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Investor Presentaiton

1 Consolidated Results for FY2020 -Income Statement- (Billion Yen) Details FY2019 FY2020 Change % % Net Sales 1,641.3 100.0 1,488.4 100.0 152.8 Cost of sales 1,370.8 83.5 1,297.3 87.2 - 73.4 Gross profit 270.5 16.5 191.1 12.8 79.3 Selling, general and administrative expenses 208.4 12.7 196.4 13.2 11.9 Salaries and allowances 56.6 56.9 + 0.3 1 Research and development expenses 52.6 44.9 7.6 2 Others 99.2 94.5 4.6 Operating Income (Loss) 62.0 3.8 - 5.3 - 0.4 67.3 Non-operating Income / Expenses - 21.6 2.4 + 24.0 (3 Gain and loss on foreign exchange - 8.4 4.0 + 12.5 Net Interest expense (incl. dividend income) Equity in income of - 2.6 - 0.9 + 1.6 4 unconsolidated subsidiaries and affiliates 1.2 0.4 - 0.8 5 Payments for the in-service issues 11.5 + 11.5 of commercial aircraft jet engines Reversal of payments for the in-service issues of commercial aircraft jet engines 6 3.3 + 3.3 Others 0.2 - 4.3 4.1 Recurring Profit (Loss) 40.4 2.5 - 2.8 - 0.2 43.2 © Kawasaki Heavy Industries, Ltd. All Rights Reserved 1 Reduction of hydrogen related costs (¥5.8bn) 2 Reduction of sales promotion costs and travel expenses 3 Yen/US$ rate 108.83 March 31, 20 110.72 March 31,'21 ④ Improvement in NACKS and DACKS (ship & offshore) Deterioration in Medicaroid ⑤ Decrease in payments for the in-service issues of Trent 1000 Reversal of payments for the in-service issues of Trent1000 Kawasaki Powering your potential 5
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