Decision on New Share Issuance and Bond Issuance through Overseas Offering | July 2026

Overview of Capital Policy

Kawasaki Heavy Industries, Ltd. decided on the issuance conditions for new shares and convertible bonds through an overseas offering on July 14, 2026. Approximately 37.35 million shares (equivalent to about 9.7 billion yen) will be issued, increasing capital and capital reserve. Bonds totaling about 101 billion yen will be issued with maturities in 2031 and 2033, respectively, with specific terms set. The proceeds are mainly allocated to strengthen production bases and invest in energy-related businesses.

Impact on Shareholders and Future Outlook

This capital raising is expected to dilute potential shares by approximately 2.97%. The funds will be used to expand production capacity in the automotive, aerospace, and energy sectors, and to invest in research and development of new technologies, aiming to achieve business growth and strengthen competitiveness. The company intends to continue pursuing a sustainable growth and enhancing shareholder value through its capital policy.