Interim report
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Komatsu Ltd. Corporate Communications Dept. Sustainability Promotion Division Tel: +81-(0)3-6849-9703 Date: April 28, 2025 URL: https://www.komatsu.jp/en Millions of yen except per share amounts 2025 2024 Changes [A] [B] [A-B] [(A-B)/B] (%) Net sales 4,104,395 3,865,122 239,273 6.2% Operating income 657,125 607,194 49,931 8.2% Income before income taxes and equity in earnings of affiliated companies 604,838 575,663 29,175 5.1% Net income attributable to Komatsu Ltd. 439,614 393,426 46,188 11.7% Net income attributable to Komatsu Ltd. per share (Yen) Basic ¥473.44 ¥415.96 ¥57.48 Diluted ¥473.42 ¥415.93 ¥57.49 Return on equity 14.2% 14.1% 0.1% Return on total assets 10.6% 11.0% (0.4%) Return on sales 16.0% 15.7% 0.3% Consolidated Business Results for the Fiscal Year Ended March 31, 2025 (U.S. GAAP) 1. Results for the Fiscal Year Ended March 31, 2025 (Amounts are rounded to the nearest million yen) (1) Consolidated Financial Highlights (For the fiscal years ended March 31, 2025 and 2024) Notes: 1) Comprehensive income: 2025: 432,477 millions of yen, down 35.5% from 2024 2024: 670,708 millions of yen, up 50.5% from 2023 2) Equity in earnings of affiliated companies: 2025: 9,521 millions of yen 2024: 8,273 millions of yen 3) Return on equity is calculated by using net income attributable to Komatsu Ltd. and total Komatsu Ltd. shareholders’ equity. 4) Return on total assets is calculated by using income before income taxes and equity in earnings of affiliated companies. 5) Return on sales is calculated by using operating income. - 1 -
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Millions of yen except per share amounts 2025 2024 Total assets 5,773,523 5,636,656 Total equity 3,344,853 3,198,452 Komatsu Ltd. shareholders’ equity 3,173,399 3,033,569 Komatsu Ltd. shareholders’ equity ratio 55.0% 53.8% Komatsu Ltd. shareholders’ equity per share (Yen) ¥3,438.70 ¥3,206.80 Millions of yen 2025 2024 Net cash provided by (used in) operating activities 517,167 434,778 Net cash provided by (used in) investing activities (210,669) (204,419) Net cash provided by (used in) financing activities (321,424) (122,037) Cash and cash equivalents, end of year 385,569 403,178 2025 2024 2026 Projections Cash dividends per share (Yen) Interim 83.00 72.00 95.00 Year-end 107.00 95.00 95.00 Total 190.00 167.00 190.00 Annual dividends (Millions of yen) 175,479 158,047 - Payout ratio (Consolidated basis) (%) 40.1% 40.1% 56.7% Dividends as percentage of equity (Consolidated basis) (%) 5.7% 5.7% - (2) Consolidated Financial Position (As of March 31, 2025 and 2024) (3) Consolidated Cash Flows (For the fiscal years ended March 31, 2025 and 2024) 2. Dividends (For the fiscal years ending March 31, 2026 and ended March 31, 2025 and 2024) - 2 -
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Millions of yen except per share amounts 2026 Changes Increase (Decrease) Net sales 3,745,000 (8.8%) Operating income 478,000 (27.3%) Income before income taxes and equity in earnings of affiliated companies 442,000 (26.9%) Net income attributable to Komatsu Ltd. 309,000 (29.7%) Net income attributable to Komatsu Ltd. Per share - Basic (Yen) ¥334.83 3. Projections for the Fiscal Year Ending March 31, 2026 (From April 1, 2025 to March 31, 2026) Notes: 1) Percentages shown above represent the rates of change compared with the previous fiscal year. 2) Refer to “Management Performance and Financial Conditions” for preconditions of the projections above and other related issues. 3) The Board of Directors decided at its meeting on April 28, 2025 to repurchase its shares of common stock and to cancel its shares of treasury stock. However, the "Net income attributable to Komatsu Ltd. per share" in the projection of consolidated business results does not take into account the impact. Please refer to "Subsequent Events" on page 26 for details on the repurchase and cancellation of treasury stock. 4. Others (1) Changes in important subsidiaries during the year under review: None (2) Changes in significant accounting rules, procedures and presentation and changes in significant accounting policies and estimates 1) Changes resulting from revisions in accounting standards, etc.: None 2) Change in accounting policies except for 1) above: None (3) Number of common shares outstanding 1) The number of common shares issued (including treasury stock) as of March 31 was as follows: 2025: 950,953,120 shares 2024: 973,810,620 shares 2) The number of treasury stock as of March 31 was as follows: 2025: 28,105,521 shares 2024: 27,829,452 shares 3) The weighted average number of common shares outstanding was as follows: 2025: 927,804,388 shares 2024: 944,976,424 shares Note: The number of treasury stock as of March 31, 2025, includes 309,000 shares held in the Board Incentive Plan Trust and the Employee Stock Ownership Plan Trust. These shares are excluded in the calculation of the weighted average number of common shares outstanding. - 3 -
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Millions of yen except per share amounts 2025 2024 Changes Increase (Decrease) [A] [B] [A-B] [(A-B)/B] (%) Net sales 1,143,406 1,161,966 (18,560) (1.6%) Ordinary profit 249,902 233,701 16,201 6.9% Net income 245,865 198,449 47,416 23.9% Net income per share (Yen) Basic ¥264.66 ¥209.73 ¥54.93 Diluted ¥264.66 ¥209.71 ¥54.95 Millions of yen except per share amounts 2025 2024 Total assets 1,546,676 1,454,707 Net assets 950,803 971,992 Equity ratio (%) 61.5% 66.8% Net assets per share (Yen) ¥1,029.79 ¥1,026.91 [Reference] Financial Highlights of Komatsu Ltd. (“Company”) The following financial information is prepared based on the non-consolidated financial results of the Company in accordance with generally accepted accounting principles and practices in Japan. Results for the Fiscal Year Ended March 31, 2025 (1) Non-Consolidated Financial Highlights (For the fiscal years ended March 31, 2025 and 2024) (Amounts are rounded to the nearest million yen) (2) Non-Consolidated Financial Position (As of March 31, 2025 and 2024) Note: Shareholders’ equity: 2025: 950,774 million yen 2024: 971,865 million yen Notes: - This report is not subject to audit by CPA or audit firm. - Explanations concerning the appropriate use of the forecasts for results of operations and other special matters. 1. The aforementioned forecasts, plans and projections for results of operations in this report are determined by top management of the Company to be reasonable, based on the currently available information. Please be advised that actual results may differ significantly from the forecasts, plans or projections in this report, due to a variety of changing factors. Such factors may include economic conditions and changes in demand for products in major markets, fluctuations on the foreign exchange market, and changes in regulations, accounting standards and practices in Japan and abroad. 2. Concerning the background and preconditions of the forecasts for results of operations, refer to “Projections for the Fiscal Year Ending March 31, 2026” on page 10 of the attachment. 3. Amounts, shown in the outline of Financial Highlights of the Company, are rounded down to the nearest million yen. 4. The Company plans to upload the contents (voice) of Financial Results Briefing together with related materials and supplementary information to the Company’s website (https://www.komatsu.jp/en/ir). - 4 -
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Management Performance and Financial Conditions (1) Outline of Operations and Business Results …………..………………………. P.6 (2) Financial Conditions ……………………………………………..……………. P.12 (3) Basic Policy for Redistribution of Profits and Dividends for the Fiscal Year under Review and Next Fiscal Year ………………………………………….... P.12 Basic Stance on Selection of Accounting Standards ……………………... P.13 Consolidated Financial Statements (1) Consolidated Balance Sheets ………………………………………………….. P.14 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ……………………………………………………….. P.16 (3) Consolidated Statements of Equity ……………………………………………. P.18 (4) Consolidated Statements of Cash Flows ………………………………………. P.20 (5) Note to the Going Concern Assumption ………………………………………. P.21 (6) Basis of Consolidated Financial Statements …………………………………... P.21 (7) Notes to Consolidated Financial Statements …………………………………... P.22 1) Business Segment Information ………………………………………… P.22 2) Net Income per Share …………………………………………………… P.25 3) Subsequent Events ……………………………………………………… P.26 4) Others …………………………………………………………………… P.26 Appendix - 5 -
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Management Performance and Financial Conditions (1) Outline of Operations and Business Results Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) embarked on the three-year, mid-term management plan, “DANTOTSU Value – Together, to ‘The Next’ for sustainable growth”. Under this management plan for the target fiscal year ended March 31, 2025, Komatsu upheld three pillars of growth strategies: 1) Accelerate growth by means of innovation; 2) Maximize earnings power; and 3) Enhance corporate resilience. Komatsu aimed for sustainable growth by creating customer value to generate a positive cycle for improving earnings and solving ESG issues, and it has worked on building a business structure that is resilient to changes in demand. For the fiscal year under review (April 1, 2024 - March 31, 2025), the final year of the mid-term management plan, consolidated net sales totaled JPY 4,104.4 billion, an increase of 6.2% from the previous fiscal year. In the construction, mining and utility equipment business, while sales for construction equipment decreased, that for mining equipment increased. There were also factors such as the impact of the Japanese yen's depreciation and the effect of improved selling prices in most regions of the world, thereby sales increased from the previous fiscal year. In the industrial machinery and others business, sales increased from the previous fiscal year, supported primarily by increased sales of large presses for the automobile manufacturing industry and increased maintenance revenues in the excimer laser-related business for the semiconductor industry. With respect to profits for the fiscal year under review, operating income increased by 8.2% from the previous fiscal year, to JPY 657.1 billion. This was supported by an increase in profits in the construction, mining and utility equipment business due to improved selling prices and the Japanese yen’s depreciation, which more than offset the adverse effects of reduced sales volume and cost increase, as well as an increased profits in the retail finance and industrial machinery businesses. The operating income ratio increased by 0.3 percentage points from the previous fiscal year to 16.0%. Income before income taxes and equity in earnings of affiliated companies increased by 5.1% from the previous fiscal year to JPY 604.8 billion. Net income attributable to Komatsu Ltd. increased by 11.7% from the previous fiscal year to JPY 439.6 billion. - 6 -
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Millions of yen 2025 USD1=JPY152.8 EUR1=JPY163.5 AUD1=JPY99.5 2024 USD1=JPY144.3 EUR1=JPY156.0 AUD1=JPY94.7 Changes Increase (Decrease) [A] [B] [(A-B)/B] Net sales 4,104,395 3,865,122 6.2% Construction, Mining and Utility Equipment 3,798,235 3,615,182 5.1% Retail Finance 123,211 103,546 19.0% Industrial Machinery and Others 223,600 195,620 14.3% Elimination (40,651) (49,226) - Segment profit 663,527 605,674 9.6% Construction, Mining and Utility Equipment 598,874 573,987 4.3% Retail Finance 29,422 24,243 21.4% Industrial Machinery and Others 27,391 10,279 166.5% Corporate & elimination 7,840 (2,835) - Operating income 657,125 607,194 8.2% Income before income taxes and equity in earnings of affiliated companies 604,838 575,663 5.1% Net income attributable to Komatsu Ltd. 439,614 393,426 11.7% [Consolidated Financial Highlights] Note: Unless otherwise noted, all sales by segment in this report indicate the amounts before elimination of intersegment transactions. Business results by operation are described below. Construction, Mining and Utility Equipment For the fiscal year under review, sales of the construction, mining and utility equipment business increased by 5.1% from the previous fiscal year, to JPY 3,798.2 billion. Segment profit increased by 4.3% to JPY 598.9 billion. During the fiscal year, Komatsu steadily promoted Smart Construction, a digitalization solution for construction sites. As of March 31, 2025, the cumulative total number of worksites where the solution had been introduced reached 46,364 sites, including sites outside of Japan. With respect to mining equipment, the cumulative total number of Autonomous Haulage System (AHS) mining trucks reached 862 units as of the same date. In Japan, Komatsu has introduced a fully upgraded version of its flagship 20-ton class hydraulic excavator for the civil engineering sector and launched the new generation “PC200i-12”, equipped as standard with 3D Machine Guidance (3DMG) that is linked with Smart Construction, in December, 2024. At bauma 2025 held in Germany in April 2025, Komatsu debuted the European-spec model of the new- generation hydraulic excavator “PC220LCi-12”. It also showcased new-generation wheel loaders “WA485-11” and “WA475-11” with much improved fuel efficiency, and presented five models of electric excavators and various charging and energy storage solutions. Komatsu is jointly exhibiting an underwater construction robot with Asunaro Aoki Construction Co., Ltd. under the theme of “Underwater Construction of the Future” at Expo 2025 Osaka, Kansai, which is being held from April 13, 2025. - 7 -
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Millions of yen 2025 2024 Changes Increase (Decrease) [A] [B] [A-B] [(A-B)/B] Japan 329,628 340,219 (10,591) (3.1%) North America 1,026,364 992,909 33,455 3.4% Latin America 683,589 660,736 22,853 3.5% Americas 1,709,953 1,653,645 56,308 3.4% Europe 310,395 314,708 (4,313) (1.4%) CIS 61,517 66,682 (5,165) (7.7%) Europe & CIS 371,912 381,390 (9,478) (2.5%) China 80,171 70,200 9,971 14.2% Asia* 501,311 439,380 61,931 14.1% Oceania 458,725 369,335 89,390 24.2% Asia* & Oceania 960,036 808,715 151,321 18.7% Middle East 114,640 117,634 (2,994) (2.5%) Africa 221,146 219,575 1,571 0.7% Middle East & Africa 335,786 337,209 (1,423) (0.4%) Total 3,787,486 3,591,378 196,108 5.5% [Sales to Outside Customers of Construction, Mining and Utility Equipment by Region] Note: *Excluding Japan and China Komatsu’s operations by region are described below. Japan For the fiscal year under review, sales decreased by 3.1% from the previous fiscal year, due to a decrease in demand for rental use, despite various efforts such as improved selling prices. Americas In North America, while demand for construction equipment for rental use and energy-related sectors decreased, mainly due to a decline in housing starts, sales increased by 3.4% from the previous fiscal year, mainly supported by increased sales of mining equipment and the Japanese yen’s depreciation. In Latin America, while demand for construction equipment slowed down, sales increased by 3.5% from the previous fiscal year, mainly supported by increased sales of mining equipment, as well as the Japanese yen’s depreciation and improved selling prices. Europe and CIS In Europe, demand for construction equipment decreased in the major markets, such as Germany, the United Kingdom, and France. As a result, sales decreased by 1.4% from the previous fiscal year. In CIS, despite an increase in sales of mining equipment and parts in Central Asia, sales decreased by 7.7% from the previous fiscal year due to the adverse effects of the restrictions in the supply chain, as well as the financial and economic conditions resulting from the situation in Ukraine. - 8 -
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China Despite stagnant economic activities resulting especially from the sluggish real estate market conditions, sales increased by 14.2% from the previous fiscal year, supported by demand increase. Asia and Oceania In Asia, sales increased in Indonesia, the largest market in the region, as demand remained steady. Additionally, due to factors such as the Japanese yen’s depreciation, sales increased by 14.1% from the previous fiscal year. In Oceania, while demand for construction equipment slowed down, sales increased by 24.2% from the previous fiscal year, primarily supported by increased sales of mining equipment as well as the Japanese yen's depreciation. Middle East and Africa In the Middle East, sales decreased by 2.5% from the previous fiscal year, primarily due to a decrease in demand for construction equipment mainly in Saudi Arabia. In Africa, although sales of mining equipment decreased, sales increased by 0.7% from the previous fiscal year, supported by the Japanese yen’s depreciation. Retail Finance For the fiscal year under review, revenues increased by 19.0% from the previous fiscal year, to JPY 123.2 billion, reflecting such factors as a rise in the interest income ratio, the Japanese yen's depreciation and an increase of financing receivables. Segment profit increased by 21.4% to JPY 29.4 billion. Industrial Machinery and Others For the fiscal year under review, sales increased by 14.3% from the previous fiscal year, to JPY 223.6 billion, mainly supported by increased sales of large presses and machine tools for the automobile manufacturing industry and increased maintenance revenues in the excimer laser-related business for the semiconductor industry. Segment profit amounted to JPY 27.4 billion, an increase of 166.5%. - 9 -
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[Projections for the Fiscal Year Ending March 31, 2026] (From April 1, 2025 to March 31, 2026) Komatsu launched its new three-year medium-term management plan, Strategic Growth Plan (FY2025- FY2027) with the title “Driving value with ambition”, in April of this year. Komatsu aims to embrace one of its core values, Ambition, by taking bold measures to pursue group-wide growth through the co-creation of new value with customers and stakeholders. The Strategic Growth Plan redefines the Company vision of becoming a collaborative partner committed to optimizing safe, productive, and clean workplaces. As part of its growth strategy to achieve this vision, Komatsu has identified three pillars, (1) Creating customer value through innovation, (2) Driving growth and profitability, and (3) Transforming the Komatsu business foundation. Backcasting from its vision, Komatsu views the shift toward a decarbonized society and advances in digital technologies as key business opportunities. The Company is also committed to strengthening efforts to enhance resilience against external factors amid growing uncertainty mainly from geopolitical risks and tariffs in global trade policies. The projection of the consolidated financial results for the fiscal year ending March 31, 2026 are as follows. In the construction, mining and utility equipment business, while Komatsu anticipates an increase in sales volume and improvement in selling prices, sales is projected to decrease due to the Japanese yen's appreciation and U.S. tariff policy. With respect to segment profit, although Komatsu will improve selling prices and reduce costs, it anticipates a decrease due to the appreciation of the Japanese yen and cost increase resulting from U.S. tariff policy. In the retail finance business, Komatsu projects a decrease in both sales and profits due to the appreciation of the Japanese yen. In the industrial machinery and others business, Komatsu anticipates that both sales and segment profit will increase from the fiscal year under review, as sales of large presses for automobile and maintenance revenues of the excimer laser-related business for the semiconductor industry are projected to increase. As a result, Komatsu projects a decrease in both consolidated sales and profits for the fiscal year ending March 31, 2026. As preconditions for its projection, Komatsu is assuming the foreign exchange rates will be as follows: USD1=JPY 135.0, EUR1=JPY 150.0, and AUD1=JPY 84.0. - 10 -
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Millions of yen 2026 Projections USD1=JPY135.0 EUR1=JPY150.0 AUD1=JPY84.0 2025 Results USD1=JPY152.8 EUR1=JPY163.5 AUD1=JPY99.5 Changes Increase (Decrease) [A] [B] [(A-B)/B] Net sales 3,745,000 4,104,395 (8.8%) Construction, Mining and Utility Equipment 3,440,000 3,798,235 (9.4%) Retail Finance 107,500 123,211 (12.8%) Industrial Machinery and Others 231,500 223,600 3.5% Elimination (34,000) (40,651) - Segment profit 483,000 663,527 (27.2%) Construction, Mining and Utility Equipment 428,000 598,874 (28.5%) Retail Finance 24,000 29,422 (18.4%) Industrial Machinery and Others 31,000 27,391 13.2% Corporate & elimination 0 7,840 - Operating income 478,000 657,125 (27.3%) Income before income taxes and equity in earnings of affiliated companies 442,000 604,838 (26.9%) Net income attributable to Komatsu Ltd. 309,000 439,614 (29.7%) [Projections] Note:Unless otherwise noted, all sales by segment in this report indicate the amounts before elimination of intersegment transactions. - 11 -
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2025 2024 2023 Komatsu Ltd. shareholders’ equity ratio (%) 55.0 53.8 52.1 Komatsu Ltd. shareholders’ equity ratio at aggregate market value (%) 68.8 74.2 63.6 Years of debt redemption 2.2 2.8 5.1 (2) Financial Conditions As of March 31, 2025, total assets increased by JPY 136.9 billion from the previous fiscal year-end, to JPY 5,773.5 billion, as mainly affected by increased receivables, despite the Japanese yen’s appreciation against the U.S. dollar from the previous fiscal year-end. Interest-bearing debt decreased by JPY 48.8 billion from the previous fiscal year- end, to JPY 1,150.6 billion. Komatsu Ltd. shareholders’ equity increased by JPY 139.8 billion from the previous fiscal year-end, to JPY 3,173.4 billion. As a result, Komatsu Ltd. shareholders’ equity ratio increased by 1.2 percentage points from the previous fiscal year-end, to 55.0%. For the fiscal year under review, net cash provided by operating activities totaled JPY 517.2 billion, mainly due to net income for the period, while trade notes and accounts receivable increased. This is an increase of JPY 82.4 billion from the previous fiscal year. Net cash used in investing activities amounted to JPY 210.7 billion, an increase of JPY 6.3 billion, mainly due to the purchase of fixed assets. Net cash used in financing activities amounted to JPY 321.4 billion (as compared to JPY 122.0 billion used for the previous fiscal year), mainly due to payment of cash dividends and buyback of common stock. After adding the effects of foreign exchange fluctuations to the total amount of each cash flow, as of March 31, 2025, cash and cash equivalents totaled JPY 385.6 billion, a decrease of JPY 17.6 billion from the previous fiscal year-end. [Trends of Financial Conditions Indicators] (Fiscal years ended March 31, 2025, 2024 and 2023) Notes: 1) Komatsu Ltd. shareholders’ equity ratio: Komatsu Ltd. shareholders’ equity/Total assets 2) Komatsu Ltd. shareholders’ equity ratio at aggregate market value: Aggregate market value of outstanding shares of common stock/Total assets 3) Years of debt redemption: Interest-bearing debt/Net cash provided by operating activities (3) Basic Policy for Redistribution of Profits and Dividends for the Fiscal Year under Review and Next Fiscal Year Komatsu is building a sound financial position and enhancing its competitiveness in order to increase its sustainable corporate value. Concerning cash dividends, Komatsu has the policy of continuing stable payment of dividends after comprehensively considering consolidated business results and reviewing future investment plans, cash flows and the like. Specifically, Komatsu has the policy of maintaining a consolidated payout ratio of 40% or higher. Concerning cash dividends for the fiscal year under review, after considering consolidated business results for the fiscal year under review and future business prospects under its dividend policy, the Company is planning to increase the year-end common stock dividend per share by JPY 23 from the earlier projection of JPY 84 per share. As a result, the year-end cash dividend for the fiscal year under review should amount to JPY 107 per share. Annual cash dividends should total JPY 190 per share, including the interim cash dividend which has already been paid, and which shows an increase of JPY 23 per share from the previous fiscal year, ended March 31, 2024. Accordingly, the consolidated payout ratio will translate into 40.1%. This dividend amount will be proposed to the 156th ordinary general meeting of shareholders (scheduled for June 19, 2025). Regarding the fiscal year, ending March 31, 2026, while net income is projected to decrease, the Company - 12 -
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Cautionary Statement The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured. Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company’s principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company’s objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company’s research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices. plans to pay JPY 190 per share for annual cash dividends, keeping the same amount from the fiscal year under review. The consolidated payout ratio should be translated into 56.7%. Basic Stance on Selection of Accounting Standards The Company plans to voluntarily adopt International Financial Reporting Standards (IFRS) from the fiscal year ending March 31, 2029, in place of U.S. GAAP, for the purpose of improving international comparability of its financial information in the capital markets. - 13 -
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Millions of yen As of March 31, 2025 As of March 31, 2024 Ratio (%) Ratio (%) Current assets Cash and cash equivalents ¥ 385,569 ¥ 403,178 Trade notes and accounts receivable, net 1,274,209 1,263,542 Inventories 1,406,658 1,438,695 Other current assets 231,867 208,773 Total current assets 3,298,303 57.1 3,314,188 58.8 Long-term trade receivables, net 808,324 14.0 688,260 12.2 Investments Investments in and advances to affiliated companies 81,167 67,325 Investment securities 10,636 10,267 Other 3,623 3,975 Total investments 95,426 1.7 81,567 1.5 Property, plant and equipment - less accumulated depreciation 914,283 15.8 908,055 16.1 Operating lease right-of-use assets 67,684 1.2 69,236 1.2 Goodwill 245,833 4.3 248,393 4.4 Other intangible assets - less accumulated amortization 169,953 2.9 180,403 3.2 Deferred income taxes and other assets 173,717 3.0 146,554 2.6 Total assets ¥ 5,773,523 100.0 ¥ 5,636,656 100.0 Consolidated Financial Statements (1) Consolidated Balance Sheets Assets - 14 -
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Millions of yen As of March 31, 2025 As of March 31, 2024 Ratio (%) Ratio (%) Current liabilities Short-term debt ¥ 376,326 ¥ 440,619 Current maturities of long-term debt 278,082 140,359 Trade notes, bills and accounts payable 334,929 320,312 Income taxes payable 87,525 69,638 Current operating lease liabilities 19,392 19,603 Other current liabilities 553,106 535,668 Total current liabilities 1,649,360 28.6 1,526,199 27.1 Long-term liabilities Long-term debt 496,189 618,392 Liability for pension and retirement benefits 68,900 87,933 Long-term operating lease liabilities 50,713 51,441 Deferred income taxes and other liabilities 163,508 154,239 Total long-term liabilities 779,310 13.5 912,005 16.2 Total liabilities 2,428,670 42.1 2,438,204 43.3 Komatsu Ltd. shareholders’ equity Common stock 70,336 70,336 Capital surplus 136,525 136,500 Retained earnings: Appropriated for legal reserve 49,421 48,979 Unappropriated 2,572,425 2,367,020 Accumulated other comprehensive income (loss) 427,354 459,865 Treasury stock, at cost (82,662) (49,131) Total Komatsu Ltd. shareholders’ equity 3,173,399 55.0 3,033,569 53.8 Noncontrolling interests 171,454 2.9 164,883 2.9 Total equity 3,344,853 57.9 3,198,452 56.7 Total liabilities and equity ¥ 5,773,523 100.0 ¥ 5,636,656 100.0 Liabilities and Equity - 15 -
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Millions of yen 2025 2024 Ratio (%) Ratio (%) Net sales ¥ 4,104,395 100.0 ¥ 3,865,122 100.0 Cost of sales 2,782,012 67.8 2,654,914 68.7 Selling, general and administrative expenses 658,856 16.1 604,534 15.6 Impairment loss on long-lived assets 2,031 0.0 6,108 0.2 Other operating income (expenses), net (4,371) (0.1) 7,628 0.2 Operating income 657,125 16.0 607,194 15.7 Other income (expenses), net Interest and dividend income 27,325 0.7 21,146 0.5 Interest expense (57,594) (1.4) (54,506) (1.4) Other, net (22,018) (0.5) 1,829 0.0 Total (52,287) (1.3) (31,531) (0.8) Income before income taxes and equity in earnings of affiliated companies 604,838 14.7 575,663 14.9 Income taxes 145,627 3.5 167,580 4.3 Income before equity in earnings of affiliated companies 459,211 11.2 408,083 10.6 Equity in earnings of affiliated companies 9,521 0.2 8,273 0.2 Net income 468,732 11.4 416,356 10.8 Less: Net income attributable to noncontrolling interests 29,118 0.7 22,930 0.6 Net income attributable to Komatsu Ltd. ¥ 439,614 10.7 ¥ 393,426 10.2 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (For the fiscal years ended March 31, 2025 and 2024) Consolidated Statements of Income - 16 -
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Millions of yen 2025 2024 Net income ¥ 468,732 ¥ 416,356 Other comprehensive income (loss), for the period, net of tax Foreign currency translation adjustments (44,858) 251,225 Pension liability adjustments 7,100 3,979 Net unrealized holding gains (losses) on derivative instruments 1,503 (852) Total (36,255) 254,352 Comprehensive income 432,477 670,708 Less: Comprehensive income attributable to noncontrolling interests 25,374 37,368 Comprehensive income attributable to Komatsu Ltd. ¥ 407,103 ¥ 633,340 Consolidated Statements of Comprehensive Income - 17 -
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Millions of yen Common stock Capital surplus Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Komatsu Ltd. shareholders’ equity Noncontrolling interests Total equityAppropriated for legal reserve Unappropriated Balance at March 31, 2024 ¥ 70,336 ¥ 136,500 ¥ 48,979 ¥ 2,367,020 ¥ 459,865 ¥ (49,131) ¥ 3,033,569 ¥ 164,883 ¥ 3,198,452 Cash dividends (166,565) (166,565) (19,474) (186,039) Transfer to retained earnings appropriated for legal reserve 442 (442) - - Other changes (676) (676) 671 (5) Net income 439,614 439,614 29,118 468,732 Other comprehensive income (loss), for the period, net of tax (32,511) (32,511) (3,744) (36,255) Exercise of stock acquisition rights (97) (97) (97) Purchase of treasury stock (101,279) (101,279) (101,279) Sales of treasury stock (12) 112 100 100 Cancellation of treasury stock (434) (67,202) 67,636 - - Share-based payment* 1,244 1,244 1,244 Balance at March 31, 2025 ¥ 70,336 ¥ 136,525 ¥ 49,421 ¥ 2,572,425 ¥ 427,354 ¥ (82,662) ¥ 3,173,399 ¥ 171,454 ¥ 3,344,853 (3) Consolidated Statements of Equity (For the fiscal year ended March 31, 2025) Note: * Refer to “Net Income per Share” on page 25 for more details. - 18 -
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Millions of yen Common stock Capital surplus Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Komatsu Ltd. shareholders’ equity Noncontrolling interests Total equityAppropriated for legal reserve Unappropriated Balance at March 31, 2023 ¥ 69,660 ¥ 135,886 ¥ 48,508 ¥ 2,114,789 ¥ 219,951 ¥ (49,153) ¥ 2,539,641 ¥ 138,314 ¥ 2,677,955 Cumulative effects of Accounting Standards Update—adoption of ASU 2016-13, net of tax (1,634) (1,634) (126) (1,760) Cash dividends (139,090) (139,090) (10,653) (149,743) Transfer to retained earnings appropriated for legal reserve 471 (471) - - Other changes 14 14 (20) (6) Net income 393,426 393,426 22,930 416,356 Other comprehensive income (loss), for the period, net of tax 239,914 239,914 14,438 254,352 Exercise of stock acquisition rights (85) (85) (85) Purchase of treasury stock (50) (50) (50) Sales of treasury stock 13 72 85 85 Share-based payment* 676 672 1,348 1,348 Balance at March 31, 2024 ¥ 70,336 ¥ 136,500 ¥ 48,979 ¥ 2,367,020 ¥ 459,865 ¥ (49,131) ¥ 3,033,569 ¥ 164,883 ¥ 3,198,452 (For the fiscal year ended March 31, 2024) Note: * Refer to “Net Income per Share” on page 25 for more details. - 19 -
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Millions of yen 2025 2024 Operating activities Net income ¥ 468,732 ¥ 416,356 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 163,004 156,835 Deferred income taxes (29,629) (3,264) Impairment loss and net loss on valuation of investment securities, net 433 1,241 Net gain on sale of fixed assets (1,228) (4,406) Loss on disposal of fixed assets 5,554 4,832 Impairment loss on long-lived assets 2,031 6,108 Pension and retirement benefits, net (12,113) 3,167 Changes in assets and liabilities: Increase in trade receivables (157,811) (94,059) Decrease (increase) in inventories 21,076 (66,792) Increase (decrease) in trade payables 15,147 (59,156) Increase in income taxes payable 18,161 3,521 Other, net 23,810 70,395 Net cash provided by operating activities 517,167 434,778 Investing activities Capital expenditures (205,855) (202,947) Proceeds from sale of fixed assets 13,829 24,104 Purchases of investment securities (918) (415) Proceeds from sale of subsidiaries and businesses, net of cash disposed - 14,029 Acquisition of subsidiaries and equity investees, net of cash acquired (25,008) (39,206) Other, net 7,283 16 Net cash used in investing activities (210,669) (204,419) Financing activities Proceeds from debt issued (Original maturities greater than three months) 557,221 402,193 Payment on debt (Original maturities greater than three months) (522,710) (438,276) Short-term debt, net (Original maturities three months or less) (67,495) 63,911 Sale (purchase) of treasury stock, net (101,249) (25) Dividends paid (166,565) (139,090) Other, net (20,626) (10,750) Net cash used in financing activities (321,424) (122,037) Effect of exchange rate change on cash and cash equivalents (2,683) 4,881 Net increase (decrease) in cash and cash equivalents (17,609) 113,203 Cash and cash equivalents, beginning of year 403,178 289,975 Cash and cash equivalents, end of year ¥ 385,569 ¥ 403,178 (4) Consolidated Statements of Cash Flows (For the fiscal years ended March 31, 2025 and 2024) - 20 -
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(5) Note to the Going Concern Assumption None (6) Basis of Consolidated Financial Statements 1) Changes in important subsidiaries during the Year under review: None 2) The number of consolidated subsidiaries and affiliated companies accounted for by the equity method Number of consolidated subsidiaries: 217 companies Number of affiliated companies accounted for by the equity method: 41 companies 3) Changes resulting from revisions in accounting standards, etc.: None 4) Changes in other accounting policy except for 3) above: None - 21 -
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Millions of yen Construction, Mining and Utility Equipment Retail Finance Industrial Machinery and Others Subtotal Corporate & elimination Total Net sales: Customers 3,787,486 96,220 220,689 4,104,395 - 4,104,395 Intersegment 10,749 26,991 2,911 40,651 (40,651) - Total 3,798,235 123,211 223,600 4,145,046 (40,651) 4,104,395 Segment expenses: Cost of sales 2,590,371 81,542 157,601 2,829,514 (47,502) 2,782,012 Selling, general and administrative expenses Research and development expenses 101,107 - 9,365 110,472 - 110,472 Others 507,883 12,247 29,243 549,373 (989) 548,384 Total 3,199,361 93,789 196,209 3,489,359 (48,491) 3,440,868 Segment profit 598,874 29,422 27,391 655,687 7,840 663,527 Segment profit ratio (%) 15.8% 23.9% 12.3% - - 16.2% Assets 4,118,647 1,379,587 273,893 5,772,127 1,396 5,773,523 Depreciation and Amortization 126,475 27,064 5,765 159,304 - 159,304 Capital investment 144,334 32,903 6,929 184,166 - 184,166 (7) Notes to Consolidated Financial Statements 1) Business Segment Information < Information by Operating Segment> (For the fiscal year ended March 31, 2025) - 22 -
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Millions of yen Construction, Mining and Utility Equipment Retail Finance Industrial Machinery and Others Subtotal Corporate & elimination Total Net sales: Customers 3,591,378 80,910 192,834 3,865,122 - 3,865,122 Intersegment 23,804 22,636 2,786 49,226 (49,226) - Total 3,615,182 103,546 195,620 3,914,348 (49,226) 3,865,122 Segment expenses: Cost of sales 2,484,512 70,775 148,675 2,703,962 (49,048) 2,654,914 Selling, general and administrative expenses Research and development expenses 94,145 - 9,296 103,441 - 103,441 Others 462,538 8,528 27,370 498,436 2,657 501,093 Total 3,041,195 79,303 185,341 3,305,839 (46,391) 3,259,448 Segment profit 573,987 24,243 10,279 608,509 (2,835) 605,674 Segment profit ratio (%) 15.9% 23.4% 5.3% - - 15.7% Assets 3,995,612 1,330,990 249,837 5,576,439 60,217 5,636,656 Depreciation and Amortization 121,829 24,431 6,125 152,385 1,343 153,728 Capital investment 127,964 42,412 9,623 179,999 - 179,999 (For the fiscal year ended March 31, 2024) Notes: 1) Business categories and principal products & services included in each operating segment are as follows: a) Construction, Mining and Utility Equipment Excavating equipment, loading equipment, grading & roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, underground mining equipment, recycling equipment, industrial vehicles, other equipment, engines & components, casting products, logistics, and solution business b) Retail Finance Financing c) Industrial Machinery and Others Metal forging & stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment, and optical machinery 2) Transfers between segments are made at estimated arm’s-length prices. - 23 -
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Millions of yen Japan Americas Europe & CIS China Asia* & Oceania Middle East & Africa Total 2025 436,605 1,811,209 394,622 106,615 1,015,843 339,501 4,104,395 2024 436,649 1,737,985 405,178 94,252 851,711 339,347 3,865,122 < Geographic Information> Net sales determined by customer location are as follows: (For the fiscal years ended March 31, 2025 and 2024) Note: * Excluding Japan and China - 24 -
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Millions of yen 2025 2024 Net income attributable to Komatsu Ltd. 439,614 393,426 Net income attributable to participating securities (restricted stocks) 358 351 Net income attributable to common shareholders 439,256 393,075 Number of shares 2025 2024 Weighted average common shares outstanding, less treasury stock 928,561,033 945,819,656 Dilutive effect of: Stock options 28,094 74,260 Weighted average number of participating securities (restricted stocks) 756,645 843,232 Weighted average diluted common shares outstanding 927,832,482 945,050,684 Yen 2025 2024 Net income attributable to Komatsu Ltd. per share: Basic 473.44 415.96 Diluted 473.42 415.93 2) Net Income per Share The Company had the restricted stock compensation system (hereinafter, the “System”) for directors (other than outside directors) and employees of the Company and directors and employees of major subsidiaries. Among the new shares issued under the System, those transfer restrictions which have not been cancelled are distinguished as participating securities from common shares. Each common share and restricted stock has the same rights to net income attributable to Komatsu Ltd. A reconciliation of the numerators and denominators of the basic and diluted net income attributable to Komatsu Ltd. per share computations is as follows: (For the fiscal years ended March 31, 2025 and 2024) - 25 -
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3) Subsequent Events [Share buyback and cancellation of treasury stock] The Company resolved at a meeting of the board of directors held on April 28, 2025 to repurchase its shares of common stock pursuant to Article 156 of the Companies Act of Japan (the “Companies Act”) as applied pursuant to Article 165, Paragraph 3 of the Companies Act. It has also resolved to cancel its shares of treasury stock pursuant to Article 178 of the Companies Act. a) Purpose of the share buyback and cancellation of treasury stock The Company has decided to repurchase its shares of common stock from the viewpoint of increasing its corporate value and shareholder returns taking into consideration the current capital efficiency, financial soundness, and other factors. In addition, Komatsu has decided to cancel its shares of treasury stock to be repurchased after comprehensively considering the specific use of the shares and the reasons for holding them. b) Details of share buyback i) Class of shares to be repurchased Common stock ii) Total number of shares to be repurchased Up to 40 million shares (Represents up to 4.3% of the total number of outstanding shares (excluding treasury stock)) iii) Total purchase price for buyback of shares Up to 100 billion yen iv) Period of buyback April 30, 2025 to November 28, 2025 v) Method of buyback Purchase at the Tokyo Stock Exchange c) Details of cancellation of treasury stock i) Class of shares to be canceled Common stock ii) Number of shares to be canceled All shares repurchased iii) Planned date of cancellation December 29, 2025 4) Others Other notes are omitted in this release of Consolidated Business Results for the Fiscal Year Ended March 31, 2025 (U.S. GAAP), because the need for their disclosure is considered insignificant. (end) - 26 -