02 05-14 komatsu results-q3-1
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02 05-14 komatsu results-q3-1 02 05-14 komatsu results-q3-1 Presentation Transcript

  • Business Results for Three and Nine Months ended December 31, 2013 1 Earnings Presentation for Three and Nine Months ended December 31, 2013 January 29, 2014 Komatsu Ltd. Participants Tetsuji Ohashi President and CEO Mikio Fujitsuka Director and Senior Executive Officer, CFO Akira Sugiki Senior Executive Officer (Speaker) General Manager, Business Coordination Department
  • Business Results for Three and Nine Months ended December 31, 2013 2 1. Results for Three Months ended December 31, 2013
  • Business Results for Three and Nine Months ended December 31, 2013 Sales and Profits for Three months (October-December, 2013) 3 - Third quarter sales advanced by 10.6% from the corresponding period a year ago, to JPY464.3 billion, supported especially by increased sales in Japan where demand remained strong for construction equipment, and in China where demand upturned for recovery, which compensated for the effects of sluggish demand for mining equipment. - Third quarter operating income expanded by 44.5% from the corresponding period a year ago, to JPY56.6 billion, and net income by 46.2% to JPY36.5 billion. % : Profit ratio [ ]: Sales after elimination of inter-segment transactions Oct.-Dec., 2012 (3Q FY12) USD1 = JPY80.1 EUR1 = JPY103.5 RMB1 = JPY12.8 Net sales - Construction, mining & utility equipment - Industrial machinery & others - Construction, mining & utility equipment - Industrial machinery & others USD1 = JPY99.7 EUR1 = JPY135.1 RMB1 = JPY16.3 368.4 53.4 Changes Increase (decrease) 464.3 [420.0] [44.3] 420.7 45.3 Change (%) 44.6 [52.0] [(7.4)] +10.6% 52.2 (8.1) [+14.2%] [-14.4%] (1.6) (2.1) - Elimination Segment profit Oct.-Dec., 2013 (3Q FY13) 419.7 [367.9] [51.7] Billions of yen 0.5 +14.2% -15.2% - 9.5% 39.7 11.8% 54.6 14.8 +37.3% 10.5% 1.0% 38.8 0.5 13.9% (8.1)% 58.3 (3.6) 19.5 (4.2) - +50.3% *1 - Corporate & elimination 0.4 (0.0) (0.4) - Other operating income (expenses) (0.5) 2.0 2.6 - 56.6 17.4 0.9 0.9 0.0 Income before income taxes 40.2 57.6 17.4 +43.4% Net income *2 24.9 36.5 11.5 +46.2% Operating income Other income (expenses) 9.3% 39.2 12.2% *1 Including the loss of write-off of Komatsu NTC’s wire saw inventories in the amount of JPY 7.6 billion. *2 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.” +44.5% -
  • Business Results for Three and Nine Months ended December 31, 2013 4 Construction, Mining & Utility Equipment:Breakdown of Sales (to Outside Customers) for Three Months(Oct.-Dec.,2013) While demand for mining equipment remained sluggish, good sales further expanded in Japan, and sales also increased in China where demand was recovering and in the Middle East and Africa where demand was growing. Third quarter sales of construction, mining and utility equipment increased by 14.2% from the corresponding period a year ago, to JPY420.0 billion. Oct.-Dec., 2012 (3Q FY12) Billions of yen Changes Oct.-Dec., 2013 (3Q FY13) Increase (decrease) Change (%) Japan 76.0 95.6 19.5 +25.7% North America 56.0 65.2 9.1 +16.3% Europe 22.8 28.0 5.2 +22.9% Latin America 62.9 62.6 (0.3) -0.5% CIS 24.4 16.1 (8.3) -34.0% China 20.4 39.5 19.1 +93.3% Asia 34.7 43.3 8.6 +24.8% Oceania 43.5 32.1 (11.4) -26.3% 4.4 9.0 4.6 +104.2% 22.2 28.1 5.9 +26.5% Total 367.9 420.0 52.0 +14.2% Mining equipment in total above 139.1 107.2 (31.9) -22.9% Traditional Markets Strategic Markets Middle East Africa Breakdown of sales by region Strategic Markets 58% Middle East 1% Africa Oceania 6% 12% Asia 9% China 6% CIS 7% Japan 21% Oct.-Dec., 2012 North America 15% Latin Europe America 6% 17% Traditional Markets 42% Strategic Markets 55% Middle East 2% Africa Oceania 7% 8% Asia 10% Japan 23% Oct.-Dec., 2013 North America China 15% 9% CIS Latin Europe 4% America 7% 15% Traditional Markets 45%
  • Business Results for Three and Nine Months ended December 31, 2013 2. Results for the Nine Months ended December 31, 2013 5
  • Business Results for Three and Nine Months ended December 31, 2013 6 Sales and Profits for Nine Months (April-December, 2013) For the nine-month period, consolidated sales increased by 2.9% from the corresponding period a year ago, to JPY1,389.5 billion, mainly supported by increased sales of construction equipment in Japan and China, which compensated for the effects of sluggish demand for mining equipment. Similarly, operating income advanced by 10.1% to JPY165.6 billion, and net income by 26.6% to JPY115.3 billion. % : Profit ratio [ ]: Sales after elimination of inter-segment transactions Apr.-Dec., 2012 Apr.-Dec., 2013 USD1 = JPY79.8 EUR1 = JPY102.1 RMB1 = JPY12.7 USD1 = JPY98.5 EUR1 = JPY130.5 RMB1 = JPY16.1 Net sales - Construction, mining & utility equipment - Industrial machinery & others Billions of yen 1,350.5 [1,248.8] 1,250.7 [140.6] 144.9 (7.6) Increase (decrease) 1,389.5 [1,205.6] 1,207.6 [144.9] 150.6 Changes - Elimination Change (%) 38.9 +2.9% 43.1 (5.7) [+3.6%] [-2.9%] (6.1) 1.4 - [43.2] [(4.2)] +3.6% -3.8% Segment profit 11.2% 151.0 11.8% 163.7 12.6 +8.4% - Construction, mining & utility equipment - Industrial machinery & others 12.3% 148.3 3.8 13.1% 164.1 1.1 15.7 (2.7) +10.6% -70.7% 2.5% 0.8% *1 - Corporate & elimination (1.1) (1.5) (0.4) - Other operating income (expenses) (0.5) 1.9 2.5 - 165.6 15.1 4.4 9.4 145.5 170.1 24.5 +16.9% 91.0 115.3 24.2 +26.6% Operating income Other income (expenses) Income before income taxes Net income *2 11.1% 150.4 (4.9) 11.9% *1 Including the loss of write-off of Komatsu NTC’s wire saw inventories in the amount of JPY 7.6 billion. *2 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.” +10.1% -
  • Business Results for Three and Nine Months ended December 31, 2013 7 Construction, Mining & Utility Equipment: Sales (to Outside Customers) by Region (Apr. – Dec., 2013) While the percentage of sales in Oceania, Asia and Latin America declined in total sales against the backdrop of declined demand for mining equipment, that of Traditional Markets increased, driven by expanded sales in Japan with strong demand. Billions of yen Sales by region (To outside customers) 1,600 - 4.7 % 1,265.1 1,200 400 0 +3.6% : Year-on-year growth rate 1,205.6 1,248.8 69.7 18.7 142.7 64.7 28.3 110.7 235.4 800 Breakdown (%) 77.4 36.2 119.3 Africa 135.3 Oceania 112.3 51.9 183.7 Asia 165.6 82.9 65.6 149.8 57.2 149.4 89.9 195.7 172.2 181.9 207.1 208.5 73.8 Apr.-Dec., 2011 USD1 = JPY78.7 EUR1 = JPY110.6 RMB1 = JPY12.3 Apr.-Dec., 2012 USD1 = JPY79.8 EUR1 = JPY102.1 RMB1 = JPY12.7 Year-on-year growth rate of sales by region Middle East Strategic Markets 57% China Middle East 3% Africa Oceania 6% 9% Asia 11% Japan 20% Traditional Markets 43% Apr.-Dec., North America 2013 16% China 9% CIS Latin Europe 4% America 7% 15% CIS 85.3 Latin America 201.5 Middle East 2% Africa Oceania 6% Europe North America 245.7 Japan Strategic Markets 62% Apr.-Dec., 2013 USD1 = JPY98.5 EUR1 = JPY130.5 RMB1 = JPY16.1 Japan 17% 12% Asia 14% North Apr.-Dec., America 2012 15% Europe China Latin 6% 7% CIS America 5% 16% Traditional Markets 38% Japan North America Europe Latin America CIS China Asia Oceania Middle East Africa Total Apr.-Dec.,2012 +0.7% +5.7% -17.9% +31.0% +14.8% -44.6% -29.6% +28.9% -33.9% +7.8% -4.7% Apr.-Dec.,2013 +17.8% +10.8% +15.6% -6.1% -20.9% +35.3% -18.3% -16.4% +93.7% +10.9% +3.6%
  • Business Results for Three and Nine Months ended December 31, 2013 8 Construction, Mining & Utility Equipment: Causes of Difference in Segment Profit (Apr.-Dec., 2013) - A negative difference of JPY51.6 billion in volume and others caused by the declines in demand and sales was compensated for by the positive differences in selling prices, fixed costs and foreign exchange rates, resulting in a net positive difference of JPY15.7 billion in segment profit for the nine-month period. - Segment profit ratio increased by 0.8 percentage points to 13.1% for the nine-month period. Changes in segment profit (Apr.-Dec., 2012 vs. Apr.-Dec., 2013) Segment profit Billions of yen 200 % 20 148.3 14.1% 100 12.3% 200 15 178.9 150 Billions of yen 150 10 100 164.1 13.1% Volume difference & 148.3 others (51.6) Selling prices +13.7 Foreign exchange rates +47.6 164.1 <Positive factors> - Selling prices :+13.7 bn yen - Fixed costs : +6.0 bn yen - Foreign exchange rates: +47.6 bn yen <Negative factor> - Volume difference & others : (51.6) bn yen Fixed costs +6.0 +15.7 bn 5 50 0 Apr.-Dec., Apr.-Dec., Apr.-Dec., 2011 2012 2013 0 : Segment profit ratio Sales before elimination of inter-segment transactions 50 0 Positive factor Negative factor Total : +15.7 bn yen Apr.-Dec., 2012 Apr.-Dec., 2013 USD1= JPY79.8 EUR1= JPY102.1 RMB1= JPY12.7 USD1= JPY98.5 EUR1= JPY130.5 RMB1= JPY16.1 12.3% Segment profit ratio 13.1%
  • Business Results for Three and Nine Months ended December 31, 2013 9 Industrial Machinery & Others: Sales, and Segment Profit and Backlog Orders - While sales of machine tools, as well as sheet-metal and press machines remained firm, especially to the automobile manufacturing industry, nine-month sales slightly declined from the corresponding period a year ago. - Komatsu realized write-off of Komatsu NTC’s inventories of wire saw parts in the amount of JPY7.6 billion for the third quarter period. - Backlog orders remained stable. 10 5 2.5% 6 50 3.8 0 0.8% 1.1 0 Apr.-Dec., 2011 Apr.-Dec., 2012 Apr.-Dec., 2013 0 Apr.-Dec., 2011 Apr.-Dec., 2012 Breakdown of sales Billions of yen Apr.-Dec.,2012 Apr.-Dec.,2013 33.4 37.6 Komatsu NTC Ltd. 56.5 [6.1] Others Komatsu Industries Corp., etc. Apr.-Dec., 2013 Increase (decrease) 40 Orders received (quarterly) 20 0 Billions of yen Komatsu NTC Ltd. (excl. wire saws) 80 4.2 (9.2) [(3.2)] 40 [represented by Gigaphoton ] [represented by Komatsu House] 60.6 [15.5] [10.6] 59.9 [17.2] [10.7] (0.7) [1.7] [0.1] Total 150.6 144.9 (5.7) Backlog orders Orders received (quarterly) 60 47.3 [2.8] 12 100 60 9 8.8% 6 12 Backlog orders FY13/3 150 12 144.9 Komatsu Industries Corp. 80 9 Segment profit ratio 6 150.6 16.7 FY12/3 18 Backlog orders Billions 15 of yen 12 189.4 % 9 Segment profit Billions of yen 6 200 Sales FY11/3 Billions of yen 12 9 6 FY13/3 12 9 6 FY12/3 12 0 9 20 6 [represented by wire saws] FY11/3 [total of press and sheet-metal machines]
  • Business Results for Three and Nine Months ended December 31, 2013 Retail Finance Business - Total assets at December 31, 2013 increased from the previous fiscal year-end, affected by the Japanese yen’s depreciation and increased new transactions, mainly in North America. - Both nine-month revenues and pretax income increased from the corresponding period a year ago. Billions of yen 700 Consolidated retail finance subsidiaries Billions of yen 1. Assets 60 2. Revenues Revenues 579.9 600 500 400 300 200 100 0 524.9 455.2 North America Others Oceania North America North America 50 40 Pretax income 49.8 37.6 30 Others Others Oceania Oceania 20 China China China 10 Europe Japan Dec. 31, 2012 USD1= JPY86.6 EUR1= JPY114.7 RMB1= JPY13.9 Europe Japan Europe Japan 0 Mar 31, 2013 USD1= JPY94.1 EUR1= JPY120.7 RMB1= JPY15.2 Dec. 31, 2013 USD1= JPY105.4 EUR1= JPY145.1 RMB1= JPY17.4 9.2 Apr.-Dec., 2012 USD1= JPY79.8 EUR1= JPY102.1 RMB1= JPY12.7 10.7 Apr.-Dec., 2013 USD1= JPY98.5 EUR1=JPY130.5 RMB1= JPY16.1 10
  • Business Results for Three and Nine Months ended December 31, 2013 Consolidated Balance Sheets - Total assets at December 31, 2013 increased by JPY203.4 billion from the previous fiscal year-end, mainly due to the Japanese yen’s depreciation. - Shareholders’ equity ratio improved to 49.8%, and net debt-to-equity ratio to 0.44, from the previous fiscal year-end. Billions of yen : Net debt-to-equity ratio Mar.31,2013 USD1 = JPY94.1 EUR1 = JPY120.7 RMB1 = JPY15.2 <Excl. those of consolidated retail finance subsidiaries> Inventories Tangible fixed assets Other assets Total assets Accounts payable Interest-bearing debt [b] <Excl. those of consolidated retail finance subsidiaries> Other liabilities Total liabilities Komatsu Ltd. shareholders’ equity USD1 = JPY105.4 EUR1 = JPY145.1 RMB1 = JPY17.4 93.8 842.7 <414.3> 633.6 585.2 362.4 2,517.8 226.2 679.7 <298.1> 359.1 1,265.1 Cash & deposits (incl. time deposits) [a] Accounts receivable (incl. long-term trade receivables) [Shareholders’ equity ratio] Dec.31,2013 (47.4%) Non controlling interests Liabilities & Equity Interest-bearing debt, net [b-a] 0.49 Net D/E ratio (excl. cash and interest-bearing debt of consolidated retail finance subsidiaries) 0.20 1,193.1 59.5 2,517.8 585.9 Increase (decrease) 111.0 843.2 <393.2> 728.2 645.9 392.8 2,721.3 234.8 704.6 <291.3> 364.1 1,303.7 (49.8%) 0.44 0.16 1,354.5 63.0 2,721.3 593.6 17.1 0.5 <(21.0)> 94.5 60.7 30.4 203.4 8.6 24.8 <(6.7)> 5.0 38.5 (+2.4 points) 161.3 3.5 203.4 7.7 11
  • Business Results for Three and Nine Months ended December 31, 2013 3. Current Demand for Construction and Mining Equipment by Region and Business Segment and Our Business Outlook 12
  • Business Results for Three and Nine Months ended December 31, 2013 13 Construction, Mining & Utility Equipment: Demand and Outlook for 7 Major Products - In the third quarter, while demand for mining equipment remained sluggish, overall demand for construction and mining equipment increased by 6% from the corresponding period a year ago, mainly supported by increased demand in Japan where demand remained strong and in China where market conditions upturned for recovery. - With respect to full-year demand in FY2013, we are keeping our projection of October 2013, i.e., a decline of 2% to 7% from FY2012. - Concerning full-year demand in FY2014, we anticipate that it will be comparable to FY2013. Quarterly demand for 7 major products Annual demand for 7 major products Growth rate Units 150,000 Japan Europe Others 90% North America China Y-O-Y growth rate +63% 120,000 +53% 40% +22% +14% 400,000 +11% +16% 30% +6% +7% -1% +1% -1% -6% -9% -7% +13% 84 to 88 +15% +13% 97 100 300,000 92 80 91 -2% to -7% -7% -20% 200,000 -3% -20% -32% -30% 20% 0% +5% 64 0% -14% 30,000 +45% Index : FY2007=100 +46% 90,000 60% Japan North America Europe China Others Y-O-Y growth rate 500,000 +36% 60,000 600,000 60% +40% Growth rate Units -20% 100,000 -40% 0 -60% Demand: Estimated by Komatsu FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY07 FY06 FY05 -60% FY04 3Q 2Q 4Q 1Q FY13 3Q 2Q 4Q 1Q FY12 3Q 2Q 4Q 1Q FY11 3Q 2Q 1Q FY10 4Q 3Q 2Q 1Q FY09 4Q 0 3Q FY08 -48% -47% FY03 -42%
  • Business Results for Three and Nine Months ended December 31, 2013 14 Construction, Mining & Utility Equipment: Demand in Major Markets (1)Japan & North America Japan: Third quarter demand expanded, fueled by increased construction investment and full-scale reconstruction works in the earthquake and tsunami destroyed-regions, as well as expanded purchase of equipment by customers who have looked into stricter emission regulations for the near future. Third quarter demand climbed by 41% from the corresponding period a year ago. North America: Third quarter demand was comparable to the corresponding period a year ago, supported by increased demand in the housing and energy sectors, while demand in the rental industry remained sluggish. North 2Q (Jul.-Sep.): Y-O-Y -2% 2Q (Jul.- Sep.): Y-O-Y +41% Japan America 3Q (Oct.-Dec.): Y-O-Y +/- 0% 3Q (Oct.-Dec.): Y-O-Y +41% 100% 50% Demand (units) 100 60 Y-O-Y growth rate 61 80 90 Units 127 16,000 12,000 40% 4,000 0% 0 Index 3Q FY07=100 12,000 Komatsu Group rental Nationwide/local independent rental 8,000 Ownership -60% 62 70 30,000 76 10,000 0 FY13 Projection: +/- 0% to -5% (As of Oct. 2013) Index 3Q FY05=100 Y-O-Y growth rate Rental ↓ 100% Distributors' rental Independent rental Mining & energy 80% 60% 40% Road +40% 1Q FY09 2Q 3Q 4Q 1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 20,000 37 Ownership 0 76 Breakdown of demand by segment (Unit based) +49% 4,000 78 50 0% Demand for hydraulic excavators (Rental & ownership) Units 96 20% -40% 1Q FY07 2Q 3Q 4Q 1Q FY08 2Q 3Q 4Q 1Q FY09 2Q 3Q 4Q 1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q -100% 100 Units Y-O-Y growth rate -20% FY13 Projection: +15% to +20% (As of Oct.2013) -50% Demand (units) 60% 8,000 40 <Demand for 7 major products> Y-O-Y growth rate 1Q FY05 2Q 3Q 4Q 1Q FY06 2Q 3Q 4Q 1Q FY07 2Q 3Q 4Q 1Q FY08 2Q 3Q 4Q 1Q FY09 2Q 3Q 4Q 1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q <Demand for 7 major products> Y-O-Y growth rate 20% Construction 0% Others FY07 FY08 FY09 FY10 FY11 FY12 Apr.-Dec., Apr.-Dec., 2012 2013 Y-O-Y growth rate Rental -20% Others +10%
  • Business Results for Three and Nine Months ended December 31, 2013 15 Construction, Mining & Utility Equipment: Demand in Major Markets (2) China, Southeast Asia China: Demand for construction equipment (made by foreign makers) upturned for recovery in the first quarter of FY2013 and has been increasing year-on-year since then. Southeast Asia: Demand declined by 12% in the third quarter of FY2013 from the corresponding period a year ago. 2Q (Jul.- Sep.): Y-O-Y +25% 3Q (Oct.-Dec.): Y-O-Y +33% <Demand for 7 major products> Y-O-Y growth rate 250% 200% 150% 100% Demand (units) Index Y-O-Y growth rate Units 40,000 234 100 64 125 169 76 50% 30,000 101 20,000 10,000 -50% 0 (Foreign makers: Total of 6-ton and larger models) 24,000 FY13 Projection 16,000 FY12 FY11 12,000 FY10 : : : : Malaysia Thailand Y-O-Y growth rate 80% 100 40% 113 12,000 -2% 157 221 170 9,000 150 69 6,000 3,000 0 Index : 3Q FY07=100 FY13 Projection: -15% to -20% (As of Oct.2013) Indonesia: Demand for construction & mining equipment by industrial sector 7,000 Forest Agro Construction Mining 6,000 Jan. 31, 2014 Feb. 10, 2013 Jan. 23, 2012 Feb. 3, 2011 3Q: -12% Units (Represented by Indonesia) 0% Units <Chinese New Year> 20,000 Other countries 120% -80% Monthly demand for hydraulic excavators Units Indonesia 160% -40% 1Q FY07 2Q 3Q 4Q 1Q FY08 2Q 3Q 4Q 1Q FY09 2Q 3Q 4Q 1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q 0% <Demand for 7 major products> Y-O-Y growth rate 50,000 FY13 Projection: +12% to +17% (As of Oct.2013) 3Q FY07=100 2Q (Jul.- Sep.): Y-O-Y -24% 3Q (Oct.-Dec.): Y-O-Y -12% Southeast Asia 1Q FY07 2Q 3Q 4Q 1Q FY08 2Q 3Q 4Q 1Q FY09 2Q 3Q 4Q 1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q China 5,000 4,000 <Mining> Apr.-Dec.: -45% 3,000 8,000 2,000 1,000 0 0 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. 1Q FY08 2Q 3Q 4Q 1Q FY09 2Q 3Q 4Q 1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q 4,000 Demand: Estimated by Komatsu
  • Business Results for Three and Nine Months ended December 31, 2013 16 Construction, Mining & Utility Equipment: Mining Equipment Demand and Outlook - Quarterly demand for mining equipment has continued to decline year-on-year since the third quarter of FY2012, reflecting a cooled down mindset of customers concerning capital investment against the backdrop of subdued commodity prices. - We project the full-year demand will decline by 50% in FY2013 from FY2012, as announced in October 2013. Quarterly demand for mining equipment 100% 3,000 2,500 2,000 1,500 1,000 500 0 Dump trucks: 75 tons (HD785) and larger, Bulldozers: 525HP (D375) and larger, Excavators: 200 tons (PC2000) and larger, Wheel loaders: 810HP (WA800) and larger, Motor graders: 280HP (GD825) and larger Y-O-Y growth rate Units +61% +59% Annual demand for mining equipment +49% +40% 50% +25% +5% Middle East & 12,000 Africa Oceania +39% 10,000 0% -11% -33% -55% -56% -48% -50% Y-O-Y growth rate Units Asia China Europe & CIS Latin America North America +6% +52% 50% +15% -5% 0% 8,000 6,000 4,000 Asia China -34% -50% -50% -100% Europe & CIS Latin America North America 2,000 Y-O-Y growth rate Y-O-Y growth rate 0 Demand: Estimated by Komatsu Middle East & Africa Oceania Projection (as of Oct., 2013)
  • Business Results for Three and Nine Months ended December 31, 2013 17 Construction, Mining & Utility Equipment: Sales of Mining Equipment Quarterly sales of mining equipment have continued to decline year-on-year in tandem with sluggish demand. We project that full-year sales of mining equipment, including parts and service for FY2013 will decline by 22% from FY2012. Annual sales of mining equipment Quarterly sales of mining equipment (Incl. parts and service)) +24% +20% +4% 800 -1% 200 158.5 155.2 -27% -23% 0% -50% 163.4 157.0 139.1 136.4 133.9 -16% Asia 129.6 125.3 Middle East & Africa Oceania Y-O-Y growth rate +22% 107.2 100 Europe & CIS 50% +33% +11% -14% 614.5 600 50 Y-O-Y growth rate 614.5 422.0 400 356.5 -50% 476.0 417.0 361.5 Latin America North America 0% -22% 554.0 China 119.2 +18% +15% Equipment, service, & others 150 Billions of yen 50% FY13 FY12 FY11 FY10 FY09 FY08 0 FY07 3Q 2Q 1Q FY13 4Q 3Q 2Q 1Q FY12 4Q 3Q 2Q 1Q FY11 443.0 293 0 200 Parts 0 476.0 Projection (As of Oct., 2013) 183.0 171.5 FY13 250 (Incl. parts and service)) Y-O-Y growth rate FY12 Billions of yen Projection (As of Oct., 2013)
  • Business Results for Three and Nine Months ended December 31, 2013 18 Construction, Mining & Utility Equipment: Sales of Parts - Third quarter sales of parts advanced by 19% from the corresponding period a year ago. - We project that full-year sales of parts will increase by 13% for FY2013 from FY2012, as announced in October 2013. Quarterly sales of parts Construction equipment Y-O-Y growth rate Billions of yen Annual sales of parts Mining equipment Y-O-Y growth rate 140 +12% +15% +14% 120 +18% +13% -1% +3% -3% +4% 100 80 60 94.4 80.9 40.7 77.4 76.9 39.5 37.9 81.8 +19% 80.3 79.7 40.9 37.3 36.0 85.2 74.3 40.0 45.2 +11% Construction equipment Y-O-Y growth rate 500 +13% +2% 317.0 -20% 300 259.5 319.5 159.0 148.0 20 154.5 152.0 3Q 2Q 1Q FY13 4Q 3Q 2Q 1Q FY12 4Q 3Q 2Q 1Q FY11 0 +0% 178.5 120.0 100 105.0 0 +20% 141.5 40 49.2 44.6 46.3 40.2 37.9 39.0 40.9 43.0 43.7 39.6 45.2 361.5 Y-O-Y growth rate -20% 280.0 265.0 238.0 200 +13% +1% -10% 400 44.2 41.8 34.7 Mining equipment +18% 20% 0% 88.8 88.1 Billions of yen FY07 113.0 FY08 118.0 FY09 138.5 FY10 158.0 FY11 171.5 FY12 183.0 FY13 Projection (As of Oct 2013)
  • Business Results for Three and Nine Months ended December 31, 2013 19 Cautionary Statement This presentation sheets contain forward-looking statements that reflect management’s views and assumptions in the light of information currently available with respect to certain future events, including expected financial position, operating results and business strategies. These statements can be identified by the use of terms such as ”will,” “believes,” “should,” “projects,” “plans,” “expects,” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured. Any forward-looking statements speak only as of the date of this presentation sheets, and Komatsu assumes no duty to update such statements. Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company’s principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated costs or delays encountered in achieving the Company’s objectives with respect to globalized product sourcing and new information technology tools; uncertainties as to the results of the Company’s research and development efforts and its ability to access and protect certain intellectual property rights; the impact of regulatory changes and accounting principles and practices; and the introduction, success and timing of business initiatives and strategies. D61PXi-23 medium-sized bulldozer which features the world's first* full automatic blade control * Based on Komatsu's research concerning seven major products, i.e., crawler-type hydraulic excavator, wheel-type hydraulic excavator, wheel loader, bulldozer, motor grader, rigid dump truck and articulated dump truck Business Coordination Department, KOMATSU LTD. TEL: +81-3-5561-2687 FAX: +81-3-3582-8332 http://www.komatsu.com/
  • Business Results for Three and Nine Months ended December 31, 2013 <Appendix> 20
  • Business Results for Three and Nine Months ended December 31, 2013 21 <Appendix> Quarterly Sales and Operating Income Billions of yen 600 500 400 447.1 412.6 44.2 57.3 442.2 405.6 541.1 75.5 494.1 358.9 383.8 -3.6 -2.9 462.6 75.8 53.0 436.6 419.7 412.6 -3.0 -3.9 -3.0 1Q FY11 2Q 1Q FY11 469.5 491.6 60.5 61.2 300 200 Quarterly sales Industrial Machinery & Others Construction, Mining & Utility Equipment Elimination 2Q FY11 533.2 534.4 469.9 460.9 43.0 54.1 429.7 409.3 368.4 -3.6 -2.9 -2.5 -2.1 3Q 4Q 1Q FY12 2Q 3Q 3Q FY11 4Q FY11 1Q FY12 2Q FY12 3Q FY12 61.6 475.2 419.7 455.1 469.9 464.3 40.3 59.2 45.3 416.6 413.4 420.7 -3.2 -1.8 -1.6 4Q 1Q FY13 -2.6 2Q 3Q 4Q 1Q FY13 2Q FY13 3Q FY13 4Q FY13 65.6 53.4 471.9 100 0 -2.7 Exchange 1Q FY10 2Q rates 1Q FY10 2Q FY10 USD 91.3 yen EUR 85.0 yen 3Q 3Q FY10 82.2 yen -3.9 4Q 4Q FY10 82.3 yen 81.2 yen 114.8 yen 111.5 yen 110.4 yen 113.8 yen RMB 13.4 yen 100 12.1% 12.1% 80 60 12.4 yen Operating income Billions of yen 120 12.6 yen 54.0 49.8 1Q FY10 2Q 12.5 yen 12.5 yen 12.1 yen 13.8% 60.1 79.8 yen 80.6 yen * 68.3 12.3 yen 12.7 yen 12.8 yen 78.7 yen 80.1 yen 90.7 yen 98.3 yen 103.5 yen 120.1 yen 12.4 yen 12.8 yen 14.6 yen 97.3 yen 98.6 yen 99.7 yen 126.4 yen 129.9 yen 135.1 yen 15.8 yen 16.1 yen 16.3 yen Quarterly operating income Operating income ratio 11.1% 77.9 yen 118.3 yen 108.7 yen 104.9 yen 106.3 yen 104.6 yen 13.3% 58.8 77.1 yen 4Q FY12 13.1% 64.5 12.7% 12.1% 11.9% 11.4% 11.5% 12.0% 12.2% 61.1 12.1% 52.4 56.5 56.6 4Q 1Q FY13 2Q 3Q 9.3% 58.8 64.5 55.7 55.5 39.2 40 20 0 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 * Including adverse effects of 7.0 billion yen from the earthquake disaster. 2Q 3Q 4Q
  • Business Results for Three and Nine Months ended December 31, 2013 <Appendix> 22 Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit Billions of yen 600 500 400 Quarterly sales 405.6 469.5 358.9 383.8 436.6 419.7 412.6 1Q FY11 2Q 3Q 3Q FY11 475.2 471.9 429.7 409.3 4Q 1Q FY12 2Q 3Q 4Q FY11 1Q FY12 2Q FY12 3Q FY12 416.6 413.4 420.7 4Q 1Q FY13 2Q 3Q 4Q 4Q FY12 1Q FY13 2Q FY13 3Q FY13 4Q FY13 368.4 300 200 100 0 1Q FY10 Exchange 1Q FY10 rates USD EUR RMB 91.3 yen 2Q FY10 85.0 yen 3Q 3Q FY10 82.2 yen 4Q 4Q FY10 82.3 yen 1Q FY11 81.2 yen 2Q FY11 77.1 yen 77.9 yen 79.8 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 12.5 yen 12.1 yen 12.3 yen 12.7 yen 12.8 yen 78.7 yen 80.1 yen 90.7 yen 97.3 yen 98.6 yen 99.7 yen 98.3 yen 103.5 yen 120.1 yen 126.4 yen 129.9 yen 135.1 yen 12.4 yen 12.8 yen 14.6 yen 15.8 yen 16.1 yen 12.8% 12.6% 12.9% 52.6 53.1 1Q FY13 2Q 16.3 yen Quarterly segment profit Segment profit Segment profit ratio 13.4% 13.4% 14.1% 13.7% 13.9% 14.1% 14.3% 14.2% 100 12.6% 13.5% 13.9% 10.5% 80 60 80.6 yen 114.8 yen 111.5 yen 110.4 yen 113.8 yen 118.3 yen 108.7 yen 104.9 yen 106.3 yen 104.6 yen Billions of yen 120 2Q 54.2 48.0 1Q FY10 2Q 54.0 64.4 60.8 59.2 58.8 67.3 54.2 60.5 55.3 38.8 40 58.3 20 0 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 3Q 4Q
  • Business Results for Three and Nine Months ended December 31, 2013 <Appendix> Construction, Mining & Utility Equipment: Quarterly Sales (To Outside Customers) by Region Billions of yen 500 474.2 468.7 15.4 14.9 400 405.2 11.9 9.4 29.8 63.1 300 383.2 358.4 16.2 11.8 27.8 17.9 6.6 200 12.7 10.2 49.8 41.0 68.5 21.8 42.1 418.3 411.4 25.6 10.0 20.5 7.2 37.9 34.2 38.5 74.8 81.0 60.2 42.7 19.6 21.9 52.3 50.9 24.3 31.4 31.5 48.6 52.7 55.1 38.8 35.5 16.6 18.5 49.4 48.9 29.2 29.1 61.7 USD 64.5 61.4 67.6 1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q EUR RMB 85.0 yen 82.2 yen 82.3 yen 114.8 yen 111.5 yen 110.4 yen 113.8 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 22.5 81.2 yen 21.9 63.3 30.6 27.9 22.2 4.4 43.5 19.2 69.3 20.4 24.4 62.9 50.2 24.9 24.3 13.6 52.3 36.9 47.3 39.7 47.9 41.4 63.5 43.9 31.3 17.2 18.5 61.6 26.5 59.4 26.7 23.0 22.8 94.4 62.5 69.8 84.2 1Q FY12 2Q 3Q 4Q 420.0 28.1 9.0 32.1 43.3 66.4 1Q FY13 CIS 28.0 Latin America 65.2 83.5 95.6 2Q 3Q 98.3 yen 103.5 yen 120.1 yen 126.4 yen 129.9 yen 135.1 yen 15.8 yen 16.1 yen 16.3 yen 14.6 yen Japan 4Q 1Q FY13 2Q FY13 3Q FY13 4Q FY13 99.7 yen 12.8 yen Europe North America 98.6 yen 12.4 yen Asia 62.6 97.3 yen 80.1 yen Oceania China 90.7 yen 78.7 yen Middle East 16.1 30.4 70.6 Africa 39.5 65.6 1Q FY12 2Q FY12 3Q FY12 4Q FY12 12.8 yen 13.6 23.8 76.0 104.6 yen 12.7 yen 21.7 34.7 412.8 56.0 118.3 yen 108.7 yen 104.9 yen 106.3 yen 12.3 yen 367.9 415.9 63.9 61.9 80.6 yen 12.1 yen 77.9 yen 40.7 79.8 yen 12.5 yen 77.1 yen 25.1 9.0 52.4 55.7 1Q FY11 2Q FY11 3Q FY11 4Q FY11 10.9 408.7 78.5 4Q 69.6 91.3 yen 84.0 79.2 62.9 28.2 54.8 44.3 65.5 78.0 Exchange rates 1Q FY10 2Q FY10 3Q FY10 4Q FY10 51.0 22.4 5.2 55.2 54.4 0 428.9 51.4 75.4 16.7 25.7 8.1 79.4 114.2 54.3 26.8 18.5 11.0 67.2 57.2 100 34.8 28.9 61.0 98.4 435.3 471.3 23
  • Business Results for Three and Nine Months ended December 31, 2013 <Appendix> 24 Industrial Machinery & Others: Quarterly Sales and Segment Profit Billions of yen 100 Quarterly sales 57.3 50 75.8 75.5 75 61.2 60.5 53.0 44.2 65.6 61.6 43.0 54.1 59.2 53.4 45.3 40.3 25 0 1Q FY10 2Q 3Q 4Q Exchange rates 1Q FY10 2Q FY10 3Q FY10 4Q FY10 USD EUR RMB 91.3 yen 85.0 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 1Q FY11 2Q 2Q FY11 81.2 yen 77.1 yen 3Q 3Q FY11 77.9 yen 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 4Q FY11 1Q FY12 2Q FY12 3Q FY12 4Q FY12 1Q FY13 2Q FY13 79.8 yen 80.6 yen 118.3 yen 108.7 yen 104.9 yen 106.3 yen 104.6 yen 12.5 yen 12.1 yen 12.3 yen 12.7 yen 12.8 yen 78.7 yen 80.1 yen 90.7 yen 97.3 yen 3Q 4Q 3Q FY13 98.6 yen 4Q FY13 99.7 yen 98.3 yen 103.5 yen 120.1 yen 126.4 yen 129.9 yen 135.1 yen 12.4 yen 12.8 yen 14.6 yen 15.8 yen 16.1 yen 16.3 yen Quarterly segment profit 11.9% 10.0% 7.2 7.5 7.2% 10 4.6% 0 82.3 yen 114.8 yen 111.5 yen 110.4 yen 113.8 yen Billions of yen 15 5 82.2 yen 1Q FY11 2.0 1Q FY10 14.6% Segment profit Segment profit ratio 8.3% 8.8 6.2 3.0% 4.0 1.5 2Q 3Q 4Q 1Q FY11 6.7% 5.5% 2Q 3Q 1.7% 0.1% 2.3 0.0 4Q 1Q FY12 0.9 2Q 1.0% 0.5 3Q 3.7% 2.3 4Q 2.0% 3.9 0.8 1Q FY13 * (3.6) 2Q 3Q -8.1% -5 * Including the loss of write-off of Komatsu NTC’s wire saw inventories in the amount of JPY 7.6 billion. 4Q