Data File 2007

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Data File 2007 DATA FILE 2007 KAWASAKI HEAVY INDUSTRIES, LTD. Code No. (7012) HISTORY Kawasaki Heavy Industries, Ltd. (KHI) traces its origins to an industrial shipyard in Tsukiji, Tokyo, established by Shozo Kawasaki in 1878. In 1896, KHI was incorporated under the laws of Japan as Kawasaki Dockyard Co., Ltd. The Company later expanded its business to include the manufacture of rolling stock, steel, steel structures, industrial machinery, automobiles and aircraft. KHI also engaged in the shipping business through the company known as Kawasaki Kisen Kaisha, Ltd., which later became an independent company. In 1939, KHI adopted its present name, Kawasaki Heavy Industries, Ltd. In 1950, KHI’s steel manufacturing division was divested and Kawasaki Steel Corporation was formed. In 1969, Kawasaki Aircraft Co., Ltd. and Kawasaki Rolling Stock Mfg. Co., Ltd., former divisions which had been divested, were merged back into KHI, forming an integrated heavy industry enterprise. KHI established a subsidiary in the United States to sell its motorcycles in 1966. In 1975, through its local subsidiary, KHI began to produce motorcycles in the United States ahead of any other Japanese producer of any type of motor vehicle. Subsequently, through its U.S. subsidiaries, KHI began to manufacture rolling stock in New York in 1986, wheel loaders in Georgia in 1987, and small gasoline engines in Missouri in 1989. In 1993, KHI established a local subsidiary to acquire a hydraulic machinery manufacturing business in Plymouth, U.K., its first production facility in Europe. In 2001, KHI built a new rolling stock plant in Lincoln, Nebraska, where we already have a motorcycle plant. The new plant started full-scale operation in April 2002. KHI also reorganized several industry segments of the Group to improve profitability, including spinning off the shipbuilding, hydraulics, plant engineering businesses. In 2002,Kasawaki Shipbuilding Corporation and Kawasaki Precision Machinery, Ltd., in 2005, Kawasaki Plant Systems, Ltd. was established as wholly owned subsidiary. KHI has been seeking to expand its activities in Asia. KHI has wholly owned subsidiary in Thailand and joint ventures in Malaysia, the Philippines and Indonesia to manufacture motorcycles as well as a shipbuilding joint venture in China and other production and/or sales facilities in China, Malaysia, the Philippines and Korea. CONTENTS FINANCIAL HIGHLIGHTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1 KEY INDICATORS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2 SEGMENT INFORMATION ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4 OVERSEAS SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5 OPERATIONS BY SEGMENT SHIPBUILDING ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6 ROLLING STOCK・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8 AEROSPACE・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10 GAS TURBINES & MACHINERY・・・・・・・・・・・・・・・・・・・・・・・・・・ 13 PLANT & INFRASTRUCTURE ENGINEERING ・・・・・・・・・・・・・ 16 CONSUMER PRODUCTS & MACHINERY ・・・・・・・・・・・・・・・・・19 CONDENSED BALANCE SHEETS ・・・・・・・・・・・・・・・・・・・・・・・・・・ 22 CONDENSED STATEMENTS OF INCOME ・・・・・・・・・・・・・・・・・・・23 STOCK INFORMATION ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 24 FINANCIAL HIGHLIGHTS Kawasaki Heavy Industries, Ltd. and consolidated subsidiaries Years ended March 31 Millions of yen 2003 2004 2005 2006 2007 For the year: Net sales \1,239,598 \1,160,252 \1,241,592 \1,322,487 \1,438,619 Net income 13,022 6,333 11,479 16,467 29,772 Net income per share (yen) 9.3 4.4 7.9 11.2 18.9 Return on average shareholders' equity (%) 7.4% 3.4% 5.7% 7.3% 11.1% Cash dividends per share (yen) \2 2.0 2.5 3.0 5.0 At year end: Total assets 1,149,161 1,156,904 1,194,473 1,284,085 1,357,980 Working capital 137,771 121,941 138,523 113,240 155,412 Current ratio (%) 120.0% 118.0% 119.8% 114.1% 119.3% Total shareholders' equity 174,585 190,175 201,465 237,588 290,428 Net Sales Total Assets Years ended March 31 (Billion \) As of March 31 (Billion \) 1,600 1,439 1,600 1,322 1,358 1,400 1,240 1,242 1,400 1,284 1,160 1,149 1,157 1,194 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Net Income (Loss) Total Shareholders' Equity Years ended March 31 (Billion \) As of March 31 (Billion \) 290.4 35 300 29.8 30 250 237.6 25 190.2 201.5 200 174.6 20 16.5 150 15 13.0 11.5 100 10 6.3 5 50 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 1 KEY INDICATORS (CONSOLIDATED BASIS) Ratio of Operating Income to Sales Earnings per Share Return on Sales Cash Flow per Share Years ended March 31 Years ended March 31 (%) (\) 5 40 4 30 3 20 2 10 1 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Operating Income to Sales -■- EPS ■ 9.3 4.4 7.9 11.2 18.9 2.46 1.92 1.99 3.16 4.81 CFPS ■ 32.1 27.0 29.8 32.0 38.2 ROS -◆- 1.05 0.55 0.92 1.25 2.07 Earnings per Share: Net Income/Average Number of Operating Income to Sales: Operating Income/Net Sales. Shares Outstanding. ROS: Net Income/Net Sales. Cash Flow per Share: (Net Income + Depreciation) /Average Number of Shares Outstanding. Return on Shareholders' Equity Return on Assets Book Value per Share Years ended March 31 As of March 31 (%) (\) 15 200 150 10 100 5 50 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 ROE -■- 7.4 3.4 5.7 7.3 11.1 125.6 131.8 139.7 152.5 175.0 ROA -◆- 1.1 0.5 1.0 1.3 2.3 Book Value per Share: Total Shareholders' Equity/ ROE: Net Income/Average Shareholders' Equity. Number of Shares Outstanding. ROA: Net Income/Average Total Assets. 2 Net Sales per Employee Interest Coverage Years ended March 31 Years ended March 31 (million \) (Multiples) 60 12 50 10 40 8 30 6 20 4 10 2 0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 43.28 39.59 43.29 45.73 49.25 3.42 3.54 4.44 8.37 10.97 Net Sales per Employee: Net Sales/Number of Employees. Interest Coverage: (Operating Income + Interest and Dividend Income)/Interest Expense. Asset Turnover Debt to Equity Ratio Years ended March 31 Years ended March 31 (Multiples) 1.2 250 1.0 200 0.8 150 0.6 100 0.4 0.2 50 0.0 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 1.03 1.01 1.06 1.07 1.09 210 187 154 119 91 Asset Turnover: Net Sales/Average Total Assets. Debt to Equity Ratio: (Interest Bearing Debt- Cash on Hand and in Banks) /Total Shareholders' Equity. 3 SEGMENT INFORMATION Years ended March 31 (Billion \) Other NET SALES OPERATING INCOME 1,600 80 Consumer Products & 1,400 70 Machinery 60 Plant & 1,200 Infrastructure 50 Engineering 1,000 Gas Turbines & 40 Machinery 800 30 Aerospace 600 20 400 10 Rolling Stock 0 200 Shipbuilding -10 0 2005 2006 2007 2005 2006 2007 -20 Net Sales (Billion \) 2005 2006 2007 Shipbuilding 87.1 109.7 108.8 Rolling Stock 171.7 168.3 184.3 Aerospace 188.3 218.5 269.1 Gas Turbines & Machinery 141.4 161.4 183.3 Plant & Infrastructure Engineering 191.0 164.5 122.1 Consumer Products & Machinery 338.5 367.0 403.7 Other 123.7 133.1 167.3 Total 1,241.6 1,322.5 1,438.6 Operating Income (Loss) (Billion \) 2005 2006 2007 Shipbuilding 1.0 (1.7) (2.2) Rolling Stock 7.8 8.8 13.2 Aerospace 6.1 9.7 13.4 Gas Turbines & Machinery 2.7 6.8 9.8 Plant & Infrastructure Engineering (14.5) (8.5) (2.4) Consumer Products & Machinery 16.7 19.9 27.6 Other 5.0 6.7 9.6 Net Operating Income 24.7 41.8 69.1 Ratio of Operating Income to Sales 2005 2006 2007 Shipbuilding 1.2% (1.7%) (2.1%) Rolling Stock 4.5% 5.2% 7.1% Aerospace 3.2% 4.4% 5.0% Gas Turbines & Machinery 1.9% 4.2% 5.4% Plant & Infrastructure Engineering (7.6%) (5.2%) (2.0%) Consumer Products & Machinery 4.9% 5.4% 6.8% Other 3.9% 4.9% 5.8% Total 2.0% 3.2% 4.8% 4 Years ended March 31 (Billion \) Other ORDERS RECEIVED ORDER BACKLOG 1,600 1,600 Consumer Products & 1,400 1,400 Machinery Plant & 1,200 1,200 Infrastructure Engineering 1,000 1,000 Gas Turbines & Machinery 800 800 Aerospace 600 600 Rolling Stock 400 400 200 200 Shipbuilding 0 0 2005 2006 2007 2005 2006 2007 (Billion \) Orders Received Order Backlog 2005 2006 2007 2005 2006 2007 Shipbuilding 155.8 128.3 135.6 263.7 289.2 314.0 Rolling Stock 178.4 203.2 269.1 300.8 346.3 434.4 Aerospace 214.7 229.3 255.6 287.4 301.6 286.7 Gas Turbines & Machinery 162.7 188.1 204.8 163.4 195.1 216.9 Plant & Infrastructure Engineering 126.4 97.3 150.2 210.2 144.1 172.3 Consumer Products & Machinery 338.5 367.0 403.7 0.0 0.0 0.0 Other 125.4 138.5 173.6 28.8 34.1 40.9 Total 1,301.8 1,351.6 1,592.7 1,254.4 1,310.4 1,465.2 OVERSEAS SALES Years ended March 31 2007 2007 Million \ % against Other net sales Areas North America 336,765 23.4% 9.4% Europe 119,408 8.3% Asia Asia 186,066 12.9% 12.9% Other Areas 135,506 9.4% Domestic Total Overseas Sales 777,745 54.0% Sales Europe 46.0% Domestic Sales 660,874 46.0% 8.3% Net Sales 1,438,619 100.0% North America 23.4% 5 Shipbuilding (Years ended March 31) -Consolidated Basis- (Million \) 2003 2004 2005 2006 2007 Sales 105,458 94,939 87,081 109,697 108,849 Orders Received 110,926 123,756 155,832 128,323 135,600 Order Backlog 173,304 193,705 263,707 289,227 313,987 (Years ended March 31) (Million \) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2003 2004 2005 2006 2007 Sales Orders Received Order Backlog (Years ended March 31) -Parent (until 1st half of 2003) and Kawasaki Shipbuilding Corporation (from 2nd half of 2003) - (Million \) 2003 2004 2005 2006 2007 Sales 101,748 92,043 83,655 105,108 104,795 Newly Constructed Ships 90,649 77,507 74,241 90,763 94,146 Exports 66,135 56,448 50,617 64,617 74,729 Orders Received 107,201 121,766 151,799 124,066 131,268 Order Backlog 173,081 194,388 263,503 289,387 313,869 Note: Shipbuilding business in "Kawasaki Heavy Industries, Ltd.
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