Komatsu : Consolidated Business Results for the Fiscal Year Ended March 31, 2022 (U.S. GAAP)

Komatsu Ltd.

Sustainability Promotion Division Corporate Communications Dept. Tel: [phone]

Date: April 28, 2022

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

Consolidated Business Results for the Fiscal Year Ended

March 31, 2022 (U.S. GAAP)

1. Results for the Fiscal Year Ended March 31, 2022

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

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

Millions of yen except per share amounts

2022	2021	Changes
[A]	[B]	[A-B]	[(A-B)/B] (%)
Net sales	2,802,323	2,189,512	612,811	28.0%
Operating income	317,015	167,328	149,687	89.5%
Income before income taxes and equity in earnings of affiliated companies	324,568	162,775	161,793	99.4%
Net income attributable to Komatsu Ltd.	224,927	106,237	118,690	111.7%
Net income attributable to Komatsu Ltd. per share (Yen) Basic Diluted	¥237.97 ¥237.92	¥112.43 ¥112.39	¥125.54 ¥125.53
Return on equity	10.9%	5.8%	5.1%
Return on total assets	8.0%	4.4%	3.6%
Return on sales	11.3%	7.6%	3.7%

Notes: 1) Comprehensive income:

2022: 411,438 millions of yen, up 90.4% from 2021

2021: 216,095 millions of yen, up 226.1% from 2020

• 2) Equity in earnings of affiliated companies:

  2022: 5,258 millions of yen

  2021: 2,760 millions of yen

• 3) Return on equity is calculated by using net income attributable to Komatsu Ltd. and total Komatsu Ltd.

  shareholders' equity.

• 4) Return on total assets is calculated by using income before income taxes and equity in earnings of affiliated companies.

• 5) Return on sales is calculated by using operating income.

(2) Consolidated Financial Position

(As of March 31, 2022 and 2021)

Millions of yen except per share amounts

2022	2021
Total assets	4,347,522	3,784,841
Total equity	2,356,277	2,012,025
Komatsu Ltd. shareholders' equity	2,232,511	1,912,297
Komatsu Ltd. shareholders' equity ratio	51.4%	50.5%
Komatsu Ltd. shareholders' equity per share (Yen)	¥2,361.66	¥2,023.34

(3) Consolidated Cash Flows

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

Millions of yen

2022	2021
Net cash provided by (used in) operating activities	300,970	354,129
Net cash provided by (used in) investing activities	(143,569)	(163,057)
Net cash provided by (used in) financing activities	(93,868)	(199,667)
Cash and cash equivalents, end of year	315,360	241,803

2. Dividends

(For the fiscal years ending March 31, 2023 and ended March 31, 2022 and 2021)

2022	2021
Cash dividends per share (Yen) Interim Year-end Total	40.00 56.00 96.00	18.00 37.00 55.00
Annual dividends (Millions of yen)	90,791	52,005
Payout ratio (Consolidated basis) (%)	40.3%	48.9%
Dividends as percentage of equity (Consolidated basis) (%)	4.4%	2.8%

48.00

48.00

3. Projections for the Fiscal Year Ending March 31, 2023

(From April 1, 2022 to March 31, 2023)

Millions of yen except per share amounts

2023 Changes Increase (Decrease)
Net sales	3,000,000	7.1%
Operating income	346,000	9.1%
Income before income taxes and equity in earnings of affiliated companies	333,500	2.8%
Net income attributable to Komatsu Ltd.	226,000	0.5%
Net income attributable to Komatsu Ltd. Per share - Basic (Yen)	¥239.07

Notes: 1) Percentages shown above represent the rates of change compared with the corresponding periods a year ago.

2) Refer to "Management Performance and Financial Conditions" for preconditions of the projections above and other related issues.

4. Others

• (1) Changes in important subsidiaries during the year under review: None

• (2) Changes in accounting standards, procedures and presentations

  • 1) Changes resulting from revisions in accounting standards, etc.: None

  • 2) Change in other matters except for 1) above: None

  Note: Refer to "Changes resulting from revisions in accounting standards, etc." on page 21 for more details.

• (3) Number of common shares outstanding

  • 1) The numbers of common shares issued (including treasury stock) as of March 31 were as follows:

    2022: 973,145,800 shares

    2021: 972,887,610 shares

  • 2) The numbers of treasury stock as of March 31 were as follows:

    2022: 27,833,236 shares

    2021: 27,766,444 shares

  • 3) The weighted average numbers of common shares outstanding were as follows:

    2022: 944,152,659 shares

    2021: 944,146,222 shares

  Note: Refer to "Net Income per Share" on page 24 for the number of common shares, which was used as the basis for calculating the amount of net income attributable to Komatsu Ltd. per share.

[Reference]

Financial Highlights of Komatsu Ltd. ("Company")

The following financial information is prepared based on the non-consolidated financial results of the Company in accordance with generally accepted accounting principles and practices in Japan.

Results for the Fiscal Year Ended March 31, 2022

(1) Non-Consolidated Financial Highlights

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

Millions of yen except per share amounts

2022	2021	Changes Increase (Decrease)
[A]	[B]	[A-B]	[(A-B)/B] (%)
Net sales	952,247	653,587	298,660	45.7%
Ordinary profit	94,135	25,055	69,080	275.7%
Net income	78,342	21,875	56,467	258.1%
Net income per share (Yen) Basic Diluted	¥82.85 ¥82.83	¥23.14 ¥23.13	¥59.71 ¥59.70

(2) Non-Consolidated Financial Position

(As of March 31, 2022 and 2021)

Millions of yen except per share amounts

2022	2021
Total assets	1,403,535	1,332,733
Net assets	801,435	797,596
Equity ratio (%)	57.1%	59.8%
Net assets per share (Yen)	¥847.04	¥842.84

Note: Shareholders' equity:

2022: 801,101 million yen

2021: 796,964 million yenNotes:

- Sales and profits gains reports are not subject to audit by CPA or audit firm.

- Explanations concerning the appropriate use of the forecasts for results of operations and other special matters.

1. The aforementioned forecasts, plans and projections for results of operations in this report are determined by top management of the Company to be reasonable, based on the currently available information. Please be advised that actual results may differ significantly from the forecasts, plans or projections in this report, due to a variety of changing factors. Such factors may include economic conditions and changes in demand for products in major markets, fluctuations on the foreign exchange market, and changes in regulations, accounting standards and practices in Japan and abroad.

2. Concerning the background and preconditions of the forecasts for results of operations, refer to "Projections for the Fiscal Year Ending March 31, 2023" on page 10 of the attachment.

3. Amounts, shown in the outline of Financial Highlights of the Company, are rounded to the nearest million yen.

4. The Company plans to upload the contents (voice) of Financial Results Briefing together with related

materials and supplementary information to the Company's website (https://www.komatsu.jp/en/ir).

Appendix

Management Performance and Financial Conditions

(1) Outline of Operations and Business Results ………… .. ……………………… . P.6

(2) Financial Conditions …………………………………………… .. …………… . P.12

(3) Basic Policy for Redistribution of Profits and Dividends for the Fiscal Year

under Review and Next Fiscal Year ………………………………………….... P.12

Basic Stance on Selection of Accounting Standards …………………… ... P.13

Consolidated Financial Statements

(1) Consolidated Balance Sheets ………………………………………………… .. P.14

(2) Consolidated Statements of Income and Consolidated Statements of

Comprehensive Income ……………………………………………………… .. P.16

(3) Consolidated Statements of Equity …………………………………………… . P.18

(4) Consolidated Statements of Cash Flows ……………………………………… . P.20

(5) Note to the Going Concern Assumption ……………………………………… . P.21

(6) Basis of Consolidated Financial Statements ………………………………… ... P.21

(7) Notes to Consolidated Financial Statements ………………………………… ... P.22

1) Business Segment Information ………………………………………… P.22

2) Net Income per Share …………………………………………………… P.24

3) Significant Subsequent Events ………………………………………… P.24

4) Others …………………………………………………………………… P.24