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1 Business Results for Three and Nine Months ended December 31, 2013
Earnings Presentation for Three and Nine Months ended December 31, 2013
January 29, 2014
Komatsu Ltd. Participants
Tetsuji Ohashi President and CEO Mikio Fujitsuka Director and Senior Executive Officer, CFO Akira Sugiki Senior Executive Officer General Manager, Business Coordination Department
(Speaker)
2 Business Results for Three and Nine Months ended December 31, 2013
1. Results for Three Months ended December 31, 2013
3 Business Results for Three and Nine Months ended December 31, 2013
Oct.-Dec., 2012 (3Q FY12)
USD1 = JPY80.1 EUR1 = JPY103.5 RMB1 = JPY12.8
Oct.-Dec., 2013 (3Q FY13)
USD1 = JPY99.7 EUR1 = JPY135.1 RMB1 = JPY16.3
Changes
Increase (decrease) Change (%)
Net sales 419.7 464.3 44.6 +10.6% - Construction, mining & utility equipment - Industrial machinery & others
[367.9] 368.4 [51.7] 53.4
[420.0] 420.7 [44.3] 45.3
[52.0] 52.2 [(7.4)] (8.1)
[+14.2%] +14.2% [-14.4%] -15.2%
- Elimination (2.1) (1.6) 0.5 - Segment profit 39.7 54.6 14.8 +37.3% - Construction, mining & utility equipment - Industrial machinery & others
38.8 0.5
58.3 (3.6)
19.5 (4.2)
+50.3% -
- Corporate & elimination 0.4 (0.0) (0.4) - Other operating income (expenses) (0.5) 2.0 2.6 -
Operating income 39.2 56.6 17.4 +44.5% Other income (expenses) 0.9 0.9 0.0 - Income before income taxes 40.2 57.6 17.4 +43.4% Net income *2 24.9 36.5 11.5 +46.2%
10.5% 1.0%
9.5%
% : Profit ratio
9.3%
Sales and Profits for Three months (October-December, 2013)
*1 Including the loss of write-off of Komatsu NTC’s wire saw inventories in the amount of JPY 7.6 billion. *2 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”
- Third quarter sales advanced by 10.6% from the corresponding period a year ago, to JPY464.3 billion, supported especially by increased sales in Japan where demand remained strong for construction equipment, and in China where demand upturned for recovery, which compensated for the effects of sluggish demand for mining equipment. - Third quarter operating income expanded by 44.5% from the corresponding period a year ago, to JPY56.6 billion, and net income by 46.2% to JPY36.5 billion.
*1 13.9% (8.1)%
11.8%
12.2%
[ ]: Sales after elimination of inter-segment transactions Billions of yen
4 Business Results for Three and Nine Months ended December 31, 2013
Construction, Mining & Utility Equipment:Breakdown of Sales (to Outside Customers) for Three Months(Oct.-Dec.,2013)
Breakdown of sales by region
Oct.-Dec., 2012 (3Q FY12)
Oct.-Dec., 2013 (3Q FY13)
Changes Increase (decrease) Change (%)
Traditional Markets
Japan 76.0 95.6 19.5 +25.7% North America 56.0 65.2 9.1 +16.3% Europe 22.8 28.0 5.2 +22.9%
Strategic Markets
Latin America 62.9 62.6 (0.3) -0.5% CIS 24.4 16.1 (8.3) -34.0% China 20.4 39.5 19.1 +93.3% Asia 34.7 43.3 8.6 +24.8% Oceania 43.5 32.1 (11.4) -26.3% Middle East 4.4 9.0 4.6 +104.2% Africa 22.2 28.1 5.9 +26.5% Total 367.9 420.0 52.0 +14.2%
Mining equipment in total above 139.1 107.2 (31.9) -22.9%
While demand for mining equipment remained sluggish, good sales further expanded in Japan, and sales also increased in China where demand was recovering and in the Middle East and Africa where demand was growing. Third quarter sales of construction, mining and utility equipment increased by 14.2% from the corresponding period a year ago, to JPY420.0 billion.
Japan 21%
North America
15% Europe
6% Latin
America 17%
CIS 7%
China 6%
Asia 9%
Oceania 12%
Middle East 1% Africa
6%
Oct.-Dec., 2012
Traditional Markets
42% Strategic Markets
58%
Japan
23%
North
America
15% Europe
7% Latin
America
15%
CIS
4%
China
9%
Asia
10%
Oceania
8%
Middle
East
2% Africa
7%
Traditional Markets
45%
Strategic Markets
55% Oct.-Dec.,
2013
Billions of yen
5 Business Results for Three and Nine Months ended December 31, 2013
2. Results for the Nine Months ended December 31, 2013
6 Business Results for Three and Nine Months ended December 31, 2013
Apr.-Dec., 2012
USD1 = JPY79.8 EUR1 = JPY102.1 RMB1 = JPY12.7
Apr.-Dec., 2013
USD1 = JPY98.5 EUR1 = JPY130.5 RMB1 = JPY16.1
Changes
Increase (decrease) Change (%)
Net sales 1,350.5 1,389.5 38.9 +2.9%
- Construction, mining & utility equipment - Industrial machinery & others
[1,205.6] 1,207.6 [144.9] 150.6
[1,248.8] 1,250.7 [140.6] 144.9
[43.2] 43.1 [(4.2)] (5.7)
[+3.6%] +3.6% [-2.9%] -3.8%
- Elimination (7.6) (6.1) 1.4 - Segment profit 151.0 163.7 12.6 +8.4%
- Construction, mining & utility equipment - Industrial machinery & others
148.3 3.8
164.1 1.1
15.7 (2.7)
+10.6% -70.7%
- Corporate & elimination (1.1) (1.5) (0.4) - Other operating income (expenses) (0.5) 1.9 2.5 -
Operating income 150.4 165.6 15.1 +10.1% Other income (expenses) (4.9) 4.4 9.4 - Income before income taxes 145.5 170.1 24.5 +16.9% Net income 91.0 115.3 24.2 +26.6%
12.3% 2.5%
11.2%
11.1%
13.1% 0.8%
11.8%
11.9%
For the nine-month period, consolidated sales increased by 2.9% from the corresponding period a year ago, to JPY1,389.5 billion, mainly supported by increased sales of construction equipment in Japan and China, which compensated for the effects of sluggish demand for mining equipment. Similarly, operating income advanced by 10.1% to JPY165.6 billion, and net income by 26.6% to JPY115.3 billion.
*1
*2
Sales and Profits for Nine Months (April-December, 2013)
% : Profit ratio [ ]: Sales after elimination of inter-segment transactions Billions of yen
*1 Including the loss of write-off of Komatsu NTC’s wire saw inventories in the amount of JPY 7.6 billion. *2 Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”
7 Business Results for Three and Nine Months ended December 31, 2013
207.1 208.5 245.7
172.2 181.9 201.5 89.9 73.8
85.3 149.4 195.7 183.7 57.2 65.6 51.9 149.8 82.9 112.3
235.4 165.6 135.3
110.7 142.7 119.3
28.3 18.7 36.2
64.7 69.7 77.4
0
400
800
1,200
1,600
Apr.-Dec., 2011 Apr.-Dec., 2012 Apr.-Dec., 2013
AfricaMiddle EastOceaniaAsiaChinaCISLatin AmericaEuropeNorth AmericaJapan
1,248.8 1,265.1
While the percentage of sales in Oceania, Asia and Latin America declined in total sales against the backdrop of declined demand for mining equipment, that of Traditional Markets increased, driven by expanded sales in Japan with strong demand.
Japan North America Europe Latin
America CIS China Asia Oceania Middle East Africa Total
Apr.-Dec.,2012 +0.7% +5.7% -17.9% +31.0% +14.8% -44.6% -29.6% +28.9% -33.9% +7.8% -4.7% Apr.-Dec.,2013 +17.8% +10.8% +15.6% -6.1% -20.9% +35.3% -18.3% -16.4% +93.7% +10.9% +3.6%
+3.6%
1,205.6
- 4.7 %
Japan
17%
North
America
15%
Europe
6% Latin
America
16%
CIS
5%
China
7%
Asia
14%
Oceania
12%
Middle
East
2% Africa
6%
Strategic Markets 62%
Traditional Markets 38%
Japan 20%
North America
16% Europe
7% Latin
America 15%
CIS 4%
China 9%
Asia 11%
Oceania 9%
Middle East 3% Africa
6%
Apr.-Dec., 2013
Strategic Markets 57%
Traditional Markets 43%
Year-on-year growth rate of sales by region
USD1 = JPY78.7 EUR1 = JPY110.6 RMB1 = JPY12.3
USD1 = JPY79.8 EUR1 = JPY102.1 RMB1 = JPY12.7
USD1 = JPY98.5 EUR1 = JPY130.5 RMB1 = JPY16.1
Sales by region (To outside customers) Billions of yen
: Year-on-year growth rate
Breakdown (%)
Construction, Mining & Utility Equipment: Sales (to Outside Customers) by Region (Apr. – Dec., 2013)
Apr.-Dec., 2012
8 Business Results for Three and Nine Months ended December 31, 2013
Construction, Mining & Utility Equipment: Causes of Difference in Segment Profit (Apr.-Dec., 2013)
Total : +15.7 bn yen
148.3 164.1
0
50
100
150
200
Apr.-Dec.,2012
Apr.-Dec.,2013
Positive factor Negative factor
13.1% 12.3%
USD1= JPY98.5 EUR1= JPY130.5 RMB1= JPY16.1
USD1= JPY79.8 EUR1= JPY102.1 RMB1= JPY12.7
+15.7 bn
Segment profit ratio
Foreign exchange
rates +47.6
Fixed costs +6.0
Selling prices +13.7
Volume difference &
others (51.6)
Changes in segment profit (Apr.-Dec., 2012 vs. Apr.-Dec., 2013)
<Positive factors> - Selling prices :+13.7 bn yen - Fixed costs : +6.0 bn yen - Foreign exchange rates: +47.6 bn yen <Negative factor> - Volume difference & others : (51.6) bn yen
- A negative difference of JPY51.6 billion in volume and others caused by the declines in demand and sales was compensated for by the positive differences in selling prices, fixed costs and foreign exchange rates, resulting in a net positive difference of JPY15.7 billion in segment profit for the nine-month period. - Segment profit ratio increased by 0.8 percentage points to 13.1% for the nine-month period.
Segment profit
: Segment profit ratio
Sales before elimination of inter-segment transactions
178.9
148.3 164.1
0
5
10
15
20
0
50
100
150
200
Apr.-Dec.,2011
Apr.-Dec.,2012
Apr.-Dec.,2013
13.1%
%
14.1%
12.3%
Billions of yen
Billions of yen
9 Business Results for Three and Nine Months ended December 31, 2013
0
20
40
60
80
FY11
/3 6 9 12
FY12
/3 6 9 12
FY13
/3 6 9 12
Backlog orders
Orders received (quarterly)
189.4
150.6 144.9
0
50
100
150
200
Apr.-Dec.,2011
Apr.-Dec.,2012
Apr.-Dec.,2013
16.7
3.8
1.1
0
5
10
15
0
6
12
18
Apr.-Dec.,2011
Apr.-Dec.,2012
Apr.-Dec.,2013
2.5%
%
0.8%
8.8%
Apr.-Dec.,2012 Apr.-Dec.,2013 Increase (decrease)
Komatsu Industries Corp., etc. [total of press and sheet-metal machines]
33.4 37.6 4.2
Komatsu NTC Ltd. [represented by wire saws]
56.5 [6.1]
47.3 [2.8]
(9.2) [(3.2)]
Others [represented by Gigaphoton ] [represented by Komatsu House]
60.6 [15.5] [10.6]
59.9 [17.2] [10.7]
(0.7) [1.7] [0.1]
Total 150.6 144.9 (5.7)
- While sales of machine tools, as well as sheet-metal and press machines remained firm, especially to the automobile manufacturing industry, nine-month sales slightly declined from the corresponding period a year ago. - Komatsu realized write-off of Komatsu NTC’s inventories of wire saw parts in the amount of JPY7.6 billion for the third quarter period. - Backlog orders remained stable.
0
20
40
60
80
FY11
/3 6 9 12
FY12
/3 6 9 12
FY13
/3 6 9 12
Backlog orders
Orders received (quarterly)
Industrial Machinery & Others: Sales, and Segment Profit and Backlog Orders
Sales Segment profit
Segment profit ratio
Backlog orders Komatsu Industries Corp.
Komatsu NTC Ltd. (excl. wire saws)
Billions of yen
Billions of yen
Billions of yen
Billions of yen
Breakdown of sales Billions of yen
10 Business Results for Three and Nine Months ended December 31, 2013
Japan Japan Japan Europe Europe Europe
China China China
Oceania Oceania Oceania
Others Others Others
North America
North America
North America
0
100
200
300
400
500
600
700
Retail Finance Business
37.6
49.8
9.2 10.7
0
10
20
30
40
50
60
Apr.-Dec., 2012 Apr.-Dec., 2013
Revenues
Pretax income
2. Revenues 1. Assets Billions of yen
- Total assets at December 31, 2013 increased from the previous fiscal year-end, affected by the Japanese yen’s depreciation and increased new transactions, mainly in North America. - Both nine-month revenues and pretax income increased from the corresponding period a year ago.
455.2
Consolidated retail finance subsidiaries
579.9
Dec. 31, 2012 USD1= JPY86.6 EUR1= JPY114.7 RMB1= JPY13.9
524.9
Mar 31, 2013 USD1= JPY94.1 EUR1= JPY120.7 RMB1= JPY15.2
Dec. 31, 2013 USD1= JPY105.4 EUR1= JPY145.1 RMB1= JPY17.4
Billions of yen
USD1= JPY79.8 EUR1= JPY102.1 RMB1= JPY12.7
USD1= JPY98.5 EUR1=JPY130.5 RMB1= JPY16.1
11 Business Results for Three and Nine Months ended December 31, 2013
Consolidated Balance Sheets - Total assets at December 31, 2013 increased by JPY203.4 billion from the previous fiscal year-end, mainly due to the Japanese yen’s depreciation. - Shareholders’ equity ratio improved to 49.8%, and net debt-to-equity ratio to 0.44, from the previous fiscal year-end.
Mar.31,2013 USD1 = JPY94.1 EUR1 = JPY120.7 RMB1 = JPY15.2
Dec.31,2013 USD1 = JPY105.4 EUR1 = JPY145.1 RMB1 = JPY17.4
Increase (decrease)
Cash & deposits (incl. time deposits) [a] Accounts receivable (incl. long-term trade receivables) <Excl. those of consolidated retail finance subsidiaries> Inventories Tangible fixed assets Other assets
93.8 842.7 <414.3> 633.6 585.2 362.4
111.0 843.2 <393.2> 728.2 645.9 392.8
17.1 0.5 <(21.0)> 94.5 60.7 30.4
Total assets 2,517.8 2,721.3 203.4 Accounts payable 226.2 234.8 8.6 Interest-bearing debt [b] 679.7 704.6 24.8 <Excl. those of consolidated retail finance subsidiaries> <298.1> <291.3> <(6.7)> Other liabilities 359.1 364.1 5.0 Total liabilities 1,265.1 1,303.7 38.5 [Shareholders’ equity ratio] Komatsu Ltd. shareholders’ equity
(47.4%) 1,193.1
(49.8%) 1,354.5
(+2.4 points) 161.3
Non controlling interests 59.5 63.0 3.5 Liabilities & Equity 2,517.8 2,721.3 203.4
Interest-bearing debt, net [b-a] 585.9 593.6 7.7 Net D/E ratio (excl. cash and interest-bearing debt of consolidated retail finance subsidiaries)
0.44
0.16
0.49
0.20
Billions of yen : Net debt-to-equity ratio
12 Business Results for Three and Nine Months ended December 31, 2013
3. Current Demand for Construction and Mining Equipment by Region and Business
Segment and Our Business Outlook
13 Business Results for Three and Nine Months ended December 31, 2013
+22%
+13%
+16%
+13%
+15%
-20% -20%
+45%
+5%
-7%
-60%
-40%
-20%
0%
20%
40%
60%
0
100,000
200,000
300,000
400,000
500,000
600,000
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
JapanNorth AmericaEuropeChinaOthersY-O-Y growth rate
Construction, Mining & Utility Equipment: Demand and Outlook for 7 Major Products
100
80
Units
64
92 97
- In the third quarter, while demand for mining equipment remained sluggish, overall demand for construction and mining equipment increased by 6% from the corresponding period a year ago, mainly supported by increased demand in Japan where demand remained strong and in China where market conditions upturned for recovery. - With respect to full-year demand in FY2013, we are keeping our projection of October 2013, i.e., a decline of 2% to 7% from FY2012. - Concerning full-year demand in FY2014, we anticipate that it will be comparable to FY2013.
91
84 to 88
-2% to
-7%
Units
Quarterly demand for 7 major products Annual demand for 7 major products Growth
rate Growth
rate
Demand: Estimated by Komatsu
Index : FY2007=100
-32%
-48% -47%
-42%
-6%
+53%
+63%
+46% +40%
+36%
+11%
+14% +7%
-7%
-1% -1%
-9%
-14%
-3%
+1%
+6%
-60%
-30%
0%
30%
60%
90%
0
30,000
60,000
90,000
120,000
150,000
3Q F
Y08 4Q
1Q F
Y09 2Q 3Q 4Q
1Q F
Y10 2Q 3Q 4Q
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q
Japan North AmericaEurope ChinaOthers Y-O-Y growth rate
14 Business Results for Three and Nine Months ended December 31, 2013
04,0008,00012,00016,000
-100%
-50%
0%
50%
100%
1Q F
Y07 2Q 3Q 4Q
1Q F
Y08 2Q 3Q 4Q
1Q F
Y09 2Q 3Q 4Q
1Q F
Y10 2Q 3Q 4Q
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q 4Q
Demand (units) Y-O-Y growth rate
0
4,000
8,000
12,000
1Q F
Y09 2Q 3Q 4Q
1Q F
Y10 2Q 3Q 4Q
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q
Komatsu Group rental
Nationwide/local independent rental
Ownership
0
10,000
20,000
30,000
-60%
-40%
-20%
0%
20%
40%
60%
1Q F
Y05 2Q 3Q 4Q
1Q F
Y06 2Q 3Q 4Q
1Q F
Y07 2Q 3Q 4Q
1Q F
Y08 2Q 3Q 4Q
1Q F
Y09 2Q 3Q 4Q
1Q F
Y10 2Q 3Q 4Q
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q 4Q
Demand (units) Y-O-Y growth rate
0%
20%
40%
60%
80%
100%
FY07 FY08 FY09 FY10 FY11 FY12 Apr.-Dec., 2012
Apr.-Dec., 2013
Distributors'rentalIndependentrentalMining & energy
Road
Construction
Others
Construction, Mining & Utility Equipment: Demand in Major Markets (1)Japan & North America
Y-O-Y growth rate
↓
Ownership
100 127
60 61 80
Index 3Q FY07=100
40
90
Y-O-Y growth rate
Demand for hydraulic excavators (Rental & ownership)
+49% Rental
2Q (Jul.- Sep.): Y-O-Y +41% 3Q (Oct.-Dec.): Y-O-Y +41%
Japan
<Demand for 7 major products>
Breakdown of demand by segment (Unit based)
Index 3Q FY05=100
100 76 96
62 50 78 76
37
70
Y-O-Y growth rate
Y-O-Y growth rate
+10%
Rental
Others
-20%
2Q (Jul.-Sep.): Y-O-Y -2% 3Q (Oct.-Dec.): Y-O-Y +/- 0%
North America
+40%
FY13 Projection: +15% to +20% (As of Oct.2013) FY13 Projection:
+/- 0% to -5% (As of Oct. 2013)
Units
Units Units <Demand for 7 major products>
Japan: Third quarter demand expanded, fueled by increased construction investment and full-scale reconstruction works in the earthquake and tsunami destroyed-regions, as well as expanded purchase of equipment by customers who have looked into stricter emission regulations for the near future. Third quarter demand climbed by 41% from the corresponding period a year ago. North America: Third quarter demand was comparable to the corresponding period a year ago, supported by increased demand in the housing and energy sectors, while demand in the rental industry remained sluggish.
15 Business Results for Three and Nine Months ended December 31, 2013
0
10,000
20,000
30,000
40,000
50,000
-50%
0%
50%
100%
150%
200%
250%
1Q F
Y07 2Q 3Q 4Q
1Q F
Y08 2Q 3Q 4Q
1Q F
Y09 2Q 3Q 4Q
1Q F
Y10 2Q 3Q 4Q
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q 4Q
Demand (units) Y-O-Y growth rate
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q F
Y08 2Q 3Q 4Q
1Q F
Y09 2Q 3Q 4Q
1Q F
Y10 2Q 3Q 4Q
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q 4Q
ForestAgroConstructionMining
0
4,000
8,000
12,000
16,000
20,000
24,000
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
FY13 Projection
FY12
FY11
FY10
0
3,000
6,000
9,000
12,000
-80%
-40%
0%
40%
80%
120%
160%
1Q F
Y07 2Q 3Q 4Q
1Q F
Y08 2Q 3Q 4Q
1Q F
Y09 2Q 3Q 4Q
1Q F
Y10 2Q 3Q 4Q
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q 4Q
Indonesia
Other countries
Malaysia
Thailand
Y-O-Y growth rate
Construction, Mining & Utility Equipment: Demand in Major Markets (2) China, Southeast Asia China: Demand for construction equipment (made by foreign makers) upturned for recovery in the first quarter of FY2013 and has been increasing year-on-year since then. Southeast Asia: Demand declined by 12% in the third quarter of FY2013 from the corresponding period a year ago.
100 169 234
125 64 76
Index 3Q FY07=100
101
Units Y-O-Y
growth rate
Indonesia: Demand for construction & mining equipment by industrial sector
<Mining> Apr.-Dec.: -45%
2Q (Jul.- Sep.): Y-O-Y +25% 3Q (Oct.-Dec.): Y-O-Y +33% China
<Demand for 7 major products>
Monthly demand for hydraulic excavators (Foreign makers: Total of 6-ton and larger models)
<Chinese New Year>
69
113 157 221
170
Index : 3Q FY07=100
100
(Represented by Indonesia) 3Q: -12% -2%
2Q (Jul.- Sep.): Y-O-Y -24% 3Q (Oct.-Dec.): Y-O-Y -12%
Southeast Asia
<Demand for 7 major products> Y-O-Y growth rate
150 FY13 Projection: +12% to +17% (As of Oct.2013)
FY13 Projection: -15% to -20% (As of Oct.2013)
Units Units
Units
: Jan. 31, 2014 : Feb. 10, 2013 : Jan. 23, 2012 : Feb. 3, 2011
Demand: Estimated by Komatsu
16 Business Results for Three and Nine Months ended December 31, 2013
+6% +15%
-34%
+39% +52%
-5%
-50%
-100%
-50%
0%
50%
0
2,000
4,000
6,000
8,000
10,000
12,000MiddleEast &AfricaOceania
Asia
China
Europe &CIS
LatinAmerica
NorthAmerica
Y-O-Ygrowthrate
+61% +59% +49% +40%
+25% +5%
-11% -33%
-55% -56%
-48% -50%
0%
50%
100%
0
500
1,000
1,500
2,000
2,500
3,000Middle East &Africa
Oceania
Asia
China
Europe & CIS
Latin America
NorthAmerica
Y-O-Y growthrate
Construction, Mining & Utility Equipment: Mining Equipment Demand and Outlook
- Quarterly demand for mining equipment has continued to decline year-on-year since the third quarter of FY2012, reflecting a cooled down mindset of customers concerning capital investment against the backdrop of subdued commodity prices. - We project the full-year demand will decline by 50% in FY2013 from FY2012, as announced in October 2013.
Quarterly demand for mining equipment Annual demand for mining equipment
Y-O-Y growth rate Units
Units Y-O-Y
growth rate
Projection (as of Oct., 2013)
Dump trucks: 75 tons (HD785) and larger, Bulldozers: 525HP (D375) and larger, Excavators: 200 tons (PC2000) and larger, Wheel loaders: 810HP (WA800) and larger, Motor graders: 280HP (GD825) and larger
Demand: Estimated by Komatsu
17 Business Results for Three and Nine Months ended December 31, 2013
+22% +18%
-14%
+15% +33%
+11%
-22%
-50%
0%
50%
0
200
400
600
800
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY12
FY13
+24% +20%
+4% -1%
-16% -27%
-23%
-50%
0%
50%
0
50
100
150
200
250
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q
Middle East &AfricaOceania
Asia
China
Europe & CIS
Latin America
NorthAmerica
Construction, Mining & Utility Equipment: Sales of Mining Equipment
Quarterly sales of mining equipment have continued to decline year-on-year in tandem with sluggish demand. We project that full-year sales of mining equipment, including parts and service for FY2013 will decline by 22% from FY2012.
Annual sales of mining equipment (Incl. parts and service))
356.5
422.0 361.5
554.0
614.5
476.0 417.0
Quarterly sales of mining equipment (Incl. parts and service))
139.1
157.0 163.4
129.6 119.2
155.2
125.3
136.4 133.9
158.5
107.2
Y-O-Y growth rate
Y-O-Y growth rate
443.0
171.5
614.5
Equipment, service, & others
Parts
293 0
183.0
476.0
Billions of yen Billions
of yen Y-O-Y
growth rate
Projection (As of Oct., 2013)
Projection (As of Oct., 2013)
18 Business Results for Three and Nine Months ended December 31, 2013
105.0 113.0
118.0 138.5
158.0 171.5
183.0
154.5 152.0
120.0
141.5 159.0
148.0 178.5
+2%
-10%
+18% +13%
+1%
+13%
-20%
+0%
+20%
0
100
200
300
400
500
FY07 FY08 FY09 FY10 FY11 FY12 FY13
Construction equipment Mining equipmentY-O-Y growth rate
40.2 37.9 39.0 40.9 43.0 43.7 39.6 45.2 49.2 44.6 46.3
40.7 39.5 37.9 40.9 37.3 36.0 34.7
40.0 45.2
44.2 41.8
+12% +15% +14% +13%
-1% +3% -3% +4%
+18%
+11%
+19%
-20%
0%
20%
0
20
40
60
80
100
120
140
1Q F
Y11 2Q 3Q 4Q
1Q F
Y12 2Q 3Q 4Q
1Q F
Y13 2Q 3Q
Construction equipment Mining equipmentY-O-Y growth rate
Construction, Mining & Utility Equipment: Sales of Parts
- Third quarter sales of parts advanced by 19% from the corresponding period a year ago. - We project that full-year sales of parts will increase by 13% for FY2013 from FY2012, as announced in October 2013.
Quarterly sales of parts
238.0
280.0
317.0
265.0
319.5
Annual sales of parts
361.5
Billions of yen
Y-O-Y growth rate
259.5 80.9
76.9 77.4 81.8
80.3 74.3
79.7 85.2 88.1 88.8
94.4
Billions of yen
Projection (As of Oct 2013)
Y-O-Y growth rate
19 Business Results for Three and Nine Months ended December 31, 2013
D61PXi-23 medium-sized bulldozer which features the world's first* full automatic blade control
* Based on Komatsu's research concerning seven major products, i.e., crawler-type hydraulic excavator, wheel-type hydraulic excavator, wheel loader, bulldozer, motor grader, rigid dump truck and articulated dump truck
Business Coordination Department, KOMATSU LTD. TEL: +81-3-5561-2687 FAX: +81-3-3582-8332 http://www.komatsu.com/
This presentation sheets contain forward-looking statements that reflect management’s views and assumptions in the light of information currently available 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,” “plans,” “expects,” 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. Any forward-looking statements speak only as of the date of this presentation sheets, and Komatsu assumes no duty to update such statements. 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 costs 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; the impact of regulatory changes and accounting principles and practices; and the introduction, success and timing of business initiatives and strategies.
Cautionary Statement
20 Business Results for Three and Nine Months ended December 31, 2013
<Appendix>
21 Business Results for Three and Nine Months ended December 31, 2013
54.0 49.8 58.8 60.1 68.3 64.5
58.8 64.5
55.7 55.5 39.2
61.1 52.4 56.5 56.6
12.1% 12.1%13.3%
11.1%
13.8% 13.1% 12.7% 12.1% 11.9% 12.1%
9.3%11.4% 11.5% 12.0% 12.2%
0
20
40
60
80
100
120
1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q
Operating income Operating income ratio
-2.7 -3.6 -2.9 -3.9 -3.0 -3.9 -3.0 -3.6 -2.9 -2.5 -2.1 -3.2 -1.8 -2.6 -1.6
405.6 358.9 383.8 469.5 436.6 419.7 412.6 475.2 429.7 409.3 368.4
471.9 416.6 413.4 420.7
44.2 57.3 61.2
75.5 60.5 75.8 53.0
61.6 43.0 54.1
53.4
65.6 40.3 59.2 45.3
0
100
200
300
400
500
600
1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q
Industrial Machinery & Others
Construction, Mining & Utility Equipment
Elimination
Quarterly sales
447.1 412.6 442.2 541.1 494.1 491.6 462.6
*
533.2
Quarterly operating income
469.9 460.9
USD
EUR
RMB
1Q FY13 2Q FY13 3Q FY13 4Q FY13
97.3 yen 98.6 yen 99.7 yen
126.4 yen 129.9 yen 135.1 yen
15.8 yen 16.1 yen 16.3 yen
1Q FY10 2Q FY10 3Q FY10 4Q FY10
91.3 yen 85.0 yen 82.2 yen 82.3 yen
114.8 yen 111.5 yen 110.4 yen 113.8 yen
13.4 yen 12.6 yen 12.4 yen 12.5 yen
1Q FY11 2Q FY11 3Q FY11 4Q FY11
81.2 yen 77.1 yen 77.9 yen 79.8 yen
118.3 yen 108.7 yen 104.9 yen 106.3 yen
12.5 yen 12.1 yen 12.3 yen 12.7 yen
1Q FY12 2Q FY12 3Q FY12 4Q FY12
80.6 yen 78.7 yen 80.1 yen 90.7 yen
104.6 yen 98.3 yen 103.5 yen 120.1 yen
12.8 yen 12.4 yen 12.8 yen 14.6 yen
419.7
534.4 455.1 469.9 464.3
<Appendix> Quarterly Sales and Operating Income
Exchange rates
Billions of yen
* Including adverse effects of 7.0 billion yen from the earthquake disaster.
Billions of yen
22 Business Results for Three and Nine Months ended December 31, 2013
405.6358.9 383.8
469.5 436.6 419.7 412.6475.2
429.7 409.3368.4
471.9416.6 413.4 420.7
0
100
200
300
400
500
600
1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q
USD
EUR
RMB
1Q FY13 2Q FY13 3Q FY13 4Q FY13
97.3 yen 98.6 yen 99.7 yen
126.4 yen 129.9 yen 135.1 yen
15.8 yen 16.1 yen 16.3 yen
1Q FY10 2Q FY10 3Q FY10 4Q FY10
91.3 yen 85.0 yen 82.2 yen 82.3 yen
114.8 yen 111.5 yen 110.4 yen 113.8 yen
13.4 yen 12.6 yen 12.4 yen 12.5 yen
1Q FY11 2Q FY11 3Q FY11 4Q FY11
81.2 yen 77.1 yen 77.9 yen 79.8 yen
118.3 yen 108.7 yen 104.9 yen 106.3 yen
12.5 yen 12.1 yen 12.3 yen 12.7 yen
1Q FY12 2Q FY12 3Q FY12 4Q FY12
80.6 yen 78.7 yen 80.1 yen 90.7 yen
104.6 yen 98.3 yen 103.5 yen 120.1 yen
12.8 yen 12.4 yen 12.8 yen 14.6 yen
Quarterly sales
54.2 48.0 54.0 64.4 60.8 59.2 58.8
67.354.2 55.3
38.8
60.552.6 53.1 58.3
13.4% 13.4% 14.1% 13.7% 13.9% 14.1% 14.3% 14.2%12.6% 13.5%
10.5%12.8% 12.6% 12.9% 13.9%
0
20
40
60
80
100
120
1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q
Segment profit
Segment profit ratio
Quarterly segment profit
<Appendix> Construction, Mining & Utility Equipment: Quarterly Sales and Segment Profit
Exchange rates
Billions of yen
Billions of yen
23 Business Results for Three and Nine Months ended December 31, 2013
USD
EUR
RMB
1Q FY13 2Q FY13 3Q FY13 4Q FY13
97.3 yen 98.6 yen 99.7 yen
126.4 yen 129.9 yen 135.1 yen
15.8 yen 16.1 yen 16.3 yen
1Q FY10 2Q FY10 3Q FY10 4Q FY10
91.3 yen 85.0 yen 82.2 yen 82.3 yen
114.8 yen 111.5 yen 110.4 yen 113.8 yen
13.4 yen 12.6 yen 12.4 yen 12.5 yen
1Q FY11 2Q FY11 3Q FY11 4Q FY11
81.2 yen 77.1 yen 77.9 yen 79.8 yen
118.3 yen 108.7 yen 104.9 yen 106.3 yen
12.5 yen 12.1 yen 12.3 yen 12.7 yen
1Q FY12 2Q FY12 3Q FY12 4Q FY12
80.6 yen 78.7 yen 80.1 yen 90.7 yen
104.6 yen 98.3 yen 103.5 yen 120.1 yen
12.8 yen 12.4 yen 12.8 yen 14.6 yen
54.4 62.9 69.6 64.5 61.4 67.6 78.0 79.2 62.5 69.8 76.0 84.2 66.4 83.5 95.6
41.0 42.1 48.6 52.7 55.1
61.7 55.2 65.5 61.9 63.9 56.0
94.4
65.6 70.6 65.2
26.8 21.8 24.3 31.4 31.5
29.2 29.1 30.6
27.9 23.0 22.8
26.5
30.4 26.7 28.0
57.2 49.8 42.7
52.3 50.9 49.4 48.9
55.7 63.3 69.3 62.9
63.5
59.4 61.6 62.6
12.7 10.2 16.7
19.6 21.9 16.6 18.5 22.5
21.9 19.2 24.4
23.8
18.5 17.2 16.1
98.4
54.3 67.2
114.2 75.4
38.8 35.5
51.4 40.7 21.7 20.4
36.9
41.4 31.3
39.5
63.1
61.0
60.2
68.5
74.8
81.0 79.4
84.0
78.5
52.4 34.7
52.3
47.9 43.9 43.3
29.8
27.8
28.9
34.8
34.2
37.9 38.5
51.0
44.3
54.8
43.5
50.2
47.3 39.7 32.1
9.4
11.8
6.6
14.9
11.0
10.0 7.2
8.1
5.2
9.0
4.4
10.9
13.6 13.6 9.0 11.9
16.2
17.9
15.4
18.5 25.6 20.5
25.7
22.4
25.1
22.2
28.2
24.9 24.3 28.1
0
100
200
300
400
500
1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q
405.2
358.4 383.2
468.7
435.3 418.3 411.4
474.2
428.9 Africa
Middle East
Oceania
Asia
China
CIS
Latin America
Europe
North America
Japan
408.7
367.9
471.3
415.9 412.8 420.0
<Appendix> Construction, Mining & Utility Equipment: Quarterly Sales (To Outside Customers) by Region
Exchange rates
Billions of yen
24 Business Results for Three and Nine Months ended December 31, 2013
44.2 57.3
61.2 75.5
60.5
75.8
53.0 61.6
43.0 54.1 53.4
65.6
40.3
59.2 45.3
0
25
50
75
100
1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q
Quarterly sales
Quarterly segment profit
USD
EUR
RMB
1Q FY13 2Q FY13 3Q FY13 4Q FY13
97.3 yen 98.6 yen 99.7 yen
126.4 yen 129.9 yen 135.1 yen
15.8 yen 16.1 yen 16.3 yen
1Q FY10 2Q FY10 3Q FY10 4Q FY10
91.3 yen 85.0 yen 82.2 yen 82.3 yen
114.8 yen 111.5 yen 110.4 yen 113.8 yen
13.4 yen 12.6 yen 12.4 yen 12.5 yen
1Q FY11 2Q FY11 3Q FY11 4Q FY11
81.2 yen 77.1 yen 77.9 yen 79.8 yen
118.3 yen 108.7 yen 104.9 yen 106.3 yen
12.5 yen 12.1 yen 12.3 yen 12.7 yen
1Q FY12 2Q FY12 3Q FY12 4Q FY12
80.6 yen 78.7 yen 80.1 yen 90.7 yen
104.6 yen 98.3 yen 103.5 yen 120.1 yen
12.8 yen 12.4 yen 12.8 yen 14.6 yen
2.0 4.0
7.2 7.5 8.8
6.2
1.5 0.0
2.3 0.9 0.5
2.3 0.8
3.9
(3.6)
4.6%7.2%
11.9% 10.0%14.6%
8.3%
3.0%0.1%
5.5%
1.7% 1.0%3.7%
2.0%
6.7%
-8.1%-5
0
5
10
15
1Q FY10 2Q 3Q 4Q 1Q FY11 2Q 3Q 4Q 1Q FY12 2Q 3Q 4Q 1Q FY13 2Q 3Q 4Q
Segment profitSegment profit ratio
* Including the loss of write-off of Komatsu NTC’s wire saw inventories in the amount of JPY 7.6 billion.
*
<Appendix> Industrial Machinery & Others: Quarterly Sales and Segment Profit
Exchange rates
Billions of yen
Billions of yen