Financial Results for Second Quarter FY 2011
(for the year ending March 31, 2012)

November 2, 2011
Kawasaki Heavy Industries, Ltd.

Table of Contents

I. Consolidated Results for Second Quarter FY2011
 Summary of Financial Results1 Details of Change in Profit I
2
 Details of Change in Profit II3
 Financial Results by Segment
4
Ship & Offshore Structure
5
Rolling Stock6
Aerospace
7
Gas Turbine & Machinery
8
Plant & Infrastructure
9Motorcycle & Engine
10
Precision Machinery11 Financial Condition and Cash Flows
12

II．Forecast for FY2011
 Consolidated Operating Performance Forecast by Segment
 R&D/CAPEX/Number of Employees

13
14
15

I. Consolidated Results for Second Quarter FY2011

Summary of Financial Results(Billion Yen)FY2010.1H

FY2011.1H

vs. FY2010.1H

Change（※）

ActualForecast
in AprilActualvs. FY2010.1H

vs. Forecast
in April< Orders Received >Decrease as a whole mainly due to decreasein orders received in Rolling Stock and Plant& Infrastructure segments that had large-scaleorders received in the previous same period,
despite increase in orders received in Gas
Turbine & Machinery and Precision
Machinery segments

Orders Received

613.4

-

513.4

- 99.9-Net Sales

571.7

650.0

584.9

+ 13.2- 65.0Operating Income

20.9

20.0

26.6

+ 5.7

+ 6.6

< Net Sales >Increase as a whole because a sales increasein Precision Machinery, Aerospace and Plant& Infrastructure segments exceed a sales
decrease in Gas Turbine & Machinery andShip & Offshore Structure segments

Recurring Profit

21.2

21.0

27.2

+ 5.9

+ 6.2

Net Income

12.3

12.0

17.8

+ 5.4

+ 5.8

< Profits >Exchange Rates ( weighted-average )Yen / US$90

80

Yen / EUR

116

116

（※）Assumed exchange rates for forecast in April : 1US$=83Yen

Profit increased as a whole because the effectsof sales increase in Precision Machinery,
Aerospace and Plant & Infrastructure
segments and other factors exceed the adverse
impact of the appreciation of the yen

1EUR=115Yen-1-

Details of Change in Profit I- FY2011.1H vs. FY2010.1H + 5.7 ( FY2010.1H 20.9  FY2011.1H 26.6 )【Operating Income】(Billion Yen)

vs. Forecast in April + 6.6 billion yen（Forecast in April 20.0  Actual 26.6)
Adverse impact of fluctuation of foreign exchange rate
Effects of sales decrease
Impact of decline in material price
Expenses deferrals
Improvements and other factors

- 4.1
- 4.0
+ 3.3
+ 7.3
+ 4.0

FY2011.1H
Improvements andother factors
impact of
FY2010.1H Adverse
fluctuation of

20.9+ 16.9foreign exchange rate

- 13.6

Increase in selling, general &administrative expenses
Impact of decline
in material price
- 2.8

+ 0.8

-2-

Effects ofsales increase

+ 4.5

26.6

Details of Change in Profit II- FY2011.1H vs. FY2010.1H (Billion Yen)

【Non-operating Income/Expenses】+ 0.2 ( FY2010.1H 0.3  FY2011.1H 0.6 )Net Interest expense ( incl. dividend income )Equity in income of unconsolidated subsidiaries and affiliates
Gain and loss on foreign exchange
Others【Extraordinary Income/Losses】

0
0
- 1.0
+ 1.3

( - 1.1  - 1.1 )( 4.8 4.8 )( - 1.9  - 2.9 )( - 1.4 0)- 0.3 （ FY2010.1H - 0.5  FY2011.1H - 0.9)※

Loss on impairment of fixed assets
Effect of application of accounting for asset retirement obligations
Bad debt expense for doubtful accounts of affiliates
※

- 0.9
+ 0.2
+ 0.2

Loss on impairment of idle assets whose book values were written down to the recoverable amounts-3-(0  - 0.9 )( - 0.2 0)( - 0.2 
0)Financial Results by Segment(Billion Yen)

Orders Received

Net Sales

Operating Income/Loss

FY20101H

FY2011
1H

ChangeFY20101H

FY2011
1H

ChangeFY20101H

FY2011
1H

ChangeShip & Offshore Structure

36.4

24.6

- 11.8

61.2

53.1

- 8.0

2.0

0.5

- 1.5

Rolling Stock

117.7

42.1

- 75.5

63.0

55.3

- 7.6

3.4

1.1

- 2.3

Aerospace

87.9

67.5

- 20.3

83.0

87.4

+ 4.4

- 1.1

3.0

+ 4.1

Gas Turbine & Machinery

65.3

79.7

+ 14.399.2

84.7- 14.5

6.1

3.9

- 2.2

Plant & Infrastructure

77.3

46.8

- 30.538.8

56.2+ 17.4

3.5

6.7

+ 3.2

Motorcycle & Engine

113.2

106.2

- 7.0

113.2

106.2

- 7.0

- 1.1

- 2.3

- 1.2

Precision Machinery

68.0

91.1

+ 23.1

60.9

85.2+ 24.2

8.6

14.5

+ 5.9

Other

47.2

55.1

+ 7.9

51.9

56.4

+ 4.4

0.9

1.8

+ 0.9

-

-

-

-

-

-

- 1.5

- 2.7

- 1.2

613.4

513.4

- 99.9

571.7

584.9

+ 13.2

20.9

26.6

+ 5.7

Eliminations and corporate

Total

Note : “Eliminations and corporate” includes some expenses incurred at Head Office which were not allocated to each industry segment for internal reporting-4-

Ship & Offshore Structure
Main Products： LNG carriers, LPG carriers, VLCCs, Bulk carriers, Submarines, Offshore structures（Billion Yen / In accumulated amount）

Orders Received（Forecast in April 60.0）

67.2

78.9
60.0

36.4
17.0

24.6

1.6

 FY2011.1H ( vs. FY2010.1H )Orders Received: Orders received of a small-sized LNG carrier and 6 bulk
carriers
Net Sales: Decrease in sales of large-scale vessels such as LNG carriers
Operating Income/Loss: Income decreased due to the effect of sales
decrease, the adverse impact of the appreciation of the yen and materials price<Units of Orders Received and Sales of New Building Ships>(u nit)rise
Orders Received

FY2010.1H

1Q

2Q

3Q

FY2010

1Q

2Q

LNG carriers
Small-sized LNG carriers
LPG carriers
VLCCs
Bulk carriers
Submarines
Total（Forecast in April 110.0）

Net Sales
118.4

110.0

93.2
61.2

53.1

28.6

1Q

FY2011
Forecast

27.7

2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast

1

6
1
1

Sales

FY2011 .1H FY2 010.1H

7FY2011.1H

3(3)
1(1)
2(1)

2(1)
2(2)
2(2)

12(8)
1(1)
19(14)

17(12)
2(2)
25(19)

Note: ( ) = Sales units b y p ercentage-of-completion method

 FY2011 Forecast ( vs. Forecast in April )- Orders received and net sales remain unchanged because of no significant
change- Operating income/loss remain unchanged due to cost reduction andmaterials price decline and other factors, despite the adverse impact of theappreciation of the yen<For Reference> Joint Venture in China

Operating Income/Loss
4.9
3.3

2.0
FY2010

1Q

2Q

3Q

- 1.0

0.9

0.5

1Q

2Q

FY2011
Forecast- 4.0（Forecast in April - 4.0）

NACKS was established in December 1995, as a fifty-fifty joint venture between KHI and
China Ocean Shipping(Group) Company (COSCO), one of the world’s largest shipping
company, and its capacity was expanded in 2008. (NACKS is an equity method affiliate) At
NACKS, various types of commercial vessels are built for domestic shipping company suchas COSCO as well as for Japanese and European customers. As a parent company of
NACKS, KHI also supports DACOS, which was established by NACKS and COSCO Groupin July 2007. The first ship was delivered in September 2011 at DACOS.
Under close partnership between KHI and COSCO groups, KHI is working on expansion of
its operations and strengthening its earning power.

-5-Rolling Stock
Main Products : Electric train cars (incl. Shinkansen), Electric and diesel locomotives, Passenger coaches, Platform screen doors,
Gigacell (High-Capacity, Full Sealed Ni-MH Battery)（Billion Yen / In accumulated amount）

Orders Received（Forecast in April 150.0）

187.1
101.5

117.7

150.0

124.1
22.6

1Q

2Q

3Q

FY2010

1Q

42.1

2Q

FY2011
Forecast（Forecast in April 150.0）

Net Sales
131.1

130.0

 FY2011.1H ( vs. FY2010.1H )Orders Received: Decrease in large-scale orders received for overseas
marketNet Sales: Decrease in sales for overseas market
Operating Income/Loss: Income decreased due to sales decrease, the effectof the adverse impact of the appreciation of the yen, and other factors
 FY2011 Forecast ( vs. Forecast in April )- Orders received remains unchanged because of no significant change- Net sales was revised down due to the sales deferrals for overseas market- Operating income was revised down due to the adverse impact of theappreciation of the yen and other factors

95.5
63.0

55.3

26.6
1Q

25.8
2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast

Operating Income/Loss（Forecast in April 7.0）

8.1
5.9

6.0

3.4
1.7
1Q

0
2Q

3Q

FY20101Q

1.1
2Q

FY2011
Forecast<For Reference> Present Status of New Overseas Projects
North America :- Working to win orders mainly for heavy rails and commuter rails- Extension of product lineup such as efSET® and K-Star Express® to meet demand for
Medium- to High-speed rail projects
High-speed railways :- KHI self-developed efSET® (Environmentally Friendly Super Express Trains), a new
high-speed train that will achieve maximum service speed of 350km/h to satisfy demandfor overseas markets, and completed principle designs by the end of March 2010.
- California High-speed Rail: Working with other Japanese companies aiming to win E&M
system including rail cars.
- There are plans in India, Vietnam and other countries.
E&M System Projects in Asian region : Taichung City Railway System - Won the package
contract of 36 cars and E&M system in March 2011 under cooperation with other companies.
KHI as a leader of consortium will play its role to oversee the whole project and system
integration as well as supply the cars and rail yard facilities.

-6-

Aerospace
Main Products : Aircrafts for Japan Ministry of Defense, Component parts for commercial aircrafts (Boeing , Embraer), Missiles（Billion Yen / In accumulated amount）（Forecast in April 260.0）

Orders Received

280.0
206.7
123.7

(unit)

87.9

67.5

36.5
1Q

 FY2011.1H ( vs. FY2010.1H )Orders Received: Decrease in orders received for Japan Ministry of Defense(MOD)
Net Sales: Increase in sales of component parts for Boeing including B777
Operating Income/Loss: Income improved due to sales increase, cost
< Sales units of component parts for commercial aircrafts >reduction and other factors

30.6
2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast

 FY2011 Forecast ( vs. Forecast in April )（Forecast in April 220.0）

Net Sales

220.0

196.8
135.0
87.4

83.0
40.0

34.2
1Q

2Q

3Q

FY2010

1Q

2Q

Operating Income/Loss

FY2011
Forecast（Forecast in April 8.0）

5.0
2.0
1Q

- 1.8

3.0

2Q

- 1.1

3.0
1Q

3Q

FY2010- 0.8

2Q

FY2011
Forecast

FY2010.1H FY2011.1H
B777
32
42
B767
7
13
B787
12
12
Embraer170/175
86
Embraer190/195
42
52- Orders received was revised up due to increase for component parts for
Boeing- Net sales remains unchanged because of no significant change- Operating income was revised down due to the adverse impact of theappreciation of the yen and other factors<For Reference> Present Status of Main Projects
Aircrafts for MOD :The #2 test XC-2 transport aircraft was manufactured at Kawasaki’s Gifu Works anddelivered to MOD on March 29, 2011 at the Works. KHI will continue to work towardcommencement of the mass production.
Component parts for commercial aircrafts :B777 - According to the production rate increase for Boeing B777 program announced byBoeing, KHI’s production rate for the program has increased to 7 units per month from thesecond half of FY2010. During FY2012, the production rate is expected to increase up to 8.3
units per month.
B787 – In September 2011, the first Boeing B787 was delivered to the airline by Boeing andregular flight service with B787 was started from November 1, 2011. KHI has completed the
production system at Kawasaki’s Nagoya Works 1 for ramp-up production.

-7-

Gas Turbine & Machinery
Main Products : Jet engines, Gas turbine co-generation system, Gas turbines & steam turbines for marine & land, Diesel engines,
Marine propulsion system, Aero-dynamic machinery（Billion Yen / In accumulated amount）

Orders Received（Forecast in April 220.0）

230.0
187.5
113.6
33.0
1Q

79.7

65.3

2Q

31.3
3Q

FY2010

1Q

2Q

Net Sales

FY2011
Forecast（Forecast in April 210.0）

210.0

202.6
149.6
99.2
49.9

45.5

 FY2011.1H ( vs. FY2010.1H )Orders Received: Increase in orders received for gas engine power plant
Net Sales: Decrease in sales of gas turbine-driven natural gas compressors
and sales for Japan Ministry of Defense
Operating Income/Loss: Income decreased due to sales decrease, the adverse
impact of the appreciation of the yen, and other factors
 FY2011 Forecast ( vs. Forecast in April ）- Orders received was revised up due to increase for domestic projects- Net sales remains unchanged because of no significant change- Operating income was revised up due to cost reduction and other factors,
despite the adverse impact of the appreciation of the yen

84.7<For Reference>
1Q

2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast

Gas Turbine Division : Major Projects for Commercial Aircraft Jet Engines
AircraftTrent1000
B787

TrentXWB
A350

PW1100G - JM
A320neo

Participation TypeShare

RRSP（※)
Approx. 8.5%

RRSP（※)
Approx. 7%

RRSP（※)
Approx. 6%

Responsible
Components

Intermediate pressurecompressor (IPC) module

Intermediate pressurecompressor (IPC) module

Primary parts of the engine’s fan andlow-pressure compressor

First IPC module shipped to Rolls-Royce inMarch 2011.

Made decision to collaborate in a program fordevelopment and production.

Operating Income/Loss
9.6（Forecast in April 5.0）

9.5

6.1

6.0

4.0

1Q

3.3

2Q

3Q

FY2010

1Q

3.9

2Q

FY2011
Forecast

Present Status（※）

Development was completed and mass
production started in FY2010. To bedelivered in accordance with production
schedule of airplanes.

Risk & Revenue Sharing Partner

Machinery Division : Gas Engines
In September 2011, KHI received an order for a 110MW power plant which consistsof 14 Kawasaki Green Gas Engines with world’s highest power-generating efficiencyof 49%.
-8-

Plant & Infrastructure
Main Products: Industrial plants (cement, chemical and others), Power plants, LNG & LPG tanks, Municipal refuse incineration plants,
Shield machines, Crushing machines（Billion Yen / In accumulated amount）（Forecast in April 120.0）

Orders Received

140.0
105.4

119.9

77.3
46.8

32.0

1Q

19.1
2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast（Forecast in April 130.0）

Net Sales

130.0
89.0
20.4
1Q

38.8

2Q

23.8
3Q

FY2010

1Q

2Q

FY2011
Forecast（Forecast in April 11.0）

14.0
8.2

6.7

4.6
0.9

0.2
1Q

2Q

 FY2011 Forecast ( vs. Forecast in April )- Orders received was revised up due to increase of orders received forboilers for the world’s first Floating LNG facility- Net Sales remains unchanged because of no significant change- Operating income was revised up due to improvement in profitability bysteady progress in some projects

56.2

56.4

Operating Income/Loss

3.5

 FY2011.1H ( vs. FY2010.1H ）Orders Received: Decrease in orders received for domestic customers
Net Sales: Increase in sales of overseas projects
Operating Income/Loss: Income increased due to sales increase, and otherfactors

3Q

FY2010

1Q

2Q

FY2011
Forecast<For Reference> Joint Ventures in China
In 2006, KHI started a joint venture with Anhui Conch Cement Company Ltd.,
China’s largest cement manufacturer. KHI has established three joint ventures forthe time being and set up, in China, an integrated system for waste heat recovery
power generation systems for cement plants and cement producing facilities, and in
May 2011, KHI has decided to construct a new plant for cement producing facilities
at Anhui Conch Kawasaki Equipment Manufacturing Co., Ltd. (CKE).
As well as further intensifying partnership with CONCH, KHI will develop andcontribute to bring new technologies such as Zero Emission Eco Town System(ZEET) that is an integration of cement plant with waste treatment technology andsludge processing technology in order to establish new business model for global
environmental conservation.
-9-

Motorcycle & Engine
Main Products: Motorcycles, All-Terrain Vehicles(ATVs), Utility Vehicles, Personal Watercraft, General-purpose Gasoline Engines（Billion Yen / In accumulated amount）（Forecast in April 260.0）

Net Sales

260.0

234.4
159.2
113.2

106.2

65.1

1Q

59.6

2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast（Forecast in April 5.0）

Operating Income/Loss

2.0
0.7

2Q

3Q

FY2010

1Q

0.3

2Q

1Q

FY2011
Forecast- 1.1

 FY2011.1H ( vs. FY2010.1H )Net Sales: Decrease in sales due to sales decrease in U.S. and European
markets and the adverse impact of the appreciation of the yen, despitesales increase in Asian and other emerging countries
Operating Income/Loss: Loss expanded due to sales decrease, theadverse impact of the appreciation of the yen and other factors
 FY2011 Forecast ( vs. Forecast in April )- Net Sales remains unchanged because sales increase in Asian and otheremerging countries offset sales decrease in U.S. and European markets- Operating income was revised down due to the adverse impact of theappreciation of the yen and other factors, despite the additional
measures to improve profitability including fixed cost reduction

-2.3

- 2.6
- 4.9

<Business Development in Emerging Markets>＜Wholesales by Geografic Area for Consumer Products＞
FY2010.1H
FY2010
Unit Amount Unit Amount
Domestic
8
6.3
14
11.3
Nort h America (incl. Canada) 51 (27)37.6 118 (67)78.5
Europe
34
23.6
67
47.7
Emerging Countries & O the rs
125
28.6
272
61.0
Total
218
96.1
471
198.5

(Thousand s of unit / Billion Yen)FY2011.1H
FY2011 Forecast
Unit Amount Unit Amount
8
6.5
14
12.4
44 (24)28.8 129 (77)
83.6
26
20.7
64
48.4
153
34.9
328
75.5
231
90.8
535
219.9

Note: 1) Sales units and amount include the following products.
Units: Motorcycles, All-Terrain Vehicles(ATVs), Utility Vehicles and Personal Watercraft(Jet Ski)
Amount: The products mentioned above and parts for those products.
2) Figures in the parenthesis ( ) represent motorcycle sales units.

Since KHI started motorcycle business in Philippines in 1974, KHI establishedsubsidiaries in Indonesia, Thailand and Brazil to manufacture and sell
motorcycles. In emerging markets, as demand for motorcycles is expected to
expand in the coming years due to further economic growth and increased
purchasing power, KHI focuses on expansion and reinforcement of business
operations in those markets. In India, KHI established new subsidiary in 2010 toimport and sell motorcycles in order to cultivate its market.

- 10 -

Precision Machinery
Main Products： Hydraulic components (pumps, motors & valves), Hydraulic systems for industrial use, Hydraulic marine machinery, Industrial Robots（Billion Yen / In accumulated amount）（Forecast in April 180.0）

Orders Received

200.0
148.9
106.7

91.1

68.0

43.4

35.0
1Q

2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast（Forecast in April 170.0）

Net Sales

190.0
140.3
99.0
40.4

27.8
2Q

3Q

FY2010

1Q

2Q

FY2011
Forecast（Forecast in April 25.0）

Operating Income/Loss

28.0
22.3
14.6

14.5

8.6

7.1

3.9
1Q

2Q

 FY2011 Forecast ( vs. Forecast in April )- Orders received, net sales and operating income were revised up due toexpansion of production capacity to settle the supply-demand gaps
mainly for hydraulic components in emerging countries

85.2

60.9

1Q

 FY2011.1H ( vs. FY2010.1H )Orders Received : Increase in orders received for hydraulic components forconstruction machinery in emerging countries
Net Sales: Increase in sales of hydraulic components for construction
machinery and industrial robots for manufacturers of semiconductor
production equipments
Operating Income/Loss: Income increased due to sales increase, and otherfactors

3Q

FY2010

1Q

2Q

FY2011
Forecast<Businesses Development in China>
In August 2006, production of hydraulic pumps started at Chinese subsidiary in
Suzhou to meet the increasing demand of hydraulic components for construction
machinery in China. In April 2010, production of hydraulic components started in ajoint venture with a Chinese company in Zhejiang, while a sales subsidiary inShanghai provides the products manufactured at the above manufacturing
companies to customers throughout China.
In order to respond to the increasing demand in China, KHI group as a whole
focuses on upgrading production which includes operation start at a new plant in
Suzhou and expansion of the plant in Zhejiang, as well as expansion of production
capacity at Nishi-Kobe Works.
- 11 -

Financial Condition and Cash Flows【Financial Condition】(Billion Yen)FY2010End of March 2011

End of September 2011

1,354.2

1,309.5

Shareholders’ Equity

289.0

297.3

（Ratio of shareholders’ equity to total assets）(21.3%)(22.7%)

Interest-bearing debt

429.1

427.1

（Net Interest-bearing debt）(381.9)(390.0)Net Debt Equity Ratio

132%

131%

Total Assets

FY2011

Note: Interest-bearing debt includes lease obligations【Cash Flows】（Billion Yen）

FY2010.1H

FY2011.1H

Cash flows from operating activities

48.1

32.5

Cash flows from investing activities- 26.1- 32.6

Free Cash Flows

22.0

- 0.1

Cash flows from financing activities- 20.0- 5.3- 12 -

II. Forecast for FY2011

Consolidated Operating Performance(Billion Yen)FY2010FY2011 Forecast

Changevs. Forecast
in AprilActualin April

Orders Received

1,270.6

1,360.0

1,430.0+ 159.4+ 70.0Net Sales

1,226.9

1,360.0

1,360.0+ 133.1

0Operating Income

42.6

50.0

50.0

+ 7.4

0

Recurring Profit

49.1

52.0

52.0

+ 2.9

0

Net Income

25.9

32.0

32.0

+ 6.1

0

in November vs. FY2010

vs. Forecast in April< Orders Received >Forecast was revised up due to increase in
Aerospace, Gas Turbine & Machinery,
Plant & Infrastructure and Precision
Machinery segments< Net Sale >Net sales remains unchanged because sales
increase in Precision Machinery segment
offsets sales decrease in Rolling Stocksegment with sales deferrals for overseas
marketExchange Rates (actual & assumed)

Yen / US$

86

83

80

Yen / EUR

113

115

110

< Profits >Note : Assumed rates are applied to the outstanding foreign exchange exposure as of the respective disclosure date
(For Reference)

Impact on profit by FX fluctuation of 1 yen(Billion Yen)

US$
EUR

Operating
Income2.3 (2.6)
0.2 (0.3)

Recurring
Profit2.0 (3.1)
0.1 (0.2)* Figures in the parenthesis ( ) represent impact as of July 29, 2011- 13 -

Profits remains unchanged due to theeffects of sales increase in Plant &Infrastructure and Precision Machinery
segments and the measures to improve
profitability, including fixed cost reduction
and improvement in productivity, despite
the adverse impact of the appreciation of
the yenForecast by Segment(Billion Yen)

Orders Received

Net Sales

Operating Income/Loss

FY2010FY2011 Forecast

FY2010FY2011 Forecast

FY2010FY2011 Forecast

Actualin Aprilin November

Actualin Aprilin November

Actualin Aprilin November

Ship & Offshore Structure

78.9

60.0

60.0

118.4

110.0

110.0

- 1.0

- 4.0

- 4.0

Rolling Stock

187.1

150.0

150.0

131.1

150.0

130.0

8.1

7.0

6.0

Aerospace

206.7

260.0

280.0

196.8

220.0

220.0

3.0

8.0

5.0

Gas Turbine & Machinery

187.5

220.0

230.0

202.6

210.0

210.0

9.5

5.0

6.0

Plant & Infrastructure

119.9

120.0

140.0

89.0

130.0

130.0

8.2

11.0

14.0

Motorcycle & Engine

234.4

260.0

260.0

234.4

260.0

260.0

- 4.9

5.0

2.0

Precision Machinery

148.9

180.0

200.0

140.3

170.0

190.0

22.3

25.0

28.0

Others

106.8

110.0

110.0

114.0

110.0

110.0

2.5

2.0

2.0

-

-

-

-

-

-

- 5.3

- 9.0

- 9.0

1,270.6

1,360.0

1,430.0

1,226.9

1,360.0

1,360.0

42.6

50.0

50.0

Eliminations and corporate
Total

Note : “Eliminations and corporate” includes some expenses incurred at Head Office which are not allocated to each industry segment for internal reporting- 14 -

R&D/CAPEX/Number of Employees(Billion Yen / Persons)

FY2010
Actual

FY2011 Forecast
in Aprilin November

Change
+ 1.4

37.0

43.0

44.4

(16.0)-（16.2）

55.3

76.0

88.0

(23.4)-(32.0)

50.3

55.0

51.0

(23.3)-(22.3)

Domestic

24,511

25,00025,0000Overseas

8,195

8,200

8,900

+ 700

32,70633,20033,900+ 700

R&D Expenses
CAPEX(Construction Base)
Depreciation & Amortization

Number of Employees

Note: Figures in parenthesis ( ) represent the results of the first half

- 15 -+ 12.0Remarks

Facilities to increase
production in Precision
Machinery segment- 4.0

Employees at overseas
subsidiaries

Kawasaki,
Working as One for the Good of the Planet

Cautionary Statement
The performance outlook and the forecasts stated in this material were prepared by Kawasaki Heavy Industries, Ltd.
(hereinafter, KHI) based on the circumstances at the release point, and include potential risks and uncertain factorsthat relate to economic conditions, foreign currency exchange rates, tax rules, regulations and other factors.
Accordingly, please note that the actual operating results, financial position, and business deployment of KHI
may sometimes differ considerably from the descriptions in the present projections.