Interim report
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Listed company’s name: Kawasaki Heavy Industries, Ltd. Listed on: TSE (Prime Market), and NSE (Premier Market) Stock code: URL: https://global.kawasaki.com Representative: Yasuhiko Hashimoto, President and Chief Executive Officer Contact: Takashi Torii, Executive Officer, Group Manager, Corporate Communication Group Departmen t Tel: +81 3-3435-2130 Scheduled dates: Commencement of dividend payments: Holding of financial results presentation: Yes (for institutional investors, analysts and the press) 1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (April 1, 2025 - June 30, 2025) (1) Operating Results (Percentages indicate year-on-year changes.) Three months ended June 30, 2025 Three months ended June 30, 2024 Three months ended June 30, 2025 Three months ended June 30, 2024 (2) Financial Condition As of June 30, 2025 As of March 31, 2025 2. Dividends Note: Revisions to the most recently announced dividend forecast: None In the Company’s articles of incorporation, the dates of record are set as the last day of the fiscal second quarter and the last day of the fiscal year. 3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2026 (April 1, 2025 - March 31, 2026) (Percentages indicate year-on-year changes.) %%% % y e n Full year 7.5 1.3 7.0 (6.8) Note: Revisions to the most recently announced earnings forecast: Yes 150.0 Dividend per share 70.0 75.0 1Q yen 2Q yen 25,885 73.0 Total yen 150.0 Basic earnings per share 735,913 702,915 Ratio of equity attributable to owners of parent to total assets - Yes Report of Earnings and Financial Statements for the Three Months Ended June 30, 2025 (Consolidated) <IFRS> 7012 Preparation of supplementary materials on financial results: Total comprehensive income Millions of yen % Diluted earnings per share Profit attributable to owners of parent Millions of yen % Millions of yen % Profit 7,322 (54.1) 15,942 68.816,935 Business Profit Millions of yen % 65.2 Profit before tax Millions of yen % 16,824 (35.0) Revenue Millions of yen % 488,440 444,227 10.0 9.6 20,513 21.1 Total assets Millions of yen 2,968,991 3,016,951 Total equity Millions of yen 794,228 725,064 23.3 4,244 (72.4) 3,110 (89.3) Equity attributable to owners of parent Millions of yen - Year ended March 31, 2025 25.39 91.79 % 24.8 Year ending March 31, 2026 Year ending March 31, 2026 (forecast) - 15,375 69.2 29,029 51.4 - - - Year-end yen 80.0 75.0 August 6, 2025 Record date or term Revenue 3Q yen - Millions of yen 2,290,000 Business profit Millions of yen 145,000 Profit before tax Basic earnings per share 490.61 Millions of yen 115,000 Profit attributable to owners of parent Millions of yen 82,000
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Notes 1. Changes affecting the status of material subsidiaries (scope of consolidation): None 2. Changes in accounting policies and changes in accounting estimates (1) Changes in accounting policies required by IFRS: None (2) Changes in accounting policies due to other reasons: None (3) Changes in accounting estimates: None 3. Number of shares issued and outstanding (common shares) (1) Number of shares issued as of period-end (including treasury shares) June 30, 2025: shares March 31, 2025: shares (2) Number of shares held in treasury as of period-end June 30, 2025: shares March 31, 2025: shares (3) Average number of shares during respective periods June 30, 2025: shares June 30, 2024: shares * Review of the accompanying quarterly consolidated financial statements by a certified public accountant or an auditing firm: None * Appropriate Use of Financial Forecasts and Other Important Matters Forward-Looking Statements These materials contain various forward-looking statements and other forecasts regarding performance and other matters. Such statements are based on information available at the time of their preparation, and do not mean that the Company promises to achieve these figures. Actual results may differ from those expressed or implied by forward-looking statements due to a range of factors. How to Obtain Supplementary Material on Financial Results and Details of the Financial Results The Company plans to conduct a presentation for institutional investors, analysts and the press on Wednesday, August 6, 2025, and to post the presentation material on financial results to be used for the presentation on TDnet and the Company’s website simultaneously with the announcement of financial results. 785,389 785,225 167,136,500 167,501,531 167,921,800 167,921,800
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Accompanying Materials – Contents 1. Qualitative Information about Financial Statements 2 2. Condensed Quarterly Consolidated Financial Statements and Notes 3 (1) Condensed Quarterly Consolidated Statement of Financial Position 3 (2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income (3) Condensed Quarterly Consolidated Statement of Changes in Equity 6 (4) Condensed Quarterly Consolidated Statement of Cash Flow 8 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements 9 (Note on the going-concern assumption) 9 (Segment information) 9 3. Other 10 4 1
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1. Qualitative Information about Financial Statements The overview of the consolidated operating results, consolidated financial position, and consolidated earnings forecast is provided in the "Financial Results for First Quarter FY2025" made available today on our Company's official website (https://global.kawasaki.com). 2
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(Consolidated) 2. Condensed Quarterly Consolidated Financial Statements and Notes (1) Condensed Quarterly Consolidated Statement of Financial Position Assets Current assets Cash and cash equivalents 132,776 73,900 Trade and other receivables 764,383 710,153 Contract assets 170,556 155,123 Inventories 775,434 801,070 Income taxes receivable 200 509 Other financial assets 11,770 14,760 Other current assets 168,779 199,203 Total current assets 2,023,901 1,954,722 Non-current assets Property, plant and equipment 515,743 519,544 Intangible assets 75,760 74,987 Right-of-use assets 58,697 62,443 Investments accounted for using equity method 108,271 121,962 Other financial assets 71,802 73,259 Deferred tax assets 128,796 127,234 Other non-current assets 33,978 34,835 Total non-current assets 993,050 1,014,269 Total assets 3,016,951 2,968,991 Liabilities and equity Liabilities Current liabilities Trade and other payables 593,878 575,454 Bonds, borrowings and other financial liabilities 527,197 450,286 Income taxes payable 20,188 10,962 Contract liabilities 363,534 391,286 Provisions 35,731 34,126 Refund liabilities 73,097 68,490 Other current liabilities 233,675 186,092 Total current liabilities 1,847,303 1,716,699 Non-current liabilities Bonds, borrowings and other financial liabilities 362,313 370,257 Retirement benefit liability 67,100 67,921 Provisions 1,038 1,021 Deferred tax liabilities 1,019 1,031 Other non-current liabilities 13,112 17,831 Total non-current liabilities 444,584 458,064 Total liabilities 2,291,887 2,174,763 Equity Equity attributable to owners of parent Share capital 104,484 104,484 Capital surplus 56,456 105,573 Retained earnings 483,530 474,556 Treasury shares (4,093) (4,094) Other components of equity 62,537 55,393 Total equity attributable to owners of parent 702,915 735,913 Non-controlling interests 22,148 58,314 Total equity 725,064 794,228 Total liabilities and equity 3,016,951 2,968,991 As of March 31, 2025 June 30, 2025 As of (Millions of yen) 3
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(Consolidated) (2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income Condensed Quarterly Consolidated Statement of Profit and Loss Revenue 444,227 488,440 Cost of sales 358,808 396,631 Gross profit 85,418 91,809 Selling, general and administrative expenses 73,841 76,916 Share of profit of investments accounted for using equity method 5,819 6,178 Other income 983 1,324 Other expenses 1,444 1,880 Business profit 16,935 20,513 Finance income 13,711 606 Finance costs 4,761 4,296 Profit before tax 25,885 16,824 Income tax expense 9,942 9,501 Profit 15,942 7,322 Profit attributable to: Owners of parent 15,375 4,244 Non-controlling interests 566 3,077 Earnings per share Basic earnings per share 91.79 25.39 June 30, 2024 June 30, 2025 (Millions of yen) Three months ended Three months ended 4
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(Consolidated) Condensed Quarterly Consolidated Statement of Comprehensive Income Profit 15,942 7,322 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income (1,640) 1,192 Remeasurements of defined benefit plans 303 94 Share of other comprehensive income of investments accounted for using equity method 0 0 Total of items that will not be reclassified to profit or loss (1,336) 1,286 Items that may be reclassified to profit or loss Cash flow hedges (1,109) 1,305 Exchange differences on translation of foreign operations 11,819 (4,952) Share of other comprehensive income of investments accounted for using equity method 3,712 (1,851) Total of items that may be reclassified to profit or loss 14,422 (5,498) Total other comprehensive income 13,086 (4,211) Comprehensive income 29,029 3,110 Comprehensive income attributable to: Owners of parent 28,035 1,000 Non-controlling interests 993 2,109 (Millions of yen) Three months ended Three months ended June 30, 2024 June 30, 2025 5
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(Consolidated) (3) Condensed Quarterly Consolidated Statement of Changes in Equity Remeasurements of defined benefit plans Financial assets measured at fair value through other comprehensive income Balance as of April 1, 2024 104,484 56,455 405,156 (1,060) - 10,407 Profit 15,375 Other comprehensive income 284 (1,655) Comprehensive income 15,375 284 (1,655) Purchase of treasury shares (1) Dividends (5,036) Transfer to retained earnings 286 (284) (1) Change in ownership interest of parent due to transactions with non-controlling interests Transfer to non-financial assets Total transactions with owners (4,750) (1) (284) (1) Balance as of June 30, 2024 104,484 56,455 415,782 (1,062) - 8,750 Cash flow hedges Exchange differences on translation of foreign operations Total Balance as of April 1, 2024 355 58,291 69,054 634,090 20,459 654,549 Profit 15,375 566 15,942 Other comprehensive income (860) 14,890 12,659 12,659 427 13,086 Comprehensive income (860) 14,890 12,659 28,035 993 29,029 Purchase of treasury shares (1) (1) Dividends (5,036) (458) (5,494) Transfer to retained earnings (286) - - Change in ownership interest of parent due to transactions with non-controlling interests Transfer to non-financial assets (275) (275) (275) (275) Total transactions with owners (275) (561) (5,313) (458) (5,771) Balance as of June 30, 2024 (780) 73,181 81,151 656,812 20,994 677,806 Other components of equity Other components of equity (Millions of yen) Equity attributable to owners of parent Total equity attributable to owners of parent Non-controlling interests Total Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares 6
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(Consolidated) Remeasurements of defined benefit plans Financial assets measured at fair value through other comprehensive income Balance as of April 1, 2025 104,484 56,456 483,530 (4,093) - 8,636 Profit 4,244 Other comprehensive income 77 1,184 Comprehensive income 4,244 77 1,184 Purchase of treasury shares (1) Dividends (13,430) Transfer to retained earnings 211 (77) (134) Change in ownership interest of parent due to transactions with non-controlling interests 49,117 41 Transfer to non-financial assets Total transactions with owners 49,117 (13,218) (1) (77) (92) Balance as of June 30, 2025 104,484 105,573 474,556 (4,094) - 9,728 Cash flow hedges Exchange differences on translation of foreign operations Total Balance as of April 1, 2025 (1,071) 54,972 62,537 702,915 22,148 725,064 Profit 4,244 3,077 7,322 Other comprehensive income 1,553 (6,059) (3,244) (3,244) (967) (4,211) Comprehensive income 1,553 (6,059) (3,244) 1,000 2,109 3,110 Purchase of treasury shares (1) (1) Dividends (13,430) (512) (13,942) Transfer to retained earnings (211) - - Change in ownership interest of parent due to transactions with non-controlling interests 47 (3,759) (3,670) 45,447 34,568 80,015 Transfer to non-financial assets (17) (17) (17) (17) Total transactions with owners 29 (3,759) (3,899) 31,997 34,055 66,053 Balance as of June 30, 2025 511 45,153 55,393 735,913 58,314 794,228 Equity attributable to owners of parent Non-controlling interests Total Other components of equity Total equity attributable to owners of parent (Millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity 7
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(Consolidated) (4) Condensed Quarterly Consolidated Statement of Cash Flow Cash flows from operating activities Profit 15,942 7,322 Depreciation and amortization 20,880 24,372 Finance income and finance costs 3,987 4,863 Share of loss (profit) of investments accounted for using equity method (5,819) (6,178) Loss (gain) on sale of fixed assets (346) 235 Income tax expense 9,942 9,501 Increase (decrease) in retirement benefit liabilities 1,350 1,090 Decrease (increase) in trade and other receivables 40,007 50,510 Decrease (increase) in contract assets 10,513 15,423 Decrease (increase) in inventories (49,904) (29,514) Increase (decrease) in trade and other payables (17,270) (17,041) Decrease (increase) in advance payments (33,229) (14,711) Increase (decrease) in contract liabilities 51,015 29,717 Increase (decrease) in refund liabilities 1,679 (4,063) Decrease (increase) in other current assets (17,178) (15,389) Increase (decrease) in other current liabilities (6,371) (58,640) Other 4,598 13,246 Subtotal 29,796 10,745 Interest received 744 81 Dividends received 220 490 Interest paid (2,576) (3,339) Income taxes paid (4,562) (15,730) Net cash provided by (used in) operating activities 23,623 (7,753) Cash flows from investing activities Purchase of property, plant and equipment (22,633) (21,697) Proceeds from sale of property, plant and equipment 1,352 235 Purchase of intangible assets (2,945) (4,453) Proceeds from sale of intangible assets 26 12 Payments for equity method investments and purchase of other financial assets (325) (9,918) Proceeds from equity method investments and sale of other financial assets 969 207 Other (2,566) (2,513) Net cash provided by (used in) investing activities (26,122) (38,128) Cash flows from financing activities Net increase (decrease) in short-term borrowings 74,118 (2,564) Repayments of lease liabilities (3,667) (4,079) Proceeds from long-term borrowings - 5,000 Repayments of long-term borrowings (4,500) (5,000) Redemption of bonds - (30,000) Dividends paid (4,766) (12,824) Proceeds from factoring agreements 5,902 3,220 Repayment of liabilities under factoring agreements (33,580) (41,137) Dividends paid to non-controlling interests (458) (512) Proceeds from sale of shares of subsidiaries not resulting in change in scope of consolidation - 80,000 Other (5,933) (4,840) Net cash provided by (used in) financing activities 27,114 (12,740) Effect of exchange rate changes on cash and cash equivalents (5,909) (254) Net increase (decrease) in cash and cash equivalents 18,706 (58,875) Cash and cash equivalents at beginning of period 84,153 132,776 Cash and cash equivalents at end of period 102,859 73,900 (Millions of yen) Three months ended June 30, 2024 Three months ended June 30, 2025 8
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(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements Note on the going-concern assumption Not applicable Segment information Three months ended June 30, 2024 (April 1, 2024 – June 30, 2024) (Millions of yen) 104,960 43,831 80,177 52,651 144,742 17,864 444,227 - 444,227 4,770 6 3,871 3,748 235 5,504 18,137 (18,137) - 109,731 43,837 84,048 56,400 144,977 23,368 462,364 (18,137) 444,227 4,870 (1,473) 5,983 (142) 11,519 717 21,475 (4,539) 16,935 13,711 (4,761) 25,885 Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices. 2. Eliminations and corporate of negative ¥4,539 million include negative ¥96 million for intersegment transactions and negative 4,443 million for general and administrative expenses not attributed reportable segments. 3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses, share of profit and loss of investments accounted for using equity method, other income, and other expenses from revenue. Three months ended June 30, 2025 (April 1, 2025 – June 30, 2025) (Millions of yen) 101,581 55,240 96,677 56,930 160,320 17,688 488,440 - 488,440 2,802 2 4,827 4,116 223 6,067 18,040 (18,040) - 104,384 55,242 101,505 61,047 160,543 23,756 506,480 (18,040) 488,440 841 3,663 9,760 2,348 8,040 1,674 26,327 (5,814) 20,513 606 (4,296) 16,824 Notes: 1. Intersegment revenue and transfers are made with reference to prevailing market prices. 2. Eliminations and corporate of negative ¥5,814 million include negative ¥254 million for intersegment transactions and negative 5,560 million for general and administrative expenses not attributed reportable segments. 3. Business profit (loss) is calculated by deducting cost of sales, selling, general and administrative expenses, share of profit and loss of investments accounted for using equity method, other income, and other expenses from revenue. Total Eliminations and corporate *2 Consolidated total Aerospace Systems Rolling Stock Energy Solution & Marine Engineering Precision Machinery & Robot Powersports & Engine Revenue from external customers Intersegment revenue and transfers *1 Total revenue Business profit(loss) *3 Other Total Eliminations and corporate *2 Finance income Finance costs Profit (loss) before tax Aerospace Systems Rolling Stock Consolidated total Revenue from external customers Intersegment revenue and transfers *1 Total revenue Business profit(loss) *3 Finance income Energy Solution & Marine Engineering Precision Machinery & Robot Powersports & Engine Other Finance costs Profit (loss) before tax 9
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3. Other Regarding the misconduct in the Group’s submarine repair business and marine engine business, the Group has established the Special Compliance Promotion Committee chaired by Representative Director, President and CEO Yasuhiko Hashimoto, as well as respective Special Investigative Committees composed of external experts. In December 2024 and January 2025, the Group received interim reports on investigations into the facts and analysis of the root causes of these specific incidents from each of the Special Investigative Committee and published the details of these reports. The investigation by the Special Investigative Committee is ongoing. The Group will continue to work to reform the Group’s compliance and governance systems, and to enhance the Group’s corporate culture. The Company is currently examining whether these matters will impact its financial results and will immediately reflect in its earnings forecast in case such an impact would be confirmed. 10