Kawasaki Heavy Industries revised financial performance for the year ending Mrach of 2015

Kawasaki Heavy Industries, Ltd. (KHI) is announcing today a revision of the forecast for performance and dividend forecast published on July 30, 2014, for the fiscal year ending March 31, 2015, as follows.

１．Revision of the Forecast for Performance
（１） Revision of the Forecast for Performance for the fiscal year ending March 31, 2015 (Consolidated)
２）Reasons for the Revision Economic environments surrounding our company have remained steady, although uncertainty is still remaining in the euro area and emerging countries. In addition, foreign exchange market indicates yen depreciation more than initially expected and taking into consideration of these economic circumstances, we have reviewed the earnings forecast for the fiscal year ending March 31, 2015, as a result, Sales is expected to achieve 1 trillion and 510 billion yen (increased 20 billion yen from our previous announcement on July 30). In regards to the profit, despite decrease of profit margin in emerging countries over the motorcycle may cause declining profits, under favor of overall impacts of yen depreciation, operating income is expected to achieve 77 billion yen (increased 4 billion yen from our previous announcement), recurring profit to 72 billion yen (increased 6 billion yen from our previous announcement) and net income to 48 billion yen (increased 5.5 billion yen from our previous announcement).

Our forecast is based on the following foreign currency exchange rate: 1US dollar=105yen, 1Euro=135yen.

２． Revision of the year-end dividend forecast for the fiscal year ending March 31, 2015.
１）Contents of revision
２）Reasons for the Revision KHI, regarded as a social flagship infrastructure company, has been planning to pay out appropriate profits to the shareholders in cyclical processes to maintain and strengthen under our basic policy of meeting our shareholder’s expectation appropriately, conduct our businesses to im prove corporate value by implementing performance-related dividend distribution with due consi derations to be fulfilled retained earnings. To achieve these targets, we set consolidated dividend payout ratio approximately 30% into the medium and long term basis. KHI had expected to pay cash dividend ¥4.00 per share for the year ending previously announced on July30, 2014, however, after taking into consideration of current our business circumstances, such as essential strategic investment for enhancing the corporate value, business performance trends and improvement of financial strength, KHI has decided to incr ease ¥1.00 per share from prior dividend decision as the year-end dividend forecast.

Source: Kawasaki Heavy Industries, Ltd