Jan. 31, 2017 Flash Report for the Third Quarter of the Fiscal Year Ending March 31, 2017 (Consolidated Basis) (PDF:145.7K )

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES FLASH CONSOLIDATED FINANCIAL RESULTS

January 31, 2017

For nine months ended December 31, 2016 and 2015 and one year ended March 31, 2016 (Consolidated)

Operating results

Millions of yen Thousands of U.S. dollars

Nine months ended Nine months ended Nine months ended

Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2016

Net sales 1,043,052 1,065,556 $ 8,950,931

Operating income 22,875 66,838 196,301

Profit attributable to owners of parent 17,974 29,574 154,243

Earnings per share (Yen) 10.7 17.7

Financial position

Millions of yen / Thousand shares

Thousands of U.S. dollars

As of As of As of

Dec. 31, 2016 Mar. 31, 2016 Dec. 31, 2016

Total assets 1,798,417 1,620,458 $ 15,433,081

Net assets 426,077 445,625 3,656,371

Number of shares issued and outstanding 1,670,551 1,670,576

Equity Ratio 22.9% 26.6%

Cash flows

Millions of yen

Thousands of U.S. dollars

Nine months ended Nine months ended Nine months ended

Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2016

Operating activities (147,276) (190,735) $ (1,263,846)

Investing activities (46,851) (52,523) (402,050)

Financing activities 206,284 235,658 1,770,222

Cash and cash equivalents at end of term 48,719 40,247 418,081

Fiscal year forecast

Millions of yen

Net sales Operating income Profit attributableto

owners of parent

One year ending March 31, 2017 1,520,000 40,000

21,000

Notes : 1. This "FLASH CONSOLIDATED FINANCIAL RESULTS" and following financial statements have been prepared in conformity with generally accepted accounting principles and practices in Japan.

2. All US$ amounts in these statements represent the arithmetical results of translating Japanese yen to U.S. dollars on the basis of ￥116.53=$1, the rate prevailing as of December 31, 2016, solely for the convenience of the readers.

Condensed Consolidated Balance Sheets

As of December 31 and March 31, 2016

Assets :

Current assets :

Thousands of

Millions of yen U.S. dollars

As of As of As of

Dec. 31, 2016 Mar. 31, 2016 Dec. 31, 2016

Cash on hand and in banks	53,451	42,157	$ 458,688
Receivables, less allowance	511,800	396,750	4,392,002
Inventories	539,225	492,965	4,627,349
Other current assets	91,703	86,031	786,948
Total current assets	1,196,179	1,017,903	10,264,987
Investments and long-term loans less allowance	92,505	106,303	793,829
Net property, plant and equipment	450,687	436,558	3,867,563
Intangible and other assets	59,046	59,694	506,702
Total assets Liabilities and net assets :	1,798,417	1,620,458	$ 15,433,081

Current liabilities : Short-term borrowings

and current portion of long-term debt		325,607		116,047	$ 2,794,190
Payables	332,580	329,903	2,854,029
Advances from customers	162,605	170,454	1,395,391
Other current liabilities	131,000		151,307		1,124,175
Total current liabilities	951,792		767,711		8,167,785

Long-term liabilities :

Long-term debt, less current portion	297,816	282,377	2,555,703
Others	122,732	124,745	1,053,222
Total long-term liabilities	420,548	407,122	3,608,925

Net assets :

Common stock	104,484	104,484	896,627
Capital surplus	54,393	54,394	466,772
Retained earnings	279,218	279,627	2,396,104
Treasury stock	(94)	(86)	(806)
Net unrealized gains on securities	3,133	2,705	26,885
Gains (losses) on hedging items	(4,940)	693	(42,392)
Foreign currency translation adjustments	(7,197)	8,990	(61,760)
Remeasurements of defined benefit plans	(16,443)	(19,439)	(141,106)
Non-controlling interests	13,523	14,257	116,047
Total net assets	426,077	445,625	3,656,371
Total liabilities and net assets	1,798,417	1,620,458	$ 15,433,081

Condensed Consolidated Statements of Income

For nine months ended December 31, 2016 and 2015

Thousands of

Millions of yen U.S. dollars

Nine months ended Nine months ended

Dec. 31, 2016 Dec. 31, 2015

％

Change

Nine months ended

Dec. 31, 2016

Net sales 1,043,052 1,065,556 -0% $ 8,950,931

Cost of sales 877,767 861,785 7,532,541

Gross profit 165,285 203,771 1,418,390

Selling, general and administrative expenses 142,410 136,933 1,222,089

Operating income 22,875 66,838 -66%196,301

Other income (expenses) :

Interest and dividend income	863	797	7,405
Equity in income of unconsolidated
subsidiaries and affiliates	4,821	2,124	41,371
Interest expense	(2,187)	(2,756)	(18,767)
Other, net	(1,162)	(19,354)	(9,971)
Income before income taxes and
non-controlling interests	25,210	47,649	216,339
Income taxes	(6,078)	(16,767)	(52,159)
Profit (loss) attributable to non-controlling interests	(1,158)	(1,308)	(9,937)
Profit attributable to owners of parent	17,974	29,574	-39%	$ 154,243