business results of fy 2020 for the first 3-month period (april … · 2020. 7. 15. · highlights...

1

Jul 30, 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 of FY 2020

for the First 3-Month Period

(April-June, 2020)

【Telephone conference】

Komatsu Ltd. Participants

2Contents

Highlights, Segment Sales and Profits for the First 3-Month Period of FY2020

Construction, Mining & Utility Equipment: Results for the First 3-Month Period of FY2020

Retail Finance: Highlights for the First 3-Month Period of FY2020

Industrial Machinery & Others: Results for the First 3-Month Period of FY2020

Consolidated Balance Sheets

Ⅰ. Coronavirus (COVID-19) Effects on Komatsu Group’s Business <PP3-7>

Ⅲ. Outlook of FY2020 Business Results <PP16-32>

PP4-7:

Appendix <PP33-41>

PP34-38:

PP39-41:

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

Quarterly Results

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

PP9-10:

PP11-12:

P13:

P14:

P15:

Ⅱ. Business Results for the First 3-Month Period (April-June,2020) of FY2020 <PP8-15>

Projection for FY2020 ending March 31, 2021: Outline and Segment Sales and Profit

Construction, Mining & Utility Equipment: Projection of Segment Sales and Profit .

Retail Finance: Highlights for FY2020

Industrial Machinery & Others: Projection of Segment Sales and Profit

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

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

PP17-18:

PP19-20:

P21:

P22:

PP23-28:

PP29-30:

P31:

P32:

3

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

Business

4Coronavirus (COVID-19) Effects on Komatsu Group’s Business

1. Effects on operations

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

1) Production

Base Conditions

Komatsu India Pvt. Ltd. Halting production (March 24 -- July 31). Extending lockdown

2) Sales and service

Items Updates

Operation of

customers’ machinesThe rate of machine operations is steadily returning to last year’s level.

SalesA growing number of sales sites are shifting from teleworking to

regular workstyle or workstyle with conditions.

ServiceRegular workstyle is increasing at parts warehouses as well as service

and workshop sites.

5

1) The first 3-month period

2. Effects on business results


2) Projection of full-year results for FY2020 (Outlook of Demand)

Construction,

mining & utility

equipment

Sales：Declined by 25% year-on-year. Declined in all regions, except for China.

Industrial

machinery &

others

Automobile manufacturing: Declined year-on-year, affected by delays or reassessment of

their capital investment.

Semiconductors: Increased year-on-year.

Construction,

mining & utility

equipment Traditional Markets: Anticipating recovery from 3Q.

Strategic Markets: Anticipating recovery from 4Q.

China: Expanded sales for 1Q due to delayed Chinese New Year sales season to February 〜 March. Anticipating steady sales for 2Q and onward.

Industrial

machinery &

others

Automobile manufacturing: Challenging conditions will continue for the full year, due to

delays or curtailment of their capital investment.

Semiconductors: Demand should remain steady.

Vs. FY2019 FY20 Initial projection

(Before COVID-19)Projection (Current)

Demand for 7 Major Products About flat from FY2019 (20)%~(10)%

Demand for Mining Equipment included (20)%~(10)% (20)%~(10)%

6

10069

39 51 65 72 82 81 76 75 82 89 91

100

91

6499

129 122 108 98 81 83105 105 89

100

93

157

234149 88 104 65

42 65116 129

102

0

100,000

200,000

300,000

400,000

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

Traditional Markets Strategic Markets(excluding China) China

100

80

64

(Units)

10092

Current Projection

＜Demand for 7 Major Products＞

92 97 90 9384

73 76

94 (20%)~(10)%

74～83

2) Projection of full-year results for FY2020 (Outlook of Demand)

：FY07=100Index


Source: Estimated by Komatsu

-40%

0%

40%

FY19/1Q 2Q 3Q 4Q

FY20/1Q 2Q 3Q 4Q

FY21/1Q 2Q 3Q 4Q

All regions(excluding China) China

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009 2010

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018 2019 2020

＜KOMTRAX in Traditional Markets: Average operating hours per month＞

＜Y-o-Y growth rate of Demand for 7 Major Products（FY2019〜FY2021＞

-40%

0%

40%

FY19/1Q 2Q 3Q 4Q

FY20/1Q 2Q 3Q 4Q

FY21/1Q 2Q 3Q 4Q

Traditional Markets Strategic Markets(excluding China)

Note: Demand in FY21 is based on the assumption that the current rate of growth will continue.

Drop of machine operations

since Oct, 2008

Recovery of machine operations since Aug, 2010

Drop of machine operations

since Jan, 2020

Recovery of machine operations

since Jun, 2020

“Lehman Shock” COVID-19 pandemic

About 2 yrs About 6 mos

(Hours)

Source: Demand for 7 Major Products Estimated by Komatsu

(Hours)

7Coronavirus (COVID-19) Effects on Komatsu Group’s Business

3. Efforts with/after Coronavirus

Items Efforts

Expansion of business

opportunities

Avoidance of

3Cs

Construction equipment: Automation, unmanned operation, and

remote controlling

Worksites: Digitalization of worksite operations

Promotion of

the mid-term

management

plan

Construction equipment: Expansion of DX

SMARTCONSTRUCTION

Mining equipment: Launch of remote controlled loaders and

development of mining platforms

Workstyle reforms Promotion of digital marketing

Expansion of application to teleworking

Proactive use of ICT tools, such as on-line meetings

Consideration of distributing wearable device to employees for their health

management

Reassessment of

dialogues with

stakeholders

On-line IR activities

Consideration of virtual annual shareholders’ meeting

Reassessment of the ways to hold internal meetings (small groups, remote)

8

Ⅱ. Business Results for the First 3-Month Period of FY2020

(April-June,2020)

9

Apr.-Jun.,2019

(A)

Apr.-Jun.,2020

(B)Changes (B-A)

increase

(decrease)

Change

%

Net sales 609.7 458.7 (151.0) (24.8)%

Segment profit 72.7 26.6 (46.1) (63.4)%

Other operating income (expenses) 2.0 0.2 (1.7) -

Operating income 74.7 26.9 (47.8) (64.0)%

Profit ratio 12.3% 5.9% (6.4)pts. -

Other income (expenses) (7.8) 1.5 +9.4 -

Income before income taxes 66.9 28.4 (38.4) (57.4)%

Net income attributable to

Komatsu Ltd47.4 16.2 (31.2) (65.8)%

Billions of yen

¥107.5/USD¥118.6/EUR¥15.1/RMB

Highlights for the First 3-Month Period (April-June,2020) of FY2020

¥110.0/USD¥123.2/EUR¥16.2/RMB

・ Consolidated net sales decreased by 24.8% from the corresponding period a year ago, to JPY458.7 billion.

・ Operating income declined by 64.0% to JPY26.9 billion. Operating income ratio was 5.9%, down 6.4 points.

・ Net income attributable to Komatsu Ltd. declined by 65.8% to JPY16.2 billion.

10

■ 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 foreign exchange rates.

・Construction, Mining & Utility Equipment: Sales decreased by 24.2% from the corresponding period a year ago, to JPY425.8 billion. Segment profit declined by 66.2%

to JPY23.2 billion. Segment profit ratio worsened to 5.4%, down 6.8 points.・Retail Finance: Revenues decreased by 7.9% from the corresponding period a year ago, to JPY15.9 billion. Segment profit declined by 44.3% to JPY1.8 billion.

・Industrial Machinery & Others: Sales decreased by 26.5% from the corresponding period a year ago, to JPY25.0 billion. Segment profit improved by 208.1% to JPY1.7

billion.

Apr.-Jun.,2019

(A)

Apr.-Jun.,2020

(B)

Changes (B-A)

increase

(decrease)

Change

%

Net sales 609.7 458.7 (151.0) (24.8)%

Construction, mining & utility equipment

Retail finance

Industrial machinery & others

561.4[560.5]

17.2[15.4]

34.0[33.7]

425.8[420.0]

15.9[13.9]

25.0[24.7]

(135.6)[(140.5)]

(1.3)[(1.5)]

(8.9)[(8.9)]

(24.2)%[(25.1)%]

(7.9)%[(9.8)%](26.5)%

[(26.5)%]

Elimination (3.0) (8.0) (5.0) -

Segment profit 72.7 26.6 (46.1) (63.4)%

Construction, mining & utility equipmentRetail financeIndustrial machinery & others

68.63.40.5

23.21.81.7

(45.4)(1.5)+1.1

(66.2)%(44.3)%

+208.1%

Corporate & elimination 0.0 (0.1) (0.2) -

% : Profit ratio

Billions of yen

[ ]: Sales after elimination of inter-segment transactions

■ Retail Finance:Revenues declined from the corresponding period a year ago, due mainly to reduced new contracts and adverse effects of foreign exchange rates. Segment profit also decreased, mainly reflecting adverse effects of extension of payments and revaluation of vehicles after lease use.

■ Industrial Machinery & OthersSales declined from the corresponding period a year ago, mainly affected by reduced sales of presses and machine tools to the automobile manufacturing industry. Segment profit increased, supported by steady sales of Excimer laser-related products on the semiconductor market.

Review of three business segments

5.8%

5.4%

11.9%

6.8%

(6.1)pts.

(6.8)pts.

(7.8)pts.

+5.2pts.

Segment Sales and Profits for the First 3-Month Period (April-June,2020) of FY2020

11.9%

12.2%

19.7%

1.6%

11

・Sales to outside customers decreased by 25.1% from the corresponding period a year ago, to JPY420.0 billion.

・Sales declined in all regions, except for China. Sales dropped drastically in North America, Asia and Europe.

・The proportion of Traditional Markets decreased to 47%.

Traditional Markets Strategic Markets

Plus

Minus

[(17.4)%]

[(62.6)%] [(9.9)%][(39.1)%]

[(31.2)%]

[+19.1%]

[(28.5)%]

[(30.9)%]

[(3.7)%]

[(39.5)%]

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

420.0

Apr.-Jun.,FY2020

Vs. Apr.-Jun.,2019

Billions of

yenJapan

North

AmericaEurope

Latin

AmericaCIS China Asia Oceania

Middle

EastAfrica Total

Apr.Jun.,2019

(a)63.7 143.4 59.1 74.5 34.0 36.2 62.3 56.1 6.9 23.9 560.5

Apr.Jun.,2020

(b)61.4 99.0 35.8 61.5 24.3 43.1 23.3 50.5 4.2 16.4 420.0

Change

(b-a)(2.3) (44.3) (23.3) (12.9) (9.7) +6.9 (39.0) (5.5) (2.7) (7.4) (140.5)

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

Apr.-Jun., 2019 Apr.-Jun., 2020

Billions of yen

9%

1%

11%

13%

StrategicMarkets

52%

Traditional

Markets

48%

11%

6%

10%

11%

26%

6%

4%

4%1%

12%

10%

6%

6%

15%

9%

24%

15%

StrategicMarkets

53%

Traditional

Markets

47%

420.0

Effects of Foreign

exchange rate: (18.9) billions of yen

※

560.5

Apr.-Jun.,FY2019

560.5

Construction, Mining & Utility Equipment :

Sales by Region (To Outside Customers) for the First 3-Month Period (April-June,2020) of FY2020

(140.5)[(25.1)%]

12

・Sales decreased by JPY135.6 billion from the corresponding period a year ago, as adversely affected by reduced sales volume and

foreign exchange rates. ・Segment profit declined by JPY45.4 billion, mainly due to reduced sales volume and foreign exchange rates.

・Segment profit ratio was 5.4%, down 6.8 points.

68.6

23.2

0

30

60

Apr.-Jun.,2019

Apr.-Jun.,2020

561.4

425.8

300

400

500

600

Apr.-Jun.,2019

Apr.-Jun.,2020

(135.6) billion yen

5.4%12.2%

(45.4) billion yen

Sales

Apr.-Jun.,2019 vs. Apr.-Jun.,2020

Segment profit


Billions

of yen

Billions

of yen

Positive factor

Negative factorPositive factor

Negative factor

Volume

(118.2)

Selling

price

+1.3

Foreign

exchange rate

(19.5)

Volume,

product mix, etc.

(51.6)

Fixed costs

+7.6

Selling

price

+1.3

Foreign

exchange rate

(2.5)

Segment profit ratio

New additions to

consolidation

+0.8

New additions

to

consolidation

(0.1)


Causes of Difference in Sales and Segment Profit for the First 3-Month Period (April-June,2020) of FY2020

¥110.0/USD¥123.2/EUR¥16.2/RMB

¥107.5/USD¥118.6/EUR¥15.1/RMB

13

Japan JapanEurope EuropeChina China

Oceania OceaniaOthers Others

North America North

America

0

20

40

60

80

100

120

140

160

180

200

17.215.9

3.41.8

0

5

10

15

20

Sales Segment profit

Billions of yen

Billions of yen 2020/3E 2020/6E Changes

Interest-bearing debt 648.0 657.9 +9.9

Interest-bearing debt, net 642.4 655.6 +13.2

Net D/E ratio 3.80 3.86 +0.06pts.

Revenues


Assets

Mar.31, 2020 vs. June.30, 2020

Retail Finance: Assets and Revenues

for the First 3-Month Period (April-June,2020) of FY2020

New Contracts


Billions of yen

168.1

Apr.-Jun., 2019 Apr.-Jun., 2020 Apr.-Jun., 2019 Apr.-Jun., 2020

・Assets increased from year-on-year, supported mainly by increases in China, while assets declined in North America.

・New contracts declined year-on-year, due to reduced sales under the coronavirus pandemic.

・Revenues decreased year-on-year, especially affected by reduced new contracts and foreign exchange rates.

・Segment profit also decreased, mainly reflecting adverse effects of extension of payments and revaluation of vehicles after lease use.



North America

North America

0

100

200

300

400

500

600

700

800

900

Billions of yen

Mar.31, 2020 Jun.30, 2020¥108.8/USD

¥119.6/EUR

¥15.3/RMB

855.1

¥107.7/USD

¥121.1/EUR

¥15.2/RMB

841.0

¥110.0/USD

¥123.2/EUR

¥16.2/RMB

125.3

¥107.5/USD

¥118.6/EUR

¥15.1/RMB

¥110.0/USD

¥123.2/EUR

¥16.2/RMB

¥107.5/USD

¥118.6/EUR

¥15.1/RMB

14

0.5

1.7

1.6%

6.8%

-10

-5

0

5

10

0

2

4

6

Apr.-Jun.,2019 Apr.-Jun.,2020

（%）Billions of yen :Segment profit ratio

・Sales declined by 26.5% year-on-year, to JPY25.0 billion, affected by reduced sales of presses and machine tools to the automobile

manufacturing industry. ・Segment profit improved by JPY1.1 billion year-on-year, to JPY1.7 billion.

・Segment profit ratio was 6.8%.

Industrial Machinery & Others: Sales and Segment Profit

for the First 3-Month Period (April-June,2020) of FY2020

Apr.-Jun., 2019 Apr.-Jun., 2020

Changes

Increase(Decrease)

Change%

Komatsu Industries Corp. 8.5 6.1 (2.3) (27.8)%

Komatsu NTC Ltd. 11.6 4.0 (7.6) (65.4)%

Gigaphoton Inc. 8.2 9.6 +1.4 +17.0%

Others 5.6 5.2 (0.4) (7.2)%

Total 34.0 25.0 (8.9) (26.5)%

Breakdown of sales

Billions of yen

34.025.0

0

10

20

30

40

50

Apr.-Jun., 2019 Apr.-Jun., 2020

Billions of yen

SalesApr.-Jun.,2019 vs. Apr.-Jun.,2020

Segment profitApr.-Jun.,2019 vs. Apr.-Jun.,2020

15Consolidated Balance Sheets

・Total assets grew by JPY7.1 billion from the previous fiscal year-end to JPY3,660.8 billion. Accounts receivable declined, while inventories

increased.・Komatsu Ltd. shareholders’ equity ratio was 48.2%, down 0.3 points.

Mar. 31, 2020 Jun. 30, 2020Increase

(Decrease)

Cash & deposits (incl. time deposits) [a] 249.6 257.2 +7.5

Accounts receivable (incl. long-term trade receivables) 1,165.3 1,100.4 (64.8)

Inventories 805.3 866.7 +61.4

Tangible fixed assets 757.6 755.2 (2.3)

Other assets 675.7 681.1 +5.4

Total assets 3,653.6 3,660.8 +7.1

Accounts payable 220.1 204.2 (15.8)

Interest-bearing debt [b] 1,012.3 1,047.8 +35.4

Other liabilities 564.9 555.5 (9.3)

Total liabilities 1,797.4 1,807.7 +10.2

[Shareholders’ equity ratio] (48.5%) (48.2%) （(0.3).pts.）

Komatsu Ltd. shareholders’ equity 1,771.6 1,763.5 (8.0)

Non-controlling interests 84.6 89.6 +5.0

Liabilities & Equity 3,653.6 3,660.8 +7.1

Interest-bearing debt, net [b-a] 762.7 790.6 +27.9

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

¥107.7/USD

¥121.1/EUR

¥15.2/RMB：Net D/E ratio

0.43 0.45

0.08 0.08

Billions of yen¥108.8/USD

¥119.6/EUR

¥15.3/RMB

16

Ⅲ. Outlook of FY2020 Business Results

17Outline of Projection for FY2020

・Consolidated net sales will decrease by 15.4% from FY2019, to JPY2,068.0 billion.

・ Operating income will decline by 54.1% to JPY115.0 billion. Operating income ratio will amount to 5.6%, down 4.7 points.

・ Net income will decline by 56.4% to JPY67.0 billion.

Changes (B-A)

Increase(Decrease)

Change%

Net sales 2,444.8 2,068.0 (376.8) (15.4)%

Segment profit 255.0 121.0 (134.0) (52.6)%

Other operating income (expenses) (4.3) (6.0) (1.6) -

Operating income 250.7 115.0 (135.7) (54.1)%

Profit ratio 10.3% 5.6% (4.7)pts. -

Other income (expenses) (27.5) (7.0) +20.5 -

Income before income taxes 223.1 108.0 (115.1) (51.6)%

Net income attributable to Komatsu Ltd 153.8 67.0 (86.8) (56.4)%

FY2019 Results

(A)

¥105.6/USD¥116.7/EUR¥15.0/RMB

ROE 8.6% 3.8% (4.8)pts.

Cash dividends per share 94Yen 36Yen (58)Yen

Consolidated payout ratio 57.7% 50.8%

Billions of yen

FY2020 Projection

(B)

¥108.7/USD¥120.8/EUR¥15.6/RMB

18

■ Construction, Mining & Utility Equipment:Sales will decrease from FY2019, as adversely affected by reduced sales volume and foreign exchange rates. Segment profit will decline, mainly due to reduced sales volume and a change in the geographic composition of sales.

・Construction, mining & utility equipment: Sales will decrease by 16.6% from FY2019, to JPY1,845.0 billion. Segment profit will decline by 56.9%

to JPY98.0 billion. Segment profit ratio will amount to 5.3%, down 5.0 points.・Retail finance: Revenues will decrease by 4.1% to JPY68.0 billion. Segment profit will decline by 21.1% to JPY10.0 billion.

・Industrial machinery & others: Sales will increase by 1.9% to JPY181.0 billion. Segment profit will advance by 2.2% to JPY14.0 billion.

Projection for Segment Sales and Profit of FY2020

FY2019

Results

(A)

FY2020

Projection

(B)

Changes (B-A)

increase

(decrease)

Change

%

Net sales 2,444.8 2,068.0 (376.8) (15.4)%

Construction, mining & utility equipment

Retail finance

Industrial machinery & others

2.211.2[2,205.9]

70.9[62.9] 177.5

[175.9]

1,845.0[1,829.0]

68.0[59.0] 181.0

[180.0]

(366.2)[(376.9)]

(2.9)[(3.9)]

+3.4[+4.0]

(16.6)%[(17.1)%]

(4.1)%[(6.3)%]

+1.9%[+2.2%]

Elimination (14.8) (26.0) (11.1) -

Segment profit 255.0 121.0 (134.0) (52.6)%

Construction, mining & utility equipmentRetail financeIndustrial machinery & others

227.312.613.7

98.010.014.0

(129.3)(2.6)+0.2

(56.9)%(21.1)%

+2.2%

Corporate & elimination 1.3 (1.0) (2.3) -

% : Profit ratio

Billions of yen

[ ]: Sales after elimination of inter-segment transactions

10.4%

10.3%

17.9%

7.7%

■ Retail Finance:Revenues will decrease from FY2019, as mainly affected by reduced new contracts and adverse effects of foreign exchange rates. Segment profit will also decrease mainly due to adverse effects of extension of payments and revaluation of vehicles after lease use.

■ Industrial Machinery & OthersBoth sales and segment profit will increase from FY2019, supported by steady sales of Excimer laser-related products on the semiconductor market.

Review of three business segments

(4.5)pts.

(5.0)pts.

(3.2)pts.

+0.0pts.

5.9%

5.3%

14.7%

7.7%

19

※

・Sales to outside customers will decline by 17.1% from FY2019, to JPY1,829.0 billion.

・Sales will decline in all regions, except for China. We anticipate a sharp decline in North America, Asia, Europe and Latin America.

・The proportion of Traditional Markets will decline to 49%.

Traditional Markets Strategic Markets

Plus

Minus

(376.9)[(17.1)%]

[(15.0)%]

[(35.7)%] [(1.6)%] [(9.4)%] [(18.9)%]

[+6.2%]

[(21.0)%]

[(24.5)%]

[(8.1)%]

[(21.8)%]

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

Vs. FY2019

Billions of

yenJapan

North

AmericaEurope

Latin

AmericaCIS China Asia Oceania

Middle

EastAfrica Total

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

FY2020(b) 285.7 433.3 171.8 262.8 100.7 134.9 132.3 200.1 27.8 79.7 1,829.0

Change

(b-a)(25.2) (140.3) (48.0) (46.5) (26.8) +7.8 (73.5) (3.3) (2.9) (18.6) (376.9)

JapanJapan

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

500

1,000

1,500

2,000

2,500

FY2019 FY2020 Projection

Billions of yen

9%

1%

9%

14%

StrategicMarkets

50%

Traditional

Markets

50%

1,829.0

14%

6%

9%

10%

26%

6%

4%

4%2%

11%

7%6%

7%

14%

9%

24%

16%

StrategicMarkets

51%

Traditional

Markets

49%

2,205.9Effects of Foreign

exchange rate: (73.4) billions of yen

1,829.0

FY2020

Projection

※


Projection for Sales by Region (To Outside Customers) for FY2020

2,205.9

FY2019

20

・Sales will decline by JPY366.2 billion from FY2019, as adversely affected by reduced volume of sales and foreign exchange rates.

・Segment profit will decline by JPY129.3 billion from FY2019, as adversely affected by reduced volume of sales and foreign exchange rates.

・Segment profit ratio will decrease by 5.0 points to 5.3%.

227.3

98.0

0

100

200

300

FY19 FY20Projection

2,211.2

1,845.0

1,700

1,800

1,900

2,000

2,100

2,200

2,300

FY19 FY20Projection

(366.2) billion yen

5.3%10.3%

(129.3) billion yen

Sales

FY2019 vs. FY2020 Projection

Segment profit

FY2019 vs. FY2020 Projection

Billions

of yen

Billions

of yen

Positive factor

Negative factorPositive factor

Negative factor

Volume

(303.4)

Selling

price

+10.2

Foreign

exchange rate

(74.0)Volume,

product mix, etc.

(138.8)

Fixed costs

+12.4

Selling

price

+10.2

Foreign

exchange rate

(13.0)

Segment profit ratio

New additions to

consolidation

+1.1

New

additions to

consolidation

(0.1)


Causes of Difference in Projected Sales & Segment Profit for FY2020

¥105.6/USD¥116.7/EUR¥15.0/RMB

¥108.7/USD¥120.8/EUR¥15.6/RMB

21



North America

North America

0

100

200

300

400

500

600

700

800

70.9 68.0

12.6 10.0

0

20

40

60

80

100Sales Segment profit



North America

North America

0

100

200

300

400

500

600

700

800

900Billions of yen Billions of yen

Mar.31, 2020

Billions of yen 2020/3E 2021/3E Changes

Interest-bearing debt 648.0 641.4 (6.6)

Interest-bearing debt, net 642.4 638.9 (3.5)

Net D/E ratio 3.80 3.91 +0.11pts.

Revenues

FY2019 vs FY2020 Projection

Assets

Mar.31, 2020 vs. Mar.31, 2021 Projection

Retail Finance: Highlights for FY2020

New Contracts

FY2019 vs FY2020 Projection

Billions of yen

612.5

479.3

FY2019 Mar.31, 2021 Projection FY2020 Projection FY2019 FY2020 Projection

・We anticipate that assets will decrease from FY2019 due to reduced new contracts.

・New contracts will decline from FY2019 due to declined sales affected by the coronavirus pandemic.

・Revenues will decrease from FY2019, affected by reduced new contracts.

・Segment profit will decrease mainly due to adverse effects of extension of payments and revaluation of vehicles after lease use.

841.0

¥108.7/USD

¥120.8/EUR

¥15.6/RMB

FY2019FY2020

ProjectionChanges

ROA 1.5% 1.2% (0.3)pts.

¥108.7/USD

¥120.8/EUR

¥15.6/RMB

¥108.8/USD

¥119.6/EUR

¥15.3/RMB

819.3

¥105.0/USD

¥116.0/EUR

¥15.0/RMB

¥105.6/USD

¥116.7/EUR

¥15.0/RMB

¥105.6/USD

¥116.7/EUR

¥15.0/RMB

22

13.7 14.0

7.7% 7.7%

-10

-5

0

5

10

0

10

20

30


（%）

Billions of yen

:Segment profit ratio

・We project that sales will increase by 1.9% from FY2019, to JPY181.0 billion, and segment profit will advance by JPY0.2 billion to JPY14.0 billion.

Industrial Machinery & Others: Highlights for FY2020

FY2019FY2020

Projection

Changes

Increase(Decrease)

Change%

Komatsu Industries Corp. 55.0 57.2 +2.2 +4.0%

Komatsu NTC Ltd. 48.3 36.4 (11.9) (24.7)%

Gigaphoton Inc. 35.0 39.8 +4.7 +13.6%

Others 39.0 47.4 +8.3 +21.4%

Total 177.5 181.0 +3.4 +1.9%

Breakdown of sales

Billions of yen

177.5 181.0

0

50

100

150

200


Billions of yen

SalesFY2019 vs. FY2020 Projection

Segment profitFY2019 vs. FY2020 Projection

23

・In 1Q FY2020, global demand declined by 17% from the corresponding period a year ago.

・In FY2020, we project demand will decline between 10% and 20% from FY2019 as a whole.

+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


Japan N.America

Europe China

Others Y-o-Y growth rate

FY19: (8)%

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

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

-8%

-0%+4%

+23% +26%+26% +26%+18%

+18%+8% +3%

-2%-7%

-3%-7%

-16% -17%

-200%

-170%

-140%

-110%

-80%

-50%

-20%

10%

40%

70%

0

30,000

60,000

90,000

120,000

150,000

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

20/1Q

Japan N.America

Europe China

Others Y-o-Y growth rate

Quarterly demand for 7 major products

Units Growth rate

FY20/1Q: (17)%

100

80

64

9297

9093

84

72

Annual demand for 7 major products

UnitsGrowth rate

Source: Estimated by Komatsu

：FY07=100Index

76

94100

92

Current

Projection

24

-1%-1%-8%

7%

-5%-9%

-1%

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

3%

-8%-3%-6%

-11%-1%-2%

2%

-4%

3%

-80%

-60%

-40%

-20%

0%

20%

40%

0

50

100

150 Operating hours (left scale)

Y-o-Y (right scale)

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.

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

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

20/1Q

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

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

20/1Q

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

：FY07/1Q=100Index


Y-o-Ygrowth rate Units

Quarterly demand for hydraulic excavators (Rental & Regular uses)

Y-o-Y

growth rate

Units

(3)%

(2)%

Rental

Regular

57 64 757872

FY19: +5%

FY20 (Current Projection):

(15)%~(10)%

1Q: (4)%

・In 1Q FY2020, demand declined by 4% from the corresponding period a year ago.

・In FY2020, we project demand will decline between 10% and 15% from FY2019.

Exports of used equipment

*1

KOMTRAX in Japan: Average operating hours per monthHours

Current

Projection

100000

80000

60000

40000

20000

0

20000

40000

60000

80000

0102030405060708090

100110120


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

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

20/1Q

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

FY

19Q1

FY

20Q1

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

78 85

106 112

79

Index ：FY07/1Q=100

(54)%

Rental

(46)%

Mining & energy

(15)%

Road

Construction

Others

FY19: +3%

FY20 (Current projection): (25)%~(20)%

・In 1Q FY2020, demand decreased by 29% from the corresponding period a year ago.


1Q:(29)%

2%

-1%-9%

0%

-6%-7%

3%

4%1%

0%

-5%-8%

1%

-6%

6%

-6%-5%

0%

-8% -8%-13%-14% -17%

-1%

-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

Current

Projection

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

FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19

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

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

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

20/1Q

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

0

2,000

4,000

6,000

8,000

FY19(Apr.-May.)

FY20(Apr.-May.)


6976 81 85

54

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

FY19: (2)%


・In 1Q FY2020, demand decreased by 36% from the corresponding period a year ago.


1Q:(36)%

7%0%

-3%

4%

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

2%

-3%-4%-13%

0%

-11%-2%-6%-10%-1%

1% -2%-9%

-17%-13%

4%

-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

Current

Projection

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

16/1Q

2Q 3Q 4Q FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

20/1Q

Demand (units) Y-o-Y growth rate

38

89

135

106

155

0

5,000

10,000

15,000

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

FY2016

FY2017

FY2018

FY2019

FY2020

KOMTRAX in China : Average operating hours per month

-6%

0%

-4%

9%-14%

-14%-12%

0% 6%

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

-14%

2%

-1%

-43%

-32%

-17%

4% 3% 2%

-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＞

： Jan. 28, 2017

： Feb. 16. 2018

： Feb. 5. 2019

： Jan. 25, 2020

： Feb. 12, 2021

(month)


FY19: (21)%

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

・In 1Q FY2020, demand increased by 45% from the corresponding period a year ago.

・We project demand will increase by 10% to 20% in FY2020 from FY2019.

【Ref】Total demand including machines made by local makers

(Hydraulic excavators incl. mini shovels)

FY19: +2%, 1Q of FY20: +69%,

FY20 (Current Projection):+30%~+40%

1Q:+45%

Current

Projection

28

Indonesia: Demand for construction & mining equipment by industrial sector

Units

0

1,000

2,000

3,000

4,000

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

20/1Q

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 products

Units

Y-o-Y

growth rate

-6,000

-3,000

0

3,000

6,000

9,000

-80%

-40%

0%

40%

80%

120%

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

20/1Q

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

：

144178

13312681


FY19 :(24)%


・In 1Q FY2020, demand declined by 39% from the corresponding period a year ago. ・In FY2020, we project demand will decline between 30% and 35% from FY2019.

1Q:(39)%

1Q:(68)%13%

3%7%4% 2%

-2%-2%-1%

-1%-8%-6%

2% 1% -3%

-3% -5%

-3%-5%-5%-1%-4%-2%

-20%

22%

-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

Current

Projection

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

96%

52%

49%

71%

41%54%

20%10%

-6%-19%

-29%

-15%

-29%

-300%

-250%

-200%

-150%

-100%

-50%

0%

50%

100%

0

500

1,000

1,500

2,000

FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

20/1Q

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%

65%

29%

-17%

-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 1Q FY2020, global demand for mining equipment declined by 29% from the corresponding period a year ago. ・In FY2020, we project demand will decline between 10% and 20% from FY2019.

1Q:(29)%FY19 :(17)%


Current

Projection

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)

67.4 72.0 64.5 68.8 56.0

100.8 98.193.4

98.4

72.0

76.7 67.077.6 70.0

41.6

211.1222.3

252.2244.5

241.5

272.8277.9

261.2

244.9237.0 235.4

237.2

169.6

+14%

+23% +10%+7% +1%

-13% -15% -9%

-31%

-450%

-350%

-250%

-150%

-50%

50%

150%

0

50

100

150

200

250

300

350

400

450

FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

20/1Q

FY

19/1Q

2Q 3Q 4Q FY

20/1Q

N. America Latin America Europe & CIS

Japan & China Asia Oceania

Middle East & Africa Y-o-Y change

749.1

256.1 273.3 272.7

226.4

374.1 421.8

390.6

317.7

300.0

358.3 291.3

205.0

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%-22%

-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 FY20 FY17 FY18 FY19 FY20

N. America Latin America

Europe &CIS Japan & China

Asia Oceania

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

・For 1Q FY2020, sales decreased by 31% from the corresponding period a year ago, to JPY169.6 billion.

・FY2020 sales will decrease by 22% from FY2019, to JPY749.1 billion.

Current

Projection

Current

Projection

31

138.5 158.0

171.5 187.4 196.1

214.9 202.4

374.1 421.7

390.6 317.7 141.5

159.0 148.0 176.3

191.1 182.6 176.5

202.7

205.8

196.8

180.8

280.0

317.0319.5

363.7387.2

397.5378.8

576.8

627.5

587.5

498.5

+18% +13%

+1%

+14%+6%

+3% -5%

+52%

+9%

-6%

-15%

-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 FY20

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

85.6 94.7 95.5 98.3 102.7 107.6 104.2 107.2100.8 98.1 93.4

98.4

72.0

49.4 50.950.6

51.8

50.8 51.0 50.9 53.151.7

51.148.0 46.1

42.8

135.0 145.7 146.1 150.0 153.5

158.6 155.1 160.3

152.4 149.1 141.4 144.6

114.8

+14%+9%

+6% +7%

-1%-6% -9% -10%

-25%

-1.8

-1.6

-1.4

-1.2

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0

50

100

150

200

250

300

FY

17/1Q

2Q 3Q 4Q FY

18/1Q

2Q 3Q 4Q FY

19/1Q

2Q 3Q 4Q FY

20/1Q

Construction equipment

Mining equipment

Y-o-Y

Y-o-Y change

(%)

・For 1Q FY2020, sales of parts decreased by 25% from the corresponding period a year ago, to JPY114.8 billion.

・FY2020 sales will decrease by 15% from FY2019, to JPY498.5 billion.

Current

Projection

32

63.9 65.5 65.0

9.5 9.2 9.0

2.7% 3.1% 3.6%

0

20

40

60

80

100

FY18 FY19 FY20 Projection

Industrial Machinery&Others

Construction, Mining&Utility Equipment

% of sales

63.4

81.9 71.5

4.2

4.6

4.5

57.7 56.4 56.0

0

10

20

30

40

50

60

70

0

20

40

60

80

100

120


Industrial Machinery&Others

Construction, Mining&Utility Equipment and Retailfinance

R&D Expenses Fixed costsInvestment in production and

other facilities* and depreciation

74.0

67.676.0

74.7

Projected 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


・CAPEX: Will decrease from FY2019 due to temporary “freezing” or delay of new investments under the coronavirus pandemic.

・R&D expenses: Will carry out priority investments in growth areas, thereby sustaining the level on par with FY2019.

・Fixed costs: Will decrease from FY2019, mainly due to reduced operational expenses resulting from the coronavirus pandemic.

33

Appendix

34

51.7 59.4 74.8 82.4 96.0 104.2 95.5 101.974.7 67.2 65.8

42.8 26.9

9.2%10.0%

11.6% 11.9%

14.9% 15.5%

13.6%14.4%

12.3%

11.1% 10.7%

6.9%

5.9%

-50

0

50

100

150

FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q

Operating profit Operating profit ratio

<Appendix>

Quarterly Sales and Operating Income

-10.0 -5.8 -4.7 -4.9 -3.6 -5.3 -7.1 -4.3 -3.0 -3.6 -3.8 -4.3 -8.0

514.9 549.3 594.4 622.0 594.2 606.3 645.3 633.0 561.4 550.1 546.4 553.1

425.8

17.5 13.6 14.7 14.3 14.2 15.1

16.7 17.4

17.2 17.5 18.1 17.9

15.9

38.640.5

42.363.9

41.2 55.745.7 60.4

34.0 39.7 53.2 50.5

25.0

561.2597.7

646.8695.3

646.0671.9

700.5 706.6

609.7603.7 613.9 617.4

458.7

-100

0

100

200

300

400

500

600

700

800


Elimination

Construction, Mining & Utility Equipment

Retail Finance

Industrial Machinery & Others

¥/USD

¥/EUR

¥/RMB

Quarterly sales (Since FY2017)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

Quarterly operating income (Since FY2017)

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

20/1Q 20/2Q 20/3Q 20/4Q

107.5

118.6

15.1

35

47.2 55.079.4

91.288.3

95.6 88.6 92.868.6 61.1 53.0 44.4

23.2

9.2% 10.0%

13.4% 14.7%14.9% 15.8%

13.7% 14.7% 12.2% 11.1%9.7%

8.0%5.4%

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

(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

18% 21% 19% 19% 19% 18% 21% 22% 20% 22% 21% 21% 19%

13% 12% 12% 17% 16% 11% 11% 11% 14% 12% 13% 13% 16%12% 12% 16% 13% 12% 16% 16% 13% 14% 12% 14% 13% 10%

57% 55% 53% 51% 53% 54% 52% 54% 53% 54% 52% 53% 56%

0%

20%

40%

60%

80%

100%


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

515.0549.3 594.5 622.0

594.2 606.3 645.3 633.0 561.4 550.1546.4 553.1

425.8

0

200

400

600


Quarterly Sales

Quarterly segment profit

Billions of yen

Billions of yen

¥/USD

¥/EUR

¥/RMB

Exchange rates

Breakdown of sales(%)

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

20/1Q 20/2Q 20/3Q 20/4Q

107.5

118.6

15.1

36

<Appendix>

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

69.1 87.4 78.7 80.4 63.9 73.5 87.6 87.6

63.7 84.9 77.4 84.6

61.4

116.0

131.4 152.1 138.6 140.6

148.5 158.6 164.4

143.4

147.9 144.0 138.1

99.0

43.0

41.639.7 56.0

53.846.2

46.460.9

59.148.6

52.7 59.2

35.8

72.2

77.882.0 82.6

76.677.4

90.680.7

74.574.1 83.1 77.4

61.5

27.6

25.6 26.2 29.0

31.3 34.3

36.3 32.6

34.0 36.7 29.1 27.4

24.3

38.3

31.7 43.8

50.8 50.5 30.9

37.2 46.0

36.2 25.2 32.7 32.9

43.1

64.1

68.9

76.9 88.5

86.0 91.6

88.4 72.9

62.3 53.0 44.2 45.9

23.3

45.1

40.0

51.5

45.251.0 58.9

54.0 51.5

56.1 46.9 49.3 50.9

50.5

7.4

10.1

9.512.5

6.8 7.6

8.7 7.0

6.96.6 7.1 9.9

4.2

27.8

31.0

30.9

34.7

31.3 33.7

31.9 27.0

23.924.3 25.0 24.8

16.4

510.9

545.8

591.7

618.7

592.1603.0

640.3 631.1

560.5548.7 545.1 551.5

420.0

0

100

200

300

400

500

600


Billions of yen

Africa

Middle East

Oceania

Asia

China

CIS

Latin America

Europe

North America

Japan

¥/USD

¥/EUR

¥/RMB

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

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

20/1Q 20/2Q 20/3Q 20/4Q

107.5

118.6

15.1

37

3.3 2.5 3.0

4.0 5.4 4.0 3.54.3

3.4 3.4 4.01.7 1.8

18.9% 18.9% 20.6% 28.0%38.5%

26.9% 21.1% 25.2% 19.7% 19.5% 22.6%9.9% 11.9%

-10

-5

0

5

10

15


Segment profit Segment profit ratio

<Appendix>

Retail Finance: Quarterly Sales and Segment Profit

17.5

13.6 14.7 14.3 14.2

15.1 16.7

17.4 17.2 17.5 18.1 17.9

15.9

0

5

10

15

20


Quarterly sales


Billions of yen

Billions of yen

¥/USD

¥/EUR

¥/RMB

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

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

20/1Q 20/2Q 20/3Q 20/4Q

107.5

118.6

15.1

38

2.3 2.4

4.35.3

3.04.4 5.1

5.9

0.5

3.4

5.54.0

1.7

6.2% 6.0%

10.2%8.1% 7.4% 8.0%

11.3%9.9%

1.6%

8.8%10.5%

8.0%6.8%

-5

0

5

10

15


Segment profit Segment profit ratio

<Appendix>

Industrial Machinery & Others: Quarterly Sales and Segment Profit

38.6 40.5 42.3

63.9

41.2

55.7 45.7

60.4

34.0 39.7

53.2 50.5

25.0

0

25

50

75

100


Quarterly sales


Billions of yen

Exchange

rates

Billions of yen

¥/USD

¥/EUR

¥/RMB

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

20/1Q 20/2Q 20/3Q 20/4Q

107.5

118.6

15.1

39

0%

50%

100%

150%

200%

0%

50%

100%

150%

200%

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)

40

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

0%

50%

100%

150%

200%

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)

41

0%

50%

100%

150%

200%

0%

50%

100%

150%

200%

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)

42

We plan to use the proceeds from this green bond to:

・develop eco-friendly products and services; and

・reduce environmental impact in production.

Issuance of Komatsu’s First Green BondHybrid equipment Electric Equipment

Next-generation plant

Issue amount: JPY 10 billion

Issue date: July 16, 2020

Maturity: 5 years

Interest rate: 0.130%

Smart Construction

Next-generation KOMTRAX

Renewable

Energy

Press Release on Jul. 10, 2020

43

2005: Trial deployment in Codelco’s copper mine in Chile.

As of June 30, 2020: Operated a total of 251 AHS dump trucks in 11 mines in 4 countries 24/7.

At the end of July: Hauled the cumulative total of 3 billion tons of excavated earth.

Autonomous Haulage System: Hauling the cumulative total of

3 billion tons of excavated earth.


44Construction of New Seal Ring Factory in the Himi Plant 2

To strengthen Himi Plant’s material technology development and perform a role of the global Mother plant of materials for the Komatsu Group,

Komatsu is going to transplant the functions of the current seal ring factory into the new factory, thereby working to dynamically improve product

quality, productivity and environmental performance of the factory.

N

e

w

Expansion of

centrifugal casting

High efficiency

processing line

AI-powered visual

inspection

N

o

wSand molding Polishing Visual Inspection

centrifugal castingHigh efficiency AI-powered

made by

grinding inspection

Camera1 Camera2

New technologies

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/


Note: Seal rings are high-precision parts which are used to prevent lubricant from leaking inside the undercarriage components, such as final drives, a key component of construction

equipment.

business results of fy 2020 for the first 3-month period (april … · 2020. 7. 15. · highlights...

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