Komatsu : Business Results of FY2021 for First 3-Month Period(April-June, 2021)

Business Results of FY 2021 for the First 3-Month Period (April-June, 21)

【Telephone conference】

Komatsu Ltd. Participants

Takeshi Horikoshi	Director and Senior Executive Officer and CFO
Masatoshi Morishita	Senior Executive Officer and
	GM, Business Coordination Department and
	GM, Komatsu Economic Strategy Research Center
July 30, 2021

Contents

Ⅰ . Business Results for the First 3-Month Period (April-June,21) of FY2021

PP4-5:	Highlights, Segment Sales and Profits for the First 3-Month Period of FY2021
PP6-7:	Construction, Mining & Utility Equipment: Results for the First 3-Month Period of FY2021
P8:	Retail Finance: Assets and Revenues for the First 3-Month Period of FY2021
P9:	Industrial Machinery & Others: Results for the First 3-Month Period of FY2021
P10:	Consolidated Balance Sheets

Ⅱ. Outlook of FY2021 Business Results

P12: PP13-18:

PP19-20: P21:

Outline of Projection for FY2021

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

Appendix

P23: Daily Komtrax data

PP24-28: Quarterly Results

PP29-31:Book-to-Bill Ratio [Orders Received / Sales (6 Months)]

2

Ⅰ . Business Results for the First 3-Month Period

(April-June,21) of FY2021

3

Highlights for the First 3-Month Period (April-June,21) of FY2021

• Consolidated net sales increased by 41.3% from the corresponding period a year ago, to JPY648.2 billion.
• Operating income advanced by 129.4% to JPY61.7 billion. Operating income ratio was 9.5%, up 3.6 points.
• Net income attributable to Komatsu Ltd. surged by 151.6% to JPY40.8 billion.

	Apr.-Jun.,2020	Apr.-Jun.,2021	Changes (B-A)
Billions of yen	(A)	(B)
	¥107.5/USD	¥109.9/USD	Increase	Change
	¥118.6/EUR	¥131.7/EUR
	(Decrease)	%
	¥15.1/RMB	¥17.0/RMB
Net sales	458.7	648.2	+189.5	+41.3%
Segment profit	26.6	60.9	+34.2	+128.7%
Other operating income (Expenses)	0.2	0.8	+0.5	-
Operating income	26.9	61.7	+34.8	+129.4%
Profit ratio	5.9%	9.5%	+3.6pts.	-
Other income (Expenses)	1.5	(0.2)	(1.8)	-
Income before income taxes	28.4	61.4	+32.9	+115.7%
Net income attributable to	16.2	40.8	+24.6	+151.6%
Komatsu Ltd.

4

Segment Sales and Profits for the First 3-Month Period (April-June,21) of FY2021

・Construction, Mining & Utility Equipment: Sales advanced by 39.6% from the corresponding period a year ago, to JPY594.3 billion. Segment profit advanced by 131.3% to JPY53.6 billion. Segment profit ratio improved to 9.0%, up 3.6 points.

・Retail Finance: Revenues increased by 28.5% from the corresponding period a year ago, to JPY 20.4billion. Segment profit advanced by 69.7% to JPY3.2 billion.

・Industrial Machinery & Others: Sales increased by 63.2% from the corresponding period a year ago, to JPY40.8 billion. Segment profit climbed by 146.2% to JPY4.2 billion.

		Apr.-Jun., 2020	Apr.-Jun., 2021		Changes (B-A)
	Billions of yen	Increase	Change
	(A)		(B)
				(Decrease)	%
Net sales		458.7		648.2		+189.5	+41.3%
	Construction, mining & utility		425.8		594.3		+168.5	+39.6%
	equipment		[420.0]		[593.0]		[+173.0]	[+41.2%]
	Retail finance		15.9		20.4		+4.5	+28.5%
		[13.9]		[14.7]		[+0.8]	[+5.8%]
	Industrial machinery & others		25.0		40.8		+15.8	+63.2%
		[24.7]		[40.5]		[+15.7]	[+63.5%]
	Elimination		(8.0)		(7.3)		+0.6	-
Segment profit	5.8%	26.6	9.4%	60.9	+3.6pts.	+34.2	+128.7%
	Construction, mining & utility	5.4%	23.2	9.0%	53.6	+3.6pts.	+30.4	+131.3%
	equipment
	Retail finance	11.9%	1.8	15.7%	3.2	+3.8pts.	+1.3	+69.7%
	Industrial machinery & others	6.8%	1.7	10.3%	4.2	+3.5pts.	+2.4	+146.2%
			(0.1)		(0.1)		+0.0	-

Review of three business segments:% : Profit ratio [ ]: Sales after elimination of inter-segment transactions

■ Construction, Mining & Utility Equipment: Sales advanced, mainly supported by increased volume of sales and positive effects of foreign exchange rates. Segment profit climbed, mainly supported by increased volume of sales.

■ Retail Finance: Revenues advanced, supported by an increase in new contracts resulting from expanded sales of the construction, mining & utility equipment business. Segment profit advanced, reflecting no more adverse effects of an extension of payments, which were implemented and recorded for the corresponding period a year ago under the COVID-19 pandemic.

■ Industrial Machinery & Others: Concerning presses and machine tools for the automobile manufacturing industry, both sales and profits
advanced, reflecting recovering demand against the backdrop of regaining capital investment and the completion of installing machinery at
overseas customers' plants. With respect to products for the semiconductor manufacturing industry, both sales and profits increased, esp.	5
supported by excellent sales of the Excimer laser-related business.