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  1. 1. Business Results for FY2011 Business Results for FY2011 ended March 31, 2012 April 26, 2012 Mikio FujitsukaDirector and Senior Executive Officer, CFO Komatsu Ltd. 1
  2. 2. Business Results for FY2011 Highlights of FY2011 ended March 31, 20121. Sales and Profits - Net Sales increased by 7.5% from the previous fiscal year, to 1,981.7 billion yen. - Operating income increased by 15.0% to 256.3 billion yen and operating income ratio improved to 12.9%. FY2010 FY2011 vs. FY2010 Net sales 1,843.1 bil yen 1,981.7 bil yen + 7.5 % Operating income 222.9 bil yen 256.3 bil yen + 15.0 % Operating income ratio 12.1 % 12.9 % + 0.8 pts Net income* 150.7 bil yen 167.0 bil yen + 10.8 % ROE 17.2% 17.3% + 0.1 pt Net D/E ratio 0.50 0.56 (0.06) pts [Excl. consolidated retail finance subsidiaries] [ 0.24 ] [ 0.28 ] [ (0.04) pts ] * “Net income” is equivalent to “Net income attributable to Komatsu Ltd.” in accordance with the FASB Accounting Standards Codification (ASC) 810.2. Review of two business segments Reference : Sales and profits calculated by USD and EUR Construction, Mining & Utility Equipment: Million USD FY10 FY11 % change - While demand dropped drastically in China, net sales increased by 7.7% from the previous fiscal year, reflecting positive factors, such as expanded sales of Net sales 22,206 24,168 + 8.8 % construction equipment in other regions and of mining equipment and spare Operating income 2,686 3,126 + 16.4 % parts. Net income 1,816 2,037 + 12.2 % - Although the Japanese yen appreciated against U.S. dollar, Euro and Renminbi, segment profit ratio advanced by +0.5 points from the previous fiscal year, supported by increased selling prices as well as reduced production costs. Million EUR FY10 FY11 % change Industrial Machinery & Others: Net sales 17,066 18,016 + 15.3 % - Sales increased, supported by expanded sales of presses, machine tools and Operating income 2,064 2,330 + 23.4 % prefabricated structures, however, segment profit declined due to a drastic Net income 1,396 1,519 + 18.9 % drop in demand for wire saws.3. Cash dividends Year-end cash dividends: 21 yen per share. Annual dividends: 42 yen per share including interim dividend of 21 yen per share. (To be proposed to the 143rd ordinary general meeting of shareholders.) 2
  3. 3. Business Results for FY2011 Sales and Profits for FY2011 ended March 31, 2012- Both consolidated net sales and profits increased from the previous fiscal year, as the adverse effects of the Japanese yen’s appreciation and plunged demand in China were compensated for mainly by expanded sales of construction equipment in other regions and of mining equipment and parts.- Operating income ratio increased by 0.8 points to 12.9%. Billions of yen FY2010 FY2011 % : Profit ratio 1USD = 85 yen 1USD = 79 yen 1EUR = 113 yen 1EUR = 110 yen Increase (decrease) [ ] : Sales after elimination of inter-segment transactions 1RMB = 12.7 yen 1RMB = 12.4 yen Net sales *1 1,843.1 1,981.7 + 138.6 + 7.5 % Construction, Mining & Utility Equipment [1,615.6] 1,618.0 [1,739.3] 1,744.2 [+ 123.6] + 126.1 [+ 7.7 %] + 7.8 % Industrial Machinery & Others [227.4] 238.3 [242.4] 251.1 [+ 14.9] + 12.7 [+ 6.6 %] + 5.4 % Elimination (13.3) (13.6) (0.3) - Segment profit 12.7% 234.9 13.1% 258.6 + 23.6 + 10.1 % Construction, Mining & Utility Equipment 13.6% 220.8 14.1% 246.2 + 25.4 + 11.5 % Industrial Machinery & Others 8.8% 20.9 6.7% 16.7 (4.1) (20.0)% Corporate & elimination (6.8) (4.4) + 2.4 - Other operating income (expenses) *2 (12.0) (2.3) + 9.7 - Operating income 12.1% *1 222.9 12.9% 256.3 + 33.4 + 15.0 % Other income (expenses) (3.1) (6.7) (3.6) - Net income before income taxes 219.8 249.6 + 29.8 + 13.6 % Net income *3 150.7 167.0 + 16.2 + 10.8 % Cash dividends per share 38 yen 42 yen + 4 yen*1 Including adverse effects by the earthquake : reduced sales of 9.2 billion yen and reduced operating income of 7.0 billion yen. *2 Including structural reform expenses of 3.8billion yen. *3 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.” 3
  4. 4. Business Results for FY2011 Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit - Sales increased from the previous 4th quarter a year ago, as the adverse effects of dropped demand in China were compensated for primarily by expanded sales in other regions and of mining equipment and parts. - Segment profit ratio remained at a high level. Billions of yen Quarterly salesExchange rates 08/1Q 08/2Q 08/3Q 08/4Q 09/1Q 09/2Q 09/3Q 09/4Q 10/1Q 10/2Q 10/3Q 10/4Q 11/1Q 11/2Q 11/3Q 11/4Q 1USD 105yen 107yen 95yen 95yen 97yen 93yen 90yen 91yen 91yen 85yen 82yen 82yen 81yen 77yen 78yen 80yen 1EUR 165yen 159yen 126yen 123yen 133yen 133yen 133yen 124yen 115yen 111yen 110yen 114yen 118yen 109yen 105yen 106yen 1RMB 15.2yen 15.7yen 13.9yen 13.9yen 14.2yen 13.6yen 13.2yen 13.3yen 13.4yen 12.6yen 12.4yen 12.5yen 12.5yen 12.1yen 12.3yen 12.7yen Billions of yen Quarterly segment profit 4
  5. 5. Business Results for FY2011 Construction, Mining & Utility Equipment: Sales by Region and Segment Profit - Sales increased by 7.7% from the previous fiscal year, as the adverse effects of dropped demand in China were compensated for mainly by expanded sales in Japan, North America and Strategic Markets except China. - In spite of a sharp appreciation of the Japanese yen, segment profit ratio improved to 14.1%. Sales by region (To outside customers) Breakdown (%) Segment profitBillionsof yen : Year-on-year growth rate Billions % 7.7% Strategic Traditional of yen 1,739.3 Markets Markets 1,615.6 63% 37% +27.4% 1,268.5 FY2011 14.1% 13.6% Strategic Traditional 6.5% Markets Markets 67% 33% FY2010 ¥93/USD ¥85/USD ¥79/USD ¥131/EUR ¥113/EUR ¥110/EUR : Segment profit ratio ¥13.6/RMB ¥12.7/RMB ¥12.4/RMB Sales before elimination of Rate of growth (year-on-year basis) inter-segment transactions North Latin Middle % Japan Europe CIS China Asia Oceania Africa Total America America East FY2010 +10.1% +36.2% +15.7% +18.5% +87.6% +36.7% +49.8% +7.6% +33.1% +15.6% +27.4% FY2011 +13.8% +28.9% +15.5% +1.5% +34.0% (39.8)% +26.3% +33.1% (15.0)% +46.9% +7.7% 5
  6. 6. Business Results for FY2011 Construction, Mining & Utility Equipment: Causes of Difference in Sales and Segment Profit- Sales increased by 126.1 billion yen from the previous fiscal year. Negative factors of the Japanese yen’s appreciation and dropped demand in China were compensated for by improved selling prices, expanded sales of construction equipment in other regions and of mining equipment and parts.- Segment profit improved by 25.4 billion yen. Negative factors of the Japanese yen’s appreciation, increased fixed costs and steel prices were compensated for by improved selling prices and expanded volume of sales. Segment profit ratio improved to 14.1%. Sales Segment profit FY2010 vs. FY2011 Billions FY2010 vs. FY2011Billions of yenof yen Sales Volume Foreign difference Foreign exchange in other difference exchange rate Sales markets rate Selling & others difference difference +316.0 price + 39.8 in China difference Fixed (64.0) (34.2) difference (125.8) costs Production + 34.7 difference costs (12.0) difference (3.0) +126.1 +25.4 billion yen billion yen Positive factor Positive factors Negative factors Negative factors FY2010 FY2011 FY2010 FY2011 ¥85/USD ¥79/USD ¥85/USD ¥79/USD ¥113/EUR ¥110/EUR ¥113/EUR ¥110/EUR ¥12.7/RMB ¥12.4/RMB ¥12.7/RMB ¥12.4/RMB 13.6% Segment profit ratio 14.1% 6
  7. 7. Business Results for FY2011 Industrial Machinery & Others: Sales and Segment Profit- Sales increased from the previous fiscal year with expanded sales of presses, machine tools and prefabricated structures for temporary shelters, while demand of wire saws plunged.- Segment profit declined from the previous fiscal year, due to a drastic drop in demand for wire saws.Billions Billionsof yen Sales Segment profit % of yen 8.8% Segment profit ratio 6.7% 1.7% Breakdown of sales : FY2010 vs. FY2011 Billions of yen Sales FY2010 FY2011 Increase (decrease) Komatsu Industries Corp and others: 41.2 46.6 + 54 Sheet-metal and press machines business Komatsu NTC Ltd. 129.1 108.8 (20.3) [Provided by wire saws] [83.0] [46.5] [(36.5)] GIGAPHOTON INC., Komatsu House Ltd., KELK Ltd., Defense Systems Division and 68.0 95.7 + 27.7 others Total 238.3 251.1 + 12.7 7
  8. 8. Business Results for FY2011 Retail Finance Business Assets expanded especially in North America and China. Both revenues and pretax income advanced from the previous fiscal year. Consolidated retail finance subsidiaries (internal-use data)Billions 1. Assets Billions 2. Revenuesof yen of yen 423.0 375.2 North America North America Others Others Australia Australia China China Europe Europe Japan Japan Elimination Elimination March 31, 2011 March 31, 2012 ¥83/USD ¥82/USD ¥85/USD ¥79/USD ¥118/EUR ¥110/EUR ¥113/EUR ¥110/EUR ¥12.7/RMB ¥13.1RMB ¥12.7/RMB ¥12.4/RMB 8
  9. 9. Business Results for FY2011 Consolidated Balance Sheets- Total assets increased by 171.3 billion yen from the previous fiscal year-end, reflecting increased receivables and inventories resulting from expanded demand and sales.- Komatsu Ltd. shareholder’s equity topped 1 trillion yen, further improving its ratio. Billions of yen Mar. 31, 2011 Mar 31, 2012 Increase 83 yen/USD 82 yen/USD Net D/E ratio 118 yen/EUR 110 yen/EUR (decrease) 12.7 yen/RMB 13.1 yen/RMB Cash & deposits (Incl. time deposits) [a] 84.9 83.9 (0.9) Accounts receivable (Incl. long-term trade receivables) 716.0 744.0 + 28.0 <Excl. those of consolidated retail finance subsidiaries> <419.3> <397.5> <(21.8)> Inventories 473.8 612.3 + 138.4 Tangible fixed assets 508.3 529.6 + 21.2 Other assets 365.8 350.4 (15.4) Total assets 2,149.1 2,320.5 + 171.3 Accounts payable 308.9 273.4 (35.5) Interest-bearing debt [b] 544.0 647.8 + 103.7 <Excl. that of consolidated retail finance subsidiaries> <276.9> <336.9> <+60.0> Other liabilities 323.4 341.8 + 18.3 Total liabilities 1,176.4 1,263.0 + 86.6 [ Shareholders’ equity ratio ] [ 43.0% ] [ 43.5% ] [ + 0.5 pts ] Komatsu Ltd. shareholders’ equity 923.8 1,009.6 + 85.8 Noncontrolling interests 48.8 47.7 (1.0) Liabilities & Equity 2,149.1 2,320.5 + 171.3 Interest-bearing debt, net [b-a] 0.50 459.1 0.56 563.8 + 104.7 Net D/E ratio excluding cash and interest-bearing debt of consolidated retail finance subsidiaries 0.24 0.28 9
  10. 10. Business Results for FY2011<Appendix> 10
  11. 11. Business Results for FY2011 Sales and Profits for Three Months (January - March, 2012) Billions of yen Jan. - Mar., 2011 Jan.- Mar., 2012 % : Profit ratio 1USD = 82 yen 1USD = 80 yen Increase Change 1EUR = 114 yen 1EUR = 106 yen (decrease) % [ ]: Sales after elimination of inter-segment transactions 1RMB = 12.5 yen 1RMB = 12.7 yenNet sales *1 541.1 533.2 (7.9) (1.5) %Construction, Mining & UtilityEquipment [468.7] 469.5 [474.2] 475.2 [+ 5.4] + 5.6 [+ 1.2 %] + 1.2 %Industrial Machinery & Others [72.3] 75.5 [59.0] 61.6 [(13.3)] (13.8) [(18.5) %] (18.4) %Elimination (3.9) (3.6) + 0.2 -Segment profit 12.9 % 69.8 12.6 % 67.0 (2.8) (4.1) %Construction, Mining & UtilityEquipment 13.7 % 64.4 14.2 % 67.3 + 2.8 + 4.5 %Industrial Machinery & Others 10.0 % 7.5 0.1 % 0 (7.5) (99.2) %Corporate & elimination (2.1) (0.3) + 1.7 -Other operating income (expenses) *2 (9.7) (2.5) + 7.1 -Operating income 11.1 % *1 60.1 12.1% 64.5 + 4.3 + 7.2 %Other operating income (expenses) 0.7 (0.5) (1.3) -Net income before income taxes 60.9 63.9 + 3.0 + 4.9 %Net income *3 50.1 37.6 (12.4) (24.9) %*1 Including adverse effects by the earthquake : reduced sales of 9.2 billion yen and reduced operating income of 7.0 billion yen. *2 Including structural reform expenses of 1.4 billion yen. *3 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.” 11
  12. 12. Business Results for FY2011 Breakdown of Sales for Three Months (January - March, 2012)1. Construction, mining & utility equipment (sales by region) Billions of yen Jan. – Mar., 2011 Jan. – Mar., 2012 vs. Jan. – Mar., 2011 1USD = 82 yen 1USD = 80 yen 1EUR = 114 yen 1EUR = 106 yen Increase Change 1RMB = 12.5 yen 1RMB = 12.7 yen (decrease) % Japan 64.5 79.2 + 14.6 + 22.7 % Traditional North America 52.7 65.5 + 12.8 + 24.4 % Markets Europe 31.4 30.6 (0.7) (2.5) % Latin America 52.3 55.7 + 3.4 + 6.6 % CIS 19.6 22.5 + 2.8 + 14.7 % China 114.2 51.4 (62.7) (54.9) % Strategic Asia 68.5 84.0 + 15.4 + 22.5 % Markets Oceania 34.8 51.0 + 16.1 + 46.3 % Middle East 14.9 8.1 (6.8) (45.6) % Africa 15.4 25.7 +10.3 + 67.2 % Total 468.7 474.2 +5.4 + 1.2 % 2. Industrial machinery & others Billions of yen vs. Jan. – Mar., 2011 Jan. – Mar., 2011 Jan. – Mar., 2012 Increase Change (decrease) % Komatsu Industries Corp and others: Sheet-metal and press machines 14.4 13.4 (1.0) (6.9)% business Komatsu NTC Ltd. 42.8 22.4 (20.4) (47.7)% [Provided by wire saws] [31.3] [3.2] [(28.1)] [(89.8)%] GIGAPHOTON INC., Komatsu House Ltd., KELK Ltd., Defense Systems 18.2 25.8 + 7.6 + 41.8% Division and others Total 75.5 61.6 (13.9) (18.4)% 12
  13. 13. Business Results for FY2011 Construction, Mining & Utility Equipment: Causes for Difference in Sales and Segment Profit Sales Segment profit Jan.- Mar., 2011 vs. Jan.- Mar. 2012 Jan.- Mar., 2011 vs. Jan.- Mar. 2012Billions Billionsof yen of yen Foreign Sales Foreign Volume exchange exchange Selling difference Sales difference Fixed Production price & others rate difference in other rate difference in China markets difference costs costs difference + 1.1 (8.8) (63.4) + 77.9 (3.8) difference difference + 9.0 (2.0) (1.6) +5.6 +2.8 billion yen billion yen Positive factor Positive factors Negative factors Negative factors Jan.-Mar., 2011 Jan.-Mar., 2012 Jan.-Mar., 2011 Jan.-Mar., 2012 ¥82/USD ¥80/USD ¥82/USD ¥80/USD ¥114/EUR ¥106/EUR ¥114/EUR ¥106/EUR ¥12.5/RMB ¥12.7/RMB ¥12.5/RMB ¥12.7/RMB 13.7% Segment profit ratio 14.2% 13
  14. 14. Business Results for FY2011 Quarterly Sales and Operating Income Billions of yen Quarterly sales 606.8 604.4 541.1 533.2 494.1 491.6 462.6 431.4 427.6 447.1 412.6 442.2 379.0 357.9 320.4 325.5Exchange rates 08/1Q 08/2Q 08/3Q 08/4Q 09/1Q 09/2Q 09/3Q 09/4Q 10/1Q 10/2Q 10/3Q 10/4Q 11/1Q 11/2Q 11/3Q 11/4Q 1USD 105 yen 107 yen 95 yen 95 yen 97 yen 93 yen 90 yen 91 yen 91 yen 85 yen 82 yen 82 yen 81 yen 77 yen 78 yen 80yen 1EUR 165 yen 159 yen 126 yen 123 yen 133 yen 133 yen 133 yen 124 yen 115 yen 111 yen 110 yen 114 yen 118 yen 109 yen 105 yen 106yen 1RMB 15.2 yen 15.7 yen 13.9 yen 13.9 yen 14.2 yen 13.6 yen 13.2 yen 13.3 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 12.5y en 12.1 yen 12.3yen 12.7yen Billions of yen Quarterly operating income *2 *1 *2 Including adverse effects of 7.0 billion yen *1 Including structural reform expenses of 32.3 billion yen. from the earthquake disaster. 14
  15. 15. Business Results for FY2011 Construction, Mining & Utility Equipment: Quarterly Sales (To Outside Customers) by Region Billions of yen 534.0 516.1 468.7 474.2 Africa 435.3 405.2 418.3 Middle 411.4 378.4 382.0 383.2 East 358.4 Oceania 316.0 316.8 284.9 Asia 284.6 China CIS Latin America Europe North America JapanExchange rates 08/1Q 08/2Q 08/3Q 08/4Q 09/1Q 09/2Q 09/3Q 09/4Q 10/1Q 10/2Q 10/3Q 10/4Q 11/1Q 11/2Q 11/3Q 11/4Q 1USD 105 yen 107 yen 95 yen 95 yen 97 yen 93 yen 90 yen 91 yen 91 yen 85 yen 82 yen 82 yen 81 yen 77 yen 78 yen 80yen 1EUR 165 yen 159 yen 126 yen 123 yen 133 yen 133 yen 133 yen 124 yen 115 yen 111 yen 110 yen 114 yen 118 yen 109 yen 105 yen 106yen 1RMB 15.2 yen 15.7 yen 13.9 yen 13.9 yen 14.2 yen 13.6 yen 13.2 yen 13.3 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 12.5y en 12.1 yen 12.3 yen 12.7yen 15
  16. 16. Business Results for FY2011 Industrial Machinery & Others : Quarterly Sales and Segment ProfitBillionsof yen Quarterly salesExchange rates 08/1Q 08/2Q 08/3Q 08/4Q 09/1Q 09/2Q 09/3Q 09/4Q 10/1Q 10/2Q 10/3Q 10/4Q 11/1Q 11/2Q 11/3Q 11/4Q 1USD 105 yen 107 yen 95 yen 95 yen 97 yen 93 yen 90 yen 91 yen 91 yen 85 yen 82 yen 82 yen 81 yen 77 yen 78 yen 80yen 1EUR 165 yen 159 yen 126 yen 123 yen 133 yen 133 yen 133 yen 124 yen 115 yen 111 yen 110 yen 114 yen 118 yen 109 yen 105 yen 106yen 1RMB 15.2 yen 15.7 yen 13.9 yen 13.9 yen 14.2 yen 13.6 yen 13.2 yen 13.3 yen 13.4 yen 12.6 yen 12.4 yen 12.5 yen 12.5y en 12.1 yen 12.3 yen 12.7yenBillionsof yen Quarterly segment profit 16

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