FY2015 Performance

Highlights of Business Results for FY2015

(April 1, 2015 – March 31, 2016)

For the fiscal year under review, which was the final year of the “Together We Innovate GEMBA Worldwide” mid-range management plan, consolidated net sales totaled JPY1,854.9 billion, and operating income, JPY208.5 billion. Operating income ratio was 11.2%. Net income attributable to Komatsu Ltd. amounted to JPY137.4 billion.

FY2015 Change from FY2014
Consolidated net sales JPY 1,854.9 bn -6.3%
Operating income JPY 208.5 bn -13.8%
Operating income ratio 11.2% -1.0 pt.
Net income attributable to
Komatsu Ltd.
JPY 137.4 bn -10.8%
ROE 9.0% -1.6 pts.

[Construction, Mining & Utility Equipment]

Sales of the construction, mining and utility equipment business amounted to JPY 1,641.0 billion, down 6.9% from the previous fiscal year. Segment profit declined by 19.0% to JPY 184.1 billion.

While continuing to face a challenging business environment, characterized by a drastic drop in demand for mining equipment and sluggish demand for construction equipment in emerging countries, Komatsu promoted SMARTCONSTRUCTION, a solutions business designed to realize “construction jobsites of the future”, mainly in Japan. With respect to intelligent Machine Control construction equipment, Komatsu launched it in Australia, following Japan, North America and Europe. Komatsu also broadened its model range during the year. As for products designed to comply with new emission standards, Komatsu has developed a total of 33 models and worked to expand their sales.

In the after-market business, Komatsu steadfastly captured demand, thereby achieving the record-high sales of spare parts for the year under review, renewing the previous record-high figure a year ago.

To reinforce operations in Asia, Komatsu opened a new assembly plant for hydraulic excavators in India and a new base for the remanufacturing of components and production of generators in Myanmar. In Mexico, an important market for its business, Komatsu acquired a local distributor in order to handle both construction and mining equipment businesses.

[Industrial Machinery & Others]

Sales decreased by 0.6% from FY2014, to JPY220.1 billion, and operating profit declined by 19.2%, to JPY19.3 billion. While GIGAPHOTON INC. expanded sales, supported by stable machine utilization of the semiconductor industry, sales of presses declined.

Under such an environment, Komatsu restructured its industrial machinery operations by consolidating the machine tools unit in the Toyama area and the sheet-metal and presses machines unit in the Ishikawa area.

During the year, GIGAPHOTON also developed and commercialized the leading-edge Excimer laser cutting machine model, designed to dynamically reduce the consumption of electric power and neon gas, and worked to expand sales thereof.

Five-Year Summary

Komatsu Ltd. and Consolidated Subsidiaries Millions of yen (except per share amounts)
FY2015 FY2014 FY2013 FY2012 FY2011
For the fiscal period
Net sales ¥1,854,964 ¥1,978,676 ¥1,953,657 ¥1,884,991 ¥1,981,763
Cost of sales 1,315,773 1,401,193 1,393,048 1,377,459 1,440,765
Operating income 208,577 242,062 240,495 211,602 256,343
Operating income ratio 11.2% 12.2% 12.3% 11.2% 12.9%
Income before income taxes and equity in earnings of affiliated companies 204,881 236,074 242,056 204,603 249,609
Net income attributable to Komatsu Ltd. 137,426 154,009 159,518 126,321 167,041
Capital investment 160,051 192,724 179,070 136,962 122,038
At fiscal period-end
Total assets ¥2,614,654 ¥2,798,407 ¥2,651,556 ¥2,517,857 ¥2,320,529
Working capital 685,559 716,524 701,201 664,480 536,662
Property, plant and equipment 697,742 743,919 667,347 585,220 529,656
Long-term debt-less current maturities 212,636 279,270 311,067 343,814 312,519
Komatsu Ltd. shareholders' equity 1,517,414 1,528,966 1,376,391 1,193,194 1,009,696
As percentage of total assets 58.0% 54.6% 51.9% 47.4% 43.5%
Per share data
Net income attributable to Komatsu Ltd.
per share: Basic

¥     145.80

¥     162.07

¥     167.36

¥     132.64

¥     173.47
:Diluted 145.61 161.86 167.18 132.51 173.32
Cash dividends per share* 58 58 53 45 41
Komatsu Ltd. shareholders' equity per share 1,609.69 1,622.48 1,443.97 1,252.33 1,060.31
* Cash dividends per share provided above are based on dividends paid each fiscal year.