Slides
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Financial Results for Second Quarter FY2025 For the year ending March 31, 2026 November 11, 2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 2 Revenue hit a record 996.2 billion yen, up 112.0 billion yen YoY. Business profit totaled 35.7 billion yen ( -12.0 billion yen YoY), impacted by appreciation of the yen and higher tariff costs. Progress vs. full -year forecast: 25% (33% previous fiscal year) Financial Results and Performance Forecast Highlights Consolidated Financial Results for Second Quarter FY2025 Earnings forecasts for FY2025 Revenue forecast raised to a record 2,340.0 billion yen Business profit forecast remains unchanged at a record 145.0 billion yen , reflecting tariff impacts etc. Business profit, particularly in Aerospace Systems is projected to be more H2-weighted than usual, driven by the following factors Increase in the sales mix of defense-related contracts, which are concentrated in H2 Higher after -sales ratio driven by increased maintenance volume for commercial aircraft engines 1 2 0
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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 Factors Affecting Changes in Business Profit 9 Statement of financial position 11 Cash Flows 13 Earnings Forecasts for FY2025 Details by Segment1 Summary 16 Factors Affecting Changes 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 Other Information2 3 4 0 Notice Consolidated Financial Results for Second Quarter FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Consolidated Financial Results for Second Quarter FY2025 4 1
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 444.2 439.9 523.1 721.9 488.4 Q1 Q2 Q3 Q4 Q1 Q2 16.9 30.8 31.2 64.0 20.5 3.8% 7.0% 6.0% 8.9% 4.2% 2.9% Q1 Q2 Q3 Q4 Q1 Q2 5 Business profit declined YoY, mainly due to the impact of appreciation of the yen Pre-tax profit and net profit grew YoY due to an increase in foreign exchange gains resulting from depreciation of the yen at the end of the period 1 Consolidated Financial Results for Second Quarter FY2025 –Summary- Quarterly Revenue (billion yen) Quarterly Business Profit (billion yen), margin ※1 Except for loss related to the in-service issues of PW1100G-JM engine ※2 The amount of foreign currency impacting profit and loss by currency 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 from loss-provisioned projects. 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 engine. See page 51 for the breakdown of these figures by segments FY2024 FY2025 FY2024 FY2025 ※2 ※1 (billion yen) FY25 Q2 YoY Apr to Jun Jul to Sep Total Change Orders Received 895.3 446.3 569.1 1,015.4 + 120.1 Revenue 884.1 488.4 507.8 996.2 + 112.0 Business Profit 47.7 20.5 15.1 35.7 - 12.0 [margin] [5.4%] [4.2%] [3.0%] [3.6%] [- 1.8pt] Profit Before Tax 23.7 16.8 18.5 35.3 + 11.6 [margin] [2.7%] [3.4%] [3.7%] [3.6%] [+ 0.8pt] 13.6 4.2 17.8 22.0 + 8.4 [margin] [1.5%] [0.9%] [3.5%] [2.2%] [+ 0.6pt] 151.44 143.79 146.37 145.12 - 6.32 1.03 0.52 0.62 1.14 + 0.11 FY24 Q2 Weighted-average exchange rates (USD/JPY) Profit Attributable to Owners of Parent US dollar-based transaction (B$)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Orders Received Revenue Business Profit (Loss) FY24 Q2 FY25 Q2 Change FY24 Q2 FY25 Q2 Change FY24 Q2 FY25 Q2 Change Aerospace Systems 209.9 285.1 + 75.1 234.1 242.5 + 8.4 25.3 10.1 - 15.2 Rolling Stock 27.8 27.7 - 0.0 87.0 119.3 + 32.3 1.6 4.9 + 3.3 211.0 237.5 + 26.4 159.9 187.3 + 27.3 12.0 19.9 + 7.8 124.6 126.2 + 1.6 109.4 117.0 + 7.5 1.9 4.2 + 2.3 Powersports & Engine 253.3 292.7 + 39.4 253.3 292.7 + 39.4 14.9 4.8 - 10.0 Others 68.4 45.9 - 22.5 40.1 37.1 - 2.9 1.6 1.7 + 0.1 Elimination and corporate※ - - - - - - - 9.8 - 10.1 - 0.3 Total 895.3 1,015.4 + 120.1 884.1 996.2 + 112.0 47.7 35.7 - 12.0 (billion yen) Energy Solution & Marine Engineering Precision Machinery & Robot 6 1 2 ES&M revenue and business profit grew, driven by strong performance in Energy and Shipbuilding & Offshore ① ② 1 3 1 Aerospace Systems profit fell due to higher production volume of newly manufactured commercial aircraft engines and increased investments in MRO ③ 3 Consolidated Financial Results for Second Quarter FY2025 –Segment- ※”Elimination and corporate” includes some expenses incurred at head offices which were not allocated to each industry segment for internal reporting PS&E profit fell due to higher tariffs and increased sales promotion expenses, despite achieving revenue growth
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved % % Revenue 884.1 100.0 996.2 100.0 + 112.0 Cost of Sales 697.5 78.9 814.9 81.8 + 117.3 Gross profit 186.6 21.1 181.3 18.2 - 5.3 Selling, General and Administrative Expenses 147.1 16.6 154.9 15.6 + 7.8 Salaries and Allowances 39.8 42.9 + 3.0 R&D Expenses 26.1 27.2 + 1.1 Others 81.0 84.6 + 3.5 8.5 11.4 + 2.9 Other Income and Expenses - 0.3 - 2.1 - 1.8 Gain on Sale of Property, Plant and Equipment 1.0 0.0 - 0.9 Others - 1.3 - 2.2 - 0.8 Business profit (Loss) 47.7 5.4 35.7 3.6 - 12.0 (billion yen) FY24 Q2 FY25 Q2 Change Share of profit (loss) of investments accounted for using equity method 7 1 ① 1 Consolidated Financial Results for Second Quarter FY2025 –Statement of Profit or Loss- Details Selling, general and administrative expenses increased in line with revenue growth, but the SG&A ratio declined
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved % % Finance income and Finance costs - 24.0 - 0.3 + 23.6 Net Interest expense (incl. dividend income) - 4.9 - 5.4 - 0.5 Gain and loss on foreign exchange - 15.7 7.6 + 23.3 Others - 3.3 - 2.4 + 0.8 Profit before tax 23.7 2.7 35.3 3.6 + 11.6 Income tax expense 8.8 10.7 + 1.8 Profit attributable to Non-controlling interests 1.2 2.5 + 1.3 Profit attributable to owners of parent 13.6 1.6 22.0 2.2 + 8.4 (billion yen) FY24 Q2 FY25 Q2 Change 8 1 ２ ③ 3 ②USD/JPY rate 149.53 Q4/E FY24 148.89 Q2/E FY25 Weighted-average exchange rates 145.12 Q2 FY25 Translation gains arose on foreign currency- denominated receivables Consolidated Financial Results for Second Quarter FY2025 –Statement of Profit or Loss- Details In April 2025, a 20% stake of Kawasaki Motors, Ltd. (a PS&E business subsidiary) was transferred to ITOCHU Corporation, resulting in an increase in profit attributable to non- controlling interests
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 9 1 Increased sales in PS&E contributed to change in revenue Improvements in profitability of ES&M significantly influences change in product mix and other factors, whilePS&E and Aerospace Systems deteriorated Consolidated Financial Results for Second Quarter FY2025 –Factors Affecting Changes in Business Profit- ※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 engine [-2.8 billion 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] FY24 Q2 Business Profit FY25 Q2 Business Profit - 12.0 billion yen 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 Breakdown Amount US Tariff-Related Cost Increase(PS&E) - 2.8 Price Optimization +12.0 Others - 24.3 Total - 15.1
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved (billion yen) FY24 Q2 Details of change FY25 Q2 Total Aerospace Systems 25.3 - 6.8 3.6 - 7.9 - 4.1 - 15.2 10.1 Rolling Stock 1.6 - 1.1 3.9 0.7 0.0 - 0.2 3.3 4.9 12.0 0.4 5.0 5.3 2.1 - 5.0 7.8 19.9 1.9 - 0.9 1.6 1.7 0.8 - 0.9 2.3 4.2 Powersports & Engine 14.9 - 7.9 14.7 - 17.2 - 0.0 0.4 - 10.0 4.8 Others 1.6 0.0 - 0.6 1.8 - 0.0 - 1.1 0.1 1.7 Elimination and corporate - 9.8 0.7 - 0.0 - 1.0 - 0.3 - 10.1 Total 47.7 - 16.3 28.2 - 15.1 2.9 - 11.7 - 12.0 35.7 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 Precision Machinery & Robot 10 1 ※2 Consolidated Financial Results for Second Quarter FY2025 –Factors Affecting Changes 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 engine (-2.8 billion Yen) ※3 Excluding the effects of FX rates
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved % % Cash and Cash Equivalents 132.7 64.2 - 68.5 Trade Receivables (Incl. contract assets) 888.8 827.6 - 61.1 Inventories 775.4 851.3 + 75.8 Other Current Assets 226.8 290.2 + 63.3 Current assets 2,023.9 67.1 2,033.5 66.2 + 9.6 PP&E and Intangible assets 591.5 603.5 + 11.9 Right-of-Use Assets 58.6 66.9 + 8.2 Deferred Tax Assets 128.7 126.7 - 1.9 Other Non-Current Assets 214.0 240.0 + 26.0 Non-Current Assets 993.0 32.9 1,037.3 33.8 + 44.2 Total Assets 3,016.9 100.0 3,070.8 100.0 + 53.9 (billion yen) End of Mar 2025 End of Sep 2025 Change 11 1 ①Decreased in PS&E, Plant, Energy, and Ship & Offshore etc. IFRS 1 IFRS 2 ②Increased in PS&E and Aerospace Systems etc.3 ③ Consolidated Financial Results for Second Quarter FY2025 –Statement of Financial Position- Details 467.1 510.8 540.3.0 579.6 603.5 1.46 1.49 1.42 1.53 1.65 9/21 9/22 9/23 9/24 9/25 PP&E and intangible assets (billion yen) Turnover of PP&E and intangible assets 655 702.4 753.3 820.7 851.3 1.04 1.08 1.02 1.08 1.17 9/21 9/22 9/23 9/24 9/25 Inventory (billion yen) Turnover of inventory Increase in advance payments in Aerospace etc.
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved % % Trade Payables 512.1 506.7 - 5.3 Interest-Bearing Debt 692.5 710.3 + 17.8 Contract Liability (Advances Received) 363.5 387.2 + 23.7 Provision for Losses on Construction Contracts 5.1 5.6 + 0.5 Retirement Benefit Liability 67.1 69.1 + 2.0 Other Liabilities 651.5 567.8 - 83.6 Total Liabilities 2,291.8 76.0 2,247.0 73.2 - 44.8 Equity Attributable to Owners of Parent 702.9 761.7 + 58.8 Non-Controlling Interests 22.1 62.0 + 39.8 Total Equity 725.0 24.0 823.8 26.8 + 98.7 Total Liabilities and Equity 3,016.9 100.0 3,070.8 100.0 + 53.9 (billion yen) End of Mar 2025 End of Sep 2025 Change 641.5 667.0 721.7 589.8 666.0 706.0 831.0 653.9 732.6 840.0 908.2 692.5 663.2 710.3 106.9% 106.4% 112.2% 77.3% 97.1% 109.0% 126.4% 88.6% 94.3% 109.6% 115.1% 78.4% 78.7% 82.7% 0 200 400 600 800 1000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Short-term debt (billion yen) Long-term debt (billion yen) Net D/E Ratio 12 Decreased in liabilities resulting from the securitization of receivables in Aerospace 1 5 4 Increased in profit attributable to non- controlling interests resulting from the transfer of a 20% stake in Kawasaki Motors, Ltd., (a PS&E business subsidiary) to ITOCHU Corporation ⑤ Appendix Cash Conversion Cycle （day） End of FY21 Q2 158 End of FY22 Q2 154 End of FY23 Q2 154 End of FY24 Q2 164 End of FY25 Q2 155 FY2022 FY2023 FY2024 FY2025 Consolidated Financial Results for Second Quarter FY2025 –Statement of Financial Position- Details ④
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Profit Before Tax 23.7 35.3 + 11.6 Depreciation and Amortization 42.8 50.2 + 7.3 Increase and Decrease in Working Capital - 73.6 - 18.8 + 54.8 Trade Receivables※1 (minus notation indicates incr.) 85.0 64.3 - 20.6 Inventory (minus notation indicates incr.) - 119.4 - 70.7 + 48.7 Trade Payables (minus notation indicates decr.) - 14.3 - 5.9 + 8.3 Advance Payment (minus notation indicates incr.) - 49.7 - 30.3 + 19.3 Contract Liabilities ※2 (minus notation indicates decr.) 24.9 23.8 - 1.0 Other - 29.8 - 92.8 - 62.9 Cash Flows from Ooperating Activities - 36.9 - 26.0 + 10.8 Purchase of PP&E and Intangible Assets - 49.4 - 52.7 - 3.3 Proceeds from Sales of PP&E and Intangible Assets 1.9 1.1 - 0.7 Other - 2.2 - 18.0 - 15.8 Cash Flows from Investing Activities - 49.7 - 69.6 - 19.8 Free Cash Flows - 86.7 - 95.6 - 8.9 190.1 5.3 - 184.8 Dividends Paid (Except Payment to Non-Controlling Interests) - 5.0 - 13.3 - 8.3 - 43.5 - 32.1 + 11.3 Other - 17.6 67.4 + 85.0 Cash Flows from Financing Activities 123.8 27.1 - 96.7 (billion yen) FY24 Q2 FY25 Q2 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 ② 1 FY2024 Q2： Despite progress in debt collection in PS&E and Energy business, cash outflows in the working capital due to higher inventories in PS&E and Aerospace Systems FY2025 Q2： Despite progress in debt collection in PS&E and Energy business, operating cash flow saw outflows due to higher inventories in Aerospace Systems and PS&E, and increased payments for income tax and others 2 1 2 Consolidated Financial Results for Second Quarter FY2025 –Statement of Cash Flows- ※1,2 Trade receivables include contract assets. The former account name of contract liabilities is advances received A portion of the 80.0 billion yen in 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 Details ①
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved - 117.2 - 123.3 - 113.4 - 249.4 - 100.7 - 84.1 - 70.0 - 15.4 - 36.9 - 26.0 529.3 552.9 599.5 689.4 669.3 655.6 665.7 758.4 884.9 (0.4) (15.1) (0.2) (2.1) (ｰ 17.3) (14.7) (35.9) (ｰ 34.4) (23.7) (35.3) - 300.0 0.0 300.0 600.0 900.0 Q2 FY16 Q2 FY17 Q2 FY18 Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY25 CF from operating acitivities CF from investing activities Working capital FCF 951.7 IFRS 14 1 Consolidated Financial Results for Second Quarter FY2025 –Statement of Cash Flows- ※ Working capital = Trade receivables + Inventories + Advance payments - Trade payables - Contract Liabilities (advances received) Figures in parentheses represent profit before tax (billion yen) Working capital grew over past three years, but its cash flow contribution manifest gradually Operating cash flows for FY2025 Q2 were slightly negative but improving
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Earnings Forecasts for FY2025 15 2 (for the year ending March 31, 2026)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 16 Full-year profit forecast unchanged from the initial and August announcement Profit is projected to be more H2-weighted than in previous years (mainly due to the profit/loss balance in Aerospace Systems ) 2 Earnings Forecasts for FY2025 -Summary- ※ The amount of foreign currency impacting profit and loss by currency 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 from loss-provisioned projects). See page 51 for the breakdown of these figures by segment. ※ (billion yen) FY2024 Actual Old FCST New FCST Q2 Actual Q3-4 FCST Orders Received 2,630.7 2,230.0 2,530.0 - 100.7 + 300.0 1,015.4 1,514.6 Revenue 2,129.3 2,290.0 2,340.0 + 210.7 + 50.0 996.2 1,343.8 Business Profit 143.1 145.0 145.0 + 1.9 - 35.7 109.3 [Margin] [6.7%] [6.3%] [6.2%] [- 0.5pt] [- 0.1pt] [3.6%] [8.1%] Profit Before Tax 107.5 115.0 115.0 + 7.5 + - 35.3 79.7 [Margin] [5.0%] [5.0%] [4.9%] [- 0.1pt] [- 0.1pt] [3.6%] [5.9%] 88.0 82.0 82.0 - 6.0 - 22.0 60.0 [Margin] [4.1%] [3.6%] [3.5%] [- 0.6pt] [-] [2.2%] [4.5%] After-tax ROIC 8.0% 6.9% 6.9% - 1.1pt - - - 150.81 145.00 - - - 145.12 145.00 US dollar-based transaction (B$) 1.94 2.48 2.12 + 0.18 - 0.36 1.14 0.98 Chg. vs. FY24 Chg. vs. Old FCST FY2025 Forecast and Progress Profit Attributable to Owners of Parent Weighted-average exchange rates (USD/JPY)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 17 2 Mitigate the impact of deterioration in profitability resulting from increased costs due to US tariff policies and intensified competition through cost pass- through, fixed cost control, and the depreciation of the yen Forecast in May FY2025 Business Profit Effects of FX rates Cost Increase Due to US Tariff Policy ±0.0 billion yen Forecast in November FY2025 Business Profit Exchange Assumption USD/JPY 140 EUR/JPY 155 Exchange Assumption USD/JPY 145 EUR/JPY 165 Change in revenue Tariff Cost Pass-Through Segment Amount Aerospace Systems -1.1 Rolling Stock ー ES＆M -0.0 Precision Machinery & Robot -0.5 PS&E -19.6 計 -21.3 Primarily reflects the impact of declining U.S. leisure demand in PS&E Change in revenue mix, SG&A Expenses, and Others ※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 Change in share of profit(loss) of investments accounted for using equity method Note: The graph shows the variance from the forecast announced in May Earnings Forecasts for FY2025 -Factors Affecting Changes in Business Profit※1 -
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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 FCSThange Actual Old FCST New FCST Change Actual Old FCST New FCST Change Aerospace Systems 882.8 690.0 720.0 + 30.0 567.8 640.0 640.0 - 55.8 56.0 56.0 - Rolling Stock 251.5 110.0 300.0 + 190.0 222.3 220.0 220.0 - 8.4 9.0 9.0 - 542.0 440.0 480.0 + 40.0 398.1 450.0 460.0 + 10.0 44.2 57.0 58.0 + 1.0 249.2 270.0 270.0 - 241.5 260.0 260.0 - 7.0 14.0 14.0 - Powersports & Engine 611.6 620.0 660.0 + 40.0 609.3 620.0 660.0 + 40.0 47.8 30.0 30.0 - Others 93.3 100.0 100.0 - 90.1 100.0 100.0 - 5.2 5.0 5.0 - - - - - - - - - - 25.6 - 26.0 - 27.0 - 1.0 Total 2,630.7 2,230.0 2,530.0 + 300.0 2,129.3 2,290.0 2,340.0 + 50.0 143.1 145.0 145.0 - (billion yen) Energy Solution & Marine Engineering Elimination and corporate※ Precision Machinery & Robot 18 2 1 Earnings Forecasts for FY2025 -Segment- ※ “Elimination and corporate” includes some expenses incurred at Head Office which were not allocated to each industry segment for internal reporting 1 2 ES&M was revised upward, reflecting strong performance in the energy business and the China shipbuilding joint venture Despite upward revision in demand outlook, PS&E profit forecast unchanged due to increased promotional spending and other costs 2 1 2
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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 45.9 - 10.3 14.8 55.8 56.0 FY21 FY22 FY23 FY24 FY25 434.9 383.3 345.5 692.6 882.8 720.0 FY21 FY22 FY23 FY24 FY25 397.5 298.2 348.8 396.1 567.8 640.0 FY21 FY22 FY23 FY24 FY25 21 3 Orders Received (billion yen) Revenue (billion yen) Business Profit (billion yen)FCST in August 690.0 FCST in August 640.0 +¥75.1 bil. +¥8.4 bil. -¥15.2 bil. Up due to higher demand MOD※ and aircraft component parts for Boeing Same as above Down due to appreciation of the yen, higher fixed costs from entering the engine MRO business, and higher production volumes of new commercial aircraft engines, despite revenue growth Q2 of FY2025（vs. Q2 of FY2024） Orders Received Revenue Business Profit The outlook remains unchanged Revised up due to increased demand for commercial aircraft engines, as well as orders from MOD and Boeing +¥30.0 bil. ±¥0.0 bil. Details by Segment -Aerospace Systems- FCST in August 56.0 FY2025 Forecast（vs. forecast in August） ±¥0.0 bil. ※MOD: The Ministry of Defense - 15.0 Orders Received Revenue Business Profit Same as above Note: Darker areas in the graphs represent the Q1-Q2 and lighter areas represent the Q3-Q4 cumulative total
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Factors Affecting Changes in Business Profit (billion yen) 22 Effects of FX rates※ Change in revenue Change in product mix and other factors Change in SG&A expenses FY24 Q2 FY25 Q2 3 Details by Segment -Aerospace Systems- Appendix 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 FY24 FY25 Change YoYQ2 Full year Q2 767 11 19 15 + 4 777 10 19 12 + 2 777X 5 5 3 - 2 787 23 58 25 + 2 FY24 FY25 Change YoYQ2 Full year Q2 V2500 12 20 6 - 6 PW1100G 333 681 321 - 12 ※ including the impact of revaluation of refund liabilities denominated in foreign currencies related to the in-service issues of PW1100G-JM engine(-2.8 billion yen) (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q2 Actual Q2 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q3-4 FCST Orders Received 209.9 285.1 + 75.1 882.8 690.0 720.0 - 162.8 + 30.0 434.9 Aerospace 112.7 195.7 + 83.0 699.5 500.0 520.0 - 179.5 + 20.0 324.3 Aero Engine 97.2 89.4 - 7.8 183.3 190.0 200.0 + 16.7 + 10.0 110.6 Revenue 234.1 242.5 + 8.4 567.8 640.0 640.0 + 72.2 - 397.5 Aerospace 153.9 165.9 + 12.0 399.9 465.0 465.0 + 65.1 - 299.1 Aero Engine 80.2 76.5 - 3.6 167.8 175.0 175.0 + 7.2 - 98.5 Business Profit 25.3 10.1 - 15.2 55.8 56.0 56.0 + 0.2 - 45.9 [Margin] [10.8%] [4.2%] [ｰ 6.6pt] [9.8%] [8.8%] [8.8%] [ｰ 1.0pt] [-] [11.5%]
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 70.0 63.2 71.5 93.3 63.4 81.5 93.5 110.2 80.2 48.9 106.3 160.6 104.9 129.1 120.3 213.3 101.5 140.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Aerospace Aero Engines - 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% 6.6% 23 3 -98.1% Details by Segment -Aerospace Systems- Business Profit (billion yen) Revenue (billion yen) FY2021 FY2022 FY2023 FY2024 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 aircraft and helicopters Strengthening activities related to defense business – Promoting efforts Seven focal areas to strengthen defense capabilities H145//BK117 D-3 helicopter Delivered to Ōita Prefecture (for firefighting and disaster prevention use) KJ300 Turbofan Engine Standoff electronic warfare aircraft 1. Integrated air and missile defense capabilities 2. Stand-off defense capabilities 3. Cross-domain operational 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 NEDO Green Innovation Fund for development of carbon-free technology
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 4.1 2.2 1.3 3.7 8.4 9.0 FY21 FY22 FY23 FY24 FY25 100.7 126.6 131.9 195.9 222.3 220.0 FY21 FY22 FY23 FY24 FY25 272.3 71.5 313.2 88.7 251.5 300.0 FY21 FY22 FY23 FY24 FY25 25 3 Details by Segment - Rolling Stock - -¥0.0 bil. +¥32.3 bil. Remained flat YoY, as increased orders from Asia offset the decline in North America Up due to an increase in domestic and the US Improved due to an increase in revenue The outlook remains unchanged Same as above Revised up due to increased orders from the US +¥190.0 bil. ±¥0.0 bil. ±¥0.0 bil.+¥3.3 bil. FCST in August 110.0 FCST in August 220.0 Orders Received (billion yen) Revenue (billion yen) Business Profit (billion yen) FCST in August 9.0 Q2 of FY2025（vs. Q2 of FY2024） FY2025 Forecast（vs. forecast in August） Orders Received Revenue Business Profit Orders Received Revenue Business Profit 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 26 3 Details by Segment - Rolling Stock - FY24 Q2 FY25 Q2 Effects of FX rates Revenue from components, overhaul, and after-sales service (billion yen) 35.0 FY21 FY22 FY23 FY24 FY'25 FCST Appendix Change in revenue Change in product mix and other factors Change in SG & A expenses (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q2 Actual Q2 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q3-4 FCST Orders Received 27.8 27.7 - 0.0 251.5 110.0 300.0 + 48.5 + 190.0 272.3 Domestic & Asia 24.7 26.5 + 1.8 52.3 103.0 90.0 + 37.7 - 13.0 63.5 North America 3.1 1.2 - 1.9 199.2 7.0 210.0 + 10.8 + 203.0 208.8 Revenue 87.0 119.3 + 32.3 222.3 220.0 220.0 - 2.3 - 100.7 Domestic & Asia 23.3 39.8 + 16.4 70.1 78.0 78.0 + 7.9 - 38.2 North America 63.7 79.5 + 15.8 152.1 142.0 142.0 - 10.1 - 62.5 Business Profit 1.6 4.9 + 3.3 8.4 9.0 9.0 + 0.6 - 4.1 [Margin] [1.9%] [4.2%] [+ 2.2pt] [3.8%] [4.1%] [4.1%] [+ 0.3pt] [-] [4.1%] Progress of the R211 Project for New York City Subway (as of the end of Sep 2025) Base contract : Delivered 535 cars out of 535 Option1 contract : Delivered 170 cars out of 640 Option2 contract : Received an order of 435 cars in Jan 2025 Factors Affecting Changes in Business Profit (billion yen)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 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 64.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Domestic & Asia North America - 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% 2.1% 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 Compliance with delivery schedules for overseas projects 28 3 Details by Segment - Rolling Stock - R211 subway car for New York City Transit (MTA) Market Overview 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 Specific Efforts Achieving quality levels trusted by customers Expansion of components sales, after-sales service, and maintenance business – Promotion of remote track monitoring equipment for North American market – Promotion of train condition monitoring equipment for domestic market Rolling stock for Dhaka Mass Transit Company Limited Dhaka MRT Line-6 ‣Final vehicle delivered to customer in FY2024 (144 cars of 24 trains ) ‣Handover of base facilities in FY2025 NYCT R268 MTA ‣Order indication for 378 railcars received on October 29, 2025 (US time), with an order value of approx. 220 billion yen ‣The final vehicle delivery is scheduled in FY2030 – Reductions of spoilage and repair costs – Continuation of production management based on KPS (Kawasaki Production System) at domestic and overseas production sites
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 29 3 Up due to orders for MOD and overseas LNG tanks, despite a reactionary decline following multiple LPG/ammonia carrier orders +¥26.4 bil. Up due to higher revenues across various segments, including the energy and Ship & Offshore Structure +¥27.3 bil. +¥7.8 bil. Revised up due to increased orders for overseas LNG tanks, power generation equipment, and marine machinery +¥40.0 bil. Revised up due to increased orders for MOD etc. +¥10.0 bil. Revised up due to higher equity in earnings of affiliates and other factors Details by Segment - Energy Solution & Marine Engineering - Orders Received (billion yen) Revenue (billion yen) Business Profit (billion yen) 242.5 343.5 439.0 401.6 542.0 480.0 FY21 FY22 FY23 FY24 FY25 272.7 297.3 314.5 353.2 398.1 460.0 FY21 FY22 FY23 FY24 FY25 38.1 - 10.8 3.9 31.9 44.2 58.0 FY21 FY22 FY23 FY24 FY25 FCST in August 440.0 FCST in August 57.0 FCST in August 450.0 Improved due to an increase in revenue Q2 of FY2025（vs. Q2 of FY2024） FY2025 Forecast（vs. forecast in August） Orders Received Revenue Business Profit Orders Received Revenue Business Profit +¥1.0 bil. 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 Factors Affecting Changes in Business Profit (billion yen) 48.0 36.568.5 73.0 84.3 92.1 84.5 FY21 FY22 FY23 FY24 FY25 30 3 40.2 33.2 46.4 62.1 62.0 35.5% FY21 FY22 FY23 FY24 FY25 Net sales O&M ratio to net sales Details by segment - Energy Solution & Marine Engineering - Appendix FY24 Q2 FY25 Q2 Effects of FX rates Change in revenue Change in product mix and other factors Change in SG & A expenses Change in share of profit(loss) of investments accounted for using equity method FCST Revenue from major products in the energy business above：components below：after-sales service (billion yen) FCST revenue from municipal waste incineration plants (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q2 Actual Q2 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST Q3-4 FCST Orders Received 211.0 237.5 + 26.4 542.0 440.0 480.0 - 62.0 + 40.0 242.5 144.9 181.3 + 36.3 354.4 340.0 380.0 + 25.6 + 40.0 198.7 Ship & Offshore Structure 66.0 56.2 - 9.8 187.6 100.0 100.0 - 87.6 - 43.8 Revenue 159.9 187.3 + 27.3 398.1 450.0 460.0 + 61.9 + 10.0 272.7 115.3 135.2 + 19.9 306.8 330.0 340.0 + 33.2 + 10.0 204.8 Ship & Offshore Structure 44.6 52.0 + 7.4 91.2 120.0 120.0 + 28.8 - 68.0 Business Profit 12.0 19.9 + 7.8 44.2 57.0 58.0 + 13.8 + 1.0 38.1 [Margin] [7.5%] [10.6%] [+ 3.1pt] [11.1%] [12.7%] [12.6%] [+ 1.4pt] [-] [14.0%] 9.4 11.5 + 2.1 22.9 25.0 26.0 + 3.1 + 1.0 14.5 Energy, Plant & Marine Machinery Energy, Plant & Marine Machinery Share of profit (loss) of investments accounted for using equity method
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 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 90.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Energy, Plant & Marine Machinery Ship & Offshore Structure 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% 11.2% 31 3 Details by Segment - Energy Solution & Marine Engineering - Revenue(billion yen) Business Profit(billion yen) FY2021 FY2022 FY2023 FY2024 FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 3 32 – Using our proprietary CO₂ capture technology, Kawasaki CO₂ Capture (KCC), we will conduct technical demonstrations for the following two applications – By using a proprietary solid sorbent, CO₂ can be separated and captured at 60°C, lower than conventional liquid absorbent methods Demonstration facility at Kobe Works (CG image) – A key project responsible for the transition from coal-fired to natural gas-fired power generation – KHI is responsible for two aboveground LNG storage tanks, LNG transfer pumps, and auxiliary equipment such as cryogenic piping – This order reflects high recognition of our proven track record of delivering over 70 cryogenic tanks in Japan and overseas, as well as our technical expertise in ultra-low temperature fields Technology to capture CO2 Direct Air Capture（DAC）1 Technology to capture CO2 from exhaust gas Post-Coｍbustion Capture（PCC）2 ※FPCC：Formosa Petrochemical Corporation Details by Segment - Energy Solution & Marine Engineering - Market Overview 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 special vessels ₋ Continuous orders for surface ship main engines and power generation systems ₋ 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 Domestic – Growth in demand for power supply to data centers, mainly for emergency use – Continued demand for renewal of aging waste incineration plants Contribution to realizing a low-carbon and decarbonized society Specific Efforts Solutions for decarbonized society Topic Kawasaki to Supply LNG Tanks for FPCC※ in Mailiao Industrial Complex, Taiwan Topic Installation of a Demonstration Facility for New Low- concentration CO2 Capture Technology at Kobe Works
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 33 3 Remained flat YoY, as a decline in automotive robots offset the increased hydraulic components orders for the construction machinery market in China +¥1.6 bil. Up due to growth in hydraulic components for the construction machinery market in China and robots for semiconductor manufacturing equipment +¥7.5 bil. Improved due to increased revenue and better equity-method earnings +¥2.3 bil. The outlook remains unchanged ±¥0.0 bil. Same as above ±¥0.0 bil. Same as above ±¥0.0 bil. Details by Segment - Precision Machinery & Robot - Orders Received (billion yen) Revenue (billion yen) Business Profit (billion yen) Note: Darker areas in the graphs represent the Q1-Q3 and lighter areas represent the Q4 cumulative total 143.8 271.8 262.0 213.3 249.2 270.0 FY21 FY22 FY23 FY24 FY25 FCST in August 270.0 FCST in August 14.0 FCST in August 260.0 143.0 252.6 252.6 227.9 241.5 260.0 FY21 FY22 FY23 FY24 FY25 9.8 13.9 8.7 - 1.9 7.0 14.0 FY21 FY22 FY23 FY24 FY25 Q2 of FY2025（vs. Q2 of FY2024） FY2025 Forecast（vs. forecast in August） Orders Received Revenue Business Profit Orders Received Revenue Business Profit
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Factors Affecting Changes in Business Profit (billion yen) 34 3 68.7 52.4 41.0 47.0 FY21 FY22 FY23 FY24 FY25 above：Q3-4 below：Q1-2 Details by Segment - Precision Machinery & Robot - Appendix FY24 Q2 FY25 Q2 Effects of FX rates Change in revenue Change in product mix and other factors Change in SG&A expenses Change in share of profit(loss) of investments accounted for using equity method FCST YoY Increase Revenue from hydraulic components to China (billion yen) Revenue of robots by segment※ (billion yen) ※Including intercompany revenue * Forecast FY24 FY25 Change Automobile assembly and painting 14.2 41.8 13.3 *40.0 - 0.9 - 1.8 Semiconductor 15.6 34.8 18.3 *38.0 + 2.7 + 3.2 General robots for industrial use and others 12.0 27.4 10.9 *32.0 - 1.0 + 4.6 Total 41.9 104.1 42.6 *110.0 + 0.7 + 5.9 above： Q1-2 below： Full Year (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q2 Actual Q2 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCSTQ3-4 FCST Orders Received 124.6 126.2 + 1.6 249.2 270.0 270.0 + 20.8 - 143.8 74.9 85.7 + 10.8 147.5 170.0 170.0 + 22.5 - 84.3 Robotics 49.7 40.5 - 9.2 101.7 100.0 100.0 - 1.7 - 59.5 Revenue 109.4 117.0 + 7.5 241.5 260.0 260.0 + 18.5 - 143.0 71.1 78.7 + 7.5 146.8 160.0 160.0 + 13.2 - 81.3 Robotics 38.3 38.2 - 0.0 94.6 100.0 100.0 + 5.4 - 61.8 Business Profit 1.9 4.2 + 2.3 7.0 14.0 14.0 + 7.0 - 9.8 [Margin] [1.8%] [3.6%] [+ 1.8pt] [2.9%] [5.4%] [5.4%] [+ 2.4pt] [-] [6.9%] - 0.8 0.0 + 0.8 - 1.5 0.0 0.0 + 1.5 - 0.0 Hydraulic Components & Systems Hydraulic Components & Systems Share of profit (loss) of investments accounted for using equity method
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 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 60.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Hydraulic Components & Systems Robotics 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% 3.2% 35 3 Details by Segment - Precision Machinery & Robot - Revenue(billion yen) Business Profit(billion yen)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 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 brand – Promotion of open strategy and expansion of collaboration and co-creation – Promotion of commercialization in the field of social robots Measures for the development of hydraulic business 36 3 Hydraulic components – Construction machinery market in China Although demand had been sluggish due to the prolonged real estate downturn, recovery is now gaining momentum, driven mainly by export models (particularly orders for large-scale mining equipment and units bound for Africa and Southeast Asia) – Global Construction Machinery Market (Excluding China) The European market is showing signs of recovery – Electrification driven by environmental regulations will advance, along with automation, autonomy, and remote operation prompted by a shortage of skilled workers at construction sites demanding site conditions requiring remote operation Robots – General purpose robots Demand remains sluggish due to US tariff policy and China’s economic slowdown, but automation demand is steadily rising, driven by increasing labor costs and labor shortages – Robots for semiconductor production Driven primarily by growth in the AI fields, demand has been recovering since H2 FY2024 and is expected to continue improving despite the impact of US–China restrictions 'Development of a Co-Creation Platform for Enhancing SI Efficiency and Creating Diverse Robotic Systems project’ was selected for a NEDO public call Topics KHI aims to promote the deployment of robots in untapped areas by building a co-creation platform Details by Segment - Precision Machinery & Robot - Market Overview Specific Efforts Electric Hydraulic System for Construction Machinery 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 Strengthening the medical robot business – Spreading the ”hinotoriTM”” (with Medicaroid and Sysmex) – Differentiation by remote control technology Strategic Challenges in the Robotics
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 25.2 37.5 71.5 48.0 47.8 30.0 FY21 FY22 FY23 FY24 FY25 367.3 447.9 591.1 592.4 609.3 660.0 FY21 FY22 FY23 FY24 FY25 37 3 Up due to higher shipments of four- wheelers for North America and two- wheelers for developed markets, despite the impact of the appreciation of the yen +¥39.4 bil. Down due to the appreciation of the yen, increased fixed costs associated with production investment, higher promotional expenses, and the impact of US tariff policy, despite increased revenue -¥10.0 bil. Revised up the outlook, reflecting stronger-than-expected demand in the US powersports market and higher motorcycle sales in emerging markets +¥40.0 bil. The outlook remains unchanged due to higher promotional expenses and tariffs, despite increased revenue ±¥0 bil. Details by Segment - Powersports & Engine - Revenue Business Profit Revenue Business Profit Qualitative information and graph are omitted because this segment is mainly engaged in estimated production, and orders received are generally the same as revenue Note: Darker areas in the graphs represent the Q1-Q2 and lighter areas represent the Q3-Q4 cumulative total FCST in August 30.0 FCST in August 620.0 Q2 of FY2025（vs. Q2 of FY2024） FY2025 Forecast（vs. forecast in August） Revenue (billion yen) Business Profit (billion yen)Orders Received (billion yen)
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Factors Affecting Changes in Business Profit (billion yen) 38 3 Details by Segment - Powersports & Engine - Appendix Note : The following table shows the trend of YoY changes in motorcycles of developed and emerging markets and regions included in "Others" Australia： China： Thailand： Wholesale volume by region (thousand units) FY24 Q2 FY25 Q2 Change FY25(FCST) Developed markets Japan 11 16 + 5 North America 43 46 + 2 Europe 33 35 + 2 Others※ 3 5 + 1 Total 91 104 + 12 235 Emerging markets Philippines 86 97 + 11 Indonesia 12 8 - 4 Latin America 5 7 + 2 Others※ 13 12 - 1 Total 118 125 + 7 290 Four-wheelers ・PWC North America and Others 23 35 + 12 85 Including a cost increase of ¥2.6 billion due to US tariff policy FY24 Q2 FY25 Q2 Effects of FX rates Change in revenue Change in product mix and other factors Change in SG&A expenses (billion yen) FY2024 FY2025 FY2024 FY2025 Forecast Q2 Actual Q2 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCSTQ3-4 FCST Revenue 253.3 292.7 + 39.4 609.3 620.0 660.0 + 50.7 + 40.0 367.3 99.1 112.2 + 13.1 245.3 225.0 250.0 + 4.7 + 25.0 137.8 47.7 48.0 + 0.3 99.2 95.0 105.0 + 5.8 + 10.0 57.0 60.8 84.7 + 23.8 169.0 205.0 210.0 + 41.0 + 5.0 125.3 45.6 47.7 + 2.1 95.5 95.0 95.0 - 0.5 - 47.3 Business Profit 14.9 4.8 - 10.0 47.8 30.0 30.0 - 17.8 - 25.2 [Margin] [5.9%] [1.7%] [ｰ 4.2pt] [7.9%] [4.8%] [4.5%] [ｰ 3.3pt] [- 0.3pt] [6.9%] Motorcycles for developed markets Motorcycles for emerging markets Utility Vehicles, ATVs & PWC General-purpose gasoline engines
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 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% - 2.4% 39 3 Details by Segment - Powersports & Engine - Revenue(billion yen) Business Profit(billion yen) FY2021 FY2022 FY2023 FY2024 FY2025
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 40 3 Parade run of a hydrogen- powered motorcycle (Paris, France) Z1100 / Z1100 SE New Z Series models released Details by Segment - Powersports & Engine - Market Overview US (Motorcycles) – Despite a softening retail market, our market share remains strong US (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 US (Common to both business above) – Additional tariffs measures 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 Expansion of the four-wheeler business and electrification – Investment in development to enhance product competitiveness – Quick response to external changes by utilizing two plants in North America (US and Mexico) – A hydrogen-powered motorcycle was showcased in a parade run during the final stage of the Tour de France – Contributing to the realization of a carbon- neutral society by utilizing a wide range of options centered on electrification Specific Efforts Advancing Business Transformation 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
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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 Standard mid- to long- term consolidated dividend payout ratio 30% IFRS Shareholder Returns DPR 30% Dividend payout ratio Non- dividend Dividend for FY2025 Planned annual dividend per share of 150 yen (dividend payout ratio 30.7%) remains unchanged Future earnings forecasts Financial conditions like free cash flow, debt-to- equity ratio, etc. 1 Considerations Overall considerations Stable dividends2
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved Project Topics4 送ガス 水素を液化 Storage Update on the Liquefied Hydrogen Supply Chain Commercialization Demonstration ー Advancing Toward a Sustainable Hydrogen Society ー 荷揚・荷降 運搬 JSE has entered into a basic design agreement with JFE Engineering, a leading company in pipeline construction with extensive experience and cutting-edge expertise. The contract covers Japan’s first high-pressure hydrogen pipeline, aimed at enabling large-scale hydrogen transportation. Project NEWS JSE and JFE Engineering Sign Basic Design Contract for Hydrogen Pipeline（September, 2025） Fabrication started at Our Harima Works for the World’s first commercial-scale above- ground flat-bottom cylindrical liquefied hydrogen storage tank (Capacity: 50,000m³) Project NEWS Fabrication of Large Liquefied Hydrogen Storage Tank Launched（October,2025 ） Selected under the NEDO Green Innovation Fund Projects, this demonstration is being implemented with public support over 10 years from FY2021 to FY2030 Of which, subsidies cover Approx.¥220bil. ※ JSE: Japan Suiso Energy, Ltd.(est. June 2021) — Focused on planning, operations and investment in the liquefied hydrogen supply chain Liquefied Hydrogen Supply Chain Commercialization Demonstration (By FY2030) Conceptual drawing for a liquefied hydrogen storage tank Ohgishima Tank Assembly Site [Current Status] Kawasaki City, Kanagawa Ohgishima (Kawasaki LH₂ Terminal) Construction Started in May 2025 Upcoming Construction Start Courtesy of: Japan Suiso Energy, Ltd. Project scale Approx. ¥300bil. 43 LH2 ShipStorage TankLiquefierPipeline Loading Arm Gas Transportation Loading and Unloading Hydrogen Liquefaction Transportation Supply of Domestically Produced Hydrogen Gas
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 4 In September 2025, JSE signed a MoU for cooperation to develop a Japan-Australia liquefied hydrogen supply chain with Woodside Energy Ltd., Australia’s leading energy company, and The Kansai Electric Power Co., Inc. The aim is to develop a supply chain for transporting hydrogen produced at the H2Perth project ※ to receiving terminals in Japan using liquefied hydrogen carriers. In August 2025, JSE accepted capital investment from the following six companies across various industrial sectors, In September 2025, Kawasaki signed a Memorandum of Understanding (MOU) for cooperation to develop a Japan-Germany hydrogen supply chain with Toyota Motor Corporation, The Kansai Electric Power Co., Inc., Daimler Truck Holding AG, and Hamburger Hafen und Logistik AG. This MoU aims to promote the international utilization of hydrogen across national and industry borders, and to develop a hydrogen supply chain with high economic value by aligning Japanese and German demand. Through this investment, JSE aims to accelerate the development of a supply chain for the production, transportation, and delivery of liquefied hydrogen. https://www.japansuisoenergy.com/ news/pdf/NR_lhchain_tp202508.pdf JSE Press release (Japanese text only) https://global.kawasaki.com/en/corp/new sroom/news/detail/?f=20250915_6397 KHI Press release https://www.japansuisoenergy.com/news/pdf/ Ja_Press%20Release_KE_JS_WE.pdf JSE Press release (Japanese text only) ※ A liquefied hydrogen production and export project promoted by Woodside Energy Ltd. in Western Australia EBARA CORPORATION, Obayashi Corporation, Tokyo Century Corporation, Development Bank of Japan Inc., Mizuho Bank, Ltd., and Mitsubishi Kakoki Kaisha, Ltd. Signing of MoU for Cooperation to Develop a Japan-Australia Liquefied HydrogenSupplyChain Third-Party Share Allotment by JSE to Support Liquefied Hydrogen Supply Chain Developing a Hydrogen Supply Chain with Global Partners ー Looking Beyond Domestic Commercialization Demonstration ー Signing of MoU for Cooperation to Develop a Japan-Germany Hydrogen Supply Chain 44 Project Topics
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 45 4 With the renewed focus on LNG, the transition period toward hydrogen is expected to be longer than previously anticipated. However, addressing climate change remains a shared global goal that cannot be ignored. In this context, there is a growing trend of replacement and upgrade projects involving hydrogen co-firing compatible equipment, with future hydrogen use in mind. This may reflect a broader recognition that leveraging LNG and existing infrastructure represents a practical solution toward achieving carbon neutrality. In April 2025, a KHI gas turbine cogeneration system※2 capable of co-firing city gas with up to 30% hydrogen by volume began operation at Nisshin OilliO Group’s Yokohama Isogo Complex. The facility was delivered as part of an energy service project, installed, owned, and operated by JFE Engineering Corporation. Nisshin OilliO is working to increase its use of non-fossil energy sources in pursuit of carbon neutrality by 2050, and considers the early establishment of Hydrogen Ready※1 as a key priority. Steady Progress in Hydrogen-Ready Product Deployment※1 ー Facilitating a Smooth Transition from LNG to a Hydrogen Society ー Motohiko Nishimura Senior Managing Executive Officer President, Energy Solution & Marine Engineering Company Hydrogen Co-Firing Gas Turbine Cogeneration System by KHI Begins Operation at Nisshin OilliO’s Yokohama Isogo Complex Case Study 40 16 440 FY23 FY24 FY25～ https://www.nisshin-oillio.com/company/ news/down2.php?attach_id=1861 The Nisshin OilliO Group, Ltd. Press release (Japanese text only) Order Record and Status of Hydrogen Co-Firing Power Generation Equipment (Total MW) ※1 A state in which hydrogen can be used immediately once the hydrogen supply infrastructure is in place ※2 Actual hydrogen co-firing requires the installation of auxiliary facilities such as hydrogen receiving systems, supply equipment, and hydrogen gas compressors （Including projects under planning） Project Topics
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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% 4.5% 3.1% 3.2% 3.0% 3.0% 2.9% 2.9% 2.3% 2.6% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 (FCST) Net Sales or Revenue (billion yen) Depreciation and Amortization Ratio to Net Sales/Revenue Ratio of R&D Expenses to Net Sales or Revenue IFRS 46 4 IFRS Appendix - CAPEX, Depreciation and Amortization, R&D Expenses, Number of Employees at End of Period - 66.9 70.4 55.6 77.6 96.3 133.7 141.1 135.0 59.0 61.2 61.2 76.9 77.3 80.9 93.4 103.0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 (FCST) CAPEX Depreciation and Amortization FY2024 FY2025 FY2024 FY2025 Q2 Actual Q2 Actual Change Actual Old FCST New FCST Chg. Vs. FY24 Chg. Vs. Old FCST CAPEX 65.6 60.3 - 5.3 141.1 154.0 135.0 - 6.1 - 19.0 43.0 50.4 + 7.3 93.4 107.0 103.0 + 9.6 - 4.0 R&D Expenses 26.1 27.2 + 1.1 48.9 64.0 60.5 + 11.6 - 3.5 Number of Employees 40,640 43,680 42,410 + 177 - 127.0 Domestic 29,072 30,610 30,690 + 162 + 8.0 Overseas 11,568 13,070 11,720 + 15 - 135.0 (billion yen, persons) Depreciation and Amortization
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 47 4 Appendix - Others - Orders Received by Quarter（billion yen) FY2023 FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Aerospace Systems 118.7 74.4 139.2 360.0 88.2 121.7 470.1 202.7 98.9 186.1 Aerospace 104.4 98.0 108.0 246.3 54.3 58.4 435.6 151.1 65.1 130.6 Aero Engine 14.2 -23.6 31.2 113.7 33.9 63.3 34.5 51.5 33.8 55.5 Rolling Stock 16.4 13.6 11.7 46.9 17.0 10.7 13.2 210.4 14.8 12.9 102.3 116.0 62.8 120.4 121.8 89.2 217.4 113.5 86.6 150.9 94.7 93.2 58.2 112.5 56.5 88.4 97.6 111.7 81.5 99.8 Ship & Offshore Structure 7.5 22.7 4.5 7.8 65.3 0.7 119.7 1.7 5.1 51.1 Precision Machinery & Robot 54.0 49.0 54.6 55.7 61.6 63.0 61.2 63.4 63.9 62.3 36.6 30.9 34.3 34.2 36.0 38.8 33.7 38.8 43.6 42.1 Robotics 17.3 18.1 20.2 21.4 25.6 24.1 27.4 24.5 20.2 20.2 Powersports & Engine 143.9 123.1 137.2 187.9 144.7 108.5 163.9 194.3 160.2 132.4 Others 21.7 27.0 23.5 22.1 23.3 45.1 0.5 24.2 21.7 24.1 Total 457.3 403.4 429.2 793.3 456.8 438.4 926.5 808.8 446.3 569.1 Hydraulic Components & Systems Energy Solution & Marine Engineering Energy, Plant & Marine Machinery
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 48 4 Appendix - Others - Orders Received and Revenue for the Ministry of Defense（billion yen） FY2024 FY2025 FY2024 FY2025 Forecast Q2 Actual Q2 Actual Change Actual Old FCST New FCST Orders Received 144.2 205.0 + 60.8 774.7 460.0 480.5 - 294.2 + 20.5 Aircraft and others 61.3 117.8 + 56.5 584.7 325.0 341.5 - 243.2 + 16.5 Aero Engines 19.2 9.8 - 9.4 38.9 32.0 34.0 - 4.9 + 2.0 Submarines & Naval propulsions 63.7 77.4 + 13.7 151.1 103.0 105.0 - 46.1 + 2.0 Revenue 147.6 158.0 + 10.4 400.8 470.0 470.0 + 69.2 - [Ratio to the company's total revenue] [16.7%] [15.9%] [18.8%] [20.5%] [20.1%] Aircraft and others 100.3 104.7 + 4.4 280.6 328.5 324.5 + 43.9 - 4.0 Aero Engines 9.2 10.4 + 1.2 25.4 31.5 28.5 + 3.1 - 3.0 Submarines & Naval propulsions 38.1 42.9 + 4.8 94.8 110.0 117.0 + 22.2 + 7.0 Chg. Vs. FY24 Chg. Vs. Old FCST
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 49 4 Appendix - Others - Order Backlog （billion yen) Order Backlog in Ship & Offshore (billion yen) Orders by Vessel Type and Delivery Year (number of ships) 76.1 90.7 70.2 98.8 119.6 174.8 156.0 231.0 101.6 85.9 104.6 110.5 179.4 136.4 228.9 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 End of Q2 End of Q4 FY25 Q2 Received Orders Actual Delivery Year Order BacklogFY25 Q2 Actual FY25 Q3~ FY26 FY27～ Plan LPG Carrier 1 2 2 4 5 11 Submarine 1 1 2 Others Total 2 2 5 6 13※1 ※2 ※ 1 Gross tonnage of delivered in FY25 Q2 : 100,800GT ※ 2 Gross tonnage of outstanding orders : 554,400GT (Submarines are excluded) FY24 Q2 FY25 Q2 Actual Actual Change Aerospace Systems 966.0 1,342.8 + 376.7 Rolling Stock 421.5 426.5 + 4.9 734.1 873.5 + 139.4 98.8 100.6 + 1.8 Powersports & Engine - 2.0 + 2.0 Others 67.1 50.7 - 16.4 Total 2,287.7 2,796.4 + 508.6 Energy Solution & Marine Engineering Precision Machinery & Robot
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 50 4 Appendix - Others - Revenue by Region （billion yen) FY2024 Q2 (billion yen) FY2025 Q2 (billion yen) ※ Classified by country or region based on the customer's location FY24 Q2 FY25 Q2 Actual Actual Change Japan 333.6 377.6 + 43.9 USA 279.6 325.5 + 45.8 Europe 98.3 102.7 + 4.4 Asia 128.5 135.8 + 7.3 Other 44.0 54.4 + 10.3 Total 884.1 996.2 + 112.0 Japan USA Europe Asia Other Total Aerospace Systems 127.9 78.0 33.3 0.0 3.2 242.5 Rolling Stock 36.6 79.5 - 3.2 - 119.3 130.4 0.1 12.4 25.7 18.5 187.3 31.0 9.3 6.9 66.5 3.1 117.0 Powersports & Engine 19.5 158.2 49.8 36.6 28.5 292.7 Others 31.9 0.1 0.1 3.7 1.0 37.1 Total 377.6 325.5 102.7 135.8 54.4 996.2 [margin] 37.9% 32.7% 10.3% 13.6% 5.5% 100.0% Energy Solution & Marine Engineering Precision Machinery & Robot Japan USA Europe Asia Other Total Aerospace Systems 117.9 72.0 41.0 0.0 3.0 234.1 Rolling Stock 20.1 63.6 - 3.2 - 87.0 114.2 0.4 7.2 22.7 15.2 159.9 30.4 9.9 6.8 60.0 2.1 109.4 Powersports & Engine 15.5 133.2 43.0 38.7 22.7 253.3 Others 35.1 0.2 0.1 3.6 0.9 40.1 Total 333.6 279.6 98.3 128.5 44.0 884.1 [margin] 37.7% 31.6% 11.1% 14.5% 5.0% 100.0% Energy Solution & Marine Engineering Precision Machinery & Robot
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved 51 4 Appendix - Others - Amount of Foreign Currency Impacting Profit and Loss by Currency※1 Weighted-average Exchange Rates (EUR/JPY) ※2 ※2 ※2 ※2 FY2023 actual 157.09 FY2024 actual 163.07 FY2025 Q2 actual 166.99 FY2025 forecast 165.00 [Formulas for Calculating ROIC] After-tax ROIC = { Profit attributable to owners of parent + Interest expenses × (1－Tax rate)} ÷Invested capital※3 ※3 Invested Capital ＝ Average net debt at beginning and end of period + average equity at beginning and end of period ※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 from loss-provisioned projects)) (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 engine FY2024 FY2025 Q2Actual Q2Actual Q3-4 FCST Aerospace Systems 0.34 0.40 0.59 Rolling Stock 0.16 0.17 - 0.01 USD 0.12 0.16 0.06 0.06 0.08 0.05 Powersports & Engine 0.35 0.32 0.29 Total 1.03 1.13 0.98 EUR 0.24 0.26 0.18 Energy Solution & Marine Engineering Precision Machinery & Robot
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© Kawasaki Heavy Industries, Ltd. All Rights Reserved