Slides
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0 Financial Results for First Quarter FY2025 For the year ending March 31, 2026 August 6, 2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Financial Results and Performance Forecast Highlights 2 Consolidated Results for First Quarter FY2025 Forecasts for FY2025 0 Business profit totaled 20.5 billion yen, an increase of 3.5 billion yen YoY. This represents 14% progress toward the full -year forecast of 145.0 billion yen — a solid start compared to 12% in the previous fiscal year The impact from U.S. tariff policy during the first quarter was minimal The impact of U.S. tariff policy has been reflected in the full - year forecast for FY2025 , and some indirect effects have been factored into the PS&E since the start of the fiscal year While higher tariffs have led to increased costs, the initial business profit forecast of 145.0 billion yen for FY2025 remains unchanged. (The assumed exchange rate for Q2 onward has been revised from 140 yen to 145 yen per US dollar)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 3 Table of Contents Summary 5 Segment 6 Statement of Profit and Loss 7 Details of Change in business profit 9 Statement of financial position 11 Cash Flows 13 Forecasts for FY2025 Details by segment1 Summary 16 Details of change in business profit 17 Segment 18 Aerospace Systems 21 Rolling Stock 26 Energy Solution & Marine Engineering 29 （ES&M） Precision Machinery & Robot 33 Powersports & Engine 37 （PS&E） Figures recorded in the business forecasts are forecasts that reflect the judgment of the Company based on the information available at the time of release and include risks and uncertainties. Accordingly, the Company cautions investors not to make investment decisions solely on the basis of these forecasts. Actual business results may differ materially from these business forecasts due to various important factors resulting from changes in the external environment and internal environment. Important factors that may affect actual business results include, but are not limited to, economic conditions, the yen exchange rate against the U.S. dollar and other currencies, the tax system, and laws and regulations. Our company has adopted IFRS (International Financial Reporting Standards) since the first quarter of FY2022. Shareholder Returns 42 Project Topics 43 Appendix 46 Shareholder Returns and others2 3 4 0 Notice Consolidated Results for First Quarter FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 4 Consolidated Results for First Quarter FY2025 1 (for the year ending March 31, 2026)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved (Billion Yen) Orders Received 456.8 446.3 - 10.5 Revenue 444.2 488.4 + 44.2 Business Profit 16.9 20.5 + 3.5 [margin] [3.8%] [4.2%] [+ 0.3pt] Profit Before Tax 25.8 16.8 - 9.0 [margin] [5.8%] [3.4%] [- 2.3pt] 15.3 4.2 - 11.1 [margin] [3.5%] [0.9%] [- 2.5pt] 153.34 143.79 - 9.55 US dollar-based transaction (B$) 0.49 0.52 + 0.03 FY25 Q1 ChangeFY24 Q1 Profit Attributable to Owners of Parent Weighted-average exchange rates (USD/JPY) 16.9 30.8 31.2 64.0 20.5 3.8% 7.0% 6.0% 8.9% 4.2% 1Q 2Q 3Q 4Q 1Q 444.2 439.9 523.1 721.9 488.4 1Q 2Q 3Q 4Q 1Q 5 1 ※1 Except for loss related to the in-service issues of PW1100G-JM engines ※2 The amount of foreign currency that affects business profits due to exchange rate fluctuations. Calculated by deducting dollar denominated purchases from dollar denominated revenue of Kawasaki Heavy Industries, Ltd, Kawasaki Railcar manufacturing Co., Ltd., and Kawasaki Motors, Ltd., including foreign currency denominated revenue of loss provisions. However, the foreign currency amount for each quarter of FY2024 excludes the amount of refund liabilities denominated in foreign currencies related to the in-service issues of the PW1100G-JM engines. See page 52 for the breakdown of these figures by segments. Consolidated Results for First Quarter FY2025 –Summary- Revenue and Business profit increased YoY , reaching a record high for Q1 revenue Profit before tax and net profit decreased YoY due to the contraction of foreign exchange gains resulting from the appreciation of the yen Quarterly revenue (Billion Yen) FY2024 FY2025 Quarterly business profit (Billion Yen), margin FY2024 FY2025 ※1 ※2
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Orders Received Revenue Business Profit (Loss) FY24 Q1 FY25 Q1 Change FY24 Q1 FY25 Q1 Change FY24 Q1 FY25 Q1 Change Aerospace Systems 88.2 98.9 + 10.7 104.9 101.5 - 3.3 4.8 0.8 - 4.0 Rolling Stock 17.0 14.8 - 2.2 43.8 55.2 + 11.4 - 1.4 3.6 + 5.1 121.8 86.6 - 35.2 80.1 96.6 + 16.5 5.9 9.7 + 3.7 Precision Machinery & Robot 61.6 63.9 + 2.2 52.6 56.9 + 4.2 - 0.1 2.3 + 2.4 Powersports & Engine 144.7 160.2 + 15.5 144.7 160.3 + 15.5 11.5 8.0 - 3.4 Others 23.3 21.7 - 1.5 17.8 17.6 - 0.1 0.7 1.6 + 0.9 Eliminations and corporate ※ - - - - - - - 4.5 - 5.8 - 1.2 Total 456.9 446.3 - 10.5 444.2 488.4 + 44.2 16.9 20.5 + 3.5 (billion yen) Energy Solution & Marine Engineering 6 1 ※“Eliminations and corporate” includes some expenses incurred at Head Offices which were not allocated to each industry segment for internal reporting. Consolidated Results for First Quarter FY2025 –Segment- Business profit increased in Rolling Stock due to improved profitability and recovery from a temporary decline in profit in the previous year※ Business profit in Aerospace Systems declined due to a temporary decline and increased shipments of newly manufactured commercial aircraft engines ① ② Eliminations and corporate※ ※ Impact of the revision to the indirect cost allocation rate 1 2
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved % % Revenue 444.2 100.0 488.4 100.0 + 44.2 Cost of sales 358.8 80.8 396.6 81.2 + 37.8 Gross profit 85.4 19.2 91.8 18.8 + 6.3 Selling, general and administrative expenses 73.8 16.6 76.9 15.8 + 3.0 Salaries and allowances 19.6 20.3 + 0.7 Research and development expenses 13.4 13.6 + 0.1 Others 40.7 42.9 + 2.1 5.8 6.1 + 0.3 Other income and other expenses - 0.4 - 0.5 - 0.0 Gain on sale of property, plant and equipment 0.7 0.0 - 0.6 Others - 1.1 - 0.6 + 0.5 Business Profit (Loss) 16.9 3.8 20.5 4.2 + 3.5 (billion yen) FY24 Q1 FY25 Q1 Change Share of profit (loss) of investments accounted for using equity method 7 Details 1 ① Consolidated Results for First Quarter FY2025 –Statement of Profit and Loss- Selling, general and administrative expenses increased in line with revenue growth, but the SG&A ratio declined1
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved % % Finance income and Finance costs 8.9 - 3.6 - 12.6 Net Interest expense (incl. dividend income) - 1.9 - 2.6 - 0.7 Gain and loss on foreign exchange 12.9 0.1 - 12.7 Others - 2.0 - 1.2 + 0.8 Profit before tax 25.8 5.8 16.8 3.5 - 9.0 Income tax expense 9.9 9.5 - 0.4 Profit attributable to Non-controlling interests 0.5 3.0 + 2.5 Profit attributable to owners of parent 15.3 3.5 4.2 0.9 - 11.1 (billion yen) FY24 Q1 FY25 Q1 Change 8 ② 1 Details Consolidated Results for First Quarter FY2025 –Statement of Profit and Loss- 3 2 ③ Despite the nominal tax burden ratio on quarterly profit before tax standing at a high level of 56%, this was a temporary effect due to the use of a simplified tax calculation method. The full-year rate is expected to converge toward the effective tax rate In April 2025, a 20% stake of Kawasaki Motors, Ltd., a business subsidiary in PS&E, were transferred to ITOCHU Corporation, resulting in an increase in non-controlling interests
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved + 0.3 - 5.8 16.9 - 3.2 + 11.2 + 1.0 20.5 9 Change in product mix and other factors revealed significant profitability improvement in Rolling Stock, while Aerospace Systems and PS&E saw declines Change in revenue was mainly driven due to increase of sales in PS&E FY’24 Q1 Business Profit FY’25 Q1 Business Profit + 3.5 billion yen 1 ※1 "Effects of FX rates" indicate the direct impact on business profit. Indirect effects (such as the impact of price fluctuations) are included "Change in product mix and other factors" and "Changes in SG&A expenses”. ※2 “Effects of FX rates” includes the impact of revaluation of refund liabilities denominated in foreign currencies related to the in-service issues of PW1100G-JM engines(+5.2 bil. yen). ※3 "Changes in SG&A expenses" used to indicate changes in the statement of Profit and Loss but has been changed after FY24 Q2 financial results presentation material to indicate changes after deducting the effects of FX rate(The change factor graphs for each segment shown on page 22 and later are the same). Effects of FX rates※1,2,3 Change in product mix and other factors Change in SG&A expenses※3 Change in revenue Change in share of profit(loss) of investments accounted for using equity method Consolidated Results for First Quarter FY2025 –Details of change in business profit- Breakdown Amount U.S. Tariff-Related Cost Increase(PS&E) - 0.8 Price Optimization +5.7 Others - 3.9 Total +1.0
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved (billion yen) FY24 Q1 Details of change FY25 Q1 Total Aerospace Systems 4.8 0.2 - 1.1 - 1.4 - 1.7 - 4.0 0.8 Rolling Stock - 1.4 - 0.7 0.8 5.1 0.0 - 0.1 5.1 3.6 5.9 - 0.2 2.8 2.3 - 0.1 - 1.1 3.7 9.7 Precision Machinery & Robot - 0.1 - 0.6 0.9 1.8 0.5 - 0.2 2.4 2.3 Powersports & Engine 11.5 - 1.9 7.8 - 7.9 - 0.0 - 1.4 - 3.4 8.0 Others 0.7 0.0 0.0 1.1 - 0.1 - 0.1 0.9 1.6 Eliminations and corporate - 4.5 - 0.1 - 0.0 - 1.1 - 1.2 - 5.8 Total 16.9 - 3.2 11.2 1.0 0.3 - 5.8 3.5 20.5 Business Profit (Loss) Business Profit (Loss) Effects of FX rates※1 Change in revenue※1 Change in product mix and other factors※1 Change in SG & A expenses※3 Energy Solution & Marine Engineering Change in share of profit (loss) of investments accounted for using equity method 10 1 ※2 Consolidated Results for First Quarter FY2025 –Details of change in business profit- ※1 Effects of foreign exchange rates, change in revenue, and change in product mix are approximate values calculated by our company based on certain criteria. In addition, each factor of change is often indivisible, and in particular, it may be desirable to check the change in revenue and change in product mix ※2 “Effects of FX rates” includes the impact of revaluation of refund liabilities denominated in foreign currencies related to the in-service issues of PW1100G-JM engines (+5.2 bil. yen) ※3 Impact of FX rates are not included
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 621.2 661 719.1 775.3 801.0 0.57 0.53 0.56 0.57 0.61 6/21 6/22 6/23 6/24 6/25 Inventory (Bil Yen) Turnover of inventory 468.9 508.3 528.3.0 584.1 594.5 0.76 0.69 0.77 0.76 0.82 6/21 6/22 6/23 6/24 6/25 PP&E and Intangible assets (Bil Yen) Turnover of PP&E and intangible assets % % Cash and cash equivalents 132.7 73.9 - 58.8 Trade receivables (Incl. contract assets) 888.8 810.6 - 78.2 Inventories 775.4 801.0 + 25.6 Other current assets 226.8 269.1 + 42.2 Current assets 2,023.9 67.1 1,954.7 65.8 - 69.1 PP&E and intangible assets 591.5 594.5 + 3.0 Right-of-use assets 58.6 62.4 + 3.7 Deferred tax assets 128.7 127.2 - 1.5 Other non-current assets 214.0 230.0 + 16.0 Non-current assets 993.0 32.9 1,014.2 34.2 + 21.2 Total assets 3,016.9 100.0 2,968.9 100.0 - 47.9 (billion yen) End of Mar. 2025 End of Jun. 2025 Change 11 1 ① IFRS Consolidated Results for First Quarter FY2025 –Statement of financial position- Details Decreased in Aerospase, Plant, and PS&E etc.1 IFRS
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 641.5 667.0 721.7 589.8 666.0 706.0 831.0 653.9 732.6 840.0 908.2 692.5 663.2 106.9% 106.4% 112.2% 77.3% 97.1% 109.0% 126.4% 88.6% 94.3% 109.6% 115.1% 78.4% 78.7% 0 200 400 600 800 1000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Short-term debt (bil yen) Long-term debt (bil yen) Net D/E Ratio % % Trade payables 512.1 490.7 - 21.3 Interest-bearing debt 692.5 663.2 - 29.2 Contract liability (Advances received) 363.5 391.2 + 27.7 Provision for losses on construction contracts 5.1 5.5 + 0.4 Retirement benefit liability 67.1 67.9 + 0.8 Other liabilities 651.5 556.0 - 95.5 Total liabilities 2,291.8 76.0 2,174.7 73.3 - 117.1 Equity attributable to owners of parent 702.9 735.9 + 32.9 Non-controlling interests 22.1 58.3 + 36.1 Total equity 725.0 24.0 794.2 26.8 + 69.1 Total liabilities and equity 3,016.9 100.0 2,968.9 100.0 - 47.9 (billion yen) End of Mar. 2025 End of Jun. 2025 Change 3 12 A portion of the 80.0 billion yen proceeds from the transfer of a 20% stake in Kawasaki Motors, Ltd., a PS&E business subsidiary, to ITOCHU Corporation was allocated to the repayment of interest-bearing debt ② 1 FY2022 Increased in non- controlling interests resulting from the transfer of a 20% stake in Kawasaki Motors, Ltd., to ITOCHU Corporation ③ FY2023 FY2024 Consolidated Results for First Quarter FY2025 –Statement of financial position- Details Appendix Cash Conversion Cycle （day） End of FY21 Q1 141 End of FY22 Q1 146 End of FY23 Q1 146 End of FY24 Q1 159 End of FY25 Q1 148FY2025 2 2
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Profit before tax 25.8 16.8 - 9.0 Depreciation and amortization 20.8 24.3 + 3.4 Increase and decrease in working capital 7.2 40.3 + 33.1 Trade receivables※1 (minus notation indicates incr.) 57.6 74.7 + 17.0 Inventory (minus notation indicates incr.) - 49.9 - 29.5 + 20.3 Trade payables (minus notation indicates decr.) - 18.3 - 19.8 - 1.5 Advance payment (minus notation indicates incr.) - 33.2 - 14.7 + 18.5 Contract liabilities※2 (minus notation indicates decr.) 51.0 29.7 - 21.2 Other - 30.3 - 89.3 - 58.9 Cash flows from operating activities 23.6 - 7.7 - 31.3 Purchase of PP&E and intangible assets - 25.5 - 26.1 - 0.5 Proceeds from sales of PP&E and intangible assets 1.3 0.2 - 1.1 Other - 1.9 - 12.2 - 10.3 Cash flows from investing activities - 26.1 - 38.1 - 12.0 Free cash flows - 2.4 - 45.8 - 43.3 69.6 - 32.5 - 102.1 Dividends paid (Except payment to non-controlling interests) - 4.7 - 12.8 - 8.0 - 27.6 - 37.9 - 10.2 Other - 10.0 70.5 + 80.6 Cash flows from financing activities 27.1 - 12.7 - 39.8 (billion yen) FY24 Q1 FY25 Q1 Change Net increase and decrease in debt and bonds (minus notation indicates decr.) Proceeds from fluidity of lease receivables and Repayment of payables under fluidity lease receivables 13 ① 1 FY’24 Q1： Operating cash flows were at the same level as pre-tax income due to an increase in contract liabilities in Aerospace, despite an increase in inventories in Aerospace Systems and PS&E FY’25 Q1： Although trade receivables were collected in Aerospace and Plant, increased payments such as corporate income taxes led to a cash outflow in operating cash flow 1 Consolidated Results for First Quarter FY2025 –Cash Flows- Details ※1,2 Trade receivables include contract assets. The former account name of contract liabilities is advances received 2 2 ②A portion of the 80.0 billion yen proceeds from the transfer of a 20% stake in Kawasaki Motors, Ltd., a PS&E business subsidiary, to ITOCHU Corporation was allocated to the repayment of interest-bearing debt
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved - 70.3 - 86.6 - 74.1 - 163.7 - 101.1 - 29.5 - 61.9 - 22.4 23.6 -7.7 485.5 503.4 547.4 611.1 658.0 594.3 598.2 710.3 845.9 880.6 (7.9) (5.4) (8.5) (- 4.3) (- 14.1) (17.0) (10.6) (14.9) (25.8) (16.8) - 300.0 0.0 300.0 600.0 900.0 FY'16 Q1 FY'17 Q1 FY'18 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 Q1 FY'23 Q1 FY'24 Q1 FY'25 Q1 CF from operating activities CF from investing activities Working capital FCF IFRS 14 1 Consolidated Results for First Quarter FY2025 –Cash Flows- Although working capital increased significantly over the past three years, its contribution to cash flow has gradually become more apparent Operating cash flow in Q1 FY2025 was slightly negative, but remained on an improvement trend (billion yen) ※ Working capital = Trade receivables + Inventories + Advance payments - Trade payables - Contract Liabilities (advances received)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 15 Forecasts for FY2025 2 (for the year ending March 31, 2026)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved (billion yen) FY2024 Actual Old FCST New FCST Q1 Actual Q2-4 FCST Orders Received 2,630.7 2,200.0 2,230.0 - 400.7 + 30.0 446.3 1,783.7 Revenue 2,129.3 2,310.0 2,290.0 + 160.7 - 20.0 488.4 1,801.6 Business Profit 143.1 145.0 145.0 + 1.9 - 20.5 124.5 [Margin] [6.7%] [6.3%] [6.3%] [- 0.3pt] [-] [4.2%] [6.9%] Profit Before Tax 107.5 115.0 115.0 + 7.5 + - 16.8 98.2 [Margin] [5.0%] [5.0%] [5.0%] [-] [-] [3.4%] [5.5%] 88.0 82.0 82.0 - 6.0 - 4.2 77.8 [Margin] [4.1%] [3.5%] [3.6%] [- 0.5pt] [-] [0.9%] [4.3%] After-tax ROIC 8.0% 6.9% 6.9% - 1.1pt - - - 150.81 140.00 - - - 143.79 145.00 US dollar-based transaction (B$) 1.94 2.50 2.48 + 0.54 - 0.02 0.52 1.96 Chg. vs. FY24 Chg. vs. Old FCST FY2025 Forecast and Progress Profit Attributable to Owners of Parent Weighted-average exchange rates (USD/JPY) 16 2 Forecasts for FY2025 -Summary- The Forecasts incorporate the impact of U.S. Tariff Policy The FX rate assumption from the second quarter onward has been revised to 145 yen, while the full-year profit forecast remains unchanged from May ※ The amount of foreign currency that affects business profits due to exchange rate fluctuations. Calculated by deducting dollar denominated purchases from dollar denominated revenue of Kawasaki Heavy Industries, Ltd, Kawasaki Railcar manufacturing Co., Ltd., and Kawasaki Motors, Ltd. (to include foreign currency denominated revenue of loss provisions). See page 51 for the breakdown of these figures by segment. ※
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 17 -18.0 145.0 + 17.6 + 8.3 - 15.2 + 0.5 + 6.8 145.0 Forecast in May FY2025 Business Profit Effects of FX rates Cost Increase Due to U.S. Tariff Policy Change in share of profit(loss) of investments accounted for using equity method ±0.0 billion yen Forecast in August FY2025 Business Profit ※1 The figures for each factor of increase or decrease are approximate values calculated by our company based on certain criteria. The effects of FX rates are calculated for USD and EUR only; the impact of fluctuations in other currencies is included in “Change in revenue mix, SG&A expenses, and others.” ※2 The assumed reciprocal tariff rates with the U.S. are 15% for Japan, 19% for Thailand and Indonesia, and 20% for Taiwan. Temporary costs such as tariffs borne by our company are excluded from the total if they are 100% transferable to our business partners under contractual agreements Exchange Assumption USD/JPY 140 EUR/JPY 155 Exchange Assumption USD/JPY 145 EUR/JPY 165 2 Change in revenue Tariff Cost Pass-Through Segment Amount Aerospace Systems ▲1.1 Rolling Stock ー ES＆M ▲0.0 Precision Machinery & Robot ▲1.1 PS&E ▲15.7 計 ▲18.0 Forecasts for FY2025 -Details of change in business profit- Primarily reflects the impact of declining U.S. leisure demand in PS&E The impact of increased in costs due to U.S. tariff policy and decreased in sales due to market conditions was offset by price strategies, effective control of fixed costs, and yen’s depreciation Change in revenue mix, SG&A Expenses, and Others
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Orders Received Revenue Business Profit FY2024 FY2025 Forecast FY2024 FY2025 Forecast FY2024 FY2025 Forecast Actual Old FCST New FCSTChange Actual Old FCST New FCST Change Actual Old FCST New FCST Change Aerospace Systems 882.8 640.0 690.0 + 50.0 567.8 640.0 640.0 - 55.8 48.0 56.0 + 8.0 Rolling Stock 251.5 110.0 110.0 - 222.3 220.0 220.0 - 8.4 8.0 9.0 + 1.0 542.0 430.0 440.0 + 10.0 398.1 440.0 450.0 + 10.0 44.2 50.0 57.0 + 7.0 Precision Machinery & Robot 249.2 260.0 270.0 + 10.0 241.5 250.0 260.0 + 10.0 7.0 13.0 14.0 + 1.0 Powersports & Engine 611.6 660.0 620.0 - 40.0 609.3 660.0 620.0 - 40.0 47.8 48.0 30.0 - 18.0 Ohters 93.3 100.0 100.0 - 90.1 100.0 100.0 - 5.2 5.0 5.0 - Eliminations and corporate ※ - - - - - - - - - 25.6 - 27.0 - 26.0 + 1.0 Total 2,630.7 2,200.0 2,230.0 + 30.0 2,129.3 2,310.0 2,290.0 - 20.0 143.1 145.0 145.0 - (billion yen) Energy Solution & Marine Engineering 18 2 ※ “Eliminations and corporate” includes some expenses incurred at Head Office which were not allocated to each industry segment for internal reporting Forecasts for FY2025 -Segment- Aerospace Systems and ES&M have been revised up due to improved profitability from changes in FX rate assumptions and effective control of fixed costs PS&E have been revised down due to the impact of U.S. tariffs and decreased in sales based on the dampened consumer sentiment, despite recovery from recalls and production delays on last year 1 2 2 1 1 2 Eliminations and corporate※
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 19 Intentionally blank slide
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 20 Details by segment 3
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved - 4.2 - 8.9 - 4.6 4.8 0.8 - 6.0 23.8 - 10.3 50.9 55.2 - 10.3 14.8 - 15.0 55.8 56.0 FY21 FY22 FY23 FY24 FY25 70.0 63.4 80.2 104.9 101.5 228.1 285.4 315.9 462.8 538.5 298.2 348.8 396.1 567.8 640.0 FY21 FY22 FY23 FY24 FY25 21 FCST in May 640.0 Orders received (billion yen) Revenue (billion yen) Business Profit (billion yen) FY2025.Q1（vs. FY2024.Q1） 3 FY2025 forecast（vs. Forecast in May） Increased due to an increase in MOD※ and commercial aircraft engines Orders received +¥10.7 Bil. Decreased due to a decrease in MOD and Boeing Revenue -¥3.3 Bil. Decreased due to lower revenue, higher fixed costs associated with MRO, and increased shipments of newly manufactured commercial aircraft engines Business profit -¥4.0 Bil. Revised upward due to an increase in MOD Orders received +¥50.0 Bil. Expected to remain at the same level due to a decline in commercial aircraft engines, despite a change in the assumed exchange rate Revenue ±¥0.0 Bil. Revised upward due to improved profitability resulting from changes in the FX rate assumption and effective control of fixed costs Business profit +¥8.0 Bil. FCST in May 48.0 Details by segment -Aerospace Systems- ※The Ministry of Defense FCST in May 640.0 Note: Darker areas in the graphs represent the Q1 and lighter areas represent the Q2-Q4 cumulative total 37.4 60.4 118.7 88.2 98.9 345.8 285.0 573.8 794.6 591.1 383.3 345.5 692.6 882.8 690.0 FY21 FY22 FY23 FY24 FY25
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved - 1.7 4.8 + 0.2 - 1.1 - 1.4 0.8 22 Appendix Details of change in Business Profit(Loss) (billion yen)Effects of FX rates ※ Change in revenue Change in product mix and other factors Change in SG&A expenses 3 Number of aircraft component parts sold to Boeing (Units) Number of aircraft engine component parts sold (Units) Number of aircraft engine component parts sold to Rolls-Royce is not disclosed※ including the impact of revaluation of refund liabilities denominated in foreign currencies related to the in-service issues of PW1100G-JM Engines(+5.2 bil.yen). Details by segment -Aerospace Systems- FY’24 FY’25 Change YoYQ1 Full year Q1 767 5 19 7 + 2 777 5 19 4 - 1 777X 2 5 0 - 2 787 10 58 5 - 5 FY’24 FY’25 Change YoYQ1 Full year Q1 V2500 5 20 3 - 2 PW1100G 165 681 134 - 31 FY’24 Q1 FY’25 Q1 (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q1 Actual Q1 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q2-4 FCST Orders Received 88.2 98.9 + 10.7 882.8 640.0 690.0 - 192.8 + 50.0 591.1 Aerospace 54.3 65.1 + 10.7 699.5 455.0 500.0 - 199.5 + 45.0 434.9 Aero Engine 33.9 33.8 - 0.0 183.3 185.0 190.0 + 6.7 + 5.0 156.2 Revenue 104.9 101.5 - 3.3 567.8 640.0 640.0 + 72.2 - 538.5 Aerospace 71.3 65.5 - 5.8 399.9 465.0 465.0 + 65.1 - 399.5 Aero Engine 33.6 36.0 + 2.4 167.8 175.0 175.0 + 7.2 - 139.0 Business Profit 4.8 0.8 - 4.0 55.8 48.0 56.0 + 0.2 + 8.0 55.2 [Margin] [4.6%] [0.8%] [ｰ 3.8pt] [9.8%] [7.5%] [8.8%] [ｰ 1.0pt] [+ 1.3pt] [10.3%]
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 56.4 49.0 51.1 75.3 45.5 56.8 58.4 88.5 56.8 75.3 69.1 106.1 71.3 82.6 83.8 162.1 65.5 13.6 14.2 20.3 17.9 17.9 24.6 35.1 21.7 23.3 - 26.3 37.2 54.5 33.6 46.5 36.5 51.1 36.0 70.0 63.2 71.5 93.3 63.4 81.5 93.5 110.2 80.2 48.9 106.3 160.6 104.9 129.1 120.3 213.3 101.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Aerospace Aero Engines - 4.2 - 3.3 - 1.8 - 0.8 - 8.9 5.9 16.7 1.1 - 4.6 17.1 20.5 4.8 20.5 3.9 26.4 0.8 - 6.1% - 5.4% - 2.6%- 0.9% - 14.1% 7.3% 17.9% 1.1% - 5.8% 16.1% 12.8% 4.6% 15.9% 3.3% 12.4% 0.8% 23 3 -98.1% FY2021 FY2022 FY2023 FY2024 Details by segment -Aerospace Systems- Revenue(billion yen) Business Profit(billion yen) -48.0 FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved ⚫ Preparation for business expansion 24 3 Market Overview ⚫ Commercial business – Air passenger demand shifted from recovery to growth phase, and demand for both aircraft and engines are increasing ⚫ MOD business – Demand growth and profitability improvement are expected due to Japan's defense reinforcement policy About the PW1100G-JM Engine Program which we participate through IAE※1 The engines have been experiencing significant operational issues, and several engines are expected to be removed from the aircraft (A320neo) for inspection and maintenance over the next few years to resolve the issue. Many aircraft are parked on the ground because it takes 250 to 300 days to unload and install the engines. In FY23, the estimated future loss was recorded in a lump-sum※2, and there is no change at present ※3 Our press releases about this matter https://global.kawasaki.com/en/corp/ir/library/pdf/etc_231026-1e.pdf https://global.kawasaki.com/news_230913-1e.pdf ※1 International Aero Engines, LLC ※2 Recorded lump-sum loss (58 bil. yen in terms of business profit and loss in FY23 Jul-Sep). ※3 The effect of revaluation due to exchange rate fluctuations is excluded Specific Efforts – Arranging supply chain and production system for production increase – Improving productivity and operational efficiency to acquire new business opportunities – Steady promotion of existing projects of development and mass production for MOD aircrafts and helicopters Strengthening activities related to defense business – Promoting efforts Seven focal areas to strengthen defense capabilities Helicopter Arrangement Service “Z-Leg” Exhibited at Disaster Preparedness Event (April 26–27, Kobe City, Hyogo) KJ300 Turbofan Engine Standoff electronic warfare aircraft 1. Integrated air and missile defense capabilities 2. Stand-off defense capabilities 3. Cross-domain operation capabilities 4. Command and control and intelligence- related functions 5. Mobile deployment capabilities 6. Sustainability and resiliency 7. Unmanned defense capabilities 1 2 3 4 5 6 7 Source:DEFENSE OF JAPAN 2020 Prototype 3. Contract Scheduled for Completion in FY2026 Details by segment -Aerospace Systems- ⚫ Promotion of technology strategies based on market trends – R&D, including the use of civilian technology in defense fields – Utilization of Green Innovation fund of government for development of carbon-free technology
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 25 3 Orders received (billion yen) Revenue (billion yen) Business Profit (billion yen) Decreased from the same period last year, which included large-scale domestic orders Increased due to an increase in domestic and the U.S. Improved due to an increase in revenue Same as above Revised upward due to improved profitability resulting from effective control of fixed costs and other measures FY2025.Q1（vs. FY2024.Q1） FY2025 forecast（vs. Forecast in May） Details by Segment - Rolling Stock - Orders received -¥2.2 Bil. Revenue +¥11.4 Bil. Business profit +¥5.1 Bil. Orders received ±¥0.0 Bil. Revenue ±¥0.0 Bil. Business profit +¥1.0 Bil. Expected to remain at the same level 9.3 11.7 16.4 17.0 14.8 62.1 301.5 72.3 234.5 95.2 71.5 313.2 88.7 251.5 110.0 FY21 FY22 FY23 FY24 FY25 FCST in May 110.0 28.7 26.4 43.5 43.8 55.2 97.8 105.5 152.4 178.4 164.8 126.6 131.9 195.9 222.3 220.0 FY21 FY22 FY23 FY24 FY25 FCST in May 220.0 - 0.2 - 0.1 - 0.0 - 1.4 3.6 2.4 1.5 3.7 9.8 5.4 2.2 1.3 3.7 8.4 9.0 FY21 FY22 FY23 FY24 FY25 FCST in May 8.0 Note: Darker areas in the graphs represent the Q1-Q3 and lighter areas represent the Q4 cumulative total
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved - 0.7 + 0.8 - 0.1 ▲ 1.4 5.1 3.6 26 Appendix Revenue in components, overhaul and after-sales service(billion yen) Effects of FX rates Change in revenue Change in product mix and other factors Change in SG & A expenses Details of change in Business Profit(Loss) (billion yen) 3 Progress of the R211 Project for New York Subway in the U.S. (as of the end of June ’25) Details by segment - Rolling Stock - ⚫ Base contract : Delivered 515 cars out of 535 The last delivery is scheduled in FY2025 ⚫ Option1 contract : Delivered 70 cars out of 640 ⚫ Option2 contract : Received an order of 435 cars in Jan. ‘25 29.1 26.6 33.1 36.7 35.0 FY21 FY22 FY23 FY24 FY25 (FCST) (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q1 Actual Q1 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q2-4 FCST Orders Received 17.0 14.8 - 2.2 251.5 110.0 110.0 - 141.5 - 95.2 Domestic & Asia 15.1 13.4 - 1.7 251.5 103.0 103.0 - 148.5 - 89.6 North America 1.9 1.4 - 0.5 0.0 7.0 7.0 + 7.0 - 5.6 Revenue 43.8 55.2 + 11.4 222.3 220.0 220.0 - 2.3 - 164.8 Domestic & Asia 9.4 17.6 + 8.2 222.3 78.0 78.0 - 144.3 - 60.4 North America 34.3 37.5 + 3.2 0.0 142.0 142.0 + 142.0 - 104.5 Business Profit (Loss) - 1.4 3.6 + 5.1 8.4 8.0 9.0 + 0.6 + 1.0 5.4 [Margin] [- 3.4%] [6.6%] [+ 9.9pt] [3.8%] [3.6%] [4.1%] [+ 0.3pt] [+ 0.4pt] [3.3%] FY’24 Q1 FY’25 Q1
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 18.5 23.3 24.2 26.1 18.4 23.9 23.8 28.6 15.0 13.9 28.3 23.9 9.4 13.8 24.8 22.0 17.6 10.2 5.4 7.3 11.3 8.0 8.2 9.9 10.9 28.4 26.7 23.2 36.1 34.3 29.3 30.8 57.5 37.5 28.7 28.8 31.5 37.5 26.4 32.1 33.7 39.5 43.5 40.6 51.6 60.1 43.8 43.2 55.6 79.5 55.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Domestic & Asia North America - 0.2 1.5 1.6 - 0.9 - 0.1 0.1 0.8 0.5 - 0.0 0.3 2.3 1.1 - 1.4 3.1 2.4 4.2 3.6 - 0.7% 5.3% 5.2% - 2.5% - 0.6% 0.3% 2.5% 1.5% - 0.0% 0.8% 4.5% 1.9% - 3.4% 7.3% 4.4% 5.4% 6.6% 3 27 Details by segment - Rolling Stock - Revenue(billion yen) Business Profit(billion yen) FY2021 FY2022 FY2023 FY2024 FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved ⚫ Achieving quality levels trusted by customers – Reductions of spoilage and repair costs – Further promotion of Kawasaki Production System ⚫ Expansion of components sales, after-sales service, and maintenance business – Promotion of remote track monitoring service for North American market – Promotion of train condition monitoring equipment for domestic market 28 3 ⚫ Compliance with delivery schedules for overseas projects Rolling stock for Dhaka Mass Transit Company Limited R211 subway car for New York City Transit (MTA) Details by segment - Rolling Stock - Market Overview Specific Efforts ⚫ Domestic Market – Resumption of investment in rolling stock due to recovery of inbound ⚫ Overseas Market – Demand is expected to increase due to the development of urban transportation to reduce congestion in large cities ⚫ Supply chain Risk – Prolonged procurement of equipment, mainly electronic components, requires attention ⚫ Medium to long-term forecast – Stable global growth is expected, including traffic development in overseas markets and the demand for infrastructure in line with economic development in Asia Dhaka MRT Line-6 ‣Full delivery (All 144 cars of 24 trains was delivered to the customer in FY2024) ‣The base facilities will be delivered in FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 29 3 Decreased due to fewer orders for LPG/ammonia carriers YoY, despite new orders such as transport equipment for power plants -¥35.2 Bil. +¥16.5 Bil. +¥3.7 Bil. Increased due to an increase in power generation facilities +¥10.0 Bil. Revised upward due to an increase in MOD +¥10.0 Bil. Revised upward due to improved profitability of individual projects and effective control of fixed costs+¥7.0 Bil. Details by segment - Energy Solution & Marine Engineering - FY2025.Q1（vs. FY2024.Q1） FY2025 forecast（vs. Forecast in May） Orders received Revenue Business profit Orders received Revenue Business profit Orders received (billion yen) Revenue (billion yen) Business Profit (billion yen) Increased due to growth across various segments, including Energy and Ship & Offshore Structure Improved due to an increase in revenue 60.9 124.5 102.3 121.8 86.6 282.6 314.4 299.3 420.1 353.4 343.5 439.0 401.6 542.0 440.0 FY21 FY22 FY23 FY24 FY25 FCST in May 430.0 70.3 63.5 70.7 80.1 96.6 226.9 251.0 282.4 317.9 353.4 297.3 314.5 353.2 398.1 450.0 FY21 FY22 FY23 FY24 FY25 FCST in May 440.0 0.4 0.0 5.8 5.9 9.7 - 11.3 3.9 26.0 38.3 47.3 - 10.8 3.9 31.9 44.2 57.0 FY21 FY22 FY23 FY24 FY25 FCST in May 50.0 Note: Darker areas in the graphs represent the Q1-Q3 and lighter areas represent the Q4 cumulative total
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 5.9 - 0.2 + 2.8 + 2.3 - 0.1 - 1.1 9.7 Effects of FX rates Change in revenue Change in product mix and other factors Change in SG & A expenses Revenue of municipal waste incineration plants 30 3 Change in share of profit(loss) of investments accounted for using equity method Details by segment - Energy Solution & Marine Engineering - Appendix Details of change in Business Profit(Loss) (billion yen) (billion yen) Revenue of major products in the energy business above：components below：after-sales service 32.1 33.3 38.4 41.4 46.0 36.4 39.7 45.9 50.7 37.568.5 73.0 84.3 92.1 83.5 FY21 FY22 FY23 FY24 FY25 (billion yen) 40.2 33.2 46.4 62.1 60.0 41.6% 49.4% 47.1% 33.1% 31.7% FY21 FY22 FY23 FY24 FY25 Net sales O&M ratio to net sales FCST (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q1 Actual Q1 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q2-4 FCST Orders Received 121.8 86.6 - 35.2 542.0 430.0 440.0 - 102.0 + 10.0 353.4 56.5 81.5 + 25.0 354.4 330.0 340.0 - 14.4 + 10.0 258.5 Ship & Offshore Structure 65.3 5.1 - 60.2 187.6 100.0 100.0 - 87.6 - 94.9 Revenue 80.1 96.6 + 16.5 398.1 440.0 450.0 + 51.9 + 10.0 353.4 54.8 65.4 + 10.6 306.8 320.0 330.0 + 23.2 + 10.0 264.6 Ship & Offshore Structure 25.3 31.2 + 5.8 91.2 120.0 120.0 + 28.8 - 88.8 Business Profit 5.9 9.7 + 3.7 44.2 50.0 57.0 + 12.8 + 7.0 47.3 [Margin] [7.5%] [10.1%] [+ 2.6pt] [11.1%] [11.4%] [12.7%] [+ 1.5pt] [+ 1.3pt] [13.4%] 6.2 6.1 - 0.1 22.9 24.5 25.0 + 2.1 + 0.5 18.9 Energy, Plant & Marine Machinery Energy, Plant & Marine Machinery Share of profit (loss) of investments accounted for using equity method FY’24 Q1 FY’25 Q1
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 51.0 47.1 53.8 80.3 43.6 52.6 58.5 79.5 47.9 55.8 61.6 95.1 54.8 60.5 74.7 116.7 65.4 19.3 13.5 16.9 15.1 19.8 18.3 19.2 22.6 22.8 21.1 24.8 23.7 25.3 19.2 26.2 20.3 31.2 70.3 60.6 70.8 95.5 63.5 70.9 77.8 102.1 70.7 77.0 86.5 118.8 80.1 79.8 100.9 137.1 96.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Energy, Plant & Marine Machinery Ship & Offshore Structure 0.4 - 6.0 - 4.0 - 1.0 - 0.0 3.1 6.2 - 5.4 5.8 2.6 8.1 15.2 5.9 6.0 13.0 19.1 9.7 0.6% - 10.0% - 5.7% - 1.1% - 0.0% 4.4% 8.1% - 5.4% 8.3% 3.5% 9.4% 12.8% 7.5% 7.6% 12.9% 14.0% 10.1% 31 3 FY2021 FY2022 FY2023 FY2024 Details by segment - Energy Solution & Marine Engineering - Revenue(billion yen) Business Profit(billion yen) FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved ✓ World-Class power generation efficiency of 51.0% ✓ Convertible to hydrogen co-Firing (Up to 30% by Volume) ✓ Proven reliability through years of stable operation ✓ Comprehensive after-sales support Market Overview 3 ⚫ Energy, Plant & Marine Machinery ⚫ Ship & Offshore Structure Overseas – Fuel transition from coal to natural gas in emerging countries – Increasing hydrogen-related orders and inquiries in developed countries Commercial ships – Ship prices continue to be high, affected by the soaring cost of materials and equipment – Ship prices continue to be high, affected by the soaring cost of materials and equipment Submarines and others Stable orders for submarines are expected Risks – Stable supply of fuel gas required for operation of power generation facilities – Concerns about pressure on profits due to persistently high raw material, equipment, and fuel costs Carbon neutrality Inquiries and requests for cooperation are increasing regarding transition solutions associated with the return to LNG, as well as decarbonization solutions such as KCC※ ⚫ Entire segment Contribution to realizing a low-carbon and decarbonized society Domestic – Growth in demand for power supply to data centers, mainly for emergency use – Continued demand for renewal of aging waste incineration plants Specific Efforts 32 ※ Kawasaki CO2 Capture: CO2 Separation and Capture system Solutions for decarbonized society Topic Order received for two gas engines with hydrogen co- firing retrofit capability Key Order Points Topic Construction Started on Domestic Base for Commercial Demonstration of Liquefied Hydrogen Supply Chain – World’s First commercial-scale facility equipped with five key systems for Hydrogen Supply Chain Deployment "Facility Completion Image" Courtesy of: Japan Suiso Energy, Ltd. Earned Strong Trust and Recognition from Customers “KG-18-T” gas engine Hydrogen Gas Supply System Liquefied Hydrogen Truck Loading Facilities Liquefied Hydrogen Storage Tank Hydrogen Liquefaction System Marine Loading Facilities Details by segment - Energy Solution & Marine Engineering -
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 33 3 +¥2.2 Bil. +¥4.2 Bil. +¥2.4 Bil. +¥10.0 Bil. Same as above +¥10.0 Bil. Revised upward due to higher revenue and effective control of fixed costs +¥1.0 Bil. Details by segment - Precision Machinery & Robot - FY2025.Q1（vs. FY2024.Q1） FY2025 forecast（vs. Forecast in May） Orders received Revenue Business profit Orders received Revenue Business profit Orders received (billion yen) Revenue (billion yen) Business Profit (billion yen) Increased due to an increase in hydraulic machinery for Chinese construction machinery market Increased due to an increase in hydraulic machinery for Chinese construction machinery market and in robots for semiconductor manufacturing equipment Improved due to an increase in revenue and improvement of equity earnings Revised upward due to an increase in hydraulic machinery for construction machinery market Note: Darker areas in the graphs represent the Q1-Q3 and lighter areas represent the Q4 cumulative total 65.1 67.9 54.0 61.6 63.9 206.6 194.0 159.3 187.6 206.1 271.8 262.0 213.3 249.2 270.0 FY21 FY22 FY23 FY24 FY25 FCST in May 260.0 57.6 52.6 49.3 52.6 56.9 195.0 200.0 178.6 188.8 203.1 252.6 252.6 227.9 241.5 260.0 FY21 FY22 FY23 FY24 FY25 FCST in May 250.0 4.6 1.4 - 2.5 - 0.1 2.3 9.3 7.2 0.6 7.1 11.7 13.9 8.7 - 1.9 7.0 14.0 FY21 FY22 FY23 FY24 FY25 FCST in May 13.0
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 0.1 - 0.6 +0.9 +1.8 +0.5 - 0.2 2.3 Details of change in Business Profit(Loss) (billion yen) 34 Revenue of hydraulic components to China Effects of FX rates Change in revenue Change in product mix and other factors Change in SG&A expenses 3 Change in share of profit(loss) of investments accounted for using equity method Revenue of robots by segment※ FY24 FY25 Change Automobile assembly and painting 5.7 41.8 5.8 *40.0 + 0.1 - 1.8 Semiconductor 7.4 34.8 9.0 *38.0 + 1.5 + 3.2 General robots for industrial use and others 5.2 27.4 5.1 *32.0 - 0.1 + 4.6 Total 18.4 104.1 19.9 *110.0 + 1.5 + 5.9 Appendix (billion yen) above： Q1 below： Full Year Details by segment - Precision Machinery & Robot - ※Including intercompany revenue (billion yen) (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q1 Actual Q1 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q2-4 FCST Orders Received 61.6 63.9 + 2.2 249.2 260.0 270.0 + 20.8 + 10.0 206.1 36.0 43.6 + 7.6 147.5 160.0 170.0 + 22.5 + 10.0 126.4 Robotics 25.6 20.2 - 5.3 101.7 100.0 100.0 - 1.7 - 79.8 Revenue 52.6 56.9 + 4.2 241.5 250.0 260.0 + 18.5 + 10.0 203.1 35.5 38.9 + 3.3 146.8 150.0 160.0 + 13.2 + 10.0 121.1 Robotics 17.0 17.9 + 0.9 94.6 100.0 100.0 + 5.4 - 82.1 Business Profit (Loss) - 0.1 2.3 + 2.4 7.0 13.0 14.0 + 7.0 + 1.0 11.7 [Margin] [- 0.3%] [4.1%] [+ 4.3pt] [2.9%] [5.2%] [5.4%] [+ 2.4pt] [+ 0.2pt] [5.8%] - 0.4 0.1 + 0.5 - 1.5 0.0 0.0 + 1.5 - - 0.1 Hydraulic Components & Systems Hydraulic Components & Systems Share of profit (loss) of investments accounted for using equity method FY’24 Q1 FY’25 Q1 18.1 9.5 9.6 10.4 13.6 50.6 42.9 31.4 36.6 68.7 52.4 41.0 47.0 'FY'21 'FY'22 'FY'23 'FY'24 'FY'25 Slightly increase above： Q2-Q4 below： Q1 * Forecast
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 40.5 37.9 40.4 44.0 32.1 37.1 38.6 44.9 33.0 33.8 36.2 38.4 35.5 35.5 36.3 39.3 38.9 17.0 22.6 20.7 29.0 20.4 27.8 22.8 28.5 16.2 19.8 19.4 30.8 17.0 21.2 23.0 33.3 17.9 57.6 60.6 61.2 73.1 52.6 65.0 61.5 73.5 49.3 53.7 55.6 69.2 52.6 56.8 59.4 72.6 56.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Hydraulic Components & Systems Robotics 4.6 3.1 3.9 2.1 1.4 4.0 1.9 1.3 - 2.5 - 2.0 0.2 2.4 - 0.1 2.0 1.3 3.7 2.3 8.0% 5.3% 6.4% 3.0% 2.8% 6.2% 3.1% 1.8% - 5.2% - 3.9% 0.5% 3.5% - 0.3% 3.6% 2.3% 5.2% 4.1% 35 3 Details by segment - Precision Machinery & Robot - Business Profit(billion yen) Revenue(billion yen) FY2021 FY2022 FY2023 FY2024 FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Electric Hydraulic System for Construction Machinery Strategic Challenges in the Robotics ⚫ Measures for the development of hydraulic business 36 Market Overview Specific Efforts 3 Development of new products and market for construction machinery – Expanding markets through advanced control and development capabilities for electrification and automation Strengthening hydrogen / MOD business – Development of hydrogen compressors, fuel cell systems and other products – Expansion of MOD related products inside the company Strengthening the after sales business – Expansion of after-sales services and development of the sales network, leveraging past sales performance ⚫ Construction machinery – In China, demand, previously sluggish due to the prolonged real estate slump, has recovered in both domestic and export markets, especially for large- scale mining equipment and units exported to Africa – Outside China, the European market is showing signs of recovery – Electrification and automation/autonomy are expected to progress, driven by environmental regulations and labor shortages ⚫ Robotics – General purpose robots Demand remains sluggish due to U.S. tariff policies and China’s economic slowdown, but automation demand is steadily rising, driven by increasing labor costs and labor shortages – Robots for semiconductors The decline in demand in the semiconductor memory market bottomed out and demand is showing signs of recovery from the second half of FY2024, driven by new growth areas such as AI-related fields Feature on hinotori Included in Project Topics on Page 44 ※ hinotori is a trademark of Medicaroid Corporation Pickup!! Details by segment - Precision Machinery & Robot - Concentrated investment in high value-added areas – Development of supply system for full-scale recovery of semiconductor market – Expansion of new fields (Vacuum process, Back-end process, EFEM, factory automation, etc.) Strengthening the medical robot business – Spreading the ”hinotoriTM” (with Medicaroid and Sysmex) – Differentiation by remote control technology Strengthening brand – Promotion of open strategy and expansion of collaboration and co-creation – Promotion of commercialization in the field of social robots
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 37 3 Increased due to higher shipments of four-wheelers for North America, despite the impact of yen appreciation+¥15.5 Bil. Decreased due to yen appreciation and higher fixed costs associated with increased production investment, despite increased revenue -¥3.4 Bil. +¥40.0 Bil. +¥18.0 Bil. Qualitative information and graph are omitted because this segment is mainly engaged in estimated production, and orders received are generally the same as revenue Details by segment - Powersports & Engine - FY2025.Q1（vs. FY2024.Q1） FY2025 forecast（vs. Forecast in May） Revenue Business profit Revenue Business profit Revenue (billion yen) Business Profit (billion yen)Orders received (billion yen) Revised downward due to lower revenue and deteriorating profitability caused by the impact of U.S. tariff policy Revised downward due to weakening demand in the U.S. powersports, despite changes in FX rate assumptions Note: Darker areas in the graphs represent the Q1-Q3 and lighter areas represent the Q4 cumulative total FCST in May 660.0 113.4 126.0 143.9 144.7 160.3 334.4 465.1 448.4 464.6 459.7 447.9 591.1 592.4 609.3 620.0 FY21 FY22 FY23 FY24 FY25 14.9 12.8 14.3 11.5 8.0 22.6 58.6 33.7 36.3 22.0 37.5 71.5 48.0 47.8 30.0 FY21 FY22 FY23 FY24 FY25 FCST in May 48.0
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Details of change in Business Profit (billion yen) - 1.9 11.5 + 7.8 - 7.9 - 1.4 8.0 38 Wholesale volume by region (thousand units) Effects of FX rates Change in revenue Change in SG & A expenses 3 Change in product mix and other factors Details by segment - Powersports & Engine - Appendix FY’24 Q1 FY’25 Q1 Change FY’25(FCST) Developed countries Japan 6 10 + 3 North America 23 23 + 0 Europe 21 22 + 0 Others※ 1 2 + 0 Total 53 59 + 5 230 Emerging countries Philippines 47 46 - 0 Indonesia 7 3 - 3 Latin America 2 4 + 1 Others※ 6 8 + 2 Total 63 63 - 0 255 Four-wheeler ・PWC North America and Others 11 19 + 7 80 Note : The following table shows the trend of YoY changes in motorcycles of developed and emerging countries and regions included in "Others" Australia： China： Thailand： FY’24 Q1 FY’25 Q1 (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q1 Actual Q1 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q2-4 FCST Revenue 144.7 160.3 + 15.5 609.3 660.0 620.0 + 10.7 - 40.0 459.7 61.1 64.3 + 3.2 245.3 243.0 225.0 - 20.3 - 18.0 160.7 23.4 24.8 + 1.3 99.2 97.0 95.0 - 4.2 - 2.0 70.2 34.7 46.1 + 11.4 169.0 227.0 205.0 + 36.0 - 22.0 158.9 25.4 24.9 - 0.4 95.5 93.0 95.0 - 0.5 + 2.0 70.1 Business Profit 11.5 8.0 - 3.4 47.8 48.0 30.0 - 17.8 - 18.0 22.0 [Margin] [8.0%] [5.0%] [ｰ 2.9pt] [7.9%] [7.3%] [4.8%] [ｰ 3.0pt] [- 2.4pt] [4.8%] Motorcycles for developed contries Motorcycles for emerging market Utility Vehicles, ATVs & PWC General-purpose gasoline engines
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 14.9 4.2 10.9 7.3 12.8 15.1 25.6 17.8 14.3 8.8 8.8 16.0 11.5 3.4 13.8 19.1 8.0 13.1% 4.5% 10.7% 5.3% 10.2% 10.9% 17.3% 10.0% 9.9% 7.2% 6.5% 8.5% 8.0% 3.1% 8.4% 10.0% 5.0% 113.4 93.2 102.7 138.3 126.0 139.1 148.5 177.3 143.9 123.1 137.2 187.9 144.7 108.5 163.9 192.0 160.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 39 3 Details by segment - Powersports & Engine - Business Profit(billion yen) Revenue(billion yen) FY2021 FY2022 FY2023 FY2024 FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved ⚫ Expansion of the four-wheeler business and electrification – Investment in development to enhance product competitiveness – Quick response to the external environment by utilizing two plants in North America (US and Mexico) – Launch of our first electric four-wheeler – Contributing to the realization of a carbon- neutral society by utilizing a wide range of options centered on electrification 40 Market Overview Specific Efforts 3 ⚫ Promoting business process re-engineering through DX – Achieving agile management through digitalization – Shortened development time and reduced development costs using digital technology ⚫ Cash flow Improvement – Improve FCF by strengthening profitability and maintaining appropriate inventory levels Supplying products in alignment with market trends – Continuous introduction of new models – Realize stable supply of products by flexibly changing production and sales plans based on sales conditions ⚫ U.S. (Motorcycles) – Despite a softening retail market, our market share remains strong ⚫ U.S. (Four-wheelers) – Market is expected to grow over the medium to long term, but sales of recreational models, which are susceptible to loan interest rates and fuel price increases, have softened – Market Share Expanded Through New Model Launches and Recovery from Recall Impact ⚫ U.S.(Common to both business above) – Additional tariffs raise concerns over weakening demand. ⚫ Europe – Despite a temporary retail slowdown following pre-regulation surge, we expanded market share through effective promotions and successful new models ⚫ Southeast Asia – Sports segment remains at low level, while recovering in some regions Kawasaki's First Electric Four-wheeler "NAV" Series Released Kawasaki’s First Turbocharged Off-Road Model: “TERYX4 H2 / TERYX5 H2” Released Details by segment - Powersports & Engine -
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 41 Shareholder Returns and Other information 4
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 60 100 120 60 60 70 35 0 40 90 50 150 150 25.9% 32.3% 43.5% 38.2% 34.6% 42.5% 31.3% 30.7% 28.4% 33.0% 28.5% 30.7% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 42 Dividend Policy 4 The medium- to long-term consolidated dividend payout ratio 30% IFRS Shareholder Returns Comprehensively considering the following points - future business forecasts, financial conditions such as free cash flow and debt-to-equity ratio, and other factors Stable dividends2 1 DPR 30% Dividend payout ratio Non- dividend Dividend for FY2025 Annual dividend per share will be 150 yen (dividend payout ratio 30.7%) – plan maintained
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Project Topics4 43 Steady Progress in Building a Liquefied Hydrogen Supply Chain ーAdvancing a Hydrogen Society Together with Strategic Partners ー Construction Started on Domestic Base for Commercial Demonstration of Liquefied Hydrogen Supply Chain Joint Study on the Construction Scheme for Liquefied Hydrogen Carriers In May 2025, a joint venture formed by Kawasaki, Taisei Corporation, and Toa Corporation commenced construction of a domestic base for the international hydrogen supply chain in the eastern Ogishima Area, Kawasaki City. This base will be the world’s first commercial-scale facility equipped with a liquefied hydrogen storage tank, marine loading facilities, hydrogen liquefaction system, hydrogen gas supply system, and liquefied hydrogen truck loading facilities. In June 2025, Kawasaki, Imabari Shipbuilding Co., Ltd., and Japan Marine United Corporation commenced a joint study to establish a construction framework for subsequent liquefied hydrogen carriers designed and built by Kawasaki. The study explores the effective utilization of each company’s assets—such as facilities and human resources—required for the construction of liquefied hydrogen carriers. "Facility Completion Image" Courtesy of: Japan Suiso Energy, Ltd. (Japanese text only) Press release Press release
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Q2 Q4 Q2 Q4 Q2 Q4 Q1 Project Topics The hinotori Surgical Robot System※ ー Update on Medicaroid's Business Development ー 4 44 ⚫ Medicaroid, the developer of hinotori , plans to achieve single-year profitability in FY2025 ⚫ hinotori is capable of covering over 90% of robot-assisted surgeries performed in Japan, and its installation base and number of surgical cases continue to grow steadily An application was filed as a CE-marked product under the Medical Device Regulation Successful demonstration of remote surgery between Europe and Japan Mar. 2025 Sales approval acquired in Malaysia Sep. 2024 Jun. 2025 Approval obtained for thoracic surgery (respiratory surgery) indication Apr.2024 90 Total Units Installed Cumulative number of cases 11000 + FY22 FY23 FY24 FY25 23000km one-way France （Strasbourg） Japan （Kobe） Halfway around the Earth! Made possibleby leveraging NTT Communications'high-speed and reliablenetworkinfrastructure Prof. Jacques Marescaux the director of the demonstration Prof. Marescauxperformed the world’s first remote surgery, known as “Operation Lindbergh” in 2001. A global authority in surgical technology research for over two decades “This achievement transcends mere technological advancement; it embodies a long- held vision. We are breaking down geographical barriers to deliver expert surgical care across the globe. This is the ultimate step toward achieving healthcare equity in surgery” ※ hinotori is a trademark of Medicaroid Corporation
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Japan faces low food self-sufficiency among developed nations, making sustainable agriculture and aquaculture urgent priorities. Kawasaki applies its expertise in water treatment and fluid control—gained from plant, ship building, and rolling stock development—to aquaculture solutions. ⚫ Developed MINATOMAÉ system, a sustainable, low- impact, closed-sea aquaculture system resistant to red tides and temperature changes ⚫ Unlock new aquaculture opportunities in coastal areas near ports that were previously unused for fish farming ⚫ Proposes new possibilities for aquaculture industries in waterfront regions Press release ※2 Based on trout salmon trials near Kawasaki’s Kobe Works using a 30 m³ closed pen at 60 kg/m³—4× conventional density. ▼Transferring trout salmon to the sea cage Project Topics The MINATOMAÉ Aquaculture Project ※1 ーSustainable Aquaculture Technology for Food Securityー 4 ▼Grow-out trial near Kawasaki’s Kobe Works pier Blocks external parasites and viruses Monitors seawater quality and farming conditions in real time Optimizes water flow and oxygen supply within the sea cage hat Makes the System Unique Achieves approx. 4x higher ※2 stocking density than conventional sea-surface aquaculture ※1 Fish cultivation and distribution in this project are supported by Maruha Nichiro Corporation 45 hy is Kawasaki in Aquaculture
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 1,594.7 1,641.3 1,488.4 1,500.8 1,725.6 1,849.2 2,129.3 2,290.0 3.7% 3.7% 4.1% 5.1% 4.4% 4.4% 4.4% 4.7% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 (FCST) Net Sales or Revenue (billion yen) Depreciation and Amortization ratio to net sales 66.9 70.4 55.6 77.6 96.3 133.7 141.1 154.0 59.0 61.2 61.2 76.9 77.3 80.9 93.4 107.0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 (FCST) CAPEX Depreciation and Amortization IFRS 46 4 IFRS Appendix - CAPEX, Depreciation and Amortization, R&D Expenses, Number of employees - FY2024 FY2025 FY2024 FY2025 Q1 Actual Q1 Actual Change Actual FCST Chg. Vs. FY24 CAPEX 33.9 33.0 - 0.9 141.1 154.0 + 12.9 21.1 24.4 + 3.3 93.4 107.0 + 13.6 R & D expenses 13.6 13.6 - 0.0 48.9 64.0 + 15.1 Number of Employees 40,640 43,680 + 3,040 Domestic 29,072 30,610 + 1,538 Overseas 11,568 13,070 + 1,502 (billion yen, persons) Depreciation and amortization
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 47 4 Appendix - Others - ⚫ Order received by quarter（billion yen) FY2023 FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Aerospace Systems 118.7 74.4 139.2 360.0 88.2 121.7 470.1 202.7 98.9 Aerospace 104.4 98.0 108.0 246.3 54.3 58.4 435.6 151.1 65.1 Aero Engine 14.2 -23.6 31.2 113.7 33.9 63.3 34.5 51.5 33.8 Rolling Stock 16.4 13.6 11.7 46.9 17.0 10.7 13.2 210.4 14.8 Energy Solution & Marine Engineering 102.3 116.0 62.8 120.4 121.8 89.2 217.4 113.5 86.6 Energy, Plant & Marine Machinery 94.7 93.2 58.2 112.5 56.5 88.4 97.6 111.7 81.5 Ship & Offshore Structure 7.5 22.7 4.5 7.8 65.3 0.7 119.7 1.7 5.1 Precision Machinery & Robot 54.0 49.0 54.6 55.7 61.6 63.0 61.2 63.4 63.9 Hydraulic Components & Systems 36.6 30.9 34.3 34.2 36.0 38.8 33.7 38.8 43.6 Robotics 17.3 18.1 20.2 21.4 25.6 24.1 27.4 24.5 20.2 Powersports & Engine 143.9 123.1 137.2 187.9 144.7 108.5 163.9 194.3 160.2 Others 21.7 27.0 23.5 22.1 23.3 45.1 0.5 24.2 21.7 Total 457.3 403.4 429.2 793.3 456.8 438.4 926.5 808.8 446.3
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 48 4 Appendix - Others - ⚫ Orders received and Revenue for Ministry of Defense（billion yen） FY2024 FY2025 FY2024 FY2025 Forecast Q1 Actual Q1 Actual Change Actual Old FCST New FCST Orders Received 24.8 38.0 + 13.2 774.7 400.0 460.0 - 314.7 + 60.0 Aircrafts and others 13.5 24.3 + 10.8 584.7 270.0 325.0 - 259.7 + 55.0 Aero Engines 1.2 3.7 + 2.5 38.9 30.0 32.0 - 6.9 + 2.0 Submarine & Naval propulsion 10.1 10.0 - 0.1 151.1 100.0 103.0 - 48.1 + 3.0 Revenue 72.5 71.5 - 1.0 400.8 470.0 470.0 + 69.2 - [Ratio to the company's total revenue] [16.3%] [14.7%] [18.8%] [20.3%] [20.5%] Aircrafts and others 46.7 41.2 - 5.5 280.6 328.5 328.5 + 47.9 - Aero Engines 4.2 3.6 - 0.6 25.4 31.5 31.5 + 6.1 - Submarine & Naval propulsion 21.6 26.7 + 5.1 94.8 110.0 110.0 + 15.2 - Chg. Vs. FY24 Chg. Vs. Old FCST
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved FY25 Q1 Received Orders Actual Delivery Year Order BacklogFY25 Q1 Actual FY25 Q2~ FY26 FY27～ Plan LPG Carrier 1 3 4 4 11 Submarine 1 1 2 Others Total 1 3 5 5 13 49 4 ※1 ※2 Appendix - Others - ⚫ Order Backlog （billion yen) ⚫ Order Backlog in Ship & Offshore (billion yen) ⚫ Ship Orders Received and Delivery Year (number of ships) ※ 1 Delivered in FY25 Q1 : 50,400GT ※ 2 Order Backlog : 554,400GT (Submarines are excluded) FY24 Q1 FY25 Q1 Actual Actual Change Aerospace Systems 1,027.7 1,282.7 + 254.9 Rolling Stock 476.2 479.5 + 3.3 726.3 812.6 + 86.3 Precision Machinery & Robot 92.6 98.3 + 5.7 Powersports & Engine - 2.1 + 2.1 Others 44.2 46.0 + 1.8 Total 2,367.2 2,721.6 + 354.3 Energy Solution & Marine Engineering 84.1 100.1 73.7 90.6 120.7 164.1 174.6 200.5 101.6 85.9 104.6 110.5 179.4 136.4 228.9 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 End of Q1 End of Q4
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 50 4 Appendix - Others - ⚫ Revenue by Region （billion yen) ⚫ FY2024 Q1 (billion yen) ⚫ FY2025 Q1 (billion yen) ※ Classified by country or region based on the customer's location. Japan USA Europe Asia Other Total Aerospace Systems 53.8 30.1 19.4 0.0 1.5 104.9 Rolling Stock 7.9 34.2 - 1.6 - 43.8 56.6 0.4 3.6 13.3 6.1 80.1 Precision Machinery & Robot 14.8 4.3 3.4 29.1 0.8 52.6 Powersports & Engine 8.8 75.7 28.5 19.5 12.0 144.7 Others 15.3 0.1 0.0 1.8 0.3 17.8 Total 157.5 145.0 55.0 65.6 20.9 444.2 [margin] 35.5% 32.7% 12.4% 14.8% 4.7% 100.0% Energy Solution & Marine Engineering Japan USA Europe Asia Other Total Aerospace Systems 49.5 34.7 15.5 0.0 1.7 101.5 Rolling Stock 16.3 36.9 - 1.9 - 55.2 70.5 0.0 5.9 10.5 9.6 96.6 Precision Machinery & Robot 14.8 4.5 3.7 32.8 0.9 56.9 Powersports & Engine 11.5 83.4 30.1 18.9 16.2 160.3 Others 14.9 0.0 0.1 2.0 0.4 17.6 Total 177.7 159.8 55.4 66.3 29.0 488.4 [margin] 36.4% 32.7% 11.4% 13.6% 5.9% 100.0% Energy Solution & Marine Engineering FY24 Q1 FY25 Q1 Actual Actual Change Japan 157.5 177.7 + 20.1 USA 145.0 159.8 + 14.8 Europe 55.0 55.4 + 0.4 Asia 65.6 66.3 + 0.7 Other 20.9 29.0 + 8.0 Total 444.2 488.4 + 44.2
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved FY2024 FY2025 Q1Actual Q1Actual Q2-4 FCST Aerospace Systems 0.16 0.19 0.87 Rolling Stock 0.07 0.03 0.08 USD 0.06 0.07 0.12 Precision Machinery & Robot 0.03 0.04 0.10 Powersports & Engine 0.17 0.19 0.79 Total 0.49 0.52 1.96 EUR 0.10 0.11 0.46 Energy Solution & Marine Engineering 51 4 Appendix - Others - ⚫ Amount of foreign currency that affects business profit and loss ※1 ⚫ Weighted-average Exchange Rates <Formulas for Calculating ROIC> After-tax ROIC = { Profit attributable for owners of parent + Interest expenses × (1－Tax rate)} ÷ Invested capital※2 ※3 Invested Capital ＝ Average net debt at beginning and end of period + average equity at beginning and end of period (billion USD / EUR) FY2023 actual 157.09 FY2024 actual 163.07 FY2025 Q1 actual 162.60 FY2025 forecast 165.00 ※1 The amount of foreign currency (only USD and EUR) that affects business profits due to exchange rate fluctuations. (Calculated by deducting foreign currency denominated purchases from foreign currency denominated revenue of Kawasaki Heavy Industries, Ltd, Kawasaki Railcar manufacturing Co., Ltd., and Kawasaki Motors, Ltd. (to include foreign currency denominated revenue of loss provisions)) (Ex) Business profit increases or decreases by 1 billion yen if the exchange rate changes to 1 yen weaker or stronger against USD when the foreign currency amount is 1 billion USD. ※2 Except for loss related to the in-service issues of PW1100G-JM engines. (EUR / JPY) ※2 ※2
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved