Business Results of FY 2020 for the First 3-Month Period (April … · 2020. 7. 15. · Highlights...
Transcript of Business Results of FY 2020 for the First 3-Month Period (April … · 2020. 7. 15. · Highlights...
1
Jul 30, 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 of FY 2020
for the First 3-Month Period
(April-June, 2020)
【Telephone conference】
Komatsu Ltd. Participants
2Contents
Highlights, Segment Sales and Profits for the First 3-Month Period of FY2020
Construction, Mining & Utility Equipment: Results for the First 3-Month Period of FY2020
Retail Finance: Highlights for the First 3-Month Period of FY2020
Industrial Machinery & Others: Results for the First 3-Month Period of FY2020
Consolidated Balance Sheets
Ⅰ. Coronavirus (COVID-19) Effects on Komatsu Group’s Business <PP3-7>
Ⅲ. Outlook of FY2020 Business Results <PP16-32>
PP4-7:
Appendix <PP33-41>
PP34-38:
PP39-41:
Coronavirus (COVID-19) Effects on Komatsu Group’s Business
Quarterly Results
Book-to-Bill Ratio [Orders Received / Sales (6 Months)]
PP9-10:
PP11-12:
P13:
P14:
P15:
Ⅱ. Business Results for the First 3-Month Period (April-June,2020) of FY2020 <PP8-15>
Projection for FY2020 ending March 31, 2021: Outline and Segment Sales and Profit
Construction, Mining & Utility Equipment: Projection of Segment Sales and Profit .
Retail Finance: Highlights for FY2020
Industrial Machinery & Others: Projection of Segment Sales and Profit
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
Projected Capital Expenditures, Depreciation, R&D Expenses and Fixed Costs
PP17-18:
PP19-20:
P21:
P22:
PP23-28:
PP29-30:
P31:
P32:
3
Ⅰ. Coronavirus (COVID-19) Effects on Komatsu Group’s
Business
4Coronavirus (COVID-19) Effects on Komatsu Group’s Business
1. Effects on operations
<Main production bases with problems, such as halting operations>
1) Production
Base Conditions
Komatsu India Pvt. Ltd. Halting production (March 24 -- July 31). Extending lockdown
2) Sales and service
Items Updates
Operation of
customers’ machinesThe rate of machine operations is steadily returning to last year’s level.
SalesA growing number of sales sites are shifting from teleworking to
regular workstyle or workstyle with conditions.
ServiceRegular workstyle is increasing at parts warehouses as well as service
and workshop sites.
5
1) The first 3-month period
2. Effects on business results
Coronavirus (COVID-19) Effects on Komatsu Group’s Business
2) Projection of full-year results for FY2020 (Outlook of Demand)
Construction,
mining & utility
equipment
Sales:Declined by 25% year-on-year. Declined in all regions, except for China.
Industrial
machinery &
others
Automobile manufacturing: Declined year-on-year, affected by delays or reassessment of
their capital investment.
Semiconductors: Increased year-on-year.
Construction,
mining & utility
equipment Traditional Markets: Anticipating recovery from 3Q.
Strategic Markets: Anticipating recovery from 4Q.
China: Expanded sales for 1Q due to delayed Chinese New Year sales season to February 〜 March. Anticipating steady sales for 2Q and onward.
Industrial
machinery &
others
Automobile manufacturing: Challenging conditions will continue for the full year, due to
delays or curtailment of their capital investment.
Semiconductors: Demand should remain steady.
Vs. FY2019 FY20 Initial projection
(Before COVID-19)Projection (Current)
Demand for 7 Major Products About flat from FY2019 (20)%~(10)%
Demand for Mining Equipment included (20)%~(10)% (20)%~(10)%
6
10069
39 51 65 72 82 81 76 75 82 89 91
100
91
6499
129 122 108 98 81 83105 105 89
100
93
157
234149 88 104 65
42 65116 129
102
0
100,000
200,000
300,000
400,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Traditional Markets Strategic Markets(excluding China) China
100
80
64
(Units)
10092
Current Projection
<Demand for 7 Major Products>
92 97 90 9384
73 76
94 (20%)~(10)%
74~83
2) Projection of full-year results for FY2020 (Outlook of Demand)
:FY07=100Index
Coronavirus (COVID-19) Effects on Komatsu Group’s Business
Source: Estimated by Komatsu
-40%
0%
40%
FY19/1Q 2Q 3Q 4Q
FY20/1Q 2Q 3Q 4Q
FY21/1Q 2Q 3Q 4Q
All regions(excluding China) China
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008 2009 2010
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019 2020
<KOMTRAX in Traditional Markets: Average operating hours per month>
<Y-o-Y growth rate of Demand for 7 Major Products(FY2019〜FY2021>
-40%
0%
40%
FY19/1Q 2Q 3Q 4Q
FY20/1Q 2Q 3Q 4Q
FY21/1Q 2Q 3Q 4Q
Traditional Markets Strategic Markets(excluding China)
Note: Demand in FY21 is based on the assumption that the current rate of growth will continue.
Drop of machine operations
since Oct, 2008
Recovery of machine operations since Aug, 2010
Drop of machine operations
since Jan, 2020
Recovery of machine operations
since Jun, 2020
“Lehman Shock” COVID-19 pandemic
About 2 yrs About 6 mos
(Hours)
Source: Demand for 7 Major Products Estimated by Komatsu
(Hours)
7Coronavirus (COVID-19) Effects on Komatsu Group’s Business
3. Efforts with/after Coronavirus
Items Efforts
Expansion of business
opportunities
Avoidance of
3Cs
Construction equipment: Automation, unmanned operation, and
remote controlling
Worksites: Digitalization of worksite operations
Promotion of
the mid-term
management
plan
Construction equipment: Expansion of DX
SMARTCONSTRUCTION
Mining equipment: Launch of remote controlled loaders and
development of mining platforms
Workstyle reforms Promotion of digital marketing
Expansion of application to teleworking
Proactive use of ICT tools, such as on-line meetings
Consideration of distributing wearable device to employees for their health
management
Reassessment of
dialogues with
stakeholders
On-line IR activities
Consideration of virtual annual shareholders’ meeting
Reassessment of the ways to hold internal meetings (small groups, remote)
8
Ⅱ. Business Results for the First 3-Month Period of FY2020
(April-June,2020)
9
Apr.-Jun.,2019
(A)
Apr.-Jun.,2020
(B)Changes (B-A)
increase
(decrease)
Change
%
Net sales 609.7 458.7 (151.0) (24.8)%
Segment profit 72.7 26.6 (46.1) (63.4)%
Other operating income (expenses) 2.0 0.2 (1.7) -
Operating income 74.7 26.9 (47.8) (64.0)%
Profit ratio 12.3% 5.9% (6.4)pts. -
Other income (expenses) (7.8) 1.5 +9.4 -
Income before income taxes 66.9 28.4 (38.4) (57.4)%
Net income attributable to
Komatsu Ltd47.4 16.2 (31.2) (65.8)%
Billions of yen
¥107.5/USD¥118.6/EUR¥15.1/RMB
Highlights for the First 3-Month Period (April-June,2020) of FY2020
¥110.0/USD¥123.2/EUR¥16.2/RMB
・ Consolidated net sales decreased by 24.8% from the corresponding period a year ago, to JPY458.7 billion.
・ Operating income declined by 64.0% to JPY26.9 billion. Operating income ratio was 5.9%, down 6.4 points.
・ Net income attributable to Komatsu Ltd. declined by 65.8% to JPY16.2 billion.
10
■ 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 foreign exchange rates.
・Construction, Mining & Utility Equipment: Sales decreased by 24.2% from the corresponding period a year ago, to JPY425.8 billion. Segment profit declined by 66.2%
to JPY23.2 billion. Segment profit ratio worsened to 5.4%, down 6.8 points.・Retail Finance: Revenues decreased by 7.9% from the corresponding period a year ago, to JPY15.9 billion. Segment profit declined by 44.3% to JPY1.8 billion.
・Industrial Machinery & Others: Sales decreased by 26.5% from the corresponding period a year ago, to JPY25.0 billion. Segment profit improved by 208.1% to JPY1.7
billion.
Apr.-Jun.,2019
(A)
Apr.-Jun.,2020
(B)
Changes (B-A)
increase
(decrease)
Change
%
Net sales 609.7 458.7 (151.0) (24.8)%
Construction, mining & utility equipment
Retail finance
Industrial machinery & others
561.4[560.5]
17.2[15.4]
34.0[33.7]
425.8[420.0]
15.9[13.9]
25.0[24.7]
(135.6)[(140.5)]
(1.3)[(1.5)]
(8.9)[(8.9)]
(24.2)%[(25.1)%]
(7.9)%[(9.8)%](26.5)%
[(26.5)%]
Elimination (3.0) (8.0) (5.0) -
Segment profit 72.7 26.6 (46.1) (63.4)%
Construction, mining & utility equipmentRetail financeIndustrial machinery & others
68.63.40.5
23.21.81.7
(45.4)(1.5)+1.1
(66.2)%(44.3)%
+208.1%
Corporate & elimination 0.0 (0.1) (0.2) -
% : Profit ratio
Billions of yen
[ ]: Sales after elimination of inter-segment transactions
■ Retail Finance:Revenues declined from the corresponding period a year ago, due mainly to reduced new contracts and adverse effects of foreign exchange rates. Segment profit also decreased, mainly reflecting adverse effects of extension of payments and revaluation of vehicles after lease use.
■ Industrial Machinery & OthersSales declined from the corresponding period a year ago, mainly affected by reduced sales of presses and machine tools to the automobile manufacturing industry. Segment profit increased, supported by steady sales of Excimer laser-related products on the semiconductor market.
Review of three business segments
5.8%
5.4%
11.9%
6.8%
(6.1)pts.
(6.8)pts.
(7.8)pts.
+5.2pts.
Segment Sales and Profits for the First 3-Month Period (April-June,2020) of FY2020
11.9%
12.2%
19.7%
1.6%
11
・Sales to outside customers decreased by 25.1% from the corresponding period a year ago, to JPY420.0 billion.
・Sales declined in all regions, except for China. Sales dropped drastically in North America, Asia and Europe.
・The proportion of Traditional Markets decreased to 47%.
Traditional Markets Strategic Markets
Plus
Minus
[(17.4)%]
[(62.6)%] [(9.9)%][(39.1)%]
[(31.2)%]
[+19.1%]
[(28.5)%]
[(30.9)%]
[(3.7)%]
[(39.5)%]
※ Region where sales increased, when foreign exchange effects were excluded.
420.0
Apr.-Jun.,FY2020
Vs. Apr.-Jun.,2019
Billions of
yenJapan
North
AmericaEurope
Latin
AmericaCIS China Asia Oceania
Middle
EastAfrica Total
Apr.Jun.,2019
(a)63.7 143.4 59.1 74.5 34.0 36.2 62.3 56.1 6.9 23.9 560.5
Apr.Jun.,2020
(b)61.4 99.0 35.8 61.5 24.3 43.1 23.3 50.5 4.2 16.4 420.0
Change
(b-a)(2.3) (44.3) (23.3) (12.9) (9.7) +6.9 (39.0) (5.5) (2.7) (7.4) (140.5)
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
Apr.-Jun., 2019 Apr.-Jun., 2020
Billions of yen
9%
1%
11%
13%
StrategicMarkets
52%
Traditional
Markets
48%
11%
6%
10%
11%
26%
6%
4%
4%1%
12%
10%
6%
6%
15%
9%
24%
15%
StrategicMarkets
53%
Traditional
Markets
47%
420.0
Effects of Foreign
exchange rate: (18.9) billions of yen
※
560.5
Apr.-Jun.,FY2019
560.5
Construction, Mining & Utility Equipment :
Sales by Region (To Outside Customers) for the First 3-Month Period (April-June,2020) of FY2020
(140.5)[(25.1)%]
12
・Sales decreased by JPY135.6 billion from the corresponding period a year ago, as adversely affected by reduced sales volume and
foreign exchange rates. ・Segment profit declined by JPY45.4 billion, mainly due to reduced sales volume and foreign exchange rates.
・Segment profit ratio was 5.4%, down 6.8 points.
68.6
23.2
0
30
60
Apr.-Jun.,2019
Apr.-Jun.,2020
561.4
425.8
300
400
500
600
Apr.-Jun.,2019
Apr.-Jun.,2020
(135.6) billion yen
5.4%12.2%
(45.4) billion yen
Sales
Apr.-Jun.,2019 vs. Apr.-Jun.,2020
Segment profit
Apr.-Jun.,2019 vs. Apr.-Jun.,2020
Billions
of yen
Billions
of yen
Positive factor
Negative factorPositive factor
Negative factor
Volume
(118.2)
Selling
price
+1.3
Foreign
exchange rate
(19.5)
Volume,
product mix, etc.
(51.6)
Fixed costs
+7.6
Selling
price
+1.3
Foreign
exchange rate
(2.5)
Segment profit ratio
New additions to
consolidation
+0.8
New additions
to
consolidation
(0.1)
Construction, Mining & Utility Equipment :
Causes of Difference in Sales and Segment Profit for the First 3-Month Period (April-June,2020) of FY2020
¥110.0/USD¥123.2/EUR¥16.2/RMB
¥107.5/USD¥118.6/EUR¥15.1/RMB
13
Japan JapanEurope EuropeChina China
Oceania OceaniaOthers Others
North America North
America
0
20
40
60
80
100
120
140
160
180
200
17.215.9
3.41.8
0
5
10
15
20
Sales Segment profit
Billions of yen
Billions of yen 2020/3E 2020/6E Changes
Interest-bearing debt 648.0 657.9 +9.9
Interest-bearing debt, net 642.4 655.6 +13.2
Net D/E ratio 3.80 3.86 +0.06pts.
Revenues
Apr.-Jun.,2019 vs. Apr.-Jun.,2020
Assets
Mar.31, 2020 vs. June.30, 2020
Retail Finance: Assets and Revenues
for the First 3-Month Period (April-June,2020) of FY2020
New Contracts
Apr.-Jun.,2019 vs. Apr.-Jun.,2020
Billions of yen
168.1
Apr.-Jun., 2019 Apr.-Jun., 2020 Apr.-Jun., 2019 Apr.-Jun., 2020
・Assets increased from year-on-year, supported mainly by increases in China, while assets declined in North America.
・New contracts declined year-on-year, due to reduced sales under the coronavirus pandemic.
・Revenues decreased year-on-year, especially affected by reduced new contracts and foreign exchange rates.
・Segment profit also decreased, mainly reflecting adverse effects of extension of payments and revaluation of vehicles after lease use.
Japan JapanEurope EuropeChina China
Oceania OceaniaOthers Others
North America
North America
0
100
200
300
400
500
600
700
800
900
Billions of yen
Mar.31, 2020 Jun.30, 2020¥108.8/USD
¥119.6/EUR
¥15.3/RMB
855.1
¥107.7/USD
¥121.1/EUR
¥15.2/RMB
841.0
¥110.0/USD
¥123.2/EUR
¥16.2/RMB
125.3
¥107.5/USD
¥118.6/EUR
¥15.1/RMB
¥110.0/USD
¥123.2/EUR
¥16.2/RMB
¥107.5/USD
¥118.6/EUR
¥15.1/RMB
14
0.5
1.7
1.6%
6.8%
-10
-5
0
5
10
0
2
4
6
Apr.-Jun.,2019 Apr.-Jun.,2020
(%)Billions of yen :Segment profit ratio
・Sales declined by 26.5% year-on-year, to JPY25.0 billion, affected by reduced sales of presses and machine tools to the automobile
manufacturing industry. ・Segment profit improved by JPY1.1 billion year-on-year, to JPY1.7 billion.
・Segment profit ratio was 6.8%.
Industrial Machinery & Others: Sales and Segment Profit
for the First 3-Month Period (April-June,2020) of FY2020
Apr.-Jun., 2019 Apr.-Jun., 2020
Changes
Increase(Decrease)
Change%
Komatsu Industries Corp. 8.5 6.1 (2.3) (27.8)%
Komatsu NTC Ltd. 11.6 4.0 (7.6) (65.4)%
Gigaphoton Inc. 8.2 9.6 +1.4 +17.0%
Others 5.6 5.2 (0.4) (7.2)%
Total 34.0 25.0 (8.9) (26.5)%
Breakdown of sales
Billions of yen
34.025.0
0
10
20
30
40
50
Apr.-Jun., 2019 Apr.-Jun., 2020
Billions of yen
SalesApr.-Jun.,2019 vs. Apr.-Jun.,2020
Segment profitApr.-Jun.,2019 vs. Apr.-Jun.,2020
15Consolidated Balance Sheets
・Total assets grew by JPY7.1 billion from the previous fiscal year-end to JPY3,660.8 billion. Accounts receivable declined, while inventories
increased.・Komatsu Ltd. shareholders’ equity ratio was 48.2%, down 0.3 points.
Mar. 31, 2020 Jun. 30, 2020Increase
(Decrease)
Cash & deposits (incl. time deposits) [a] 249.6 257.2 +7.5
Accounts receivable (incl. long-term trade receivables) 1,165.3 1,100.4 (64.8)
Inventories 805.3 866.7 +61.4
Tangible fixed assets 757.6 755.2 (2.3)
Other assets 675.7 681.1 +5.4
Total assets 3,653.6 3,660.8 +7.1
Accounts payable 220.1 204.2 (15.8)
Interest-bearing debt [b] 1,012.3 1,047.8 +35.4
Other liabilities 564.9 555.5 (9.3)
Total liabilities 1,797.4 1,807.7 +10.2
[Shareholders’ equity ratio] (48.5%) (48.2%) ((0.3).pts.)
Komatsu Ltd. shareholders’ equity 1,771.6 1,763.5 (8.0)
Non-controlling interests 84.6 89.6 +5.0
Liabilities & Equity 3,653.6 3,660.8 +7.1
Interest-bearing debt, net [b-a] 762.7 790.6 +27.9
Net D/E ratio (excl. the retail finance business)
¥107.7/USD
¥121.1/EUR
¥15.2/RMB:Net D/E ratio
0.43 0.45
0.08 0.08
Billions of yen¥108.8/USD
¥119.6/EUR
¥15.3/RMB
16
Ⅲ. Outlook of FY2020 Business Results
17Outline of Projection for FY2020
・Consolidated net sales will decrease by 15.4% from FY2019, to JPY2,068.0 billion.
・ Operating income will decline by 54.1% to JPY115.0 billion. Operating income ratio will amount to 5.6%, down 4.7 points.
・ Net income will decline by 56.4% to JPY67.0 billion.
Changes (B-A)
Increase(Decrease)
Change%
Net sales 2,444.8 2,068.0 (376.8) (15.4)%
Segment profit 255.0 121.0 (134.0) (52.6)%
Other operating income (expenses) (4.3) (6.0) (1.6) -
Operating income 250.7 115.0 (135.7) (54.1)%
Profit ratio 10.3% 5.6% (4.7)pts. -
Other income (expenses) (27.5) (7.0) +20.5 -
Income before income taxes 223.1 108.0 (115.1) (51.6)%
Net income attributable to Komatsu Ltd 153.8 67.0 (86.8) (56.4)%
FY2019 Results
(A)
¥105.6/USD¥116.7/EUR¥15.0/RMB
ROE 8.6% 3.8% (4.8)pts.
Cash dividends per share 94Yen 36Yen (58)Yen
Consolidated payout ratio 57.7% 50.8%
Billions of yen
FY2020 Projection
(B)
¥108.7/USD¥120.8/EUR¥15.6/RMB
18
■ Construction, Mining & Utility Equipment:Sales will decrease from FY2019, as adversely affected by reduced sales volume and foreign exchange rates. Segment profit will decline, mainly due to reduced sales volume and a change in the geographic composition of sales.
・Construction, mining & utility equipment: Sales will decrease by 16.6% from FY2019, to JPY1,845.0 billion. Segment profit will decline by 56.9%
to JPY98.0 billion. Segment profit ratio will amount to 5.3%, down 5.0 points.・Retail finance: Revenues will decrease by 4.1% to JPY68.0 billion. Segment profit will decline by 21.1% to JPY10.0 billion.
・Industrial machinery & others: Sales will increase by 1.9% to JPY181.0 billion. Segment profit will advance by 2.2% to JPY14.0 billion.
Projection for Segment Sales and Profit of FY2020
FY2019
Results
(A)
FY2020
Projection
(B)
Changes (B-A)
increase
(decrease)
Change
%
Net sales 2,444.8 2,068.0 (376.8) (15.4)%
Construction, mining & utility equipment
Retail finance
Industrial machinery & others
2.211.2[2,205.9]
70.9[62.9] 177.5
[175.9]
1,845.0[1,829.0]
68.0[59.0] 181.0
[180.0]
(366.2)[(376.9)]
(2.9)[(3.9)]
+3.4[+4.0]
(16.6)%[(17.1)%]
(4.1)%[(6.3)%]
+1.9%[+2.2%]
Elimination (14.8) (26.0) (11.1) -
Segment profit 255.0 121.0 (134.0) (52.6)%
Construction, mining & utility equipmentRetail financeIndustrial machinery & others
227.312.613.7
98.010.014.0
(129.3)(2.6)+0.2
(56.9)%(21.1)%
+2.2%
Corporate & elimination 1.3 (1.0) (2.3) -
% : Profit ratio
Billions of yen
[ ]: Sales after elimination of inter-segment transactions
10.4%
10.3%
17.9%
7.7%
■ Retail Finance:Revenues will decrease from FY2019, as mainly affected by reduced new contracts and adverse effects of foreign exchange rates. Segment profit will also decrease mainly due to adverse effects of extension of payments and revaluation of vehicles after lease use.
■ Industrial Machinery & OthersBoth sales and segment profit will increase from FY2019, supported by steady sales of Excimer laser-related products on the semiconductor market.
Review of three business segments
(4.5)pts.
(5.0)pts.
(3.2)pts.
+0.0pts.
5.9%
5.3%
14.7%
7.7%
19
※
・Sales to outside customers will decline by 17.1% from FY2019, to JPY1,829.0 billion.
・Sales will decline in all regions, except for China. We anticipate a sharp decline in North America, Asia, Europe and Latin America.
・The proportion of Traditional Markets will decline to 49%.
Traditional Markets Strategic Markets
Plus
Minus
(376.9)[(17.1)%]
[(15.0)%]
[(35.7)%] [(1.6)%] [(9.4)%] [(18.9)%]
[+6.2%]
[(21.0)%]
[(24.5)%]
[(8.1)%]
[(21.8)%]
※ Region where sales increased, when foreign exchange effects were excluded.
Vs. FY2019
Billions of
yenJapan
North
AmericaEurope
Latin
AmericaCIS China Asia Oceania
Middle
EastAfrica Total
FY2019(a) 310.8 573.5 219.7 309.2 127.4 127.0 205.7 203.3 30.6 98.2 2,205.9
FY2020(b) 285.7 433.3 171.8 262.8 100.7 134.9 132.3 200.1 27.8 79.7 1,829.0
Change
(b-a)(25.2) (140.3) (48.0) (46.5) (26.8) +7.8 (73.5) (3.3) (2.9) (18.6) (376.9)
JapanJapan
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
500
1,000
1,500
2,000
2,500
FY2019 FY2020 Projection
Billions of yen
9%
1%
9%
14%
StrategicMarkets
50%
Traditional
Markets
50%
1,829.0
14%
6%
9%
10%
26%
6%
4%
4%2%
11%
7%6%
7%
14%
9%
24%
16%
StrategicMarkets
51%
Traditional
Markets
49%
2,205.9Effects of Foreign
exchange rate: (73.4) billions of yen
1,829.0
FY2020
Projection
※
Construction, Mining & Utility Equipment :
Projection for Sales by Region (To Outside Customers) for FY2020
2,205.9
FY2019
20
・Sales will decline by JPY366.2 billion from FY2019, as adversely affected by reduced volume of sales and foreign exchange rates.
・Segment profit will decline by JPY129.3 billion from FY2019, as adversely affected by reduced volume of sales and foreign exchange rates.
・Segment profit ratio will decrease by 5.0 points to 5.3%.
227.3
98.0
0
100
200
300
FY19 FY20Projection
2,211.2
1,845.0
1,700
1,800
1,900
2,000
2,100
2,200
2,300
FY19 FY20Projection
(366.2) billion yen
5.3%10.3%
(129.3) billion yen
Sales
FY2019 vs. FY2020 Projection
Segment profit
FY2019 vs. FY2020 Projection
Billions
of yen
Billions
of yen
Positive factor
Negative factorPositive factor
Negative factor
Volume
(303.4)
Selling
price
+10.2
Foreign
exchange rate
(74.0)Volume,
product mix, etc.
(138.8)
Fixed costs
+12.4
Selling
price
+10.2
Foreign
exchange rate
(13.0)
Segment profit ratio
New additions to
consolidation
+1.1
New
additions to
consolidation
(0.1)
Construction, Mining & Utility Equipment :
Causes of Difference in Projected Sales & Segment Profit for FY2020
¥105.6/USD¥116.7/EUR¥15.0/RMB
¥108.7/USD¥120.8/EUR¥15.6/RMB
21
Japan JapanEurope EuropeChina China
Oceania OceaniaOthers Others
North America
North America
0
100
200
300
400
500
600
700
800
70.9 68.0
12.6 10.0
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, 2020
Billions of yen 2020/3E 2021/3E Changes
Interest-bearing debt 648.0 641.4 (6.6)
Interest-bearing debt, net 642.4 638.9 (3.5)
Net D/E ratio 3.80 3.91 +0.11pts.
Revenues
FY2019 vs FY2020 Projection
Assets
Mar.31, 2020 vs. Mar.31, 2021 Projection
Retail Finance: Highlights for FY2020
New Contracts
FY2019 vs FY2020 Projection
Billions of yen
612.5
479.3
FY2019 Mar.31, 2021 Projection FY2020 Projection FY2019 FY2020 Projection
・We anticipate that assets will decrease from FY2019 due to reduced new contracts.
・New contracts will decline from FY2019 due to declined sales affected by the coronavirus pandemic.
・Revenues will decrease from FY2019, affected by reduced new contracts.
・Segment profit will decrease mainly due to adverse effects of extension of payments and revaluation of vehicles after lease use.
841.0
¥108.7/USD
¥120.8/EUR
¥15.6/RMB
FY2019FY2020
ProjectionChanges
ROA 1.5% 1.2% (0.3)pts.
¥108.7/USD
¥120.8/EUR
¥15.6/RMB
¥108.8/USD
¥119.6/EUR
¥15.3/RMB
819.3
¥105.0/USD
¥116.0/EUR
¥15.0/RMB
¥105.6/USD
¥116.7/EUR
¥15.0/RMB
¥105.6/USD
¥116.7/EUR
¥15.0/RMB
22
13.7 14.0
7.7% 7.7%
-10
-5
0
5
10
0
10
20
30
FY2019 FY2020 Projection
(%)
Billions of yen
:Segment profit ratio
・We project that sales will increase by 1.9% from FY2019, to JPY181.0 billion, and segment profit will advance by JPY0.2 billion to JPY14.0 billion.
Industrial Machinery & Others: Highlights for FY2020
FY2019FY2020
Projection
Changes
Increase(Decrease)
Change%
Komatsu Industries Corp. 55.0 57.2 +2.2 +4.0%
Komatsu NTC Ltd. 48.3 36.4 (11.9) (24.7)%
Gigaphoton Inc. 35.0 39.8 +4.7 +13.6%
Others 39.0 47.4 +8.3 +21.4%
Total 177.5 181.0 +3.4 +1.9%
Breakdown of sales
Billions of yen
177.5 181.0
0
50
100
150
200
FY2019 FY2020 Projection
Billions of yen
SalesFY2019 vs. FY2020 Projection
Segment profitFY2019 vs. FY2020 Projection
23
・In 1Q FY2020, global demand declined by 17% from the corresponding period a year ago.
・In FY2020, we project demand will decline between 10% and 20% from FY2019 as a whole.
+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 (Current Projection):(20)%~(10)%
Construction, Mining & Utility Equipment: Actual and Projected Demand for 7 Major Products
-8%
-0%+4%
+23% +26%+26% +26%+18%
+18%+8% +3%
-2%-7%
-3%-7%
-16% -17%
-200%
-170%
-140%
-110%
-80%
-50%
-20%
10%
40%
70%
0
30,000
60,000
90,000
120,000
150,000
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
20/1Q
Japan N.America
Europe China
Others Y-o-Y growth rate
Quarterly demand for 7 major products
Units Growth rate
FY20/1Q: (17)%
100
80
64
9297
9093
84
72
Annual demand for 7 major products
UnitsGrowth rate
Source: Estimated by Komatsu
:FY07=100Index
76
94100
92
Current
Projection
24
-1%-1%-8%
7%
-5%-9%
-1%
-10%-9%-2%-6%-7%-3%-8%
3%
-8%-3%-6%
-11%-1%-2%
2%
-4%
3%
-80%
-60%
-40%
-20%
0%
20%
40%
0
50
100
150 Operating hours (left scale)
Y-o-Y (right scale)
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.
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
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
20/1Q
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
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
20/1Q
Demand (units) Y-o-Y change (%)
:FY07/1Q=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
(3)%
(2)%
Rental
Regular
57 64 757872
FY19: +5%
FY20 (Current Projection):
(15)%~(10)%
1Q: (4)%
・In 1Q FY2020, demand declined by 4% from the corresponding period a year ago.
・In FY2020, we project demand will decline between 10% and 15% from FY2019.
Exports of used equipment
*1
KOMTRAX in Japan: Average operating hours per monthHours
Current
Projection
100000
80000
60000
40000
20000
0
20000
40000
60000
80000
0102030405060708090
100110120
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
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
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
20/1Q
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
FY
19Q1
FY
20Q1
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
78 85
106 112
79
Index :FY07/1Q=100
(54)%
Rental
(46)%
Mining & energy
(15)%
Road
Construction
Others
FY19: +3%
FY20 (Current projection): (25)%~(20)%
・In 1Q FY2020, demand decreased by 29% from the corresponding period a year ago.
・In FY2020, we project demand will decline between 20% and 25% from FY2019.
1Q:(29)%
2%
-1%-9%
0%
-6%-7%
3%
4%1%
0%
-5%-8%
1%
-6%
6%
-6%-5%
0%
-8% -8%-13%-14% -17%
-1%
-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
Current
Projection
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
FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19
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
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
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
20/1Q
Demand(unites) Y-o-Y change(%)
0
2,000
4,000
6,000
8,000
FY19(Apr.-May.)
FY20(Apr.-May.)
Index :FY07/1Q=100
6976 81 85
54
Region demand for 7 major products (Excl. 6t class)Units
FY19: (2)%
FY20 (Current projection): (25)%~(20)%
・In 1Q FY2020, demand decreased by 36% from the corresponding period a year ago.
・In FY2020, we project demand will decline between 20% and 25% from FY2019.
1Q:(36)%
7%0%
-3%
4%
-3%-3%-3%-1%
2%
-3%-4%-13%
0%
-11%-2%-6%-10%-1%
1% -2%-9%
-17%-13%
4%
-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
Current
Projection
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
16/1Q
2Q 3Q 4Q FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
20/1Q
Demand (units) Y-o-Y growth rate
38
89
135
106
155
0
5,000
10,000
15,000
4 5 6 7 8 9 10 11 12 1 2 3
FY2016
FY2017
FY2018
FY2019
FY2020
KOMTRAX in China : Average operating hours per month
-6%
0%
-4%
9%-14%
-14%-12%
0% 6%
-8%-4% -5%-3%-3%-4%
-14%
2%
-1%
-43%
-32%
-17%
4% 3% 2%
-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>
: Jan. 28, 2017
: Feb. 16. 2018
: Feb. 5. 2019
: Jan. 25, 2020
: Feb. 12, 2021
(month)
Index :FY07/1Q=100
FY19: (21)%
FY20 (Current Projection): +10%~+20%
・In 1Q FY2020, demand increased by 45% from the corresponding period a year ago.
・We project demand will increase by 10% to 20% in FY2020 from FY2019.
【Ref】Total demand including machines made by local makers
(Hydraulic excavators incl. mini shovels)
FY19: +2%, 1Q of FY20: +69%,
FY20 (Current Projection):+30%~+40%
1Q:+45%
Current
Projection
28
Indonesia: Demand for construction & mining equipment by industrial sector
Units
0
1,000
2,000
3,000
4,000
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
20/1Q
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 products
Units
Y-o-Y
growth rate
-6,000
-3,000
0
3,000
6,000
9,000
-80%
-40%
0%
40%
80%
120%
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
20/1Q
Indonesia Others Malaysia Thailand Y-o-Y change(%)
:
144178
13312681
Index :FY07/1Q=100
FY19 :(24)%
FY20 (Current projection): (35)%~(30)%
・In 1Q FY2020, demand declined by 39% from the corresponding period a year ago. ・In FY2020, we project demand will decline between 30% and 35% from FY2019.
1Q:(39)%
1Q:(68)%13%
3%7%4% 2%
-2%-2%-1%
-1%-8%-6%
2% 1% -3%
-3% -5%
-3%-5%-5%-1%-4%-2%
-20%
22%
-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
Current
Projection
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
96%
52%
49%
71%
41%54%
20%10%
-6%-19%
-29%
-15%
-29%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
0
500
1,000
1,500
2,000
FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
20/1Q
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%
65%
29%
-17%
-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 1Q FY2020, global demand for mining equipment declined by 29% from the corresponding period a year ago. ・In FY2020, we project demand will decline between 10% and 20% from FY2019.
1Q:(29)%FY19 :(17)%
FY20 (Current projection): (20)%~(10)%
Current
Projection
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)
67.4 72.0 64.5 68.8 56.0
100.8 98.193.4
98.4
72.0
76.7 67.077.6 70.0
41.6
211.1222.3
252.2244.5
241.5
272.8277.9
261.2
244.9237.0 235.4
237.2
169.6
+14%
+23% +10%+7% +1%
-13% -15% -9%
-31%
-450%
-350%
-250%
-150%
-50%
50%
150%
0
50
100
150
200
250
300
350
400
450
FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
20/1Q
FY
19/1Q
2Q 3Q 4Q FY
20/1Q
N. America Latin America Europe & CIS
Japan & China Asia Oceania
Middle East & Africa Y-o-Y change
749.1
256.1 273.3 272.7
226.4
374.1 421.8
390.6
317.7
300.0
358.3 291.3
205.0
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%-22%
-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 FY20 FY17 FY18 FY19 FY20
N. America Latin America
Europe &CIS Japan & China
Asia Oceania
Middle East & Africa Y-o-Y change Y-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
・For 1Q FY2020, sales decreased by 31% from the corresponding period a year ago, to JPY169.6 billion.
・FY2020 sales will decrease by 22% from FY2019, to JPY749.1 billion.
Current
Projection
Current
Projection
31
138.5 158.0
171.5 187.4 196.1
214.9 202.4
374.1 421.7
390.6 317.7 141.5
159.0 148.0 176.3
191.1 182.6 176.5
202.7
205.8
196.8
180.8
280.0
317.0319.5
363.7387.2
397.5378.8
576.8
627.5
587.5
498.5
+18% +13%
+1%
+14%+6%
+3% -5%
+52%
+9%
-6%
-15%
-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 FY20
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
85.6 94.7 95.5 98.3 102.7 107.6 104.2 107.2100.8 98.1 93.4
98.4
72.0
49.4 50.950.6
51.8
50.8 51.0 50.9 53.151.7
51.148.0 46.1
42.8
135.0 145.7 146.1 150.0 153.5
158.6 155.1 160.3
152.4 149.1 141.4 144.6
114.8
+14%+9%
+6% +7%
-1%-6% -9% -10%
-25%
-1.8
-1.6
-1.4
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0
50
100
150
200
250
300
FY
17/1Q
2Q 3Q 4Q FY
18/1Q
2Q 3Q 4Q FY
19/1Q
2Q 3Q 4Q FY
20/1Q
Construction equipment
Mining equipment
Y-o-Y
Y-o-Y change
(%)
・For 1Q FY2020, sales of parts decreased by 25% from the corresponding period a year ago, to JPY114.8 billion.
・FY2020 sales will decrease by 15% from FY2019, to JPY498.5 billion.
Current
Projection
32
63.9 65.5 65.0
9.5 9.2 9.0
2.7% 3.1% 3.6%
0
20
40
60
80
100
FY18 FY19 FY20 Projection
Industrial Machinery&Others
Construction, Mining&Utility Equipment
% of sales
63.4
81.9 71.5
4.2
4.6
4.5
57.7 56.4 56.0
0
10
20
30
40
50
60
70
0
20
40
60
80
100
120
FY18 FY19 FY20 Projection
Industrial Machinery&Others
Construction, Mining&Utility Equipment and Retailfinance
R&D Expenses Fixed costsInvestment in production and
other facilities* and depreciation
74.0
67.676.0
74.7
Projected 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
FY18 FY19 FY20 Projection
・CAPEX: Will decrease from FY2019 due to temporary “freezing” or delay of new investments under the coronavirus pandemic.
・R&D expenses: Will carry out priority investments in growth areas, thereby sustaining the level on par with FY2019.
・Fixed costs: Will decrease from FY2019, mainly due to reduced operational expenses resulting from the coronavirus pandemic.
33
Appendix
34
51.7 59.4 74.8 82.4 96.0 104.2 95.5 101.974.7 67.2 65.8
42.8 26.9
9.2%10.0%
11.6% 11.9%
14.9% 15.5%
13.6%14.4%
12.3%
11.1% 10.7%
6.9%
5.9%
-50
0
50
100
150
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Operating profit Operating profit ratio
<Appendix>
Quarterly Sales and Operating Income
-10.0 -5.8 -4.7 -4.9 -3.6 -5.3 -7.1 -4.3 -3.0 -3.6 -3.8 -4.3 -8.0
514.9 549.3 594.4 622.0 594.2 606.3 645.3 633.0 561.4 550.1 546.4 553.1
425.8
17.5 13.6 14.7 14.3 14.2 15.1
16.7 17.4
17.2 17.5 18.1 17.9
15.9
38.640.5
42.363.9
41.2 55.745.7 60.4
34.0 39.7 53.2 50.5
25.0
561.2597.7
646.8695.3
646.0671.9
700.5 706.6
609.7603.7 613.9 617.4
458.7
-100
0
100
200
300
400
500
600
700
800
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Elimination
Construction, Mining & Utility Equipment
Retail Finance
Industrial Machinery & Others
¥/USD
¥/EUR
¥/RMB
Quarterly sales (Since FY2017)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
Quarterly operating income (Since FY2017)
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
20/1Q 20/2Q 20/3Q 20/4Q
107.5
118.6
15.1
35
47.2 55.079.4
91.288.3
95.6 88.6 92.868.6 61.1 53.0 44.4
23.2
9.2% 10.0%
13.4% 14.7%14.9% 15.8%
13.7% 14.7% 12.2% 11.1%9.7%
8.0%5.4%
55% 52% 54% 56% 56% 55% 54% 50% 52% 49% 50% 49% 53%
(50)
0
50
100
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio Percentage of sales in Strategic Markets
<Appendix>
Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit
18% 21% 19% 19% 19% 18% 21% 22% 20% 22% 21% 21% 19%
13% 12% 12% 17% 16% 11% 11% 11% 14% 12% 13% 13% 16%12% 12% 16% 13% 12% 16% 16% 13% 14% 12% 14% 13% 10%
57% 55% 53% 51% 53% 54% 52% 54% 53% 54% 52% 53% 56%
0%
20%
40%
60%
80%
100%
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Parts, etc Mining equipment Construction equipment(Stragegic Markets) Construction equipment(Traditional Markets)
515.0549.3 594.5 622.0
594.2 606.3 645.3 633.0 561.4 550.1546.4 553.1
425.8
0
200
400
600
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Quarterly Sales
Quarterly segment profit
Billions of yen
Billions of yen
¥/USD
¥/EUR
¥/RMB
Exchange rates
Breakdown of sales(%)
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
20/1Q 20/2Q 20/3Q 20/4Q
107.5
118.6
15.1
36
<Appendix>
Construction, Mining & Utility Equipment: Quarterly Sales by Region (To Outside Customers)
69.1 87.4 78.7 80.4 63.9 73.5 87.6 87.6
63.7 84.9 77.4 84.6
61.4
116.0
131.4 152.1 138.6 140.6
148.5 158.6 164.4
143.4
147.9 144.0 138.1
99.0
43.0
41.639.7 56.0
53.846.2
46.460.9
59.148.6
52.7 59.2
35.8
72.2
77.882.0 82.6
76.677.4
90.680.7
74.574.1 83.1 77.4
61.5
27.6
25.6 26.2 29.0
31.3 34.3
36.3 32.6
34.0 36.7 29.1 27.4
24.3
38.3
31.7 43.8
50.8 50.5 30.9
37.2 46.0
36.2 25.2 32.7 32.9
43.1
64.1
68.9
76.9 88.5
86.0 91.6
88.4 72.9
62.3 53.0 44.2 45.9
23.3
45.1
40.0
51.5
45.251.0 58.9
54.0 51.5
56.1 46.9 49.3 50.9
50.5
7.4
10.1
9.512.5
6.8 7.6
8.7 7.0
6.96.6 7.1 9.9
4.2
27.8
31.0
30.9
34.7
31.3 33.7
31.9 27.0
23.924.3 25.0 24.8
16.4
510.9
545.8
591.7
618.7
592.1603.0
640.3 631.1
560.5548.7 545.1 551.5
420.0
0
100
200
300
400
500
600
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Billions of yen
Africa
Middle East
Oceania
Asia
China
CIS
Latin America
Europe
North America
Japan
¥/USD
¥/EUR
¥/RMB
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
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
20/1Q 20/2Q 20/3Q 20/4Q
107.5
118.6
15.1
37
3.3 2.5 3.0
4.0 5.4 4.0 3.54.3
3.4 3.4 4.01.7 1.8
18.9% 18.9% 20.6% 28.0%38.5%
26.9% 21.1% 25.2% 19.7% 19.5% 22.6%9.9% 11.9%
-10
-5
0
5
10
15
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio
<Appendix>
Retail Finance: Quarterly Sales and Segment Profit
17.5
13.6 14.7 14.3 14.2
15.1 16.7
17.4 17.2 17.5 18.1 17.9
15.9
0
5
10
15
20
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Quarterly sales
Quarterly segment profit
Billions of yen
Billions of yen
¥/USD
¥/EUR
¥/RMB
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
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
20/1Q 20/2Q 20/3Q 20/4Q
107.5
118.6
15.1
38
2.3 2.4
4.35.3
3.04.4 5.1
5.9
0.5
3.4
5.54.0
1.7
6.2% 6.0%
10.2%8.1% 7.4% 8.0%
11.3%9.9%
1.6%
8.8%10.5%
8.0%6.8%
-5
0
5
10
15
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio
<Appendix>
Industrial Machinery & Others: Quarterly Sales and Segment Profit
38.6 40.5 42.3
63.9
41.2
55.7 45.7
60.4
34.0 39.7
53.2 50.5
25.0
0
25
50
75
100
FY17/1Q 2Q 3Q 4Q FY18/1Q 2Q 3Q 4Q FY19/1Q 2Q 3Q 4Q FY20/1Q 2Q 3Q 4Q
Quarterly sales
Quarterly segment profit
Billions of yen
Exchange
rates
Billions of yen
¥/USD
¥/EUR
¥/RMB
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
20/1Q 20/2Q 20/3Q 20/4Q
107.5
118.6
15.1
39
0%
50%
100%
150%
200%
0%
50%
100%
150%
200%
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)
40
Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)
0%
50%
100%
150%
200%
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)
41
0%
50%
100%
150%
200%
0%
50%
100%
150%
200%
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)
42
We plan to use the proceeds from this green bond to:
・develop eco-friendly products and services; and
・reduce environmental impact in production.
Issuance of Komatsu’s First Green BondHybrid equipment Electric Equipment
Next-generation plant
Issue amount: JPY 10 billion
Issue date: July 16, 2020
Maturity: 5 years
Interest rate: 0.130%
Smart Construction
Next-generation KOMTRAX
Renewable
Energy
Press Release on Jul. 10, 2020
43
2005: Trial deployment in Codelco’s copper mine in Chile.
As of June 30, 2020: Operated a total of 251 AHS dump trucks in 11 mines in 4 countries 24/7.
At the end of July: Hauled the cumulative total of 3 billion tons of excavated earth.
Autonomous Haulage System: Hauling the cumulative total of
3 billion tons of excavated earth.
Press Release on Jul. 30, 2020
44Construction of New Seal Ring Factory in the Himi Plant 2
To strengthen Himi Plant’s material technology development and perform a role of the global Mother plant of materials for the Komatsu Group,
Komatsu is going to transplant the functions of the current seal ring factory into the new factory, thereby working to dynamically improve product
quality, productivity and environmental performance of the factory.
N
e
w
Expansion of
centrifugal casting
High efficiency
processing line
AI-powered visual
inspection
N
o
wSand molding Polishing Visual Inspection
centrifugal castingHigh efficiency AI-powered
made by
grinding inspection
Camera1 Camera2
New technologies
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/
Press Release on Jul. 15, 2020
Note: Seal rings are high-precision parts which are used to prevent lubricant from leaking inside the undercarriage components, such as final drives, a key component of construction
equipment.