business results for fy2019 - home.komatsu · 5/18/2020 · financial position • industry’s...
TRANSCRIPT
1
May 18, 2020
Hiroyuki Ogawa
Takeshi Horikoshi
Takuya Imayoshi
President and CEO
Senior Executive Officer and CFO
Executive Officer and General Manager of
Business Coordination Department
Business Results for FY2019(April 1, 2019 – March 31, 2020)
【Telephone conference】
Komatsu Ltd. Participants
2
Construction, Mining & Utility Equipment: Demand and Outlook for Seven Major Products (Global and By Region)
Construction, Mining & Utility Equipment: Mining Equipment
Construction, Mining & Utility Equipment: Parts
Contents
Highlights, Segment Sales and Profits for the Fourth Quarter (Jan.- Mar., 2020)
Highlights, Segment Sales and Profits for FY2019
Construction, Mining & Utility Equipment: Results for FY2019
Retail Finance: Highlights for FY2019
Industrial Machinery & Others: Highlights for FY2019
Consolidated Balance Sheets
Actual Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs
Ⅰ. Coronavirus (COVID-19) Effects on Komatsu Group’s Business <PP3-6>
Ⅲ. Business Results for FY2019 <PP10-21>
PP4-6:
Appendix <PP32-40>
PP34-37:
PP38-40:
PP23-28:
PP29-30:
P31:
Coronavirus (COVID-19) Effects on Komatsu Group’s Business
Quarterly Results
Book-to-Bill Ratio [Orders Received / Sales (6 Months)]
Ⅳ. Demand and Business Conditions <PP22-31>
PP11-13:
PP14-15:
PP16-17:
P18:
P19:
P20:
P21:
Ⅱ. Progress towards Mid-Term Management Targets <PP7-9>
PP8-9: Progress towards Mid-Term Management Targets
3
Ⅰ. Coronavirus (COVID-19) Effects on Komatsu Group’s
Business
4
・Employees, who are not directly engaged in production at plants, are teleworking, as a general rule.
・Employees, who are directly engaged in production at plants, are working after taking infection-preventive measures (fever checks, no use of
public transportation, and avoidance of crowded spaces, such as locker rooms). (Employees, engaged in administration, are teleworking as muchas possible.)
1. Efforts to prevent the spread of infections
As we at the Komatsu Group place top priority on the health and safety of our customers , local community residents and employees, we are
making our utmost efforts to prevent COVID-19 from spreading based on the policies of host governments of countries where we conduct business.
Coronavirus (COVID-19) Effects on Komatsu Group’s Business
Health m
anagement by em
ployees
Health management &
come-to-office criteria
・Banned to come to office, when you have a fever and/or feels sick.
・Banned to come to office, when family member sharing the same
house is infected, or you/family member has a close contact with the
infected.
Teleworking Expanding the scope of teleworking applicability
Commuting 【Plants】 Forbitten to use public transportation as a general rule.
Business
tripsInternal Totally banned (Japan ⇔ Overseas)
Domestic Suspended as a general rule (excl. requested by customer)
Events & trainings Komatsu Group-sponsored events, trainings and seminars: Cancelled
or suspended as a general rule
Use of
facilities
Cafeterias Limited to designated hours and change in the seating arrangement
Locker
rooms
【Plants】 Allowed to wear work uniform in commuting and reduce the
use of locker rooms
Hygiene measures, etc. Strengthen cleaning. Install hygiene (alcohol disinfectant) stations.
【Plants】 Wear face masks.
Avoidance
of3Cs
Hygiene
measures
(face masks, w
ashing hands, disinfectant, etc.)
Governm
entpolicies: Restraint on trans-prefectural travels,
boarder measures, etc.
Respond
according to
different
phases and
regions.
Employees’
safety and
peace of
mind
Sustainable
measures
Specific preventive measures
5Coronavirus (COVID-19) Effects on Komatsu Group’s Business
2.Effects on production
To absorb the effects of the changing market demand and foreign exchange rates, we have conventionallyengaged in global cross-sourcing and procurement of finished vehicles and parts. We are also promotingalternative procurement and inventory reallocation to minimize adverse effects on production, and we havenot experienced any problems in the supply chain.
<Main production bases with problems, such as halting operations>
<Main production bases which have already resumed operation>
With respect to production bases other than the above, they are in operation by not only complying with
the policies of concerned governments, but also taking infection-preventive measures.
【Assistance for suppliers】・To suppliers facing challenging management conditions, we are providing assistance in the forms of financing
and helping them to obtain the Japanese government subsidies for employment adjustment.
Region Base Conditions
Latin America Komatsu do Brasil Ltda. Halted production (April 6 -- 21). Resumed production on April 22.
Komatsu Italia Manufacturing S.p.A. Halted production (March 26 -- May 3). Resumed production on May 4.
Komatsu Germany GmbH Halted produciton (April 4 -- 13). Resumed production on April 14.
Komatsu Forest AB Halted production (April 13 -- May 1). Resumed production on May 2.
Komatsu Manufacturing Rus LLC Halted production (March 28 -- April 10). Resumed production on April 13.
China All plants Resumed production steadily since February 10. All plants on February 17.
Europe & CIS
Region Base Conditions
Europe Komatsu UK Ltd. Halting production (March 30 -- May 31)
Asia Komatsu India Pvt. Ltd. Halting production (March 24 -- May 17). To be resumed on May 18.
6
1) Customers’ work sites and machine operations
In the countries/regions where the governments have issued restrictions, we have seen some adverse effects, such as the
temporary suspension of business. Meanwhile, our customers engaging in construction, mining, agriculture, forestry and
transportation, which are regarded as essential business for the support of social infrastructure, are operating at their work sites.
We will continue to closely monitor KOMTRAX (Komatsu Machine Tracking System) data from customers’ machines in operation
and other pertinent information.
2) Sales and product support operations
Our distributors are working on the continuous supply of products, parts, and service to customers, as they reassess their supply
routes and shift work schedules while teleworking.
3) Retail finance
From some customers and distributors, we have received requests for extensions on their payments. We are meeting their requests
after learning about their specific conditions. With respect to cash management of Komatsu Group companies, they have secured
sufficient cash reserves and credit lines and have no problems as of today.
4) Sales
In the fourth quarter, we weathered significant effects in China, North America, Europe and Asia, including India, in the construction,
mining and utility equipment business. Similarly in the industrial machinery and others business, sales of presses and machine
tools in the automobile manufacturing industry were impacted. All in all, we believe the coronavirus pandemic caused a drop of
about JPY40 billion in sales.
5) Consolidated business results for the fiscal year ending March 31, 2021
It is still impossible to predict the end of the coronavirus (COVID-19) pandemic. Concerning the projection of consolidated business
results for the fiscal year ending March 31, 2021, it is difficult for Komatsu to make those calculations in an appropriate and rational
manner, so they remain undecided as of now. We will disclose them as soon as it becomes possible to calculate them in the future.
3. Effects on sales and business results
Coronavirus (COVID-19) Effects on Komatsu Group’s Business
7
Ⅱ. Progress towards Mid-Term Management Targets
8
8
Three strategies Specific efforts
1. Value creation
by means of
innovation
Achievements
in FY2019
• Deployed SMARTCONSTRUCTION at over 10,000 construction sites in Japan (cumulative).
• Announced the provision of digital transformation of SMARTCONSTRUCTION (started in April 2020) .
• Announced the introduction of add-on kits for hydraulic excavators, which enable 3D construction
(started in April 2020).
• Achieved 221 AHS dump trucks in operation.
• Acquired a mining machine operator training company (Immersive Corporation Pty Ltd).
• Exhibited an electric mini excavator at bauma2019 and launched it as rental model in Japan.
Tasks ahead• Facilitate overseas deployment of SMARTCONSTRUCTION.
• Develop new mining platforms.
• Develop automation, autonomy (self-supporting), electrification, and remote control technologies.
2. Growth
strategies based
on business
reforms
Achievements
in FY2019
• Integrated/consolidated business sites of Komatsu Mining Corp. (KMC) with ours.
• Launched models for aggregate and cement application.
• Conducted model change of hydraulic excavators for use in Strategic Markets.
• Launched hydraulic excavators equipped with the KomVision Human Detection & Collision Mitigation
System as a standard feature in Japan.
• Acquired a forest machinery maker (TimberPro) of the United States.
Tasks ahead
• Enhance market position of the underground hard rock mining equipment business.
• Launch next-generation KOMTRAX.
• Continue to promote value chain reforms to achieve lifecycle product support.
• Reform the industrial machinery business (expand synergy with the construction equipment
business and foster growth based on core technologies).
3. Structural
reforms for
growth
Achievements
in FY2019
• Promoted steady cost improvement efforts.
• Received the Prime Minister’s Award for our KOM-MICS, connecting manufacturing plants.
• Began construction of KMC’s new Milwaukee plant and Komatsu Forest’s new Umea plant.
Tasks ahead
• Promote reforms by deploying ICT・IoT.
• Promote continuous cost improvement efforts.
• Strengthen human resource development for global business and promote diversity of human
resources.
Progress Made in Efforts of Focus and Tasks in FY2020 and Onward
9
1,035.8 1,027.2 1,127.3 1,356.0
1,612.1
1,893.3
2,243.0 2,021.7
1,431.5
1,843.1 1,981.7 1,884.9 1,953.6 1,978.6
1,854.9 1,802.9
2,501.1 2,725.2
2,444.8
(13.2)23.9 29.8
95.8 163.4
244.7
332.8
151.9
67.0
222.9 256.3 211.6 240.4 242.0
208.5 174.0
268.5
397.8
250.7
-150
0
150
300
450
600
750
900
-500
0
500
1,000
1,500
2,000
2,500
3,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales
Operating income
Operating income ratio
-1.3%
2.3% 2.6%
7.1%10.1%
12.9%14.8%
7.5%4.7%
12.1% 12.9%11.2% 12.3% 12.2% 11.2%
9.7% 10.7%
14.6%
10.3%
126 121 113 108 114 117 114
101 93
85 79 85 100
110 121
109 111 111 109
60
90
120
150
Business Results and Progress towards Mid-Term Management Targets
Sales(Billions of yen)
Exchange rate(¥/USD)
Retail Finance• ROA: 1.5-2.0% ・ROA 1.5%
• 5.0 or under for net debt-to-equity ratio ・Net debt-to-equity ratio 3.80
Operating income(Billions of yen)
<Status of Progress Made in Management Targets>
TargetsFY2019 (1st year of Mid-Term Management Plan)
Index Result
Growth • Growth rate above the industry’s average ・Sales growth rate (10.3)%
Profitability • An industry’s top-level operating income ratio ・Operating profit ratio 10.3%
Efficiency • ROE of 10% or higher ・ROE 8.6%
Financial position • Industry’s top-level financial position. ・Net debt-to-equity ratio 0.43
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.・Dividend payout ratio 57.7%
ESG
・Reduction of environmental impact: CO2 emissions: Decrease by 50% in 2030 from 2010.
Renewal energy use : Increase to 50% of total energy use in 2030.・Evaluation by external organizations: Selected for DJSI *1 (World & Asia Pacific) and
CDP*2 A-list (Climate Changes and Water Security)
・ Reduction of
environmental impact・Evaluation by external
organizations
CO2: To reduce by 40% in 2021.Renewable energy use: 15% in 2021DJSI: SelectedCDP: Score of climate change: ACDP: Score of water security: A-
・Both sales and operating income decreased, as affected by declined demand in Strategic Markets, such as Asia, as well as the coronavirus pandemic.
10
Ⅲ. Business Results for FY2019
11Highlights of Business Results for the Fourth Quarter (Jan.- Mar., 2020)
Jan.-Mar., 2019
(A)
Jan.-Mar., 2020
(B)Changes (B-A)
increase
(decrease)
Change
%
Net sales 706.6 617.4 (89.2) (12.6)%
Segment profit 103.1 50.7 (52.3) (50.8)%
Other operating income (expenses) (1.1) (7.8) (6.7) -
Operating income 101.9 42.8 (59.0) (57.9)%
Profit ratio 14.4% 6.9% (7.5)pts. -
Other income (expenses) (2.4) (9.6) (7.2) -
Income before income taxes 99.4 33.1 (66.2) (66.6)%
Net income attributable to
Komatsu Ltd72.2 18.5 (53.7) (74.3)%
Billions of yen
¥108.1/USD¥120.0/EUR¥15.5/RMB
・ Consolidated net sales decreased by 12.6% from the corresponding period a year ago, to JPY617.4 billion.
・ Operating income declined by 57.9% to JPY42.8 billion. Operating income ratio was 6.9%, down 7.5 points.
・ Net income attributable to Komatsu Ltd. declined by 74.3% to JPY18.5 billion.
¥109.4/USD¥124.7/EUR¥16.2/RMB
12
■ Construction, Mining & Utility Equipment:Sales decreased from the corresponding period a year ago, as adversely affected by reduced sales volume and foreign exchange rates. Segment profit declined,
mainly due to reduced sales volume and a change in the geographic composition of sales.
・Construction, Mining & Utility Equipment: Sales decreased by 12.6% from the corresponding period a year ago, to JPY553.1 billion. Segment profit declined by 52.1%
to JPY44.4 billion. Segment profit ratio worsened to 8.0%, down 6.7 points.・Retail Finance: Revenues expanded by 3.3% from the corresponding period a year ago, to JPY17.9 billion. Segment profit declined by 59.6% to JPY1.7 billion.
・Industrial Machinery & Others: Sales decreased by 16.4% from the corresponding period a year ago, to JPY50.5 billion. Segment profit declined by 31.7% to JPY4.0
billion.
Segment Sales and Profits for the Fourth Quarter (Jan.- Mar., 2020)
Jan.-Mar., 2019
(A)
Jan.-Mar., 2020
(B)
Changes (B-A)
increase
(decrease)
Change
%
Net sales 706.6 617.4 (89.2) (12.6)%
Construction, mining & utility equipment
Retail finance
Industrial machinery & others
633.0[631.1]
17.4[15.5]
60.4[59.9]
553.1[551.5]
17.9[15.7]
50.5[50.1]
(79.9)[(79.5)]
+0.5[+0.1]
(9.9)[(9.7)]
(12.6)%[(12.6)%]
+3.3%[+1.0%](16.4)%
[(16.3)%]
Elimination (4.3) (4.3) +0.0 -
Segment profit 103.1 50.7 (52.3) (50.8)%
Construction, mining & utility equipmentRetail financeIndustrial machinery & others
92.84.35.9
44.41.74.0
(48.3)(2.6)(1.8)
(52.1)%(59.6)%(31.7)%
Corporate & elimination (0.0) 0.4 +0.5 -
% : Profit ratio
Billions of yen
[ ]: Sales after elimination of inter-segment transactions
14.6%
14.7%
25.2%
9.9%
■ Retail Finance:Revenues improved from FY2018, supported by increased average asset balance. Segment profit decreased, as mainly affected by no more reversal of
allowances for doubtful accounts, which was recorded in China for the FY2018, as well as allowances were for doubtful accounts related to mining accounts recorded for FY2019.
■ Industrial Machinery & OthersBoth sales and segment profit decreased, reflecting declined demand for machine tools in the automobile manufacturing industry.
Review of three business segments
8.2%
8.0%
9.9%
8.0%
(6.4)pts.
(6.7)pts.
(15.3)pts.
(1.9)pts.
13
※
Construction, Mining & Utility Equipment :
Sales by Region (To Outside Customers) for the Fourth Quarter (Jan.- Mar., 2020)
・Sales to outside customers decreased by 12.6% from the corresponding period a year ago, to JPY551.5 billion.
・Sales dropped sharply in Asia, North America and China.
・The ratio of sales in Traditional Markets increased to 51% of total sales.
Traditional Markets Strategic Markets
Plus
Minus
(79.5)[(12.6)%]
[(4.1)%]
[(36.9)%] [(1.2)%]
[+40.1%]
[(8.0)%]
[(28.6)%]
[(15.9)%]
[(16.0)%]
[(3.4)%]
[(2.8)%]
※ Region where sales increased, when foreign exchange effects were excluded.
551.5
Jan.-Mar.,2020
631.1
Jan.-Mar.,2019Vs. Jan.-Mar., 2019
Billions of
yenJapan
North
AmericaEurope
Latin
AmericaCIS China Asia Oceania
Middle
EastAfrica Total
Jan.-
Mar.,2019(a)87.6 164.4 60.9 80.7 32.6 46.0 72.9 51.5 7.0 27.0 631.1
Jan.-
Mar.,2020(b)84.6 138.1 59.2 77.4 27.4 32.9 45.9 50.9 9.9 24.8 551.5
Change
(b-a)(2.9) (26.3) (1.7) (3.3) (5.1) (13.1) (26.9) (0.6) +2.8 (2.1) (79.5) Japan Japan
North America North
America
Europe
Europe
Latin America
Latin America
CIS
CIS
China
China
Asia
Asia
Oceania
Oceania
Middle East
Middle East
Africa
Africa
0
100
200
300
400
500
600
Jan.-Mar., 2019 Jan.-Mar., 2020
Billions of yen
9%
1%
12%
13%
StrategicMarkets
50%
Traditional
Markets
50%
631.1
14%
5%
8%
10%
26%
7%
4%
5%2%
9%
6%
5%
8%
14%
11%
25%
15%
StrategicMarkets
49%
Traditional
Markets
51%
551.5
Effects of Foreign
exchange rate: (10.3) billions of yen
※ ※
14Highlights of FY2019 Business Results
・Consolidated net sales decreased by 10.3% from FY2018, to JPY2,444.8 billion.
・Operating income declined by 37.0% to JPY250.7 billion. Operating income ratio was 10.3%, down 4.3 points.
・Net income attributable to Komatsu Ltd. declined by 40.0% to JPY153.8 billion.
Changes (B-A)
Increase(Decrease)
Change%
Net sales 2,725.2 2,444.8 (280.3) (10.3)%
Segment profit 399.3 255.0 (144.3) (36.1)%
Other operating income (expenses) (1.5) (4.3) (2.7) -
Operating income 397.8 250.7 (147.0) (37.0)%
Profit ratio 14.6% 10.3% (4.3)pts. -
Other income (expenses) (20.3) (27.5) (7.2) -
Income before income taxes 377.4 223.1 (154.3) (40.9)%
Net income attributable to Komatsu Ltd 256.4 153.8 (102.6) (40.0)%
FY2018 Results
(A)
¥108.7/USD¥120.8/EUR¥15.6/RMB
ROE 14.7% 8.6% (6.1)pts.
Net D/E ratio 0.43 0.43 +0.0pts.
Cash dividends per share 110yen 94Yen (16)Yen
Consolidated payout ratio 40.5% 57.7%
Billions of yen¥110.6/USD¥128.5/EUR¥16.5/RMB
FY2019 Results
(B)
15
■ Construction, Mining & Utility Equipment:Sales decreased from FY2018, as adversely affected by reduced sales volume and foreign exchange rates. Segment profit declined, mainly due to reduced sales
volume and a change in the geographic composition of sales.
・Construction, Mining & Utility Equipment: Sales decreased by 10.8% from FY2018, to JPY2,211.2 billion. Segment profit declined by 37.8% to JPY227.3 billion. Segment
profit ratio worsened to 10.3%, down 4.4 points.・Retail Finance: Revenues expanded by 11.5% from FY2018, to JPY70.9 billion. Segment profit declined by 27.6% to JPY12.6 billion.
・Industrial Machinery & Others: Sales decreased by 12.6% from FY2018, to JPY177.5 billion. Segment profit declined by 26.5% to JPY13.7 billion.
Segment Sales and Profits for FY2019
FY2018
Results
(A)
FY2019
Results
(B)
Changes (B-A)
increase
(decrease)
Change
%
Net sales 2,725.2 2,444.8 (280.3) (10.3)%
Construction, mining & utility equipment
Retail finance
Industrial machinery & others
2,478.9[2,466.6]
63.5[57.3] 203.2
[201.2]
2.211.2[2,205.9]
70.9[62.9] 177.5
[175.9]
(267.7)[(260.6)]
+7.3[+5.5] (25.6)
[(25.2)]
(10.8)%[(10.6)%]
+11.5%[+9.8%](12.6)%
[(12.6)%]
Elimination (20.5) (14.8) +5.6 -
Segment profit 399.3 255.0 (144.3) (36.1)%
Construction, mining & utility equipmentRetail financeIndustrial machinery & others
365.317.518.6
227.312.613.7
(138.0)(4.8)(4.9)
(37.8)%(27.6)%(26.5)%
Corporate & elimination (2.0) 1.3 +3.4 -
% : Profit ratio
Billions of yen
[ ]: Sales after elimination of inter-segment transactions
14.7%
14.7%
27.5%
9.2%
10.4%
10.3%
17.9%
7.7%
■ Retail Finance:Revenues improved from FY2018, supported by increased average asset balance. Segment profit decreased, as mainly affected by no more reversal of
allowances for doubtful accounts, which was recorded in China for the FY2018, as well as allowances were for doubtful accounts related to mining accounts recorded for FY2019.
■ Industrial Machinery & OthersBoth sales and segment profit declined, due to reduced sales of presses and machine tools to the automobile manufacturing industry, as well as declined sales of Excimer laser-related products on the semiconductor market.
Review of three business segments
(4.3)pts.
(4.4)pts.
(9.6)pts.
(1.5)pts.
16
※
Construction, Mining & Utility Equipment :
Sales by Region (To Outside Customers) for FY2019
・Sales to outside customers decreased by 10.6% from FY2018, to JPY2,205.9 billion.
・While sales increased in Europe, those declined sharply especially in Asia, North America, China and Africa. As a result, total sales
declined. ・The ratio of sales in Traditional Markets increased to 50% of total sales.
Traditional Markets Strategic Markets
Plus
Minus
(260.6)[(10.6)%]
[(5.0)%]
[(39.3)%]
[(5.7)%]
[+1.2%]
[(20.8)%]
[(22.9)%]
[(5.4)%][(6.3)%]
[(0.6)%]
[+5.9%]
※ Region where sales increased, when foreign exchange effects were excluded.
2,466.6
FY2018
Vs. FY2018
Billions of
yenJapan
North
AmericaEurope
Latin
AmericaCIS China Asia Oceania
Middle
EastAfrica Total
FY2018(a) 312.7 612.2 207.5 325.6 134.6 164.8 339.0 215.6 30.2 124.1 2,466.6
FY2019(b) 310.8 573.5 219.7 309.2 127.4 127.0 205.7 203.3 30.6 98.2 2,205.9
Change
(b-a)(1.9) (38.6) +12.1 (16.3) (7.2) (37.7) (133.2) (12.2) +0.3 (25.8) (260.6)
Japan Japan
North America
North America
EuropeEurope
Latin America
Latin America
CISCIS
ChinaChina
Asia
Asia
Oceania
Oceania
Middle East
Middle East
Africa
Africa
0
500
1,000
1,500
2,000
2,500
FY2018 FY2019
Billions of yen
9%
1%
14%
13%
StrategicMarkets
54%
Traditional
Markets
46%
2,466.6
13%
5%
9%
8%
25%
7%
5%
4%
1%
9%
6%
6%
9%
14%
10%
26%
14%
StrategicMarkets
50%
Traditional
Markets
50%
2,205.9Effects of Foreign
exchange rate: (61.3) billions of yen
2,205.9
FY2019
※ ※
17
365.3
227.3
150
200
250
300
350
400
FY18 FY19
2,478.9
2,211.2
2,000
2,100
2,200
2,300
2,400
2,500
2,600
FY18 FY19
(267.7) billion yen
10.3%14.7%
(138.0) billion yen
Sales
FY2018 vs. FY2019
Segment profit
FY2018 vs. FY2019
Billions
of yen
Billions
of yen
Positive factor
Negative factorPositive factor
Negative factor
Volume
(227.3)
Selling
price
+12.2
Foreign
exchange rate
(63.0)Volume,
product mix,
etc.
(133.5)
Fixed costs
(6.3)
Selling
price
+12.2
Foreign
exchange
rate
(10.6)
Segment profit ratio
New additions to
consolidation
+10.4New
additions to
consolidation
+0.2
文字まだ
Construction, Mining & Utility Equipment :
Causes of Difference in Sales and Segment Profit for FY2019
・Sales decreased by JPY267.7 billion from FY2018, as adversely affected by reduced sales volume and foreign exchange rates.
・Segment profit declined by JPY138.0 billion, as adversely affected by reduced sales volume and a change in the geographic
composition of sales. ・Segment profit ratio was 10.3%, down 4.4 points.
¥110.6/USD¥128.5/EUR¥16.5/RMB
¥108.7/USD¥120.8/EUR¥15.6/RMB
18
Japan JapanEurope EuropeChina ChinaOceania OceaniaOthers Others
North America North
America
0
100
200
300
400
500
600
700
800
63.570.9
17.512.6
0
20
40
60
80
100Sales Segment profit
Japan JapanEurope EuropeChina China
Oceania OceaniaOthers Others
North America
North America
0
100
200
300
400
500
600
700
800
900Billions of yen Billions of yen
Mar.31, 2019
Billions of yen 2019/3E 2020/3E Changes
Interest-bearing debt 638.0 648.0 +9.9
Interest-bearing debt, net 634.0 642.4 +8.3
Net D/E ratio 3.64 3.80 +0.16pts.
Revenues
FY2018 vs FY2019
Assets
Mar.31, 2019 vs. Mar.31, 2020
Retail Finance: Highlights for FY2019
842.1
¥111.1/USD
¥124.7/EUR
¥16.6/RMB
New Contracts
FY2018 vs FY2019
Billions of yen
612.5695.6
FY2018 Mar.31, 2020¥108.8/USD
¥119.6/EUR
¥15.3/RMB
FY2019 FY2018 FY2019
・While assets increased mainly in North America and Europe, assets decreased slightly from the previous fiscal-year, adversely
affected by foreign exchange rates. ・New contracts declined mainly in North America, China and Latin America.
・Revenues advanced due to increased assets.
・Segment profit decreased, as mainly affected by no more reversal of allowances for doubtful accounts, which was recorded in
China for the FY2018, as well as allowances were for doubtful accounts related to mining accounts recorded for FY2019.
¥110.6/USD
¥128.5/EUR
¥16.5/RMB
841.0
¥108.7/USD
¥120.8/EUR
¥15.6/RMB
¥110.6/USD
¥128.5/EUR
¥16.5/RMB
FY2018 FY2019 Changes
ROA 2.2% 1.5% (0.7)pts.
¥108.7/USD
¥120.8/EUR
¥15.6/RMB
19
18.6
13.7
9.2%7.7%
-10
-5
0
5
10
0
10
20
30
FY2018 FY2019
(%)
Billions of yen
:Segment profit ratio
・Sales decreased by 12.6% from FY2018, to JPY177.5 billion, mainly affected by reduced sales of presses and machine tools to the automobile
manufacturing industry, as well as declined sales of Excimer laser-related products on the semiconductor market. ・Segment profit ratio was 7.7%.
Industrial Machinery & Others: Highlights for FY2019
FY2018 FY2019
Changes
Increase(Decrease)
% Change
Komatsu Industries Corp. 57.4 55.0 (2.3) (4.2)%
Komatsu NTC Ltd. 67.9 48.3 (19.5) (28.8)%
Gigaphoton Inc. 40.5 35.0 (5.4) (13.5)%
Others 37.3 39.0 +1.7 +4.7%
Total 203.2 177.5 (25.6) (12.6)%
Breakdown of sales
Billions of yen
203.2177.5
0
50
100
150
200
FY2018 FY2019
Billions of yen
SalesFY2018 vs. FY2019
Segment profitFY2018 vs. FY2019
20Consolidated Balance Sheets
・Total assets grew by JPY15.4 billion from the previous fiscal year-end to JPY3,653.6 billion, mainly due to increased Cash & deposits and other
assets. ・Komatsu Ltd. shareholders’ equity ratio decreased by 1.4 points to 48.5%.
Mar. 31, 2019 Mar. 31, 2020Increase
(Decrease)
Cash & deposits (incl. time deposits) [a] 150.8 249.6 +98.8
Accounts receivable (incl. long-term trade receivables) 1,258.5 1,165.3 (93.2)
Inventories 837.5 805.3 (32.2)
Tangible fixed assets 776.4 757.6 (18.7)
Other assets 614.8 675.7 +60.8
Total assets 3,638.2 3,653.6 +15.4
Accounts payable 266.9 220.1 (46.7)
Interest-bearing debt [b] 930.7 1,012.3 +81.6
Other liabilities 537.7 564.9 +27.2
Total liabilities 1,735.3 1,797.4 +62.1
[Shareholders’ equity ratio] (49.9%) (48.5%) ((1.4).pts.)
Komatsu Ltd. shareholders’ equity 1,815.5 1,771.6 (43.9)
Non-controlling interests 87.2 84.6 (2.6)
Liabilities & Equity 3,638.2 3,653.6 +15.4
Interest-bearing debt, net [b-a] 779.8 762.7 (17.1)
Net D/E ratio (excl. the retail finance business)
¥108.8/USD
¥119.6/EUR
¥15.3/RMB:Net D/E ratio
0.43 0.43
0.09 0.08
Billions of yen¥111.1/USD
¥124.7/EUR
¥16.6/RMB
*1
*1
*1 Note: In compliance with the new accounting standard which Komatsu has adopted, right-of-use assets under operating lease and operating lease liabilities increased by about JPY53.5 billion from
the previous fiscal year-end.
21
62.8 63.9 65.5
10.7 9.5 9.2
2.9% 2.7% 3.1%
0
20
40
60
80
100
FY17 FY18 FY19
Industrial Machinery&Others
Construction, Mining&Utility Equipment
% of sales
51.7 63.4
81.9
4.7
4.2
4.6
60.1 57.7 56.4
0
10
20
30
40
50
60
70
0
20
40
60
80
100
120
FY17 FY18 FY19
Industrial Machinery&Others
Construction, Mining&Utility Equipment and Retailfinance
R&D Expenses Fixed costsInvestment in production and
other facilities* and depreciation
56.5
67.6
73.674.7
Actual Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs
Billions
of yen
Billions
of yen
Billions
of yen*Excl. investment in rental assets
86.5 73.4
0
100
200
300
400
500
600
FY2017 FY2018 FY2019
・CAPEX: Increased, mainly reflecting KMC’s restructuring of plants.
・R&D expenses and Fixed costs: While R&D expenses increased due to focused investment in growth areas, overall costs remained
about flat, supported by the reduction of other expenses.
22
Ⅳ. Demand and Business Conditions
23
・In FY2019, demand decreased presumably by 8% from FY2018.
・In the Fourth quarter of FY2019, total demand declined by 16% from the corresponding period a year ago, as adversely affected by the spread of coronavirus
infections mainly in China, North America, Europe and Asia.
+15%
-20%-20%
+45%
+5%
-7%
+3%
-9%-14%
+4%
+24%
+6%
-8%
-120%
-110%
-100%
-90%
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
0
100,000
200,000
300,000
400,000
500,000
600,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Japan N.America
Europe China
Others Y-o-Y growth rate
FY19: (8)%
FY20 Initial projection: About flat
from FY2019
Construction, Mining & Utility Equipment: Actual and Projected Demand for 7 Major Products
-16% -18%-11%
-8% -8%-0%
+4%
+23%+26%+26% +26%
+18%+18%
+8%+3%
-2% -7% -3%-7%
-16%
-200%
-170%
-140%
-110%
-80%
-50%
-20%
10%
40%
70%
0
30,000
60,000
90,000
120,000
150,000
FY
15/1Q
2Q 3Q 4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Japan N.America
Europe China
Others Y-o-Y growth rate
Quarterly demand for 7 major products
Units Growth rate
FY19/4Q: (16)%
100
80
64
9297
9093
84
72
Annual demand for 7 major products
UnitsGrowth rate
Source: Estimated by Komatsu
:FY07=100Index
76
94100
92
Projected*
* Projected at the time of FY2020 budgeting. For reference only and not projection as of now.
24
0% -1%-4%-1%-1%-8%
7%
-5%-9%-1%
-10%-9%-2%-6%-7%-3%-8%
3%
-8%-3%-6%
-11%-1%-2%
2%
-80%
-60%
-40%
-20%
0%
20%
40%
0
50
100
150 Operating hours (left scale)
Y-o-Y (right scale)
-100,000
-80,000
-60,000
-40,000
-20,000
0
20,000
40,000
60,000
80,000
0
10
20
30
40
50
60
70
80
90
100
110
120
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Private-sector building renovationPrivate-sector non-residentialPrivate-sector residentialGovernment
Construction, Mining & Utility Equipment : Demand in Major Markets (1) Japan
[Sources] Construction investment by the Ministry of Land, Infrastructure,
Transport & Tourism, and Research Institute of Construction and Economy
Demand for 7 major products and No. of exported used equipment estimated by Komatsu
*1 Note: In September 2019, the Ministry of Land, Infrastructure, Transport and Tourism started to adding the
collected data concerning renovation and renewal investment in buildings. Bar graphs above include
retroactively added data until FY15.
*2 Note: Projected at the time of FY2020 budgeting. For reference only and not projection as of now.
Demand for new
equipment
Demand for new equipment (7 major products) and construction investment
Construction investment
Trillion of yen
Demand for new equipment /
Export of used equipment
(Units)
0
4,000
8,000
12,000
FY
15/4Q
FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Rental companies
Regular customers
(16,000)
(12,000)
(8,000)
(4,000)
0
4,000
8,000
12,000
16,000
-100%
-75%
-50%
-25%
0%
25%
50%
75%
100%
FY
15/1Q
2Q 3Q 4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Demand (units) Y-o-Y change (%)
:FY07/4Q=100Index
Quarterly demand for 7 major products
Y-o-Ygrowth rate Units
Quarterly demand for hydraulic excavators (Rental & Regular uses)
Y-o-Y
growth rate
Units
+17%
(10)%
Rental
Regular
83 7095101 95
FY19: +5%
FY20: Initial projection (5)%~+/-0%
4Q:+0%
・In FY2019, demand increased by 5% from FY2018.
・The increase was mainly supported by the recovery from reduced sales, as affected by the reactionary drop of pre-buy demand in anticipation of
the new emission control regulations enforced in September 2017.
Exports of used equipment
*1
KOMTRAX in Japan: Average operating hours per monthHours
*2
Projection
25
0
20,000
40,000
60,000
80,000
FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20
050100150200250
-20,000
-10,000
0
10,000
20,000
30,000
-40%
-20%
0%
20%
40%
60%
FY
15/1Q
2Q 3Q 4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Demand(unites) Y-o-Y Change(%)
Construction, Mining & Utility Equipment : Demand in Major Markets (2) North America
[Source]: Demand for 7 major products estimated by Komatsu
US
AC
anad
a
Demand for 7
major products
(Units)
Demand for 7 major products and US housing starts
Housing starts
Housing starts
in ten thousands
0%
20%
40%
60%
80%
100%
FY
07
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
FY
19
Rental-distributor(DORF)
Rental-Regular
Mining & energy
Road
Construction
Others
Quarterly demand for 7 major productsY-o-Y
growth rate Units
Breakdown of demand by segment (Unit basis)
Y-o-Y growth rate
102 98116 120
106
Index :FY07/4Q=100
+2%
Rental
(12)%
Mining & energy
+2%
Road
Construction
Others
FY19: +3%
FY20: Initial projection (5)%~+/-0%
・In FY2019, demand increased presumably by 3% from FY2018.
・The increase resulted from strong demand for construction equipment mainly in the construction and rental industries. In the fourth quarter,
demand slowed down sharply due to the spread of coronavirus infections.
4Q:(12)%
7% 3%
-1%
2%
-1%-9%
0%
-6%-7%
3% 4% 1% 0%
-5%-8%
1%
-6%
6%
-6% -5%
0%
-8% -8%-13%-12%
-130%
-110%
-90%
-70%
-50%
-30%
-10%
10%
30%
50%
0
50
100
150
Operating hours (left scale)
Y-o-Y (right scale)
KOMTRAX in North America: Average operating hours per month
Hours
*1
*1 Note: Projected at the time of FY2020 budgeting. For reference only and not projection
as of now.
Projected*1
26
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Construction, Mining & Utility Equipment : Demand in Major Markets (3) Europe
Annual demand for 7 major productsUnits
[Source]: Demand for 7 major products estimated by Komatsu
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Southern
Eastern
Other Western Countries
Northern
The UK., France, and Germany
Y-o-Y
growth rate Units
Quarterly demand for 7 major products
(10,000)
(6,000)
(2,000)
2,000
6,000
10,000
14,000
18,000
-20%
-10%
0%
10%
20%
30%
40%
FY
15/1Q
2Q 3Q 4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Demand(unites) Y-o-Y change(%)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
FY18(Apr.-Feb.)
FY19(Apr.-Feb.)
Index :FY07/4Q=100
5768 72 75
64
Region demand for 7 major products (Excl. 6t class)Units
FY19: (2)%
FY20: Initial projection +/-0%~+5%
・In FY2019, demand decreased presumably by 2% from FY2018.
・While demand remained firm in the major markets of Germany and France, it dropped sharply in the fourth quarter due adverse
effects of Brexit and the spread of coronavirus infections.
4Q:(16)%
7%
-2%
2%7% 0%
-3%
4%
-3%-3%-3%-1%
2%
-3%-4%-13%
0%
-11%-2%-6%-10%
-1%
1%
-2%-9%
-16%
-130%
-110%
-90%
-70%
-50%
-30%
-10%
10%
30%
0
50
100
150
Operating hours (left scale)
Y-o-Y (right scale)
KOMTRAX in Europe: Average operating hours per month
Hours
*1 Note: Projected at the time of FY2020 budgeting. For reference only and not projection
as of now.
*1
Projected*1
27
Y-o-Y
growth rate Units
-15,000
-5,000
5,000
15,000
25,000
-100%
-50%
0%
50%
100%
150%
200%
FY
15/1Q
2Q 3Q 4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Demand (units) Y-o-Y growth rate
40
84
120 116
81
0
5,000
10,000
15,000
4 5 6 7 8 9 10 11 12 1 2 3
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
KOMTRAX in China : Average operating hours per month
-3%-3%-2%-6%
0%
-4%
9%
-14%-14%-12%
0%6%
-8%-4%-5%-3%-3%-4%-14%
2%
-1%
-43%-32%
-17%
3%
-200%-180%-160%-140%-120%-100%-80%-60%-40%-20%0%20%
0
50
100
150
200
Operating hours (left scale)
Y-o-Y (right scale)
Quarterly demand for 7 major products (Foreign makers)
[Source]: Demand for 7 major products and hydraulic excavators estimated by Komatsu
Hours
Annual demand for 7 major products (Foreign makers)
Construction, Mining & Utility Equipment : Demand in Major Markets (4) China
0
20,000
40,000
60,000
80,000
100,000
120,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Units
Monthly demand for hydraulic excavators : All modelUnits
<Chinese New Year>
: Feb. 8, 2016: Jan. 28, 2017: Feb. 16. 2018: Feb. 5. 2019: Jan. 25, 2020
(month)
Index :FY07/4Q=100
FY19: (21)%
FY20 (Projection): +/-0%~+10%
・In FY2019, demand decreased presumably by 21% from FY2018.
・The decline was caused by a growing market share of domestic makers and the spread of coronavirus infections.
【Ref】Total demand including machines made by local makers
(Hydraulic excavators incl. mini shovels)
FY19: +2%, 4Q of FY19: (12)%,
FY20:+10%~+20%(Projection)
4Q:(31)%
Projection
28
Indonesia: Demand for construction & mining equipment by industrial sectorUnits
0
1,000
2,000
3,000
4,000
FY
15/3Q
4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Forestry
Agriculture
Construction
Mining
0
10,000
20,000
30,000
40,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Indonesia
Others
Malaysia
Thailand
Construction, Mining & Utility Equipment : Demand in Major Markets (5) Southeast Asia
Annual demand for 7 major products
[Source]: Demand for 7 major products estimated by Komatsu
Units Quarterly demand for 7 major productsUnits
Y-o-Y
growth rate
-6,000
-3,000
0
3,000
6,000
9,000
-80%
-40%
0%
40%
80%
120%
FY
15/1Q
2Q 3Q 4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Indonesia Others Malaysia Thailand Y-o-Y change(%)
:
113145 133
97 105
Index :FY07/4Q=100
FY19 :(24)%
FY20: Initial projection (10)%~(5)%
・In FY2019, demand decreased presumably by 24% from FY2018.・In Indonesia, the largest market of the region, demand for construction and mining equipment declined, reflecting no substantial
growth in infrastructure investment after the presidential election as well as sluggish price of thermal coal.
4Q:(21)%
4Q:(39)%
FY19:(35)%8% 8%
-2%
13%3% 7% 4% 2%
-2%-2%-1%-1%-8%-6%
2% 1%
-3%-3%-5%-3%-5%-5%-1%-4%
2%
-130%
-110%
-90%
-70%
-50%
-30%
-10%
10%
30%
0
70
140
210
280
350
Operating hours (left scale)
Y-o-Y (right scale)
KOMTRAX in Indonesia: Average operating hours per month
Hours
*1 Note: Projected at the time of FY2020 budgeting. For reference only and not projection
as of now.
*1
Projected*1
29
Annual demand for mining equipment
Construction, Mining & Utility Equipment :
Actual and Projected Demand for Mining Equipment
Y-o-Y change
・Dump trucks: 75 tons (HD785) and larger
・Bulldozers: 525HP (D375) and larger
・Excavators: 200 tons (PC2000) and larger
Note: Demand estimated by Komatsu
Quarterly demand for mining equipment
-3%
-24%-13% -14% -32%
-7%
18%
12%
96%
52%
49%
71%
41%
54%
20%10%
-6%-19%
-29%
-19%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
0
500
1,000
1,500
2,000
FY
15/1Q
2Q 3Q 4Q FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Middle East &Africa
Oceania
Asia
Japan&China
Europe&CIS
Latin America
N. America
Y-o-Y change
Units Y-o-Y change
+39%
+52%
-4%
-51%-25%
-13%
-3%
+64%
+29%
-18%
-400%
-350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
0
2,000
4,000
6,000
8,000
10,000
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Middle East &AfricaOceania
Asia
Japan&China
Europe&CIS
Latin America
N. America
Y-o-Y change
・Wheel loaders (mechanical driven):
810HP (WA800) and larger
・Motor graders: 280HP (GD825) and larger
Units
・ In FY2019, global demand for mining equipment decreased presumably by 18% from FY2018.
4Q:(19)%
*1 Note: Projected at the time of FY2020 budgeting. For reference only and not projection as of
now.
FY19 :(18)%
FY20: : Initial projection (20)%~(10)% *1
Projected*1
30Construction, Mining & Utility Equipment : Sales of Mining Equipment
Annual sales of mining equipment (incl. parts and service) Quarterly sales of mining equipment (incl. parts and service)
69.867.4
72.0
64.568.8
107.2100.8
98.1
93.4
98.4
84.4
76.7
67.0
77.6
70.0
107.598.3
90.7
108.9
135.8
211.1222.3
252.2244.5241.5
272.8277.9
261.2244.9
237.0235.4 237.2
-18%
-15%
-18%-4%+26%
+115%
+145%
+132%
+80%
+14%+23% +10% +7%
+1%
-13% -15% -9%
-450%
-350%
-250%
-150%
-50%
50%
150%
0
50
100
150
200
250
300
350
400
450
FY
15/4Q
FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
18/4Q
FY
19/1Q
2Q 3Q 4Q
N. America Latin America Europe & CIS
Japan & China Asia Oceania
Middle East & Africa Y-o-Y change
256.1 273.3 272.7
374.1 421.8
390.6
300.0
358.3
291.3
417.0
554.0
614.5
506.3 499.3
447.3 433.6
930.2
1,053.5
954.6
+15%
+33%
+11%
-18%
-1%
-10%
-3%
+115%
+13%
-9%
-350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
0
200
400
600
800
1,000
1,200
1,400
1,600
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY17 FY18 FY19
N. America Latin America
Europe &CIS Japan & China
Asia Oceania
Middle East & Africa Y-o-Y changeY-o-Y change
Billions
of yen Y-o-Y changeBillions
of yen
Parts
Service, etc.
Eq
uip
men
t
Parts
Service, etc.
Eq
uip
men
t
・In FY2019, sales decreased by 9% from FY2018, to JPY954.6 billion.
31
138.5 158.0
171.5 187.4 196.1
214.9 202.4
374.1 421.7
390.6 141.5
159.0 148.0 176.3
191.1 182.6 176.5
202.7
205.8
196.8
280.0
317.0319.5
363.7387.2
397.5378.8
576.8
627.5
587.5
+18% +13%
+1%
+14%+6%
+3%
-5%
+52%
+9%
-6%
-250%
-200%
-150%
-100%
-50%
0%
50%
0
100
200
300
400
500
600
700
800
900
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Mining equipment
Construction equipment
Y-o-Y
Construction, Mining & Utility Equipment : Sales of Parts
Annual sales of parts
Billions
of yenY-o-Y change
(%) Billions
of yen
Quarterly sales of parts
50.445.7 45.8 50.7
60.2
85.6 94.7 95.5
98.3102.7
107.6
104.2
107.2 100.8
98.193.4 98.4
44.9
42.142.0
43.0
49.3
49.4
50.9 50.6 51.850.8
51.0 50.953.1
51.7
51.148.0 46.1
95.3 87.8 87.8
93.8
109.5
135.0
145.7 146.1 150.0 153.5 158.6 155.1
160.3 152.4 149.1
141.4 144.6
-7%-14% -11%
-7%
+15%
+54%
+66%
+56%
+37%
+14% +9%+6% +7%
-1% -6%-9%
-10%
-180%
-160%
-140%
-120%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
0
50
100
150
200
250
300
FY
15/4Q
FY
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q
Construction equipment
Mining equipment
Y-o-Y
Y-o-Y change
(%)
・In FY2019, sales of parts decreased by 6% from FY2018, to JPY 587.5 billion.
32
Appendix
33
29.7 34.3 42.867.0 51.7 59.4 74.8 82.4 96.0 104.2 95.5 101.9
74.7 67.2 65.842.8
7.7%8.4%
10.0%
11.6%
9.2% 10.0%
11.6% 11.9%
14.9% 15.5%
13.6% 14.4%
12.3%11.1% 10.7%
6.9%
-50
0
50
100
150
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Operating profit Operating profit ratio
<Appendix>
Quarterly Sales and Operating Income
-2.5 -2.4 -3.3 -5.3 -10.0 -5.8 -4.7 -4.9 -3.6 -5.3 -7.1 -4.3 -3.0 -3.6 -3.8 -4.3
345.1 353.4 379.0 498.8 514.9 549.3 594.4 622.0 594.2 606.3 645.3 633.0
561.4 550.1 546.4 553.1 11.8 11.6
12.6
12.9 17.5
13.6
14.7 14.3 14.2 15.1 16.7 17.4
17.2 17.5 18.1 17.9
34.7 44.242.2
69.7 38.640.5
42.363.9
41.2 55.745.7 60.4
34.0 39.7 53.2 50.5
-100
0
100
200
300
400
500
600
700
800
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Elimination
Construction, Mining & Utility Equipment
Retail Finance
Industrial Machinery & Others
¥/USD
¥/EUR
¥/RMB
16/1Q 16/2Q 16/3Q 16/4Q
109.8 102.9 106.9 114.7
124.3 114.6 116.7 121.4
16.9 15.4 15.7 16.7
389.2
Quarterly sales (Since FY2016)Billions of yen
Billions of yen
Exchange
rates 17/1Q 17/2Q 17/3Q 17/4Q
111.2 110.9 113.0 109.6
121.6 129.9 133.2 133.7
16.3 16.6 17.0 17.2
406.8 430.5
576.2 561.2597.7
646.8695.3
Quarterly operating income (Since FY2016)
18/1Q 18/2Q 18/3Q 18/4Q
108.2 111.2 113.5 109.4
130.1 129.6 129.6 124.7
17.1 16.4 16.4 16.2
646.0 671.9700.5 706.6
19/1Q 19/2Q 19/3Q 19/4Q
110.0 107.9 108.6 108.1
123.2 120.0 119.7 120.0
16.2 15.5 15.4 15.5
609.7 603.7 613.9 617.4
34
26.3 31.238.9
65.147.2
55.079.4
91.2 88.3 95.6 88.6 92.8
68.6 61.153.0 44.4
7.6% 8.8%10.3%
13.1%9.2% 10.0%
13.4% 14.7%14.9% 15.8%
13.7%14.7% 12.2%
11.1% 9.7%8.0%
50% 47% 51% 53% 55% 52% 54% 56% 56% 55% 54% 50% 52% 49% 50% 49%
(50)
0
50
100
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio Percentage of sales in Strategic Markets
<Appendix>
Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit
23% 25% 22% 25% 18% 21% 19% 19% 19% 18% 21% 22% 20% 22% 21% 21%
15% 15% 15% 19%13% 12% 12% 17% 16% 11% 11% 11% 14% 12% 13% 13%
10% 8% 9%10%
12% 12% 16% 13% 12% 16% 16% 13% 14% 12% 14% 13%
52% 52% 53% 45% 57% 55% 53% 51% 53% 54% 52% 54% 53% 54% 52% 53%
0%
20%
40%
60%
80%
100%
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Parts, etc Mining equipment Construction equipment(Stragegic Markets) Construction equipment(Traditional Markets)
345.1 353.4 379.0
498.8 515.0549.3
594.5 622.0 594.2 606.3 645.3 633.0 561.4 550.1 546.4 553.1
0
200
400
600
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Quarterly Sales
Quarterly segment profit
Billions of yen
Billions of yen
¥/USD
¥/EUR
¥/RMB
Exchange rates
Breakdown of sales(%)
16/1Q 16/2Q 16/3Q 16/4Q
109.8 102.9 106.9 114.7
124.3 114.6 116.7 121.4
16.9 15.4 15.7 16.7
17/1Q 17/2Q 17/3Q 17/4Q
111.2 110.9 113.0 109.6
121.6 129.9 133.2 133.7
16.3 16.6 17.0 17.2
18/1Q 18/2Q 18/3Q 18/4Q
108.2 111.2 113.5 109.4
130.1 129.6 129.6 124.7
17.1 16.4 16.4 16.2
19/1Q 19/2Q 19/3Q 19/4Q
110.0 107.9 108.6 108.1
123.2 120.0 119.7 120.0
16.2 15.5 15.4 15.5
35
<Appendix>
Construction, Mining & Utility Equipment: Quarterly Sales by Region (To Outside Customers)
59.6 77.7 79.1 84.9 69.1
87.4 78.7 80.4 63.9 73.5 87.6 87.6 63.7
84.9 77.4 84.6
75.6 79.8 80.2
102.6 116.0
131.4 152.1 138.6 140.6
148.5 158.6 164.4
143.4
147.9 144.0 138.1 35.8
29.5 26.2
43.9 43.0
41.639.7 56.0
53.846.2
46.460.9
59.148.6
52.7 59.2
49.046.0 51.0
56.8 72.2
77.882.0 82.6
76.677.4
90.680.7
74.574.1 83.1 77.4
15.6 14.7 18.2
22.0 27.6
25.6 26.2 29.0
31.3 34.3
36.3 32.6
34.0 36.7 29.1 27.4
18.7 17.3
21.7
39.4 38.3
31.7 43.8
50.8 50.5 30.9
37.2 46.0
36.2 25.2 32.7 32.9
40.2 40.3
50.5
75.5 64.1
68.9
76.9 88.5
86.0 91.6
88.4 72.9
62.3 53.0 44.2 45.9
24.024.1
25.8
31.545.1
40.0
51.5
45.251.0 58.9
54.0 51.5
56.1 46.9 49.3 50.9
9.17.1
6.9
12.57.4
10.1
9.512.5
6.8 7.6
8.7 7.0
6.96.6 7.1 9.9
15.4 14.9
16.5
24.827.8
31.0
30.9
34.7
31.333.7
31.9 27.0
23.924.3 25.0 24.8
0
100
200
300
400
500
600
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
343.4 351.8
376.6
494.4
Billions of yen
Africa
Middle East
Oceania
Asia
China
CIS
Latin America
Europe
North America
Japan
¥/USD
¥/EUR
¥/RMB
16/1Q 16/2Q 16/3Q 16/4Q
109.8 102.9 106.9 114.7
124.3 114.6 116.7 121.4
16.9 15.4 15.7 16.7
Exchange
rates 17/1Q 17/2Q 17/3Q 17/4Q
111.2 110.9 113.0 109.6
121.6 129.9 133.2 133.7
16.3 16.6 17.0 17.2
545.8
510.9
591.7
618.7
18/1Q 18/2Q 18/3Q 18/4Q
108.2 111.2 113.5 109.4
130.1 129.6 129.6 124.7
17.1 16.4 16.4 16.2
592.1603.0
640.3 631.1
19/1Q 19/2Q 19/3Q 19/4Q
110.0 107.9 108.6 108.1
123.2 120.0 119.7 120.0
16.2 15.5 15.4 15.5
560.5548.7 545.1 551.5
36
1.82.3 2.5
-2.3
3.3 2.5 3.04.0 5.4
4.0 3.54.3
3.4 3.4 4.01.7
15.9% 20.1% 20.2%
-17.8%
18.9% 18.9% 20.6%28.0%
38.5%26.9% 21.1% 25.2%
19.7% 19.5% 22.6%9.9%
-10
-5
0
5
10
15
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio
<Appendix>
Retail Finance: Quarterly Sales and Segment Profit
11.8 11.6 12.6 12.9
17.5
13.6 14.7 14.3 14.2 15.1
16.7 17.4 17.2 17.5 18.1 17.9
0
5
10
15
20
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Quarterly sales
Quarterly segment profit
Billions of yen
Billions of yen
¥/USD
¥/EUR
¥/RMB
Exchange
rates
*1*1*1 *1
*1 Including a loss on allowance recorded for bad debt in China (FY16/1Q: -JPY1.0 billion, 2Q: -JPY0.5 billion, 3Q: -JPY0.2 billion, 4Q: -JPY4.9 billion)
16/1Q 16/2Q 16/3Q 16/4Q
109.8 102.9 106.9 114.7
124.3 114.6 116.7 121.4
16.9 15.4 15.7 16.7
17/1Q 17/2Q 17/3Q 17/4Q
111.2 110.9 113.0 109.6
121.6 129.9 133.2 133.7
16.3 16.6 17.0 17.2
18/1Q 18/2Q 18/3Q 18/4Q
108.2 111.2 113.5 109.4
130.1 129.6 129.6 124.7
17.1 16.4 16.4 16.2
19/1Q 19/2Q 19/3Q 19/4Q
110.0 107.9 108.6 108.1
123.2 120.0 119.7 120.0
16.2 15.5 15.4 15.5
37
1.7 2.3 2.3
6.0
2.3 2.4
4.35.3
3.04.4 5.1
5.9
0.5
3.4
5.54.0
4.9% 5.3% 5.7%
8.6%
6.2% 6.0%
10.2%8.1% 7.4% 8.0%
11.3%9.9%
1.6%
8.8%10.5%
8.0%
-5
0
5
10
15
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio
<Appendix>
Industrial Machinery & Others: Quarterly Sales and Segment Profit
34.7 44.2 42.2
69.7
38.6 40.5 42.3
63.9
41.2
55.7
45.7
60.4
34.0 39.7
53.2 50.5
0
25
50
75
100
FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q
Quarterly sales
Quarterly segment profit
Billions of yen
Exchange
rates
Billions of yen
¥/USD
¥/EUR
¥/RMB
16/1Q 16/2Q 16/3Q 16/4Q
109.8 102.9 106.9 114.7
124.3 114.6 116.7 121.4
16.9 15.4 15.7 16.7
17/1Q 17/2Q 17/3Q 17/4Q
111.2 110.9 113.0 109.6
121.6 129.9 133.2 133.7
16.3 16.6 17.0 17.2
18/1Q 18/2Q 18/3Q 18/4Q
108.2 111.2 113.5 109.4
130.1 129.6 129.6 124.7
17.1 16.4 16.4 16.2
19/1Q 19/2Q 19/3Q 19/4Q
110.0 107.9 108.6 108.1
123.2 120.0 119.7 120.0
16.2 15.5 15.4 15.5
38
0%
50%
100%
150%
200%
0%
50%
100%
150%
200%
250%
0%
50%
100%
150%
200%Orders received/Sales IndexKomatsu America
(Mining eqpt)
Komatsu Germany
(Mining eqpt)
PC3000, PC4000
PC5500, PC7000
PC8000
Komatsu Ltd.
(Mining eqpt)
HD785, HD1500
PC2000,PC3000
PC4000
WA800 up
D375A up
GD825A up
730E, 830E, 860E
930E, 960E, 980E
Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)
<Appendix>
Book-to-Bill Ratio for Mining Equipment (6 Months)
39
Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)
0%
50%
100%
150%
200%
250%
Orders received/Sales IndexKMC
(Mining eqpt)
< Surface >
Rope Shovel
Blasthole Drills
Dragline ,etc
< Underground >
Continuous Miner
Sheerer
Load Haul Dump Machine
Jumbo Drills,etc
<Appendix>
Book-to-Bill Ratio for KMC Mining Equipment (6 Months)
40
Komatsu Industries
Komatsu NTC
<Appendix>
Book-to-Bill Ratio for Industrial Machinery (6 Months)
0%
50%
100%
150%
200%
Orders received/Sales Index Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)
41
In April 2020, we accelerated the
pace of achieving digital
transformation of construction
worksites by further advancing
SMARTCONSTRUCTION.
Providing Digital Transformation of SMARTCONSTRUCTION
Our presentation at CONEXPO in Las Vegas on March 10, 2020
We steadily began introduction
of four IoT devices and eight
applications.
We are going to launch
SMARTCONSTRUCTION in the
United States and Europe (the
United Kingdom, Germany,
France and Denmark).
42Launch of Retrofit Kit for SMARTCONSTRUCTION
In April we launched sales of “SMARTCONSTRUCTION Retrofit Kit” which will change
all hydraulic excavators on construction sites to perform like leading-edge ICT-intensive
models. Non-ICT-
intensive
models
ICT-intensive
models
3D construction
based on
3D design data
Not possible Possible PossiblePossible to perform high-precision 3D construction based on 3D
design data
3D controls Not possiblePossible
Semi-automatic
Not possible
Limited to
guidance
Staking
Support workersNot possible No need No need
No need for staking and support workers, thereby improving safety
and productivity
3D construction
records
Not possible
to obtain
High precision
Possible to
obtain
High precision
Possible to
obtain
Possible to obtain construction records in the digital format and on a
real-time basis
Retrofit kit Becoming possible with the retrofit kit
43
PC
30
E-5
Eco-friendly battery and electric motor
★No emission gas and waste heat, thereby improving work environment
★Reduced machine and ambient noise
★Zero CO2 emissions on construction sites
ECOLOGY & SAFETY
MAINTENANCE
No maintenance needed for engine-related devices
★Fewer items for daily inspection and periodic maintenance
Daily inspection: 9⇒5 items. Periodic inspection: 16⇒ 11 items
CHARGING & KOMTRAX
Optimal charging control and prevention of early deterioration of batteries
★Equipped with standard charger. Capable for rapid charging.
★Able to monitor daily conditions of the battery via KOMTRAX
“Gentleness” of cutting-edge technologies
Introducing Komatsu Zero-emission mini excavator
Electric mini excavator:
“Gentle” to operators, local residents, natural environment and all other things
Output (net): 17.4kW
Standard bucket capacity: 0.09m3
Launching PC30E-5 Electric Mini Excavator in Japan
44
Hydraulic Excavators Equipped with the Human Detection & Collision Mitigation System
as a Standard Feature for the First Time in Industry
<Monitor>
When starting to travel or even while traveling at low speed, the
excavator stops low-speed traveling as soon as person(s) is
detected inside the stop-controlled area.
When starting to swing from the halting position, the
excavator stops swinging as soon as it detects
person(s) inside the stop-controlled area.
Equipped with the Human
Detection & Collision
Mitigation System
45
Cautionary StatementThe announcement set forth herein contains forward-looking statements which reflect management's current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as "will," "believes," "should," "projects" and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company's principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company's objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company's research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.
Business Coordination Department, KOMATSU LTD.
TEL: +81-3-5561-2687 FAX: +81-3-3582-8332 http://home.komatsu/en/
Komatsu was selected as a component of
the Dow Jones Sustainability World Index
(DJSI World) in 2019, an internationally
leading SRI index.
In 2019, Komatsu has been identified as
Climate "A" List company by CDP, the non-
profit global environmental disclosure platform.
ESG Efforts: Evaluations by External Organizations