Business Results for FY2011 ended March 31, 2012 and Tasks and Projection for FY2012 ending March 31, April 26, 2012 Komatsu Ltd.

Transcription

1 Business Results for FY211 ended March 31, 212 and Tasks and Projection for FY212 ending March 31, 213 April 26, 212 Komatsu Ltd. 1

2 Highlights of FY211 ended March 31, Sales and Profits - Net Sales increased by 7.5% from the previous fiscal year, to 1,981.7 billion yen. - Operating income increased by 15.% to billion yen and operating income ratio improved to 12.9%. FY21 FY211 vs. FY21 Net sales 1,843.1 bil yen 1,981.7 bil yen % Operating income bil yen bil yen % Operating income ratio 12.1 % 12.9 % +.8 pts Net income* 15.7 bil yen 167. bil yen % ROE 17.2% 17.3% +.1 pt Net D/E ratio [Excl. consolidated retail finance subsidiaries].5.56 (.6) pts [.24 ] [.28 ] [ (.4) pts ] * Net income is equivalent to Net income attributable to Komatsu Ltd. in accordance with the FASB Accounting Standards Codification (ASC) Review of two business segments Construction, Mining & Utility Equipment: - While demand dropped drastically in China, net sales increased by 7.7% from the previous fiscal year, reflecting positive factors, such as expanded sales of construction equipment in other regions and of mining equipment and spare parts. - Although the Japanese yen appreciated against U.S. dollar, Euro and Renminbi, segment profit ratio advanced by +.5 points from the previous fiscal year, supported by increased selling prices as well as reduced production costs. Industrial Machinery & Others: - Sales increased, supported by expanded sales of presses, machine tools and prefabricated structures, however, segment profit declined due to a drastic drop in demand for wire saws. 3. Cash dividends Reference : Sales and profits calculated by USD and EUR Million USD FY1 FY11 % change Net sales 22,26 24, % Operating income 2,686 3, % Net income 1,816 2, % Million EUR FY1 FY11 % change Net sales 17,66 18, % Operating income 2,64 2, % Net income 1,396 1, % Year-end cash dividends: 21 yen per share. Annual dividends: 42 yen per share including interim dividend of 21 yen per share. (To be proposed to the 143rd ordinary general meeting of shareholders.) 2

3 Sales and Profits for FY211 ended March 31, Both consolidated net sales and profits increased from the previous fiscal year, as the adverse effects of the Japanese yen s appreciation and plunged demand in China were compensated for mainly by expanded sales of construction equipment in other regions and of mining equipment and parts. - Operating income ratio increased by.8 points to 12.9%. % : Profit ratio [ ] : Sales after elimination of inter-segment transactions FY21 1USD = 85 yen 1EUR = 113 yen 1RMB = 12.7 yen FY211 1USD = 79 yen 1EUR = 11 yen 1RMB = 12.4 yen Increase (decrease) Net sales *1 1, , % Construction, Mining & Utility Equipment Industrial Machinery & Others [1,615.6] 1,618. [227.4] [1,739.3] 1,744.2 [242.4] [ ] [+ 14.9] [+ 7.7 %] % [+ 6.6 %] % Elimination (13.3) (13.6) (.3) - Segment profit 12.7% % % Construction, Mining & Utility Equipment Industrial Machinery & Others 13.6% 8.8% % 6.7% (4.1) % (2.)% Corporate & elimination (6.8) (4.4) Other operating income (expenses) *2 (12.) (2.3) Operating income 12.1% * % % Other income (expenses) (3.1) (6.7) (3.6) - Net income before income taxes % Net income * % Cash dividends per share 38 yen 42 yen + 4 yen *1 Including adverse effects by the earthquake : reduced sales of 9.2 billion yen and reduced operating income of 7. billion yen. *2 Including structural reform expenses of 3.8 billion yen. *3 Upon adoption of ASC 81, Net income is equivalent to Net income attributable to Komatsu Ltd. 3

4 Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit - Sales increased from the previous 4th quarter a year ago, as the adverse effects of dropped demand in China were compensated for primarily by expanded sales in other regions and of mining equipment and parts. - Segment profit ratio remained at a high level Quarterly sales Exchange rates 1USD 1EUR 1RMB FY8/1Q FY8/ FY8/ FY8/ FY9/1Q FY9/ FY9/ FY9/ FY1/1Q FY1/ FY1/ FY1/ FY11/1Q FY11/ FY11/ FY11/ 8/1Q 8/ 8/ 8/ 15yen 17yen 95yen 95yen 165yen 159yen 126yen 123yen 15.2yen 15.7yen 13.9yen 13.9yen 9/1Q 9/ 9/ 9/ 97yen 93yen 9yen 91yen 133yen 133yen 133yen 124yen 14.2yen 13.6yen 13.2yen 13.3yen 1/1Q 1/ 1/ 1/ 91yen 85yen 82yen 82yen 115yen 111yen 11yen 114yen 13.4yen 12.6yen 12.4yen 12.5yen 11/1Q 11/ 11/ 11/ 81yen 77yen 78yen 8yen 118yen 19yen 15yen 16yen 12.5yen 12.1yen 12.3yen 12.7yen (2) 14.6% 13.6% % % (7.6) 7.4 (2.4)% Quarterly segment profit 13.4% 13.4% 1.2% 7.4% % Segment profit Segment profit ratio 14.1% 13.7% 13.9% 14.1% 14.3% 14.2% FY8/1Q FY8/ FY8/ FY8/ FY9/1Q FY9/ FY9/ FY9/ FY1/1Q FY1/ FY1/ FY1/ FY11/1Q FY11/ FY11/ FY11/ 18.% 15.% 12.% 9.% 6.% 3.%.% (3.)% 4

5 Construction, Mining & Utility Equipment: Sales by Region and Segment Profit - Sales increased by 7.7% from the previous fiscal year, as the adverse effects of dropped demand in China were compensated for mainly by expanded sales in Japan, North America and Strategic Markets except China. - In spite of a sharp appreciation of the Japanese yen, segment profit ratio improved to 14.1%. 2, 1,5 1, 5 Sales by region (To outside customers) Breakdown (%) Segment profit 1, : Year-on-year growth rate 7.7% +27.4% 1, , FY29 FY21 FY211 93/USD 85/USD 79/USD 131/EUR 113/EUR 11/EUR 13.6/RMB 12.7/RMB 12.4/RMB Rate of growth (year-on-year basis) Africa Middle East Oceania Asia China CIS Latin America Europe North America Japan Strategic Markets 63% Strategic Markets 67% FY211 FY21 Traditional Markets 37% Traditional Markets 33% 6.5% 13.6% 14.1% % : Segment profit ratio Sales before elimination of inter-segment transactions % Japan North America Europe Latin America CIS China Asia Oceania FY % +36.2% +15.7% +18.5% +87.6% +36.7% +49.8% +7.6% +33.1% +15.6% +27.4% FY % +28.9% +15.5% +1.5% +34.% (39.8)% +26.3% +33.1% (15.)% +46.9% +7.7% Middle East Africa Total 5

6 Construction, Mining & Utility Equipment: Causes of Difference in Sales and Segment Profit - Sales increased by billion yen from the previous fiscal year. Negative factors of the Japanese yen s appreciation and dropped demand in China were compensated for by improved selling prices, expanded sales of construction equipment in other regions and of mining equipment and parts. - Segment profit improved by 25.4 billion yen. Negative factors of the Japanese yen s appreciation, increased fixed costs and steel prices were compensated for by improved selling prices and expanded volume of sales. Segment profit ratio improved to 14.1%. Sales FY21 vs. FY211 Foreign exchange rate difference (64.) Sales difference in China (125.8) Sales difference in other markets Foreign exchange rate difference (34.2) Segment profit FY21 vs. FY211 Fixed costs difference (12.) Production costs difference (3.) Selling price difference Volume difference & others billion yen billion yen Positive factor Negative factors Positive factors Negative factors FY21 FY211 FY21 FY211 85/USD 113/EUR 12.7/RMB 79/USD 11/EUR 12.4/RMB 85/USD 113/EUR 12.7/RMB 13.6% Segment profit ratio 79/USD 11/EUR 12.4/RMB 14.1% 6

7 Industrial Machinery & Others: Sales and Segment Profit - Sales increased from the previous fiscal year with expanded sales of presses, machine tools and prefabricated structures for temporary shelters, while demand of wire saws plunged. - Segment profit declined from the previous fiscal year, due to a drastic drop in demand for wire saws Sales Segment profit 8.8% Segment profit ratio % 16.7 % FY29 FY21 FY % FY29 FY21 FY211 6 Breakdown of sales : FY21 vs. FY211 Komatsu Industries Corp and others: Sheet-metal and press machines business Sales FY21 FY211 Increase (decrease) Komatsu NTC Ltd (2.3) [Provided by wire saws] [83.] [46.5] [(36.5)] GIGAPHOTON INC., Komatsu House Ltd., KELK Ltd., Defense Systems Division and others Total

8 Retail Finance Business Assets expanded especially in North America and China. Both revenues and pretax income advanced from the previous fiscal year Assets North America Consolidated retail finance subsidiaries (internal-use data) 423. North America Revenues Revenues Pretax income Others Australia Others Australia China Europe Japan Elimination China Europe Japan Elimination March 31, 211 March 31, /USD 118/EUR 12.7/RMB 82/USD 11/EUR 13.1RMB FY21 85/USD 113/EUR 12.7/RMB FY211 79/USD 11/EUR 12.4/RMB 8

9 Consolidated Balance Sheets - Total assets increased by billion yen from the previous fiscal year-end, reflecting increased receivables and inventories resulting from expanded demand and sales. - Komatsu Ltd. shareholder s equity topped 1 trillion yen, further improving its ratio. Net D/E ratio Cash & deposits (Incl. time deposits) [a] Accounts receivable (Incl. long-term trade receivables) <Excl. those of consolidated retail finance subsidiaries> Inventories Tangible fixed assets Other assets Mar. 31, yen/usd 118 yen/eur 12.7 yen/rmb <419.3> Mar 31, yen/usd 11 yen/eur 13.1 yen/rmb <397.5> Increase (decrease) (.9) <(21.8)> (15.4) Total assets 2, , Accounts payable (35.5) Interest-bearing debt [b] <Excl. that of consolidated retail finance subsidiaries> <276.9> <336.9> <+6.> Other liabilities Total liabilities 1, , [ Shareholders equity ratio ] [ 43.% ] [ 43.5% ] [ +.5 pts ] Komatsu Ltd. shareholders equity , Noncontrolling interests (1.) Liabilities & Equity 2, , Interest-bearing debt, net [b-a] Net D/E ratio excluding cash and interest-bearing debt of consolidated retail finance subsidiaries

10 Projection for FY212 ending March 31, 212 1

11 Outline of Projection for FY212 ending March 31, Sales and profits: Both sales and profits should increase from FY211, mainly reflecting an increase in demand for construction equipment in Japan and North America as well as an increase in sales of mining equipment and parts. Operating income ratio should also improve, and we should be able to achieve an operating income ratio of 15%, the target figure of the mid-range management plan. FY211 Results FY212 Projection Change Net sales 1,981.7 bil yen 2,1. bil yen + 6. % Operating income bil yen 315. bil yen % Operating income ratio 12.9 % 15. % pts Net income* 167. bil yen 19. bil yen % ROE 17.3 % 18. % +.7 pts Net debt-to-equity ratio ([Excl. retail finance business].56 (.28) 2. Outlook of two business segments - Construction, Mining and Utility Equipment In addition to an increase in sales of high-margin mining equipment, parts and service, we project that demand for construction equipment will increase steadily in Traditional Markets, centering on North America. Both sales and profits should increase from FY Industrial Machinery and Others While we should be able to receive steady orders for presses and machine tools, we expect orders for wire saws to decline and end to extraordinary demand for prefabricated structures for use in temporary shelters. In this light, both sales and profits should decline from FY Cash dividends Annual cash dividends of 48 yen per share are planned. (Consolidated payout ratio should translate into 24%.) Million USD.43 (.2) FY211 Results FY212 Projection (.13) pts (.8) pts * Net income is equivalent to Net income attributable to Komatsu Ltd. in accordance with the FASB Accounting Standards Codification (ASC) 81. (Reference) Sales and profits converted to USD and EUR denominations* % change Net sales 24,168 26, % Operating income 3,126 3, % Net income 2,37 2, % Million EUR FY211 Results FY212 Projection % change Net sales 18,16 2, +11.% Operating income 2,33 3, +28.7% Net income 1,519 1, % *The exchange rates for FY211 reflect the rates at the end of FY211. The exchange rates for FY212 reflect the rates of projection for FY212. FY211 FY212 Increase (decrease) Interim 21 yen 24 yen* + 3 yen* Year end 21 yen 24 yen* + 3 yen* Total 42 yen 48 yen* + 6 yen* *Projected 11

12 Projection for FY212 ending March 31, Net sales should increase by 6.% to 2,1 billion yen, and operating income by 22.9% to 315 billion yen. - Operating income ratio should improve by 2.1 percentage points to 15.%. % : Profit ratio [ ]: Sales after elimination of inter-segment transactions FY211 Results 1USD = 79 yen 1EUR = 11yen 1RMB = 12.4yen FY212 Projection 1USD = 8 yen 1EUR = 15 yen 1RMB = 12.8 yen Increase (decrease) Change % Net sales 1, , % Construction, Mining & Utility Equipment Industrial Machinery & Others [1,739.3] 1,744.2 [242.4] [1,886.] 1,89. [214.] 22. [+146.6] [(28.4)] (31.1) [+8.4%] +8.4 % [(11.7)%] (12.4) % Elimination (13.6) (1.) Segment profit 13.1 % % % Construction, Mining & Utility Equipment Industrial Machinery & Others 14.1 % 6.7 % Corporate & elimination (4.4) (6.) (1.5) - Other operating income (expenses) (2.3) (6.) (3.6) (9.7) % (58.3) % Operating income 12.9 % % % Other income (expenses) (6.7) (7.) (.2) - Income before income taxes % Net income * % 16.9 % 3.2 % Cash dividends per share 42 yen 48 yen +6 yen *1 Upon adoption of ASC 81, Net income is equivalent to Net income attributable to Komatsu Ltd. 12

13 Construction, Mining & Utility Equipment : Projection of Sales to Outside Customer by Region and Segment Profit - Sales to outside customer of this segment should increase by 8.4%, mainly supported by an increase in sales of construction equipment in Japan and North America and of mining equipment and parts in Strategic Markets. - Segment profit should improve by 2.8 percentage points to 16.9%, mainly reflecting an increase in the percentage share of high-margin mining equipment and parts in total sales. 2, 1,6 1,2 8 4 Sales by region (To outside customers) Breakdown (%) Segment profit 2,4 Growth rate (year-on-year) 1, , FY21 FY211 FY212 (Projected) 85/USD 113/EUR 12.7/RMB +7.7% 79/USD 11/EUR 12.4/RMB % Japan +8.4% 8/USD 15/EUR 12.8/RMB Sales growth rate (year-on-year basis) North America Europe Africa Middle East Oceania Asia China CIS Latin America Europe North America Japan Latin America Middle East Africa 2% Japan Oceania 5% 16% 1% Asia 19% Projection for FY212 China 11% CIS 5% North America 14% Europe 6% Latin America 12% Traditional Markets 36% Strategic Markets 64% % FY21 FY211 FY212 (Projected) : Segment profit ratio Sales before elimination of inter-segment transactions CIS China Asia Oceania Middle East Africa Total FY211 Results +13.8% +28.9% +15.5% +1.5% +34.% (39.8)% +26.3% +33.1% (15.)% +46.9% +7.7% FY212 Projection +6.9% +8.1% (.5)% +14.5% +12.8% (.7)% +9.6% +18.6% (1.3)% +1.5% +8.4% 14.1% 16.9% %

14 Construction, Mining & Utility Equipment: Causes of Difference in Projected Sales & Segment Profit - An increase in fixed costs should be compensated for by improvements of production costs and selling prices. - Coupled with an increase in the volume of sales and foreign exchange rate differences, we expect segment profit to increase by 73.7 billion yen from FY Fixed costs difference (15.) Segment profit Foreign exchange rate difference 7. Production, selling price differences, etc Volume Difference [Positive factors] - Reduced production costs and selling price difference and others: billion yen - Volume difference: billion yen - Foreign exchange rate difference: + 7. billion yen billion yen Positive factors Negative factors [Negative factors] - Fixed costs difference: -15. billion yen FY211 (Results) FY212 (Projected) Increased profit of billion yen 79 /USD 11/EUR 12.4/RMB 14.1% Segment profit ratio 8/USD 15/EUR 12.8/RMB 16.9% 14

15 Construction & Mining Equipment: Demand for 7 Major Products FY211: While demand downturned drastically in China, that in other Strategic markets and Traditional Markets expanded, sustaining a growth rate of 4% comparable to FY21. FY212: Chinese demand should bottom out and demand in Strategic Markets other than China should continue to increase steadily. We project that global demand will increase by 5% to1% from FY211. Quarterly demand for 7 major products Annual demand for 7 major products Units 15, 12, 9, 6, 17% 15%13%13% Japan North America Europe China Others Growth rate 4% -3% -6% 53% 63% 46% 4% 36% 11% 14% 7% Growth rate -1% 9% 6% 3% % Units 6, 5, 4, 3, 2, Japan North America Europe China Others Growth rate Index : FY27=1 22% 1 13% 16% 13% 15% % -2% 45% 92 Growth rate 6% 4% 11~ % 5~1% 4% % -2% 3, -33% -42% -3% 1, -4% -49% -48% '12/1-3 '11/1-12 '11/7-9 '11/4-6 11/1-3 '1/1-12 '1/7-9 '1/4-6 '1/1-3 '9/1-12 '9/7-9 '9/4-6 '9/1-3 '8/1-12 '8/7-9 '8/4-6 '8/1-3 '7/1-12 '7/7-9 '7/4-6 (Estimated) -6% Estimated by Komatsu FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY12 FY11 FY1 (Estimated) (Projected) -6% 15

16 FY '8 '82 '84 Construction & Mining Equipment: Demand in Major Markets and Outlook (1) Japan - In FY211, demand increased sharply by 49%, fueled by restoration/reconstruction works in the earthquake-devastated regions. - Demand for new hydraulic excavators surpassed the number of used equipment exported from Japan, reflecting further decline in the amount of surplus machines on the market and an increase in demand after the earthquake. We project that demand will advance by 5% to 1% from FY211. Construction investment Trillions Property 1 bubble Demand for new equipment Demand for new equipment (7major products) and construction investment Exports of used equipment Private-sector non-residential Private-sector residential Government construction '86 '88 '9 '92 Year-on-year growth rates of 7 major products '94 FY11: +49% (estimated) FY12 : +5% to +1% (projected) '96 '98 ' Used equipment bubble [Sources] : Construction investment by the Ministry of Land, Infrastructure, Transport & Tourism, and Research Institute of Construction and Economy Demand for 7 major products estimated by Komatsu No. of used equipment estimated by Komatsu '2 '4 '6 Demand for new equipment/ Exports of used equipment Units '8 '12 '11 '1 8, 6, 4, 2, -2, -4, -6, -8, -1, Growth rate 1% 8% 6% 4% 2% % -2% -4% -6% -8% -1% Population Units FY7 1Q Quarterly demand for 7 major products Index : FY7/=1 1 FY8 1Q Machine population FY9 1Q Demand (Units) Construction investment and machine population for hydraulic excavator Export of used equipment New equipment FY2 FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY1 FY11 FY12 (Estimated) (Projected) [Source]: FY2 to FY1: Japan Construction Equipment Manufacturers Association FY11,12: estimated by Komatsu FY1 1Q : +96% (estimated) FY11 1Q Growth rate 88 Demand for new equipment > export Machine population has been increasing. 15, 12, 9, 6, 3, Units -3, -6, -9, -12, -15, Demand for new equipment/export Units

17 Housing starts in ten thousands Construction & Mining Equipment: Demand in Major Markets and Outlook (2) North America - In FY211, demand expanded by 36% from FY21, fueled by strong demand in the rental, mining and energy industries. Yet, it represents only about 6% of the last peak year of FY25. - In FY212, demand should remain brisk with an increase of 1% to 15% from FY211. Demand for 7 major products and US housing starts 6 yrs 9 yrs 11yrs Year-on-year growth rates of 7 major products FY11: +36% (estimated) FY12: +1 to 15% (projected) Growth Demand for rate 7 major products Index : FY5/=1 6% Units 8, 1 4% 91 7, 2% 6, % -2% 5, -4% 4, -6% 3, 2, 1, Quarterly demand for 7 major products Demand (Units) 66 Growth rate : +33% (estimated) FY5 1Q FY6 1Q FY7 1Q FY8 1Q FY9 1Q FY1 1Q FY11 1Q Breakdown of demand by segment (Unit based) Units 3, 2, 1, -1, -2, -3, 5 FY '7 '72 '74 '76 '78 '8 '82 Housing starts '84 '86 '88 Demand is recovering centering on the rental, mining and energy industries, while housing starts lacks full-recovery momentum. '9 '92 '94 '96 '98 ' '2 '4 Demand for mojor 7 products [Source]: Housing starts by U.S. Department of Commerce Demand for 7 major products estimated by Komatsu '6 '8 '12 '11 '1-1, -2, -3, 1% 8% 6% 4% 2% % 13% 15% 16% 15% 14% 2% 21% 17% 24% 3% 13% 13% 15% 14% 14% 19% 21% 27% 23% 19% 36% 28% 27% 24% 22% FY7 FY8 FY9 FY1 FY11 Others Rental Mining & energy Road Construction Units 45, 4, 35, 3, 25, 2, 15, 1, 5, FY1 Others Rental Mining & energy Road Construction FY11 +3% +78% +45% +16% +32% 17

18 Construction & Mining Equipment: Demand in Major Markets and Outlook (3) Europe - In FY211, demand remained firm, centering on Germany, France and the United Kingdom, and increased by 7% from FY21. Yet, it remained at about half of the last peak year of FY27. - In FY212, we project that demand will improve by % to 5%. Annual demand for 7 major products Quarterly demand for 7 major products Units 8, Year-on-year growth rates of 7 major products FY11: +7% (estimated) FY12: % to +5% (projected) Growth rate 6% 4% 2% Index : FY7/= Units 3, 2, 1, 7, 6, Other countries Major 5 countries % -2% -4% : -4% (estimated) -1, -2, -6% Demand (Units9 Growth rate -3, 5, 4, Other countries -8% FY7 1Q FY8 1Q FY9 1Q FY1 1Q FY11 1Q -4, 3, 2, 1, Major 5 (Germany, France, the U.K., Italy, Spain) Demand for 7 major products: Year-on-year growth rate Apr., 21 Mar., 211 Apr., 211 Feb., 212 Germany +67% +15% U.K. +35% +6% FY ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 '11 '12 France +48% +22% Italy -2% -27% Spain -4% -13% Estimated by Komatsu Others (29 countries) +4% +17% 18

19 Construction & Mining Equipment: Demand in Major Markets and Outlook (4) China - In FY211, demand dropped sharply by 37%, as adversely affected by the government s credit squeeze measure. - We project that FY212 demand will remain about flat (% to +5%) from FY211. Units 15, 1, Demand for 7 major products (Foreign manufacturers only) Year-on-year growth rates of 7 major products FY11: -37% (estimated) FY12: % to +5% (projected) 25 2 Demand for hydraulic excavators (incl. mini models): Local and foreign makers and used equipment imports [Units] Foreign(Japan, U.S. and Europe) Foreign ( Korea) Local 1% 8% [Breakdown] 5, 15 Used (imports) 6% 1 4% Units 24, 2, 16, FY2 FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY1 FY11 FY12 (Projected) Monthly demand for hydraulic excavators (Foreign makers: Sum of 6-ton and larger models) FY212 (Projected) FY211 FY21 FY29 FY28 <Chinese new year> : Feb. 1, 213 : Jan. 23, 212 : Feb. 3, 211 Jan., 212: down 57% : Feb. 14, 21 Feb., 212: down 33% : Jan. 26, 29 Mar. 212: down 56% 5 % FY6 FY7 FY8 FY9 FY1 FY11 Construction rush of interstate highways in the U.S. ( ) U.S.A 2% % Urbanization rates FY6 FY7 FY8 FY9 FY1 FY11 12, 8, 4, Month Estimated by Komatsu CY Japan China Construction rush of highspeed railways in Japan (197~199) Construction rush of expressways in Japan (196~199) Five-year plans Topped 5% in 211 Construction rush of high-speed railways in China (25-22) Construction rush of expressways in China (199-22) Sources: * Urbanization rates: UN data High-speed railways in China: Mid-term Railway Network Plan (revised in 28), the Ministry of Railways of China Expressways in China: Mid to Long-term Plan for Transport Infrastructure Development (announced in 27), The National Development and Reform Commission of China Projection 19

20 Construction & Mining Equipment: Demand in Major Markets and Outlook (6) Other Strategic Markets - In FY211, demand expanded by 29% from FY21, supported by strong demand for mining equipment, centering on Southeast Asia and Latin America. - We project that demand will remain firm in FY212 with an increase of 5% to 1% from FY211. Units 12, 9, 6, 3, Others Oceania Africa Middle East CIS India Latin America Southeast Asia Demand for 7 major products Other Strategic markets: Southeast Asia, Latin America, India, Africa, Middle East, CIS, Oceania and others Year-on-year growth rates of 7 major products FY11: +29% (estimated) FY12: +5% to +1% (projected) Growth rate 16% 12% 8% 4% % -4% -8% Growth rate 12% 8% 4% Quarterly demand for 7 major products in Southeast Asia Index : FY7/=1 1 Demand (Units) 59 Growth rate FY7 1Q FY8 1Q FY9 1Q FY1 1Q FY11 1Q Quarterly demand for 7 major products in Latin America Index 112 Units 12, 9, 6, 3, -3, -6, Demand (Units) Growth rate ( Units 台数 ) : FY7/=1 9, , 41 3, : +33% (estimated) % FY '95 '96 '97 '98 '99 ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '12 '11 '1-4% -8% Estimated by Komatsu FY7 1Q FY8 1Q FY9 1Q FY1 1Q : -3% (estimated) FY11 1Q -3, -6, 2

21 Construction & Mining Equipment: Projection for Demand and Machine Population of Mining Equipment and Backlog Orders - In FY211, demand expanded by 47% from FY21, as that remained strong, centering on Southeast Asia and Australia. - We anticipate that FY212 demand will increase by 13% from FY Backlog orders should also remain at a high level, supported by expanding demand. We also estimate that our machine population will grow steadily. Dump trucks: 75ton (HD785)and larger Bulldozers: 525HP (D375) and larger Units -Excavators: 15ton (PC16)and larger - Wheel loaders: 5HP (WA7)and larger 2, - Motor graders: 28HP (GD825)and larger 18, Index : FY6=1 Units 9, +13% Africa & M. East 16, 8, +47% Australia 14, 7, 12, Asia 6, +7% +15% +4% 134 1, 5, +12% 116 China 8, 4, -35% 1 3, Europe & CIS 6, 2, 4, 1, Latin America 2, Demand of mining equipment by region (Units) F Y3 F Y6 F Y7 F Y8 F Y9 F Y1 F Y11 F Y12 (Estimated) (Projected) North America Machine population of Komatsu s mining equipment FY3 FY6 FY7 FY8 FY9 FY1 FY11 FY12 (Projected) Backlog orders* * Finished products excluding parts and service Including semi-finalized orders. Millions of USD 2, Komatsu America Corp. (Mining Div.) of yen 2 Komatsu Ltd. (Mining equipment related) Millions of EUR 75 Komatsu Mining Germany GmbH 1, , '1/12 '11/3 '11/6 '11/9 '11/12 '12/3 '1/12 '11/3 '11/6 '11/9 '11/12 '12/3 '1/12 '11/3 '11/6 '11/9 '11/12 '12/3 21

22 Construction & Mining Equipment: Sales Projection for Komatsu Mining Equipment - We project that sales will continue to grow steadily, especially in Southeast Asia, Latin America and Australia. - Sales of parts should also increase steadfastly against the backdrop of growing machine population Sales of mining equipment by region (incl. parts and service) [ ]: Year-on-year growth rate [+22%] 292. [+25%] [+18%] [+15%] [-14%] 554. [+33%] 664. [+2%] Africa & M. East Australia Asia China Europe & CIS Latin America % % 19% [+23%] Sales of mining equipment (Equipment and service/parts) [ ]: Year-on-year growth rate *Percentage share of mining equipment in total sales of construction, mining and utility equipment except for forklift trucks Percentage share of mining equipment in total sales* 31% [+21%] 27% [+23%] [-21%] 28% [+14%] 36% 38% [+42%] 664. Equipment, service, etc [+16%] Parts 1 FY3 FY6 FY7 FY8 FY9 FY1 FY11 FY12 (Projected) North America [+3%] [+24%] [+8%] [+4%] [+17%] [+14%] [+29%] FY3 FY6 FY7 FY8 FY9 FY1 FY11 FY12 (Projected) 22

23 Industrial Machinery & Others: Projection of Sales and Segment Profit - While orders for presses and machine tools should remain brisk, we project that both sales and profits will decline from FY211, as adversely affected mainly by a drastic slowdown in sales of wire saws and end to extraordinary demand for temporary shelters Sales FY21 FY211 FY212 (Projected) Breakdown of sales (FY211 result v.s. FY212 projection) Komatsu Industries Corp.(Sheet-metal and press machine business) Komatsu NTC Ltd. [Provided by wire saws] Gigaphoton, Komatsu House, KELK, the Defense Systems Division and others FY Segment profit Segment profit ratio FY21 FY211 FY212 (Projected) FY212 (Projected) Increase (decrease) [46.5] 8.8% 6.7% 91.6 [18.] 3.2% (17.2) [(28.5)] (18.2) Total (31.1) 18 8 Presses '11/3 '11/6 '11/9 '11/12 '12/ '11/3 '11/6 '11/9 '11/12 '12/3 8 Backlog orders Machine tools Wire saws '11/3 '11/6 '11/9 '11/12 '12/3 23

24 Retail Finance Business - We expect that assets will increase in North American and some other regions. - Both revenues and pretax income should remain about flat from FY Assets 423. North America Consolidated retail finance subsidiaries North America Revenues Revenue Pretax income Others Oceania Others Oceania China China 5 Europe Europe Japan Japan Elimination Elimination -5 Mar.31, 212 Mar. 31, 213 (Projected) 1USD 82 yen 8 yen 1EUR 11 yen 15 yen 1RMB 13.1 yen 12.8 yen FY211 FY212 (Projected) 1USD 79 yen 8 yen 1EUR 11 yen 15 yen 1RMB 12.4 yen 12.8 yen 24

25 Projection of Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs - Capital expenditures: Focusing on test and energy-saving facilities. - R&D expenses: Focusing on ICT applications, environmental friendliness and safety in machine performance and development of next-generation construction equipment. - Fixed costs: Continuing to curb them against growing sales. 1 Investment in production and other facilities* and depreciation % R&D Expenses 2.8% 2.8% 5 4 Fixed costs 15% 15% 15% FY21 FY211 FY212 (Projected) Industrial Machinery & Others Constuction, Mining & Utility Equipment Depreciation *Excl. investment in rental assets FY21 FY211 FY212 (Projected) Industrial Machinery & Others Construction Machinery & Others % of sales FY21 FY211 FY212 (Projected) Fixed costs % of sales 25

26 Progress Made in the Mid-Range Management Plan Global Teamwork for Tomorrow 26

27 Sales ( ) 3, 2,5 2, 1,5 1, - Sustaining a high level of profitability by compensating for the adverse effects of Japanese yen s sharp appreciation after the Lehman Shock by improving selling prices and costs as well as increasing the percentage shares of mining equipment, parts and others in total sales. Foreign exchange rate (JPY/USD) 5 1, ROE 6.6% 95.8 Consolidated net sales (left scale) Operating income (right scale) Operating income ratio 2, , , % 12.9% 1, % 7.1% % 13.1% 2.8% Consolidated business results % % Highlights of Consolidated Business Results 9.3% 2,21.7 1, % , % 67. 1, % , % 15.% 315. FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY1 FY11 FY12 (Projected) % % % 18.% JPY9 used in the mid-range management plan Operating income ( ) % FY7 15.5% 15% 1% 5% % Construction, mining and utility equipment: Causes of change in the segment profit ratio (FY27 FY212 projection) Foreign exchange rate difference % Increased materials cost -2.6% Increased fixed costs -.1% Reduced production costs +3.8% Increased volume +.8% Increased selling prices +8.% FY % (Projected) Increased % share of high margin products, etc. +2.6% 27

28 Targets and Progress Made in the Ongoing Mid-Range Management Plan - Looking forward to achieving the target figure of 15% for operating income ratio, even when the Japanese yen is appreciating. - Expecting to attain 18% for ROE with steady improvements. - Looking forward to achieving the target net debt-to-equity ratio (excl. retail finance companies) of.2 or below. Target figures and results of the mid-range management plan (FY21-212) No. Target items Target figures for FY212 FY29 (Reference) FY21 FY211 FY212 Projection 1 Operating income ratio 15% 4.7% 12.1% 12.9% 15.% 2 ROE 2% 4.1% 17.2% 17.3% 18.% 3 Net debt-to-equity ratio.4 or below Excl. debt of finance subsidiaries.2 or below Consolidated payout ratio Stable dividend: 2-4% Assumptions of mid-range management plan and results 38%* 24% 24% 24% *Excl. structural reform expenses No. Items FY212 FY29 (Reference) FY21 FY211 FY212 Projection 1 Sales ( ) 2,. (+/- 1.) 1, , , ,1. 2 Foreign exchange rates JPY/USD JPY/EUR JPY/RMB

29 Activities of Importance: 1) ICT Applications to Products and Parts - KOMTRAX: Expanding introduction in new regions. Over 26, KOMTRAX-installed machines in operation in more than 7 countries worldwide. (as of Mar. 31, 212) - Promoting the 15 and Beyond project to deploy more than 15 Komatsu AHS trucks in Australia by the end of Reinforcing sales and support operations to prepare for the launching of DANTOTSU ICT-intensive equipment. - Promoting the development of a fleet management system for forest machines. 1) KOMTRAX (1) Introducing it to more countries. - FY11: India, Russia, South Africa, UAE, etc. - FY12(plan): Taiwan, Nepal, Zambia, etc. (2) Increasing sales by expanding the value chain - Increasing sales of spare parts and service revenues by enhancing the utilization of the KOMTRAX at distributors - Applying the KOMATSU CARE support program to Tier4-compliant models Complementary periodical inspections and DPF cleaning/exchange within a designated period Expanding sales of spare parts by increasing the frequency of customer visit. Units <KOMTRAX introduction by region> 3 Oth ers Europe 25 N. America Over 26, units in 7 countries Advancement of the KOMTRAX 2. AHS (Autonomous Haulage System) 5 China Jap an '7/1 '8/4 '8/1 '9/4 '9/1 '1/4 '1/1 '11/4 '11/7 '11/1 '12/3 2) KOMTRAX Plus (Vehicle health management system for mining equipment) -Expanding the applications according to customer needs (ex. Reducing fuel consumption by training operators) 3) KOMTRAX Parts (Access to the conditions of parts and their replacement records) - Continuing tests for commercialization. - Preparing for applications and tests for mining equipment (1) Expanding deployment - Signed MOU with Rio Tinto in November 211 concerning the deployment of at least 15 Komatsu AHS dump trucks in Australia by the end of Focusing efforts on the reinforcement of AHS operations by establishing the AHS Support Center in Perth, Australia in December 211 (2) Applying it to other models - Starting development of AHS for HD785 mechanical dump trucks 3. ICT-intensive construction 93E AHS dump trucks operating in Australia Development of DANTOTSU ICT-intensive equipment - Getting good results from seeding tests in North America. 4. Forest machines Development of the fleet management system for forest machines - Developing the fleet management system for forest machines operating in large plantations 29

30 Activities of Importance: 2) Further Advancement of Environmental Friendliness and Safety in Machine Performance - Launched hybrid hydraulic excavators already in 12 countries. Concerting efforts to accelerate their sales. - Making good progress in launching Tier4-compliant models in the U.S. Starting full-scale launchings in Japan and Europe in FY Introducing HST-driven forklift trucks, and promoting the development of mini electric excavators. - Promoting the development of downsized and more energy-efficient machine tools. 1. Hybrid hydraulic excavators 1) Global launchings of HB25 and 215LC models - Launched some 81 units (as of March. 31, 212) - Reinforcing sales promotion (focused on heavy-use customers) [No. of units introduced] (as of March 31, 212) Models Regions Units PC2-8 Hybrid (About 69 units) HB25 and 215LC (About 81 units) Total Japan About 26 China About 43 Japan About 58 China About 13 N. America, Latin America, Europe, SE Asia, Oceania About 1 About 1,5 HB25 in Brazil <Distribution of fuel consumption by hybrid hydraulic excavators> Less Fuel consumption HB25-1 (New hybrid model) PC2-8E (First hybrid model) PC2-8N1 (Conventional model) More [Percentage share of hybrid models in all 2-ton class hydraulic excavators sold] Japan: About 2% China: About 1% 2) Expansion of hybrid model range 3-ton class hydraulic excavators, wheel loaders, etc. 2. Responses to new emission standards 1) Facilitating the launchings of Tier4, Stage IIIB and other emission standards-compliant model U.S.A.: Making good progress since launching in FY211 - Tier4-compliant models represent over 7% of all models sold since then. Europe and Japan: Full-scale launchings starting in FY212 2) Reducing total product lifecycle costs of customers by extending the guarantee period under the KOMATSU CARE program and improving fuel economy with Tier4-compliant engines. Increasing wholesale prices to distributors. - Introducing the program in Europe and Japan, following the U.S. 3. Forklift trucks, mini construction equipment and industrial machinery 1) Launching HST-driven forklift trucks - FY212: Full-scale launchings (Launch event on June. 7) - 3% (max) reduction of fuel consumption (under high-load operation) 2) Developing mini electric construction equipment - User tests in progress 3) Making machine tools more compact and energy efficient - Machining centers FH5 HST-driven forklift 3

31 Activities of Importance: 3) Expansion of Sales and Service Operations in Strategic Markets - Training distributors service mechanics under industry-academia collaboration (construction equipment) - Training service engineers at distributors and the KOMATSU Human Resource Development Center (KHRDC) in Philippines (mining equipment) - Improving next-morning delivery rates by increasing parts depots, expanding stock-mix of parts and expanding capacity and improving QCD of Reman - Winning new customers and improving the prices of new equipment by expanding the used equipment business in Asia 1. Reinforcement of human resource development in Strategic Markets 2. Sales expansion of strategic parts 1) Training distributors service mechanics 1) Improving next-morning delivery rates Persons Strengthening under industry-academia collaboration -China: Shandong Jiaotong University (24 -- ) -Russia: Yaroslavl Institute of Technology (Sep ) Pacific National University (Oct ) Making technical levels, training records, etc. visible CY No. of mechanics in Strategic Markets by region '7 '8 '9 '1 '11 Africa Middle East China Oceania Asia CIS Latin America 2) Training mining equipment service engineers Training distributors service engineers - Expanding programs for overseas trainees at the Technical Training Center (Komatsu City) - Strengthening OJT through personnel exchange among distributors (dispatching experts from distributors with a wealth of experience) Training service engineers at the KOMATSU HRDC (Philippines) and training distributors service engineers by graduates of HRDC - Increasing parts depots - Target: 95% or higher rate Making good progress 2) Expanding stock-mix of parts - Under carriages: Introducing the dual bush* type for large equipment to more regions (*Substantial extension of the undercarriage life) Traditional Markets Strategic Markets 3. Expansion of the used equipment business in Asia 8 7 <No. of parts depots> '4/3 '1/3 '11/3 '12/3 - GET(Ground Engaging Tool): Developing Me buckets for large equipment 3) Expanding Reman/rebuild capacities and improving QCD - Further enhancing QCD of global Reman plants - Expanding Reman capacity for hydraulic cylinders (Indonesia) - Increasing rebuild centers: Brazil (planned to open in Oct. 212) 1) Winning new customers and sustaining and increasing the prices of new equipment by facilitating resale of used equipment in Asia 2) Expanding the used equipment business in China

32 Activities of Importance: 4) Promotion of Continuous Kaizen by Strengthening Workplace Capability - Further improving the level of sales, production and inventory management centering on the Global HANSEI Operation Center - Reducing risks associated with procurement by databasing suppliers, including 2 nd and 3 rd stage ones - Further enhancing product development capability by strengthening the foundational technologies of measurement and simulation - Promoting 5% reduction of electric power consumption as group-wide target in Japan 1. Improving the level of global sales, production and inventory management 1) Improvement of the level of control - Daily control based on the global HANSEI database (retail sales, orders received, etc.) - Improving verification and analyses by using KOMTRAX information 2) Reduction of production lead-time - Making lead-time by model visible - Reducing lead-time by identifying tasks in every process and improving them - Horizontally implementing cases of improvement to overseas plants Global HANSEI Operation Center (at Osaka Plant) Cockpit display of global sales, production and inventories <Making sales, production and inventories visible > 2. Reducing procurement risks by databasing suppliers 1) Databasing suppliers (making them visible ) - Finding out suppliers QCD by databasing all suppliers, including those in the 2 nd and 3 rd stages. 2) Reducing risks by clarifying the procurement standards - Eliminating concentration on single suppliers - Setting up clear criteria of inventories according to each supplier s capacity 3. Strengthening foundational technologies Further enhancing product development capability by strengthening measurement and simulation technologies (Examples: Vibration measurement and simulation methods) 4. Reducing power consumption Working to cut down electric power consumption to 5% by the end of FY214 - Implementing demand control of electric power use by making power consumption visible - Using more energy-saving facilities and renovating existing facilities - Incorporating inexpensive, alternative energy sources - Improving productivity, reducing the amount of production processes and machining work, etc. 32

33 <Appendix> 33

34 Sales and Profits for Three Months (January - March, 212) % : Profit ratio [ ]: Sales after elimination of inter-segment transactions Jan. - Mar., 211 1USD = 82 yen 1EUR = 114 yen 1RMB = 12.5 yen Jan.- Mar., 212 1USD = 8 yen 1EUR = 16 yen 1RMB = 12.7 yen Increase (decrease) Change % Net sales * (7.9) (1.5) % Construction, Mining & Utility Equipment Industrial Machinery & Others [468.7] [72.3] 75.5 [474.2] [59.] 61.6 [+ 5.4] [(13.3)] (13.8) [+ 1.2 %] % [(18.5) %] (18.4) % Elimination (3.9) (3.6) Segment profit 12.9 % % 67. (2.8) (4.1) % Construction, Mining & Utility Equipment Industrial Machinery & Others 13.7 % 1. % %.1 % (7.5) % (99.2) % Corporate & elimination (2.1) (.3) Other operating income (expenses) *2 (9.7) (2.5) Operating income 11.1 % * % % Other operating income (expenses).7 (.5) (1.3) - Net income before income taxes % Net income * (12.4) (24.9) % *1 Including adverse effects by the earthquake : reduced sales of 9.2 billion yen and reduced operating income of 7. billion yen. *2 Including structural reform expenses of 1.4 billion yen. *3 Upon adoption of ASC 81, Net income is equivalent to Net income attributable to Komatsu Ltd. 34

35 1. Construction, mining & utility equipment (sales by region) Jan. Mar., 211 1USD = 82 yen 1EUR = 114 yen 1RMB = 12.5 yen Traditional Markets Strategic Markets Breakdown of Sales for Three Months (January - March, 212) Jan. Mar., 212 1USD = 8 yen 1EUR = 16 yen 1RMB = 12.7 yen vs. Jan. Mar., 211 Increase (decrease) Change % Japan % North America % Europe (.7) (2.5) % Latin America % CIS % China (62.7) (54.9) % Asia % Oceania % Middle East (6.8) (45.6) % Africa % Total % 2. Industrial machinery & others vs. Jan. Mar., 211 Jan. Mar., 211 Jan. Mar., 212 Increase (decrease) Change % Komatsu Industries Corp and others: Sheet-metal and press machines business (1.) (6.9)% Komatsu NTC Ltd. [Provided by wire saws] 42.8 [31.3] 22.4 [3.2] (2.4) [(28.1)] (47.7)% [(89.8)%] GIGAPHOTON INC., Komatsu House Ltd., KELK Ltd., Defense Systems Division and others % Total (13.9) (18.4)% 35

36 Construction, Mining & Utility Equipment: Causes for Difference in Sales and Segment Profit Sales Jan.- Mar., 211 vs. Jan.- Mar. 212 Foreign exchange rate difference (8.8) Sales Sales difference difference in other in China markets (63.4) Segment profit Jan.- Mar., 211 vs. Jan.- Mar. 212 Foreign exchange rate difference (3.8) Fixed costs difference (2.) Production costs difference (1.6) Selling price difference + 9. Volume difference & others billion yen +2.8 billion yen Positive factor Negative factors Positive factors Negative factors Jan.-Mar., 211 Jan.-Mar., 212 Jan.-Mar., 211 Jan.-Mar., /USD 114/EUR 12.5/RMB 8/USD 16/EUR 12.7/RMB 82/USD 114/EUR 12.5/RMB 8/USD 16/EUR 12.7/RMB 13.7% Segment profit ratio 14.2% 36

37 Quarterly Sales and Operating Income Quarterly sales Industrial Machinery & Others Construction, Mining & Utility Equipment Elim ination (1) Exchange rates 1USD 1EUR 1RMB (7.4) (8.3) (6.8) (8.4) (4.8) (4.9) (3.5) (4.9) (2.7) (3.6) (2.9) (3.9) (3.) (3.9) (3.) (3.6) FY8/1Q FY8/ FY8/ FY8/ FY9/1Q FY9/ FY9/ FY9/ FY1/1Q FY1/ FY1/ FY1/ FY11/1Q FY11/ FY11/ FY11/ 8/1Q 8/ 8/ 8/ 9/1Q 9/ 9/ 9/ 1/1Q 1/ 1/ 1/ 15 yen 17 yen 95 yen 95 yen 97 yen 93 yen 9 yen 91 yen 91 yen 85 yen 82 yen 82 yen 165 yen 159 yen 126 yen 123 yen 133 yen 133 yen 133 yen 124 yen 115 yen 111 yen 11 yen 114 yen 15.2 yen 15.7 yen 13.9 yen 13.9 yen 14.2 yen 13.6 yen 13.2 yen 13.3 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 11/1Q 11/ 11/ 11/ 81 yen 77 yen 78 yen 8yen 118 yen 19 yen 15 yen 16yen 12.5y en 12.1 yen 12.3yen 12.7yen % 12.6% 9.4% *1 (48.2) Quarterly operating income % 3.5% 4.6% Operating income Operating income ratio 54. * % 12.1% 13.3% 11.1% 13.8% 13.1% 12.7% 12.1% 7.2% FY8/1Q FY8/ FY8/ FY8/ FY9/1Q FY9/ FY9/ FY9/ FY1/1Q FY1/ FY1/ FY1/ FY11/1Q FY11/ FY11/ FY11/ 3% 15% % (5) (12.7)% *1 Including structural reform expenses of 32.3 billion yen. *2 Including adverse effects of 7. billion yen from the earthquake disaster. (15)% 37

38 Construction, Mining & Utility Equipment: Quarterly Sales (To Outside Customers) by Region FY8/1Q FY9/1Q FY1/1Q FY11/1Q Exchange rates 8/1Q 8/ 8/ 8/ 9/1Q 9/ 9/ 9/ 1/1Q 1/ 1/ 1/ 11/1Q 11/ 11/ 11/ 1USD 15 yen 17 yen 95 yen 95 yen 97 yen 93 yen 9 yen 91 yen 91 yen 85 yen 82 yen 82 yen 81 yen 77 yen 78 yen 8yen 1EUR 165 yen 159 yen 126 yen 123 yen 133 yen 133 yen 133 yen 124 yen 115 yen 111 yen 11 yen 114 yen 118 yen 19 yen 15 yen 16yen 1RMB 15.2 yen 15.7 yen 13.9 yen 13.9 yen 14.2 yen 13.6 yen 13.2 yen 13.3 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 12.5y en 12.1 yen 12.3 yen 12.7yen Africa Middle East Oceania Asia China CIS Latin America Europe North America Japan 38

39 Industrial Machinery & Others : Quarterly Sales and Segment Profit Quarterly sales FY8/1Q FY8/ FY8/ FY8/ FY9/1Q FY9/ FY9/ FY9/ FY1/1Q FY1/ FY1/ FY1/ FY11/1Q FY11/ FY11/ FY11/ Exchange rates 8/1Q 8/ 8/ 8/ 9/1Q 9/ 9/ 9/ 1USD 15 yen 17 yen 95 yen 95 yen 97 yen 93 yen 9 yen 91 yen 1EUR 165 yen 159 yen 126 yen 123 yen 133 yen 133 yen 133 yen 124 yen 1RMB 15.2 yen 15.7 yen 13.9 yen 13.9 yen 14.2 yen 13.6 yen 13.2 yen 13.3 yen Quarterly segment profit 1/1Q 1/ 1/ 1/ 91 yen 85 yen 82 yen 82 yen 115 yen 111 yen 11 yen 114 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 11/1Q 11/ 11/ 11/ 81 yen 77 yen 78 yen 8yen 118 yen 19 yen 15 yen 16yen 12.5y en 12.1 yen 12.3 yen 12.7yen 39

40 Cautionary Statement This presentation sheets contain forward-looking statements that reflect management s views and assumptions in the light of information currently available with respect to certain future events, including expected financial position, operating results and business strategies. These statements can be identified by the use of terms such as will, believes, should, projects, plans, expects, and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured. Any forwardlooking statements speak only as of the date of this presentation sheets, and Komatsu assumes no duty to update such statements. Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company s principal products, owing to changes in the economic conditions in the Company s principal markets; changes in exchange rates or the impact of increased competition; unanticipated costs or delays encountered in achieving the Company s objectives with respect to globalized product sourcing and new information technology tools; uncertainties as to the results of the Company s research and development efforts and its ability to access and protect certain intellectual property rights; the impact of regulatory changes and accounting principles and practices; and the introduction, success and timing of business initiatives and strategies. PC35-1 hydraulic excavator to be launched in Japan, following the U.S. and Europe. (Compliant to Japan s Act on Regulation, Etc. of Emissions From Non-road Special Motor Vehicles concerning the volume of emissions of NOx and particulate matters) 4