Komatsu : Consolidated Business Results for Three Months of the Fiscal Year Ending March 31, 2022 (U.S. GAAP)

Komatsu Ltd.

Sustainability Promotion Division

Corporate Communications Dept.

Tel: [phone]

Date: July 30, 2021

URL: https://www.komatsu.jp/en

Consolidated Business Results for Three Months of the Fiscal Year Ending

March 31, 2022 (U.S. GAAP)

1. Results for Three Months Ended June 30, 2021

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

Millions of yen except per share amounts

Net sales Operating income

Income before income taxes and equity in earnings of affiliated companies

Three Months ended	Three Months ended	Changes
June 30, 2021	June 30, 2020	Increase (Decrease)
[A]	[B]
[A-B]	[(A-B)/B]
648,266	458,731	189,535	41.3%
61,750	26,919	34,831	129.4%
61,454	28,497	32,957	115.7%

Net income attributable to Komatsu Ltd.	40,892	16,251	24,641	151.6%
Net income attributable to Komatsu Ltd.
per share (Yen)
Basic			¥43.27	¥17.20		¥26.07
Diluted			¥43.26	¥17.20	¥26.06
Note: Comprehensive income for three months ended June 30, 2021 and 2020
2021:	58,654 millions of yen, up 73.0% from 2020
2020:	33,911 millions of yen, up 111.3% from 2019
(2) Consolidated Financial Position
					Millions of yen except per share amounts
				As of June 30, 2021	As of March 31, 2021
Total assets					3,790,389	3,784,841
Total equity					2,031,104	2,012,025
Komatsu Ltd. shareholders' equity			1,931,846	1,912,297
Komatsu Ltd. shareholders' equity ratio			51.0%			50.5%
Komatsu Ltd. shareholders' equity per share (Yen)			¥2,044.33	¥2,023.34

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2. Dividends

(For the fiscal years ended March 31, 2021 and ending March 31, 2022)

Yen

	2021	2022 Projections
First quarter period
Second quarter period	18.00	31.00
Third quarter period
Year-end	37.00	31.00
Total	55.00	62.00

Note: Changes in the latest projected cash dividend as of July 30, 2021: None

3. Projections for the Fiscal Year Ending March 31, 2022

(From April 1, 2021 to March 31, 2022)

Millions of yen except per share amounts

			2022
				Changes
				Increase (Decrease)
	Net sales	2,469,000	12.8%
	Operating income	225,000	34.5%
	Income before income taxes and equity	217,000	33.3%
	in earnings of affiliated companies
	Net income attributable to Komatsu Ltd.	146,000	37.4%
	Net income attributable to Komatsu Ltd.

per share - Basic (Yen)

¥154.48

Notes: 1) Changes in the latest projected consolidated business results as of July 30, 2021: None

1. Percentages shown above represent the rates of change compared with the corresponding period a year ago.

4. Others

1. Changes in important subsidiaries during the three-month period under review: None
2. Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None
3. Changes in significant accounting rules, procedures and presentation and changes in significant accounting policies and estimates
4. 1. Changes resulting from revisions in accounting standards, etc.: None
   2. Changes in other matters except for 1) above: None

Note: See (4) Others on page 10 for more details.

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(4) Number of common shares outstanding

1) The numbers of common shares issued (including treasury stock) were as follows: As of June 30, 2021: 972,887,610 shares

As of March 31, 2021: 972,887,610 shares

2) The numbers of shares of treasury were as follows: As of June 30, 2021: 27,908,596 shares

As of March 31, 2021: 27,766,444 shares

1. The weighted average numbers of common shares outstanding were as follows: Three months ended June 30, 2021: 944,176,181 shares
   Three months ended June 30, 2020: 944,058,787 shares

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Appendix

Management Performance and Financial Conditions

1. Outline of Operations and Business Results …………………………………… P.5
2. Financial Conditions …………………………………………………………… P.9
3. Projection for the Fiscal Year Ending March 31, 2022 ………………………... P.9
4. Others …………………………………………………………………………... P.10

Consolidated Financial Statements

1. Consolidated Balance Sheets …………………………………………………... P.11
2. Consolidated Statements of Income and
   Consolidated Statements of Comprehensive Income ………………………….. P.13
3. Consolidated Statements of Cash Flows ………………………………………. P.15
4. Note to the Going Concern Assumption ………………………………………. P.16
5. Business Segment Information ………………………………………………… P.16
6. Note in Case of Notable Changes in the Amount of Shareholders' Equity ……. P.17

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Management Performance and Financial Conditions

(1) Outline of Operations and Business Results

Komatsu Ltd. ("Company") and its consolidated subsidiaries (together "Komatsu") have engaged in the three-yearmid-term management plan, "DANTOTSU Value - FORWARD Together for Sustainable Growth", to be completed in the fiscal year ending March 31, 2022. Under the mid-term management plan, Komatsu upholds three pillars of growth strategies of 1) value creation by means of innovation, 2) growth strategies based on business reforms, and 3) structural reforms for growth. Komatsu will continue to make efforts for sustainable growth through a positive cycle of improving earnings and solving ESG issues into the future.

For the first three-month period (April 1- June 30, 2021) of the fiscal year ending March 31, 2022, the final year of the mid-term management plan, consolidated net sales totaled JPY 648.2 billion, up 41.3% from the corresponding period a year ago. In the construction, mining and utility equipment business, demand for both construction and mining equipment was strong around the world, except for China, as the adverse effects of the coronavirus (COVID-19) pandemic shrank from the corresponding period a year ago. As a result, sales advanced from the corresponding period a year ago, as Komatsu steadily captured demand for new equipment and increased sales of parts and service revenues. In the industrial machinery and others business, sales advanced from the corresponding period a year ago, reflecting not only recovering trend of capital investment of presses, sheet-metal machines, and machine tools for the automobile manufacturing industry, but also brisk demand for the Excimer laser-related business for the semiconductor industry.

With respect to profits for the first three-month period under review, operating income surged by 129.4% from the corresponding period a year ago, to JPY 61.7 billion. This was mainly due to improved sales volume and selling prices in many regions in the construction, mining and utility equipment business, as well as the Japanese yen's depreciation. The operating income ratio improved by 3.6 percentage points to 9.5%. Income before income taxes and equity in earnings of affiliated companies expanded by 115.7% to JPY 61.4 billion. Net income attributable to Komatsu Ltd. climbed to JPY 40.8 billion, up 151.6%.

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