JAPANESE

Notice of Closing of Acquisition of Joy Global Inc.

On July 21, 2016, Komatsu Ltd. (Head Office: Minato-ku, Tokyo. President and CEO: Tetsuji Ohashi) (hereafter "Komatsu") announced that Komatsu planned to acquire Joy Global Inc. (Head office: Wisconsin, USA, hereafter "Joy Global", NYSE) (hereafter the "Acquisition"), a leading manufacturer of surface and underground mining equipment in the United States, through Komatsu America Corp. (Head office: Illinois, USA, Chairman and CEO: Rodney Schrader), a wholly-owned subsidiary of Komatsu in the US. Effective April 5, 2017 (local time: UTC-5), Komatsu closed the Acquisition after receiving all necessary regulatory approvals. The consideration of the Acquisition of common shares of Joy Global was approximately USD 2,820 million, and advisory fees and other expenses were approximately JPY 3.4 billion.
Komatsu plans to change the trade name of Joy Global to Komatsu Mining Corp. Komatsu will provide further information on the details, such as the timing of change, once such details are decided.

Komatsu will also promptly disclose any effects of the Acquisition on our consolidated financial statements in case any reportable matter arises.
The business combination resulting from the Acquisition is expected to have certain effects on our accounting procedures. For FY2017 and onward, Komatsu plans to include inventories after conducting a fair value measurement in its cost of sales and also recognize expenses for the depreciation of intangible fixed assets. Komatsu will conduct a fair value measurement of the acquired assets and assumed obligations pursuant to Financial Accounting Standards Board Accounting Standards Codification 805, "Business Combinations" and, after completion of accounting audit, will finalize the quantitative effects of such treatments within one year.


Outline of Joy Global



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

2017/04/06

No. 0003(2659)
KOMATSU Corporate Communications
TEL: 03(5561)2616