Presentation for the First 3-Month Period (April-June ...
Transcript of Presentation for the First 3-Month Period (April-June ...
1
July 29, 2015
Presentation for the First 3-Month Period(April-June, 2015) of FY2015 Business Results
【Telephone conference】
Komatsu Ltd. ParticipantsMikio Fujitsuka Director and Senior Executive Officer, CFOYasuhiro Inagaki Senior Executive Officer and
General Manager of Business Coordination Department
2Schedule
16:00 PresentationsBusiness Results for the First 3-Month Period of FY2015
Yasuhiro Inagaki, Senior Executive Officer andGeneral Manager of Business Coordination DepartmentKomatsu Ltd.
16:30 Q&A17:00 Closing
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Outline of Business Resultsfor the First 3-Month Period (April - June, 2015)
of FY2015
Yasuhiro Inagaki Senior Executive Officer and
General Manager of Business Coordination DepartmentKomatsu Ltd.
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1Q FY2014 1Q FY2015 Vs. 1Q FY2014Increase
(decrease) % Change
Net sales 460.2 446.1 (14.1) (3.1)%
Segment profit 59.7 49.6 (10.1) (17.0)%
Other operating income (expenses) 3.7 0.1 (3.5) -
Operating income 63.4 49.7 (13.7) (21.7)%
Profit ratio 13.8% 11.1% (2.7)pts. -
Other income (expenses) (2.1) 1.2 +3.3 -
Net income before income taxes 61.3 50.9 (10.4) (17.0)%
Net income * 37.6 32.5 (5.1) (13.7)%
¥102.5/USD¥140.9/EUR¥16.4/RMB
¥121.3/USD¥133.0/EUR¥19.6/RMB
【Sales and Profits】・Consolidated net sales declined by 3.1% from the corresponding period a year ago, to JPY446.1 billion.・Operating income dropped by 21.7% to JPY49.7 billion, and operating income ratio declined by 2.7 points to 11.1%. ・Net income decreased by 13.7% to JPY32.5 billion.
Billions of yen
Highlights of Business Results for the First 3-Month Period (April - June, 2015) for FY2015
* Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”
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1Q FY2014 1Q FY2015Vs. 1Q FY2014
Increase(decrease) % Change
Net sales 460.2 446.1 (14.1) (3.1)%Construction, mining & utility equipmentIndustrial machinery & others
[418.1]418.5[42.0] 43.3
[402.0]402.7[44.1] 44.7
[(16.1)] (15.8)[+2.0] +1.3
[(3.9)%](3.8)%[+4.8%] +3.2%
Elimination (1.6) (1.3) +0.3 -Segment profit 59.7 49.6 (10.1) (17.0)%
Construction, mining & utility equipmentIndustrial machinery & others
57.93.1
47.23.2
(10.6)+0.1
(18.4)%+3.7%
Corporate & elimination (1.3) (0.9) +0.4 -
%
Segment Sales and Profits for 1Q FY2015 (April – June 2015)
11.7% 7.3%
11.1%
13.8%7.3%
13.0%
・In the construction, mining and utility equipment business, sales declined by 3.8% from the corresponding period a year ago, to JPY402.7 billion. Segment profit dropped by 18.4% to JPY47.2 billion, and segment profit ratio was 11.7%, down by 2.1 points.
・In the industrial machinery and others business, both sales and profits increased. Segment profit ratio was 7.3%, remaining flat from the corresponding period a year ago.
Billions of yen
[ ]: Sales after elimination of inter-segment transactions: Profit ratio
Review of two segments■ Construction, Mining and Utility Equipment
Both sales and profits declined from the corresponding period a year ago, reflecting reduced demand for mining equipment and a drastic drop in demand for construction equipment in China and other emerging countries, more than offsetting our steady capturing of demand for construction equipment in North America and Japan.
■ Industrial Machinery and OthersBoth sales and profits increased from the corresponding year ago, supported by brisk production of the semiconductor industry and good sales of presses remaining about flat from the corresponding period a year ago. Sales of machine tools declined to the automobile manufacturing industry.
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+2.1[+3.3%]
-16.1[-3.9%]
+21.3[+34.6%]
-1.9[-4.9%]
-2.4[-4.5%]
+1.5[+10.1%] -5.5
[-18.9%]
-3.8[-6.1%] -2.7
[-19.3%]
-9.5[-26.1%]
-15.0[-42.7%]
Japan16%
Japan17%
North America
15%*1
North America
21%*1
Europe10%
Europe9%
Latin America
15%*1
Latin America
15%*1
CIS3%
CIS3%
China8%
China5%
Asia13% Asia
13%
Oceania9% Oceania
7%
Middle East4%
Middle East4%
Africa7% Africa
6%
50
100
150
200
250
300
350
400
450
1Q FY2014 1Q FY2015
418.1402.0
Billions of yen Japan
North America
*1Europe
Latin America
*1CIS China Asia Oceania Middle
East Africa Total
1QFY2014 65.8 61.8 40.0 63.6 14.3 35.3 55.4 36.7 15.7 29.3 418.1
1QFY2015 68.0 83.1 38.0 59.7 11.5 20.2 52.9 27.1 17.2 23.7 402.0
Strategic Markets
・ Sales to outside customers declined by 3.9% from the corresponding period a year ago, to JPY402.0 billion.・While sales advanced in North America, they declined sharply in China, Oceania and some other regions. As a result, the percentage
share of Traditional Markets in total sales increased to 47%.
PlusMinus
Construction, Mining & Utility Equipment: Sales by Region (To Outside Customers) for 1Q FY2015
Billions of yen
Strategic Markets60%
TraditionalMarkets40%
Strategic Markets53%
TraditionalMarkets47%
Traditional Markets
Vs. 1Q FY2014
1QFY2014418.1
402.0
1QFY2015
*1: Due to the acquisition of a distributor in Mexico, a part of sales in Mexico was reclassified from North America to Latin America, staring in FY2015.1Q. (Corresponding sales for FY2014 1Q.were also reclassified accordingly. )
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・Affected by a sharp decline in volume of sales reflecting a drop in demand for mining equipment and in China, sales declined by JPY15.8 billion from the corresponding period a year ago, albeit a gain in foreign exchange rates. Segment profit also declined by JPY10.7 billion.
・Segment profit ratio decreased by 2.1 points to 11.7%.
418.5 402.7
0
100
200
300
400
500
1Q FY2014 1Q FY2015
(15.8) billion yen
Selling price+1.0
Foreign exchange rate
+24.1
Volume, etc. (40.9)
57.9
47.2
0
25
50
75
1Q FY2014 1Q FY2015
11.7%13.8%
(10.7) billion yen
Selling price+1.0
Foreign exchange rate
+5.0Fixed costs+1.0
Volume, etc. (17.7)
¥102.5/USD¥140.9/EUR¥16.4/RMB
¥121.3/USD¥133.0/EUR¥19.6/RMB
Sales1Q FY2014 vs. 1Q FY2015
Segment profit1Q FY2014 vs. 1Q FY2015
Construction, Mining & Utility Equipment: Causes of Difference in Sales and Segment Profit for 1Q FY2015
Billions of yen
Billions of yen
Positive factorsNegative factor
Positive factorsNegative factor
Segment profit ratio
8
0.8
3.1 3.2
2.0
7.3 7.3
0
10
0
5
10
1Q FY2013 1Q FY2014 1Q FY2015
%%
%40.3 43.3 44.7
0
20
40
60
80
1Q FY2013 1Q FY2014 1Q FY2015
%
1Q FY2013 1Q FY2014 1Q FY2015Vs. 1Q FY2014
Increase(decrease) % change
Komatsu Industries Corp., etc. [total of press and sheet-metal machines] 9.2 13.3 12.8 (0.4) (3.7)%
Komatsu NTC Ltd.[represented by wire saws]
16.7[1.2]
16.7[1.9]
14.0[1.1]
(2.6)[(0.8)]
(16.1)%[(42.6)%]
Others[represented by Gigaphoton Inc.][represented by Komatsu House Ltd.]
14.3[6.2][2.9]
13.2[6.5][2.5]
17.8[8.3][3.7]
+4.5[+1.7][+1.1]
+34.5%[+27.4%][+45.1%]
Total 40.3 43.3 44.7 +1.3 +3.2%
・While sales of machine tools to the automobile manufacturing industry decreased, sales increased by 3.2% from the corresponding period a year ago, to JPY44.7 billion, supported by a big gain in sales of Gigaphoton against the background of brisk production of the semiconductor industry in addition to good sales of presses comparable to the corresponding period a year ago. Segment profit ratio remained same at 7.3%.
Industrial Machinery & Others: Sales and Segment Profit for 1Q FY2015
Sales Segment profitBillions of yen
Billions of yen
:Segment profit ratio
Billions of yen
Breakdown of sales
9
Japan JapanEurope EuropeChina China
Oceania Oceania
Others Others
North America
North America
100
200
300
400
500
600
700
800
15.2 13.8
4.2 3.7
0
5
10
15
20
1Q FY2014 1Q FY2015
Sales Segment profit
・Total assets increased slightly, reflecting the effects of the Japanese yen’s depreciation.・Revenues declined due to a change in the lease accounting method (equipment and interests → interests only). Operating profit
declined due to a decline in assets in Strategic Markets.
¥102.5/USD¥140.9/EUR¥16.4/RMB
¥121.3/USD¥133.0/EUR¥19.6/RMB
¥120.2/USD¥130.3/EUR¥19.4/RMB
¥122.5/USD¥137.2/EUR¥19.7/RMB
681.5 688.6
Retail Finance Business
Consolidated retail finance subsidiaries
1. AssetsBillions of yen 2. Revenues
Mar 31, 2015 June 30, 2015
Billions of yen
10
Mar. 31, 2015 June 30, 2015Increase (decrease)
Cash & deposits (incl. time deposits) [a] 107.3 109.1 +1.8Accounts receivable (incl. long-term trade receivables) 900.2 888.2 (11.9)<Excl. those of consolidated retail finance subsidiaries> <398.1> <371.5> <(26.6)>Inventories 622.8 640.9 +18.0Tangible fixed assets 743.9 754.6 +10.7Other assets 424.0 408.3 (15.7)Total assets 2,798.4 2,801.2 +2.8Accounts payable 225.0 209.7 (15.3)Interest-bearing debt [b] 589.1 610.0 +20.9<Excl. those of consolidated retail finance subsidiaries> <90.2> <92.1> <+1.8>Other liabilities 385.6 350.7 (34.9)Total liabilities 1,199.9 1,170.5 (29.3)[Shareholders’ equity ratio] [54.6%] [55.7%] [+1.1pts.]Komatsu Ltd. shareholders’ equity 1,528.9 1,559.2 +30.2Noncontrolling interests 69.5 71.4 +1.9Liabilities & Equity 2,798.4 2,801.2 +2.8
Interest-bearing debt, net [b-a] 481.8 500.8 +19.0
・ Total assets increased by JPY2.8 billion from the previous fiscal year-end. ・ Komatsu Ltd. shareholders’ equity ratio increased by 1.1 point to 55.7%. Net debt-to-equity ratio remained same at 0.32 from the
previous fiscal year-end.
¥120.2/USD¥130.3/EUR¥19.4/RMB
¥122.5/USD¥137.2/EUR¥19.7/RMB
0.32 0.32
Net D/E ratio (excl. cash and interest-bearing debt of consolidated retail finance subsidiaries) (0.01)(0.00)
Consolidated Balance Sheets
Billions of yen:Net debt-to-equity ratio
11
+11%+14%+7%
-7%-1% -2%-10%-15%
-3% +2%+8% +7%
-5% -4% -9%-19% -17% 0%
30%
60%
90%
120%
0
30,000
60,000
90,000
120,000
150,000
FY11/1Q
FY11/2Q
FY11/3Q
FY11/4Q
FY12/1Q
FY12/2Q
FY12/3Q
FY12/4Q
FY13/1Q
FY13/2Q
FY13/3Q
FY13/4Q
FY14/1Q
FY14/2Q
FY14/3Q
FY14/4Q
FY15/1Q
Japan N.AmericaEurope ChinaOthers Y-O-Y growth rate
+16% +13% +15%
-20% -20%
+45%
+5%
-7%
+3%
-9%
-60%
-40%
-20%
0%
20%
40%
60%
0
100000
200000
300000
400000
500000
600000
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
JapanN.AmericaEuropeChinaOthersY-O-Y growth rate
100
80
64
9297
Index
9093
:FY07=100
84
・ Global demand for 1Q FY2015 should decline by 17% from the corresponding period a year ago. ・ This drop in demand is considerably caused by reduced demand in Strategic Markets , such as China and CIS, while there is good
demand in some other regions.
Quarterly demand for 7 major products Annual demand for 7 major productsUnits Units
Growth rateGrowth rate
Note: Estimated by Komatsu
Initial projection
FY15 Initial projection:-5% ~ -10%
Construction & Mining Equipment: Demand and Outlook for 7 Major Products
12
0
4,000
8,000
12,000
16,000
-100%
-75%
-50%
-25%
0%
25%
50%
75%
100%
FY11/1Q
2Q 3Q 4Q FY12/1Q
2Q 3Q 4Q FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
Demand (units) Y-O-Y growth rate
45 737597 82
Index :FY07/1Q=1001Q: -11%
0
4,000
8,000
12,000
FY11/1Q
2Q 3Q 4Q FY12/1Q
2Q 3Q 4Q FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
rental companies
Regular customers
-49%
+23%
0
20,000
40,000
60,000
80,000
0
10
20
30
40
50
60
70
80
90
100
FY98
FY00
FY02
FY04
FY06
FY08
FY10
FY12
FY14
FY15
Private-sector non-residentialPrivate-sector residentialGovernment construction
・Demand declined by 11% in IQ FY2015 from the corresponding period a year ago.・Demand for hydraulic excavators continues to drop sharply in rental companies.
Construction & Mining Equipment: Demand in Major Markets (1)Japan
Demand for new equipment (7 major products) and construction investment Quarterly demand for 7 major products
Quarterly demand for hydraulic excavators (Rental & regular uses)Y-O-Y
growth rate
Rental↓
Demand for new equipment
Exports of used
equipment
FY14: -21%FY15: -10% ~ -15% (Initial projection)
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
Initialprojection
UnitsY-O-Ygrowth rate
Regular
Demand for 7 major products Y-O-Y
Units
13
0
10,000
20,000
30,000
-60%
-40%
-20%
0%
20%
40%
60%
FY11/1Q
2Q 3Q 4Q FY12/1Q
2Q 3Q 4Q FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
Demand (units) Y-O-Y growth rate
61 82 80 92
Index :FY07/1Q=100
88
0%
20%
40%
60%
80%
100%
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY141Q
FY151Q
Rental-distributor
(DORF)
Rental
-Regular
Mining & energy
Road
Construction
Others
-0%
-11%
0
20,000
40,000
60,000
80,000
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
0
50
100
150
200
250
1Q : -4%
・ Demand in IQ FY2015 should decrease by 4% from the corresponding period a year ago.・ While demand stays steady in residential construction and infrastructure development, such as highway construction, that remains
sluggish in the mining and energy sectors.
Housing starts
Initialprojection[Source]: Demand for 7 major products estimated by Komatsu
FY14: +12%FY15: ±0%~+5% (Initial projection)
Demand for 7 major products and US housing startsDemand for 7 major products(Units)
Housing starts in ten thousands
Y-O-Ygrowth rate
Quarterly demand for 7 major products
Units
Breakdown of demand by segment (Unit basis) Y-O-Y growth rate
Rental
Non-rental
Construction & Mining Equipment: Demand in Major Markets and Outlook (2) N. America
14
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
SouthernEasternOther Western CountriesNorthernThe U.K., France, and Germany0%
20%
40%
60%
80%
100%
120%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
0
10,000
20,000
30,000
-80%
-60%
-40%
-20%
0%
20%
40%
60%
FY11/1Q
2Q 3Q 4Q FY12/1Q
2Q 3Q 4Q FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
Demand (units) Y-O-Y growth rate
1Q: -2%
56 5557
Index :FY07/1Q=100
59 58
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY14
(Apr.-May)
FY15
(Apr.-May)
・ Demand should decrease by 2% in 1Q FY2015 from the corresponding period a year ago.
Annual demand for 7 major products
Demand for 7 major products Y-O-Y
Units Y-O-Ygrowth rate
Initialprojection[Source]: Demand for 7 major products estimated by Komatsu
FY14: +8%FY15: ±0%~ +5%( Initial projection )
Quarterly demand for 7 major productsY-O-Ygrowth rate
Region demand for 7 major products (Excl. 6t class)
Units
Units
Construction & Mining Equipment: Demand in Major Markets and Outlook (3) Europe
15
0
50,000
100,000
150,000
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
0
10,000
20,000
30,000
40,000
50,000
-100%
-50%
0%
50%
100%
150%
200%
250%
FY11/1Q
2Q 3Q 4Q FY12/1Q
2Q 3Q 4Q FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
Demand (units) Y-O-Y growth rate
-3%-4%3%-1%2%0%4%7% 7%
-23%
20%-7%-11%
-6%-12%-9%-13%-15%-13%
-17%-12%
19%
-22%
-29%
-13%-16%-15%
-80%-60%-40%-20%0%20%40%60%80%
0
50
100
150
200
250 Operating hours
Y-o-Y Growth rate
191 88112
Index :FY07/1Q=100
43101
1Q: -50%
0
4,000
8,000
12,000
16,000
20,000
4 5 6 7 8 9 10 11 12 1 2 3
FY2011FY2012FY2013FY2014FY2015
・Demand dropped by 50% in 1Q FY2015 from the corresponding period a year ago.・No positive effects of Chinese government’s economic stimulus measures are evident, and demand should continue to drop sharply.
Construction & Mining Equipment: Demand in Major Markets and Outlook (4) China
Annual demand for 7 major products (Foreign makers)Units
Demand for 7 major products Y-O-YFY14: -38%FY15: -20% ~ -25% (Initial projection)
Initial projection
KOMTRAX in China : Average operating hours per monthHours
[Source]: Demand for 7 major products and hydraulic excavators estimated by Komatsu
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)Units
<Chinese New Year>
month
: Jan. 23, 2012
: Feb. 10, 2013
: Jan. 31, 2014
: Feb. 19, 2015
: Feb. 8, 2016
16
0
10,000
20,000
30,000
40,000
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
IndonesiaOther countriesMalaysiaThailand
0
3,000
6,000
9,000
12,000
-80%
-40%
0%
40%
80%
120%
160%
FY11/1Q
2Q
3Q
4Q
FY12/1Q
2Q
3Q
4Q
FY13/1Q
2Q
3Q
4Q
FY14/1Q
2Q
3Q
4Q
FY15/1Q
Indonesia OthersMalaysia ThailandY-O-Y growth rate
214 205 151
Index : FY07/1Q=100
(台数)
127
0
1000
2000
3000
4000
5000
6000
7000
FY09/1Q2Q 3Q 4Q FY10/1Q2Q 3Q 4Q FY11/1Q2Q 3Q 4Q FY12/1Q2Q 3Q 4Q FY13/1Q2Q 3Q 4Q FY14/1Q2Q 3Q 4Q FY15/1Q
ForestAgroConstructionMining
262
1Q: -16%
・ Demand should decline by 16% in 1Q FY2015 from the corresponding period a year ago.・ While demand advanced in Thailand, overall demand was impacted by a drop in Indonesia, the largest market of the region, and
Malaysia.
Construction & Mining Equipment: Demand in Major Markets and Outlook (5) SouthEast Asia
Annual demand for 7 major products Quarterly demand for 7 major productsUnits
Initial projectionDemand: estimated by Komatsu
FY14: -19%FY15: ±0%~ -5% (Initial projection)
Demand for 7 major products Y-O-Y
Y-O-Ygrowth rate Units
Indonesia: Demand for construction & mining equipment by industrial sector
<Mining customers>1Q: -32%
17
+6%+15%
-34%
+39%+51%
-5%
-51%
-26%
-30%
-100%
-50%
0%
50%
0
2,000
4,000
6,000
8,000
10,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Middle East &Africa
Oceania
Asia
China
Europe&CIS
Latin America
N. America
Y-o-Y change
+25%+5%
-11%-32%
-55%
-54%
-49%
-45%-34%
-23%
-27%
-17%+0%
-50%
0%
50%
100%
0
500
1,000
1,500
2,000
2,500
3,000
FY12/1Q2Q 3Q 4Q FY13/1Q2Q 3Q 4Q FY14/1Q2Q 3Q 4Q FY15/1Q
Middle East &Africa
Oceania
Asia
China
Europe&CIS
Latin America
N. America
Y-o-Y change
・ Global demand for mining equipment remained flat in 1Q FY2015 from the corresponding period a year ago.・ Orders continued to be at a low level.
Construction & Mining Equipment: Demand for Mining Equipment and Outlook
Units Y-o-Y change・Dump trucks: 75 tons (HD785) and larger, Bulldozers: 525HP (D375) and larger, Excavators: 200 tons (PC2000) and larger, Wheel loaders: 810HP (WA800) and larger, Motor graders: 280HP (GD825) and larger
Annual demand for mining equipmentQuarterly demand for mining equipment
Units Y-o-Y change
Note: Demand estimated by KomatsuInitial projection
18
187.4 196.1
207.4
88.0 96.3 87.8
230.9 206.8 126.8
+22%+18%
-14%
+15%+33%
+11%
-18%-1%
-15%
-50%
0%
50%
0
200
400
600
800
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY13
FY14
FY15
Y-o-Y change
45.8 46.4 50.8 53.1 54.9
22.8 23.3 33.2
24.3 23.5
52.3 45.4 44.8 53.5 37.5
+24%+20%+4%-1%
-17%-27%-23%-4%-7%-0%
+20%
-13%-4%
-50%
0%
50%
0
50
100
150
200
250
FY12/1Q
2Q 3Q 4Q FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
FY14/1Q
2Q 3Q 4Q FY15/1Q
Middle East & Africa OceaniaAsia ChinaEurope & CIS Latin AmericaN. America Y-o-Y change
356.5
422.0361.5
554.0
614.5
417.0139.1
157.0163.4
129.6119.2
155.2 506.3
107.2
506.3
120.9115.9
150.5
120.9118.7 118.7
499.3 499.3
128.8 128.8130.8 130.8 422.0 422.0
115.9
・As sales of equipment remained slack, sales of the construction equipment business decreased by 4% for 1Q FY2015 from the corresponding period a year ago, to JPY115.9 billion.
・Sales of parts and service revenues increased from the corresponding period a year ago.
Construction & Mining Equipment: Sales of Mining Equipment
Annual sales of mining equipment (incl. parts and service)Quarterly sales of mining equipment (incl. parts and service)
JPY in billions JPY in billions
Y-o-Y change
Initial projection Initial projection
Equipment
PartsService, etc.
PartsEquipm
entService, etc
19Construction & Mining Equipment: Sales of Parts
43.0 43.7 39.6 45.2 49.2
44.6 46.3 47.3 45.8 46.4 50.8 53.1 54.9
37.3 36.0 34.7
40.0 45.2 44.2 41.8
45.1 45.7 46.4 49.249.8 47.2
-1%+3%
-3% +4%
+18%+11%
+19%
+8%
-3%+5%
+14% +11%+12%
-20%
0%
20%
0
20
40
60
80
100
120
140
FY12/1Q
2Q 3Q 4Q FY13/1Q
2Q 3Q 4Q FY14/1Q
2Q 3Q 4Q FY15/1Q
Construction equipment Mining equipmentY-o-Y change
79.7
92.892.488.894.4
80.388.1 91.6
105.0 113.0 118.0 138.5 158.0 171.5 187.4 196.1 207.4
154.5 152.0 120.0 141.5
159.0 148.0 176.3 191.1 201.1
+2%-10%
+18% +13%
+1%
+14% +6% +6%
-20%
0%
20%
0
100
200
300
400
500
600
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Construction equipment Mining equipmentY-o-Y change
238.0
280.0317.0
265.0
319.5
363.7
259.5
102.1
74.3
85.2387.2
Quarterly sales of parts Annual sales of parts
Y-o-Y change (%) Y-o-Y change (%)JPY in billions JPY in billions
100.0102.9 408.5
・ Sales of parts totaled JPY 102.1 billion for 1Q FY2015 , up 12% from the corresponding period a year ago.・ Even when demand for new units of construction and mining equipment dropped, sales of parts increased, resulting from our
steadfast capturing of after-market demand.
Initial projection
20Reinforcing Production with The Internet of Things (IoT) :
Embarking on production reforms by implementing "connectivity" in Komatsu Style
Press release of June 22, 2015
Komatsu is embarking on novel production reforms designed to achieve "connected“ production which enables real-time connection at all stages from production to sales and information flow through the use of ICT (Information and Communication Technology). Komatsu has been working on large-scale production reforms at plants in Japan, since FY2011, with the goal of cutting electric power consumption to half. By adding to this effort the concept of "visualized" information through IoT, Komatsu plans to dynamically improve safety and productivity. Linking market information directly with production plants will enable Komatsu to build a manufacturing operation in which plants will be actively involved make efforts in finding solutions to customers' problems.
1. "Connected" productionKomatsu is going to "visualize" information concerning production facilities, such as machine tools and robots, and information concerning production line operations through IoT, and then consolidate that information in a shared database. Based on this consolidated information, Komatsu will develop upgraded plans designed to improve per-floor space productivity, reduce manpower and shorten production lead-time.
2. Direct linkage of market information with production plantsKomatsu is going to link market information directly with its production plants through KOMTRAX (Komatsu Machine Tracking System) which is built into over 380,000 construction equipment units worldwide (as of May 31) and KOMTRAX Plus for mining equipment.
21
New factory for hydraulic excavators at Komatsu India Pvt. Ltd. (Opened on May 8, 2015)Cautionary StatementThis presentation sheets contain forward-looking statements that reflect management’s views and assumptions in the light of information currently available 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,” “plans,” “expects,” 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. Any forward-looking statements speak only as of the date of this presentation sheets, and Komatsu assumes no duty to update such statements.
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 costs 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; the impact of regulatory changes and accounting principles and practices; and the introduction, success and timing of business initiatives and strategies.
Business Coordination Department, KOMATSU LTD.TEL: +81-3-5561-2687 FAX: +81-3-3582-8332 http://www.komatsu.com/
22
<Appendix>
-2.9 -2.5 -2.1 -3.2 -1.8 -2.6 -1.6 -1.5 -1.6 -1.8 -1.4 -1.2 -1.3
429.7 409.3 368.4 471.9 416.6 413.4 420.7
501.4 418.5 425.1 442.0 477.7
402.7
43.0 54.1 53.4
65.6 40.3 59.2 45.3
64.2
43.3 59.0 53.565.6
44.7
0
100
200
300
400
500
600
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
Industrial Machinery & OthersConstruction, Mining & Utility EquipmentElimination
55.7 55.539.2
61.152.4 56.5 56.6
74.863.4 62.1
56.2 60.149.7
11.9% 12.1%
9.3%11.4% 11.5% 12.0% 12.2%
13.3% 13.8% 12.9%11.4% 11.1% 11.1%
0
20
40
60
80
100
120
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
Operating profitOperating profit ratio
446.1455.1 469.9 464.3
564.1469.9 460.9
419.7
534.4460.2 482.3
Quarterly sales
Quarterly operating income
Billions of yen
Billions of yen
Exchange rates
494.0
<Appendix>Quarterly Sales and Operating Income 23
¥/USD
¥/EUR
¥/RMB
15/1Q 15/2Q 15/3Q 15/4Q121.3
133.0
19.6
12/1Q 12/2Q 12/3Q 12/4Q80.6 78.7 80.1 90.7
104.6 98.3 103.5 120.112.8 12.4 12.8 14.6
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
13/1Q 13/2Q 13/3Q 13/4Q97.3 98.6 99.7 102.7
126.4 129.9 135.1 139.915.8 16.1 16.3 16.9
542.0
24
¥/USD
¥/EUR
¥/RMB
15/1Q 15/2Q 15/3Q 15/4Q
121.3
133.0
19.6
12/1Q 12/2Q 12/3Q 12/4Q
80.6 78.7 80.1 90.7
104.6 98.3 103.5 120.1
12.8 12.4 12.8 14.6
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
13/1Q 13/2Q 13/3Q 13/4Q
97.3 98.6 99.7 102.7
126.4 129.9 135.1 139.9
15.8 16.1 16.3 16.9
13.6% 14.9% 17.2% 21.4% 14.9% 19.1% 20.7% 20.1% 16.8% 20.7% 20.2% 23.1% 21.2%23.2% 17.7% 15.5% 19.3% 22.6% 20.0% 21.3% 21.7% 21.5% 17.8% 16.2% 16.8% 14.8%
21.9% 25.3% 22.2%20.1% 14.5% 13.0% 8.9% 15.8% 12.5% 11.5% 11.8% 11.2% 9.3%
41.2% 42.1% 45.2% 39.2% 47.9% 47.8% 49.1% 42.4% 49.2% 49.9% 51.8% 48.8% 54.7%
0%
20%
40%
60%
80%
100%
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
Parts, etc.
Mining equipment
Construction equipment(Strategic Markets)Construction equipment(Traditional Markets)
Breakdown of sales (%)
429.7 409.3 368.4 471.9 416.6 413.4 420.7
501.4 418.5 425.1 442.0 477.7
402.7
0
200
400
600
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
Quarterly sales
<Appendix>Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit
Quarterly segment profit
Billions of yen
Billions of yen
54.2 55.338.8
60.5 52.6 53.1 58.377.9
57.9 58.8 55 55.4 47.212.6% 13.5% 10.5% 12.8% 12.6% 12.9% 13.9% 15.5% 13.8% 13.8% 12.5% 11.6% 11.7%
65% 62% 58% 57% 61% 56% 56% 59% 60%54% 53% 51% 53%
0
20
40
60
80
100
120
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio Percentage of sales in Strategic Markets
25
62.5 69.8 76.0 84.2 66.4 83.5 95.6 96.4 65.8 85.8 93.0 85.8 68.0
60.0 63.0 54.6 92.7
64.0 69.2 62.7 73.9
61.8 73.9
82.5 107.5
83.1 27.9 23.0 22.8
26.5
30.4 26.7 28.0
36.6
40.0
34.3 32.8
40.9
38.0 65.2 70.2 64.4
65.2
61.0 63.0 65.1
83.5
63.6 65.6
69.5 71.3
59.7 21.9 19.2 24.4
23.8
18.5 17.2 16.1
16.6
14.3 13.6
14.3 11.9
11.5 40.7 21.7 20.4
36.9
41.4 31.3
39.5
49.6
35.3 27.0
24.5 23.3
20.2
78.5 52.4
34.7
52.3
47.9 43.9 43.3
58.6
55.4 48.5
51.6 56.7
52.9
44.3
54.8 43.5
50.2
47.3 39.7 32.1
35.4
36.7 35.8
33.3 31.1
27.1
5.2 9.0
4.4
10.9
13.6 13.6 9.0
19.1
15.7 14.8 11.3
18.8
17.2
22.4 25.1
22.2
28.2
24.9 24.3 28.1
30.8
29.3 25.0 28.3
29.1
23.7
0
100
200
300
400
500
600
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
402.0428.9
408.7
367.9
471.3500.8
415.9412.8 420.0 418.1 424.7
<Appendix>Construction, Mining & Utility Equipment: Quarterly Sales (To Outside Customers) by Region
Billions of yen
Africa
Middle East
Oceania
Asia
China
CIS
Latin America
*1
Europe
North America
*1
Japan
441.5476.9
Exchange rates¥/USD
¥/EUR
¥/RMB
15/1Q 15/2Q 15/3Q 15/4Q121.3133.019.6
12/1Q 12/2Q 12/3Q 12/4Q80.6 78.7 80.1 90.7
104.6 98.3 103.5 120.112.8 12.4 12.8 14.6
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
13/1Q 13/2Q 13/3Q 13/4Q97.3 98.6 99.7 102.7
126.4 129.9 135.1 139.915.8 16.1 16.3 16.9
*1: Due to the acquisition of a distributor in Mexico, a part of sales in Mexico was reclassified from North America to Latin America, staring in FY2015.1Q. (Corresponding sales for FY2014 1Q.were also reclassified accordingly. )
26
43.0 54.1 53.4
65.6
40.3
59.2
45.3
64.2
43.3 59.0 53.5
65.6
44.7
0
25
50
75
100
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
2.3 0.9 0.5
2.3 0.8
3.9
-3.6
0.9 3.1 4.6 3.8
4.5 3.2
5.5%
1.7% 1.0%
3.7%2.0%
6.7%
-8.1%
1.4%
7.3% 7.9% 7.2% 7.0% 7.3%
-5
0
5
10
15
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q 2Q 3Q 4Q
Segment profit Segment profit ratio
*1
*1
<Appendix>Industrial Machinery & Others: Quarterly Sales and Segment Profit
Quarterly sales
Quarterly segment profit
Billions of yen
Billions of yen
*1 Including a loss of JPY10.8 bn on Komatsu NTC’s wire saw inventories (3Q: JPY-7.6 bn, and 4Q: JPY-3.2 bn)
Exchange rates¥/USD
¥/EUR
¥/RMB
15/1Q 15/2Q 15/3Q 15/4Q121.3
133.0
19.6
12/1Q 12/2Q 12/3Q 12/4Q80.6 78.7 80.1 90.7
104.6 98.3 103.5 120.112.8 12.4 12.8 14.6
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
13/1Q 13/2Q 13/3Q 13/4Q97.3 98.6 99.7 102.7
126.4 129.9 135.1 139.915.8 16.1 16.3 16.9
27
0%
50%
100%
150%
200%
250%
300%
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q
Orders received/Sales Index
0%
50%
100%
150%
200%
250%
300%
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q
0%
50%
100%
150%
200%
250%
300%
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q
<Appendix>Orders received /Sales Index for Mining Equipment (6 Months)
Komatsu America(Mining eqpt)
Komatsu MiningGermany
PC3000, PC4000PC5500, PC8000
Komatsu Ltd.(Mining eqpt)
HD785, HD1500 PC2000,PC3000, PC4000, WA800 upD375A upGD825A up
730E, 830E, 860E,930E, 960E,
Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)
28
0%
50%
100%
150%
200%
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q
0%
50%
100%
150%
200%
FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q 2Q 3Q 4Q FY15/1Q
Orders received/Sales Index
<Appendix>Orders received /Sales Index for Industrial Machinery (6 Months)
Avg. orders in value for 6 months/Avg. factory shipment in value for 6 months)Komatsu Industries
Komatsu NTC(Excl. wire saws)