Kawasaki Heavy Industries Ltd. · TSE:7012

Kawasaki Heavy Industries — Kawasaki Heavy Industrial — Q3 FY2024 Earnings Presentation

45 slides from Kawasaki Heavy Industries's earnings presentation, Feb 8, 2025

  1. Slide 1: Financial Results for Third Quarter FY2024

    Financial Results for Third Quarter FY2024 For the Year ending March 31, 2025 0 February 7, 2025

  2. Slide 2: Table of Contents

    0 Table of Contents 1 Consolidated Results for 3 Details by segment Third Quarter FY2024 Summary 3 Aerospace Systems 15 Segment 4 Rolling Stock 19 Statement of Profit and Loss 5 Energy Solution & Marine Engineering 23 （ES&M） Details of Change in business profit 7 Precision Machinery & Robot 27 State

  3. Slide 3: Consolidated Results for Third Quarter FY2024 - Summary

    Consolidated Results for Third Quarter FY2024 1 –Summary- Revenue and profit increased YoY, reaching a record high for Q3 revenue Overall performance is generally in line with the forecast announced in November (billion yen) FY24 Q3 YoY Remark FY23 Q3 FY23 Q3:Business Apr. to Jun. Jul. to Sep. Oct.

  4. Slide 4: Consolidated Results Q3 FY2024 - Segment

    Consolidated Results for Third Quarter FY2024 1 –Segment- Profit in Aerospace Systems increased significantly YoY, due to a reaction to the loss related to PW1100G-JM engines and profitability improvement in Aero Engine business ① Revenue and profit in PS&E grows significantly in Oct-Dec period (See

  5. Slide 5: Statement of Profit and Loss

    Consolidated Results for Third Quarter FY2024 1 –Statement of Profit and Loss- (billion yen) Details FY23 Q3 FY24 Q3 Change % % Revenue 1,229.0 100.0 1,407.3 100.0 + 178.2 ① Cost to sales ratio 1 deteriorated due to a loss Cost of sales 1,038.2 84.5 1,113.4 79.1 + 75.1 of ¥58 billion yen (reduction

  6. Slide 6: Statement of Profit and Loss (continued)

    Consolidated Results for Third Quarter FY2024 1 –Statement of Profit and Loss- (billion yen) Details FY23 Q3 FY24 Q3 Change % % Finance income and Finance costs - 18.6 - 14.5 + 4.0 ④ USD/JPY rate 151.40 Q4/E FY’23 Net Interest expense (incl. dividend income) - 3.8 - 7.7 - 3.9 158.17 Q3/E FY’24 4 Gai

  7. Slide 7: Details of change in business profit

    Consolidated Results for Third Quarter FY2024 1 –Details of change in business profit- Aerospace system and ES&M business led the growth of “change in revenue” Profitability improvement in Aero Engine contributed to “product mix and other factors” FY’23 Q3 FY’24 Q3 Business Profit + ¥78.2 billion ye

  8. Slide 8: Details of change in business profit by segment

    Consolidated Results for Third Quarter FY2024 1 –Details of change in business profit- (billion yen) FY23 Q3 Details of change FY24 Q3 Business Change in Change in Loss Related to the Business Effects of Change share of profit (loss) Change in Profit product mix and of investments SG & A In-Service

  9. Slide 9: Statement of financial position

    Consolidated Results for Third Quarter FY2024 1 –Statement of financial position- (billion yen) End of End of Details Change Mar. 2024 % Dec. 2024 % Cash and cash equivalents 84.1 129.0 1 + 44.8 ① Increased in Aerospace Trade receivables (Incl. contract assets) 770.3 815.0 + 44.6 Systems and Ship &

  10. Slide 10: Statement of financial position (liabilities and equity)

    Consolidated Results for Third Quarter FY2024 1 –Statement of financial position- (billion yen) End of End of Details Change Mar. 2024 % Dec. 2024 % ③ Increase in borrowing from Trade payables 451.9 484.7 + 32.8 the end of the previous fiscal 3 year is normal business Interest-bearing debt 653.9 908

  11. Slide 11: Cash Flows

    Consolidated Results for Third Quarter FY2024 1 –Cash Flows- (billion yen) FY23 Q3 FY24 Q3 Change Details Profit before tax - 17.9 64.4 + 82.3 ①FY23 Q3： Depreciation and amortization 61.0 65.3 + 4.3 Despite progress in debt Increase and decrease in working capital - 100.2 - 160.0 - 59.8 collection i

  12. Slide 12: Cash Flows trend

    Consolidated Results for Third Quarter FY2024 1 –Cash Flows- Operating cash flow in Q3 is on an improving trend, despite being in the red Working capital increased due to rapid recovery of order-based business and increased production in PS&E CF from operating acitivities CF from investing activitie

  13. Slide 13: Forecasts for FY2024 - Summary

    Forecasts for FY2024 2 -Summary- Business profit forecast remains unchanged from previously announced in November Profit before tax and Net profit revised up due to expected improvement in foreign exchange gains and losses by assumed FX rate changes FY2024 (billion yen) FY2023 Forecast Actual Old FC

  14. Slide 14: Forecasts for FY2024 - Segment

    Forecasts for FY2024 2 -Segment- Profit forecast in Aerospace Systems revised down mainly due to the revaluation impact of FX rate related to PW1100G-JM engine Forecast in ES&M revised up to reflect the improvement profitability in multiple projects (billion yen) Orders Received Revenue Business Pro

  15. Slide 15: Aerospace Systems

    Details by Segment 3 -Aerospace Systems- FY2024.Q3（vs. FY2023.Q3） FY2024 forecast（vs. Forecast in August） Orders Increased due to an increase in MOD and Orders Revised up due to an increase in MOD and received commercial aircraft engine compared to the last received commercial aircraft engine, despi

  16. Slide 16: Aerospace Systems results and forecast

    Details by Segment 3 -Aerospace Systems- (billion yen) FY2023 FY2024 FY2023 FY2024 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY23 Chg. Vs. Old FCST Q4 FCST Orders Received 332.5 680.1 + 347.6 692.6 770.0 810.0 + 117.4 + 40.0 129.9 Aerospace 310.5 548.3 + 237.8 556.9 610.0

  17. Slide 17: Aerospace Systems revenue and profit trend

    Details by Segment 3 -Aerospace Systems- Net Sales or Revenue (billion yen) Aerospace Aero Engines 160.6 54.5 129.1 120.3 109.3 110.2 106.3 104.9 99.7 46.5 93.9 93.3 93.5 81.5 36.5 74.6 39.3 21.7 80.2 48.9 70.0 71.5 37.2 106.1 33.6 25.4 63.2 17.9 63.4 26.4 35.1 24.6 88.5 82.6 83.8 13.6 23.3 23.9 70.

  18. Slide 18: Aerospace Systems market overview and efforts

    Details by Segment 3 -Aerospace Systems- Market Overview Specific Efforts ⚫ Commercial business ⚫ Preparation for business expansion – Air passenger demand shifted from recovery – Arranging supply chain and production to growth phase, and demand for both aircraft system for production increase and e

  19. Slide 19: Rolling Stock

    Details by Segment 3 - Rolling Stock - FY2024.Q3（vs. FY2023.Q3） FY2024 forecast（vs. Forecast in August） Orders Expected to remain at the same Orders Revised up due to an increase in received level received sales in the U.S., despite a decrease -¥0.7 Bil. +¥60.0 Bil. in Asia Revenue Increased due to

  20. Slide 20: Rolling Stock results and forecast

    Details by Segment 3 - Rolling Stock - (billion yen) FY2023 FY2024 FY2023 FY2024 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY23 Chg. Vs. Old FCST Q4 FCST Orders Received 41.8 41.0 - 0.7 88.7 160.0 220.0 + 131.3 + 60.0 179.0 Domestic & Asia 38.1 35.5 - 2.5 87.3 140.0 43.5

  21. Slide 21: Rolling Stock revenue and profit trend

    Details by Segment 3 - Rolling Stock - Net Sales or Revenue (billion yen) Domestic & Asia 60.1 North America 55.6 51.6 36.1 43.5 43.8 30.8 43.2 39.5 40.6 23.2 36.8 37.5 32.3 32.3 32.1 33.7 28.4 34.3 29.3 31.7 31.5 26.7 28.7 28.8 10.9 8.1 11.3 26.4 6.0 4.6 8.2 9.9 6.8 7.3 28.6 27.7 10.2 5.4 28.6 28.3

  22. Slide 22: Rolling Stock market overview and efforts

    Details by Segment 3 - Rolling Stock - Market Overview Specific Efforts ⚫ Domestic Market ⚫ Compliance with delivery schedules for – The number of railway passengers has overseas projects recovered to approximately 90% of pre- COVID-19 levels due to the recovery of Dhaka ‣22 trains out of 24(144 car

  23. Slide 23: Energy Solution & Marine Engineering

    Details by Segment 3 - Energy Solution & Marine Engineering - FY2024.Q3（vs. FY2023.Q3） FY2024 forecast（vs. Forecast in August） Orders Increased due to a submarine for Orders Revised up due to an increase in received MOD and LPG/ammonia carriers received domestic municipal waste +¥147.2 Bil. +¥50.0 B

  24. Slide 24: Energy Solution & Marine Engineering results and forecast

    Details by Segment 3 - Energy Solution & Marine Engineering - (billion yen) FY2023 FY2024 FY2023 FY2024 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY23 Chg. Vs. Old FCST Q4 FCST Orders Received 281.2 428.5 + 147.2 401.6 500.0 550.0 + 148.4 + 50.0 121.5 Energy, Plant & 246.

  25. Slide 25: Energy Solution & Marine Engineering trend

    Details by Segment 3 - Energy Solution & Marine Engineering - Net Sales or Revenue (billion yen) Note: Results for the previous fiscal year have been reclassified to the reportable segments after the change. Energy, Plant & Marine Machinery Ship & Offshore Structure 118.8 103.8 102.1 100.9 95.5 23.7

  26. Slide 26: Energy Solution & Marine Engineering market overview and efforts

    Details by Segment 3 - Energy Solution & Marine Engineering - Market Overview Specific Efforts ⚫ Energy system & Plant Engineering Contribution to realizing a recycling-based society Domestic Overseas Development of a recycling system for used ₋ Strong demand for ₋ Strong demand for energy Topic dis

  27. Slide 27: Precision Machinery & Robot

    Details by Segment 3 - Precision Machinery & Robot - FY2024.Q3（vs. FY2023.Q3） FY2024 forecast（vs. Forecast in August） Orders Increased due to an increase in hydraulic Orders Expected to remain at the same level received machinery for Chinese construction received +¥28.2 Bil. machinery market and rob

  28. Slide 28: Precision Machinery & Robot results and forecast

    Details by Segment 3 - Precision Machinery & Robot - (billion yen) FY2023 FY2024 FY2023 FY2024 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY23 Chg. Vs. Old FCST Q4 FCST Orders Received 157.6 185.8 + 28.2 213.3 240.0 240.0 + 26.7 - 54.2 Hydraulic 101.8 108.6 + 6.8 136.1 150

  29. Slide 29: Precision Machinery & Robot trend

    Details by Segment 3 - Precision Machinery & Robot - Net Sales or Revenue (billion yen) Hydraulic Components & Systems 86.6 Robotics 73.1 73.5 31.8 69.2 65.0 60.6 61.2 61.5 59.4 55.2 57.6 29.0 28.5 55.6 56.8 53.6 52.6 53.7 30.8 52.6 27.8 49.3 45.4 22.6 20.7 22.8 23.0 15.1 17.0 19.4 21.2 16.9 54.7 20

  30. Slide 30: Precision Machinery & Robot market overview and efforts

    Details by Segment 3 - Precision Machinery & Robot - Market Overview Specific Efforts ⚫ Measures for the development ⚫ Construction machinery of hydraulic business – Sluggish demand in China shows a recovery Development of new products and trend especially in small models market for construction mac

  31. Slide 31: Powersports & Engine

    Details by Segment 3 - Powersports & Engine - FY2024.Q3（vs. FY2023.Q3） FY2024 forecast（vs. Forecast in August） Revenue Remained at the same level despite a Revenue Revised down in consideration of temporary decrease in four-wheelers logistics risks and the production status +¥12.8 Bil. due to recall

  32. Slide 32: Powersports & Engine results and forecast

    Details by Segment 3 - Powersports & Engine - (billion yen) FY2023 FY2024 FY2023 FY2024 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY23 Chg. Vs. Old FCST Q4 FCST Revenue 404.4 417.2 + 12.8 592.4 660.0 640.0 + 47.6 - 20.0 222.8 Motorcycles for developed contries 135.9 158.6

  33. Slide 33: Powersports & Engine trend

    Details by Segment 3 - Powersports & Engine - Net Sales or Revenue (billion yen) 187.9 177.3 163.9 148.5 143.9 144.7 138.3 139.1 137.2 126.0 123.1 111.1 113.4 108.5 102.7 93.2 80.8 85.7 58.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2020 FY2021 FY2022 FY2023 FY2024 （IFRS） （IFRS） （IF

  34. Slide 34: Powersports & Engine market overview and efforts

    Details by Segment 3 - Powersports & Engine - Market Overview Specific Efforts ⚫ Supplying products ⚫ U.S. (Motorcycles) as much as demanded – While the street model market remained firm, – Continuous introduction of new models the off-road model market softened – Flexible change of production and s

  35. Slide 35: Shareholder Return

    4 Shareholder Return Dividend Policy Dividend for FY2024 The medium- to long-term consolidated dividend payout ratio 30% ⚫ Business profit forecast is unchanged ⚫ Business performance is steady Comprehensively considering the 1 Annual dividend per share is not changed from following points - future

  36. Slide 36: Project Topics: Civil Aircraft Engine MRO Business

    4 Project Topics Civil Aircraft Engine MRO Business Overview Entry into Civil Aircraft Engine Maintenance (MRO※) Business Target engine ⚫ The Civil Aircraft engine business is expanding its scope PW1100G-JM from its traditional focus on development and component Aiming for future expansion into manu

  37. Slide 37: Project Topics: Hydrogen

    4 Project Topics Kawasaki Hydrogen NEWS Click image to play YouTube The future envisioned with hydrogen engine motorcycles Development of the world's first 100% Successfully Completes Test of Airbus, Kansai Airports, Kawasaki Small, Hydrogen-fueled Aircraft Heavy Industries to accelerate hydrogen co

  38. Slide 38: Project Topics: CO-CREATION PARK KAWARUBA

    4 Project Topics CO-CREATION PARK – “KAWARUBA” Grand Open at HANEDA INNOVATION CITY (on November 6th) Q What is “KAWARUBA”? Q How will you utilize “KAWARUBA”? It is a “co-creation hub” where diverse individuals In “KAWARUBA”, we have started collaborating with unite beyond organizational boundaries

  39. Slide 39: Appendix - Details of change in business profit (FY2024 forecast)

    Appendix 4 - Details of change in business profit (FY2024 forecast) - Effects of FX rates Change in share of Change in share of profit(loss) of （between assumed rate profit(loss) of investments and actual rate） Change in investments accounted for using accounted for using Change in equity method pro

  40. Slide 40: Appendix - CAPEX, Depreciation and Amortization, R&D Expenses, Employees

    Appendix 4 - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees - (billion yen, persons) FY2023 FY2024 FY2023 FY2024 Q3 Actual Q3 Actual Change Actual FCST Chg. Vs. FY23 CAPEX 91.7 93.6 + 1.8 133.7 120.0 - 13.7 Depreciation and amortization 61.0 65.7 + 4.7 80.9 92.5 + 11.6 R & D

  41. Slide 41: Appendix - Others: Orders received by quarter

    Appendix 4 - Others - ⚫ Order received by quarter（billion yen) FY2022 FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Aerospace Systems 60.4 65.1 75.1 144.7 118.7 74.4 139.2 360.0 88.2 121.7 470.1 Aerospace 45.9 46.4 48.0 113.4 104.4 98.0 108.0 246.3 54.3 58.4 435.6 Aero Engine 14.4 18.7 27.0 31.3 14

  42. Slide 42: Appendix - Others: Orders and Revenue for Ministry of Defense

    Appendix 4 - Others - ⚫ Orders received and Revenue for Ministry of Defense（billion yen） FY2023 FY2024 FY2023 FY2024 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY23 Chg. Vs. Old FCST Orders Received 284.6 616.4 + 331.8 553.0 651.5 728.0 + 175.0 + 76.5 Aircrafts and others

  43. Slide 43: Appendix - Others: Order Backlog

    Appendix 4 - Others - ⚫ Order Backlog （billion yen) ⚫ Order Backlog in Ship & Offshore (billion yen) FY23 Q3 FY24 Q3 End of Q3 End of Q4 Actual Actual Change 246.1 Aerospace Systems 846.3 1,329.7 + 483.3 211.6 191.6 Rolling Stock 490.0 397.0 - 93.0 179.4 Energy Solution & 150.8 Marine Engineering 68

  44. Slide 44: Appendix - Others: Foreign currency amounts and exchange rates

    Appendix 4 - Others - ⚫ Amount of foreign currency ⚫ Weighted-average Exchange Rates (EUR / JPY) that affects business profit and loss ※1 (billion USD / EUR) FY2022 actual 141.38 FY2023 FY2024 FY2023 actual 157.09 Q3Actual Q3Actual Q4 FCST FY2024 Q3 actual 164.02 Aerospace Systems 0.35 ※2 0.50 - 0.1

  45. Slide 45: © Kawasaki Heavy Industries, Ltd. All Rights Reserved

    © Kawasaki Heavy Industries, Ltd. All Rights Reserved

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