Kawasaki Heavy Industries Ltd. · TSE:7012
Kawasaki Heavy Industries — Kawasaki Heavy Industrial — FY2024 Earnings Presentation
56 slides from Kawasaki Heavy Industries's earnings presentation, May 9, 2025
Slide 1: Financial Results for FY2024
Financial Results for FY2024 For the Year ended March 31, 2025 0 May 9, 2025
Slide 2: Financial Results and Performance Forecast Highlights
0 Financial Results and Performance Forecast Highlights Consolidated Results for FY2024 Business profit rose to a record high of 143.1 billion yen, exceeding the February forecast of 130.0 billion yen Forecasts for FY2025 Expect to achieve a new record business profit of 145.0 billion yen, surpassin
Slide 3: Table of Contents
0 Table of Contents 1 Consolidated Results for FY2024 3 Details by segment Summary 5 Aerospace Systems 21 Segment 6 Rolling Stock 26 Statement of Profit and Loss 7 Energy Solution & Marine Engineering 29 （ES&M） Details of Change in business profit 9 Precision Machinery & Robot 33 Statement of financ
Slide 4: Consolidated Results for FY2024
1 Consolidated Results for FY2024 (for the year ended March 31, 2025) © Kawasaki Heavy Industries, Ltd. All Rights Reserved 4
Slide 5: Consolidated Results for FY2024 - Summary
Consolidated Results for FY2024 1 –Summary- Revenue and business profit increased YoY, reaching record highs for orders received, revenue, and business profit Business profits in Aerospace systems and ES&M was higher than the February forecast (Billion Yen) FY2024 Change FY2023 Forecast Apr. to Jun.
Slide 6: Consolidated Results for FY2024 - Segment
Consolidated Results for FY2024 1 –Segment- Business profit in Aerospace Systems increased significantly YoY, due to a reaction to the ① loss related to PW1100G-JM engines and profitability improvement in Aero Engine business Business profit in ES&M increased due to higher revenues and profitability
Slide 7: Statement of Profit and Loss
Consolidated Results for FY2024 1 –Statement of Profit and Loss- (billion yen) Details FY2023 FY2024 Change % % Revenue 1,849.2 100.0 2,129.3 100.0 + 280.0 ① Cost to sales ratio 1 deteriorated due to a loss Cost of sales 1,537.0 83.1 1,697.7 79.7 + 160.7 of 58 billion yen (reduction in revenue) Gros
Slide 8: Statement of Profit and Loss
Consolidated Results for FY2024 1 –Statement of Profit and Loss- (billion yen) Details FY2023 FY2024 Change % % Finance income and Finance costs - 14.2 - 35.6 - 21.3 ④ USD/JPY rate 151.40 Q4/E FY23 Net Interest expense (incl. dividend income) - 5.4 - 12.0 - 6.5 149.53 Q4/E FY24 4 Gain and loss on fo
Slide 9: Details of change in business profit
Consolidated Results for FY2024 1 –Details of change in business profit- Aerospace Systems and ES&M contributed to the “change in revenue” Preventing profitability decline by appropriate price shifting to offset increasing costs FY23 FY24 Business Profit + 96.9 billion yen Business Profit Change in
Slide 10: Details of change in business profit
Consolidated Results for FY2024 1 –Details of change in business profit- (billion yen) FY2023 Details of change FY2024 Business Change in Loss Related to the Business Effects of Change Change in share of profit (loss) Change in Profit product mix and of investments SG & A In-Service Issues Total Pro
Slide 11: Statement of financial position
Consolidated Results for FY2024 1 –Statement of financial position- (billion yen) End of End of Details Change Mar. 2024 % Mar. 2025 % Cash and cash equivalents 84.1 132.7 1 + 48.6 ① Increased in PS&E and Trade receivables (Incl. contract assets) 770.3 888.8 + 118.4 Aerospace business 2 Inventories
Slide 12: Statement of financial position
Consolidated Results for FY2024 1 –Statement of financial position- (billion yen) End of End of Change Mar. 2024 % Mar. 2025 % Details 3 Trade payables 451.9 512.1 + 60.1 Interest-bearing debt 653.9 692.5 + 38.6 ③ Increased in Aerospace Systems and Rolling Stock, 4 etc. Contract liability (Advances
Slide 13: Cash Flows
Consolidated Results for FY2024 1 –Cash Flows- (billion yen) FY2023 FY2024 Change Details Profit before tax 31.9 107.5 + 75.5 Depreciation and amortization 80.9 93.4 + 12.4 ①FY23： Despite an increase in Increase and decrease in working capital - 83.0 - 105.2 - 22.1 trade receivables in Trade receiva
Slide 14: Cash Flows
Consolidated Results for FY2024 1 –Cash Flows- Free CF in FY2024 turned positive for the first time in 3 years Despite the sharp rise in working capital in the past 3 years, it is gradually enhancing its contribution to cash CF from operating activities CF from investing activities Working capital※
Slide 15: Forecasts for FY2025
2 Forecasts for FY2025 (for the year ended March 31, 2026) © Kawasaki Heavy Industries, Ltd. All Rights Reserved 15
Slide 16: Forecasts for FY2025 - Summary
Forecasts for FY2025 2 -Summary- Expect a new record in business profit, despite setting the FX rate assumption to a stronger yen compared to FY2024 Implement business operations in line with the scenario of achieving a business profit margin of over 10% by FY2030 (Billion Yen) FY25 Details of chang
Slide 17: Forecasts for FY2025 - Segment
Forecasts for FY2025 2 -Segment- In Aerospace Systems, business profit is expected to decrease due to factors such as the 1 yen's appreciation, despite revenue is expected to increase significantly In PS&E, business profit will remain flat due to the uncertain market environment 2 and the assumption
Slide 18: Impact of U.S. Tariff Policy by Business
Forecasts for FY2025 2 -Impact of U.S. Tariff Policy by Business- Impacts of U.S. tariff policy on business performance is estimated to be minimal except for PS&E Effects will be reduced by price shifting and other measures Negative impact of U.S. tariff policy on earnings （Assuming the current U.S.
Slide 19: Intentionally blank slide
Intentionally blank slide © Kawasaki Heavy Industries, Ltd. All Rights Reserved 19
Slide 20: Details by segment
3 Details by segment © Kawasaki Heavy Industries, Ltd. All Rights Reserved 20
Slide 21: Aerospace Systems
Details by Segment 3 -Aerospace Systems- FY2024（vs. FY2023） FY2025 forecast（vs. FY2024） Increased due to an increase in MOD※ business Decrease mainly due to a decrease in Orders Orders and commercial aircraft engines compared to MOD(mainly the bulk order of 17 CH-47 helicopters received received the
Slide 22: Aerospace Systems
Details by Segment 3 -Aerospace Systems- (Billion Yen) FY2023 FY2024 FY2025 Actual FCST in Feb. Actual Chg. Vs. FY23 Chg. Vs. FCST Forecast Chg. Vs. FY24 Orders Received 692.6 810.0 882.8 + 190.2 + 72.8 640.0 - 242.8 Aerospace 556.9 640.0 699.5 + 142.5 + 59.5 455.0 - 244.5 Aero Engine 135.6 170.0 18
Slide 23: Aerospace Systems
Details by Segment 3 -Aerospace Systems- Revenue(billion yen) Aerospace Aero Engines 213.3 160.6 51.1 129.1 120.3 162.1 110.2 106.3 54.5 104.9 93.3 93.5 81.5 21.7 80.2 46.5 36.5 70.0 71.5 48.9 63.2 17.9 63.4 37.2 106.1 33.6 24.6 35.1 13.6 88.5 23.3 14.2 20.3 17.9 82.6 83.8 75.3 75.3 69.1 71.3 56.4 5
Slide 24: Aerospace Systems
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
Slide 25: Rolling Stock
Details by Segment 3 - Rolling Stock - FY2024（vs. FY2023） FY2025 forecast（vs. FY2024） Increased due to the U.S. (435 additional R211 Decrease mainly due to a decrease in Orders Orders subway cars for NYCTA) despite the decrease in the U.S. ( the order of 435 additional R211 received received Japan a
Slide 26: Rolling Stock
Details by Segment 3 - Rolling Stock - (Billion Yen) FY2023 FY2024 FY2025 Actual FCST in Feb. Actual Chg. Vs. FY23 Chg. Vs. FCST Forecast Chg. Vs. FY24 Orders Received 88.7 220.0 251.5 + 162.7 + 31.5 110.0 - 141.5 Domestic & Asia 87.3 43.5 52.3 - 35.0 + 8.8 103.0 + 50.7 North America 1.4 176.5 199.2
Slide 27: Rolling Stock
Details by Segment 3 - Rolling Stock - Revenue(billion yen) Domestic & Asia 79.5 North America 57.5 60.1 55.6 51.6 36.1 43.8 43.5 43.2 30.8 39.5 40.6 37.5 23.2 31.5 32.1 33.7 28.7 28.8 28.4 34.3 29.3 26.4 10.9 26.7 11.3 9.9 5.4 7.3 8.2 10.2 8.0 26.1 28.6 28.3 23.3 24.2 23.9 23.8 23.9 24.8 22.0 18.5
Slide 28: Rolling Stock
Details by Segment 3 - Rolling Stock - Market Overview Specific Efforts ⚫ Domestic Market ⚫ Compliance with delivery schedules for – Resumption of investment in rolling stock due overseas projects to recovery of inbound ⚫ Overseas Market Dhaka ‣Full delivery (All 144 cars of 24 trains was delivered
Slide 29: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - FY2024（vs. FY2023） FY2025 forecast（vs. FY2024） Orders Increased due to a submarine for Orders Decrease due to the submarine for received MOD and LPG/ammonia carriers received MOD and LPG/ammonia carriers +¥140.3 Bil. -¥113.0 Bil. Revenue
Slide 30: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - (Billion Yen) FY2023 FY2024 FY2025 Actual FCST in Feb. Actual Chg. Vs. FY23 Chg. Vs. FCST Forecast Chg. Vs. FY24 Orders Received 401.6 550.0 542.0 + 140.3 - 8.0 430.0 - 112.0 Energy, Plant & Marine Machinery 358.8 340.0 354.4 - 4.4 + 14.4
Slide 31: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - Revenue(billion yen) Note: Results for the previous fiscal year have been reclassified to the reportable segments after the change. Energy, Plant & Marine Machinery 137.1 Ship & Offshore Structure 118.8 20.3 102.1 100.9 95.5 23.7 116.7 86
Slide 32: Energy Solution & Marine Engineering
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 DBO※1 Contract for New Combustible Waste Disposal ₋ Strong demand for ₋ Strong demand for energy Fa
Slide 33: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - FY2024（vs. FY2023） FY2025 forecast（vs. FY2024） Orders Increased due to an increase in hydraulic Orders Increase due to an increase in hydraulic received machinery for Chinese construction received machinery for construction machinery +¥35.9 Bil. m
Slide 34: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - (Billion Yen) FY2023 FY2024 FY2025 Actual FCST in Feb. Actual Chg. Vs. FY23 Chg. Vs. FCST Forecast Chg. Vs. FY24 Orders Received 213.3 240.0 249.2 + 35.9 + 9.2 260.0 + 10.8 Hydraulic Components & Systems 136.1 150.0 147.5 + 11.4 - 2.5 160.0 + 12.5
Slide 35: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - Revenue(billion yen) Hydraulic Components & Systems 73.5 72.6 Robotics 73.1 69.2 65.0 60.6 61.2 29.0 61.5 28.5 33.3 57.6 59.4 55.6 30.8 56.8 52.6 27.8 53.7 52.6 22.6 20.7 22.8 49.3 17.0 23.0 19.4 21.2 20.4 19.8 17.0 16.2 44.0 44.9 40.5 40.4 38.6 3
Slide 36: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - Market Overview Specific Efforts ⚫ Measures for the development ⚫ Construction machinery of hydraulic business – In China, demand was sluggish due to the Development of new products and Strengthening the after prolonged real estate slump, but ther
Slide 37: Powersports & Engine
Details by Segment 3 - Powersports & Engine - FY2024（vs. FY2023） FY2025 forecast（vs. FY2024） Revenue Increased due to the increase in Revenue Increase mainly due to an increase in motorcycles and the impact of weaker revenue of four-wheelers for North +¥16.9 Bil. yen despite a temporary decrease in
Slide 38: Powersports & Engine
Details by Segment 3 - Powersports & Engine - (Billion Yen) FY2023 FY2024 FY2025 Actual FCST in Feb. Actual Chg. Vs. FY23 Chg. Vs. FCST Forecast Chg. Vs. FY24 Revenue 592.4 640.0 609.3 + 16.9 - 30.7 660.0 + 50.7 Motorcycles for developed contries 217.9 263.0 245.3 + 27.3 - 17.7 243.0 - 2.3 Motorcycl
Slide 39: Powersports & Engine
Details by Segment 3 - Powersports & Engine - Revenue(billion yen) 187.9 192.0 177.3 163.9 148.5 143.9 144.7 138.3 139.1 137.2 126.0 123.1 113.4 108.5 102.7 93.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 FY2023 FY2024 25.6 Business Profit(billion yen) 19.1 17.8 13.1% 16.0 14.9 15
Slide 40: Powersports & Engine
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 – Realize stable supply of products b
Slide 41: Shareholder Return and others
4 Shareholder Return and others © Kawasaki Heavy Industries, Ltd. All Rights Reserved 41
Slide 42: Shareholder Return
4 Shareholder Return Dividend for FY2024 Dividend Policy The medium- to long-term Full-year profit attributable to owners of the parent company consolidated dividend payout ratio 30% revised up to 10.0 billion yen from the February forecast Year-end dividend will be increased (from 70 yen to 80 yen)
Slide 43: Project Topics
4 Project Topics Theme EXPO 2025 Exhibition at Expo 2025 OSAKA, Research has shown that people are genetically predisposed Kansai, Japan to derive happiness from the act of moving. “Future Mobility” as imagined by the Kawasaki Group The Kawasaki Group believes that there is an innate 「Impulse to Mov
Slide 44: Project Topics
4 Project Topics CONCEPT 01 Off-road personal mobility vehicle by four robotic legs On SNS, the total number of views of CORLEO related posts CONCEPT 02 exceeded 100 million in New form of public transport system 1 week! CONCEPT 03 Hydrogen Generator © Kawasaki Heavy Industries, Ltd. All Rights Rese
Slide 45: Project Topics
4 Project Topics Hydrogen society is right around the corner ー The impact of LNG regression ー Possibility is increasing that hydrogen, particularly blue hydrogen which is highly compatible with LNG, will be introduced to support the spread of green hydrogen No change in the structure of forming a hy
Slide 46: ESG Topics
4 ESG Topics Here is a list of external evaluations (as of April 2025) https://global.kawasaki.com/en/corp/sustainability/esg/evaluation.html Selected for the first time in the global stock index "DJSI World" December 24 First selected for DJSI World, a global ESG investment index Selected as DJSI A
Slide 47: Appendix - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees
Appendix 4 - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees - (Billion Yen, Persons) FY2023 FY2024 FY2025 Forcast Actual FCST in Feb. Actual Chg. Vs. FY23 Chg. Vs. FCST Forecast Chg. Vs. FY24 CAPEX 133.7 120.0 141.1 + 7.4 + 21.1 154.0 + 12.9 Depreciation and amortization 80.
Slide 48: 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 4Q Aerospace Systems 60.4 65.1 75.1 144.7 118.7 74.4 139.2 360.0 88.2 121.7 470.1 202.7 Aerospace 45.9 46.4 48.0 113.4 104.4 98.0 108.0 246.3 54.3 58.4 435.6 151.1 Aero Engine 14.4 18
Slide 49: Appendix - Others - Ministry of Defense orders and revenue
Appendix 4 - Others - ⚫ Orders received and Revenue for Ministry of Defense（billion yen） FY23 FY24 FY25 Actual FCST in Feb. Actual Change Forecast Change Total 553.0 728.0 774.7 + 221.7 + 46.7 400.0 - 374.7 Aircrafts and others 396.6 548.5 584.7 + 188.1 + 36.2 270.0 - 314.7 Aero Engines 52.4 32.5 38
Slide 50: Appendix - Others - Order Backlog
Appendix 4 - Others - ⚫ Order Backlog （billion yen) ⚫ Order Backlog in Ship & Offshore (billion yen) FY2023 FY2024 End of Q4 Actual Actual Change Aerospace Systems 1,024.9 1,301.9 + 276.9 228.9 191.6 Rolling Stock 490.0 519.7 + 29.7 179.4 Energy Solution & Marine Engineering 685.4 825.3 + 139.8 101.
Slide 51: Appendix - Others - Revenue by Region
Appendix 4 - Others - ⚫ Revenue by Region （billion yen) ⚫ FY2023 (billion yen) Japan USA Europe Asia Other Total FY2023 FY2024 Actual Actual Change Aerospace Systems 228.2 84.3 80.0 0.0 3.5 396.1 Rolling Stock 69.4 114.9 - 11.4 - 195.9 Japan 731.5 866.5 + 134.9 Energy Solution & USA 551.2 671.1 + 11
Slide 52: Appendix - Others - Foreign currency 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 FY2025 FY2023 actual 157.09 Actual Actual Forecast FY2024 actual 163.07 Aerospace Systems 0.59 0.47 1.03 FY
Slide 53: © Kawasaki Heavy Industries, Ltd. All Rights Reserved
© Kawasaki Heavy Industries, Ltd. All Rights Reserved
Slide 54: Business Growth Image
Business Growth Image May 9, 2025
Slide 55: Business growth image (Profit)
Business growth image(Profit) Responding appropriately to changes in the external environment, Achieve a business margin of 8% by 2027 and over 10% by 2030 Net sales/Revenue OP/business profit margin ［billion yen］ ［％］ 3,000 15 Net sales/Revenue OP/business profit margin Over 10% Business profit marg
Slide 56: © Kawasaki Heavy Industries, Ltd. All Rights Reserved
© Kawasaki Heavy Industries, Ltd. All Rights Reserved
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