Komatsu to Establish Trust for Human Resource Development in South Africa

Komatsu Ltd. (President & CEO: Tetsuji Ohashi) ("Komatsu") will establish a broad-based trust in South Africa to provide human resource development programs for the Historically Disadvantaged South Africans as defined in Mining Charter ("HDSAs"). The trust will be established in July, 2014 under the name of the Komatsu Development Trust ("Komatsu Trust").

In South Africa, the disparity between white people and HDSAs who suffered from discrimination during the Apartheid Era has not been fully redressed, 20 years after the legal end of Apartheid. Economic equality remains a social challenge today. In response, the South African government, through legislative actions and the adoption of policies, is working to advance the economic status of HDSAs. As part of this effort, the mining industry, in particular, is responding to the government's call to action by setting a goal of increasing the ownership interest of HDSAs in mining-related companies in South Africa. These efforts have already been proven effective, with ownership by HDSAs within the mining industry on the rise.

In South Africa, Komatsu owns Komatsu Southern Africa (Pty) Ltd. ("KSAf"), jointly with Itochu Corporation, which holds a 20% interest in KSAf. KSAf is engaged in the sales and service of construction and mining equipment in South Africa and neighboring countries. KSAf will transfer all of its business to a newly established company, 25.04% of which will be owned by Komatsu Trust, with the remaining interests owned by KSAf. Komatsu Trust will invest part of its dividend from the new company to provide human resource development programs for HDSAs - funding programs to train operators and mechanics working with construction and mining equipment, as well as continuing to provide youth education programs that KSAf has provided jointly with one of its customers since 2007. Komatsu Trust's charitable and educational efforts will be developed and implemented under the guidance of the trustees of Komatsu Trust. Komatsu Trust does not intend to accept unsolicited requests for funds.

Komatsu is also engaged in training instructors and mechanics in other countries in Africa to increase employment opportunities and support participation of the local population in the mining industry. To this end, Komatsu established Komatsu Training centers in Dakar, Senegal in 2009 and in Nairobi, Kenya in 2010. In Angola, in alliance with Japan Mine Action Service (JMAS), a non-profit organization, Komatsu has been involved in community development projects, donating demining equipment to demine and rehabilitate areas contaminated with landmines. The establishment of Komatsu Trust represents another step forward in Komatsu's social contribution efforts in Africa.

Komatsu is committed to perform its corporate social responsibility ("CSR") through its business activities by focusing on human resource development and growth with society. Komatsu Trust's funding of human resource development programs will further Komatsu's CSR efforts, contribute to South African society, and help the South African mining industry develop further. In addition, Komatsu Trust, which meets the requirements of the widely accepted industry standards established by the Mining Charter, is an important effort by Komatsu to support and reinforce its relationship with its mining customers.

Komatsu anticipates a minimal effect on its consolidated business results from the ownership by Komatsu Trust of a 25.04% interest in the newly established company.

Information in the news releases is current on the date of the announcement and is subject to change without notice.


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