Report of Earnings and Financial Statements for the Fiscal Year Ended March 31, 2017 (Consolidated) (PDF:754.9K )

(Prepared pursuant to Japanese GAAP)

Listed company's name: Kawasaki Heavy Industries, Ltd.

Listed on: 1st sections of the TSE, and NSE

Stock code: 7012

URL: http://www.khi.co.jp/

Representative: Yoshinori Kanehana, President

Contact: Hajime Asano, Senior Manager, Accounting Department

Tel: +81 3-3435-2130

Scheduled dates:

Ordinary general meeting of shareholders June 28, 2017 Commencement date of dividend payments June 29, 2017 Submission of financial statements June 28, 2017

Supplementary materials to financial results Available

April 27, 2017

Earnings presentation Conducted (for institutional investors and analysts)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (April 1, 2016 - March 31, 2017)

   (Amounts in million yen rounded down to the nearest million yen)

2. Operating Results

   Years ended March 31 (Million yen ) (Percentage figures indicate change compared with the previous fiscal year )

   Net sales		Operating income		Recurring profit		Net income attributable to owners of parent
   2017	%		%		%		%
   	1,518,830	(1.4)	45,960	(52.1)	36,671	(60.6)	26,204	(43.0)
   2016	1,541,096	3.6	95,996	10.0	93,229	10.6	46,043	(10.8)

   Note: Comprehensive income Fiscal year ended March 31, 2017: ¥ 25,335 million 25.2%

   Fiscal year ended March 31, 2016: ¥ 20,230 million (76.9%)

   Years ended March 31

   Earnings per share	Earnings per share - diluted	Return on equity	Return on assets	Operating income to net sales
   2017	Yen	Yen	%	%	%
   	15.68	-	6.0	2.2	3.0
   2016	27.56	-	10.6	5.6	6.2

   For reference: Equity in income of non consolidated subsidiaries and affiliates

   Fiscal year ended March 31, 2017: ¥ 5,537 million

   Fiscal year ended March 31, 2016: ¥ 2,876 million

3. Financial Condition

   March 31 (Million yen)

   Total assets	Net assets	Equity ratio	Net assets per share
   2017	1,687,363	451,327	%	Yen
   			25.9	261.73
   2016	1,620,458	445,625	26.6	258.21

   For reference: Shareholders' equity March 31, 2017: ¥ 437,247 million

   March 31, 2016: ¥ 431,368 million

4. Cash Flow Position

5. Years ended March 31 (Million yen)

   Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
   2017	93,514	(64,879)	(15,850)	50,722
   2016	86,059	(74,185)	(23,400)	37,832

6. Dividends

   Years ended/ending March 31

   Record date or term	Dividend per share					Total dividends paid (annual)	Payout ratio (consolidated)	Dividends / Net assets (consolidated)
   	1Q	2Q	3Q	Year-end	Full year
   2016	Yen	Yen	Yen	Yen	Yen	million yen	%	%
   	-	5.00	-	7.00	12.00	20,047	43.5	4.6
   2017	-	4.00	-	2.00	6.00	10,023	38.2	2.3
   2018 (forecast)	-	-	-	-	6.00		27.8

   Notes: The interim dividend and year-end dividend for the fiscal year ending March 31, 2018, have not been determined.
7. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2018
8. (April 1, 2017 - March 31, 2018)

   (Million yen)(Percentage figures indicate change compared with the previous fiscal year)

   Net sales		Operating income		Recurring profit		Net income attributable to owners of parent		Earnings per share
   %		%		%		%		Yen
   Full year	1,555,000	2.3	58,000	26.1	51,500	40.4	36,000	37.3	21.54

   Notes: The company has decided not to disclose an earnings outlook for the fiscal second quarter, beginning with the fiscal year ending March 31, 2018. This decision is based on the fact that the Group manages operating performance mainly on a fiscal year basis. *Notes

9. Changes affecting the status of material subsidiaries (scope of consolidation): None

10. Changes in accounting policies, changes in accounting estimates, and correction of errors (ⅰ) Changes in accounting policies in accord with revisions to accounting standards: None (ⅱ) Changes in accounting policies other than (ⅰ): None

    (ⅲ) Changes in accounting estimates: None (ⅳ) Correction of errors: None

11. Number of shares issued and outstanding (common stock)

(ⅰ) Number of shares issued as of period-end (including treasury stock) March 31, 2017: 1,670,805,320 shares

March 31, 2016: 1,670,805,320 shares

(ⅱ) Number of shares held in treasury as of period-end March 31, 2017: 259,108 shares

March 31, 2016: 228,992 shares

(ⅲ) Average number of shares during respective periods March 31, 2017: 1,670,561,157 shares

March 31, 2016: 1,670,591,977 shares

*Report of Earnings and Financial Statements are not subject to audit. *Appropriate Use of Financial Forecasts and Other Important Matters

Forward-Looking Statements

These materials contain earnings forecast and other forward-looking statements based on information available to the company at the time of disclosure and the company makes no assurances as to the actual results and/or other outcomes, which may differ from those expressed or implied herein due to various factors. For assumptions underlying earnings forecasts and other information regarding the use of such forecasts, refer to "(4) Consolidated earnings outlook" on page 5 in section "1. Overview of operating results" in the Accompanying Materials.

How to Obtain Supplementary Briefing Material on Financial Results and Details of the Financial Results Briefing

The Company plans to conduct a briefing for institutional investors and analysts on Thursday April 27, 2017, and to post the briefing material on financial results to be used for the briefing on TDnet and the Company's website simultaneously with the announcement of financial results.

Accompanying Materials - Contents

1. Overview of operating results	5
(1) Consolidated operating results	5
(2) Consolidated financial condition	8
(3) Cash flows	8
(4) Consolidated earnings outlook	9
2. Basic rationale for selecting accounting standards	10
3. Consolidated Financial Statements	11
(1) Consolidated balance sheets	11
(2) Consolidated statements of income and comprehensive income	13
(3) Consolidated statement of changes in net assets	15
(4) Consolidated statements of cash flows	17
(5) Notes on financial statements Notes on the going-concern assumption	18 18
Related to consolidated statements of income	18
Segment information and others Per share data Material subsequent events	20 24 24
4. Others	25
(1) Consolidated orders and sales	25
(2) Supplementary information on earnings forecasts for the fiscal year ending March 31, 2018	26