For Fiscal 2017 (April 1, 2017 – March 31, 2018), consolidated net sales increased by 38.7% from FY2016, to JPY2,501.1 billion, supported by expanded sales of the construction, mining and utility equipment business, especially in North America, China and Asia, as well as the new addition of Joy Global Inc. (currently, Komatsu Mining Corp.) as a consolidated subsidiary in 2017. Operating income expanded by 56.0% to JPY271.5 billion.
In FY2018, the final year of the ongoing three-year, mid-range management plan, “Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary and Beyond”, we will continue to make diligent efforts in the three strategies of Growth Strategies Based on Innovation, Growth Strategies of Existing Businesses, and Structural Reforms Designed to Reinforce the Business Foundation.
In 2021, we are going to celebrate our 100th anniversary. Komatsu, founded in today’s Komatsu City, Ishikawa Prefecture in 1921, has grown to become a Japan-based global company by committing itself to Quality and Reliability. For us to regard this anniversary as a milestone for sustainable growth into the future, we need to not only learn from the past but also look for management directions from a standpoint which is a lot longer term than ever before.
In emerging countries, we can look forward to growing infrastructure developments, such as roads, railways and water supply and sewerage systems, reflecting expanding population and accelerating urbanization. In developed countries, we can expect urgent needs to maintain the aging infrastructure while labor shortage will be getting more serious. As we are facing climate change, the reduction of environmental impact has become a more critical social issue.
We believe our business of construction and mining equipment is a long-term growth industry. To look for long-term, sustainable growth in this core business of ours, we need a scenario which enables our financial growth, as we respond to not only customers’ needs, but also to social problems and requests at a high level, that is, with products, services and solutions equipped with totally new values.
Of all social issues, safety might come first. In the Komatsu Group, safety comes first. Even before becoming president, I have consistently emphasized the priority of SLQDC (Safety, Law, Quality, Delivery and Cost), when we decide on things. This order of priorities applies to all workplaces, including our production floors, suppliers and distributors.
When talking with many customers, I always feel their solid determination to achieve Zero Accidents in business. Jobsite safety is an essential value of all companies that they should achieve themselves, and for us it is also a shared value with society, which we must first provide to customers through our core business.
By creation of customer value, we mean that we go inside customers’ jobsites, define what their jobsite operations of the future should be, identify real jobsite tasks through constructive communication with customers, and work to solve problems together with customers by making full use of our resources, including products, service and solutions.
By taking full advantage of ICT with our Autonomous Haulage System and SMARTCONSTRUCTION, for example, we can “visualize” jobsite information. Then we can discuss the data together with customers by asking ourselves the “whys” in order to define the ideal conditions that customers are working to achieve in the long range (what they should be like in the future) and to identify real tasks or differences from their ideal conditions of the future. These real tasks become “visible”, including not only safety (Zero Accidents) and improved productivity and efficiency, but also labor shortage, environmental protection, maintenance of biodiversity, sharing of the future with local communities, and improvement of diversity. Together with customers, we will place priority on these tasks and work to solve them.
As we deepen discussions with customers and build on improvements for real tasks, I believe it’s possible for us to spiral up solutions for social problems and customer value.
The cornerstone of our management principles is to maximize our corporate value through commitment to Quality and Reliability. We believe our corporate value is the total sum of trust given to us by society and all our stakeholders. I will ensure all employees share The KOMATSU Way. Further, we will become aware of environmental, social and governance issues more keenly than before, as we work to improve our business performance and move forward in developing corporate strengths while achieving social responsibility in a well-balanced manner.
On behalf of the Board, I would like to extend my sincere appreciation to all our stakeholders for your continuing support.
In the construction, mining and utility equipment business, demand increased in all regions of the world, centering on North America, China and Asia, in FY2017. Demand for mining equipment expanded by 60% from FY2016, driven by thriving demand for medium-sized and small models. In addition to capitalizing on these market conditions in FY2017, we benefited from the addition of Komatsu Mining Corp. (KMC) (the former Joy Global Inc.) as a new consolidated subsidiary. As a result, FY2017 consolidated net sales advanced by 38.7% from FY2016, to JPY2,501.1 billion. Operating income for FY2017 improved by 56.0% to JPY271.5 billion, reflecting expanded sales volume which more than offset the temporary expenses associated with the acquisition of Joy Global Inc. (currently, Komatsu Mining Corp.). Operating income ratio also improved to 10.9%.
We are projecting consolidated net sales for FY2018 will total JPY2,503.0 billion, remaining about flat from FY2017, due to the Japanese yen’s appreciation. Operating income should increase by 24.8% from FY2017, to JPY339.0 billion for FY2018, reflecting a substantial decline of temporary expenses associated with the acquisition of Joy Global Inc. (currenlty, Komatsu Mining Corp.).
We are predicting that demand will also remain strong, centering on Strategic Markets in FY2018 However, due to the Japanese yen's appreciation.
In the construction, mining and utility equipment business, we are projecting that demand will stay fairly strong in FY2018, centering on Strategic Markets. Nevertheless, the future of global economies remains uncertain, requiring us to closely monitor market conditions of emerging and resource-rich countries, in particular.
In the current mid-range management plan, we have set goals for growth, profitability, efficiency, profit redistribution to shareholders, financial soundness, and ROA and net debt-to-equity ratio in the retail finance business. With respect to growth, consolidated net sales for FY2017 expanded by 34.8% from FY2015, the preceding fiscal year of the current mid-range management plan. Concerning profitability, operating income ratio for FY2018 should improve by 2.3 points from FY2015, to 13.5%. With respect to ROE, it was 12.1% for FY2017, achieving the goal of 10%. Concerning profit redistribution to shareholders, we increased annual dividend per share by JPY26 for FY2017 from FY2015. For FY2018, we are planning to increase annual dividend per share by JPY38 from FY2015 to JPY96.
All in all, I believe we made good progress in the second year of the three-year plan.
| Target | FY2016 | FY2017 | FY2018 | ||
|---|---|---|---|---|---|
| Index | Results | Results | Plan | ||
| Growth | Aim at a growth rate above the industry’s average. | Growth rate of sales | (2.8%) | 38.7% | 0.1% |
| [VS FY2015] | [34.8%] | [34.9%] | |||
| Profitability | Aim at an Industry’s top-level operating income ratio. | Operating income ratio | 9.7% | 10.9% | 13.5% |
| Efficiency | Aim at 10%-level ROE. | ROE | 7.3% | 12.1% | 13.4% |
| Shareholder return |
Keep a fair balance between investment for growth and shareholder return (incl. stock buyback), while placing main priority on investment. Set the goal of a consolidated payout ratio of 40% or higher, and maintain the policy of not decreasing dividends as long as the ratio does not surpass 60%. |
Consolidated payout ratio | 48.2% (Dividend: JPY58) |
40.3% (Dividend: JPY84) |
40.1% (Dividend: JPY96) |
| Financial position |
Aim at industry’s top-level financial position. | Net D/E ratio | 0.18 | 0.40 | ー |
| Retail finance business |
ROA: 2.0% or above | ROA | 0.7% | 1.9% | ー |
|---|---|---|---|---|---|
| 5.0 or under for net D/E ratio | Net D/E ratio | 3.65 | 3.50 | ー |
Growth strategies based on innovation are one of three management strategies in the ongoing mid-range management plan. In this undertaking, we are working to expand our business domain by providing products, services or solutions with new values which take full advantage of ICT (Information and Communication Technology) and IoT (Internet of Things) benefits.
To substantially improve the safety, environmental impact and productivity of customers' jobsite operations, our SMARTCONSTRUCTION and Autonomous Haulage System (AHS) have achieved automation and unmanned operation of machines by using cutting-edge ICT benefits.
Looking ahead, we are accelerating the speed of developing next-generation components designed for use in our future products, services and solutions. We are also developing next-generation KOMTRAX.
The cumulative number of SMARTCONSTRUCTION-deployed jobsites in Japan have steadily grown, surpassing 5,500.
In July 2017, NTT DOCOMO, Inc., SAP Japan Co., Ltd., OPTiM Corporation and Komatsu agreed to jointly operate LANDLOG, an ICT platform to collect and centrally manage data of the entire production processes of construction. To expand the business into the future, the four partners have also established LANDLOG Ltd., which is working very hard to strengthen collaboration with venture and other entities equipped with cutting-edge ICT, including “visualization” of jobsite information, virtual reality and AI (Artificial Intelligence).
Back in 2005, we began trial operations of our Autonomous Haulage System (AHS) at Codelco's copper mine in Chile, and succeeded in achieving the world's first commercial deployment of AHS with Codelco in January 2008. January 2018 marks the 10th anniversary. As of December 31, 2017, there were over 100 AHS trucks operating around the clock, hauling iron ores, copper and coal, in six mines in Australia, Chile and Canada.
Ongoing integration of the former Joy Global Inc. [currently, Komatsu Mining Corp. (KMC)]. which we acquired in April 2017, is the most important task for growth strategies of existing businesses. (Visit the column for more information.)
We have also been focusing our efforts to develop new products, including DANTOTSU products, expand the value chain business, further reinforce our operations in Asia, and strengthen our presence in markets for application-specific machines, such as the aggregate and cement sector, as well as forestry.
It's been a little more than a year since Komatsu Mining Corp. (KMC) joined the Komatsu Group in April 2017.
Placing top priority on never lowering our service standards for customers, we, KMC and Komatsu, have converged our capital, intellectual and human resources, generating synergy effects. Two partners have also worked to maximize the value of solutions based on mining equipment under P&H, Joy, Montabert and KOMATSU brands.
In September 2017, we embarked on sales of medium-sized “PC200-11” and “PC200i-11” intelligent Machine Control hydraulic excavators, both compliant with the Act on Regulation, Etc. of Emissions from Non-Road Special Motor Vehicles of 2014, the so-called “Off-Road Vehicle Act” (Tier 4 Final in the United States). New products have the feature of outstanding reduction of NOx emissions while achieving a high level of productivity and fuel economy. We have been working to develop the new models which feature refined environmental performance, safety and ICT applications.
PC200-11 model (left) and ICT-intensive PC200i-11 (right), both launched in Japan in September 2017. Both models adopt the new diesel engine exhaust aftertreatment system for construction equipment, enabling an outstanding reduction of NOx and particulates emissions. By optimizing controls of body units and adopting an automatic cutoff function of idling, they also achieve a high level of both productivity and fuel economy.
For forklift trucks, we have worked to develop and introduce models with unique features, such as the electric FE Series which can be deployed in demanding jobsites, where it’s been impossible for conventional electric models.
In the industrial machinery business, Komatsu Industries Corp., a wholly owned subsidiary, launched sales of the “H2FM630” Servo press in March this year. Equipped with a water-cooled, high-torque servomotor and a large-capacity capacitor storage system, the H2FM630 achieves outstanding improvements in productivity and environmental performance, compared to conventional presses.
FE25 Electric Forklift: FE-Series electric forklift trucks not only adopt easy-maintenance batteries and Komatsu-original rapid charging system, but also feature excellent water and dust-proof designs. As a result, FE-Series models can be used for handling heavy objects in demanding outdoor and dusty environments, where internal combustion models have conventional advantages over electric counterparts.
Since their market introduction in 2014, the FE-Series models have been appreciated by customers for their superior environmental performance, operator comfort and low running costs, the innate advantages of electric models, even when they are used in challenging environments for electric models.
“H2FM630” Servo press is equipped with a water-cooled, high-torque servomotor, which features excellent cooling efficiency, and achieves the industry’s top-level productivity. Komatsu Industries has also developed a new large-capacity capacitor storage system for presses, based on performance-proven capacitors used in hybrid hydraulic excavators, and has installed in this press as a standard feature. The capacitor reduces both electric power capacity and consumption down to the level of mechanical presses.
Through reinforcement of the value chain business, we work to ensure no machine downtime and create higher added value for customers, as we offer retail finance, parts, attachments, service, and rental to used equipment in the lifecycle of our products from customers' purchase to disposal or trade-in. These efforts range greatly from an expanded product mix of high value-added parts and products to maintenance service contracts designed to cut down total costs. Nevertheless, the most important is the human resource development of sales and service distributors. We are working to expand and strengthen our training efforts.
We are advantageously positioned in emerging markets in Asia, and we can expect continuing growth into the future. To further enhance our market presence, we are continuing our efforts to develop and launch Strategic Markets-specific models with excellent robustness*, expand the value chain business, and strengthen distributors. As part of such efforts, we established the Asia Development Center in Indonesia in October 2016. In Thailand, the Asia Training & Demonstration Center started training of distributors in November 2016.
In the forest machine business, we have engaged in aggressive M&As in 2018, that is, Quadco and Southstar forestry attachment operations of a Canadian manufacturer of forestry attachments, and Oryx Simulations Verklighetsmodeller, equipped with advanced simulation technologies of forest machine operations. We are also continuing efforts to accelerate our global presence in the aggregate and cement and other sectors.
We have consistently worked to improve production costs and maintain an appropriate level of fixed costs through continuous TQM* and other efforts. We are promoting KOM-MICS (Komatsu Manufacturing Innovation Cloud System) which networks not only our plants but also with our suppliers by taking full advantage of IoT (Internet of Things) and “visualizes” information concerning facilities and machining, and this information is analyzed by our Manufacturing Engineering Development Center to improve manufacturing processes. By connecting all processes on a real-time basis through IoT, we are working to eliminate wasteful operations in production as we team up with our suppliers on a global basis.
In our reforms of spare parts operation, we have built the model Spare Parts Center in Tochigi Prefecture, which features logistic and process know-how of our production and latest ICT technologies. By applying features of this model facility to other facilities around the world, we are working to improve the global supply of parts and to reduce logistic costs and inventories at the same time.
Concerning non-manufacturing-related areas, Komatsu Construction Equipment Sales and Service Japan Co., Ltd., Komatsu Rental Ltd. and Komatsu Forklift Japan Ltd., merged to establish Komatsu Customer Support Japan Ltd. on April 1, 2018. In addition to strengthening its responses to diversifying corporate responsibilities in legal, finance and other affairs, the new company is working for sustainable growth in the matured Japanese market.
Human resource development is an important matter for us. We are continuing efforts to strengthen human resource development on a global scale and promote diversity.
With KMC as a new member of the Komatsu Group, employees with foreign citizenships have grown to account for 67% of total Komatsu Group employees. Accordingly, promotion of The KOMATSU Way, the foundation of our management, has become an urgent task. In addition to The KOMATSU Way training programs, which we have conducted at major overseas subsidiaries, we are revising The KOMATSU Way booklet with contents which are easy for foreign colleagues to understand.
Since the 1990s, we have made diligent efforts in environmental, social and governance issues, responding to social issues through our business activities in which we have engaged for the goal of enhancing stakeholders’ trust in us. The ongoing mid-range management plan, which we developed in 2016, is based on The KOMATSU Way, and includes strengthening and promoting engagement in ESG issues.
Concerning environmental protection in the ongoing mid-range management plan, we have been making efforts to reduce CO2 emissions and promote efficient use of resources by innovating jobsites where our construction equipment is in use or production, thereby working to enhance stakeholders’ trust in us. In our environmental conservation efforts, we “visualize” our environmental impact in all business activities and will continue to lower it in the mid to long ranges.
With respect to CO2, which affects climate change, CO2 emissions during machine use account for about 90% of the total lifecycle emissions of construction equipment. This percentage of CO2 emissions parallels fuel consumption. We are promoting dual efforts to lower environmental impact and streamline customers’ work efficiency through three perspectives of 1) development of excellent fuel-economy products, 2) studies of energy-saving machine operation methods and 3) outstanding improvement of construction efficiency using automation and unmanned operation of machines.
We have defined the following three CSR themes of 1) Enhancing Quality of Life, 2) Developing People, and 3) Growing with Society. In addition to making CSR efforts through our business activities, we also make social contribution efforts by utilizing our strengths, thereby fulfilling our corporate social responsibility. Our main CSR efforts include removal of anti-personnel landmines mainly in Cambodia. In Cambodia, 2018 marked the 10th anniversary of our efforts there, having reconstructed communities, including eight elementary schools. We also provide technical training programs in South Africa, Peru and some other countries, thereby increasing employment opportunities for trainees and leading to the social and economic growth of local communities. Some of the graduates are employed by our local companies, becoming important resources to support our local operations.
We, at Komatsu, believe that our corporate value is the total sum of trust given to us by society and all our stakeholders. To become a company further trusted by our shareholders and all other stakeholders, we are strengthening our group-wide corporate governance and working to improve management efficiency, instill corporate ethics and secure management soundness.
We position the Board of Directors as the core of corporate governance. To enhance the effectiveness of the Board, we have made efforts to strengthen and improve our corporate governance, including the establishment of the Audit & Supervisory Board in 1994, issuance of “Komatsu’s Worldwide Code of Business Conduct” and the establishment of the Compensation Advisory Committee.
Since 1999 when we adopted the Executive Officer System, we have worked to clearly separate, within the limits of the laws and regulations, the management decision-making and supervisory functions from the executive function. To enhance the effectiveness of the Board, we have also reduced the number of Board members and invited Outside Directors and Auditors. We have made efforts to reform the operation of Board meetings so that Board members can engage in thorough discussions of important agendas and quick decision making.
In April 2018, based on the deliberations and report by the Compensation Advisory Committee, we adopted the Restricted Stock Compensation System for the remuneration of the Directors, excluding Outside Directors, in order to link them more closely to the Company’s performance and further contribute to the enhancement of the medium- and long-term corporate value of the Company. At the same time, we also introduced the performance-based remuneration that will reflect the degree of achievement of the targets set in the mid-range management plan.
To further enhance our transparent management for our shareholders and investors, we are working to ensure fair and timely information disclosures and make active IR efforts, such as regional meetings with individual shareholders and IR meetings with investors and securities analysts.
We are making efforts to understand and solve mid- to long-range issues as we engage in constructive discussions with a wide range of our stakeholders, such as customers, shareholders and investors. Concerning global warming, one of these issues, we have led our competitors by not only developing products, services and solutions, which feature excellent environmental performance, but also by continuing efforts to reduce environmental impact in all stages of our business, including development, production, logistics, sales and service. As the world is recently paying keen attention to trends which are carbon-free and moving-away-from fossil fuels, we are reassessing how a mid- to long-range projection of coal mining will affect our business as one of our mid- to long-range issues, as well as how to reduce the environmental impact in our business.
Coal, widely distributed, especially throughout the Asia Pacific Basin, is not only an indispensable energy source for people’s daily life in emerging countries, but also has an extremely important implication as a financial source, supporting economic growth of coal-exporting countries. With respect to the possibility of replacing coal with renewable energy in the future, we need to keep om monitoring closely, because it’s related to complicated factors, such as technological advancement and costs. We believe that demand for coal will remain at a specified level without plunging, for the time being, as the world works to incorporate new technologies which feature a lower environmental impact from coal consumption.
Today, our dump trucks and mining shovels are also deployed in mines for minerals other than coal, such as iron, copper, gold, cobalt, and rare-earth. As a result of acquiring Komatsu Mining Corp. (the former Joy Global Inc.) in FY2017, we have become able to also offer underground mining machines to customers, who are going deeper for copper and other minerals. More importantly, we are working to help customers reduce CO2 emissions in their mining of resources needed by society, as we provide products capable of efficiently mining coal and all other minerals as well as solutions, such as AHS.
As the shift to renewable energy continues, demand should increase for a wide variety of minerals. We are going to strengthen our business in order to offer mining equipment solutions with safer, more productive and smaller environmental impact, and working for further business growth.
Committed to reduce CO2 emissions in all stages of our product lifecycle, ranging from development, procurement, production, machine use, and disposal, we have also set the goal of reducing CO2 emissions per work performance from our machines in use in the ongoing mid-range management plan. Concerning the machines made in FY2017, they have achieved 7.4% reduction in CO2 emissions compared to those machines in FY2007, the base year. When they are used for one year, we will reduce 210,000 tons of CO2 per machine.
Electrification is one of our next-generation technologies. We led the world in commercializing hybrid hydraulic excavators in 2008, and since then have promoted in-house development and production of hybrid motors and other electric components. With respect to mining equipment, we have conventionally offered electric motor-drive dump trucks and shovels. In the area of utility equipment, we have developed new electric forklift trucks capable of replacing internal combustion models and are working to expand their sales.
As we look ahead, we are not only accelerating the speed of developing environment-friendly products, but we’re also making more efforts to develop new service solutions which reduce fuel consumption and CO2 emissions by dynamically improving work efficiency.
For FY2017 (April 1, 2017 – March 31, 2018), consolidated net sales totaled JPY2,501.1 billion, up 38.7% from the previous fiscal year, partly reflecting the benefits of including Joy Global Inc. (currently, Komatsu Mining Corp.) as a new consolidated subsidiary. We acquired this leading manufacturer of mining equipment in the United States in April 2017. With respect to profits, operating income expanded by 56.0% to JPY271.5 billion, and the operating income ratio improved by 1.2 percentage points to 10.9%. Net income attributable to Komatsu Ltd. totaled JPY196.4 billion, up 73.2%.
In addition to steadfastly capturing demand in China, Indonesia and many other countries, we also acquired Komatsu Mining Corp. As a result, sales of the construction, mining and utility equipment business expanded by 44.7% from the previous fiscal year, to JPY2,280.9 billion. Segment profit reached JPY275.9 billion, an increase of 70.7% from the previous fiscal year, supported by expanded sales around the world, more than offsetting temporary expenses incurred in relation to the acquisition of Joy Global Inc.
Revenues advanced by 22.8% from the previous fiscal year, to JPY60.3 billion, mainly supported by increased assets in North America. Segment profit climbed by 191.1% to JPY12.9 billion, mainly reflecting no more allowance for doubtful accounts recorded in China.
Sales decreased by 2.9% from the previous fiscal year, to JPY185.4 billion, as affected by reduced sales of presses and wire saws as well as declined sales to Japan’s Defense Agency, while sales of machine tools to the automobile manufacturing industry increased. Segment profit improved by 16.0% to JPY14.4 billion.
| Komatsu Ltd. and Consolidated Subsidiaries | Millions of JPY (except per share amounts) | |||||
| FY2017 | FY2016 | FY2015 | FY2014 | FY2013 | ||
| For the fiscal period | ||||||
| Net sales | ￥2,501,107 | ￥1,802,989 | ￥1,854,964 | ￥1,978,676 | ￥1,953,657 | |
| Cost of sales | 1,765,832 | 1,286,424 | 1,315,773 | 1,401,193 | 1,393,048 | |
| Operating income | 271,581 | 174,097 | 208,577 | 242,062 | 240,495 | |
| Operating income ratio | 10.9% | 9.7% | 11.2% | 12.2% | 12.3% | |
| Income before income taxes and equity in earnings of affiliated | 291,807 | 166,469 | 204,881 | 236,074 | 242,056 | |
| Net income attributable to Komatsu Ltd. | 196,410 | 113,381 | 137,426 | 154,009 | 159,518 | |
| Capital investment | 145,668 | 142,006 | 160,051 | 192,724 | 179,070 | |
| At fiscal period-end | ||||||
| Total assets | ￥3,372,538 | ￥2,656,482 | ￥2,614,654 | ￥2,798,407 | ￥2,651,556 | |
| Working capital | 807,930 | 719,339 | 685,559 | 716,524 | 701,201 | |
| Property, plant and equipment | 740,528 | 679,027 | 697,742 | 743,919 | 667,347 | |
| Long-term debt-less current maturities | 480,698 | 190,859 | 212,636 | 279,270 | 311,067 | |
| Komatsu Ltd. shareholders' equity | 1,664,540 | 1,576,674 | 1,517,414 | 1,528,966 | 1,376,391 | |
| Shareholders’ Equity Ratio | 49.4% | 59.4% | 58.0% | 54.6% | 51.9% | |
| Per share data | ||||||
| Net income attributable to Komatsu Ltd. per share: Basic |
￥ 208.25 | ￥ 120.26 | ￥ 145.80 | ￥ 162.07 | ￥ 167.36 | |
| : Diluted | 207.97 | 120.10 | 145.61 | 161.86 | 167.18 | |
| Cash dividend per share* | 84 | 58 | 58 | 58 | 53 | |
| Komatsu Ltd. shareholders' equity per share | 1,764.58 | 1,672.01 | 1,609.69 | 1,622.48 | 1,443.97 | |
| * Cash dividend per share provided above are based on dividends paid each fiscal year. | ||||||
Sales grew from the previous fiscal year, supported by an increase of demand centering on the rental industry before the enforcement of new emission control regulations.
In the United States and Canada, demand for construction equipment increased from the previous fiscal year, centering on the infrastructure development and energy-related sectors. In Latin America, demand for construction equipment grew, especially in Argentina and Mexico. Affected also by the new addition of Komatsu Mining Corp. to consolidated accounting, sales in the Americas expanded sharply from the previous fiscal year.
In Europe, sales expanded sharply from the previous fiscal year, reflecting steady demand for construction equipment, especially in Germany, a major market of the region, and northern Europe. In CIS, sales also expanded sharply, driven by a continued increase in demand for mining equipment, especially in coal and gold mines.
Sales advanced substantially from the previous fiscal year. This was supported by the continued expansion of demand for construction equipment, resulting from the progress of infrastructure development nationwide.
In Asia, sales expanded sharply from the previous fiscal year, mainly reflecting a steady increase of demand for mining equipment in Indonesia, the largest market of the region, resulting from the growing price of coal. In Oceania, in addition to an increase in demand for mining equipment, sales increased substantially, as also affected by the addition of Komatsu Mining Corp. to consolidated accounting.
In the Middle East, sales increased from the previous fiscal year, mainly reflecting a recovering trend of market demand in some countries, offsetting negative effects of reduced budgets in Gulf nations in response to lowered crude oil prices. In Africa, sales advanced sharply, supported by an increase in demand for mining equipment in South Africa and benefits of newly adding Komatsu Mining Corp. to consolidated accounting.
| Name | Komatsu Ltd. |
| Head Office | 2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan |
| Date of Establishment | May 13, 1921 |
| Common Stock Outstanding | Consolidated: ¥67,870 million based on U.S. GAAP Non-consolidated: ¥70,120 million |
| Number of Employees | Consolidated: 59,632 (Komatsu Ltd. and 227 consolidated subsidiaries) Non-consolidated: 10,465 |
| Shares of Common Stock Issued and Outstanding | 971,967,660 shares (excluding 28,190 thousand shares of treasury stock) |
| Number of Shareholders | 149,459 |
| Number of Shares per Trading Unit | 100 |
| Securities Code | 6301 (Japan) |
| Stock Listings | Tokyo |
| Transfer Agent for Common Stock/Management Institution for Special Account | Mitsubishi UFJ Trust and Banking Corporation 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan |
| Depositaries (ADRs) | The Bank of New York Mellon 101 Barclay Street, New York, NY 10286, U.S.A. Tel: +1-(201)-680-6825 for international calls and 888-269-2377 (888-BNY-ADRS) for calls within U.S.A. URL: http://www.adrbnymellon.com Ticker Symbol: KMTUY |
| Name | Number of shares held (Thousands of shares) |
Shareholding ratio (%) |
|---|---|---|
| The Master Trust Bank of Japan, Ltd. (Trust Account) | 62,612 | 6.63 |
| Japan Trustee Services Bank, Ltd. (Trust Account) | 62,405 | 6.61 |
| Taiyo Life Insurance Company | 34,000 | 3.60 |
| JP MORGAN CHASE BANK 380055 (Standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) |
33,514 | 3.55 |
| State Street Bank and Trust Company (Standing proxy: The Hongkong and Shanghai Banking Corporation Limited, Tokyo branch) |
20,339 | 2.15 |
| Nippon Life Insurance Company (Standing proxy: The Master Trust Bank of Japan, Ltd.) |
18,638 | 1.97 |
| Japan Trustee Services Bank, Ltd. (Trust Account 5) | 18,451 | 1.95 |
| Sumitomo Mitsui Banking Corporation | 17,835 | 1.88 |
| Japan Trustee Services Bank, Ltd. (Trust Account 7) | 17,183 | 1.82 |
| STATE STREET BANK WEST CLIENT - TREATY 505234 (Standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) |
17,029 | 1.80 |
