04 29-13 komatsu results-q4-1

1

Business Results for FY2012 ended March 31, 2013

April 25, 2013

Mikio Fujitsuka Director and Senior Executive Officer, CFO

Komatsu Ltd.

- Net sales decreased by 4.9% from the previous fiscal year, to 1,884.9 billion yen. - Operating income decreased by 17.5% to 211.6 billion yen, and operating income ratio declined by 1.7 points to 11.2%.

Highlights of FY2012 ended March 31, 2013

FY2011 FY2012 [ ]:projection as of January 2013 Vs. FY2011 Net sales 1,981.7 bil yen [1,920.0 bil yen] 1,884.9 bil yen (4.9) % Operating income 256.3 bil yen [230.0 bil yen] 211.6 bil yen (17.5) % Operating income ratio 12.9 % 11.2 % (1.7) pts Net income* 167.0 bil yen [138.0 bil yen] 126.3 bil yen (24.4) % ROE 17.3 % 11.5 % (5.8) pts Net D/E ratio [Excl. consolidated retail finance subsidiaries]

0.56 [0.28]

0.49 [0.20]

+0.07 pts [+0.08 pts]

1. Sales and Profits 2

2. Review of two business segments * “Net income” is equivalent to “Net income attributable to Komatsu Ltd.” in accordance with the FASB Accounting Standards Codification (ASC) 810.

Construction, Mining & Utility Equipment Although demand for construction equipment increased in Japan and North America, overall demand remained sluggish, as mainly affected by delayed recovery in China. Demand for mining equipment dropped in coal mines in Indonesia, but demand in mines other than coal remained fairly firm albeit with some signs of slow down. As a result, both sales and segment profit declined form the previous fiscal year.

3. Cash dividends Annual cash dividends: 48 yen per share (Consolidated payout ratio: 36.2%) Interim dividend: 24 yen Year-end dividend: 24 yen* *To be proposed to the 144th ordinary general meeting of shareholders.

Industrial Machinery & Others Sales and segment profit decreased from the previous fiscal year reflecting sluggish demand for wire saws and an end to extraordinary demand for prefabricated shelters in Japan, while sales of large presses and machine tools remained steady.

(Annual cash dividends for FY2011:42 yen per share)

FY2011 results

USD1=JPY79.0 EUR1=JPY109.6 RMB1=JPY12.4

FY2012 projection (As of Jan., 2013) USD1=JPY82.0 EUR1=JPY106.0 RMB1=JPY13.0

FY2012 results

USD1=JPY82.5 EUR1=JPY106.6 RMB1=JPY13.2

vs. FY2011 results

Increase (decrease) % Change

Net sales 1,981.7 1,920.0 1,884.9 (96.7) (4.9)% - Construction, mining & utility equipment - Industrial machinery & others

[1,739.3] 1,744.2 [242.4] 251.1

[1,716.0] 1,720.0 [204.0] 210.0

[1,677.0] 1,679.5 [207.9] 216.2

[(62.2)] (64.6) [(34.4)] (34.8)

[(3.6)%] (3.7)% [(14.2)%] (13.9)%

- Elimination (13.6) (10.0) (10.8) 2.7 - Segment profit 258.6 233.0 214.0 (44.6) (17.3)% - Construction, mining & utility equipment - Industrial machinery & others

246.2 16.7

232.0 4.0

208.9 6.2

(37.3) (10.5)

(15.2)% (62.9)%

- Corporate & elimination (4.4) (3.0) (1.1) 3.2 - Other operating income (expenses) (2.3) (3.0) (2.4) 0 - Operating income 256.3 230.0 211.6 (44.7) (17.5)% Other income (expenses) (6.7) (8.0) (6.9) (0.2) - Net income before income taxes 249.6 222.0 204.6 (45.0) (18.0)% Net income * 167.0 138.0 126.3 (40.7) (24.4)%

Sales and Profits for FY2012 ended March 31, 2013 Both sales and profits decreased from the previous fiscal year, mainly affected by declined demand for equipment for use

in coal mines in Indonesia, as well as delayed recovery of demand in China and sluggish demand for wire saws. Meanwhile, demand for construction equipment in North America and Japan remained steady and that for mining equipment in mines other than coal remained fairly firm albeit with some signs of slow down.

13.1%

14.1% 6.7%

12.9%

3

% : Profit ratio [ ]: Sales after elimination of inter-segment transactions

* Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”

12.1%

13.5% 1.9%

12.0%

11.4%

12.4% 2.9%

11.2%

-4.8 -4.9 -3.5 -4.9 -2.7 -3.6 -2.9 -3.9 -3.0 -3.9 -3.0 -3.6 -2.9 -2.5 -2.1 -3.2

285.4 285.5 317.5 382.7 405.6 358.9 383.8 469.5 436.6 419.7 412.6 475.2 429.7 409.3 368.4

471.9 39.7 44.9

44.0

49.8 44.2 57.3 61.2

75.5 60.5 75.8 53.0

61.6 43.0 54.1

53.4

65.6

0

100

200

300

400

500

600

700

FY09/1Q 2Q 3Q 4Q FY10/1Q 2Q 3Q 4Q FY11/1Q 2Q 3Q 4Q FY12/1Q 2Q 3Q 4Q

Industrial Machinery & OthersConstruction, Mining & Utility EquipmentElimination

8.2 11.5

16.3

30.9

54.0 49.8 58.8 60.1

68.3 64.5 58.8 64.5

55.7 55.5

39.2

61.1

2.6% 3.5%

4.6%

7.2%

12.1% 12.1% 13.3%

11.1%

13.8% 13.1% 12.7% 12.1% 11.9% 12.1%

9.3% 11.4%

0

50

100


Operating income

Operating income ratio

Billions of yen

320.4 325.5 357.9 427.6 447.1

412.6 442.2 541.1 494.1 491.6 462.6

＊1

533.2 469.9 460.9

419.7

4

USD

EUR

RMB

09/1Q 09/2Q 09/3Q 09/4Q

96.8 yen 92.8 yen 90.1 yen 90.8 yen

133.5 yen 133.0 yen 132.6 yen 123.7 yen

14.2 yen 13.6 yen 13.2 yen 13.3 yen

10/1Q 10/2Q 10/3Q 10/4Q

91.3 yen 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

11/1Q 11/2Q 11/3Q 11/4Q

81.2 yen 77.1 yen 77.9 yen 79.8 yen

118.3 yen 108.7 yen 104.9 yen 106.3 yen

12.5 yen 12.1 yen 12.3 yen 12.7 yen

12/1Q 12/2Q 12/3Q 12/4Q

80.6 yen 78.7 yen 80.1 yen 90.7yen

104.6 yen 98.3 yen 103.5 yen 120.1yen

12.8 yen 12.4 yen 12.8 yen 14.6yen

Exchange rates

Quarterly Sales and Operating Income

Quarterly sales

Quarterly operating income Billions of yen

*1 Including adverse effects of 7.0 billion yen from the earthquake disaster.

534.4

Japan 17%

North America

17% Europe

6% Latin

America 15%

CIS 5%

China 7%

Asia 13%

Oceania 12%

Middle East 2%

Africa 6%

Japan 16%

North America

14% Europe

7% Latin America

12% CIS 5%

China 12%

Asia 18%

Oceania 9%

Middle East 2%

Africa 5%

251.5 286.3 292.7

184.5 237.8 276.4

104.4 120.6 100.3 202.2 205.2 259.2 59.5 79.7

89.4 334.2 201.3 119.9

252.9 319.4 218.0

121.6 161.8

193.0 42.8

36.4 29.6

61.5

90.4 98.0

0

500

1,000

1,500

2,000

2,500

FY2010 FY2011 FY2012

Africa

Middle East

Oceania

Asia

China

CIS

Latin America Europe

North America Japan

220.8 246.2

208.9

0

5

10

15

20

0

100

200

300

400

FY2010 FY2011 FY2012

14.1%

%

Breakdown (%) Segment profit Billions of yen

Sales by region (To outside customers)

JPY82.5/USD JPY106.6/EUR JPY13.2/RMB

% Japan North America Europe Latin

America CIS China Asia Oceania Middle East Africa Total

FY2011 +13.8% +28.9% +15.5% +1.5% +34.0% -39.8% +26.3% +33.1% -15.0% +46.9% +7.7%

FY2012 +2.2% +16.3% -16.8% +26.3% +12.2% -40.4% -31.8% +19.3% -18.6% +8.3% -3.6%

1,739.3

: Year-on-year growth ratio

-Sales decreased by 3.6% from the previous fiscal year, to 1,677.0 billion yen, as particularly affected by dropped demand in Indonesia and China, while demand for construction equipment was steady in North America and Japan and that for mining equipment in mines other than coal remained fairly firm albeit with some signs of slow down. -Segment profit decreased by 15.2% from the previous fiscal year, to 208.9 billion yen, and segment profit ratio declined by 1.7 points to 12.4%.

+7.7%


FY2011

1,677.0

(3.6)%

1,615.6

5

FY2012 13.6%


Construction, Mining & Utility Equipment: Sales by Region (to Outside Customers)and Segment Profit

Billions of yen

*Sales before elimination of inter-segment transactions

: Segment profit ratio

Year-on-year growth rate of sales by region

12.4%

Strategic Markets 60%

Traditional Markets

40%

Strategic Markets 63%

Traditional Markets

37%

246.2

208.9

0

50

100

150

200

250

300

FY2011 FY2012

Total: (37.3) billion yen Positive factors Negative factors

Billions of yen

12.4% 14.1%

(37.3) bil yen

Segment profit ratio

Foreign exchange

rate +6.7

Fixed costs (7.1)

Selling price +26.8

Volume difference & others

(63.7)

FY2011 vs. FY2012

[ Positive factors ] Selling prices : +26.8 bil yen Foreign exchange rates: +6.7 bil yen [ Negative factors ] Volume difference & others: (63.7) bil yen Fixed costs: (7.1) bil yen

Segment profit decreased by 37.3 billion yen from the previous fiscal year, although reduced volume of sales resulting from declined demand in Indonesia and China was partly compensated for by the positive factors of improved selling prices and foreign exchange gain.

6 Construction, Mining & Utility Equipment: Causes of Difference in Segment Profit



20.9

16.7

6.2

0

6

12

18

0

10

20

30

FY2010 FY2011 FY2012

%

Billions of yen

FY2011 FY2012 Changes

Increase (decrease) % change

Komatsu Industries Corp, etc. [total of press and sheet-metal machines]

46.6 54.1 7.5 16.2%

Komatsu NTC Ltd. [represented by wire saws]

108.8 [46.5]

77.3 [7.3]

(31.5) [(39.2)]

(29.0)% [(84.3)%]

Others [repesented by Gigaphoton ] * [represented by Komatsu House]

95.6 [14.6] [30.3]

84.7 [23.0] [16.3]

(10.8) [8.4]

[(14.0)]

(11.4)% [57.5%]

[(46.1)%]

Total 251.1 216.2 (34.8) (13.9)%

While sales remained steady for press and sheet-metal machinery, including large presses, as well as machine tools, both sales and profits decreased from the previous fiscal year, mainly affected by sluggish demand for wire saws and an end to extraordinary demand for prefabricated shelters in Japan.

238.3 251.1 216.2

0

100

200

300

FY2010 FY2011 FY2012

8.8% 6.7%

Segment profit ratio

7 Industrial Machinery & Others: Sales and Segment Profit

Sales Segment profit

Breakdown of sales

Machine tools (excl. wire saws)

Press and sheet-metal machines

Six-month sales Billions of yen

* A consolidated subsidiary since 2Q, FY2011.

2.9%

0

10

20

30

40

10/1H 10/2H 11/1H 11/2H 12/1H 12/2H

0

10

20

30

40

10/1H 10/2H 11/1H 11/2H 12/1H 12/2H

Billions of yen

Billions of yen

Billions of yen

Japan Japan Europe Europe

China China

Oceania Oceania

Others Others

North

America

North

America

100

200

300

400

500

600

Mar.31, 2012 Mar.31, 2013

-Total assets increased from March 31, 2012, mainly reflecting the Japanese yen’s depreciation and an increase of new contracts in North America and Oceania. -Revenues and pretax income were about the same level with the previous fiscal year.

423.0

8





Retail Finance Business

Consolidated retail finance subsidiaries Billions of yen 2. Revenues 1. Assets

Billions of yen

524.9

51.6 50.8

11.1 11.8

0

10

20

30

40

50

60

70

FY2011 FY2012

Revenues

Pretax income

Mar. 31, 2012 USD1=JPY82.2

EUR1=JPY109.8 RMB1=JPY13.1

Mar. 31, 2013 USD1=JPY94.1

EUR1=JPY120.7 RMB1=JPY15.2

Increase (decrease)

Cash & Deposits (incl. time deposits) [a] Accounts receivable (incl. long-term trade receivables) <Excl. those of consolidated retail finance subsidiaries> Inventories Tangible fixed assets Other assets

83.9 744.0

<397.5> 612.3 529.6 350.4

93.8 842.7

<414.3> 633.6 585.2 362.4

9.8 98.6

<16.7> 21.2 55.5 11.9

Total assets 2,320.5 2,517.8 197.3 Accounts payable 273.4 226.2 (47.1) Interest-bearing debt [b] 647.8 679.7 31.9 <Excl. those of consolidated retail finance subsidiaries> <336.9> <298.1> <(38.8)> Other liabilities 341.8 359.1 17.3 Total liabilities 1,263.0 1,265.1 2.0 [Shareholders’ equity ratio] Komatsu Ltd. shareholders’ equity

[43.5%] 1,009.6

[47.4%] 1,193.1

[+3.9 points] 183.4

Noncontrolling interests 47.7 59.5 11.7 Liabilities & Equity 2,320.5 2,517.8 197.3 Interest-bearing debt, net [b-a] 563.8 585.9 22.1 Net D/E ratio (excl. cash and interest-bearing debt of consolidated retail finance subsidiaries)

- Total assets increased by 197.3 billion yen from the previous fiscal year-end, mainly due to the Japanese yen’s depreciation. - Shareholders’ equity ratio improved by 3.9 percentage points from the previous fiscal year-end, to 47.4%. Net D/E ratio improved from the previous fiscal year-end to 0.49.

9

0.56

0.28

Consolidated Balance Sheets

: Net debt-to-equity ratio Billions of yen

0.49

0.20

＜Appendix＞

10

Billions of yen

Jan. – Mar., 2012 USD1 = JPY79.8

EUR1 = JPY106.3 RMB1 = JPY12.7

Jan. – Mar., 2013 USD1 = JPY90.7


Vs. Jan. – Mar., 2012 Increase

(decrease) % change

Net sales 533.2 534.4 1.1 0.2%

Construction, Mining & Utility Equipment

Industrial Machinery & Others [474.2] 475.2

[59.0] 61.6 [471.3] 471.9

[63.0] 65.6 [(2.8)] (3.2) [4.0] 3.9

[(0.6)%] (0.7) % [6.8%] 6.4 %

Elimination (3.6) (3.2) 0.4 - Segment Profit 67.0 62.9 (4.0) (6.1)% Construction, Mining & Utility Equipment

Industrial Machinery & Others 67.3

0.0 60.5

2.3 (6.7)

2.3 (10.0)%

- Corporate & elimination (0.3) 0.0 0.3 - Other operating income (expenses) (2.5) (1.8) 0.6 - Operating income 64.5 61.1 (3.3) (5.3)% Other income (expenses) (0.5) (2.0) (1.5) - Net income before income taxes 63.9 59.0 (4.9) (7.7)% Net income * 37.6 35.2 (2.4) (6.5)%

12.8%

3.7%

11.8%

11.4%

14.2%

0.1%

12.6%

12.1%

<Appendix> Sales and Profits for Three Months (January - March, 2013) 11

% : Profit ratio [ ]: Sales after elimination of inter-segment transactions

* Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”

Jan. - Mar., 2012 USD1 = JPY79.8


Jan. - Mar., 2013 USD1 = JPY90.7


Change Increase

(decrease) % Change

Traditional Markets Japan 79.2 84.2 5.0 6.3% North America 65.5 94.4 28.9 44.1% Europe 30.6 26.5 (4.1) (13.5)%

Strategic Markets

Latin America 55.7 63.5 7.7 14.0% CIS 22.5 23.8 1.2 5.5% China 51.4 36.9 (14.5) (28.2)% Asia 84.0 52.3 (31.6) (37.7)% Oceania 51.0 50.2 (0.7) (1.5)% Middle East 8.1 10.9 2.8 34.8% Africa 25.7 28.2 2.4 9.6%

Total 474.2 471.3 (2.8) (0.6)%

Mining equipment in total above 158.5 157.0 (1.5) (0.9)%

Billions of yen

<Appendix> Sales for Three Months (January - March, 2013)

Jan. – Mar., 2012 Jan. – Mar., 2013 Change Increase (decrease) % Change

Komatsu Industries Corp, etc. [total of press and sheet-metal machines] 13.4 20.7 7.3 55.1%

Komatsu NTC Ltd. [represented by wire saws]

22.4 [3.2]

20.7 [1.1]

(1.6) [(2.0)]

(7.4)% [(64.1)%]

Others [represented by Gigaphoton] [represented by Komatsu House]

25.8 [4.5] [7.1]

24.1 [7.5] [5.7]

(1.7) [2.9]

[(1.4)]

(6.7)% [64.6%]

[(20.2)%] Total 61.6 65.6 3.9 6.4%

1. Construction, Mining and Utility Equipment (Sales by region: To outside customers) 12

2. Industrial Machinery & Others Billions of yen

285.4 285.5 317.5 382.7 405.6

358.9 383.8 469.5 436.6 419.7 412.6

475.2 429.7 409.3

368.4

471.9

0

100

200

300

400

500

600


13

Quarterly sales

Quarterly segment profit

7.4 13.3

23.3 38.9

54.2 48.0 54.0 64.4 60.8 59.2 58.8

67.3 54.2 55.3

38.8

60.5

2.6% 4.7%

7.4%

10.2%

13.4% 13.4% 14.1% 13.7% 13.9% 14.1% 14.3% 14.2% 12.6% 13.5%

10.5% 12.8%

0

20

40

60

80

100

120


Segment profitSegment profit ratio

Billions of yen

Billions of yen

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

Exchange rates USD

EUR

RMB

09/1Q 09/2Q 09/3Q 09/4Q

96.8 yen 92.8 yen 90.1 yen 90.8 yen

133.5 yen 133.0 yen 132.6 yen 123.7 yen

14.2 yen 13.6 yen 13.2 yen 13.3 yen

10/1Q 10/2Q 10/3Q 10/4Q

91.3 yen 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

11/1Q 11/2Q 11/3Q 11/4Q

81.2 yen 77.1 yen 77.9 yen 79.8 yen

118.3 yen 108.7 yen 104.9 yen 106.3 yen

12.5 yen 12.1 yen 12.3 yen 12.7 yen

12/1Q 12/2Q 12/3Q 12/4Q

80.6 yen 78.7 yen 80.1yen 90.7yen

104.6 yen 98.3 yen 103.5yen 120.1yen

12.8 yen 12.4 yen 12.8yen 14.6yen

51.7 54.7 60.6 61.3 54.4 62.9 69.6 64.5 61.4 67.6 78.0 79.2 62.5 69.8 76.0 84.2

35.5 32.3 31.6 35.9 41.0 42.1

48.6 52.7 55.1 61.7

55.2 65.5

61.9 63.9 56.0

94.4

22.1 20.7 22.9 24.4 26.8 21.8

24.3 31.4 31.5 29.2 29.1

30.6

27.9 23.0 22.8

26.5

37.3 38.0 44.6

50.5 57.2 49.8 42.7

52.3 50.9 49.4 48.9

55.7

63.3 69.3 62.9

63.5

9.9 5.9 7.2

8.5 12.7 10.2

16.7

19.6 21.9 16.6 18.5

22.5 21.9

19.2 24.4

23.8

55.4 49.0

55.5

84.4

98.4

54.3

67.2

114.2

75.4 38.8 35.5

51.4

40.7 21.7 20.4

36.9

31.6 35.6

45.9

55.5

63.1

61.0

60.2

68.5

74.8

81.0 79.4

84.0

78.5

52.4 34.7

52.3

22.7 27.3

27.5

35.4

29.8

27.8

28.9

34.8

34.2

37.9 38.5

51.0

44.3

54.8

43.5

50.2

5.6 6.9

7.4

12.1

9.4

11.8

6.6

14.9

11.0

10.0 7.2

8.1

5.2

9.0

4.4

10.9

12.5 13.9

13.2

13.5

11.9

16.2

17.9

15.4

18.5

25.6 20.5

25.7

22.4

25.1

22.2

28.2

0

100

200

300

400

500


Billions of yen

284.6 284.9 316.8

382.0 405.2

358.4 383.2

468.7

435.3 418.3 411.4

474.2

428.9 Africa

Middle East

Oceania

Asia

China

CIS

Latin America

Europe

North America

Japan

408.7

367.9

14 <Appendix>

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

Exchange rates USD

EUR

RMB

09/1Q 09/2Q 09/3Q 09/4Q

96.8 yen 92.8 yen 90.1 yen 90.8 yen

133.5 yen 133.0 yen 132.6 yen 123.7 yen

14.2 yen 13.6 yen 13.2 yen 13.3 yen

10/1Q 10/2Q 10/3Q 10/4Q

91.3 yen 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

11/1Q 11/2Q 11/3Q 11/4Q

81.2 yen 77.1 yen 77.9 yen 79.8 yen

118.3 yen 108.7 yen 104.9 yen 106.3 yen

12.5 yen 12.1 yen 12.3 yen 12.7 yen

12/1Q 12/2Q 12/3Q 12/4Q

80.6 yen 78.7 yen 80.1yen 90.7yen

104.6 yen 98.3 yen 103.5yen 120.1yen

12.8 yen 12.4 yen 12.8yen 14.6yen

471.3

39.7 44.9 44.0 49.8 44.2 57.3 61.2

75.5 60.5

75.8

53.0 61.6

43.0 54.1 53.4

65.6

0

25

50

75

100


Quarterly sales

Quarterly segment profit

2.8

0.7 -1.3 0.7 2.0

4.0

7.2 7.5 8.8

6.2

1.5 0

2.3 0.9 0.5

2.3

7.2%

1.8%

-3.2%

1.5%

4.6% 7.2%

11.9% 10.0%

14.6%

8.3%

3.0% 0.1%

5.5%

1.7% 1.0% 3.7%

-5

0

5

10

15


Segment profitSegment profit ratio

15 <Appendix>

Industrial Machinery & Others: Quarterly Sales and Segment Profit

Billions of yen

Billions of yen

Exchange rates USD

EUR

RMB

09/1Q 09/2Q 09/3Q 09/4Q

96.8 yen 92.8 yen 90.1 yen 90.8 yen

133.5 yen 133.0 yen 132.6 yen 123.7 yen

14.2 yen 13.6 yen 13.2 yen 13.3 yen

10/1Q 10/2Q 10/3Q 10/4Q

91.3 yen 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

11/1Q 11/2Q 11/3Q 11/4Q

81.2 yen 77.1 yen 77.9 yen 79.8 yen

118.3 yen 108.7 yen 104.9 yen 106.3 yen

12.5 yen 12.1 yen 12.3 yen 12.7 yen

12/1Q 12/2Q 12/3Q 12/4Q

80.6 yen 78.7 yen 80.1yen 90.7yen

104.6 yen 98.3 yen 103.5yen 120.1yen

12.8 yen 12.4 yen 12.8yen 14.6yen

04 29-13 komatsu results-q4-1

Technology