Kawasaki decides to issue its First Sustainability Bond -Strengthening Sustainability Management to Realize Group Vision 2030-

1.Summary of the Sustainability Bond^*2

Company	Kawasaki Heavy Industries, Ltd.
Tenor	10 years
Amount	10 Billion Yen
Date of Issuance	July 2021 (planned)
Underwriters	Mizuho Securities Co., Ltd., Nomura Securities Co., Ltd., SMBC Nikko Securities Inc., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Structuring Agent*3	Mizuho Securities Co., Ltd.

2. Framework
A framework of the Bond was established in accordance with the Green Bond and Social Bond Principles of the International Capital Markets Association (ICMA). Based on this framework, eligible projects for the realization of a sustainable society will be selected, and the funds required for these projects will be procured through public offering in the domestic market.
For this framework, Kawasaki has obtained a “Second Party Opinion”^*4 from a third-party organization, Rating and Investment Information, Inc. (R&I).

3. Eligible Projects

Projects Related to the Popularization of the Automated Robotic PCR Testing System	Eligibility Categories: ・Access to essential services ・Socioeconomic improvement and empowerment 　Possible Effects: ・Reducing the Burden of Physicians and Healthcare 　Workers and Preventing the Spread of COVID-19 ・Contributing to the recovery and revitalization of 　economic activity
Projects Related to the Establishment of a Clean Hydrogen Supply Chain	Eligibility Categories: ・Renewable energy ・Clean transportation Possible Effects: ・Realization of a large and stable supply and 　use of clean energy

4. Summary of Eligible Projects
1) Popularization of the Automated Robotic PCR Testing System
Kawasaki is working with Sysmex Corporation and Medicaloid Corporation, a joint venture between the two companies, to develop and implement the automated robotic PCR testing system in preparation for the re-spread of COVID-19. The testing service provides "short-time, continuous, highly sensitive, and highly accurate," service and contributes to the expansion of the PCR testing system by reducing the risk of infection and workload of medical personnel, preventing human errors, and responding to shortages of medical personnel.

2) Establishment of a Clean Hydrogen Supply Chain
Hydrogen can be extracted from various substances and is a clean energy that does not emit CO2 during combustion. In order to build a decarbonized society, the development of infrastructure to use hydrogen as energy is about to begin all over the world. Kawasaki is developing and demonstrating hydrogen for all uses in the hydrogen supply chain, including "production," "transportation," "storage," and "utilization," and is contributing to the construction and expansion of the supply chain for the hydrogen market, which is expected to expand in the future.

Through issuing the Bond, Kawasaki will accelerate initiatives for sustainability management to realize “Group Vision 2030: Trustworthy Solutions for the Future.”^*5, strengthen engagement with stakeholders, and contribute to the achievement of the SDGs and realize a sustainable society.

*1　Bonds issued to raise funds specifically for projects that contribute to
       environmental and social sustainability.
*2   More information of the sustainability bond planned to be issued.
       https://global.kawasaki.com/en/corp/ir/finance/sdgs.html
*3　An Agent who supports the issuance of sustainability bonds through
       the formulation of a framework and provides advice on obtaining
       second-party opinions.
*4　Second Party Opinion by Rating and Investment Information, Inc.
       (Available in Japanese only). Click here
*5   Group Vision 2030: https://global.kawasaki.com/en/groupvision2030/index.html