To All Our Stakeholders


  • Tetsuji Ohashi , President and CEO
  • Kunio Noji , Chairman of the Board


For the fiscal year under review (April 1, 2013 - March 31, 2014), in the construction, mining and utility equipment business, while demand for mining equipment remained slack, that for construction equipment increased in Japan, China and some other regions. In addition, reflecting the Japanese yen's depreciation, sales increased from the previous fiscal year. With respect to the industrial machinery and others business, while sales of sheet-metal and press machines were firm, total sales declined from the previous fiscal year, largely affected by a further decline in sales of wire saws. As a result, consolidated net sales for the year increased by 3.6% from the previous fiscal year, to JPY1,953.6 billion.

Concerning profits, operating income improved by 13.7% from the previous fiscal year, to JPY240.4 billion, supported by the Japanese yen's depreciation and our continued focus on improving selling prices and production costs, as well as curtailing fixed costs. Operating income ratio was 12.3%, up 1.1 percentage point.

  • Consolidated Business Results for the year <U.S.GAAP>
    Fiscal year ended March 31, 2014 (FY2013)
    Billions of JPY
    (except for operating income ratio)
    Results for
    the year
    Net sales1,953.6+ 3.6%
    Operating income240.4+ 13.7%
    Operating income ratio12.3%+ 1.1 pt
    Income before income taxes and
    equity in earnings of affiliated companies
    242.0+ 18.3%
    Net income attributable to Komatsu Ltd.159.5+ 26.3%
    Sales by operation (Based on the amounts before elimination of transactions between operations)
     Results for
    the year
    Construction, Mining and Utility Equipment1,752.2+ 4.3%
    Industrial Machinery and Others209.1- 3.3%
    Total1,953.6+ 3.6%

    Note: Figures are rounded down to the hundred-million JPY.


    Annual cash dividends per share:
    FY2012: JPY 48
    FY2013: JPY 58
    FY2014: JPY 58 (planned)

    Dividend Policy
    ・Concerning cash dividends to our shareholders, we continue to maintain the policy of redistributing profits by considering consolidated business results to strive to continue stable dividends.
    ・We have set the goal of a consolidated payout ratio of 30% or higher, and maintain the policy of not decreasing dividends as long as a consolidated payout ratio does not surpass 50%.

  • Projections for the Fiscal Year 2014
    (Announced on April 25, 2014)
    Fiscal year ending March 31, 2015 (FY2014)
    Billions of JPY
    (except for operating income ratio)
    Net sales1,880.0- 3.8%
    Operating income243.0+ 1.0%
    Operating income ratio12.9%+0.6 pts
    Income before income taxes and
    equity in earnings of affiliated companies
    237.0- 2.1%
    Net income attributable to Komatsu Ltd.154.0- 3.5%

    Note: Figures are rounded down to the hundred-million JPY.

Achievements and Tasks Ahead

In April 2013, we embarked on the “Together We Innovate GEMBA Worldwide” three-year, mid-range management plan. Since then, we have engaged in business that emphasizes three focused efforts: 1) growth strategies based on innovation; 2) growth strategies of existing businesses; and 3) structural reforms designed to reinforce our business foundation.

With respect to growth strategies based on innovation, we launched the medium-sized D61PXi-23 intelligent Machine Control (iMC) dozers in North America, Europe and Japan. This model features the world's first automatic blade control as a next-generation product. We also widened its model range. Concerning strategies of existing businesses, by taking advantage of KOMTRAX (Komatsu Machine Tracking System) information about machine operations, we worked to strengthen the aftermarket business, which includes the provision of services and sales expansion of strategic parts.

With respect to models certified for new emission regulations, which have become effective in the United States, Europe and Japan since 2011, we continued an aggressive market introduction together with KOMATSU CARE, a service program designed to reduce the total lifecycle costs of these models and prolong machine life. In structural reforms designed to reinforce our business foundation, we facilitated activities to cut down electric power consumption to half at all plants in Japan, including a new factory which will feature dynamic energy-saving and productivity by means of cutting-edge technologies, at the Awazu Plant in Ishikawa Prefecture, Japan.

Looking ahead, we will step up our group-wide efforts to reinforce business models designed to offer comprehensive merits to customers, and strive to expand sales in the entire value chain, which includes not only sales of new equipment but also rental-to-used equipment and retail finance businesses. At the same time, we will also make continuous efforts to improve selling prices, production costs and the like.

Environmental Conservation Efforts

We consider environmental conservation efforts a top management priority of the Komatsu Group. Based on the Komatsu Earth Environment Charter, the Komatsu Group is working to reduce environmental impact in each and every aspect of its business activities.

In the area of product development, we are making concerted efforts to not only develop models featuring super fuel economy and low CO2 emissions in response to the latest emission regulations in Japan, the United States and Europe, but also cut down environmental load in the entire product lifecycle, for example, by developing iMC dozers capable of dramatically shortening the construction period.

With respect to production, we are promoting the project to cut down power consumption volume to half in all plants in Japan. In May 2014, we began operation at a new assembly factory at the Awazu Plant. This factory incorporates dynamic process reforms and cutting-edge, high-efficiency facilities, achieving both improved productivity and outstanding reduction of purchase power consumption. We will continue to implement production reforms driven by reduction of power consumption in all other plants in Japan as planned. At the same time, we are also continuing to advocate the development of a recycling-oriented society and conserve air and water environments as well as biodiversity.

CSR Efforts

We define our CSR priorities by understanding where our business activities intersect with our contributions to society, and we specify three areas of focused efforts on a global scale as follows.

• Enhancing quality of life: providing products required by society
• Developing people
• Growing with society

Through innovations, such as Autonomous Haulage System (AHS) and iMC dozers, we are working to provide realistic solutions by not only enhancing economy and safety but also responding to social issues, such as labor shortage. In the area of human resource development, we are not only strengthening our distributors outside of Japan, but also developing people to meet the needs of local communities around the world. To ensure sustainable growth of society by promoting group-wide efforts, we think about what we can and must do by capitalizing on our strengths built on through business, such as reconstruction assistance in the regions destroyed by the Great East Japan Earthquake and tsunami of 2011 as well as removal of landmines and community redevelopment in Cambodia and Angola.

Based on the belief that “our corporate value is the total sum of trust given to us by society and all our stakeholders,” we are further strengthening our corporate governance to ensure sound and transparent management, while improving management efficiency. We will also ensure all employees share The KOMATSU Way and continue to constantly address the fundamentals of safety, environmental conservation, compliance and business performance. We will also facilitate both the development of corporate strength and the achievement of social responsibility in a well-balanced manner.

On behalf of the members of the Board, we would like to extend our sincere appreciation to our stakeholders around the world for their support.

July 2014

  • Kunio Noji

    Kunio Noji
    Chairman of the Board

  • Tetsuji Ohashi

    Tetsuji Ohashi
    President and CEO