Komatsu to Reorganize Japanese Sales and Service Structure for Construction Equipment

Komatsu Ltd. (President & CEO: Kunio Noji) announced today that Komatsu is going to reorganize the sales structure of its construction equipment business to further reinforce sales and service capabilities for sustainable growth and further business expansion in Japan. As main part of this reorganization, 13 consolidated sales subsidiaries (of all 30 distributors in Japan) and Komatsu All Parts Support Ltd., a wholly owned subsidiary engaging in the sale of wear-out parts for construction equipment, will be merged to establish Komatsu Japan Ltd. (provisional) effective April 1, 2009.
While the Japanese market has steadily lost its share of the global marketplace against the backdrop of expanding markets in emerging economies and resource-rich countries, the role of our domestic construction equipment operation remains very important. Under this reorganization, we will work to enhance our competitive strength in Japan. At the same time, we will continue to proactively apply our sales and service expertise, which has been accumulated over the years in the home market of Japan, to overseas operations in order to facilitate our growth on a global scale.

Through the new company, Komatsu will work to accelerate the speed of horizontal implementation of strategies and decision making. The new company will be better positioned to take advantage of its economies of scale to develop high-caliber employees with workplace expertise. Through effective allocation of such employees, the company should be able to analyze market information more precisely and quickly, as it will work to respond to diversifying customer needs to enhance customer satisfaction.

1) Corporate name: Komatsu Japan Ltd. (provisional)
2) Representative: Shinichiro Komiya, President
(Currently, Executive Officer and President, Japanese Marketing, Construction & Mining Equipment Marketing Division, Komatsu Ltd.)
3) Main line of business: Sales and service of construction equipment in Japan
4) Annual sales: Approx. 200 billion yen (projected after merger)
5) Capitalized: 6 billion yen (100% by Komatsu Ltd.)
6) Effective date of merger: April 1, 2009 (scheduled)
7) Head office: 2-3-6 Akasaka, Minato-ku, Tokyo, Japan

This reorganization will have no material impact on projected consolidated business results of Komatsu Ltd. for FY2008, ending March 31, 2009.


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