Business Results for FY2019 · 2020-05-18 · 1 May 18, 2020 Hiroyuki Ogawa Takeshi Horikoshi...

1

May 18, 2020

Hiroyuki Ogawa

Takeshi Horikoshi

Takuya Imayoshi

President and CEO

Senior Executive Officer and CFO

Executive Officer and General Manager of

Business Coordination Department

Business Results for FY2019(April 1, 2019 – March 31, 2020)

【Telephone conference】

Komatsu Ltd. Participants

2

Construction, Mining & Utility Equipment: Demand and Outlook for Seven Major Products (Global and By Region)

Construction, Mining & Utility Equipment: Mining Equipment

Construction, Mining & Utility Equipment: Parts

Contents

Highlights, Segment Sales and Profits for the Fourth Quarter (Jan.- Mar., 2020)

Highlights, Segment Sales and Profits for FY2019

Construction, Mining & Utility Equipment: Results for FY2019

Retail Finance: Highlights for FY2019

Industrial Machinery & Others: Highlights for FY2019

Consolidated Balance Sheets

Actual Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs

Ⅰ. Coronavirus (COVID-19) Effects on Komatsu Group’s Business <PP3-6>

Ⅲ. Business Results for FY2019 <PP10-21>

PP4-6:

Appendix <PP32-40>

PP34-37:

PP38-40:

PP23-28:

PP29-30:

P31:

Coronavirus (COVID-19) Effects on Komatsu Group’s Business

Quarterly Results

Book-to-Bill Ratio [Orders Received / Sales (6 Months)]

Ⅳ. Demand and Business Conditions <PP22-31>

PP11-13:

PP14-15:

PP16-17:

P18:

P19:

P20:

P21:

Ⅱ. Progress towards Mid-Term Management Targets <PP7-9>

PP8-9: Progress towards Mid-Term Management Targets

3

Ⅰ. Coronavirus (COVID-19) Effects on Komatsu Group’s

Business

4

・Employees, who are not directly engaged in production at plants, are teleworking, as a general rule.

・Employees, who are directly engaged in production at plants, are working after taking infection-preventive measures (fever checks, no use of

public transportation, and avoidance of crowded spaces, such as locker rooms). (Employees, engaged in administration, are teleworking as muchas possible.)

1. Efforts to prevent the spread of infections

As we at the Komatsu Group place top priority on the health and safety of our customers , local community residents and employees, we are

making our utmost efforts to prevent COVID-19 from spreading based on the policies of host governments of countries where we conduct business.


Health m

anagement by em

ployees

Health management &

come-to-office criteria

・Banned to come to office, when you have a fever and/or feels sick.

・Banned to come to office, when family member sharing the same

house is infected, or you/family member has a close contact with the

infected.

Teleworking Expanding the scope of teleworking applicability

Commuting 【Plants】 Forbitten to use public transportation as a general rule.

Business

tripsInternal Totally banned (Japan ⇔ Overseas)

Domestic Suspended as a general rule (excl. requested by customer)

Events & trainings Komatsu Group-sponsored events, trainings and seminars: Cancelled

or suspended as a general rule

Use of

facilities

Cafeterias Limited to designated hours and change in the seating arrangement

Locker

rooms

【Plants】 Allowed to wear work uniform in commuting and reduce the

use of locker rooms

Hygiene measures, etc. Strengthen cleaning. Install hygiene (alcohol disinfectant) stations.

【Plants】 Wear face masks.

Avoidance

of3Cs

Hygiene

measures

(face masks, w

ashing hands, disinfectant, etc.)

Governm

entpolicies: Restraint on trans-prefectural travels,

boarder measures, etc.

Respond

according to

different

phases and

regions.

Employees’

safety and

peace of

mind

Sustainable

measures

Specific preventive measures

5Coronavirus (COVID-19) Effects on Komatsu Group’s Business

2．Effects on production

To absorb the effects of the changing market demand and foreign exchange rates, we have conventionallyengaged in global cross-sourcing and procurement of finished vehicles and parts. We are also promotingalternative procurement and inventory reallocation to minimize adverse effects on production, and we havenot experienced any problems in the supply chain.

＜Main production bases with problems, such as halting operations＞

＜Main production bases which have already resumed operation＞

With respect to production bases other than the above, they are in operation by not only complying with

the policies of concerned governments, but also taking infection-preventive measures.

【Assistance for suppliers】・To suppliers facing challenging management conditions, we are providing assistance in the forms of financing

and helping them to obtain the Japanese government subsidies for employment adjustment.

Region Base Conditions

Latin America Komatsu do Brasil Ltda. Halted production (April 6 -- 21). Resumed production on April 22.

Komatsu Italia Manufacturing S.p.A. Halted production (March 26 -- May 3). Resumed production on May 4.

Komatsu Germany GmbH Halted produciton (April 4 -- 13). Resumed production on April 14.

Komatsu Forest AB Halted production (April 13 -- May 1). Resumed production on May 2.

Komatsu Manufacturing Rus LLC Halted production (March 28 -- April 10). Resumed production on April 13.

China All plants Resumed production steadily since February 10. All plants on February 17.

Europe & CIS

Region Base Conditions

Europe Komatsu UK Ltd. Halting production (March 30 -- May 31)

Asia Komatsu India Pvt. Ltd. Halting production (March 24 -- May 17). To be resumed on May 18.

6

1) Customers’ work sites and machine operations

In the countries/regions where the governments have issued restrictions, we have seen some adverse effects, such as the

temporary suspension of business. Meanwhile, our customers engaging in construction, mining, agriculture, forestry and

transportation, which are regarded as essential business for the support of social infrastructure, are operating at their work sites.

We will continue to closely monitor KOMTRAX (Komatsu Machine Tracking System) data from customers’ machines in operation

and other pertinent information.

2) Sales and product support operations

Our distributors are working on the continuous supply of products, parts, and service to customers, as they reassess their supply

routes and shift work schedules while teleworking.

3) Retail finance

From some customers and distributors, we have received requests for extensions on their payments. We are meeting their requests

after learning about their specific conditions. With respect to cash management of Komatsu Group companies, they have secured

sufficient cash reserves and credit lines and have no problems as of today.

4) Sales

In the fourth quarter, we weathered significant effects in China, North America, Europe and Asia, including India, in the construction,

mining and utility equipment business. Similarly in the industrial machinery and others business, sales of presses and machine

tools in the automobile manufacturing industry were impacted. All in all, we believe the coronavirus pandemic caused a drop of

about JPY40 billion in sales.

5) Consolidated business results for the fiscal year ending March 31, 2021

It is still impossible to predict the end of the coronavirus (COVID-19) pandemic. Concerning the projection of consolidated business

results for the fiscal year ending March 31, 2021, it is difficult for Komatsu to make those calculations in an appropriate and rational

manner, so they remain undecided as of now. We will disclose them as soon as it becomes possible to calculate them in the future.

3. Effects on sales and business results


7

Ⅱ. Progress towards Mid-Term Management Targets

8

8

Three strategies Specific efforts

1. Value creation

by means of

innovation

Achievements

in FY2019

• Deployed SMARTCONSTRUCTION at over 10,000 construction sites in Japan (cumulative).

• Announced the provision of digital transformation of SMARTCONSTRUCTION (started in April 2020) .

• Announced the introduction of add-on kits for hydraulic excavators, which enable 3D construction

(started in April 2020).

• Achieved 221 AHS dump trucks in operation.

• Acquired a mining machine operator training company (Immersive Corporation Pty Ltd).

• Exhibited an electric mini excavator at bauma2019 and launched it as rental model in Japan.

Tasks ahead• Facilitate overseas deployment of SMARTCONSTRUCTION.

• Develop new mining platforms.

• Develop automation, autonomy (self-supporting), electrification, and remote control technologies.

2. Growth

strategies based

on business

reforms

Achievements

in FY2019

• Integrated/consolidated business sites of Komatsu Mining Corp. (KMC) with ours.

• Launched models for aggregate and cement application.

• Conducted model change of hydraulic excavators for use in Strategic Markets.

• Launched hydraulic excavators equipped with the KomVision Human Detection & Collision Mitigation

System as a standard feature in Japan.

• Acquired a forest machinery maker (TimberPro) of the United States.

Tasks ahead

• Enhance market position of the underground hard rock mining equipment business.

• Launch next-generation KOMTRAX.

• Continue to promote value chain reforms to achieve lifecycle product support.

• Reform the industrial machinery business (expand synergy with the construction equipment

business and foster growth based on core technologies).

3. Structural

reforms for

growth

Achievements

in FY2019

• Promoted steady cost improvement efforts.

• Received the Prime Minister’s Award for our KOM-MICS, connecting manufacturing plants.

• Began construction of KMC’s new Milwaukee plant and Komatsu Forest’s new Umea plant.

Tasks ahead

• Promote reforms by deploying ICT・IoT.

• Promote continuous cost improvement efforts.

• Strengthen human resource development for global business and promote diversity of human

resources.

Progress Made in Efforts of Focus and Tasks in FY2020 and Onward

9

1,035.8 1,027.2 1,127.3 1,356.0

1,612.1

1,893.3

2,243.0 2,021.7

1,431.5

1,843.1 1,981.7 1,884.9 1,953.6 1,978.6

1,854.9 1,802.9

2,501.1 2,725.2

2,444.8

(13.2)23.9 29.8

95.8 163.4

244.7

332.8

151.9

67.0

222.9 256.3 211.6 240.4 242.0

208.5 174.0

268.5

397.8

250.7

-150

0

150

300

450

600

750

900

-500

0

500

1,000

1,500

2,000

2,500

3,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Sales

Operating income

Operating income ratio

-1.3%

2.3% 2.6%

7.1%10.1%

12.9%14.8%

7.5%4.7%

12.1% 12.9%11.2% 12.3% 12.2% 11.2%

9.7% 10.7%

14.6%

10.3%

126 121 113 108 114 117 114

101 93

85 79 85 100

110 121

109 111 111 109

60

90

120

150

Business Results and Progress towards Mid-Term Management Targets

Sales（Billions of yen）

Exchange rate（¥/USD）

Retail Finance• ROA: 1.5-2.0% ・ROA 1.5%

• 5.0 or under for net debt-to-equity ratio ・Net debt-to-equity ratio 3.80

Operating income（Billions of yen）

＜Status of Progress Made in Management Targets＞

TargetsFY2019 (1st year of Mid-Term Management Plan)

Index Result

Growth • Growth rate above the industry’s average ・Sales growth rate (10.3)%

Profitability • An industry’s top-level operating income ratio ・Operating profit ratio 10.3%

Efficiency • ROE of 10% or higher ・ROE 8.6%

Financial position • Industry’s top-level financial position. ・Net debt-to-equity ratio 0.43

Shareholder

return

• Keep a fair balance between investment for growth and shareholder return

(incl. stock buyback), while placing main priority on investment.

• Set the goal of a consolidated payout ratio of 40% or higher.・Dividend payout ratio 57.7%

ESG

・Reduction of environmental impact: CO2 emissions: Decrease by 50% in 2030 from 2010.

Renewal energy use : Increase to 50% of total energy use in 2030.・Evaluation by external organizations: Selected for DJSI *1 (World & Asia Pacific) and

CDP*2 A-list (Climate Changes and Water Security)

・ Reduction of

environmental impact・Evaluation by external

organizations

CO2: To reduce by 40% in 2021.Renewable energy use: 15% in 2021DJSI: SelectedCDP: Score of climate change: ACDP: Score of water security: A-

・Both sales and operating income decreased, as affected by declined demand in Strategic Markets, such as Asia, as well as the coronavirus pandemic.

10

Ⅲ. Business Results for FY2019

11Highlights of Business Results for the Fourth Quarter (Jan.- Mar., 2020)

Jan.-Mar., 2019

(A)

Jan.-Mar., 2020

(B)Changes (B-A)

increase

(decrease)

Change

%

Net sales 706.6 617.4 (89.2) (12.6)%

Segment profit 103.1 50.7 (52.3) (50.8)%

Other operating income (expenses) (1.1) (7.8) (6.7) -

Operating income 101.9 42.8 (59.0) (57.9)%

Profit ratio 14.4% 6.9% (7.5)pts. -

Other income (expenses) (2.4) (9.6) (7.2) -

Income before income taxes 99.4 33.1 (66.2) (66.6)%

Net income attributable to

Komatsu Ltd72.2 18.5 (53.7) (74.3)%

Billions of yen

¥108.1/USD¥120.0/EUR¥15.5/RMB

・ Consolidated net sales decreased by 12.6% from the corresponding period a year ago, to JPY617.4 billion.

・ Operating income declined by 57.9% to JPY42.8 billion. Operating income ratio was 6.9%, down 7.5 points.

・ Net income attributable to Komatsu Ltd. declined by 74.3% to JPY18.5 billion.

¥109.4/USD¥124.7/EUR¥16.2/RMB

12

■ Construction, Mining & Utility Equipment:Sales decreased from the corresponding period a year ago, as adversely affected by reduced sales volume and foreign exchange rates. Segment profit declined,

mainly due to reduced sales volume and a change in the geographic composition of sales.

・Construction, Mining & Utility Equipment: Sales decreased by 12.6% from the corresponding period a year ago, to JPY553.1 billion. Segment profit declined by 52.1%

to JPY44.4 billion. Segment profit ratio worsened to 8.0%, down 6.7 points.・Retail Finance: Revenues expanded by 3.3% from the corresponding period a year ago, to JPY17.9 billion. Segment profit declined by 59.6% to JPY1.7 billion.

・Industrial Machinery & Others: Sales decreased by 16.4% from the corresponding period a year ago, to JPY50.5 billion. Segment profit declined by 31.7% to JPY4.0

billion.

Segment Sales and Profits for the Fourth Quarter (Jan.- Mar., 2020)

Jan.-Mar., 2019

(A)

Jan.-Mar., 2020

(B)

Changes (B-A)

increase

(decrease)

Change

%

Net sales 706.6 617.4 (89.2) (12.6)%

Construction, mining & utility equipment

Retail finance

Industrial machinery & others

633.0[631.1]

17.4[15.5]

60.4[59.9]

553.1[551.5]

17.9[15.7]

50.5[50.1]

(79.9)[(79.5)]

+0.5[+0.1]

(9.9)[(9.7)]

(12.6)%[(12.6)%]

+3.3%[+1.0%](16.4)%

[(16.3)%]

Elimination (4.3) (4.3) +0.0 -

Segment profit 103.1 50.7 (52.3) (50.8)%

Construction, mining & utility equipmentRetail financeIndustrial machinery & others

92.84.35.9

44.41.74.0

(48.3)(2.6)(1.8)

(52.1)%(59.6)%(31.7)%

Corporate & elimination (0.0) 0.4 +0.5 -

% : Profit ratio

Billions of yen

[ ]: Sales after elimination of inter-segment transactions

14.6%

14.7%

25.2%

9.9%

■ Retail Finance:Revenues improved from FY2018, supported by increased average asset balance. Segment profit decreased, as mainly affected by no more reversal of

allowances for doubtful accounts, which was recorded in China for the FY2018, as well as allowances were for doubtful accounts related to mining accounts recorded for FY2019.

■ Industrial Machinery & OthersBoth sales and segment profit decreased, reflecting declined demand for machine tools in the automobile manufacturing industry.

Review of three business segments

8.2%

8.0%

9.9%

8.0%

(6.4)pts.

(6.7)pts.

(15.3)pts.

(1.9)pts.

13

※

Construction, Mining & Utility Equipment :

Sales by Region (To Outside Customers) for the Fourth Quarter (Jan.- Mar., 2020)

・Sales to outside customers decreased by 12.6% from the corresponding period a year ago, to JPY551.5 billion.

・Sales dropped sharply in Asia, North America and China.

・The ratio of sales in Traditional Markets increased to 51% of total sales.

Traditional Markets Strategic Markets

Plus

Minus

(79.5)[(12.6)%]

[(4.1)%]

[(36.9)%] [(1.2)%]

[+40.1%]

[(8.0)%]

[(28.6)%]

[(15.9)%]

[(16.0)%]

[(3.4)%]

[(2.8)%]

※ Region where sales increased, when foreign exchange effects were excluded.

551.5

Jan.-Mar.,2020

631.1

Jan.-Mar.,2019Vs. Jan.-Mar., 2019

Billions of

yenJapan

North

AmericaEurope

Latin

AmericaCIS China Asia Oceania

Middle

EastAfrica Total

Jan.-

Mar.,2019(a)87.6 164.4 60.9 80.7 32.6 46.0 72.9 51.5 7.0 27.0 631.1

Jan.-

Mar.,2020(b)84.6 138.1 59.2 77.4 27.4 32.9 45.9 50.9 9.9 24.8 551.5

Change

(b-a)(2.9) (26.3) (1.7) (3.3) (5.1) (13.1) (26.9) (0.6) +2.8 (2.1) (79.5) Japan Japan

North America North

America

Europe

Europe

Latin America

Latin America

CIS

CIS

China

China

Asia

Asia

Oceania

Oceania

Middle East

Middle East

Africa

Africa

0

100

200

300

400

500

600

Jan.-Mar., 2019 Jan.-Mar., 2020

Billions of yen

9%

1%

12%

13%

StrategicMarkets

50%

Traditional

Markets

50%

631.1

14%

5%

8%

10%

26%

7%

4%

5%2%

9%

6%

5%

8%

14%

11%

25%

15%

StrategicMarkets

49%

Traditional

Markets

51%

551.5

Effects of Foreign

exchange rate: (10.3) billions of yen

※ ※

14Highlights of FY2019 Business Results

・Consolidated net sales decreased by 10.3% from FY2018, to JPY2,444.8 billion.

・Operating income declined by 37.0% to JPY250.7 billion. Operating income ratio was 10.3%, down 4.3 points.

・Net income attributable to Komatsu Ltd. declined by 40.0% to JPY153.8 billion.

Changes (B-A)

Increase(Decrease)

Change%

Net sales 2,725.2 2,444.8 (280.3) (10.3)%

Segment profit 399.3 255.0 (144.3) (36.1)%

Other operating income (expenses) (1.5) (4.3) (2.7) -

Operating income 397.8 250.7 (147.0) (37.0)%

Profit ratio 14.6% 10.3% (4.3)pts. -

Other income (expenses) (20.3) (27.5) (7.2) -

Income before income taxes 377.4 223.1 (154.3) (40.9)%

Net income attributable to Komatsu Ltd 256.4 153.8 (102.6) (40.0)%

FY2018 Results

(A)

¥108.7/USD¥120.8/EUR¥15.6/RMB

ROE 14.7% 8.6% (6.1)pts.

Net D/E ratio 0.43 0.43 +0.0pts.

Cash dividends per share 110yen 94Yen (16)Yen

Consolidated payout ratio 40.5% 57.7%

Billions of yen¥110.6/USD¥128.5/EUR¥16.5/RMB

FY2019 Results

(B)

15

■ Construction, Mining & Utility Equipment:Sales decreased from FY2018, as adversely affected by reduced sales volume and foreign exchange rates. Segment profit declined, mainly due to reduced sales

volume and a change in the geographic composition of sales.

・Construction, Mining & Utility Equipment: Sales decreased by 10.8% from FY2018, to JPY2,211.2 billion. Segment profit declined by 37.8% to JPY227.3 billion. Segment

profit ratio worsened to 10.3%, down 4.4 points.・Retail Finance: Revenues expanded by 11.5% from FY2018, to JPY70.9 billion. Segment profit declined by 27.6% to JPY12.6 billion.

・Industrial Machinery & Others: Sales decreased by 12.6% from FY2018, to JPY177.5 billion. Segment profit declined by 26.5% to JPY13.7 billion.

Segment Sales and Profits for FY2019

FY2018

Results

(A)

FY2019

Results

(B)

Changes (B-A)

increase

(decrease)

Change

%

Net sales 2,725.2 2,444.8 (280.3) (10.3)%

Construction, mining & utility equipment

Retail finance

Industrial machinery & others

2,478.9[2,466.6]

63.5[57.3] 203.2

[201.2]

2.211.2[2,205.9]

70.9[62.9] 177.5

[175.9]

(267.7)[(260.6)]

+7.3[+5.5] (25.6)

[(25.2)]

(10.8)%[(10.6)%]

+11.5%[+9.8%](12.6)%

[(12.6)%]

Elimination (20.5) (14.8) +5.6 -

Segment profit 399.3 255.0 (144.3) (36.1)%

Construction, mining & utility equipmentRetail financeIndustrial machinery & others

365.317.518.6

227.312.613.7

(138.0)(4.8)(4.9)

(37.8)%(27.6)%(26.5)%

Corporate & elimination (2.0) 1.3 +3.4 -

% : Profit ratio

Billions of yen

[ ]: Sales after elimination of inter-segment transactions

14.7%

14.7%

27.5%

9.2%

10.4%

10.3%

17.9%

7.7%

■ Retail Finance:Revenues improved from FY2018, supported by increased average asset balance. Segment profit decreased, as mainly affected by no more reversal of

allowances for doubtful accounts, which was recorded in China for the FY2018, as well as allowances were for doubtful accounts related to mining accounts recorded for FY2019.

■ Industrial Machinery & OthersBoth sales and segment profit declined, due to reduced sales of presses and machine tools to the automobile manufacturing industry, as well as declined sales of Excimer laser-related products on the semiconductor market.

Review of three business segments

(4.3)pts.

(4.4)pts.

(9.6)pts.

(1.5)pts.

16

※


Sales by Region (To Outside Customers) for FY2019

・Sales to outside customers decreased by 10.6% from FY2018, to JPY2,205.9 billion.

・While sales increased in Europe, those declined sharply especially in Asia, North America, China and Africa. As a result, total sales

declined. ・The ratio of sales in Traditional Markets increased to 50% of total sales.

Traditional Markets Strategic Markets

Plus

Minus

(260.6)[(10.6)%]

[(5.0)%]

[(39.3)%]

[(5.7)%]

[+1.2%]

[(20.8)%]

[(22.9)%]

[(5.4)%][(6.3)%]

[(0.6)%]

[+5.9%]

※ Region where sales increased, when foreign exchange effects were excluded.

2,466.6

FY2018

Vs. FY2018

Billions of

yenJapan

North

AmericaEurope

Latin

AmericaCIS China Asia Oceania

Middle

EastAfrica Total

FY2018(a) 312.7 612.2 207.5 325.6 134.6 164.8 339.0 215.6 30.2 124.1 2,466.6

FY2019(b) 310.8 573.5 219.7 309.2 127.4 127.0 205.7 203.3 30.6 98.2 2,205.9

Change

(b-a)(1.9) (38.6) +12.1 (16.3) (7.2) (37.7) (133.2) (12.2) +0.3 (25.8) (260.6)

Japan Japan

North America

North America

EuropeEurope

Latin America

Latin America

CISCIS

ChinaChina

Asia

Asia

Oceania

Oceania

Middle East

Middle East

Africa

Africa

0

500

1,000

1,500

2,000

2,500

FY2018 FY2019

Billions of yen

9%

1%

14%

13%

StrategicMarkets

54%

Traditional

Markets

46%

2,466.6

13%

5%

9%

8%

25%

7%

5%

4%

1%

9%

6%

6%

9%

14%

10%

26%

14%

StrategicMarkets

50%

Traditional

Markets

50%

2,205.9Effects of Foreign

exchange rate: (61.3) billions of yen

2,205.9

FY2019

※ ※

17

365.3

227.3

150

200

250

300

350

400

FY18 FY19

2,478.9

2,211.2

2,000

2,100

2,200

2,300

2,400

2,500

2,600

FY18 FY19

(267.7) billion yen

10.3%14.7%

(138.0) billion yen

Sales

FY2018 vs. FY2019

Segment profit

FY2018 vs. FY2019

Billions

of yen

Billions

of yen

Positive factor

Negative factorPositive factor

Negative factor

Volume

(227.3)

Selling

price

+12.2

Foreign

exchange rate

(63.0)Volume,

product mix,

etc.

(133.5)

Fixed costs

(6.3)

Selling

price

+12.2

Foreign

exchange

rate

(10.6)

Segment profit ratio

New additions to

consolidation

+10.4New

additions to

consolidation

+0.2

文字まだ


Causes of Difference in Sales and Segment Profit for FY2019

・Sales decreased by JPY267.7 billion from FY2018, as adversely affected by reduced sales volume and foreign exchange rates.

・Segment profit declined by JPY138.0 billion, as adversely affected by reduced sales volume and a change in the geographic

composition of sales. ・Segment profit ratio was 10.3%, down 4.4 points.

¥110.6/USD¥128.5/EUR¥16.5/RMB

¥108.7/USD¥120.8/EUR¥15.6/RMB

18

Japan JapanEurope EuropeChina ChinaOceania OceaniaOthers Others

North America North

America

0

100

200

300

400

500

600

700

800

63.570.9

17.512.6

0

20

40

60

80

100Sales Segment profit

Japan JapanEurope EuropeChina China

Oceania OceaniaOthers Others

North America

North America

0

100

200

300

400

500

600

700

800

900Billions of yen Billions of yen

Mar.31, 2019

Billions of yen 2019/3E 2020/3E Changes

Interest-bearing debt 638.0 648.0 +9.9

Interest-bearing debt, net 634.0 642.4 +8.3

Net D/E ratio 3.64 3.80 +0.16pts.

Revenues

FY2018 vs FY2019

Assets

Mar.31, 2019 vs. Mar.31, 2020

Retail Finance: Highlights for FY2019

842.1

¥111.1/USD

¥124.7/EUR

¥16.6/RMB

New Contracts

FY2018 vs FY2019

Billions of yen

612.5695.6

FY2018 Mar.31, 2020¥108.8/USD

¥119.6/EUR

¥15.3/RMB

FY2019 FY2018 FY2019

・While assets increased mainly in North America and Europe, assets decreased slightly from the previous fiscal-year, adversely

affected by foreign exchange rates. ・New contracts declined mainly in North America, China and Latin America.

・Revenues advanced due to increased assets.

・Segment profit decreased, as mainly affected by no more reversal of allowances for doubtful accounts, which was recorded in

China for the FY2018, as well as allowances were for doubtful accounts related to mining accounts recorded for FY2019.

¥110.6/USD

¥128.5/EUR

¥16.5/RMB

841.0

¥108.7/USD

¥120.8/EUR

¥15.6/RMB

¥110.6/USD

¥128.5/EUR

¥16.5/RMB

FY2018 FY2019 Changes

ROA 2.2% 1.5% (0.7)pts.

¥108.7/USD

¥120.8/EUR

¥15.6/RMB

19

18.6

13.7

9.2%7.7%

-10

-5

0

5

10

0

10

20

30

FY2018 FY2019

（%）

Billions of yen

:Segment profit ratio

・Sales decreased by 12.6% from FY2018, to JPY177.5 billion, mainly affected by reduced sales of presses and machine tools to the automobile

manufacturing industry, as well as declined sales of Excimer laser-related products on the semiconductor market. ・Segment profit ratio was 7.7%.

Industrial Machinery & Others: Highlights for FY2019

FY2018 FY2019

Changes

Increase(Decrease)

% Change

Komatsu Industries Corp. 57.4 55.0 (2.3) (4.2)%

Komatsu NTC Ltd. 67.9 48.3 (19.5) (28.8)%

Gigaphoton Inc. 40.5 35.0 (5.4) (13.5)%

Others 37.3 39.0 +1.7 +4.7%

Total 203.2 177.5 (25.6) (12.6)%

Breakdown of sales

Billions of yen

203.2177.5

0

50

100

150

200

FY2018 FY2019

Billions of yen

SalesFY2018 vs. FY2019

Segment profitFY2018 vs. FY2019

20Consolidated Balance Sheets

・Total assets grew by JPY15.4 billion from the previous fiscal year-end to JPY3,653.6 billion, mainly due to increased Cash & deposits and other

assets. ・Komatsu Ltd. shareholders’ equity ratio decreased by 1.4 points to 48.5%.

Mar. 31, 2019 Mar. 31, 2020Increase

(Decrease)

Cash & deposits (incl. time deposits) [a] 150.8 249.6 +98.8

Accounts receivable (incl. long-term trade receivables) 1,258.5 1,165.3 (93.2)

Inventories 837.5 805.3 (32.2)

Tangible fixed assets 776.4 757.6 (18.7)

Other assets 614.8 675.7 +60.8

Total assets 3,638.2 3,653.6 +15.4

Accounts payable 266.9 220.1 (46.7)

Interest-bearing debt [b] 930.7 1,012.3 +81.6

Other liabilities 537.7 564.9 +27.2

Total liabilities 1,735.3 1,797.4 +62.1

[Shareholders’ equity ratio] (49.9%) (48.5%) （(1.4).pts.）

Komatsu Ltd. shareholders’ equity 1,815.5 1,771.6 (43.9)

Non-controlling interests 87.2 84.6 (2.6)

Liabilities & Equity 3,638.2 3,653.6 +15.4

Interest-bearing debt, net [b-a] 779.8 762.7 (17.1)

Net D/E ratio (excl. the retail finance business)

¥108.8/USD

¥119.6/EUR

¥15.3/RMB：Net D/E ratio

0.43 0.43

0.09 0.08

Billions of yen¥111.1/USD

¥124.7/EUR

¥16.6/RMB

*1

*1

*1 Note: In compliance with the new accounting standard which Komatsu has adopted, right-of-use assets under operating lease and operating lease liabilities increased by about JPY53.5 billion from

the previous fiscal year-end.

21

62.8 63.9 65.5

10.7 9.5 9.2

2.9% 2.7% 3.1%

0

20

40

60

80

100

FY17 FY18 FY19

Industrial Machinery&Others

Construction, Mining&Utility Equipment

% of sales

51.7 63.4

81.9

4.7

4.2

4.6

60.1 57.7 56.4

0

10

20

30

40

50

60

70

0

20

40

60

80

100

120

FY17 FY18 FY19

Industrial Machinery&Others

Construction, Mining&Utility Equipment and Retailfinance

R&D Expenses Fixed costsInvestment in production and

other facilities* and depreciation

56.5

67.6

73.674.7

Actual Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs

Billions

of yen

Billions

of yen

Billions

of yen*Excl. investment in rental assets

86.5 73.4

0

100

200

300

400

500

600

FY2017 FY2018 FY2019

・CAPEX: Increased, mainly reflecting KMC’s restructuring of plants.

・R&D expenses and Fixed costs: While R&D expenses increased due to focused investment in growth areas, overall costs remained

about flat, supported by the reduction of other expenses.

22

Ⅳ. Demand and Business Conditions

23

・In FY2019, demand decreased presumably by 8% from FY2018.

・In the Fourth quarter of FY2019, total demand declined by 16% from the corresponding period a year ago, as adversely affected by the spread of coronavirus

infections mainly in China, North America, Europe and Asia.

+15%

-20%-20%

+45%

+5%

-7%

+3%

-9%-14%

+4%

+24%

+6%

-8%

-120%

-110%

-100%

-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

0

100,000

200,000

300,000

400,000

500,000

600,000

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Japan N.America

Europe China

Others Y-o-Y growth rate

FY19: (8)%

FY20 Initial projection: About flat

from FY2019

Construction, Mining & Utility Equipment: Actual and Projected Demand for 7 Major Products

-16% -18%-11%

-8% -8%-0%

+4%

+23%+26%+26% +26%

+18%+18%

+8%+3%

-2% -7% -3%-7%

-16%

-200%

-170%

-140%

-110%

-80%

-50%

-20%

10%

40%

70%

0

30,000

60,000

90,000

120,000

150,000

FY

15/1Q

2Q 3Q 4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Japan N.America

Europe China

Others Y-o-Y growth rate

Quarterly demand for 7 major products

Units Growth rate

FY19/4Q: (16)%

100

80

64

9297

9093

84

72

Annual demand for 7 major products

UnitsGrowth rate

Source: Estimated by Komatsu

：FY07=100Index

76

94100

92

Projected*

* Projected at the time of FY2020 budgeting. For reference only and not projection as of now.

24

0% -1%-4%-1%-1%-8%

7%

-5%-9%-1%

-10%-9%-2%-6%-7%-3%-8%

3%

-8%-3%-6%

-11%-1%-2%

2%

-80%

-60%

-40%

-20%

0%

20%

40%

0

50

100

150 Operating hours (left scale)

Y-o-Y (right scale)

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

0

10

20

30

40

50

60

70

80

90

100

110

120


Private-sector building renovationPrivate-sector non-residentialPrivate-sector residentialGovernment

Construction, Mining & Utility Equipment : Demand in Major Markets (1) Japan

[Sources] Construction investment by the Ministry of Land, Infrastructure,

Transport & Tourism, and Research Institute of Construction and Economy

Demand for 7 major products and No. of exported used equipment estimated by Komatsu

*1 Note: In September 2019, the Ministry of Land, Infrastructure, Transport and Tourism started to adding the

collected data concerning renovation and renewal investment in buildings. Bar graphs above include

retroactively added data until FY15.

*2 Note: Projected at the time of FY2020 budgeting. For reference only and not projection as of now.

Demand for new

equipment

Demand for new equipment (7 major products) and construction investment

Construction investment

Trillion of yen

Demand for new equipment /

Export of used equipment

(Units)

0

4,000

8,000

12,000

FY

15/4Q

FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Rental companies

Regular customers

(16,000)

(12,000)

(8,000)

(4,000)

0

4,000

8,000

12,000

16,000

-100%

-75%

-50%

-25%

0%

25%

50%

75%

100%

FY

15/1Q

2Q 3Q 4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Demand (units) Y-o-Y change (%)

：FY07/4Q=100Index


Y-o-Ygrowth rate Units

Quarterly demand for hydraulic excavators (Rental & Regular uses)

Y-o-Y

growth rate

Units

+17%

(10)%

Rental

Regular

83 7095101 95

FY19: +5%

FY20: Initial projection (5)%~+/-0%

4Q:+0%

・In FY2019, demand increased by 5% from FY2018.

・The increase was mainly supported by the recovery from reduced sales, as affected by the reactionary drop of pre-buy demand in anticipation of

the new emission control regulations enforced in September 2017.

Exports of used equipment

*1

KOMTRAX in Japan: Average operating hours per monthHours

*2

Projection

25

0

20,000

40,000

60,000

80,000

FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20

050100150200250

-20,000

-10,000

0

10,000

20,000

30,000

-40%

-20%

0%

20%

40%

60%

FY

15/1Q

2Q 3Q 4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Demand(unites) Y-o-Y Change(%)

Construction, Mining & Utility Equipment : Demand in Major Markets (2) North America

[Source]: Demand for 7 major products estimated by Komatsu

US

AC

anad

a

Demand for 7

major products

(Units)

Demand for 7 major products and US housing starts

Housing starts

Housing starts

in ten thousands

0%

20%

40%

60%

80%

100%

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

FY

18

FY

19

Rental-distributor(DORF)

Rental-Regular

Mining & energy

Road

Construction

Others

Quarterly demand for 7 major productsY-o-Y

growth rate Units

Breakdown of demand by segment (Unit basis)

Y-o-Y growth rate

102 98116 120

106

Index ：FY07/4Q=100

+2%

Rental

(12)%

Mining & energy

+2%

Road

Construction

Others

FY19: +3%

FY20: Initial projection (5)%~+/-0%

・In FY2019, demand increased presumably by 3% from FY2018.

・The increase resulted from strong demand for construction equipment mainly in the construction and rental industries. In the fourth quarter,

demand slowed down sharply due to the spread of coronavirus infections.

4Q:(12)%

7% 3%

-1%

2%

-1%-9%

0%

-6%-7%

3% 4% 1% 0%

-5%-8%

1%

-6%

6%

-6% -5%

0%

-8% -8%-13%-12%

-130%

-110%

-90%

-70%

-50%

-30%

-10%

10%

30%

50%

0

50

100

150

Operating hours (left scale)

Y-o-Y (right scale)

KOMTRAX in North America: Average operating hours per month

Hours

*1

*1 Note: Projected at the time of FY2020 budgeting. For reference only and not projection

as of now.

Projected*1

26

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000


Construction, Mining & Utility Equipment : Demand in Major Markets (3) Europe

Annual demand for 7 major productsUnits


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Southern

Eastern

Other Western Countries

Northern

The UK., France, and Germany

Y-o-Y

growth rate Units


(10,000)

(6,000)

(2,000)

2,000

6,000

10,000

14,000

18,000

-20%

-10%

0%

10%

20%

30%

40%

FY

15/1Q

2Q 3Q 4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Demand(unites) Y-o-Y change(%)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

FY18(Apr.-Feb.)

FY19(Apr.-Feb.)


5768 72 75

64

Region demand for 7 major products （Excl. 6t class）Units

FY19: (2)%

FY20: Initial projection +/-0%~+5%


・While demand remained firm in the major markets of Germany and France, it dropped sharply in the fourth quarter due adverse

effects of Brexit and the spread of coronavirus infections.

4Q:(16)%

7%

-2%

2%7% 0%

-3%

4%

-3%-3%-3%-1%

2%

-3%-4%-13%

0%

-11%-2%-6%-10%

-1%

1%

-2%-9%

-16%

-130%

-110%

-90%

-70%

-50%

-30%

-10%

10%

30%

0

50

100

150


Y-o-Y (right scale)

KOMTRAX in Europe: Average operating hours per month

Hours


as of now.

*1

Projected*1

27

Y-o-Y

growth rate Units

-15,000

-5,000

5,000

15,000

25,000

-100%

-50%

0%

50%

100%

150%

200%

FY

15/1Q

2Q 3Q 4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Demand (units) Y-o-Y growth rate

40

84

120 116

81

0

5,000

10,000

15,000

4 5 6 7 8 9 10 11 12 1 2 3

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

KOMTRAX in China : Average operating hours per month

-3%-3%-2%-6%

0%

-4%

9%

-14%-14%-12%

0%6%

-8%-4%-5%-3%-3%-4%-14%

2%

-1%

-43%-32%

-17%

3%

-200%-180%-160%-140%-120%-100%-80%-60%-40%-20%0%20%

0

50

100

150

200


Y-o-Y (right scale)

Quarterly demand for 7 major products (Foreign makers)

[Source]: Demand for 7 major products and hydraulic excavators estimated by Komatsu

Hours

Annual demand for 7 major products (Foreign makers)

Construction, Mining & Utility Equipment : Demand in Major Markets (4) China

0

20,000

40,000

60,000

80,000

100,000

120,000


Units

Monthly demand for hydraulic excavators : All modelUnits

＜Chinese New Year＞

： Feb. 8, 2016： Jan. 28, 2017： Feb. 16. 2018： Feb. 5. 2019： Jan. 25, 2020

(month)


FY19: (21)%

FY20 (Projection): +/-0%~+10%


・The decline was caused by a growing market share of domestic makers and the spread of coronavirus infections.

【Ref】Total demand including machines made by local makers

(Hydraulic excavators incl. mini shovels)

FY19: +2%, 4Q of FY19: (12)%,

FY20:+10%~+20%(Projection)

4Q:(31)%

Projection

28

Indonesia: Demand for construction & mining equipment by industrial sectorUnits

0

1,000

2,000

3,000

4,000

FY

15/3Q

4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Forestry

Agriculture

Construction

Mining

0

10,000

20,000

30,000

40,000


Indonesia

Others

Malaysia

Thailand

Construction, Mining & Utility Equipment : Demand in Major Markets (5) Southeast Asia

Annual demand for 7 major products


Units Quarterly demand for 7 major productsUnits

Y-o-Y

growth rate

-6,000

-3,000

0

3,000

6,000

9,000

-80%

-40%

0%

40%

80%

120%

FY

15/1Q

2Q 3Q 4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Indonesia Others Malaysia Thailand Y-o-Y change(%)

：

113145 133

97 105


FY19 :(24)%

FY20: Initial projection (10)%~(5)%

・In FY2019, demand decreased presumably by 24% from FY2018.・In Indonesia, the largest market of the region, demand for construction and mining equipment declined, reflecting no substantial

growth in infrastructure investment after the presidential election as well as sluggish price of thermal coal.

4Q:(21)%

4Q:(39)%

FY19:(35)%8% 8%

-2%

13%3% 7% 4% 2%

-2%-2%-1%-1%-8%-6%

2% 1%

-3%-3%-5%-3%-5%-5%-1%-4%

2%

-130%

-110%

-90%

-70%

-50%

-30%

-10%

10%

30%

0

70

140

210

280

350


Y-o-Y (right scale)

KOMTRAX in Indonesia: Average operating hours per month

Hours


as of now.

*1

Projected*1

29

Annual demand for mining equipment


Actual and Projected Demand for Mining Equipment

Y-o-Y change

・Dump trucks: 75 tons (HD785) and larger

・Bulldozers: 525HP (D375) and larger

・Excavators: 200 tons (PC2000) and larger

Note: Demand estimated by Komatsu

Quarterly demand for mining equipment

-3%

-24%-13% -14% -32%

-7%

18%

12%

96%

52%

49%

71%

41%

54%

20%10%

-6%-19%

-29%

-19%

-300%

-250%

-200%

-150%

-100%

-50%

0%

50%

100%

0

500

1,000

1,500

2,000

FY

15/1Q

2Q 3Q 4Q FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Middle East &Africa

Oceania

Asia

Japan&China

Europe&CIS

Latin America

N. America

Y-o-Y change

Units Y-o-Y change

+39%

+52%

-4%

-51%-25%

-13%

-3%

+64%

+29%

-18%

-400%

-350%

-300%

-250%

-200%

-150%

-100%

-50%

0%

50%

100%

0

2,000

4,000

6,000

8,000

10,000

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Middle East &AfricaOceania

Asia

Japan&China

Europe&CIS

Latin America

N. America

Y-o-Y change

・Wheel loaders (mechanical driven):

810HP (WA800) and larger

・Motor graders: 280HP (GD825) and larger

Units

・ In FY2019, global demand for mining equipment decreased presumably by 18% from FY2018.

4Q:(19)%

*1 Note: Projected at the time of FY2020 budgeting. For reference only and not projection as of

now.

FY19 :(18)%

FY20: : Initial projection (20)%~(10)% *1

Projected*1

30Construction, Mining & Utility Equipment : Sales of Mining Equipment

Annual sales of mining equipment (incl. parts and service) Quarterly sales of mining equipment (incl. parts and service)

69.867.4

72.0

64.568.8

107.2100.8

98.1

93.4

98.4

84.4

76.7

67.0

77.6

70.0

107.598.3

90.7

108.9

135.8

211.1222.3

252.2244.5241.5

272.8277.9

261.2244.9

237.0235.4 237.2

-18%

-15%

-18%-4%+26%

+115%

+145%

+132%

+80%

+14%+23% +10% +7%

+1%

-13% -15% -9%

-450%

-350%

-250%

-150%

-50%

50%

150%

0

50

100

150

200

250

300

350

400

450

FY

15/4Q

FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

18/4Q

FY

19/1Q

2Q 3Q 4Q

N. America Latin America Europe & CIS

Japan & China Asia Oceania

Middle East & Africa Y-o-Y change

256.1 273.3 272.7

374.1 421.8

390.6

300.0

358.3

291.3

417.0

554.0

614.5

506.3 499.3

447.3 433.6

930.2

1,053.5

954.6

+15%

+33%

+11%

-18%

-1%

-10%

-3%

+115%

+13%

-9%

-350%

-300%

-250%

-200%

-150%

-100%

-50%

0%

50%

100%

0

200

400

600

800

1,000

1,200

1,400

1,600

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY17 FY18 FY19

N. America Latin America

Europe &CIS Japan & China

Asia Oceania

Middle East & Africa Y-o-Y changeY-o-Y change

Billions

of yen Y-o-Y changeBillions

of yen

Parts

Service, etc.

Eq

uip

men

t

Parts

Service, etc.

Eq

uip

men

t

・In FY2019, sales decreased by 9% from FY2018, to JPY954.6 billion.

31

138.5 158.0

171.5 187.4 196.1

214.9 202.4

374.1 421.7

390.6 141.5

159.0 148.0 176.3

191.1 182.6 176.5

202.7

205.8

196.8

280.0

317.0319.5

363.7387.2

397.5378.8

576.8

627.5

587.5

+18% +13%

+1%

+14%+6%

+3%

-5%

+52%

+9%

-6%

-250%

-200%

-150%

-100%

-50%

0%

50%

0

100

200

300

400

500

600

700

800

900

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Mining equipment

Construction equipment

Y-o-Y

Construction, Mining & Utility Equipment : Sales of Parts

Annual sales of parts

Billions

of yenY-o-Y change

(%) Billions

of yen

Quarterly sales of parts

50.445.7 45.8 50.7

60.2

85.6 94.7 95.5

98.3102.7

107.6

104.2

107.2 100.8

98.193.4 98.4

44.9

42.142.0

43.0

49.3

49.4

50.9 50.6 51.850.8

51.0 50.953.1

51.7

51.148.0 46.1

95.3 87.8 87.8

93.8

109.5

135.0

145.7 146.1 150.0 153.5 158.6 155.1

160.3 152.4 149.1

141.4 144.6

-7%-14% -11%

-7%

+15%

+54%

+66%

+56%

+37%

+14% +9%+6% +7%

-1% -6%-9%

-10%

-180%

-160%

-140%

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

0

50

100

150

200

250

300

FY

15/4Q

FY

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q

Construction equipment

Mining equipment

Y-o-Y

Y-o-Y change

(%)

・In FY2019, sales of parts decreased by 6% from FY2018, to JPY 587.5 billion.

32

Appendix

33

29.7 34.3 42.867.0 51.7 59.4 74.8 82.4 96.0 104.2 95.5 101.9

74.7 67.2 65.842.8

7.7%8.4%

10.0%

11.6%

9.2% 10.0%

11.6% 11.9%

14.9% 15.5%

13.6% 14.4%

12.3%11.1% 10.7%

6.9%

-50

0

50

100

150

FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q

Operating profit Operating profit ratio

<Appendix>

Quarterly Sales and Operating Income

-2.5 -2.4 -3.3 -5.3 -10.0 -5.8 -4.7 -4.9 -3.6 -5.3 -7.1 -4.3 -3.0 -3.6 -3.8 -4.3

345.1 353.4 379.0 498.8 514.9 549.3 594.4 622.0 594.2 606.3 645.3 633.0

561.4 550.1 546.4 553.1 11.8 11.6

12.6

12.9 17.5

13.6

14.7 14.3 14.2 15.1 16.7 17.4

17.2 17.5 18.1 17.9

34.7 44.242.2

69.7 38.640.5

42.363.9

41.2 55.745.7 60.4

34.0 39.7 53.2 50.5

-100

0

100

200

300

400

500

600

700

800


Elimination

Construction, Mining & Utility Equipment

Retail Finance

Industrial Machinery & Others

¥/USD

¥/EUR

¥/RMB

16/1Q 16/2Q 16/3Q 16/4Q

109.8 102.9 106.9 114.7

124.3 114.6 116.7 121.4

16.9 15.4 15.7 16.7

389.2

Quarterly sales (Since FY2016)Billions of yen

Billions of yen

Exchange

rates 17/1Q 17/2Q 17/3Q 17/4Q

111.2 110.9 113.0 109.6

121.6 129.9 133.2 133.7

16.3 16.6 17.0 17.2

406.8 430.5

576.2 561.2597.7

646.8695.3

Quarterly operating income (Since FY2016)

18/1Q 18/2Q 18/3Q 18/4Q

108.2 111.2 113.5 109.4

130.1 129.6 129.6 124.7

17.1 16.4 16.4 16.2

646.0 671.9700.5 706.6

19/1Q 19/2Q 19/3Q 19/4Q

110.0 107.9 108.6 108.1

123.2 120.0 119.7 120.0

16.2 15.5 15.4 15.5

609.7 603.7 613.9 617.4

34

26.3 31.238.9

65.147.2

55.079.4

91.2 88.3 95.6 88.6 92.8

68.6 61.153.0 44.4

7.6% 8.8%10.3%

13.1%9.2% 10.0%

13.4% 14.7%14.9% 15.8%

13.7%14.7% 12.2%

11.1% 9.7%8.0%

50% 47% 51% 53% 55% 52% 54% 56% 56% 55% 54% 50% 52% 49% 50% 49%

(50)

0

50

100


Segment profit Segment profit ratio Percentage of sales in Strategic Markets

<Appendix>

Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit

23% 25% 22% 25% 18% 21% 19% 19% 19% 18% 21% 22% 20% 22% 21% 21%

15% 15% 15% 19%13% 12% 12% 17% 16% 11% 11% 11% 14% 12% 13% 13%

10% 8% 9%10%

12% 12% 16% 13% 12% 16% 16% 13% 14% 12% 14% 13%

52% 52% 53% 45% 57% 55% 53% 51% 53% 54% 52% 54% 53% 54% 52% 53%

0%

20%

40%

60%

80%

100%


Parts, etc Mining equipment Construction equipment(Stragegic Markets) Construction equipment(Traditional Markets)

345.1 353.4 379.0

498.8 515.0549.3

594.5 622.0 594.2 606.3 645.3 633.0 561.4 550.1 546.4 553.1

0

200

400

600


Quarterly Sales

Quarterly segment profit

Billions of yen

Billions of yen

¥/USD

¥/EUR

¥/RMB

Exchange rates

Breakdown of sales(%)

16/1Q 16/2Q 16/3Q 16/4Q

109.8 102.9 106.9 114.7

124.3 114.6 116.7 121.4

16.9 15.4 15.7 16.7

17/1Q 17/2Q 17/3Q 17/4Q

111.2 110.9 113.0 109.6

121.6 129.9 133.2 133.7

16.3 16.6 17.0 17.2

18/1Q 18/2Q 18/3Q 18/4Q

108.2 111.2 113.5 109.4

130.1 129.6 129.6 124.7

17.1 16.4 16.4 16.2

19/1Q 19/2Q 19/3Q 19/4Q

110.0 107.9 108.6 108.1

123.2 120.0 119.7 120.0

16.2 15.5 15.4 15.5

35

<Appendix>

Construction, Mining & Utility Equipment: Quarterly Sales by Region (To Outside Customers)

59.6 77.7 79.1 84.9 69.1

87.4 78.7 80.4 63.9 73.5 87.6 87.6 63.7

84.9 77.4 84.6

75.6 79.8 80.2

102.6 116.0

131.4 152.1 138.6 140.6

148.5 158.6 164.4

143.4

147.9 144.0 138.1 35.8

29.5 26.2

43.9 43.0

41.639.7 56.0

53.846.2

46.460.9

59.148.6

52.7 59.2

49.046.0 51.0

56.8 72.2

77.882.0 82.6

76.677.4

90.680.7

74.574.1 83.1 77.4

15.6 14.7 18.2

22.0 27.6

25.6 26.2 29.0

31.3 34.3

36.3 32.6

34.0 36.7 29.1 27.4

18.7 17.3

21.7

39.4 38.3

31.7 43.8

50.8 50.5 30.9

37.2 46.0

36.2 25.2 32.7 32.9

40.2 40.3

50.5

75.5 64.1

68.9

76.9 88.5

86.0 91.6

88.4 72.9

62.3 53.0 44.2 45.9

24.024.1

25.8

31.545.1

40.0

51.5

45.251.0 58.9

54.0 51.5

56.1 46.9 49.3 50.9

9.17.1

6.9

12.57.4

10.1

9.512.5

6.8 7.6

8.7 7.0

6.96.6 7.1 9.9

15.4 14.9

16.5

24.827.8

31.0

30.9

34.7

31.333.7

31.9 27.0

23.924.3 25.0 24.8

0

100

200

300

400

500

600


343.4 351.8

376.6

494.4

Billions of yen

Africa

Middle East

Oceania

Asia

China

CIS

Latin America

Europe

North America

Japan

¥/USD

¥/EUR

¥/RMB

16/1Q 16/2Q 16/3Q 16/4Q

109.8 102.9 106.9 114.7

124.3 114.6 116.7 121.4

16.9 15.4 15.7 16.7

Exchange

rates 17/1Q 17/2Q 17/3Q 17/4Q

111.2 110.9 113.0 109.6

121.6 129.9 133.2 133.7

16.3 16.6 17.0 17.2

545.8

510.9

591.7

618.7

18/1Q 18/2Q 18/3Q 18/4Q

108.2 111.2 113.5 109.4

130.1 129.6 129.6 124.7

17.1 16.4 16.4 16.2

592.1603.0

640.3 631.1

19/1Q 19/2Q 19/3Q 19/4Q

110.0 107.9 108.6 108.1

123.2 120.0 119.7 120.0

16.2 15.5 15.4 15.5

560.5548.7 545.1 551.5

36

1.82.3 2.5

-2.3

3.3 2.5 3.04.0 5.4

4.0 3.54.3

3.4 3.4 4.01.7

15.9% 20.1% 20.2%

-17.8%

18.9% 18.9% 20.6%28.0%

38.5%26.9% 21.1% 25.2%

19.7% 19.5% 22.6%9.9%

-10

-5

0

5

10

15


Segment profit Segment profit ratio

<Appendix>

Retail Finance: Quarterly Sales and Segment Profit

11.8 11.6 12.6 12.9

17.5

13.6 14.7 14.3 14.2 15.1

16.7 17.4 17.2 17.5 18.1 17.9

0

5

10

15

20


Quarterly sales


Billions of yen

Billions of yen

¥/USD

¥/EUR

¥/RMB

Exchange

rates

*1*1*1 *1

*1 Including a loss on allowance recorded for bad debt in China (FY16/1Q: -JPY1.0 billion, 2Q: -JPY0.5 billion, 3Q: -JPY0.2 billion, 4Q: -JPY4.9 billion)

16/1Q 16/2Q 16/3Q 16/4Q

109.8 102.9 106.9 114.7

124.3 114.6 116.7 121.4

16.9 15.4 15.7 16.7

17/1Q 17/2Q 17/3Q 17/4Q

111.2 110.9 113.0 109.6

121.6 129.9 133.2 133.7

16.3 16.6 17.0 17.2

18/1Q 18/2Q 18/3Q 18/4Q

108.2 111.2 113.5 109.4

130.1 129.6 129.6 124.7

17.1 16.4 16.4 16.2

19/1Q 19/2Q 19/3Q 19/4Q

110.0 107.9 108.6 108.1

123.2 120.0 119.7 120.0

16.2 15.5 15.4 15.5

37

1.7 2.3 2.3

6.0

2.3 2.4

4.35.3

3.04.4 5.1

5.9

0.5

3.4

5.54.0

4.9% 5.3% 5.7%

8.6%

6.2% 6.0%

10.2%8.1% 7.4% 8.0%

11.3%9.9%

1.6%

8.8%10.5%

8.0%

-5

0

5

10

15


Segment profit Segment profit ratio

<Appendix>

Industrial Machinery & Others: Quarterly Sales and Segment Profit

34.7 44.2 42.2

69.7

38.6 40.5 42.3

63.9

41.2

55.7

45.7

60.4

34.0 39.7

53.2 50.5

0

25

50

75

100


Quarterly sales


Billions of yen

Exchange

rates

Billions of yen

¥/USD

¥/EUR

¥/RMB

16/1Q 16/2Q 16/3Q 16/4Q

109.8 102.9 106.9 114.7

124.3 114.6 116.7 121.4

16.9 15.4 15.7 16.7

17/1Q 17/2Q 17/3Q 17/4Q

111.2 110.9 113.0 109.6

121.6 129.9 133.2 133.7

16.3 16.6 17.0 17.2

18/1Q 18/2Q 18/3Q 18/4Q

108.2 111.2 113.5 109.4

130.1 129.6 129.6 124.7

17.1 16.4 16.4 16.2

19/1Q 19/2Q 19/3Q 19/4Q

110.0 107.9 108.6 108.1

123.2 120.0 119.7 120.0

16.2 15.5 15.4 15.5

38

0%

50%

100%

150%

200%

0%

50%

100%

150%

200%

250%

0%

50%

100%

150%

200%Orders received/Sales IndexKomatsu America

(Mining eqpt)

Komatsu Germany

(Mining eqpt)

PC3000, PC4000

PC5500, PC7000

PC8000

Komatsu Ltd.

(Mining eqpt)

HD785, HD1500

PC2000,PC3000

PC4000

WA800 up

D375A up

GD825A up

730E, 830E, 860E

930E, 960E, 980E

Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)

<Appendix>

Book-to-Bill Ratio for Mining Equipment (6 Months)

39

Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)

0%

50%

100%

150%

200%

250%

Orders received/Sales IndexKMC

(Mining eqpt)

< Surface >

Rope Shovel

Blasthole Drills

Dragline ,etc

< Underground >

Continuous Miner

Sheerer

Load Haul Dump Machine

Jumbo Drills,etc

<Appendix>

Book-to-Bill Ratio for KMC Mining Equipment (6 Months)

40

Komatsu Industries

Komatsu NTC

<Appendix>

Book-to-Bill Ratio for Industrial Machinery (6 Months)

0%

50%

100%

150%

200%

Orders received/Sales Index Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)

41

In April 2020, we accelerated the

pace of achieving digital

transformation of construction

worksites by further advancing

SMARTCONSTRUCTION.

Providing Digital Transformation of SMARTCONSTRUCTION

Our presentation at CONEXPO in Las Vegas on March 10, 2020

We steadily began introduction

of four IoT devices and eight

applications.

We are going to launch

SMARTCONSTRUCTION in the

United States and Europe (the

United Kingdom, Germany,

France and Denmark).

42Launch of Retrofit Kit for SMARTCONSTRUCTION

In April we launched sales of “SMARTCONSTRUCTION Retrofit Kit” which will change

all hydraulic excavators on construction sites to perform like leading-edge ICT-intensive

models. Non-ICT-

intensive

models

ICT-intensive

models

3D construction

based on

3D design data

Not possible Possible PossiblePossible to perform high-precision 3D construction based on 3D

design data

3D controls Not possiblePossible

Semi-automatic

Not possible

Limited to

guidance

Staking

Support workersNot possible No need No need

No need for staking and support workers, thereby improving safety

and productivity

3D construction

records

Not possible

to obtain

High precision

Possible to

obtain

High precision

Possible to

obtain

Possible to obtain construction records in the digital format and on a

real-time basis

Retrofit kit Becoming possible with the retrofit kit

43

PC

30

E-5

Eco-friendly battery and electric motor

★No emission gas and waste heat, thereby improving work environment

★Reduced machine and ambient noise

★Zero CO2 emissions on construction sites

ECOLOGY & SAFETY

MAINTENANCE

No maintenance needed for engine-related devices

★Fewer items for daily inspection and periodic maintenance

Daily inspection: 9⇒5 items. Periodic inspection: 16⇒ 11 items

CHARGING & KOMTRAX

Optimal charging control and prevention of early deterioration of batteries

★Equipped with standard charger. Capable for rapid charging.

★Able to monitor daily conditions of the battery via KOMTRAX

“Gentleness” of cutting-edge technologies

Introducing Komatsu Zero-emission mini excavator

Electric mini excavator:

“Gentle” to operators, local residents, natural environment and all other things

Output (net): 17.4kW

Standard bucket capacity: 0.09m3

Launching PC30E-5 Electric Mini Excavator in Japan

44

Hydraulic Excavators Equipped with the Human Detection & Collision Mitigation System

as a Standard Feature for the First Time in Industry

＜Monitor＞

When starting to travel or even while traveling at low speed, the

excavator stops low-speed traveling as soon as person(s) is

detected inside the stop-controlled area.

When starting to swing from the halting position, the

excavator stops swinging as soon as it detects

person(s) inside the stop-controlled area.

Equipped with the Human

Detection & Collision

Mitigation System

45

Cautionary StatementThe announcement set forth herein contains forward-looking statements which reflect management's current views 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" 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.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 cost 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; and, the impact of regulatory changes and accounting principles and practices.

Business Coordination Department, KOMATSU LTD.

TEL: +81-3-5561-2687 FAX: +81-3-3582-8332 http://home.komatsu/en/

Komatsu was selected as a component of

the Dow Jones Sustainability World Index

(DJSI World) in 2019, an internationally

leading SRI index.

In 2019, Komatsu has been identified as

Climate "A" List company by CDP, the non-

profit global environmental disclosure platform.

ESG Efforts: Evaluations by External Organizations

Business Results for FY2019 · 2020-05-18 · 1 May 18, 2020 Hiroyuki Ogawa Takeshi Horikoshi...

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