Personnel and Organization

Komatsu Ltd. today announced that the Board of Directors, at a meeting held today, made a resolution to change the members of the Board of Directors, executive officers and global officers.
Since October 1, 2001, Komatsu has focused its efforts on a V-shaped recovery of profits through the Reform of Business Structure project. This reform calls for the implementation of its new growth strategy for the construction and mining equipment business, the reduction of fixed costs, the restructuring of the electronics business and other tasks. For fiscal 2002 ending March 31, 2003, the Company expects to make the first step successfully toward that recovery. For fiscal 2003 starting April 1, 2003, while doubling its efforts in the Reform, the Company has decided to change the management personnel and system in order to further reinforce its corporate governance as the infrastructure of the Reform, as follows.
Masahiro "Shank" Sakane, President and CEO explains,
"The business structure reform project is making good progress. For my third year as president, I would like to focus more attention on the promotion of our "Spirit of Manufacturers" concept-driven reform and the reinforcement of corporate governance. I feel proud to say that Komatsu is one of the leading Japanese companies in the area of corporate governance.
In 1999 we reorganized the Board of Directors, in which the number of board members was reduced from 26 to 8. As a result, we became able to discuss important management issues more substantially and thoroughly than before and to accelerate the speed of decision making. We also established the Compensation Committee, mostly with external members, as well as the Board of Auditors with two internal and two external members. I believe both organizations have been playing their roles effectively, maintaining their neutrality and checking the soundness of management.
To further enhance the neutrality, transparency and fairness of the Board of Directors based on our previous reorganization, we have decided to increase the number of external directors from one to two. For my third year I would like to further clarify my position and responsibilities as CEO, and lead the business structure reform project to solidify the foundation to generate profits."

1) Major Changes
1) In the past, personnel changes which were reported at the annual shareholders meetings were decided at the Board of Directors meeting which was held (usually in early May) for final discussions of fiscal business results. To start the new fiscal year with a new board team and ensure consistent and fully responsible work for the entire year, we have decided that personnel changes will be announced in March. (Personnel changes to be reported at the annual shareholders meeting will be officially decided at the Board of Directors meeting for final discussions of fiscal business results as previously done.)
2) To better define the roles and responsibilities of directors and executive officers, effective March 31, 2003, the conventional titles of executive managing director and managing director will be abolished.
3) To further clarify the responsibilities and authority of executive officers, concerned personnel changes (such as promotion, new appointment and retirement) will be made effective April 1 as a general rule, in line with the fiscal year.
4) Effective March 31, 2003, the Global Officers System will be abolished in a proactive manner, because Komatsu's commitment to globally consolidated management has firmly taken root with the introduction of the Regional Directors and Regional Headquarters systems.

2) Personnel Changes
Please see the attachments.
Attachments
1) Personnel Changes: Board of Directors
2) Personnel Changes: Board of Auditors
3) Personnel Changes: Executive Officers
4) Organizational Change of Management and Personnel Changes of Managers

*You can refer to more detailed information in a PDF formatted file from an upper right link.


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For inquiries concerning this press release, please contact:
Masakatsu (Mark) Hioki,
General Manager, Corporate Communications,
Komatsu Ltd.
Phone: +81-(0)3-5561-2616