Kawasaki Heavy Industries Ltd. · TSE:7012
Kawasaki Heavy Industries — Kawasaki Heavy Industrial — Q3 FY2022 Earnings Presentation
43 slides from Kawasaki Heavy Industries's earnings presentation, Feb 10, 2023
Slide 1: Financial Results for Third Quarter FY2022
Financial Results for Third Quarter FY2022 For the Year ending March 31, 2023 0 February 10, 2023
Slide 2: Table of Contents
0 Table of Contents 1 Consolidated Results for 3 Details by segment Third Quarter FY2022 Summary 3 Aerospace Systems 15 Segment 4 Rolling Stock 19 Statement of Comprehensive income 5 Energy Solution & Marine Engineering 23 (ES&M) Details of Change in business profit 7 Precision Machinery & Robot 27
Slide 3: Consolidated Results Q3 FY2022 - Summary
Consolidated Results for Third Quarter FY2022 1 –Summary- Revenue and profits grew significantly for third consecutive quarters , with quarterly profit hitting a record high in Q3 Successful price pass-through of rising costs mainly in PS&E contributed to better results than planned (Billion Yen) 【A
Slide 4: Consolidated Results - Segment
Consolidated Results for Third Quarter FY2022 1 –Segment- Profits improved in Aerospace Systems due to the recovery of air passenger demand, the depreciation of the yen, and the period shift ① Profits improved in Energy Solution & Marine Engineering due to a reaction to loss provisions in Chinese sh
Slide 5: Statement of comprehensive income
Consolidated Results for Third Quarter FY2022 1 –Statement of comprehensive income- (Billion Yen) FY21 Q3 FY22 Q3 Change Details % % Revenue 1,038.6 100.0 1,196.3 100.0 + 157.6 ① Improved due to 1 increasing sales amount, Cost of sales 849.2 81.8 949.5 79.4 + 100.2 price pass-through, and Gross prof
Slide 6: Statement of comprehensive income (continued)
Consolidated Results for Third Quarter FY2022 1 –Statement of comprehensive income- (Billion Yen) FY21 Q3 FY22 Q3 Change Details % % Finance income and Finance costs - 3.9 - 8.7 - 4.7 ⑤ USD/JPY rate 122.41 Mar. 31,’22 Net Interest expense (incl. dividend income) - 1.7 - 1.9 - 0.1 132.70 Dec. 31,’22
Slide 7: Details of change in business profit
Consolidated Results for Third Quarter FY2022 1 –Details of change in business profit- The depreciation of the yen and cost reduction covered the rising raw material prices Change in product mix and other factors turned positive in PS&E due to successful price pass-through FY’21 Q3 FY’22 Q3 Business
Slide 8: Details of change in business profit by segment
Consolidated Results for Third Quarter FY2022 1 –Details of change in business profit- (Billion Yen) FY21 Q3 Details of change FY22 Q3 Business Change in Change in Business Effects of Change share of profit (loss) Change in Profit product mix and of investments SG & A Total Profit (Loss) FX rates※ i
Slide 9: Statement of financial position
Consolidated Results for Third Quarter FY2022 1 –Statement of financial position- (Billion Yen) End of End of Details Change Mar. 2022 % Dec. 2022 % Cash and cash equivalents 108.5 87.9 - 20.5 ① Increase in PS&E and Aerospace Systems Trade receivables (Incl. contract assets) 482.9 568.6 + 85.6 1 Inv
Slide 10: Statement of financial position (continued)
Consolidated Results for Third Quarter FY2022 1 –Statement of financial position- (Billion Yen) End of End of Details Change Mar. 2022 % Dec. 2022 % Trade payables 344.2 387.0 + 42.8 ③ normal Increase in borrowings as a business cycle 3 Interest-bearing debt 553.9 721.7 + 167.8 Contract liability (A
Slide 11: Cash Flows
Consolidated Results for Third Quarter FY2022 1 –Cash Flows- (Billion Yen) Details FY21 Q3 FY22 Q3 Change Profit before tax 24.7 72.1 + 47.3 ① Q3 FY2021： Significant cash outflows Depreciation and amortization 56.9 55.9 - 0.9 in working capital Increase and decrease in working capital - 166.3 - 161.
Slide 12: Cash Flows
Consolidated Results for Third Quarter FY2022 1 –Cash Flows- Operating CF is improving and approaching the level of FY2014 Q3 Working capital decreased slightly from the same period last year, and the balance to profit before tax improved (Billion yen) CF from operating acitivities CF from investing
Slide 13: Forecasts for FY2022 - Summary
Forecasts for FY2022 2 -Summary- Business profit forecast was revised up due mainly to the strong performance in PS&E, despite a change in FX assumptions Revenue will continue to increase in Q4, but there will be a concentration of provision for performance-based bonuses and various expenses (Billio
Slide 14: Forecasts for FY2022 - Segment
Forecasts for FY2022 2 -Segment- Precision Machinery & Robot revised downward due to a temporary deterioration in demand conditions ① PS&E continues strong, and revised upward due to a decrease of supply chain risk ② (Billion Yen) Orders Received Revenue Business Profit (Loss) FY2021 FY2022 Forecast
Slide 15: Aerospace Systems
Details by Segment 3 -Aerospace systems- FY2022.Q3（vs. FY2021.Q3） FY2022 forecast（vs. Forecast in November） Orders Increased due to an increase for MOD Orders Remained at the same level due to an received and increase in component parts for received increase for MOD, despite a decrease for +¥39.9 bi
Slide 16: Aerospace Systems
Details by Segment 3 -Aerospace systems- (Billion Yen) FY2021 FY2022 FY2021 FY2022 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY21 Chg. Vs. Old FCST Q4 FCST Orders Received 160.8 200.7 + 39.9 383.3 300.0 300.0 - 83.3 - 99.3 Aerospace 134.3 140.5 + 6.1 329.5 225.0 225.0 - 1
Slide 17: Aerospace Systems
Details by Segment 3 -Aerospace systems- Net Sales or Revenue (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 93.5 81.5 74.6 70.0 71.5 63.2 63.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2018 FY2019 FY2020 FY2021 FY2022 （IFRS
Slide 18: Aerospace Systems - Market Overview and Specific Efforts
Details by Segment 3 -Aerospace systems- Market Overview Specific Efforts Commercial business Securing stable revenue in core business – Air passenger demand is recovering from – Cost reductions in existing orders of aircrafts for Boeing and commercial the great impact of COVID-19, with an aircr
Slide 19: Rolling Stock
Details by Segment 3 - Rolling Stock - FY2022.Q3（vs. FY2021.Q3） FY2022 forecast（vs. Forecast in November） Orders Increased due to major orders for Orders Expected to remain at the same level received domestic new commuter trains and new received +¥252.1bil. subway cars for New York City Transit ±¥0
Slide 20: Rolling Stock
Details by Segment 3 - Rolling Stock - (Billion Yen) FY2021 FY2022 FY2021 FY2022 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY21 Chg. Vs. Old FCST Q4 FCST Orders Received 42.2 294.3 + 252.1 71.5 300.0 300.0 + 228.5 - 5.7 Domestic & Asia 36.2 41.5 + 5.3 65.1 56.5 47.0 - 18.
Slide 21: Rolling Stock
Details by Segment 3 - Rolling Stock - Net Sales or Revenue (billion yen) Domestic & Asia North America 40.6 38.6 38.8 38.1 39.0 36.8 37.5 32.3 32.3 33.7 31.7 31.5 32.1 28.7 28.8 26.4 23.3 22.0 20.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2018 FY2019 FY2020 FY2021 FY2022 （IFRS） （I
Slide 22: Rolling Stock - Market Overview and Specific Efforts
Details by Segment 3 - 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 - FY2022.Q3（vs. FY2021.Q3） FY2022 forecast（vs. Forecast in November） Increased due to an increase in orders for Orders Orders Revised up due to an increase in power generation facilities, and construction received received LPG/LAG carriers
Slide 24: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - (Billion Yen) FY2021 FY2022 FY2021 FY2022 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY21 Chg. Vs. Old FCST Q4 FCST Orders Received 253.2 301.8 + 48.6 343.5 390.0 410.0 + 66.5 + 20.0 108.2 Energy, Plant & 193.0
Slide 25: Energy Solution & Marine Engineering
Details by Segment 3 - Energy Solution & Marine Engineering - Net Sales or Revenue (billion yen) (Note) The prior results of previous segment have been reclassified to current segment Energy, Plant & Marine Machinery Ship & Offshore Structure 100.1 103.8 99.3 95.5 88.2 82.5 77.8 73.0 70.5 72.2 70.5
Slide 26: Energy Solution & Marine Engineering - Market Overview and Specific Efforts
Details by Segment 3 - Energy Solution & Marine Engineering - Market Overview Specific Efforts Energy system & Plant Engineering Providing of products and services for a low-carbon and decarbonized society Domestic Emerging Markets Topics (FY’22) Steady demand for Steady demand for distributed pow
Slide 27: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - FY2022.Q3（vs. FY2021.Q3） FY2022 forecast（vs. Forecast in November） Remained at the same level due to a Revised down due to a decrease in Orders decrease in hydraulic components for Chinse Orders hydraulic components for Chinese received constructi
Slide 28: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - (Billion Yen) FY2021 FY2022 FY2021 FY2022 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY21 Chg. Vs. Old FCST Q4 FCST Orders Received 197.4 197.6 + 0.1 271.8 270.0 260.0 - 11.8 - 10.0 62.4 Hydraulic 124.5 118.1 - 6.3 171.6
Slide 29: Precision Machinery & Robot
Details by Segment 3 - Precision Machinery & Robot - Net Sales or Revenue (billion yen) Hydraulic Components & Systems Robotics 86.6 73.1 67.8 70.3 65.0 60.6 61.2 61.5 55.2 57.6 54.1 52.1 53.6 52.6 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 1Q 2Q 3Q FY2018 FY2019 FY2020
Slide 30: Precision Machinery & Robot - Market Overview and Specific Efforts
Details by Segment 3 - Precision Machinery & Robot - Market Overview Specific Efforts Construction machinery Developing electrification and automation – China’s lockdown under the zero-COVID technology for construction machinery policy depressed demand – Development and supply of the latest – De
Slide 31: Powersports & Engine
Details by Segment 3 - Powersports & Engine - FY2022.Q3（vs. FY2021.Q3） FY2022 forecast（vs. Forecast in November） Increased due to an increase in motorcycles Revised up due to an increase in Revenue for North America and Southeast Asia, four- Revenue motorcycles for developed countries, +¥104.2 bil.
Slide 32: Powersports & Engine
Details by Segment 3 - Powersports & Engine - (Billion Yen) FY2021 FY2022 FY2021 FY2022 Forecast Q3 Actual Q3 Actual Change Actual Old FCST New FCST Chg. Vs. FY21 Chg. Vs. Old FCST Q4 FCST Revenue 309.5 413.7 + 104.2 447.9 550.0 590.0 + 142.1 + 40.0 176.3 Motorcycles for developed contries 111.9 139
Slide 33: Powersports & Engine
Details by Segment 3 - Powersports & Engine - Net Sales or Revenue (billion yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2018 FY2019 FY2020 FY2021 FY2022 （IFRS） （IFRS） Operating Profit or Business Profit (billion yen) 17.2% 13.1% 11.0% 10.6% 10.2% 10.9% 8.2% 8.8% 5.6% 4.5% 5.3% 0.
Slide 34: Powersports & Engine - Market Overview and Specific Efforts
Details by Segment 3 - Powersports & Engine - Market Overview Specific Efforts U.S.& Europe Supplying products as much as demanded – Retail market remains strong despite a – All efforts to achieve production plans slight slowdown – Flexibly change production and sales plans according to sales co
Slide 35: Shareholder Return 70 yen per share
4 Shareholder Return Dividend Policy Dividend for FY2022 Profit attributable to owners of the parent was revised upward by 9 billion yen from the forecast in November※, on the back of 30% The medium- to long-term consolidated dividend payout ratio good results in PS&E and the depreciation of the y
Slide 36: Project Topics - hinotori surgical robot system
4 Project Topics covers hinotori TM surgical robot system Approx. 90% Business Progress and Future Developments of all robotic assisted surgeries performed in Japan Received the regulatory approval for the use of the *Numbers show the number of procedures hinotori Surgical Robot System in gastroen
Slide 37: Project Topics - Service robot FORRO
4 Project Topics Service robot "FORRO" - Toward the launch of in-hospital delivery services- Multiple-unit Elevator Fujita Health University Hospital and Kawasaki have been operation jointly conducting demonstration tests to reduce the workload OK!! OK!! of healthcare workers and streamline operat
Slide 38: Project Topics - Carbon neutrality motorcycles
4 Project Topics Growing Kawasaki and offering products to achieve carbon neutrality Domestic sales (401cc or more) Top domestic market share※ for a cumulative total of 5 years ※401cc or more Motorcycle-style battery EV and strong hybrid motorcycle (HEV) were on display at EICMA 2022 EV Intended for
Slide 39: Project Topics - Hydrogen gas turbines in Europe
4 Project Topics For the diffusion of hydrogen gas turbines in the What is REPowerEU ? European distributed power generation market In May 2022, the European Commission presented REPowerEU Plan, aimied at weaning off the countries off Business opportunities are expanding in Europe, where there is
Slide 40: Appendix - CAPEX, D&A, R&D Expenses, Employees
Appendix 4 - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees - (Billion Yen, Persons) FY2021 FY2022 FY2021 FY2022 Q3 Actual Q3 Actual Change Actual FCST Chg. Vs. FY21 CAPEX 48.4 61.3 + 12.8 77.6 90.0 + 12.4 Depreciation and amortization 56.8 55.8 - 1.0 77.3 82.5 + 5.2 R & D e
Slide 41: Appendix - Others (Order backlog, revenue by region)
Appendix 4 - Others - Order Backlog （billion yen) Order Backlog in Ship & Offshore (billion yen) FY21 Q3 FY22 Q3 Actual Actual Change 211.6 Q3/E Q4/E Aerospace Systems 486.9 600.5 + 113.5 191.6 Rolling Stock 396.4 590.2 + 193.7 101.6 110.5 Energy Solution & Marine Engineering 525.8 596.6 + 70.8
Slide 42: Appendix - Others (Foreign currency revenue, IFRS changes)
Appendix 4 - Others - Revenue in Foreign Currencies by Segment (USD) (Note)Major changes in the income statement associated with the adoption of IFRS (billion USD) JGAAP IFRS FY2021 FY2022 Net Sales Revenue Cost of sales Cost of sales Actual Actual Q4 FCST Gross profit Gross profit Aerospace Syste
Slide 43: © Kawasaki Heavy Industries, Ltd. All Rights Reserved
© Kawasaki Heavy Industries, Ltd. All Rights Reserved
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