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: TSE (Prime Market), and NSE (Premier Market)
Stock code: 7012
URL: https://global.kawasaki.com/
Representative: Yasuhiko Hashimoto, President and Chief Executive Officer
Contact: Takashi Torii, Executive Officer, Group Manager, Corporate Communication
Group Department
Tel: +81 3-3435-2130
Scheduled dates:
Ordinary general meeting of shareholders: June 26, 2024
Submission of financial statements: June 26, 2024
Commencement of dividend payments: June 27, 2024
Supplementary materials to financial results: Available
Conducted (for institutional investors, analysts and the
Financial Results presentation:
press)

(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 Profit
Millions of % Millions of % Millions of % Millions of %
yen yen yen yen
Year ended March 31,
1,849,287 7.2 46,201 (43.9) 31,980 (54.5) 27,310 (50.6)
2024
Year ended March 31,
1,725,609 15.0 82,355 171.2 70,349 154.2 55,290 272.7
2023

Profit attributable to Total comprehensive Basic earnings Diluted earnings

owners of parent income per share per share
Millions of % Millions of % yen yen
yen yen
Year ended March 31,
25,377 (52.1) 73,745 (9.9) 151.51 -
2024
Year ended March 31,
53,029 319.6 81,833 62.9 316.63 -
2023

Return on equity
Ratio of profit before Ratio of business
attributable to owners
tax to total assets profit to revenue
of parent
% % %
Year ended March 31,
4.2 1.2 2.5
2024
Year ended March 31,
9.8 3.0 4.8
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) Financial Condition

Ratio of equity Equity

Equity
attributable to attributable to
Total assets Total equity attributable to
owners of parent owners of parent
owners of parent
to total assets per share
Millions of yen Millions of yen Millions of yen % yen
As of March 31,
2,680,176 654,549 634,090 23.7 3,785.57
2024
As of March 31,
2,457,725 596,872 576,201 23.4 3,440.39
2023

(3) Cash Flow Position

(Millions of yen)
Cash and cash
Cash flows from Cash flows from Cash flows from
equivalents at end
operating activities investing activities financing activities
of period
Year ended March 31,
31,662 (89,814) 12,911 84,153
2024
Year ended March 31,
23,617 (77,457) 85,305 138,420
2023

2. Dividends

Dividend per share Ratio of

dividends to
Total dividends equity
Payout ratio
Record date or term paid attributable to
1Q 2Q 3Q Year-end Full year (consolidated)
(annual) owners of
parent
(consolidated)
Millions of
yen yen yen yen yen % %
yen
Year ended March 31,
- 30.00 - 60.00 90.00 15,109 28.4 2.8
2023
Year ended March 31,
- 20.00 - 30.00 50.00 8,393 33.0 1.4
2024
Year ending March 31,
- 70.00 - 70.00 140.00 30.1
2025 (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.

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2025
(April 1, 2024 – March 31, 2025)
(Percentage figures indicate change compared with the previous fiscal year)
Profit attributable
Basic earnings
Revenue Business profit Profit before tax to owners of
per share
parent
Millions of % Millions of % Millions of % Millions of % yen
yen yen yen yen
Full year 2,250,000 21.7 130,000 181.4 110,000 244.0 78,000 207.4 465.69

2
Notes
1. 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 sales Operating profit Ordinary profit Profit
Millions of % Millions of % Millions of % Millions of %
yen yen yen yen
Year ended March 31,
2024 837,834 5.9 (38,370) - (10,984) - (16,137) -
Year ended March 31,
2023 791,099 (11.3) (1,542) - 2,970 (69.0) 11,998 (43.6)

Earnings per share

Earnings per share
– diluted
yen yen
Year ended March 31,
2024 (96.34) -
Year ended March 31,
2023 71.63 -

(2) Financial Condition

Total assets Net assets Equity ratio Net assets per share

Millions of yen Millions of yen % yen

As of March 31, 2024 1,623,931 242,830 15.0 1,449.71
As of March 31, 2023 1,522,841 272,022 17.9 1,624.19
For reference: Shareholders’ equity As of March 31, 2024 ¥242,830 million
As of March 31, 2023 ¥272,022 million

3
* 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 performance
and other matters. Such statements are based on information available at the time of their preparation, and
do not mean that the Company promises to achieve these figures. Actual results may differ from those
expressed 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 of
operating 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 the
presentation 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 21
March 31, 2025

5
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 in
prices, and the economy will continue to recover moderately due to increasing capital investment and
inbound demand. However, we need to keep a close watch on the impact on the economy caused by a
rise in interest rates resulting from the policy changes made by the Bank of Japan, and subsequent
exchange 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 Stock
segment and the Aerospace Systems segment. Business profit decreased year on year mainly due to
deterioration 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 to
owners of parent decreased by ¥27.6 billion year on year to ¥25.3 billion. Ratio of business profit to
revenue 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 × (1-
effective tax rate)) ÷ invested capital (average of net interest-
bearing debt at the beginning and end of the fiscal year + average
of 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 by
segment below.

Segment Information
Segment revenue, business profit (loss), and orders received (billions of yen)
Years ended March 31 Orders received

2023(A) 2024(B) Change (B – A) Years ended March 31

Business Business Business 2023 2024 Change
Revenue profit Revenue profit Revenue profit
(loss) (loss) (loss) (A) (B) (B – A)

Aerospace
Systems 348.8 14.8 396.1 (15.0) 47.3 (29.8) 345.5 692.6 347.0

Rolling Stock 131.9 1.3 195.9 3.7 64.0 2.3 313.2 88.7 (224.4)

Energy Solution
& Marine
Engineering 314.5 3.9 353.2 31.9 38.6 28.0 439.0 401.6 (37.3)

Precision
Machinery &
Robot 252.6 8.7 227.9 (1.9) (24.7) (10.7) 262.0 213.3 (48.6)

Powersports &
Engine 591.1 71.5 592.4 48.0 1.2 (23.4) 591.1 592.4 1.2

Other 86.3 (1.8) 83.5 1.1 (2.8) 2.9 86.4 94.5 8.1

Adjustments - (16.2) - (21.7) - (5.4) - - -

Total 1,725.6 82.3 1,849.2 46.2 123.6 (36.1) 2,037.4 2,083.4 45.9
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 mainly
on 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, demand
for 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 Japan
and component parts of airframes for commercial aircraft.
Consolidated revenue increased by ¥47.3 billion year on year to ¥396.1 billion mainly due to
increases 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 of
jet engines for commercial aircraft.
Business loss came to ¥15.0 billion, deteriorating ¥29.8 billion year on year, mainly due to the lump-
sum 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 Stock
Regarding 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 the
medium and long term, however, relatively stable growth is expected around the world due to
development 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 project
such 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 an
increase 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 in
profit 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, including
hydrogen products of the Company’s strength. Also, demand for distributed power sources in Japan
and 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 the
impact 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 the
ship & 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 share
of profit of investments accounted for using equity method in the ship & offshore structure field and
an 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 Chinese
construction machinery market and industrial robots.
Consolidated revenue decreased by ¥24.7 billion year on year to ¥227.9 billion mainly due to the
general 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 impact
of lower capacity utilization as well as a decrease in the revenue.

Powersports & Engine

Regarding the business environment surrounding the Powersports & Engine segment, although
demand 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 convergence
of 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 in
general.
Amid such an operating environment, consolidated revenue of ¥592.4 billion was on par with the
previous year's result, mainly due to decreases in motorcycles for China and Southeast Asia and
general-purpose engines, despite increases in four-wheeled vehicles for North America and
motorcycles for Europe.
Business profit decreased by ¥23.4 billion year on year to ¥48.0 billion mainly due to an increase
in 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 is
making 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 unmanned
transport helicopters, as well as the promotion of hydrogen business and electrification to realize a
carbon 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 an
increase 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 the
recording of profit attributable to owners of parent as well as an increase in exchange differences on
translation 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 the
previous 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 other
current 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 the
previous 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 production
of 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 PW1100G-
JM implemented in the previous fiscal year. Furthermore, the Company expects profit attributable to
owners 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, and
orders 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, and
includes 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 to
a variety of important factors stemming from changes in the external environment and/or the
Company’s internal environment. Important factors that impact actual operating performance include,
but are not limited to, the economic situation surrounding the Company’s scope of business, foreign
exchange rates, in particular the yen/dollar exchange rate, tax codes and other regulatory system-
related 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 the
group 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
Assets
Current assets
Cash and cash equivalents 138,420 84,153
Trade and other receivables 470,398 681,030
Contract assets 159,422 136,706
Inventories 690,431 710,207
Income taxes receivable 551 2,158
Other financial assets 10,741 11,024
Other current assets 100,385 101,644
Total current assets 1,570,350 1,726,925
Non-current assets
Property, plant and equipment 451,010 496,331
Intangible assets 66,248 69,617
Right-of-use assets 68,422 64,824
Investments accounted for using equity method 77,440 90,954
Other financial assets 70,224 80,762
Deferred tax assets 110,264 117,452
Other non-current assets 43,763 33,307
Total non-current assets 887,374 953,250
Total assets 2,457,725 2,680,176

Liabilities and equity

Liabilities
Current liabilities
Trade and other payables 452,250 521,734
Bonds, borrowings and other financial liabilities 340,176 453,694
Income taxes payable 18,071 7,928
Contract liabilities 256,247 265,468
Provisions 22,897 34,242
Refund liabilities 10,258 72,518
Other current liabilities 208,760 185,902
Total current liabilities 1,308,661 1,541,489
Non-current liabilities
Bonds, borrowings and other financial liabilities 445,082 391,539
Retirement benefit liability 91,552 74,604
Provisions 1,942 957
Deferred tax liabilities 833 707
Other non-current liabilities 12,779 16,327
Total non-current liabilities 552,190 484,137
Total liabilities 1,860,852 2,025,626

Equity
Equity attributable to owners of parent
Share capital 104,484 104,484
Capital surplus 55,716 56,455
Retained earnings 380,255 405,156
Treasury shares (1,107) (1,060)
Other components of equity 36,852 69,054
Total equity attributable to owners of parent 576,201 634,090
Non-controlling interests 20,670 20,459
Total equity 596,872 654,549
Total liabilities and equity 2,457,725 2,680,176

13
(2) Consolidated Statement of Profit and Loss and
Consolidated Statement of Comprehensive Income

Consolidated Statement of Profit and Loss

Millions of yen
Year ended Year ended
March 31, 2023 March 31, 2024
Revenue 1,725,609 1,849,287
Cost of sales 1,391,787 1,537,050
Gross profit 333,822 312,237
Selling, general and administrative expenses 252,311 276,044
Share of profit of investments accounted for using equity method 3,314 11,358
Other income 4,850 5,704
Other expenses 7,320 7,053
Business profit 82,355 46,201
Finance income 2,291 3,040
Finance costs 14,297 17,261
Profit before tax 70,349 31,980
Income tax expense 15,058 4,670
Profit 55,290 27,310
Profit attributable to:
Owners of parent 53,029 25,377
Non-controlling interests 2,261 1,932

Earnings per share

Basic earnings per share 316.63 151.51

Consolidated Statement of Comprehensive Income

Millions of yen
Year ended Year ended
March 31, 2023 March 31, 2024
Profit 55,290 27,310
Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through other
(363) 4,214
comprehensive income
Remeasurements of defined benefit plans 14,353 15,017
Share of other comprehensive income of investments accounted
0 1
for using equity method
Total of items that will not be reclassified to profit or loss 13,989 19,233
Items that may be reclassified to profit or loss
Cash flow hedges 1,932 103
Exchange differences on translation of foreign operations 10,112 23,302
Share of other comprehensive income of investments accounted
508 3,795
for using equity method
Total of items that may be reclassified to profit or loss 12,553 27,202
Total other comprehensive income 26,542 46,435
Comprehensive income 81,833 73,745

Comprehensive income attributable to:

Owners of parent 78,785 71,009
Non-controlling interests 3,048 2,736

14
 (3) Consolidated Statement of Changes in Equity

Millions of yen
Equity attributable to owners of parent
Other components of equity
Financial assets
Retained Remeasurements
measured at fair
Share capital Capital surplus earnings Treasury shares value through
of defined other
benefit plans comprehensive
income
Balance as of April 1, 2022 104,484 55,525 320,671 (1,129) - 4,435
Profit 53,029
Other comprehensive income 14,235 (370)
Comprehensive income 53,029 14,235 (370)
Purchase of treasury shares (4)
Disposal of treasury shares (0) 26
Transfer of loss on disposal of 0 (0)
treasury shares
Dividends (8,394)
Transfer to retained earnings 14,191 (14,235) 43
Change in scope of
consolidation
Loss of control of subsidiaries
Change in ownership interest of
parent due to transactions with 190
non-controlling interests
Transfer to non-financial
assets
Other 756
Total transactions with owners 190 6,554 22 (14,235) 43
Balance as of March 31, 2023 104,484 55,716 380,255 (1,107) - 4,109

Equity attributable to owners of parent

Other components of equity

Exchange Total equity Non-controlling

differences on attributable to interests Total
Cash flow translation of Total owners of
hedges foreign parent
operations

Balance as of April 1, 2022 (284) 21,780 25,931 505,484 19,407 524,891

Profit 53,029 2,261 55,290
Other comprehensive income 1,603 10,286 25,755 25,755 787 26,542
Comprehensive income 1,603 10,286 25,755 78,785 3,048 81,833
Purchase of treasury shares (4) (4)
Disposal of treasury shares 26 26
Transfer of loss on disposal of - -
treasury shares
Dividends (8,394) (964) (9,358)
Transfer to retained earnings (14,191) - -
Change in scope of 366 366
consolidation
Loss of control of subsidiaries (2,079) (2,079)
Change in ownership interest of
parent due to transactions with 190 891 1,082
non-controlling interests
Transfer to non-financial (643) (643) (643) (643)
assets
Other 756 756
Total transactions with owners (643) (14,834) (8,067) (1,785) (9,852)
Balance as of March 31, 2023 676 32,066 36,852 576,201 20,670 596,872

15
 Millions of yen
Equity attributable to owners of parent
Other components of equity
Financial assets
Retained Remeasurements
measured at fair
Share capital Capital surplus earnings Treasury shares value through
of defined other
benefit plans comprehensive
income
Balance as of April 1, 2023 104,484 55,716 380,255 (1,107) - 4,109
Profit 25,377
Other comprehensive income 15,075 4,167
Comprehensive income 25,377 15,075 4,167
Purchase of treasury shares (7)
Disposal of treasury shares 0 54
Transfer of loss on disposal of
treasury shares
Dividends (13,430)
Transfer to retained earnings 12,945 (15,075) 2,130
Change in scope of 8
consolidation
Loss of control of subsidiaries
Change in ownership interest of
parent due to transactions with 739
non-controlling interests
Transfer to non-financial
assets
Other
Total transactions with owners 739 (477) 46 (15,075) 2,130
Balance as of March 31, 2024 104,484 56,455 405,156 (1,060) - 10,407

Equity attributable to owners of parent

Other components of equity

Exchange Total equity Non-controlling

differences on attributable to interests Total
Cash flow translation of Total owners of
hedges foreign parent
operations

Balance as of April 1, 2023 676 32,066 36,852 576,201 20,670 596,872

Profit 25,377 1,932 27,310
Other comprehensive income 146 26,241 45,631 45,631 804 46,435
Comprehensive income 146 26,241 45,631 71,009 2,736 73,745
Purchase of treasury shares (7) (7)
Disposal of treasury shares 54 54
Transfer of loss on disposal of -
treasury shares
Dividends (13,430) (1,022) (14,452)
Transfer to retained earnings (12,945) - -
Change in scope of (17) (17) (9) (9)
consolidation
Loss of control of subsidiaries -
Change in ownership interest of
parent due to transactions with 739 (1,926) (1,186)
non-controlling interests
Transfer to non-financial (467) (467) (467) (467)
assets
Other -
Total transactions with owners (467) (17) (13,429) (13,120) (2,948) (16,068)
Balance as of March 31, 2024 355 58,291 69,054 634,090 20,459 654,549

16
 (4) Consolidated Statement of Cash Flow
Millions of yen
Year ended Year ended
March 31, 2023 March 31, 2024
Cash flows from operating activities
Profit 55,290 27,310
Depreciation and amortization 77,374 80,982
Impairment losses 4,606 1,007
Finance income and finance costs 7,312 11,590
Share of loss (profit) of investments accounted for using equity method (3,314) (11,358)
Loss (gain) on sale of fixed assets 1,042 2,050
Income tax expense 15,058 4,670
Increase (decrease) in retirement benefit liability 1,281 (196)
Decrease (increase) in trade and other receivables (59,334) (186,486)
Decrease (increase) in contract assets (50,291) 22,725
Decrease (increase) in inventories (64,217) 9,903
Increase (decrease) in trade and other payables 42,213 43,585
Decrease (increase) in advance payment (28,508) 8,632
Increase (decrease) in contract liabilities (3,730) 1,057
Increase (decrease) in refund liability 1,648 61,004
Increase (decrease) in provisions (4,028) 10,084
Decrease (increase) in other current assets (3,168) (6,879)
Increase (decrease) in other current liabilities 43,231 (19,070)
Other 11,510 1,685
Subtotal 43,975 62,298
Interest received 3,328 8,504
Dividends received 332 364
Interest paid (5,005) (8,110)
Income taxes paid (19,013) (31,393)
Net cash provided by (used in) operating activities 23,617 31,662
Cash flows from investing activities
Purchase of property, plant and equipment (58,943) (80,063)
Proceeds from sale of property, plant and equipment 2,180 2,669
Purchase of intangible assets (11,001) (16,480)
Proceeds from sale of intangible assets 29 80
Payments for equity method investment and purchase of other financial
(6,702) (949)
assets
Proceeds from equity method investment and sale of other financial
160 1,124
assets
Payments for acquisition of subsidiaries (648) (20)
Decrease due to loss of control over subsidiaries (3,224) (92)
Other 692 3,918
Net cash provided by (used in) investing activities (77,457) (89,814)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings 36,664 80,229
Repayments of lease liabilities (14,545) (16,526)
Proceeds from long-term borrowings 18,500 31,582
Repayments of long-term borrowings (21,987) (23,041)
Proceeds from issuance of bonds 9,000 10,000
Redemption of bonds (20,000) (40,000)
Dividends paid (8,383) (13,415)
Proceeds from factoring agreements 130,662 103,482
Repayment of liabilities under factoring agreements (37,861) (105,343)
Dividends paid to non-controlling interests (964) (1,022)
Payments for acquisition of subsidiary shares
(11) (1,563)
not resulting in change in scope of consolidation
Other (5,766) (11,470)
Net cash provided by (used in) financing activities 85,305 12,911
Effect of exchange rate changes on cash and cash equivalents (1,556) (9,027)
Net increase (decrease) in cash and cash equivalents 29,909 (54,267)
Cash and cash equivalents at beginning of period 108,511 138,420
Cash and cash equivalents at end of period 138,420 84,153

17
 (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)
Millions of yen
Energy
Precision Eliminations
Aerospace Rolling Solution & Machinery & Powersports Other Total and Consolidated
Systems Stock Marine & Engine total
Engineering Robot corporate *2
Revenue from
348,880 131,935 314,552 252,697 591,151 86,392 1,725,609 - 1,725,609
external customers
Intersegment
revenue and 10,254 14 21,303 19,315 1,033 23,270 75,191 (75,191) -
transfers*1
Total revenue 359,134 131,949 335,856 272,013 592,184 109,662 1,800,801 (75,191) 1,725,609
Business profit
14,877 1,372 3,905 8,766 71,533 (1,845) 98,611 (16,256) 82,355
(loss) *3
Finance income 2,291
Finance costs (14,297)
Profit before tax 70,349
Other items
Depreciation and
29,499 1,913 6,231 11,271 17,408 1,413 67,738 9,636 77,374
amortization
Impairment loss 1,649 - 554 - - 2,402 4,606 - 4,606
Share of profit
(loss) of
investments
- 8 6,016 (2,761) (40) 104 3,328 (14) 3,314
accounted for
using equity
method
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 reportable
segments.
3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses,
share of profit and loss of investments accounted for using equity method, other income, and other expenses
from revenue.

18
 Year ended March 31, 2024 (April 1, 2023 – March 31, 2024)
Millions of yen
Energy Precision Eliminations
Aerospace Rolling Solution & Powersports Consolidated
Systems Stock Marine Machinery & & Engine Other Total and total
Robot corporate *2
Engineering
Revenue from
396,188 195,940 353,248 227,935 592,421 83,552 1,849,287 - 1,849,287
external customers
Intersegment
revenue and 12,099 16 26,487 17,938 1,173 25,513 83,228 (83,228) -
transfers*1
Total revenue 408,288 195,956 379,736 245,873 593,594 109,066 1,932,515 (83,228) 1,849,287
Business profit
(15,004) 3,752 31,911 (1,947) 48,071 1,140 67,924 (21,723) 46,201
(loss) *3
Finance income 3,040
Finance costs (17,261)
Profit before tax 31,980
Other items
Depreciation and
30,899 2,124 6,317 10,808 19,780 1,449 71,379 9,602 80,982
amortization
Impairment loss - - 567 - 440 - 1,007 - 1,007
Share of profit
(loss) of
investments
- 2 13,762 (2,531) - 136 11,370 (12) 11,358
accounted for
using equity
method
Notes: 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 reportable
segments.
3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses,
share of profit and loss of investments accounted for using equity method, other income, and other expenses
from revenue.

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) 53,029 25,377
Average number of common shares (Thousands of shares) 167,477 167,491
Basic earnings per share (yen) 316.63 151.51
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 end
of 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 in-
service issues, so the Company is currently working hard with IAE to remedy this situation. As a
member 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 Airworthiness
Directives 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
Forecast for the year Year ended March 31,
ending March 31, 2025 2024 (fiscal 2023)
Change (A – B)
(fiscal 2024) (Actual)
Reportable segment (A) (B)
Business Business Business
Revenue profit Revenue profit Revenue profit
(loss) (loss) (loss)
Aerospace Systems 580.0 45.0 396.1 (15.0) 183.8 59.9
Rolling Stock 210.0 7.0 195.9 3.7 14.1 3.2
Energy Solution & Marine
410.0 30.0 353.2 31.9 56.8 (2.0)
Engineering
Precision Machinery & Robot 230.0 7.0 227.9 (1.9) 2.1 8.9
Powersports & Engine 720.0 68.0 592.4 48.0 127.6 20.0
Other 100.0 5.0 83.5 1.1 16.4 3.8
Adjustments (32.0) (21.7) (10.2)
Total 2,250.0 130.0 1,849.2 46.2 400.8 83.8

(ii) Orders received

Billions of yen

Forecast for the year Year ended March 31,

ending March 31, 2025 2024 (fiscal 2023)
Reportable segment Change (A – B)
(fiscal 2024) (Actual)
(A) (B)

Aerospace Systems 750.0 692.6 57.4

Rolling Stock 160.0 88.7 71.2
Energy Solution & Marine
390.0 401.6 (11.7)
Engineering
Precision Machinery & Robot 240.0 213.3 26.6
Powersports & Engine 720.0 592.4 127.6
Other 100.0 94.5 5.4
Total 2,360.0 2,083.4 276.5
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 mainly
on estimated demand.

21