Transfer of Representative Director and Director to Change, and the Return of Executive Compensation

Tokyo, February 28, 2018—Kawasaki Heavy Industries, Ltd. has announced that at an Extraordinary Board of Directors meeting earlier today, it passed a resolution on the changes stated below with regard to a transfer to representative director which was announced on January 31.

1.

Announcement made on January 31
Transfer to representative director (dated April 1, 2018)

Makoto Ogawara, Senior Managing Executive Officer*
(the title was Senior Vice President as at January 31, 2018)

   * Representative director

2.

Change made by the resolution on February 28
Transfer to director (dated April 1, 2018)

Makoto Ogawara, Director Managing Executive Officer
(the title was Senior Vice President as at January 31, 2018)

Grounds of the resolution

The resolution was passed in order to hold Mr. Ogawara to account for his management as the President of the Rolling Stock Company, in response to the discovery of defects in the manufacturing of Series N700 Shinkansen train bogie frames. For details, please see the separate notice, "Series N700 Shinkansen Train Bogie Frames" dated today.

Furthermore, executives have offered to return some of their compensation as follows, and these offers have been accepted.

1.	Content of the executives' compensation to be returned Yoshinori Kanehana, President: 50% of his monthly compensation Makoto Ogawara, Senior Vice President and President of Rolling Stock Company: 30% of his monthly compensation
2.	Term during which the executives' compensation will be returned 3 months from March 2018

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