficiaries are directors and others recorded as treasury
shares under equity include the number of shares held in treasury to be deducted from the calculation of
the average number of shares during respective periods in computing the earnings per share. (At the endof the previous consolidated fiscal year: 398,600 shares, at the end of this consolidated fiscal year: 376,200
shares).

Material subsequent events
Not applicable.

19Other notes
The recording of loss related to the in-service issues of PW1100G-JM Engine
The PW1100G-JM Engine program (Hereinafter referred to as the program), in which the Company
participates through International Aero Engines, LLC (Hereinafter referred to as IAE), a multinational
collaboration on civil aero engine, has been impacted by the challenge of managing significant inservice issues, so the Company is currently working hard with IAE to remedy this situation. As amember of this program, the Company would cover its portion of the loss associated with in-service
issues. Therefore, ¥59,611 million has been recorded on “Refund liabilities” in the consolidated
statement of financial position and ¥60,047 million has been deducted from “Revenue” in the
consolidated statement of profit and loss as a partial burden of the loss related to AirworthinessDirectives which mandated additional inspections.

20

4. Supplementary information on consolidated earnings forecasts for the fiscal year ending
March 31, 2025
(i) Revenue and business profit (loss)
Billions of yen

Reportable segment

Forecast for the year
ending March 31, 2025
(fiscal 2024)
(A)

580.0
210.0

Business
profit(loss)
45.0
7.0

410.0
230.0
720.0
100.0

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

2,250.0

Year ended March 31,
2024 (fiscal 2023)(Actual)
(B)

396.1
195.9

Business
profit(loss)(15.0)
3.7

30.0

353.2

7.0
68.0
5.0
(32.0)
130.0

227.9
592.4
83.5

Revenue

1,849.2

Change (A – B)

183.8
14.1

Business
profit(loss)
59.9
3.2

31.9

56.8

(2.0)

(1.9)
48.0
1.1
(21.7)
46.2

2.1
127.6
16.4

8.9
20.0
3.8
(10.2)
83.8

Revenue

400.8(ii) Orders received
Billions of yen

Reportable segment

Aerospace Systems
Rolling StockEnergy Solution & Marine
Engineering
Precision Machinery & Robot
Powersports & Engine
Other
Total

Forecast for the year
ending March 31, 2025
(fiscal 2024)(A)

Year ended March 31,
2024 (fiscal 2023)(Actual)(B)

Change (A – B)

750.0
160.0

692.6
88.7

57.4
71.2

390.0

401.6

(11.7)

240.0
720.0
100.0
2,360.0

213.3
592.4
94.5
2,083.4

26.6
127.6
5.4
276.5

Note: 1. Assumed exchange rate for the fiscal year ending March 31, 2025: ¥140/USD, ¥150/EUR
2. The Powersports & Engine segment’s orders received are equal to its revenue as production is based mainlyon estimated demand.

21