Kawasaki Heavy Industries (7012) Corporate presentation summary

Strategic priorities

• Company-wide priorities span defense, safe and secure remotely connected society, smart mobility, energy and environmental solutions, and physical AI.

Power demand and gas turbine opportunity

• AI and data center expansion, electrification, and economic development are driving electricity demand and the need for stable, reliable supply.

• Industrial gas turbine market forecast indicates ~9% CAGR from 2025 to 2035; FY2026 order forecast is ~1.5x FY2023.

• Small- and medium-sized turbines are positioned for data centers, where multi-unit deployment enables 1–2-year operation versus 3–5 years for large turbines.

• FY2026 revenue targets include ¥20.0bn/year for backup power outside data centers and ¥30.0bn/year for distributed prime power, including equipment and aftermarket.

Capacity and commercial growth

• Gas turbine production capacity is set to expand through CAPEX; further investment beyond 2035 will depend on market conditions.

• Gas engine production capacity is planned to increase ~10x through proactive investment and overseas data center projects; planned CAPEX is ~¥17bn.

• Gas turbine business plan charts indicate ~4x revenue and ~2.3x business profit growth over the plan horizon.

• Gas engine business plan chart indicates ~6x revenue growth over the plan horizon.