Group Vision 2030 Business Direction: Details
Group Vision 2030Business Direction: DetailsNovember 2, 2020Kawasaki Heavy Industries, Ltd.Yasuhiko Hashimoto,President and Chief Executive Officer Kawasaki Heavy Industries, Ltd. All Rights Reserved1
Tr u s t w o r t hy S o l u t i o n s fo r t h e F u t u r eFrontier Kawasaki Heavy Industries, Ltd. All Rights ReservedNew ValuesCross Over2
1. Kawasaki's Solutions to Social Issues2. Structure for Creating Solutions（Restructuring of the Business Portfolio）3. Scenario for Growth Kawasaki Heavy Industries, Ltd. All Rights Reserved3
Solutions through Advances in Transportation Devices for a Safe and Secure Society Kawasaki Heavy Industries, Ltd. All Rights Reserved4
Expanded the Business in the US, after Starting the Plant Construction first as acompany from the Japanese Automobile IndustryDemand Increase on Off-Road Motorcycles and Four-WheelersIncreasing focus on off-road motorcycles and four-wheelers as leisureactivities ensuring social distancing. Kawasaki Heavy Industries, Ltd. All Rights Reserved5
Achieved Significant Growth after Starting the Stand-By Gas Turbine BusinessFirst in Japan in 1976Gas Turbines, Gas Engines, CCPPs driven by Clean Energy, etc.5G/6GOut of the total 1,035 units of the company’s stand-bygas turbines installed at areas affected by poweroutages due to the Great East Japan Earthquake,1,034 had been operated.Domestic Market Shareon Stand-by Gas Turbines81%FY2019* The only gas turbine that failed to operatewas one that had not received maintenance. Kawasaki Heavy Industries, Ltd. All Rights Reserved6
Contributed to Japan as the Leader in Robotics since its start of RobotDevelopment and Manufacturing in 1968 which was the First in JapanContinued to expand the technology to new fields; proposing new ways of robotics inthe field of medical care, coexistence, remote-coexistence, etc.Robot technology enablinglabor saving and supportingthe aging society Kawasaki Heavy Industries, Ltd. All Rights Reserved7
Contributed to the World as the Pioneer in Hydraulic EquipmentEntered the Chinese market two decades ago and greater results havebeen generated.Sales on shovels after April increased by appx. 50%,compared to the previous year supported by post COVID-19（hundred thousand units）economic stimulus measures implemented by the Chinese Government.30Demand of Shovels in China (accumulated total)20FY202010FY201945 Kawasaki Heavy Industries, Ltd. All Rights Reserved6789101112123 （month）8
For the FuturePopulation: Decreasing birthrateand the aging populationRemotely-connected societyGlobal environment Kawasaki Heavy Industries, Ltd. All Rights ReservedPandemics/disastersEnergy9
Kawasaki’s Focal Fields of Business in the Futureー Opening Up Frontiers from Our Unique Perspective[1] A Safe and Secure Remotely-Connected Society[2] Near-Future Mobility(Transforming the Movement of People and Freight)[3] Energy and Environmental Solutions Kawasaki Heavy Industries, Ltd. All Rights Reserved10
Realize a Safe and Secure Remotely-Connected Societythrough Medical / Healthcare Business Kawasaki Heavy Industries, Ltd. All Rights Reserved11
Healthcare: Robotic Assisted Surgery SystemMinimally invasive to reduce patient physical and mental burden Telesurgerywith minimal numbers of medical staffSurgeonTelesurgeryOperating theater Kawasaki Heavy Industries, Ltd. All Rights Reserved12
PCR Testing BusinessContributing to reopening society and restoring people’s mobilityin collaboration with national and local governments Kawasaki Heavy Industries, Ltd. All Rights Reserved13
PCR Testing Business1. Shortening testing times using internationally-accepted methods (testing in 80 minutes)2. Automation using robotsreduces the workload of physicians and other medical professionals3. Simplifying operation while also ensuring safety of remote control4. Mass production initiatives in compliance with Ministry of Health,Labour and Welfare and the Japan Medical Association requirements5.Enabling space-saving installation(Fits in a 40ft container and can be moved) Kawasaki Heavy Industries, Ltd. All Rights Reserved14
PCR Testing Business StructureTesting business run in airports, in cities and event venuesAirport, Cities,KawasakiEvent Venues, stablish a Mass Testing Structure（tens of thousands of tests per day)To deploy it at airports, in cities and event venuesDeploy at hospitals via Medicaroid and Sysmex Kawasaki Heavy Industries, Ltd. All Rights ReservedHospitals,Health Care Centers, etc.15
PCR Testing Business PlanProviding business that enables the issue of“Certificate of Negative Test Result” for hundreds ofRollout to overseasairports and event venuesthousands to millions in a day;focusing on international travel, large-scale sporting events.October Announcement on Demonstration SystemsNovember Commencement of Demonstration of Specimen Tests in KobeDeployment indomestic airports / HospitalAnnouncement on PCR Testing Robots（Cooperation with Kobe City and Hyogo Prefecture）Start developmentMarch 2020June 2020 Kawasaki Heavy Industries, Ltd. All Rights ReservedOctober 2020 November 2020December 2020 January 202116
Offering New Ways of Living and Workingto Realize a Safe and Secure Remotely-Connected Society Kawasaki Heavy Industries, Ltd. All Rights Reserved17
Offering New Ways of Living and Working to Realize a Remotely-Connected SocietyRealization of a society inclusive of all Free of restrictions at any time Possible from anywhere including remote operationand isolated locations People who have previously struggled to engagein social activitiesWithin JapanRemote work infactory manufacturingPractical operations using robots and remote controlProfound changes to the ways people currently live and workOverseas Kawasaki Heavy Industries, Ltd. All Rights Reserved18
Practical operations using robots and remote controlGrinding work(Development of a remote control system using 5G)Patient care(Move, Work, Communication)Painting work Kawasaki Heavy Industries, Ltd. All Rights Reserved19
Realize a Safe and Secure Remotely-Connected Societyby using Life Saving Devices Kawasaki Heavy Industries, Ltd. All Rights Reserved20
Protecting Life and Property from DisastersSolutions using a variety of transportation devices and power generation equipmentC-2Transport AircraftOff-road four-wheelers and motorcycles Kawasaki Heavy Industries, Ltd. All Rights ReservedMedical Service HelicoptersStandby Generator Sets21
Hospital ships capable of telemedicine using robotsMedical Service HelicoptersTelesurgeryStandby Generator SetsOff-road four-wheelersand motorcycles Kawasaki Heavy Industries, Ltd. All Rights Reserved22
Kawasaki’s Focal Fields of Business in the Futureー Opening Up Frontiers from Our Unique Perspective[1] A Safe and Secure Remotely-Connected Society[2] Near-Future Mobility(Transforming the Movement of People and Freight)[3] Energy and Environmental Solutions Kawasaki Heavy Industries, Ltd. All Rights Reserved23
Changing the Future Movement of People and FreightGrowth e-commerce Kawasaki Heavy Industries, Ltd. All Rights ReservedUrban congestionSharing economy24
Embracing the Challenge of New Business FieldsCommercializing new personal mobility that enables anyoneto move around safely and effortlessly*Electric three-wheelers inspired through our business idea suggestion system which encouragesemployees to take on new challenges Kawasaki Heavy Industries, Ltd. All Rights Reserved25
Changing the Future Movement of People and FreightRoboticsMobilityAviationProviding new solutions Kawasaki Heavy Industries, Ltd. All Rights Reserved26
Autonomous logistics system utilizing new mobilityRevolution by Autonomousand Remote Control TechnologiesProviding solutions to issues related to decline in the labor force population Kawasaki Heavy Industries, Ltd. All Rights Reserved27
Kawasaki’s Focal Fields of Business in the Futureー Opening Up Frontiers from Our Unique Perspective[1] A Safe and Secure Remotely-Connected Society[2] Near-Future Mobility(Transforming the Movement of People and Freight)[3] Energy and Environmental Solutions Kawasaki Heavy Industries, Ltd. All Rights Reserved28
Toward DecarbonizationRealization of a society utilizing “hydrogen”- the ultimate clean energy, emitting no carbon dioxideat the point of use Kawasaki Heavy Industries, Ltd. All Rights Reserved29
Cost is a barrier to the widespread use of hydrogen energyEnergy prices(within Japan)Future of the potential of introducing hydrogen, viewed from the history of introducing LNG3.02.0LNGHydrogenThe key to realization islarge-scale implementation1.00.01970s202020302050*Rate of oil price Kawasaki Heavy Industries, Ltd. All Rights Reserved30
Large-scale utilization and transportation of low-cost hydrogen from ton/day2020Technologydemonstration Kawasaki Heavy Industries, Ltd. All Rights Reserved203020402050Commercial chain31
Liquefied Hydrogen: Realizing Large-Scale TransportationEmbracing the challenge ofcryogenic temperatures Kawasaki Heavy Industries, Ltd. All Rights Reserved32
Liquefied Hydrogen: Realizing Large-Scale TransportationKawasaki's world-classinsulation technology Kawasaki Heavy Industries, Ltd. All Rights Reserved（-162 ）Technology developed for LNGcarriers and storage tanks33
Kawasaki's Cryogenic Technology Enables Large-Scale TransportationStorage of very large amounts of liquefiedhydrogen at -253 C for extended periods of timeWorld's first liquefied hydrogen carrierJapan's largest liquefied hydrogen storage tankRealized through a giant double-wall low-temperature insulation structure Kawasaki Heavy Industries, Ltd. All Rights Reserved34
Increasing hydrogen demandOverseasCO2-free hydrogenFor powergenerationDomestic hydrogenFor mobilityDomestic industrial use2020 Kawasaki Heavy Industries, Ltd. All Rights Reserved20252030205035
Power generation using hydrogen as fuelA technical issue with hydrogen combustion isthe generation of nitrogen oxides (pollutants)in the high-temperature areas of the engineThe issue was resolved with Kawasaki’sunique technology.Kawasaki has successfully demonstrateda gas turbine using 100% hydrogen fuel,a world first in an urban area. Kawasaki Heavy Industries, Ltd. All Rights Reserved36
Jet Engines Fueled with HydrogenUtilizing Kawasaki’s Hydrogen Combustion Technology for AircraftsEuropean aircraft manufacturers to commercializepassenger planes fueledwith hydrogen by 2035Targeting to complete demonstration by 2030 for aircraft engine combustors Kawasaki Heavy Industries, Ltd. All Rights Reserved37
On the Leading Edge of Pioneering the Hydrogen SocietyForecast 2050 hydrogen market size: 2.5trillionKawasaki has already received numerous inquiries about projectsfrom the likes of governments, private organizations, energy companies,and transportation companies in many countries around the world Kawasaki Heavy Industries, Ltd. All Rights Reserved38
Hydrogen-Related Projects Currently UnderwayApproximately 50 inquiries from around the worldWithin JapanParticipating in atotal of ninefeasibility studiesOverseasParticipating in a total of 10 feasibilitystudies including in Australia, Europe,and Southeast Asia Kawasaki Heavy Industries, Ltd. All Rights Reserved39
Main Hydrogen-Related BusinessesRolling out a wide range of businesses, across the entire value chainLicensingbusinessAdded valueCorecomponentsTanks, liquefactionsystems, supplysystems, etc.EnergybusinessEndproductsPlanning and development Kawasaki Heavy Industries, Ltd. All Rights ReservedProducts and systemsService and operations40
Hydrogen Business ScaleNet sales ofScaleincreaseNet sales of120.0billion yen300.0billion yenParticipation inoverseas projectsTechnology demonstration2020 Kawasaki Heavy Industries, Ltd. All Rights Reserved2030204041
1. Kawasaki's Solutions to Social Issues2. Structure for Creating Solutions（Restructuring of the Business Portfolio）3. Scenario for Growth Kawasaki Heavy Industries, Ltd. All Rights Reserved42
Integration of the Ship & Offshore Structure and Energy System & Plant Engineering BusinessesAerospace Systems BusinessEnergy System & Plant Engineering BusinessPrecision Machinery & Robot BusinessIntegrated management as one companyIntegration in April 2021Ship & Offshore Structure BusinessRolling Stock BusinessMotorcycle & Engine Business Kawasaki Heavy Industries, Ltd. All Rights Reserved43
Integration of the Ship & Offshore Structure and Energy System & Plant Engineering Businesses Strengthening hydrogen-related businesses(utilizing technology developed for LNG) Accelerating development of advanced technologiessuch as automatic vessel navigation control The Sakaide Works will: Focus on the manufacturing and engineeringof hydrogen-related core components“Integrated Operation of Sakaide/Kobe/Harima”Build LPG carriers for the time being Kawasaki Heavy Industries, Ltd. All Rights ReservedHarima WorksSakaide WorksKobe Works44
Spin-Off of the Rolling Stock BusinessAerospace Systems BusinessEnergy System & Plant Engineering BusinessPrecision Machinery & Robot BusinessShip & Offshore Structure BusinessRolling Stock BusinessSpin-Off in around October 2021Motorcycle & Engine Business Kawasaki Heavy Industries, Ltd. All Rights Reserved45
Spin-Off of the Rolling Stock Business Driving even greater autonomy in business management Agile and flexible engagement in collaboration with industry partners Working to discover new markets and consider a wide range of business styles tomeet solid global demand Kawasaki Heavy Industries, Ltd. All Rights Reserved46
Spin-Off of the Rolling Stock BusinessAerospace Systems BusinessStrengthening collaborationEnergy System & Plant Engineering BusinessPrecision Machinery & Robot BusinessShip & Offshore Structure BusinessRolling Stock BusinessSpin-Off in around October 2021Motorcycle & Engine Business Kawasaki Heavy Industries, Ltd. All Rights Reserved47
Collaboration between Rolling Stock and Aerospace Systems BusinessesAdvancement of manufacturing technology and quality control in particular by leveragingsimilarity between manufacturing processesAerospace Systems Business Kawasaki Heavy Industries, Ltd. All Rights ReservedRolling Stock Business48
Spin-Off of the Motorcycle & Engine BusinessAerospace Systems BusinessEnergy System & Plant Engineering BusinessPrecision Machinery & Robot BusinessShip & Offshore Structure BusinessRolling Stock BusinessMotorcycle & Engine Business Kawasaki Heavy Industries, Ltd. All Rights ReservedSpin-Off in around October 202149
Spin-Off of the Motorcycle & Engine Business Improve decision-making speed by driving even greater autonomy inbusiness management and leveraging the characteristics ofbusiness-to-consumer businesses Strengthen the brand by providing products and services in syncwith customers, including new lifestyle offerings focusing on the postCOVID-19 environment Strengthen collaboration within the industry and revitalize themarket through focus on compliance with environmental regulationsas well as progress in electric drive and advanced safetytechnologies Kawasaki Heavy Industries, Ltd. All Rights Reserved50
Spin-Off of the Motorcycle & Engine BusinessAerospace Systems BusinessEnergy System & Plant Engineering BusinessPrecision Machinery & Robot BusinessStrengthening collaborationShip & Offshore Structure BusinessRolling Stock BusinessMotorcycle & Engine Business Kawasaki Heavy Industries, Ltd. All Rights ReservedSpin-Off in around October 202151
Collaboration between the Motorcycle & Engine Business and Precision Machinery & Robot Business Extending corporate resources to mass-production businesses Collaboration in business-to-business operations(hydraulic systems and general-purpose engines)Further strengthening and synergy ofHydraulic systemscore component businesses,which have a high industry market shareGeneral-purpose engines Kawasaki Heavy Industries, Ltd. All Rights ReservedAgricultural machinery and turf care markets, etc.52
Advanced mobilityMobile robotsOff-Road Four-WheelersA revolution in logisticsthrough transition toadvanced mobility Kawasaki Heavy Industries, Ltd. All Rights Reserved53
Three Business GroupsLand & Air Transportation SystemsAerospace Systems BusinessRolling Stock (new company)Near-FutureMobilityA Safe and SecureRemotely-ConnectedSocietyMotion Control & Motor VehiclesPrecision Machinery & Robot BusinessMotorcycles & Engines (new company)Energy andEnvironmentalSolutionsEnergy & Marine EngineeringIntegrating the Energy System &Plant Engineering Business with theShip & Offshore Structure Business Kawasaki Heavy Industries, Ltd. All Rights Reserved54
1. Kawasaki's Solutions to Social Issues2. Structure for Creating Solutions（Restructuring of the Business Portfolio）3. Scenario for Growth Kawasaki Heavy Industries, Ltd. All Rights Reserved55
Forecast for 2020 Full Fiscal YearFY2019ActualFY2020 ForecastIn Aug.ChangeIn This Timevs.FY2019vs. In Aug.Thorough efforts including: Strengthen financial profileOrder Received1,513.51,400.01,340.0-173.5-60.0Net Sales1,641.31,460.01,500.0-141.3 40.0 Improving cash flowOperating Income / Loss62.0-30.0-20.0-82.0 10.0 Reviewing total labor costsRecurring Profit / -tax ROIC4.2 %―-2.2%-6.4%―ROE4.0 %―-6.1%-10.1%―35 yen―0 yen-35 yen―Net Income /Loss Attributable toOwners of ParentsDividend(per share) Kawasaki Heavy Industries, Ltd. All Rights Reserved Reducing manufacturing costsBecome profitable in FY202156
Aerospace Systems BusinessStable market expansion over the medium to long termHowever, we will flexibly allocate resources in view of the current slumpin aviation demand（Sample concept image of staff allocation）Until demand recoversPCR TestingBusinessAerospace SystemsBusinessAfter demand recovers Kawasaki Heavy Industries, Ltd. All Rights ReservedRealizing a rapid recoveryin aviation demandOther Business57
Growth Scenario321Hydrogen and other new businesses will become our main profit drivers,with the areas of a safe and secure remotely-connected society,near-future mobility, and energy and environmental solutionsforming a stable growth pathRecovery in the Aerospace Business and the stable expansion of the marketMotion Control and Energy will be our main profit centers in the immediate future,and the early launch of the PCR testing business will contribute in the recovery of aviation demand Kawasaki Heavy Industries, Ltd. All Rights Reserved58
Management PoliciesPursue GrowthProfitsStability/SynergyDevelopment investment in growth fields and new businessesOperating profit margin5 8%Pre-tax ROICWACC 3% or moreRealizing the Conglomerate PremiumContributing to the achievement ofSustainable Development Goals through our solutions to address social issues Kawasaki Heavy Industries, Ltd. All Rights Reserved59
Growth ImageSales（one hundred million yen）Average Annual Growth Rateof KHI Sales（5.0％）Global GDP growth rate（Around the 3.0％）（Fiscal Year） Kawasaki Heavy Industries, Ltd. All Rights Reserved60
Key Mechanisms Supporting the Growth Scenario Personnel system and organizational structure Shift to a personnel system more based on skills, roles and results and flexibly utilize humanresources beyond company boundaries Establish a project promotion office under the direct control of the President and Chief Executive OfficerDigital transformation (DX) Pursue efficiency gains and the shift to high added value in business processes Speed up decision-making by enabling visualization of management in real timePromote the remotely-connected transition, including robotics Realize highly-productive ways of working in close coordination with internal partners,customers, suppliers, etc. as well as new remote work enabled by practical operations using robots Kawasaki Heavy Industries, Ltd. All Rights Reserved61
Kawasaki Heavy Industries, Ltd. All Rights Reserved62
Increasing focus on off -road motorcycles and four-wheelers as leisure activities ensuring social distancing. Demand Increase on Off-Road Motorcycles and Four-Wheelers Expanded the Business in the US, after Starting the Plant Construction first as a company from the Japanese Automobile Industry
NATIONAL DEVELOPMENT STRATEGY 1 (2021-2025) (NDS1): AN OVERVIEW Vision 2030 2 Vision 2030 His Excellency, the President, Cde. E.D. Mnangagwa enunciated Vision 2030 Vision 2030 reflects the .
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Crown Center or Brandeis University. The Rise of MBS and Saudi Vision 2030 . The main ideological and political force behind Vision 2030 was and is Saudi Arabia’s Crown Prince, Mohammed bin Salman (widely referred to as “MBS”). Soon after assuming his duties as the Kingdom’s new ruler in January 2015,
details, please see the theory of change companion guidance note (hyperlink to ToC CGP)). 1 The UN Vision 2030 paper includes: _ 1 It is recommended to apply the MAPS (Mainstreaming, Acceleration and Policy Support), which provides UN Resident Coordinators and UNCTs with useful insights and practical tools for the UN Vision 2030 exercise. 1.
The Arts Vision 2030 Steering Committee established values for the Arts Vision 2030 process for a plan that would be of, for, and by the community. ARTS VISION 2030 THE STORY OF LAND ACKNOWLEDGEMENT W 7 The Pikes Peak region is situated on the ancestral homeland of the Ute Peoples, who are the Southern Ute, Ute Mountain Ute, and Northern Ute.
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