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Interview with President and CEO12345678910

Q8.What are you going to emphasize in the growth strategies of existing businesses, the second of the basic strategies?

We have been working to strengthen value-chain businesses, such as retail finance, rental equipment, parts and service, and used equipment, which offer opportunities after sales of new equipment. The size of our value chain should continue to expand, supported by a growing size of our machine population. In this light, we expect to enjoy big opportunities in our existing businesses. As we take the best advantage of our strength of global sales and service networks and keep a distance from pricing competition, we are focusing our attention on customers’ merits for our further growth.

As of March 2013, the number of units installed with the KOMTRAX (Komatsu Machine Tracking System) topped 300,000 worldwide. The number of large equipment equipped with the KOMTRAX Plus for use in mines amounts to about 20,000. During the current fiscal year, we are going to introduce the KOMTRAX Parts, a remote management system for parts, to China. By remotely accessing information concerning the use of and replacement with genuine parts, which is vital to maintain our product quality, we will not only sustain expected machine performance and improve the level of our service but also expand sales of genuine parts.

In the parts business, our Aftermarket Business Division, established in 2012, is taking the leadership in strengthening operations for strategic parts, such as undercarriages, buckets, teeth, filters and attachments, for which we see ample space for sales expansion.

Through resale of used equipment generated in the rental business, the reinforcement of the retail finance business, and the development of sales and service operations in promising markets, such as the Middle East and Latin America, we have many areas with growth potential in our existing businesses. We are working to expand our business in these areas.

With respect to these sales and service operations, we are promoting our brand management activities in which we make customers’ real problems "visible" from their perspective, deepen the relationship with them by solving the problems together with them and increase their dependency on us. We will be continuing such brand management activities as one of our main commitments.

Xcentric™ Ripper
We have acquired the exclusive distribution rights in 82 countries and regions of the world for XcentricTM Ripper attachments for use in breaking rocks and demolition. We are starting pilot sales in China and the United States with a promising size of demand.

Training program for distributors in indonesia for the PC200-8MO hydraulic excavator, a new Strategic Markets-specific model