Presentation1

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Business Results for FY2011

Business Results for FY2011ended March 31, 2012

April 26, 2012

Mikio Fujitsuka Director and Senior Executive Officer, CFO

Komatsu Ltd.

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1. Sales and ProfitsHighlights of FY2011 ended March 31, 2012

2. Review of two business segments* “Net income” is equivalent to “Net income attributable to Komatsu Ltd.” in accordance with the FASB Accounting Standards Codification (ASC) 810.

Year-end cash dividends: 21 yen per share. Annual dividends: 42 yen per share including interim dividend of 21 yen per share. (To be proposed to the 143rd ordinary general meeting of shareholders.)

FY2010 FY2011 vs. FY2010Net sales 1,843.1 bil yen 1,981.7 bil yen + 7.5 %Operating income 222.9 bil yen 256.3 bil yen + 15.0 %Operating income ratio 12.1 % 12.9 % + 0.8 ptsNet income* 150.7 bil yen 167.0 bil yen + 10.8 % ROE 17.2% 17.3% + 0.1 ptNet D/E ratio[Excl. consolidated retail finance subsidiaries]

0.50[ 0.24 ]

0.56[ 0.28 ]

(0.06) pts[ (0.04) pts ]

Million USD FY10 FY11 % changeNet sales 22,206 24,168 + 8.8 %

Operating income 2,686 3,126 + 16.4 %Net income 1,816 2,037 + 12.2 %

Reference : Sales and profits calculated by USD and EUR

Million EUR FY10 FY11 % changeNet sales 17,066 18,016 + 15.3 %

Operating income 2,064 2,330 + 23.4 %Net income 1,396 1,519 + 18.9 %

- While demand dropped drastically in China, net sales increased by 7.7% from the previous fiscal year, reflecting positive factors, such as expanded sales of construction equipment in other regions and of mining equipment and spare parts.

- Although the Japanese yen appreciated against U.S. dollar, Euro and Renminbi, segment profit ratio advanced by +0.5 points from the previous fiscal year, supported by increased selling prices as well as reduced production costs.

- Sales increased, supported by expanded sales of presses, machine tools and prefabricated structures, however, segment profit declined due to a drastic drop in demand for wire saws.

Construction, Mining & Utility Equipment:

Industrial Machinery & Others:

3. Cash dividends

- Net Sales increased by 7.5% from the previous fiscal year, to 1,981.7 billion yen.- Operating income increased by 15.0% to 256.3 billion yen and operating income ratio improved to 12.9%.

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FY20101USD = 85 yen1EUR = 113 yen1RMB = 12.7 yen

FY20111USD = 79 yen1EUR = 110 yen1RMB = 12.4 yen

Increase (decrease)

Net sales *1 1,843.1 1,981.7 + 138.6 + 7.5 %Construction, Mining & Utility EquipmentIndustrial Machinery & Others

[1,615.6] 1,618.0 [227.4] 238.3

[1,739.3] 1,744.2 [242.4] 251.1

[+ 123.6] + 126.1[+ 14.9] + 12.7

[+ 7.7 %] + 7.8 %[+ 6.6 %] + 5.4 %

Elimination (13.3) (13.6) (0.3) -

Segment profit 234.9 258.6 + 23.6 + 10.1 %

Construction, Mining & Utility EquipmentIndustrial Machinery & Others

220.820.9

246.216.7

+ 25.4(4.1)

+ 11.5 %(20.0)%

Corporate & elimination (6.8) (4.4) + 2.4 -Other operating income (expenses) *2 (12.0) (2.3) + 9.7 -

Operating income *1 222.9 256.3 + 33.4 + 15.0 %

Other income (expenses) (3.1) (6.7) (3.6) -

Net income before income taxes 219.8 249.6 + 29.8 + 13.6 %

Net income *3 150.7 167.0 + 16.2 + 10.8 %

Cash dividends per share 38 yen 42 yen + 4 yen

% : Profit ratio

13.1%

Sales and Profits for FY2011 ended March 31, 2012

[ ] : Sales after elimination of inter-segment transactions

14.1%

6.7%

12.9%

- Both consolidated net sales and profits increased from the previous fiscal year, as the adverse effects of the Japanese yen’sappreciation and plunged demand in China were compensated for mainly by expanded sales of construction equipment in other regions and of mining equipment and parts.

- Operating income ratio increased by 0.8 points to 12.9%.

*1 Including adverse effects by the earthquake : reduced sales of 9.2 billion yen and reduced operating income of 7.0 billion yen. *2 Including structural reform expenses of 3.8 billion yen. *3 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”

Billions of yen

13.6%

8.8%

12.7%

12.1%

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10/1Q 10/2Q 10/3Q 10/4Q91yen 85yen 82yen 82yen

115yen 111yen 110yen 114yen13.4yen 12.6yen 12.4yen 12.5yen

1USD1EUR1RMB





Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit

Quarterly sales

Quarterly segment profit

Billions of yen

Exchange rates

Billions of yen

- Sales increased from the previous 4th quarter a year ago, as the adverse effects of dropped demand in China were compensated for primarily by expanded sales in other regions and of mining equipment and parts.

- Segment profit ratio remained at a high level.

08/1Q 08/2Q 08/3Q 08/4Q105yen 107yen 95yen 95yen165yen 159yen 126yen 123yen15.2yen 15.7yen 13.9yen 13.9yen

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Billionsof yen

¥93/USD¥131/EUR¥13.6/RMB

1,615.6

Construction, Mining & Utility Equipment: Sales by Region and Segment Profit

% Japan North America Europe Latin

America CIS China Asia Oceania Middle East Africa Total

FY2010 +10.1% +36.2% +15.7% +18.5% +87.6% +36.7% +49.8% +7.6% +33.1% +15.6% +27.4%FY2011 +13.8% +28.9% +15.5% +1.5% +34.0% (39.8)% +26.3% +33.1% (15.0)% +46.9% +7.7%

1,268.5

1,739.3

: Segment profit ratio

13.6%

6.5%

¥85/USD¥113/EUR¥12.7/RMB

+27.4%

- Sales increased by 7.7% from the previous fiscal year, as the adverse effects of dropped demand in China were compensated for mainly by expanded sales in Japan, North America and Strategic Markets except China.

- In spite of a sharp appreciation of the Japanese yen, segment profit ratio improved to 14.1%.

¥79/USD¥110/EUR¥12.4/RMB

7.7%

14.1%

Billionsof yen

Rate of growth (year-on-year basis)

Sales by region (To outside customers) Breakdown (%) Segment profit: Year-on-year growth rate

FY2010

Sales before elimination of inter-segment transactions

%

Strategic Markets

67%

Traditional Markets

33%

FY2011

Traditional Markets

37%

Strategic Markets

63%

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Billions of yen

Billions of yen

Foreign exchange

rate difference

(34.2)Fixedcosts

difference(12.0)

Selling price

difference+ 34.7Production

costsdifference

(3.0)

Volume difference& others

+ 39.8

Positive factorNegative factors

Positive factorsNegative factors

Foreign exchange

rate difference

(64.0)

Construction, Mining & Utility Equipment: Causes of Difference in Sales and Segment Profit

Segment profit ratio13.6%

- Sales increased by 126.1 billion yen from the previous fiscal year. Negative factors of the Japanese yen’s appreciation and dropped demand in China were compensated for by improved selling prices, expanded sales of construction equipment in other regions and of mining equipment and parts.

- Segment profit improved by 25.4 billion yen. Negative factors of the Japanese yen’s appreciation, increased fixed costs and steel prices were compensated for by improved selling prices and expanded volume of sales. Segment profit ratio improved to 14.1%.

Segment profitFY2010 vs. FY2011

SalesFY2010 vs. FY2011

¥85/USD¥113/EUR¥12.7/RMB

¥79/USD¥110/EUR¥12.4/RMB

14.1%

FY2010 FY2011 FY2010 FY2011

+126.1billion yen

+25.4billion yen

¥79/USD¥110/EUR¥12.4/RMB

¥85/USD¥113/EUR¥12.7/RMB

Sales difference in China(125.8)

Sales difference in other markets+316.0

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Industrial Machinery & Others: Sales and Segment Profit

Sales Segment profitBillionsof yen

Billionsof yen

8.8%

%

1.7%

6.7%

SalesFY2010 FY2011 Increase (decrease)

Komatsu Industries Corp and others:Sheet-metal and press machines business 41.2 46.6 + 54

Komatsu NTC Ltd.[Provided by wire saws]

129.1 108.8 (20.3)

GIGAPHOTON INC., Komatsu House Ltd., KELK Ltd., Defense Systems Division and others

68.0 95.7 + 27.7

Total 238.3 251.1 + 12.7

Breakdown of sales : FY2010 vs. FY2011 Billions of yen

Segment profit ratio

- Sales increased from the previous fiscal year with expanded sales of presses, machine tools and prefabricated structures for temporary shelters, while demand of wire saws plunged.

- Segment profit declined from the previous fiscal year, due to a drastic drop in demand for wire saws.

[83.0] [46.5] [(36.5)]

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Retail Finance Business

Consolidated retail finance subsidiaries (internal-use data)

JapanEurope

China

Others

Elimination

North America

JapanEurope

China

Others

Elimination

AustraliaAustralia

Billions of yen

2. Revenues1. AssetsBillions of yen

375.2

Assets expanded especially in North America and China. Both revenues and pretax income advanced from the previous fiscal year.

¥83/USD¥118/EUR¥12.7/RMB

¥82/USD¥110/EUR¥13.1RMB

March 31, 2011 March 31, 2012¥85/USD¥113/EUR¥12.7/RMB

¥79/USD¥110/EUR¥12.4/RMB

North America

423.0

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Mar. 31, 201183 yen/USD118 yen/EUR12.7 yen/RMB

Mar 31, 201282 yen/USD110 yen/EUR

13.1 yen/RMB

Increase (decrease)

Cash & deposits (Incl. time deposits) [a]Accounts receivable (Incl. long-term trade receivables)<Excl. those of consolidated retail finance subsidiaries>InventoriesTangible fixed assetsOther assets

84.9716.0

<419.3>473.8508.3365.8

83.9744.0

<397.5>612.3529.6350.4

(0.9)+ 28.0

<(21.8)>+ 138.4+ 21.2(15.4)

Total assets 2,149.1 2,320.5 + 171.3Accounts payable 308.9 273.4 (35.5)Interest-bearing debt [b] 544.0 647.8 + 103.7<Excl. that of consolidated retail finance subsidiaries> <276.9> <336.9> <+60.0>Other liabilities 323.4 341.8 + 18.3 Total liabilities 1,176.4 1,263.0 + 86.6[ Shareholders’ equity ratio ]Komatsu Ltd. shareholders’ equity

[ 43.0% ]923.8

[ 43.5% ]1,009.6

[ + 0.5 pts ]+ 85.8

Noncontrolling interests 48.8 47.7 (1.0)Liabilities & Equity 2,149.1 2,320.5 + 171.3

Net D/E ratioBillions of yen

Interest-bearing debt, net [b-a] 459.1 563.8 + 104.7Net D/E ratio excluding cash and interest-bearing debt of consolidated retail finance subsidiaries

0.50 0.56

0.24 0.28

Consolidated Balance Sheets- Total assets increased by 171.3 billion yen from the previous fiscal year-end, reflecting increased receivables and inventories resulting from expanded demand and sales.

- Komatsu Ltd. shareholder’s equity topped 1 trillion yen, further improving its ratio.

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＜Appendix＞

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Jan. - Mar., 20111USD = 82 yen

1EUR = 114 yen1RMB = 12.5 yen

Jan.- Mar., 20121USD = 80 yen


Increase(decrease)

Change%

Net sales *1 541.1 533.2 (7.9) (1.5) %

Construction, Mining & Utility EquipmentIndustrial Machinery & Others

[468.7] 469.5[72.3] 75.5

[474.2] 475.2 [59.0] 61.6

[+ 5.4] + 5.6 [(13.3)] (13.8)

[+ 1.2 %] + 1.2 %[(18.5) %] (18.4) %

Elimination (3.9) (3.6) + 0.2 -Segment profit 69.8 67.0 (2.8) (4.1) %Construction, Mining & Utility EquipmentIndustrial Machinery & Others

64.47.5

67.30

+ 2.8(7.5)

+ 4.5 %(99.2) %

Corporate & elimination (2.1) (0.3) + 1.7 -Other operating income (expenses) *2 (9.7) (2.5) + 7.1 -Operating income *1 60.1 64.5 + 4.3 + 7.2 %Other operating income (expenses) 0.7 (0.5) (1.3) -Net income before income taxes 60.9 63.9 + 3.0 + 4.9 %

Net income *3 50.1 37.6 (12.4) (24.9) %

Sales and Profits for Three Months (January - March, 2012)

14.2 %

0.1 %

12.6 %

12.1%

13.7 %

10.0 %

12.9 %

11.1 %

% : Profit ratio[ ]: Sales after elimination of

inter-segment transactions

Billions of yen

*1 Including adverse effects by the earthquake : reduced sales of 9.2 billion yen and reduced operating income of 7.0 billion yen. *2 Including structural reform expenses of 1.4 billion yen. *3 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”

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Jan. – Mar., 20111USD = 82 yen


Jan. – Mar., 20121USD = 80 yen


vs. Jan. – Mar., 2011Increase

(decrease)Change

%

Traditional Markets

Japan 64.5 79.2 + 14.6 + 22.7 %North America 52.7 65.5 + 12.8 + 24.4 %Europe 31.4 30.6 (0.7) (2.5) %

Strategic Markets

Latin America 52.3 55.7 + 3.4 + 6.6 %CIS 19.6 22.5 + 2.8 + 14.7 %China 114.2 51.4 (62.7) (54.9) %Asia 68.5 84.0 + 15.4 + 22.5 %Oceania 34.8 51.0 + 16.1 + 46.3 %Middle East 14.9 8.1 (6.8) (45.6) %Africa 15.4 25.7 +10.3 + 67.2 %

Total 468.7 474.2 +5.4 + 1.2 %

Breakdown of Sales for Three Months (January - March, 2012)Billions of yen1. Construction, mining & utility equipment (sales by region)

Jan. – Mar., 2011 Jan. – Mar., 2012vs. Jan. – Mar., 2011

Increase (decrease)

Change %

Komatsu Industries Corp and others:Sheet-metal and press machines business

14.4 13.4 (1.0) (6.9)%

Komatsu NTC Ltd.[Provided by wire saws]

42.8[31.3]

22.4[3.2]

(20.4)[(28.1)]

(47.7)%[(89.8)%]

GIGAPHOTON INC., Komatsu House Ltd., KELK Ltd., Defense Systems Division and others

18.2 25.8 + 7.6 + 41.8%

Total 75.5 61.6 (13.9) (18.4)%

2. Industrial machinery & others Billions of yen

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Construction, Mining & Utility Equipment: Causes for Difference in Sales and Segment Profit

Segment profit ratio13.7%

Segment profitJan.- Mar., 2011 vs. Jan.- Mar. 2012

Billions of yen

SalesJan.- Mar., 2011 vs. Jan.- Mar. 2012

¥82/USD¥114/EUR¥12.5/RMB

¥80/USD¥106/EUR¥12.7/RMB

14.2%

Foreign exchange

rate difference

(3.8)

Fixedcosts

difference(2.0)

Sellingprice

difference+ 9.0

Production costs

difference(1.6)

Volume difference& others

+ 1.1

Positive factorNegative factors

Positive factorsNegative factors

Jan.-Mar., 2011 Jan.-Mar., 2012 Jan.-Mar., 2011 Jan.-Mar., 2012

Foreign exchange

rate difference

(8.8)

Billions of yen

+5.6billion yen

+2.8billion yen

¥80/USD¥106/EUR¥12.7/RMB

¥82/USD¥114/EUR¥12.5/RMB

Sales difference in China

(63.4)

Sales difference in other markets+ 77.9

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Quarterly Sales and Operating Income

Quarterly salesBillions of yen

08/1Q 08/2Q 08/3Q 08/4Q

105 yen 107 yen 95 yen 95 yen

165 yen 159 yen 126 yen 123 yen

15.2 yen 15.7 yen 13.9 yen 13.9 yen

1USD

1EUR

1RMB

Exchange rates

606.8 604.4

431.4320.4

379.0325.5 357.9

427.6

09/1Q 09/2Q 09/3Q 09/4Q


133 yen 133 yen 133 yen 124 yen

14.2 yen 13.6 yen 13.2 yen 13.3 yen

10/1Q 10/2Q 10/3Q 10/4Q


115 yen 111 yen 110 yen 114 yen

13.4 yen 12.6 yen 12.4 yen 12.5 yen

447.1 412.6 442.2541.1

11/1Q 11/2Q 11/3Q 11/4Q

81 yen 77 yen 78 yen 80yen


12.5y en 12.1 yen 12.3yen 12.7yen

Billions of yen

494.1

*1 Including structural reform expenses of 32.3 billion yen.

*1

*2

*2 Including adverse effects of 7.0 billion yen from the earthquake disaster.

491.6 462.6533.2

Quarterly operating income

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Construction, Mining & Utility Equipment: Quarterly Sales (To Outside Customers) by Region

Japan

North America

Europe

284.6 284.9316.8

382.0

LatinAmerica

405.2

358.4383.2

468.7435.3 418.3

CIS

China

Asia

Middle East

Africa

Oceania

411.4

Billions of yen

08/1Q 08/2Q 08/3Q 08/4Q


165 yen 159 yen 126 yen 123 yen

15.2 yen 15.7 yen 13.9 yen 13.9 yen

1USD

1EUR

1RMB

Exchange rates 09/1Q 09/2Q 09/3Q 09/4Q


133 yen 133 yen 133 yen 124 yen

14.2 yen 13.6 yen 13.2 yen 13.3 yen

10/1Q 10/2Q 10/3Q 10/4Q


115 yen 111 yen 110 yen 114 yen

13.4 yen 12.6 yen 12.4 yen 12.5 yen

11/1Q 11/2Q 11/3Q 11/4Q



12.5y en 12.1 yen 12.3 yen 12.7yen

534.0516.1

378.4

316.0

474.2

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Industrial Machinery & Others : Quarterly Sales and Segment Profit

Quarterly sales

Quarterly segment profit

Billions of yen

Billionsof yen

08/1Q 08/2Q 08/3Q 08/4Q


165 yen 159 yen 126 yen 123 yen

15.2 yen 15.7 yen 13.9 yen 13.9 yen

1USD

1EUR

1RMB

Exchange rates 09/1Q 09/2Q 09/3Q 09/4Q


133 yen 133 yen 133 yen 124 yen

14.2 yen 13.6 yen 13.2 yen 13.3 yen

10/1Q 10/2Q 10/3Q 10/4Q


115 yen 111 yen 110 yen 114 yen

13.4 yen 12.6 yen 12.4 yen 12.5 yen

11/1Q 11/2Q 11/3Q 11/4Q



12.5y en 12.1 yen 12.3 yen 12.7yen

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