Komatsu : > FY2022 Nine months

Komatsu Ltd.

Sustainability Promotion Division

Corporate Communications Dept.

Tel: [phone]

Date: January 31, 2023

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

Consolidated Business Results for Nine Months of the Fiscal Year Ending

March 31, 2023 (U.S. GAAP)

1. Results for Nine Months Ended December 31, 2022

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

		Millions of yen except per share amounts
	Nine Months ended	Nine Months ended	Changes
	December 31, 2022	December 31, 2021	Increase (Decrease)
	[A]	[B]	[A-B]	[(A-B)/B]
Net sales	2,539,232	2,014,677	524,555	26.0%
Operating income	346,599	223,763	122,836	54.9%
Income before income taxes and equity	339,807	224,315	115,492	51.5%
in earnings of affiliated companies
Net income attributable to Komatsu Ltd.	231,911	155,502	76,409	49.1%
Net income attributable to Komatsu Ltd.
per share (Yen)	¥245.30
Basic	¥164.53	¥80.77
Diluted	¥245.26	¥164.49	¥80.77

Note: Comprehensive income for nine months ended December 31, 2022 and 2021

2022: 305,754 millions of yen, up 37.0% from 2021

2021: 223,151 millions of yen, up 138.8% from 2020

(2) Consolidated Financial Position

	Millions of yen except per share amounts
	As of December 31, 2022	As of March 31, 2022
Total assets	4,783,649	4,347,522
Total equity	2,538,289	2,356,277
Komatsu Ltd. shareholders' equity	2,407,652	2,232,511
Komatsu Ltd. shareholders' equity ratio	50.3%	51.4%
Komatsu Ltd. shareholders' equity per share (Yen)	¥2,546.21	¥2,361.66

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2. Dividends

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

Yen

	The entire FY ending March 31, 2023	The entire FY ended
	Results	2023 Projections	March 31, 2022
First quarter period
Second quarter period	64.00		40.00
Third quarter period
Year-end		64.00	56.00
Total		128.00	96.00

Note: Changes in the projected cash dividend as of January 31, 2023: None

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	3,460,000		23.5%
	Operating income	440,000		38.8%
	Income before income taxes and equity	432,000		33.1%
	in earnings of affiliated companies
	Net income attributable to Komatsu Ltd.	298,000		32.5%
	Net income attributable to Komatsu Ltd.	¥315.19
	per share - Basic (Yen)

Notes: 1) Changes in the latest projected consolidated business results as of January 31, 2023: 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 nine-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

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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 December 31, 2022: 973,450,930 shares

As of March 31, 2022:

973,145,800 shares

1. The numbers of treasury stock were as follows: As of December 31, 2022: 27,866,853 shares

As of March 31, 2022:

27,833,236 shares

1. The weighted average numbers of common shares outstanding were as follows: Nine months ended December 31, 2022: 944,594,059 shares
   Nine months ended December 31, 2021: 944,148,028 shares

[Reference]

Results for Three Months ended December 31, 2022

		Millions of yen except per share amounts
	Three Months	Three Months	Changes
	ended December	ended December
	Increase (Decrease)
	31, 2022	31, 2021
	[A]	[B]	[A-B]	[(A-B)/B]
Net sales	920,497	723,277	197,220	27.3%
Operating income	134,965	87,479	47,486	54.3%
Income before income taxes and equity	112,048	87,806	24,242	27.6%
in earnings of affiliated companies
Net income attributable to Komatsu Ltd.	69,343	62,361	6,982	11.2%
Net income attributable to Komatsu Ltd.
per share (Yen)	¥73.33
Basic	¥65.97	¥7.36
Diluted	¥73.32	¥65.96	¥7.36

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Appendix

Management Performance and Financial Conditions

1. Outline of Operations and Business Results …………..………………………. P.5
2. Financial Conditions ……………………………………………..……………. P.10
3. Projection for the Fiscal Year Ending March 31, 2023 ……………………….. P.10
4. Others…………….………………………..…………………………………… P.11

Consolidated Financial Statements

1. Consolidated Balance Sheets …………………………………………………… P.12
2. Consolidated Statements of Income and
   Consolidated Statements of Comprehensive Income…………………………… P.14
3. Consolidated Statements of Cash Flows ……………………………………… P.18
4. Note to the Going Concern Assumption ……………………………………… P.19
5. Business Segment Information ………………………………………………… P.19
6. Note in Case of Notable Changes in the Amount of Shareholders' Equity …… P.21

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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") embarked on the three-year,mid-term management plan, "DANTOTSU Value - Together, to 'The Next' for sustainable growth", in April 2022 to create new values for the next 100 years. Under this management plan for the target fiscal year ending March 31, 2025, Komatsu upholds three pillars of growth strategies of 1) Accelerate growth by means of innovation, 2) Maximize earnings power, and 3) Enhance corporate resilience. Komatsu will continue to emphasize the previous plan's sustainability management. In that plan, we work for sustainable growth through a positive cycle for improvement of earnings and ESG resolutions, thereby working to build an operational structure that is resilient to changes in demand.

For the nine-month period (April 1- December 31, 2022) of the fiscal year ending March 31, 2023, the first year of the mid-term management plan, consolidated net sales totaled JPY 2,539.2 billion, up 26.0% from the corresponding period a year ago. In the construction, mining and utility equipment business, demand for mining equipment expanded, centering on North America and Asia. Komatsu steadily captured demand for new equipment by capitalizing particularly on cross-sourcing. Komatsu also advanced parts sales and service revenues. Reflecting improved selling prices in almost all regions of the world and the Japanese yen's depreciation, sales increased from the corresponding period a year ago. In the industrial machinery and others business, sales of the Excimer laser- related business remained strong, supported by expanding demand for semiconductors worldwide. With respect to presses, sheet-metal machines, and machine tools for the automobile manufacturing industry, sales of large presses declined in particular. As a result, sales of this business decreased from the corresponding period a year ago.

With respect to profits for the nine-month period under review, operating income surged by 54.9% from the corresponding period a year ago, to JPY 346.6 billion, reflecting improved selling prices and the Japanese yen's depreciation, which more than offset the adverse effects of increased prices of materials and logistics costs. The operating income ratio improved by 2.5 percentage points to 13.6%. Income before income taxes and equity in earnings of affiliated companies expanded by 51.5% to JPY 339.8 billion. Net income attributable to Komatsu Ltd. climbed to JPY 231.9 billion, up 49.1%.

Concerning one of the ESG management targets in its mid-term management plan, Komatsu was selected as a component of the Dow Jones Sustainability Indices World Index again. Komatsu was awarded with a position on the A List for climate change and water security by CDP, the non-profit global environmental disclosure platform.

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