Kawasaki Heavy Industries Ltd. · TSE:7012
Kawasaki Heavy Industries — Kawasaki Heavy Industrial — FY2021 Earnings Presentation
45 slides from Kawasaki Heavy Industries's earnings presentation, May 10, 2022
Slide 1: Financial Results for FY2021
Financial Results for FY2021 For the Year ended March 31, 2022 0 May 10, 2022 © Kawasaki Heavy Industries, Ltd. All Rights Reserved
Slide 2: Table of Contents
0 Table of Contents 1 Consolidated Results for FY2021 3 Details by segment Summary 3 Aerospace Systems 15 Segment 4 Rolling Stock 19 Income Statement 5 Energy Solution & Marine Engineering 23 Details of Change in Profit 7 Precision Machinery & Robot 27 Balance Sheet 9 Motorcycle & Engine 31 Cash Flo
Slide 3: Consolidated Results for FY2021 - Summary
Consolidated Results for FY2021 1 –Summary- Profit increased significantly due to the recovery from the impact of COVID-19 Recurring profit and net income exceeded the previous forecast due to foreign exchange gain and period shift of non-operating expenses (Billion Yen) FY2021 Change FY2020 Forecas
Slide 4: Consolidated Results for FY2021 - Segment
Consolidated Results for FY2021 1 –Segment- Aerospace Systems improved significantly due to the recovery of passenger demand ① Sales and profit increased significantly in Motorcycle & Engine due to strong demand for outdoor leisure in developed countries ② (Billion Yen) Orders Received Net Sales Ope
Slide 5: Income Statement
1 Consolidated Results for FY2021 –Income Statement- (Billion Yen) FY2020 FY2021 Change Details % % Net Sales 1,488.4 100.0 1,500.8 100.0 + 12.3 ① Increase in selling expenses Cost of sales in Motorcycle & Engine and 1,297.3 87.2 1,244.3 82.9 - 53.0 Precision Machinery & Robot Gross profit 191.1 12.
Slide 6: Income Statement (continued)
1 Consolidated Results for FY2021 –Income Statement- (Billion Yen) FY2020 FY2021 Change Details % % Recurring Profit (Loss) - 2.8 - 0.2 29.9 2.0 + 32.7 ④ Sale of land Extraordinary Income / Losses - 11.8 0.9 + 12.7 Gain on sales of fixed assets 5 4 ⑤ Sale of dormitory /company 3.2 1.6 - 1.6 housing
Slide 7: Details of change in profit
Consolidated Results for FY2021 1 –Details of change in profit- Motorcycle & Engine contributed to change in sales, enjoying the affect of depreciation of the yen Jet engine maintenance costs, which were a major burden in FY2020, were decreased FY2020 +¥51.1 billion yen FY2021 Operating Operating Lo
Slide 8: Details of change in profit by segment
Consolidated Results for FY2021 1 –Details of change in profit- (Billion Yen) FY2020 FY2021 Operating Change in Change in Operating Profit Effects of Change Profit product mix and SG & A Total (Loss) FX rates※ in sales※ other factors※ expenses (Loss) Aerospace Systems - 31.6 3.6 0.1 16.6 1.6 21.9 -
Slide 9: Balance Sheet
1 Consolidated Results for FY2021 –Balance Sheet- (Billion Yen) End of End of Change Details Mar. 2021 % Mar. 2022 % Cash and deposits 126.7 114.4 - 12.2 ① A portion of trade receivable in Trade receivables 1 Aero Engine (approximately ¥22 460.4 418.6 - 41.8 billion) was reduced as an Inventory 658.
Slide 10: Balance Sheet (liabilities and net assets)
1 Consolidated Results for FY2021 –Balance Sheet- (Billion Yen) End of End of Change Details Mar. 2021 % Mar. 2022 % Trade payables 355.1 344.3 - 10.8 ① Progress in repayment of Interest-bearing debt 1 borrowings due to business 593.3 501.4 - 91.8 recovery, despite an increase Contract liability (Ad
Slide 11: Cash Flows
1 Consolidated Results for FY2021 –Cash Flows- (Billion Yen) FY2020 FY2021 Change Details Income before income taxes - 14.6 30.8 + 45.5 ① Increase of advances received in mainly Aerospace business Depreciation and amortization 61.2 60.8 - 0.4 Increase and decrease in working capital - 15.8 32.2 + 48
Slide 12: Cash Flows
1 Consolidated Results for FY2021 –Cash Flows- Acquisition of advances received for Aerospace led to the second highest operating cash flow on record in FY2021 Decrease in working capital, which had been on an upward trend, enhanced cash flow generation capacity (billion yen) CF from operating activ
Slide 13: Forecasts for FY2022 - Summary
Forecasts for FY2022 2 -Summary- International Financial Reporting Standards (IFRS) is adopted from FY2022 Sales and profits will increase due to price transfer of cost increases and depreciation of yen (Billion Yen) FY2021 FY2022 Change Major changes in the income statement Actual JGAAP IFRS (JGAAP
Slide 14: Forecasts for FY2022 - Segment
Forecasts for FY2022 2 -Segment- Aerospace Systems will return on the black, and Motorcycle & Engine will achieve the highest operating profit ① Investment in DX-related infrastructure and others is expected to increase in Eliminations and corporate ② (Billion Yen) Business Orders Received Net Sales
Slide 15: Aerospace Systems
3 Details by Segment -Aerospace systems- FY2021 （vs. FY2020） Orders Increased due to an increase in component parts for Ministry of Defense and Boeing, despite a decrease in component received parts for commercial aircraft jet engines caused by the application of new Accounting Standard for Revenue
Slide 16: Aerospace Systems
3 Details by Segment -Aerospace systems- (Billion Yen) FY2020 FY2021 FY2022 Actual FCST in Feb. Actual Chg. Vs. FY20 Chg. Vs. FCST Forecast Chg. Vs. FY21 Orders Received 329.5 370.0 383.3 + 53.7 + 13.3 280.0 - 103.3 Aerospace 236.2 310.0 329.5 + 93.2 + 19.5 205.0 - 124.5 Aero Engine 93.3 60.0 53.8 -
Slide 17: Aerospace Systems
3 Details by Segment -Aerospace systems- Net Sales (billion yen) 161.1 Aerospace Aero Engines 135.8 128.7 117.9 122.1 120.5 104.9 105.2 109.3 99.7 93.9 93.3 74.6 70.0 71.5 63.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2018 FY2019 FY2020 FY2021 Operating Income (billion yen) 13.8% 10.0% 8.3%
Slide 18: Aerospace Systems
3 Details by Segment -Aerospace systems- Market Overview Specific Efforts Commercial business Securing stable revenue in core business – Demand for aircrafts and aircraft jet engines is – Cost reductions in existing orders of aircrafts for Boeing and commercial sluggish because global passenger
Slide 19: Rolling Stock
3 Details by Segment - Rolling Stock - FY2021 （vs. FY2020） Orders Decreased compared with FY2020, when orders for Shinkansen were large, despite orders for subway in FY2021 received Net Sales Decreased due to a decrease in other regions despite an increase in the U.S. Operating Improved due to impro
Slide 20: Rolling Stock
3 Details by Segment - Rolling Stock - (Billion Yen) FY2020 FY2021 FY2022 Actual FCST in Feb. Actual Chg. Vs. FY20 Chg. Vs. FCST Forecast Chg. Vs. FY21 Orders Received 77.0 50.0 71.5 - 5.5 + 21.5 80.0 + 8.5 Domestic & Asia 66.2 44.0 66.2 - 0.0 + 22.2 74.5 + 8.3 North America 10.8 6.0 6.4 - 4.4 + 0.4
Slide 21: Rolling Stock
3 Details by Segment - Rolling Stock - Net Sales (billion yen) Domestic & Asia North America 40.6 38.6 38.8 38.1 39.0 36.8 37.5 32.3 32.3 31.7 31.5 28.7 28.8 23.3 22.0 20.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2018 FY2019 FY2020 FY2021 5.9% 3.1% 3.4% 3.7% 7.7% 1.9% - 2.1% - 1.7% - 3.9%
Slide 22: Rolling Stock
3 Details by Segment - Rolling Stock - Market Overview Specific Efforts The impact of COVID-19 Compliance with delivery schedules for – Some domestic railway operators are overseas projects reviewing their railway related investment Dhaka ‣The first and second trains are undergoing functional te
Slide 23: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - FY2021 （vs. FY2020） Orders Increased due to major orders for construction and operation of domestic municipal waste incineration plants and other projects received Net Sales Decreased due to a decrease in construction work for submarines
Slide 24: Energy Solution & Marine Engineering
3 Details by Segment - Energy Solution & Marine Engineering - (Billion Yen) FY2020 FY2021 FY2022 Actual FCST in Feb. Actual Chg. Vs. FY20 Chg. Vs. FCST Forecast Chg. Vs. FY21 Orders Received 317.1 330.0 343.5 + 26.3 + 13.5 340.0 - 3.5 Energy System 219.0 260.0 272.7 + 53.6 + 12.7 250.0 - 22.7 & Plan
Slide 25: Energy Solution & Marine Engineering
3 Details by Segment - Energy Solution & Marine Engineering - Net Sales (billion yen) Energy System & Plant Engineering Ship & Offshore Structure 100.1 103.8 99.3 95.5 88.2 82.5 73.0 70.5 72.2 70.5 72.8 70.3 70.8 67.9 64.8 60.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2018 FY2019 FY2020 FY2
Slide 26: Energy Solution & Marine Engineering
3 Details by Segment - Energy Solution & Marine Engineering - Market Overview Specific Efforts Promotion of energy equipment for a Energy system & Plant Engineering low-carbon and decarbonized society Domestic Emerging Markets Major orders received in FY2021 Steady demand for Steady demand for dis
Slide 27: Precision Machinery & Robot
3 Details by Segment - Precision Machinery & Robot - FY2021 （vs. FY2020） Orders Increased due to an increase in various robots including robots for semiconductor manufacturing equipment received Increased due to an increase in various robots including robots for semiconductor manufacturing equipment
Slide 28: Precision Machinery & Robot
3 Details by Segment - Precision Machinery & Robot - (Billion Yen) FY2020 FY2021 FY2022 Actual FCST in Feb. Actual Chg. Vs. FY20 Chg. Vs. FCST Forecast Chg. Vs. FY21 Orders Received 259.4 260.0 271.8 + 12.4 + 11.8 280.0 + 8.2 Hydraulic 172.6 165.0 171.6 - 1.0 + 6.6 180.0 + 8.4 Components & Systems R
Slide 29: Precision Machinery & Robot
3 Details by Segment - Precision Machinery & Robot - Net Sales (billion yen) Hydraulic Components & Systems Robotics 86.6 73.1 67.8 70.3 60.6 61.2 55.2 57.6 54.1 52.1 53.6 47.9 48.3 49.8 48.8 45.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2018 FY2019 FY2020 FY2021 10.1% 9.9% 9.5% 9.4% 9.2% 8
Slide 30: Precision Machinery & Robot
3 Details by Segment - Precision Machinery & Robot - Market Overview Specific Efforts Construction machinery Developing electrification and automation – High level of demand in China still continues technology for construction machinery despite a slight slowdown in 2022 – Development and supply
Slide 31: Motorcycle & Engine
3 Details by Segment - Motorcycle & Engine - FY2021 （vs. FY2020） Increased due to an increase in motorcycles for North America, Europe and Southeast Asia, and an increase in general-purpose Net Sales gasoline engines for North America Operating Increased due to an increase in revenue, depreciation o
Slide 32: Motorcycle & Engine
3 Details by Segment - Motorcycle & Engine - (Billion Yen) FY2020 FY2021 FY2022 Actual FCST in Feb. Actual Chg. Vs. FY20 Chg. Vs. FCST Forecast Chg. Vs. FY21 Net Sales 336.6 440.0 447.9 + 111.2 + 7.9 500.0 + 52.1 Motorcycles for developed contries 114.2 - 169.9 + 55.6 - 172.0 + 2.1 Motorcycles for e
Slide 33: Motorcycle & Engine
3 Details by Segment - Motorcycle & Engine - Net Sales (billion yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2018 FY2019 FY2020 FY2021 Operating Income (billion yen) 13.0% 11.0% 8.2% 10.8% 8.8% 5.6% 4.0% 5.5% 0.9% - 0.6% 2.3% - 1.3% - 1.9% - 4.4% - 4.1% - 10.0% © © Kawasaki Kawasaki Heavy
Slide 34: Motorcycle & Engine
3 Details by Segment - Motorcycle & Engine - Market Overview Specific Efforts U.S. Supplying products as much as demanded – Demand for off-road motorcycles and four- – All efforts to achieve production plans wheelers remains strong – Changing production and sales plans promptly according – Stron
Slide 35: Shareholder Return
4 Shareholder Return Dividend Policy Dividend for FY2021 Net income attributable to owners of the parent exceeded the previous 1 Future business forecasts, Financial forecast by 6.8 billion yen, due in part to the depreciation of the yen conditions such as free cash flow and debt-to-equity ratio, an
Slide 36: Project Topics: World's first liquefied hydrogen vessel voyage
4 Project Topics The world’s first liquefied hydrogen vessel voyage completed An international liquefied hydrogen supply chain became a reality The completion ceremony was held in Kobe, Japan, with Prime Minister Kishida in attendance Knowledge from the demonstration voyage will guide the deve
Slide 37: Project Topics: Kawasaki & Airbus hydrogen study
4 Project Topics Each Contribution Kawasaki & Airbus to study use of hydrogen in Japan Technology drivers on the Aircraft characteristics The scope will include different aspects of the various elements of the Fleet energy usage hydrogen supply chain, from the production of supply chain Insight on
Slide 38: Project Topics: Growth in PCR viral testing business
4 Project Topics Growth in PCR viral testing business In FY 22, we aim to quadruple Topics Other aspects of the business the number of specimens compared to the previous year. Utilization of aviation talents International passenger services Working on the business with talents from Japanese majo
Slide 39: Project Topics: Indoor location solutions
4 Project Topics What’s “Indoor location solutions” ? The demand for services that utilize indoor location information of people and goods is Launched “Indoor location solutions “ increasing year by year from the viewpoint of improving living and working environments. The market is expected to grow
Slide 40: ESG Topics: Zero Emission Plant in 2030
4 ESG Topics Zero Emission Plant in 2030※ 45 thousand ton/year out of 225 thousand ton/year for “Standalone carbon neutrality” procured from Australia to Japan in 2030 will be used ※ Group Vision 2030・Business Report Meeting （Dec,9,2021） for private power generation(100MW) https://www.khi.co.jp/ir
Slide 41: ESG Topics
4 ESG Topics A new Co-chair of the Hydrogen Council Revision of Material Issues In response to the announcement of the Group Vision Chairman of Kawasaki, Mr. Yoshinori Kanehana became a new 2030 in November 2020, we reviewed our Material Issues. Co-chair of the Hydrogen Council, an initiative led by
Slide 42: Appendix: CAPEX, Depreciation, R&D, Employees
4 Appendix - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees - (Billion Yen, Persons) FY2020 FY2021 FY2022 Forcast Actual Actual Chg. Vs. FY20 JGAAP IFRS Chg. Vs. FY21(JGAAP) CAPEX 55.6 53.5 - 2.1 83.0 100.0 + 29.5 Depreciation and amortization 61.2 60.8 - 0.4 64.0 78.0 + 3.2
Slide 43: Appendix: Others - Order Backlog
4 Appendix - Others - Order Backlog （billion yen) Order Backlog in Ship & Offshore (billion yen) FY2020 FY2021 191.6 Actual Actual Change Aerospace Systems 527.8 619.8 + 92.0 Rolling Stock 443.2 388.1 - 55.0 110.5 101.6 104.6 Energy Solution & 99.1 Marine Engineering 474.3 507.1 + 32.7 85.9 Prec
Slide 44: Appendix: Net Sales in Foreign Currencies by Segment
Appendix 4 - Others - Net Sales in Foreign Currencies by Segment (USD) (billion USD) FY2020 FY2021 FY2022 Actual Actual Forecast Aerospace Systems 0.68 0.57 0.94 Rolling Stock 0.08 0.06 0.02 Energy Solution & Marine Engineering 0.27 0.28 0.22 Precision Machinery & Robot 0.17 0.23 0.20 Motorcycle &
Slide 45: © Kawasaki Heavy Industries, Ltd. All Rights Reserved
© Kawasaki Heavy Industries, Ltd. All Rights Reserved
Kawasaki Heavy Industrial — FY2021 Earnings Presentation on 6ix