Business Results for FY2017 - home.komatsu · 4/26/2018 · ・Retail Finance: Revenues increased...
Transcript of Business Results for FY2017 - home.komatsu · 4/26/2018 · ・Retail Finance: Revenues increased...
1
April 26, 2018
President and CEOExecutive Officer and CFOExecutive Officer andGeneral Manager of Business Coordination Department
Tetsuji Ohashi Takeshi HorikoshiTakuya Imayoshi
Komatsu Ltd. Participants
Business Results for FY2017(April 1, 2017 – March 31, 2018)
2Contents
1. Business Results for FY2017: PP4 - 12
2. Projection for FY2018 Business Results: PP14 - 31
PP4-5 PP6-7 P8P9 P10PP11-12
Projection for FY2018 Results: Highlights, Segment Sales and Profit Construction, Mining & Utility Equipment: Projection of Segment Sales and Profit . KMC’s Business ResultsRetail Finance: Outlook of Assets and Revenues Industrial Machinery & Others: Projection of Segment Sales and Profit Construction, Mining & Utility Equipment: Actual and Projected Demand for Seven Major Products(Global and By Region)Construction, Mining & Utility Equipment: Demand for and Sales of Mining EquipmentConstruction, Mining & Utility Equipment: Projected Sales of PartsProjection for Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs
PP14-15PP16-19P20P21PP22-27
PP28-29P30P31
Highlights: Segment Sales and Profits for FY2017Construction, Mining & Utility Equipment: Results for FY2017Retail Finance Business: Assets, Revenues and Segment Profit for FY2017Industrial Machinery & Others: Results for FY2017Consolidated Balance SheetsProgress towards Mid-Range Management Targets
Appendix: PP33 - 43
Quarterly ResultsBook-to-Bill Ratio [Orders Received / Sales (6 Months)]Highlights: Segment Sales and Profit for the Fourth Quarter of FY2017 (January – March 2018)
PP33-37PP38-40PP41-43
3
1. Business Results for FY2017
4Highlights of FY2017 Business Results
FY2017 Projection
(As of Oct.,2017)
FY2017 Results
Depreciation after PPA * (40.0) (40.2)
Integration expenses etc. (6.0) (7.5)
Total (46.0) (47.8)
Note: PPA stands for Purchase Price Allocation.It is an accounting process of valuating and allocating acquired assets and liabilities to fair prices.
Notes:
1) Figures represent those which KMC’s business results are excluded
2) KMC’s segment and operating losses include temporary expenses in the table on the right.
3) Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”
FY2016Results
(A)FY2017
Projection(B)
FY2017Results
(C)
Changes (C-A)
KomatsuConventional KMC Komatsu
ConventionalKMC increase
(decrease)Change
%
Net sales 1,802.9 2,328.0 2,037.0 291.0 2,501.1 2,183.2 317.8 +698.1 +38.7%
Segment profit (loss) 176.5 236.0 256.0 (20.0) 302.9 315.4 (12.4) +126.3 +71.6%
Other operating income( expenses) (2.4) (20.0) (20.0) - (31.3) (31.3) (0.0) (28.9) -
Operating income (loss) 174.0 216.0 236.0 (20.0) 271.5 284.0 (12.4) +97.4 +56.0%
Profit ratio (loss ratio) 9.7% 9.3% 11.6% (6.9)% 10.9% 13.0% (3.9)% +1.2pts. -
Other income (expenses) (7.6) 21.0 20.2 +27.8 -
Income before income taxes 166.4 237.0 291.8 +125.3 +75.3%
Net income 113.3 159.0 196.4 +83.0 +73.2%
ROE 7.3% 10.1% 12.1% +4.8pts.
Cash dividends per share 58yen 72yen 84yen 26yen
Consolidated payout ratio 48.2% 42.7% 40.3%
*3
Billions of yen
Net D/E ratio 0.18 - 0.40 +0.22pts.
¥108.6/USD¥119.3/EUR¥16.2/RMB
¥108.0/USD¥124.4/EUR¥16.0/RMB
¥111.2/USD¥129.6/EUR¥16.8/RMB *1
*2
*2
*2
*2
*1
(As of Oct.,2017)
Billions of yen
・Consolidated net sales increased by 38.7% from FY2016 to JPY2,501.1billion.・Operating income advanced by 56.0% to JPY271.5billion. Operating income ratio increased by 1.2 points to 10.9%.・Net income attributable to Komatsu Ltd. improved by 73.2% to JPY196.4 billion.
5
FY2016Results
(A)
FY2017Projection
(B)(As of Oct.,2017)
FY2017Results
(C)
Changes (C-A)
KomatsuConventional KMC Komatsu
Conventional KMC increase(decrease) % Change
Net sales 1,802.9 2,328.0 2,037.0 291.0 2,501.1 2,183.2 317.8 +698.1 +38.7%
Construction, mining & utility equipment
Retail finance
Industrial machinery & others
1,576.5[1,566.3]
49.0[46.7] 191.0
[189.9]
2,106.0[2,092.0]
57.5[49.0]188.0
[187.0]
1,815.0[1,801.0]
57.5[49.0]188.0
[187.0]
291.0[291.0]
-
-
2,280.9[2,267.3]
60.3[49.6] 185.4
[184.1]
1,963.1[1,949.4]
60.3[49.6] 185.4
[184.1]
317.8[317.8]
-
-
+704.3[+700.9]
+11.2[+2.9]
(5.6)[(5.8)]
+44.7%[+44.8%]
+22.8%[+6.3%]
(2.9)%[(3.1)%]
Elimination (13.7) (23.5) (23.5) - (25.5) (25.5) - (11.8) -
Segment profit 176.5 236.0 256.0 (20.0) 302.9 315.4 (12.4) +126.3 +71.6 %
Construction, mining & utility equipment
Retail finance
Industrial machinery & others
161.6
4.4
12.4
215.0
11.0
12.5
235.0
11.0
12.5
(20.0)
-
-
275.9
12.9
14.4
288.4
12.9
14.4
(12.4)
-
-
+114.2
+8.5
+1.9
+70.7%
+191.1%
+16.0%
Corporate & elimination (2.0) (2.5) (2.5) - (0.4) (0.4) - +1.6 -
Billions of yen
% [ ]: Sales after elimination of inter-segment transactions: Profit ratio
Segment Sales and Profit for FY2017
14.4%
21.5%
7.8%
14.7%
(3.9)%
(3.9)% 10.2%
19.1%
6.6%
10.1% 12.6%
19.1%
6.6%
12.9%
(6.9)%
(6.9)% 10.3%
9.1%
9.8%
6.5%
12.1%
21.5%
7.8%
12.1%
・Construction, Mining & Utility Equipment: Sales advanced by 44.7% from FY2016, to JPY2,280.9 billion. Segment profit expanded by 70.7% to JPY275.9 billion. Segment profit ratio improved by 1.8 points to 12.1%.
・Retail Finance: Revenues increased by 22.8% to JPY60.3 billion. Segment profit improved by 191.1% to JPY12.9 billion. ・Industrial Machinery & Others: Sales amounted to JPY185.4 billion, down 2.9% from FY2016. Segment profit advanced by 16.0% to JPY14.4
billion.
Review of three business segments■ Construction, Mining & Utility Equipment:
Both sales and profit expanded, supported by advanced sales, especially in North America, China, Asia, as well as the benefits of the new addition of KMC to consolidated accounting.
■ Retail Finance:Both revenues and profit increased, mainly reflecting increased assets in North America.
■ Industrial Machinery & OthersSales declined from FY2016. Profit expanded, mainly supported by increased sales of machine tools to the automobile manufacturing industry.
6
+383.1[+24.5%]
+14.1〔+4.7%〕
+64.8〔+19.2%〕
+30.8〔+22.8%〕
+38.3〔+18.9%〕
+32.2〔+45.8 %〕
+52.3〔+53.8%〕
+88.0〔+42.6%〕
+35.1〔+33.3%〕
+3.5〔+9.8%〕
+23.4〔+32.6%〕
Japan Japan Japan
North America
North America
North America
EuropeEurope
EuropeLatin
America
Latin America
Latin America
CIS
CIS
CIS
China
China
China
Asia
Asia
Asia
Oceania
Oceania
Oceania
Middle East
Middle East
Middle East
Africa
Africa
Africa
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
FY2016 FY2017(Conventional)
FY2017(including KMC)
Billions of yen Japan North America Europe Latin
America CIS China Asia Oceania Middle East Africa Total
FY2016 301.5 338.4 135.5 202.9 70.5 97.3 206.6 105.6 35.8 71.8 1,566.3
KomatsuConventional 315.6 403.2 166.4 241.3 102.7 149.7 294.6 140.8 39.3 95.3 1,949.4
increase(decrease) +14.1 +64.8 +30.8 +38.3 +32.2 +52.3 +88.0 +35.1 +3.5 +23.4 +383.1
KMC 0.0 134.9 14.0 73.3 5.7 15.0 3.9 41.1 0.2 29.3 317.8
FY2017 315.6 538.2 180.4 314.7 108.5 164.7 298.6 181.9 39.5 124.6 2,267.3
1,949.4
1,566.3
PlusMinus
FY2017Conventional
FY2016
YoY Comparison (Conventional)
Traditional Markets Strategic Markets
19%
22%
9%
13%
6%
13%
21%
16%
15%
5%
TraditionalMarkets50%
Strategic Markets50%
Billions of yen
9%
2%13%
14%
12%
TraditionalMarkets45%
Strategic Markets55%
Strategic Markets54%
1,949.4
2,267.3
14%
8%7% 5%
7%
8%
24%
4%
7%
5%
2%5%
TraditionalMarkets46%
1,566.3
Construction, Mining & Utility Equipment: Sales by Region for FY2017 (To Outside Customers)
2%
8%
5%
・Sales to outside customers advanced by 44.8% from FY2016, to JPY2,267.3 billion. When KMC’s sales are excluded, sales increased by 24.5% to JPY1,949.4 billion.
・Excluding those of KMC, sales improved in all regions. Sales expanded sharply, especially in North America, China and Asia. ・The ratio of sales in Strategic Markets increased to 55% of total sales. (The ratio of Strategic Market was also 54%, when KMC’s sales were
included.)
7
1,576.5
2,280.9
1,000
1,500
2,000
2,500
FY16 FY17
¥111.2/USD¥129.6/EUR¥16.8/RMB
SalesFY2016 vs. FY2017
Segment profitFY2016 vs. FY2017
Billions of yen
Volume+300.9
Selling price+8.4
Foreign exchange rate
+66.0 Volume, product mix,
etc. +111.7
Fixed costs(0.1)
Selling price+8.4
Foreign exchange rate
+6.0
12.1%10.3% Segment profit ratio
+704.3 billion yen
Positive factorsNegative factor
Construction, Mining & Utility Equipment: Causes of Difference in Sales and Segment Profit for FY2017
¥108.6/USD¥119.3/EUR¥16.2/RMB
*1: Including JPY317.8 billion resulting from the new addition of KMC to consolidated accounting
*2: Including JPY(12.4) billion resulting from the new addition of KMC to consolidated accounting.
*1New addition to consolidation
329.0 *2New addition to consolidation
(11.8)
Billions of yen
161.6
275.9
0
100
200
300
400
FY16 FY17
+114.2 billion yen
Positive factorsNegative factor
・FY2017 sales increased by JPY704.3 billion from FY2016, supported by increased volume of sales, the positive factor of foreign exchange rates and the benefits of the new addition of KMC to consolidated accounting. Although segment profit was adversely affected by temporary expenses of KMC, it increased by JPY114.2 billion as a whole.
・Segment profit ratio improved by 1.8 points to 12.1%.
8
Japan JapanEurope EuropeChina ChinaOceania OceaniaOthers Others
North America
North America
0
100
200
300
400
500
600
700
800
49.0
60.3
4.412.9
0
10
20
30
40
50
60
70Sales Segment profit728.5
FY2017FY2016
Billions of yen Billions of yen
Mar 31, 2017 Mar 31, 2018
Billions of yen 2017/3E 2018/3E Changes
Interest-bearing debt 506.0 546.0 +40.0
Interest-bearing debt, net 501.2 542.6 +41.4
Net D/E ratio 3.65 3.50 (0.15)pts.
FY2016 FY2017 Changes
ROA 0.7% 1.9% 1.2%
RevenuesFY2016 vs. FY2017
AssetsMar 31, 2017 vs. Mar 31, 2018
Retail Finance Business: Assets, Revenues and Segment Profit for FY2017
671.5
¥108.6/USD¥119.3/EUR¥16.2/RMB
¥112.2/USD¥119.8/EUR¥16.3/RMB
¥106.3/USD¥131.0/EUR¥17.0/RMB
¥111.2/USD¥129.6/EUR¥16.8/RMB
・Assets increased, mainly due to increased sales of equipment, especially in North America.・Segment profit improved, mainly supported by no more adverse effects of allowance for doubtful accounts
recorded in China for FY2016.
9
191.0 185.4
0
100
200
FY2016 FY2017
(%)
12.4 14.4
6.5% 7.8%
-10
-5
0
5
10
05
1015202530
FY2016 FY2017
Sales Segment profitBillions of yen
Billions of yen :Segment profit ratio
Industrial Machinery & Others: Sales and Segment for FY2017
FY2016 FY2017 Changes
increase(decrease)
Change %
Komatsu Industries Corp., etc.[total of press and sheet-metal machines] 56.6 51.4 (5.1) (9.1)%
Komatsu NTC Ltd.[represented by wire saws]
55.2[10.7]
62.9[8.6]
+7.7(1.9)
+14.0%[(18.6)%]
Gigaphoton 32.0 37.1 +5.1 +15.9%
Others 47.0 33.7 (13.2) (28.2)%
Total 191.0 185.4 (5.6) (2.9)%
Billions of yen
Breakdown of sales
・Sales declined by 2.9% to at JPY185.4.・ Segment profit increased, mainly due to increased sales of machine tools to the automobile manufacturing industry.
Segment profit ratio was 7.8%.
10
Mar. 31, 2017 Mar. 31, 2018increase
(decrease)
Cash & deposits (incl. time deposits) [a] 122.1 146.8 +24.6Accounts receivable (incl. long-term trade receivables)
933.2 1,155.0 +221.8
Inventories 533.8 730.2 +196.3Tangible fixed assets 679.0 740.5 +61.5Other assets 388.1 599.7 +211.6Total assets 2,656.4 3,372.5 +716.0Accounts payable 240.1 303.5 +63.4Interest-bearing debt [b] 408.7 810.5 +401.8Other liabilities 359.1 514.7 155.6Total liabilities 1,007.9 1,628.9 620.9[Shareholders’ equity ratio] [59.4%] [49.4%] [ (10.0)pts. ]Komatsu Ltd. shareholders’ equity 1,576.6 1,664.5 +87.8Non-controlling interests 71.8 79.0 +7.2Liabilities & Equity 2,656.4 3,372.5 +716.0
Billions of yen
Interest-bearing debt, net [b-a] 286.5 663.7 +377.2
Net D/E ratio (excl. the retail finance business)
Consolidated Balance Sheets
¥106.3/USD¥131.0/EUR¥17.0/RMB
¥112.2/USD¥119.8/EUR¥16.3/RMB
Mar. 31, 2018Affect of new
addition of KMC to consolidation
16.677.6
114.677.9
251.3538.231.0
101.5111.2243.7
・Total assets grew by JPY716.0 billion from the previous fiscal year-end, affected by the new addition of KMC to consolidated accounting and increased inventories.
・Interest-bearing debt increased by JPY401.8 billion to JPY810.5 billion, mainly affected by the acquisition of KMC.・ Komatsu Ltd. shareholders’ equity ratio declined by 10.0 points to 49.4%.
: Net D/E ratio
0.18 0.40
(0.15) 0.08
11
126 121 113 108 114 117 114 101 93 85 79 85 100 110 121 109 111 111
6090
120150FOREX
(JPY/USD)
SalesBn JPY
Operating IncomeBn JPY
Business Results and Progress towards Mid-Range Management Targets
[Targets]
TargetFY2016 FY2017
Index Results Results
Growth • Aim at a growth rate above the industry’s average. Growth rate of Sales【VS FY2015】 (2.8)% 38.7%
【34.8%】
Profitability • Aim at an Industry’s top-level operating income ratio. Operating Income Ratio 9.7% 10.9%
Efficiency • Aim at 10%-level ROE. ROE 7.3% 12.1%
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% 40.3%
Financial position • Aim at industry’s top-level financial position. net D/E ratio 0.18 0.40
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 2,183.2
2,501.1
(13.2)23.9 29.8 95.8 163.4
244.7 332.8
151.9 67.0
222.9 256.3 211.6 240.4 242.0 208.5 174.0 284.0 271.5
-1500150300450600750900
-5000
5001,0001,5002,0002,5003,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017
Net sales (left scale)Operting income (right scale)
Retail finance Business
• ROA: 2.0% or above ROA 0.7% 1.9%
・5.0 or under for net debt-to-equity ratio net D/E ratio 3.65 3.50
Including KMC
-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% 13.0% 10.9%
Conventional
We made good progress towards the targets in the second year of the mid-range management plan.
12
Three strategies Progress Specific efforts
1. Growth strategies based on innovation
Achieved
• Broadened the range of intelligent Machine Control models.• Introduced SMARTCONSTRUCTION to more jobsites (over 5,000 jobsites in Japan: cumulative)• Jointly with NTT DOCOMO INC., SAP Japan Co., Ltd. and OPTiM Corporation, Komatsu planed and
managed the new platform “LANDLOG” which connects the entire production processes of construction.
• Achieved over 100 units of the Autonomous Haulage System in operation. • Developed add-on kits which convert manned dump trucks to unmanned ones.
Tasksahead
• Further reinforced and expanded SMARTCONSTRUCTION.• EUV light source* and new products to be developed by Gigaphoton.• To develop next-generation KOMTRAX.
2. Growth strategies of existing businesses
Achieved
• Developed and introduced models compliant with the latest emission controls. • Increased sales of parts by means of M&A.• Expanded curriculum for the Asia Training & Demonstration Center.• Acquired the forest machine attachment business in Canada.
Tasksahead
• To promote integration with KMC.• To continue strengthening involvement in the aggregate and cement sector.• To further strengthen and expand the value chain, including rental, used equipment and retail
finance businesses.
3. Reforms designed to reinforce the business foundation
Achieved
• Made steady efforts for cost improvement. • Reformed global spare parts operation. • Three domestic sales companies merged (i.e., Komatsu Construction Equipment Sales and
Service Japan Ltd., Komatsu Rental Ltd. and Komatsu Forklift Japan Ltd.
Tasksahead
• ICT-driven work reforms (incl. work style reforms)• To further promote cost improvement efforts.• To promote human resource development and diversity on a global scale.
Progress Made in the Management Plan and Tasks in Next Fiscal Year
* : EUV stands for Extreme Ultraviolet, and EUV light source is one of the next-generation semiconductor manufacturing technologies.
13
2. Projection for FY2018 Business Results
14
FY2017 Results(A)
FY2018 Projection(B)
Changes (B-A)
KomatsuConventional KMC Komatsu
Conventional KMC increase(decrease)
Change %
Net sales 2,501.1 2,183.2 317.8 2.503.0 2,188.0 315.0 +1.9 +0.1%
Segment profit (loss) 302.9 315.4 (12.4) 345.0 319.5 25.5 +42.1 +13.9%
Other operating income (expenses) (31.3) (31.3) (0.0) (6.0) (6.0) - +25.3 -
Operating income (loss) 271.5 284.0 (12.4) 339.0 313.5 25.5 +67.5 +24.8%
Profit ratio (loss ratio) 10.9% 13.0% (3.9)% 13.5% 14.3% 8.1% +2.7pts. -
Other income (expenses) 20.2 (19.0) (39.2) -
Income before income taxes 291.8 320.0 +28.2 +9.7%
Net income *3 196.4 226.0 +29.6 +15.1%
Billions of yen
Outline of Projection for FY2018
ROE 12.1% 13.4% 1.3pts.
Cash dividends per share 84yen 96yen +12yen
Consolidated payout ratio 40.3% 40.1% -
*1
Note: PPA stands for Purchase Price Allocation.It is an accounting process of valuating and allocating acquired assets and liabilities to fair prices.
Notes 1) Figures represent those which KMC’s business Results are excluded2) KMC’s segment and operating income (losse) include temporary expenses in the table on the right.3) Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.
¥100.0/USD¥123.0/EUR¥15.8/RMB
¥111.2/USD¥129.6/EUR¥16.8/RMB *1
*2
*2
FY2017Results
FY2018 Projection
Depreciation after PPA * (40.2) (8.0)
Integration expenses etc. (7.5) (2.5)
Total (47.8) (10.5)
*2
*2
Billions of yen
・ Consolidated net sales will remain about flat at JPY2,503.0 billion from FY2017.・ Operating income will increase by 24.8% to JPY339.0 billion. Operating income ratio will be 13.5%, an improvement of 2.7 points.・ Net income will increase by 15.1% to JPY226.0 billion.
15
FY2017Results
FY2018Projection
Changes
KomatsuConventional KMC Komatsu
Conventional KMC increase(decrease) % Change
Net sales 2,501.1 2,183.2 317.8 2,503.0 2,188.0 315.0 +1.9 +0.1%
Construction, mining & utility equipmentRetail finance
Industrial machinery & others
2,280.9[2,267.3]
60.3[49.6]185.4
[184.1]
1,963.1[1949.4]
60.3[49.6] 185.4
[184.1]
317.8[317.8]
-
-
2,270.0[2,249.0]
53.0[48.0] 208.0
[206.0]
1,955.0[1,934.0]
53.0[48.0] 208.0
[206.0]
315.0[315.0]
-
-
(10.9)[(18.3)]
(7.3)[(1.6)]+22.6
[+21.9]
(0.5)%[(0.8)%](12.1)%[(3.3%)]+12.2%
[+11.9%]
Elimination (25.5) (25.5) - (28.0) (28.0) - (2.5) -
Segment profit 302.9 315.4 (12.4) 345.0 319.5 25.5 +42.1 +13.9%
Construction, mining & utility equipmentRetail financeIndustrial machinery & others
275.9
12.914.4
288.4
12.914.4
(12.4)
--
318.0
12.018.0
292.5
12.018.0
25.5
--
+42.1
(0.9)+3.6
+15.2%
(7.4)%+24.5%
Corporate & elimination (0.4) (0.4) - (3.0) (3.0) - (2.6) -
14.7%
21.5%
14.4%
12.1 %
21.5%
12.1%
7.8% 7.8%
Billions of yen
% [ ]: Sales after elimination of inter-segment transactions: Profit ratio
(3.9)%
(3.9)%
Projection for Segment Sales and Profit of FY2018
8.1%
8.1%
15.0%
22.7%
14.6%
14.0%
22.7%
13.8%
8.7% 8.7%
¥111.2/USD¥129.6/EUR¥16.8/RMB
¥100.0 /USD¥123.0/EUR¥15.8/RMB
・Construction, Mining & Utility Equipment: Sales will decline by 0.5% to JPY2,270.0 billion, while segment profit should advance by 15.2% to JPY318.0 billion. Segment profit ratio should improve by 1.9 points to 14.0%.
・Retail Finance: Revenues will decline by 12.1% to JPY53.0 billion. Segment profit will also decrease by 7.4% to JPY12.0 billion.・Industrial Machinery & Others: Sales will increase by 12.2% to JPY208.0 billion.. Segment profit should advance by 24.5% to JPY18.0 billion.
Conditions of three business segments:■ Construction, Mining & Utility Equipment・ Although we anticipate increased sales and price hikes especially in Strategic Markets, sales should remain flat from FY2017 as adversely affected by foreign
exchange rates. Segment profit should improve, supported b a sharp drop of adverse effects related to temporary expenses of KMC as well as an increase of volume of sales and price hikes by conventional Komatsu.
■ Retail Finance・While assets should increase in North America, both revenues and segment profit will decline, as adversely affected by foreign exchange rates. ■ Industrial Machinery & Others・We project both sales and segment profit will improve, supported by increased sales of machine tools and market introduction of new Servo presses.
16
Japan Japan
North America North
America
Europe Europe
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
FY2017 FY2018Projection
Billions of yen Japan North America Europe Latin
America CIS China Asia Oceania Middle East Africa Total
KomatsuConventional 315.6 403.2 166.4 241.3 102.7 149.7 294.6 140.8 39.3 95.3 1,949.4
KMC 0.0 134.9 14.0 73.3 5.7 15.0 3.9 41.1 0.2 29.3 317.8
FY2017(A) 315.6 538.2 180.4 314.7 108.5 164.7 298.6 181.9 39.5 124.6 2,267.3Komatsu
Conventional 313.0 362.0 167.0 219.0 100.0 173.0 326.0 134.0 43.0 97.0 1,934.0
KMC 0.0 128.0 24.0 62.0 4.0 17.0 2.0 48.0 0.0 30.0 315.0
FY2018(B)Projection 313.0 490.0 191.0 281.0 104.0 190.0 328.0 182.0 43.0 127.0 2,249.0
Change(B-A) (2.6) (48.2) +10.5 (33.7) (4.5) +25.2 +29.3 +0.0 +3.4 +2.3 (18.3)
2,267.3
2,249.0
PlusMinus
FY2017 YoY Comparison (Conventional)
Traditional Markets Strategic Markets
15%
22%
14% 12%
8%2%
5%
TraditionalMarkets46%
Strategic Markets54%
Billions of yen
8%
2%
13%
14%
TraditionalMarkets44%
Strategic Markets56%
2,267.3 2,249.0
14%
8%
5%8%
8%
24%
7%
5% 6%
Construction, Mining & Utility Equipment: Projection for Sales (To Outside Customers) for FY2018
FY2018Projection
(18.3)[(0.8)%]
(2.6)[(0.9)%]
(48.2)[(9.0)%]
+10.5[+5.8%]
(33.7)[(10.7)%]
(4.5)[(4.2)%]
+25.2[+15.3%]
+29.3[+9.8%]
+0.0[+0.0%]
+3.4[+8.7%]
+2.3[+1.9%]
※ ※ ※ ※ ※ ※ ※※※
・Overall sales, including those of KMC, to outside customers will decline by 0.8% from FY2017, to JPY2,249.0billion. When KMC’s sales are excluded, sales will amount to JPY1,934.0 billion.
・While sales should increase, centering on Strategic Markets, such as China and Asia, overall sales should remain about flat from FY2017, as adversely affected by foreign exchange rates. When the foreign exchange effects are excluded, sales should increase in all regions except for Japan.
・The ratio of sales in Strategic Markets should increase to 56% of total sales.
※ Region where sales will increase, when foreign exchange effects are excluded.
17
2,280.9 2,270.0
1,500
2,000
2,500
FY17 FY18
275.9
318.0
200
250
300
350
FY17 FY18
14.0%12.1%
SalesFY2017 vs. FY2018(Projection)
Segment profitFY2017 vs. FY2018(Projection)
Billions of yen
Billions of yen
Volume, etc.
+106.6
Selling price+24.4
+42.1 billion yen
Positive factorsNegative factor
Foreign exchange
rate(146.0)
Volume, product
mix, etc. +29.0
Fixed costs(3.7)
Selling price+24.4
Foreign exchange
rate(46.0)
Segment profit ratioProjection
Projection
Construction, Mining & Utility Equipment: Causes of Difference in Projected Sales & Segment Profit
New additions to
consolidation+6.9
New additions to
consolidation+0.5
¥111.2/USD¥129.6/EUR¥16.8/RMB
¥100.0/USD¥123.0/EUR¥15.8/RMB
KMC(2.8)
KMC+37.9
(10.9) billion yen
Positive factorsNegative factor
・While sales should merit from increased volume of sales and price hikes, we project that sales will decline by JPY10.9 billion from FY2017, as adversely affected by foreign exchange rates. Segment profit should advance by JPY42.1 billion, as increased volume of sales and price hikes will more than offset the adverse effects of foreign exchange rates.
・Segment profit ratio should improve by 1.9 points to 14.0%.
Komatsu (conventional) Komatsu (conventional)
Volume, productmix,itc. +27.2Foreign exchangerate (30.0)
Foreign exchange rate (1.8)Temporary expenses +37.3Others +2.4
18
50
%
50
%
Surface Underground
Construction, Mining & Utility Equipment: Projection for KMC’s Business Result & Sales
Annual Sales & Operating Income Ratio
Projection
FY2016Results (A)(Reference)
¥108.6/USD
FY2017Results (B)
¥111.2/USD
FY2018Projection (C)
¥100.0/USD
Changes(B-A) (Reference) Changes(C-B)
increase(decrease) % Change increase
(decrease) % Change
Net sales 266.2 317.8 315.0 +51.6 +19.4% (2.8) (0.9)%Equipment 50.6 61.1 72.6 +10.5 +20.8% +11.5 +18.8%Parts 97.2 113.4 109.3 +16.2 +16.7% (4.1) (3.6)%Service etc. 118.3 143.3 133.0 +25.0 +21.1% (10.3) (7.2)%
Operating income (loss) <excluding Temporary Expenses> 13.4 35.3 36.0 +21.9 +163.4% +0.7 +2.0%
Temporary Expenses (negative figure) (10.2) (47.8) (10.5) (37.6) - +37.3 -
Depreciation after PPA - (40.2) (8.0) (40.2) - +32.2 -Integration expenses etc. (10.2) (7.5) (2.5) +2.7 - +5.0 -
Operating income (loss) <including Temporary Expenses> 3.3 (12.4) 25.5 (15.7) - +37.9 -
Billions of yen
(3.9)%
11.1%
Projection
FY2017 Sales by region (To Outside Customers)
*1: November to October (former Joy Global Inc.ʼs fiscal year)*2: April to March (Komatsu's fiscal year )
*1 *2
KMC
Billions of yen
Millions of USD
FY2017 Sales by Segment
NorthAmeric
a43%
Europe4%
LatinAmeric
a23%
CIS2%
China5%
Asia1%
Oceania
13%
Africa9%
317.8 Billions of yen
1,318 1,379 1,348 1,318 1,198 1,002 1,090 1,290 1,330
1,299 1,571 1,409 1,272 1,158 853 895 1,019 1,093
1,785 2,709
2,254 1,187
815 515 465 548
726
4,404
5,6615,013
3,7783,172
2,371 2,4522,858 3,150
21.5% 21.8%19.4%
15.1%10.3%
3.2% 5.1%11.1%
11.4%
5.1%
11.1% 11.4%
-30.0%
-10.0%
10.0%
0
2,000
4,000
6,000
8,000
FY11 FY12 FY13 FY14 FY15 FY16 FY16 FY17 FY18 FY16 FY17 FY18
Equipment
Parts
Service,etc.
Operating income ratio
50.6
118.3
97.2
266.2 61.1 72.6113.4
143.3
109.3
133.0
317.8 315.0
1.2%
5.1%
8.1%
11.4%
・ For FY2017, sales increased by 19.4% from FY2016, to JPY317.8 billion. Operating loss totaled JPY12.4 billion, including temporary expenses. ・ For FY2018, we project sales will decline by 0.9% from FY2017, to JPY315.0 billion. Operating income should amount to JPY25.5 billion,
reflecting substantially reduced temporary expenses.
※1: Stated figures in “FY2016 results” is created based on Komatsu fiscal year.※2: PPA stands for Purchase Price Allocation. It is an accounting process of valuating and
allocating acquired assets and liabilities to fair prices. ※3: Depreciation after PPA related to inventories, JPY(25.8) billion.
※1
※2 ※3
19
Construction, Mining & Utility Equipment: KMC’s Business Performance(Major Synergy Effects in the First Year of Integration)
• Confirmed more-than-anticipated synergy effects worth about JPY2,5 billion in FY2017, the first year of integration (incl. benefits after FY2017) • Achieved cost reduction by wining new orders for equipment, parts, service and Reman/rebuilt* parts, by engaging in joint purchase and by
integrating funding.
Supply chain
Service, Reman/Rebuild* Back office
• Reduced funding cost by integrating with Komatsu America Corp.
• Reduced insurance and business trip arranging fees.
• Reduced procurement expenses through joint purchase of steel and other materials.
• Improved cash management of KMC’s subsidiary in China in Komatsu’s cash management system.
• Curtailed costs by consolidating back-office operations.
Sales of equipment and parts
• Increased sales of parts by using them in KMC’s products.
• Increased sales of service and rebuild by effectively using the facilities of the two.
Synergy effects confirmed in FY2017 About JPY2.5 billion on a pre-tax income basis
incl. benefits after FY2017
• Won an order for KMC-made rope shovel in Latin America by capitalizing on the relationship of trust with a customer..
* Reman/Rebuild: Remanufacturing and rebuilding of parts and components.
Estimated synergy effects (FY2021 target): About 10% of KMC’s total sales
Peru
KMC
USAAustralia
20
Japan JapanEurope EuropeChina China
Oceania OceaniaOthers Others
North America
North America
0
100
200
300
400
500
600
700
800
90060.3
53.0
12.9 12.0
0
10
20
30
40
50
60
70Sales Segment profit
728.5822.3
FY2018FY2017
Billions of yenRevenues
FY2017 vs. FY2018 (Projection) Assets
Mar 31, 2018 vs. Mar 31, 2019 (Projection) Billions of yen
Mar 31, 2018 Mar 31, 2019
Billions of yen 2018/3E 2019/3EProjection Changes
Interest-bearing debt 546.0 657.5 +111.5
Interest-bearing debt, net 542.6 651.7 +109.0
Net D/E ratio 3.50 4.70 +1.20pts.
FY2017 FY2018Projection Changes
ROA 1.9% 1.6% (0.3)%
Projection Projection
Retail Finance Business: Assets, Revenues and Segment Profit for FY2018
¥106.3/USD¥131.0/EUR¥17.0/RMB
¥111.2/USD¥129.6/EUR¥16.8/RMB
¥100.0/USD¥123.0/EUR¥15.8/RMB
¥100.0/USD¥123.0/EUR¥15.8/RMB
・Assets should increase, mainly due to increased sales of equipment, especially in North America.・Both revenues and segment profit will decline, mainly affected by foreign exchange rates.
21
185.4 208.0
0
100
200
FY2017 FY2018
Sales Segment profitBillions of yen
Billions of yen
(%):Segment profit ratio
Industrial Machinery & Others: Sales and Segment for FY2018
ProjectionProjection
FY2017FY2018
Projection
Changesincrease
(decrease)Change
%Komatsu Industries Corp., etc.[total of press and sheet-metal machines] 51.4 61.5 +10.0 +19.5%
Komatsu NTC Ltd.[represented by wire saws]
62.9[8.6]
67.9[7.8]
+4.9 [(0.8)]
+7.9%[(9.8)%]
Gigaphoton 37.1 40.5 +3.3 +9.1%
Others 33.7 38.0 +4.2 +12.5%
Total 185.4 208.0 +22.5 +12.2%
Billions of yen
Breakdown of sales
14.4 18.0
7.8% 8.7%
-50
-40
-30
-20
-10
0
10
0
5
10
15
20
25
30
FY2017 FY2018
・We project that sales will increase by 12.2% from FY2017, to JPY208.0 billion, and segment profit by JPY3.5 billionto JPY18.0 billion.
22
-3% +2%+8% +7%
-5%-4% -9%
-19%
-16%
-18%
-11% -8%-7%
-1% +3%
+25% +27%+27% +28%
+17%
-180%
-150%
-120%
-90%
-60%
-30%
0%
30%
60%
90%
120%
0
30,000
60,000
90,000
120,000
150,000
FY13/1QFY13/2QFY13/3QFY13/4QFY14/1QFY14/2QFY14/3QFY14/4QFY15/1QFY15/2QFY15/3QFY15/4QFY16/1QFY16/2QFY16/3QFY16/4QFY17/1QFY17/2QFY17/3QFY17/4Q
Japan N.AmericaEurope ChinaOthers Y-O-Y growth rate
+13% +15%
-20% -20%
+45%
+5%
-7%
+3%
-9%-14%
+4%
+24%
-60%
-40%
-20%
0%
20%
40%
60%
0
100,000
200,000
300,000
400,000
500,000
600,000
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Japan N.AmericaEurope ChinaOthers Y-O-Y growth rate
100
80
64
9297
9093
8472
Quarterly demand for 7 major productsAnnual demand for 7 major productsUnits UnitsGrowth rate Growth rate
Note: Estimated by Komatsu
FY17:+24%FY18:+5%〜+10*% (Projection)
:FY07=100Index
4Q: +17%
Projection
76
Construction and Mining Equipment: Actual and Projected Demand for 7 Major ProductsKomatsu (Conventional)
95
・In FY2017, global demand increased by 24%. ・In FY2018, we expect global demand should grow by 5% to 10% from FY2017.
23
0
4,000
8,000
12,000
FY13/1Q2Q 3Q 4Q FY14/1Q2Q 3Q 4Q FY15/1Q2Q 3Q 4Q FY16/1Q2Q 3Q 4Q FY17/1Q2Q 3Q 4Q
Rental companiesRegular 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%
FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
2Q 3Q 4Q FY16/1Q
2Q 3Q 4Q FY17/1Q
2Q 3Q 4Q
Demand (units) Y-o-Y change (%)156
:FY07/4Q=100 4Q: -31%Index
-43%
-23%
Demand for new equipment (7 major products) and construction investment
Construction investmentTrillion of yen
Demand for new equipment/Export of used equipment (Units)
[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
Quarterly demand for 7 major products
Quarterly demand for hydraulic excavators (Rental & Regular uses)
Y-O-Y growth rate
↓
Rental
Regular
Y-O-Ygrowth rate Units
FY17:+5%FY18:-5%〜+/-0% ( Projection)
Units
83 101100
Projection
Construction and Mining Equipment: Demand in Major Markets (1) JapanKomatsu (Conventional)
69
Exports of used equipmentDemand for new
equipment
Government construction
Private-sector non-residentialPrivate-sector residential
・In FY2017, demand increased by 5% from FY2016. In the second half period of FY2017, demand for new equipment declined mainly due to the reactionary drop from pre-buy demand before new emission controls (effective September 2017) in Japan in the first half period.
・We project demand will decline by 5% to +/-0% in FY2018.
24
0
20,000
40,000
60,000
80,000
FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18 0%
20%
40%
60%
80%
100%
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Others Construction Road Mining & energy Rental-Regular
Rental-distributor(DORF)
-30,000
-20,000
-10,000
0
10,000
20,000
30,000
-60%
-40%
-20%
0%
20%
40%
60%
FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
2Q 3Q 4Q FY16/1Q
2Q 3Q 4Q FY17/1Q
2Q 3Q 4Q
Demand (units) Y-o-Y change (%)
106 113 102
Index :FY07/4Q=100
98
+13%
+15%
050100150200250
4Q: +18%
+29%
[Source]: Demand for 7 major products estimated by Komatsu
USACanada
Demand for 7 major products(Units)
Demand for 7 major products and US housing starts
Housing starts
FY17:+15%FY18:+5%〜+10% ( Projection)
Housing starts in ten thousands
Quarterly demand for 7 major products
Breakdown of demand by segment (Unit basis)
Y-O-Ygrowth rate
Units
Rental
Mining & energy
Others
Y-O-Y growth rate
Projection
Construction and Mining Equipment: Demand in Major Markets (2) North AmericaKomatsu (Conventional)
116
・In FY2017, North American demand should have increased by 15% from FY2016. ・In the United States, demand continued to grow steadily, centering on the infrastructure development and energy-related sectors. Demand also
increased in the rental industry, where demand had been sluggish.・We project demand will increase by 5% to 10% in FY2018 from FY2017.
25
0
10,000
20,000
30,000
40,000
50,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
SouthernEasternOther Western CountriesNorthernThe UK., France, and Germany
5453
Index :FY07/4Q=100
68
4Q: +7%
Annual demand for 7 major products Quarterly demand for 7 major products
Region demand for 7 major products (Excl. 6t class)
Y-O-Ygrowth rate
Units
Units
Units
FY17:+8%FY18:+3%〜+8% (Projection)
[Source]: Demand for 7 major products estimated by Komatsu
Projection
05,000
10,00015,00020,00025,00030,00035,000
FY16(Apr.-Feb.)
FY17(Apr.-Feb.)
57
Construction and Mining Equipment: Demand in Major Markets (3) EuropeKomatsu (Conventional)
73
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
-10,000
-5,000
0
5,000
10,000
15,000
-40%
-20%
0%
20%
40%
60%
FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
2Q 3Q 4Q FY16/1Q
2Q 3Q 4Q FY17/1Q
2Q 3Q 4Q
軸ラ
ベル
主要7建機需要(台数) 前年同期⽐(%)Demand(unites) Y-o-Y change(%)
・We believe that European demand will have increased by 8% in FY2017 from FY2016.・ Demand remained firm in a major market of Germany as well as in northern Europe. ・In FY2018, demand should remain steady and grow by 3% to 8% from FY2017.
26
0
20,000
40,000
60,000
80,000
100,000
120,000
-20,000
-10,000
0
10,000
20,000
30,000
-100%
-50%
0%
50%
100%
150%
FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
2Q 3Q 4Q FY16/1Q
2Q 3Q 4Q FY17/1Q
2Q 3Q 4Q
Demand (units) Y-O-Y growth rate
KOMTRAX in China : Average operating hours per month
-14%
3%
29%
1%6% 10%6% 10%12%
-2%
17%9%
-25%
83%
6%14%
7%3%
6%
-2%
2% 0%8%
2%
46%
-49%
-12%
-80%-60%-40%-20%0%20%40%60%80%
0
50
100
150
200 Operating hours (left scale)Y-o-Y (right scale)
4038
Index :FY07/4Q=100
8486
Quarterly demand for 7 major products (Foreign makers)Y-O-Ygrowth rate Units
Monthly demand for hydraulic excavators: Total of 6-ton and larger models)
[Source]: Demand for 7 major products and hydraulic excavators estimated by Komatsu
HoursUnits
Units
FY17:+80%FY18:+20%〜+30% (Projection)
<Chinese New Year>: Jan. 31, 2014: Feb. 19, 2015: Feb. 8, 2016: Jan. 28, 2017: Feb. 16, 2018: Feb. 5, 2019
(month)
4Q: +45%
Projection
Annual demand for 7 major products (Foreign makers)
Construction and Mining Equipment: Demand in Major Markets (4) ChinaKomatsu (Conventional)
121
0
5,000
10,000
15,000
4 5 6 7 8 9 10 11 12 1 2 3
FY2013
FY2014
FY2015
FY2016
FY2017
・In FY2017, demand expanded by 80% from FY2016. ・Demand for construction equipment continued to grow, supported by good progress of infrastructure development. ・With respect to full-year demand in FY2018, we anticipate it will increase by 20% to 30% from FY2017.
27
-6,000
-3,000
0
3,000
6,000
9,000
-80%
-40%
0%
40%
80%
120%
160%
FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
2Q 3Q 4Q FY16/1Q
2Q 3Q 4Q FY17/1Q
2Q 3Q 4Q
Indonesia Others Malaysia Thailand Y-o-Y change (%)
0
10,000
20,000
30,000
40,000
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Indonesia
Others
Malaysia
Thailand
117 97
Index : FY07/4Q=100
132
Annual demand for 7 major products Quarterly demand for 7 major products
[Source]: Demand for 7 major products estimated by Komatsu
UnitsUnits
Y-O-Ygrowth rate
Indonesia: Demand for construction & mining equipment by industrial sectorUnits
FY17:+28%FY18:+8%〜+13% (Projection)
4Q : +26%
Projection
0
1000
2000
3000
4000
5000
6000FY12/1Q2Q 3Q 4Q FY13/1Q2Q 3Q 4Q FY14/1Q2Q 3Q 4Q FY15/1Q2Q 3Q 4Q FY16/1Q2Q 3Q 4Q FY17/1Q2Q 3Q 4Q
ForestryAgricultureConstructionMining
4Q : +46%FY17: +63%
Construction and Mining Equipment: Demand in Major Markets (5) Southeast AsiaKomatsu (Conventional)
148117
:
・In FY2017, Southeast Asian demand advanced by 28% from FY2016.・In Indonesia, the largest market of the region, demand for mining equipment increased sharply.・We believe demand should remain steady in FY2018, increasing by 8% to 13% from FY2017
28
6%
-34%
39% 51%
-5%
-51%
-25%-15%
-3%
60%
-400%
-350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
0
2,000
4,000
6,000
8,000
10,000
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Middle East & Africa
Oceania
Asia
Japan&China
Europe&CIS
Latin America
N. America
Y-o-Y change
Annual demand for mining equipment Quarterly demand for mining equipment
Units
Y-o-Y change
・Dump trucks: 75 tons (HD785) and larger・Bulldozers: 525HP (D375) and larger・Excavators: 200 tons (PC2000) and larger
Units Y-o-Y change
FY17:60%FY18:+10%〜+20% (Projection)
・Wheel loaders: 810HP (WA800) and larger ・Motor graders: 280HP (GD825) and larger
Note: Demand estimated by Komatsu
Projection
Construction and Mining Equipment: Actual and Projected Demand for Mining Equipment Komatsu (Conventional)
-55%-54%
-49%-45%
-33%-22%
-26%
-15%-2%
-24%
-12%-20%
-33%
-7%
+17%+12%
+96%
+51%+50%
+53%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
0
500
1,000
1,500
2,000
FY13/1Q2Q 3Q 4Q FY14/1Q2Q 3Q 4Q FY15/1Q2Q 3Q 4Q FY16/1Q2Q 3Q 4Q c 2Q 3Q 4Q
Middle East & Africa
Oceania
Asia
Japan&China
Europe&CIS
Latin America
N. America
Y-o-Y change
4Q: +53%
・In FY2017, we estimate that global demand will have expanded by 60% from FY2016. ・Demand continues to grow in Indonesia, Oceania, Africa and some other regions. ・We project that demand will advance by 10% to 20% in FY2018 from FY2017.
29
19.418.3
23.825.1
31.026.127.628.0
45.745.8
50.7
60.2
58.865.9
65.970.2
33.226.6
34.4
50.447.4
53.473.3
64.8
33.1 35.4
35.839.026.8
28.9
29.628.114.1 12.5
19.814.7
120.9118.7
128.8130.8
115.9110.1
113.7107.5
98.390.7
108.9
135.8
211.1222.3
252.2244.5-7%
-0%+20%
-13%
-4%
-7%
-12%
-18%
-15%-18% -4%
+26%
+115%+145%
+132%
+80%
+40%
+60%+53%
+20%
-600%
-550%
-500%
-450%
-400%
-350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
150%
0
50
100
150
200
250
300
FY14/1Q2Q 3Q 4Q FY15/1Q2Q 3Q 4Q FY16/1Q2Q 3Q 4Q FY17/1Q2Q 3Q 4Q FY16/1Q2Q 3Q 4Q FY17/1Q2Q 3Q 4Q
KMC Middle East & AfricaOceania AsiaJapan & China Europe & CISLatin America N. America
Y-o-Y change(including KMC)Y-o-Y change(Conventional)
96.391.786.6
112.891.7
196.1214.9
202.4260.7
245.2
206.8
140.6144.6
238.9
251.0
143.3133.0
113.4109.3
361.5417.0
554.0614.5
506.3499.3
447.3433.6
930.2 902.9 61.172.6
-14%
+15%+33%
+11%
-18%
-1%
-10%
-3%
+115%
-3%
+41%
-4%
-350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
0
200
400
600
800
1,000
1,200
1,400
FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
FY14FY15FY16FY17FY18
KMC Middle East & Africa
Oceania Asia
Japan & China Europe & CIS
Latin America N. America
Y-o-Y change(including KMC) Y-o-Y change(Conventional)
587.9612.4
Annual sales of mining equipment (incl. parts and service, etc.) Quarterly sales of mining equipment (incl. parts and service, etc.)
Y-o-Y changeBillions of yen
Billions of yenY-o-Y change
137.2145.3
Equipment(KMC)
Parts(Conventional)
Equipment(Conventional)
Service, etc.(Conventional)
Service, etc.
(KMC)Parts(KMC)
Equipment(KMC)
Parts(Conventional)
Equipment(Conventional)
Service, etc.(Conventional)
Service, etc.
(KMC)Parts(KMC)
Projection Projection
166.9
Construction and Mining Equipment: Sales of Mining Equipment
163.0
←conventional←including KMC
・For FY2017, sales expanded by 115% from FY2016, to JPY930.2 billion. When KMC’s sales are excluded, sales advanced by 41% to JPY612.4 billion.
・For FY2018, we anticipate sales of JPY902.9 billion, down 3% from FY2017. When KMC’s sales are excluded, sales should decrease by 4% to JPY587.9 billion.
30Construction, Mining & Utility Equipment : Sales of Parts
Annual sales of parts Quarterly sales of partsBillions of yen
Y-o-Y change (%) Y-o-Y change (%)Billions of yen
Projection
105.0 113.0
118.0 138.5
158.0 171.5
187.4 196.1
214.9
202.4
260.7
245.2 154.5
152.0 120.0 141.5
159.0
148.0
176.3 191.1
182.6 176.5
202.7 195.5
113.4 109.3
259.5 265.0 238.0
280.0 317.0
319.5 363.7
387.2 397.5
378.8
576.8 550.0
+2%
-10%
+18% +13%+1% +14%+6%+3%
-5%
+52%
-5%
+22%
-5%
-250%
-200%
-150%
-100%
-50%
0%
50%
0
100
200
300
400
500
600
700
800
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
KMC Constrution equipmentMining equipmentYoY(includign KMC) YoY(conventional Komatsu)
45.846.4
50.853.1
54.9
52.756.9
50.445.7
45.8
50.760.258.8
65.8
65.970.2
45.746.4
49.249.8
47.246.144.4
44.942.1
42.0
43.049.3
49.4
50.950.6
51.8
26.828.929.6 28.1
91.6 92.8
100.0 102.9
102.1 98.8
101.3 95.3
87.8 87.8 93.8
109.5
135.0 145.7
146.1 150.0
-3%
+5%
+14%+11%+11%+7%
+1%
-7%-14%-11%
-7%
+15%
+54%
+66%+56%
+37%
+23%
+33%+24%
+11%
-180%
-160%
-140%
-120%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
0
50
100
150
200
250
FY14/1Q
2Q 3Q 4Q FY15/1Q
2Q 3Q 4Q FY16/1Q
2Q 3Q 4Q FY17/1Q
2Q 3Q 4Q
KMC Construction equipmentMining equipment YoY(including KMC)YoY(conventional Komatsu)
・For FY2017, sales of parts expanded by 52% from FY2016, to JPY576.8 billion. When KMC’s sales are excluded, Komatsu conventional sales increased by 22% to JPY463.4 billion.
・For FY2018, we anticipate sales will decline by 5% to JPY550.0 billion, as adversely affected by foreign exchange rates, while we should be able to capitalize on aftermarket demand.
incl.Komatsu(conventional) and KMC
463.4 440.7
108.2116.7
116.5121.9
31
R&D Expenses Fixed costsInvestment in production and other facilities* and depreciation
52.756.5
70.574.0
Komatsu (Conventional)
Actual and Projected Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs
Billionsof yen
Billionsof yen
Billionsof yen *Excl. investment in rental assets
67.573.6
59.6 58.7 59.3
10.8 10.7 10.34.1 4.4
3.9% 2.9% 3.0%
0
20
40
60
80
100
FY2016 FY2017 FY2018Projection
KMC
Industrial Machinery&others
Construction, Mining6utility Equipment and Retail finance
Depreciation
47.2 47.6 52.5
5.5 4.75.04.1
10.0
49.2
60.1 58.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
0
20
40
60
80
100
FY2016 FY2017 FY2018Projection
KMC
Construction, Mining&Utility Equipment and Retail finance
Industrial Machinery&Others
Depreciation
0
100
200
300
400
500
FY2016 FY2017 FY2018Projection
Komatsu(Conventional) KMC
・Capital investment : We plan to promote restructuring of KMC’s production and respond to labor shortage at Japanese plants. ・R&D expenses: We will continue to focus investment in the development of key components, application- and region-specific models
as well as next-generation models based on innovation, such as unmanned models.・Fixed costs: Fixed costs will increase, as affected by the addition of KMC and other companies to consolidated accounting as well as
up-front investment in ICT-driven work reforms.
32
Appendix
33
63.4 62.1 56.2 60.1 49.7 49.3 55.6 53.929.7 34.3 42.8
67.0
13.8%12.9%
11.4% 11.1% 11.1% 11.0% 11.6% 11.1%
7.7% 8.4%10.0%
11.6%
9.3% 10.1% 11.7% 12.0%
13.4% 12.9% 12.6%
-50
0
50
100
150
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
Operating profit (KMC) Operating profit (Komatsu conventional)Operating profit ratio (including KMC) Operating profit ratio (Komatsu conventional)
-10.2 -5.2 -6.2 -4.5 -4.8 -3.6 -6.5 -6.1 -2.5 -2.4 -3.3 -5.3 -10.0 -5.8 -4.7 -4.9
411.8 416.7 433.8 467.3 392.3 380.5 417.4 411.6 345.1 353.4 379.0
498.8 441.0 472.4 509.1 540.5
15.2 11.7 12.9 13.6 13.8 13.5
13.4 13.1 11.8 11.6 12.6
12.9 17.5
13.6 14.7 14.3
43.3 59.0 53.565.6
44.7 56.053.6 65.7
34.7 44.2 42.2
69.738.6 40.5
42.363.9
73.9 76.985.3
81.5
-100
0
100
200
300
400
500
600
700
800
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
KMCIndustrial Machinery & OthersRetail FinanceConstruction, Mining & Utility Equipment(Komatsu conventional)Elimination
¥/USD
¥/EUR
¥/RMB
14/1Q 14/2Q 14/3Q 14/4Q102.5 102.8 114.1 119.2140.9 137.7 142.8 136.916.4 16.6 18.5 19.0
16/1Q 16/2Q 16/3Q 16/4Q109.8 102.9 106.9 114.7124.3 114.6 116.7 121.416.9 15.4 15.7 16.7
460.2
15/1Q 15/2Q 15/3Q 15/4Q121.3 122.6 121.2 118.0133.0 136.2 132.3 128.019.6 19.5 19.0 17.9
482.3 494.0542.0
446.1 446.3 478.0 484.4389.2
<Appendix>Quarterly Sales and Operating Income
Quarterly sales (since FY2014)Billions of yen
Billions of yen
Exchange rates 17/1Q 17/2Q 17/3Q 17/4Q
111.2 110.9 113.0 109.6121.6 129.9 133.2 133.716.3 16.6 17.0 17.2
406.8 430.5
576.2561.2
52.4 60.2
597.7646.8
75.5 83.3
695.3
13.1%
Quarterly operating income(Since FY2014)
34
17% 21% 21% 24% 22% 23% 23% 29% 23% 25% 22% 25% 18% 21% 19% 19%
22% 18% 16% 17% 15% 13% 13% 14% 15% 15% 15% 19%13% 12% 12% 17%
13% 12% 12% 11% 10% 9% 8% 9% 10% 8% 9%10%
12% 12% 16% 13%
48% 49% 51% 48% 53% 55% 55% 48% 52% 52% 53% 45% 57% 55% 53% 51%
0%
20%
40%
60%
80%
100%
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
Parts, etc Mining equipment Construction equipment(Stragegic Markets) Construction equipment(Traditional Markets)
53.2 55.1 51.0 51.6 42.4 40.7 41.4 44.3 26.3 31.2 38.965.1
92.0
12.9% 13.2% 11.8% 11.0% 10.8% 10.7% 9.9% 10.8% 7.6% 8.8% 10.3% 13.1% 9.3% 10.2% 13.5% 14.8%13.8% 13.3% 14.8%
60% 55% 53% 51% 54% 48% 47% 45% 50% 47% 51% 53% 55% 52% 54% 56%
(50)
0
50
100
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
Segment profit (KMC) Segment profit (Komatsu conventional)Segment profit ratio (including KMC) Segment profit ratio (Komatsu conventional)
47.9 16.5%
411.8 416.7 433.8 467.3392.3 380.5 417.4 411.6 345.1 353.4 379.0
498.8
441.0 472.4 509.1 540.5
73.9 76.9 85.3 81.5
0100200300400500600
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
KMC Komatsu conventional515.0 549.3
Quarterly Sales
Quarterly segment profit
Billions of yen
Billions of yen
¥/USD
¥/EUR
¥/RMB
14/1Q 14/2Q 14/3Q 14/4Q
102.5 102.8 114.1 119.2
140.9 137.7 142.8 136.9
16.4 16.6 18.5 19.0
15/1Q 15/2Q 15/3Q 15/4Q
121.3 122.6 121.2 118.0
133.0 136.2 132.3 128.0
19.6 19.5 19.0 17.9
Exchange rates
<Appendix>Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit
Breakdown of sales(%)
594.5
55.7 80.1
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
622.0
35
65.3 85.2 92.3 85.2 67.5 80.0 81.2 78.8 59.6 77.7 79.1 84.9 69.1 87.4 78.7 80.4
56.8 68.6 76.6 100.7
75.8 82.9 105.1 106.2
75.6 79.8 80.2
102.6 116.0 131.4 152.1 138.6 39.3
33.732.2
40.4
37.532.7
30.7 38.4
35.829.5 26.2
43.9 43.0
41.6 39.7 56.0
60.164.7
68.570.3
58.4 48.358.2 50.0
49.046.0 51.0
56.8 72.2
77.8 82.0 82.6
14.3 13.6
14.3 11.9
11.5 11.7
13.1 11.2
15.6 14.7 18.2
22.0 27.6
25.6 26.2 29.0
33.4 25.2
22.6 21.6
18.6 13.1
16.4 21.4
18.7 17.3 21.7
39.4 38.3
31.7 43.8 50.8
54.9 48.0
51.3 56.3
52.6 46.5
47.9 42.4
40.2 40.3 50.5
75.5 64.1
68.9 76.9
88.5
34.734.1
31.529.3
25.6 28.1
26.9 26.2
24.0 24.125.8
31.5 45.1
40.0
51.545.2
15.714.8
11.318.8
17.2 14.0
14.6 12.7
9.1 7.16.9
12.57.4
10.1
9.512.5
29.3 25.028.3
29.1
23.7 20.3
17.5 20.8
15.4 14.916.5
24.827.8
31.0
30.934.7
0
100
200
300
400
500
600
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
*1
404.1 413.5429.4
464.2
388.9 378.0
412.1 408.4
343.4
Billions of yen
Africa
Middle East
Oceania
Asia
China
CIS
Latin America
Europe
North America
Japan
¥/USD
¥/EUR
¥/RMB
14/1Q 14/2Q 14/3Q 14/4Q
102.5 102.8 114.1 119.2
140.9 137.7 142.8 136.9
16.4 16.6 18.5 19.0
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
15/1Q 15/2Q 15/3Q 15/4Q
121.3 122.6 121.2 118.0
133.0 136.2 132.3 128.0
19.6 19.5 19.0 17.9
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
351.8376.6
494.4
<Appendix>Construction, Mining & Utility Equipment: Quarterly Sales by Region (To Outside Customers)
510.9
*1 including KMC
545.8*1
591.7*1
*1618.7
36
15.2
11.7 12.9 13.6 13.8 13.5 13.4 13.1 11.8 11.6
12.6 12.9
17.5
13.6 14.7 14.3
02468
101214161820
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
4.2 3.3 3.7 3.23.7 3.7 3.2 2.5 1.8 2.3 2.5
-2.3
3.3 2.5 3.0 4.0
28.0% 28.8% 29.2%24.2% 27.3% 28.0% 24.0%
19.3%15.9%
20.1% 20.2%
-17.8%
18.9% 18.9% 20.6%28.0%
-10
-5
0
5
10
15
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio
Quarterly sales
Quarterly segment profitBillions of yen
Billions of yen
¥/USD
¥/EUR
¥/RMB
15/1Q 15/2Q 15/3Q 15/4Q
121.3 122.6 121.2 118.0
133.0 136.2 132.3 128.0
19.6 19.5 19.0 17.9
14/1Q 14/2Q 14/3Q 14/4Q
102.5 102.8 114.1 119.2
140.9 137.7 142.8 136.9
16.4 16.6 18.5 19.0
Exchange rates 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
<Appendix>Retail Finance: Quarterly Sales and Segment Profit
*1*1*1 *1
*1 Including a loss on allowance recorded for bad debt in China (FY16/1Q: JPY-1.0 bn, 2Q: JPY -0.5bn bn, 3Q: JPY-0.2:bn,4Q: JPY-4.9bn)
17/1Q 17/2Q 17/3Q 17/4Q
111.2 110.9 113.0 109.6121.6 129.9 133.2 133.716.3 16.6 17.0 17.2
37
43.3
59.0 53.5 65.6
44.7
56.0 53.6
65.7
34.7 44.2 42.2
69.7
38.6 40.5 42.3
63.9
0
25
50
75
100
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
3.14.6 3.8 4.5
3.24.2 4.4
7.3
1.7 2.3 2.3
6.0
2.3 2.44.3 5.3
7.3% 7.9% 7.2% 7.0% 7.3% 7.6%8.3%
11.3%
4.9% 5.3% 5.7%8.6%
6.1% 6.1%
10.2%8.3%
-5
0
5
10
15
FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q FY16/1Q 2Q 3Q 4Q FY17/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio
<Appendix>Industrial Machinery & Others: Quarterly Sales and Segment Profit
Quarterly sales
Quarterly segment profit
Billions of yen
Exchange rates
Billions of yen
¥/USD
¥/EUR
¥/RMB
15/1Q 15/2Q 15/3Q 15/4Q
121.3 122.6 121.2 118.0
133.0 136.2 132.3 128.0
19.6 19.5 19.0 17.9
14/1Q 14/2Q 14/3Q 14/4Q
102.5 102.8 114.1 119.2
140.9 137.7 142.8 136.9
16.4 16.6 18.5 19.0
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
38
0%
50%
100%
150%
200%
0%
50%
100%
150%
200%
250%
0%
50%
100%
150%
200%
Orders received/Sales Index
Komatsu America(Mining eqpt)
Komatsu Germany(Mining eqpt)
PC3000, PC4000PC5500, PC7000PC8000
Komatsu Ltd.(Mining eqpt)
HD785, HD1500 PC2000,PC3000, PC4000, WA800 upD375A upGD825A up
730E, 830E, 860E,930E, 960E, 980E
Avg. orders received in value for 6 months/Avg. units shipped in value for 6 months)
<Appendix> Book-to-Bill Ratio for Mining Equipment (6 Months)
39
0%
50%
100%
150%
200%
250%
Orders received/Sales Index
0%
50%
100%
150%
200%
250%
Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)
KMC(Surface)
KMC(Underground)
Rope shovelsBlast hole drillsDraglines, etc.
Continuous minersShearersLoad haul dumpsJumbo drills, etc.
<Appendix> Book-to-Bill Ratio of KMC Mining Equipment (6 Months)
40
0%
50%
100%
150%
200%
14/03 14/06 14/09 14/12 15/03 15/06 15/09 15/12 16/03 16/06 16/09 16/12 17/03 17/06 17/09 17/12 18/03
0%
50%
100%
150%
200%
14/03 14/06 14/09 14/12 15/03 15/06 15/09 15/12 16/03 16/06 16/09 16/12 17/03 17/06 17/09 17/12 18/03
Orders received/Sales Index
Komatsu Industries
Komatsu NTC(Excl. wire saws)
<Appendix> Book-to-Bill Ratio for Industrial Machinery (6 Months)
Avg. orders received in value for 6 months/Avg. units shipped in value for 6 months)
41
<Appendix>Highlights of Results for Fourth Quarter (January – March 2018) of FY2017
Jan.-Mar. 2017 Jan.-Mar.2018
Y-O-Y
KomatsuConventional
KMC increase(decrease)
Change %
Net sales 576.2 695.3 613.7 81.5 +119.0 +20.7%
Segment profit (loss) 68.7 102.1 99.3 2.7 +33.3 +48.5%
Other operating income (expenses) (1.6) (18.7) (18.6) (0.1) (17.0) -
Operating income (loss) 67.0 83.3 80.7 2.6 +16.3 +24.3%
Profit ratio (loss ratio) 11.6% 12.0% 13.1% 3.3% +0.4pts. -
Other income (expenses) (3.8) (6.9) (3.0) -
Income before income taxes 63.2 76.4 +13.2 +21.0%
Net income 45.0 41.3 (3.7) (8.2)%
Billions of yen¥114.7/USD¥121.4/EUR¥16.7/RMB
¥109.6/USD¥133.7/EUR¥17.2/RMB
Depreciation after PPA (3.5)
Integration expenses etc. (3.4)
Total (7.0)
Note: PPA stands for Purchase Price Allocation.It is an accounting process of valuating and allocating acquired assets and liabilities to fair prices.
Notes 1) Figures represent those which KMC’s business results are excluded.
2) KMC’s segment and operating income (losse) include temporary expenses in the table on the right.
3) Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”
*2
*1
*2
*3
Billions of yen
・ Consolidated net sales increased by 20.7% from the corresponding period a year ago, to JPY695.3 billion.・ Operating income advanced by 24.3% to JPY83.3 billion. Operating income ratio improved to 12.0%, up 0.4 percentage points.・ Net income decreased by 8.2% to JPY41.3 billion.
42
<Appendix>Segment Sales and Profit for Fourth Quarter (January – March 2018) of FY2017
Jan.-Mar., 2017 Jan.-Mar., 2018
Changes
KomatsuConventional KMC increase
(decrease) % Change
Net sales 576.2 695.3 613.7 81.5 +119.0 +20.7%
Construction, mining & utility equipmentRetail financeIndustrial machinery & others
[494.4] 498.8 [12.3] 12.9[69.4] 69.7
[618.7] 622.0[12.8] 14.3[63.7] 63.9
[537.1] 540.5 [12.8] 14.3[63.7] 63.9
[81.5] 81.5--
[+124.2]+123.1[+0.4] +1.3[(5.7)] (5.8)
[+25.1%]+24.7%[+3.8%]+10.4%[(8.2)%] (8.4)%
Elimination (5.3) (4.9) (4.9) - +0.3 -
Segment profit 68.7 102.1 99.3 2.7 +33.3 +48.5%
Construction, mining & utility equipmentRetail financeIndustrial machinery & others
65.1(2.3)
6.0
92.04.05.3
89.24.05.3
2.7--
+26.8+6.3(0.6)
+41.3%-
(11.6)%
Corporate & elimination 0.0 0.7 0.7 - +0.8 -
13.1%
(17.8)%
11.9%
8.6%
% [ ]: Sales after elimination of inter-segment transactions: Profit ratio
3.4%
3.4%
Billions of yen
14.8%
28.0%
14.7%
8.3%
16.5%
28.0%
16.2%
8.3%
・ Construction, Mining & Utility Equipment: Sales increased by 24.7% from the corresponding period a year ago, to JPY622.0 billion. Segment profit increased by 41.3% to JPY92.0 billion. Segment profit ratio was 14.8%, an increase of 1.7 percentage points.
・ Retail Finance: Sales increased by 10.4% to JPY14.3 billion. Segment profit increased to JPY4.0 billion.・ Industrial Machinery & Others: Sales decreased by 8.4% to JPY63.9 billion. Segment profit declined by 11.6% to JPY5.3 billion
43
Japan Japan Japan
North America
North America
North America
Europe Europe
EuropeLatin America Latin America
Latin AmericaCIS CIS
CIS
ChinaChina
ChinaAsia
Asia
Asia
Oceania
Oceania
Oceania
Middle East
Middle East
Middle East
Africa
Africa
Africa
0
50
100
150
200
250
300
350
400
450
500
550
600
Jan.-Mar., 2017 Jan.-Mar., 2018(Conventional)
Jan-Mar., 2018(including KMC)
Billions of yen Japan North America Europe Latin
America CIS China Asia Oceania Middle East Africa Total
Jan-Mar.,2017 84.9 102.6 43.9 56.8 22.0 39.4 75.5 31.5 12.5 24.8 494.4Komatsu
Conventional 80.4 102.7 53.1 63.6 26.9 48.0 87.5 34.8 12.4 27.3 537.1increase
(decrease) (4.5) +0.1 +9.2 +6.8 +4.9 +8.5 +11.9 +3.3 (0.1) +2.5 +42.7
KMC 0.0 35.8 2.9 18.9 2.0 2.8 1.0 10.3 0.0 7.3 81.5
Jan.-Mar.,2018 80.4 138.6 56.0 82.6 29.0 50.8 88.5 45.2 12.5 34.7 618.7
537.1
494.4
PlusMinus
Jan.-Mar.,2018
Jan.-Mar.,2017
YoY Comparison (Conventional)
Traditional Markets Strategic Markets
494.4
17%
21%
8%
12%
15%
6%3%5%
19%
15%
Strategic Markets53%
Billions of yen
<Appendix> Construction, Mining & Utility Equipment : Sales by Region (To Outside Customers) for Fourth Quarter (January – March 2018) of FY2017
10%
13%
12%
TraditionalMarkets44%
Strategic Markets56%
Strategic Markets56%
537.1
618.7
9%
13%
16%
14%
7%
9%
22%
(Conventional)
4%
5%2%6%
9%5%
5%8%
2%6%
TraditionalMarkets47%
TraditionalMarkets44%
(4.5)[(5.4)%]
+42.7[+8.6%]
+4.9[+22.6%]
+0.1[+0.1%]
+9.2[+21.0%]
+6.8[+12.0%]
+8.5[+21.6%]
+11.9[+15.9%]
+3.3[+10.5%]
(0.1)[(1.0)%]
+2.5[+10.2%]
・Sales to outside customers by region increased by 25.1% from the corresponding period a year ago, to JPY618.7 billion.
・Sales increased especially in Europe, China and Asia. Sharply affected by an increase in Asian sales, the ratio of Strategic Market increased to 56%.
44
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 https://home.komatsu/en/
・Three domestic sales companies, namely, Komatsu Construction Equipment Sales and Service Japan Ltd., Komatsu Rental Ltd. and Komatsu Forklift Japan Ltd., merged and became Komatsu Customer Support Japan Ltd. on April 1, 2018.