1

Investors Meeting (September 16, 2014)

Komatsus Industrial Machinery Business

(Komatsu Industries Corporation)

Yoshisada Takahashi
Senior Executive Officer,
Supervising the Industrial Machinery Business
 Industrial Machinery Business by Komatsu (as of March 31, 2014) 2

Breakdown of consolidated sales Breakdown of industrial machinery sales

Total: JPY1,953,6 bn)

Komatsu
Presses Industries
Corp.
Komatsu NTC Ltd
Machine tools
Construction, Mining & Industrial Machinery
6.3%
Wire saws 33%
Utility Equipment

89.6% Others: 4.1% 57%

Sheet-metal
machinery
10%

Profile of Komatsus industrial machinery business

FY2013
Subsidiary Location Main business line Main customer
sales
Komatsu Industrial Machinery Corporation Ishikawa Development, sales and service Automobile, electric JPY54.5 bn
Established in 1994 after spinning off the Prefecture of presses and sheet-metal appliance, building
press and sheet-metal machinery business. machinery materials and
construction machinery
Komatsu NTC Ltd. Toyama and Development, production, sales Automobile and solar JPY73.5 bn
Ishikawa
Established in 1945 and acquired in 2008. Prefectures
and service of machine tools and cells
wire saws
 Sales of Komatsus Industrial Machinery Business 3

Breakdown of sales by subsidiary

JPY in bn Komatsu Ltd. (large presses) Komatsu Industries (sheet-metal and Komatsu Machinery (machine tools) Komatsu NTC
press machinery)
300

250

200
150

100

50

0
01 02 03 04 05 06 07 08 09 10 11 12 13 14Projected

Komatsu Ltd. (large presses): Komatsu Industries Corp. (sheet-metal and press machines): Large machinery transferred to Komatsu Industries.
Komatsu Machinery Corp. (machine tools)
Sales by business segment Komatsu NTC as wholly owned Komatsu Machinery and Komatsu NTC
subsidiary merged
Presses Sheet-metal machinery First-quarter sales of Komatsu Industries
JPY in bn JPY in bn JPY in bn
100 20 20
80
15 15
60
10 10
40
5 5
20

0 0 0
1Q/12 1Q/13 1Q/14
Projected Projected
 Komatsu Industries Customers 4

Forging and forming presses

Lights Gas devices
Trucks
Automotive audio
Electric, etc. equipment
Passenge Automobiles
r cars Large press
Forging press Electric motors

Medium-sized press Small press Railway freight and

passenger cars
Buses Vehicles

Automobile industry and Agricultural Forklift trucks Carriers

Construction eqpt
industrial machinery eqpt

Transfer machines Machining centers Welding robots

Large presses

Forging presses
Komatsu Industries Small and medium-sized presses

Komatsu NTC

Crankshaft millers Piston ring

Camshaft millers Sheet-metal machines
machines
 Market Trends 5

Automobile production volume worldwide

Source: IHS Automotive 2014/6/30 Rat of rowth by r ion
N. America Europe & CIS Japan
Units in mn China Southeast Asia Latin America
Others Mexico
India
Jpn, USA, EU: Production shift to emerging

Strategic Markets Jpan, USA & EU

countries China
Average growth of 4%: Steady capital South America
investment related to automobiles
US & Southeast Asia
Europe & CIS

Japan

13 14 15 16 17

Demand (sales) for forging presses Demand (sales) for sheet-metal machines
Source: Japan Forming Machinery Association Source: Japan Forming Machinery Association

JPY in bn (JPY in bn Export

Export Domestic Domestic
200 200

160 160

120 120

80 80

40 40
 Mid-range Focused Efforts for Press and Sheet-metal Machinery 6

Businesses Presses Sheet-metal machinery

Improve product mix to meet the growing Develop products by generating synergy
automobile market and reinforce parts and with presses to meet the growing
Basic policies service operations in growth regions. automobile market and reinforce parts
and service operations in growth regions.

Development and launches of industry-pacesetting new products by emphasizing the key

Growth based concepts of energy saving, ICT, safety and environmental conservation
on innovation
Development of strategic products of the Launch and enhancement of product
1) Product Servo press competitiveness of fiber laser cutting
development machines
Expansion of KOMTRAX-applied areas for Launch of 3D fiber laser cutting machines
industrial machinery

In-house production of key components based on technological innovation

2) Expansion
Reinforcement of operations in Asia and North America
of business
areas Expansion of production in China and reinforcement of parts and service operations in
Asia and North America
 Development of DANTOTSU Products (1/3) 7

Presses Launch of AC Servo presses Comparison of power consumption

1. Energy savings
1) Almost no electricity is consumed during idling, 2.12
thanks to no wet clutch or flywheel. Loaded

Power consumption (kwh)

2) Power is regenerated when the machine Idling
speeds down, thanks to the power
-56%
regeneration system. 0.92

Servo
Converter amplifier
Power source

Condenser
Condenser Mechanical Servo
More-than-needed Condenser Regenerative power
power is regenerative. Is stored.
No. of Servo presses delivered
2. ICT (cumulative) Worlds number one
Standard feature of the industrial machinery-specific KOMTRAX
Support for customers productivity enhancement efforts Units
Other Large Medium H2W H1F-2 H1F
Management (control) of machine operation, productivity and safety 3500

3. High productivity 3000

Speed of manufacturing (SPM): Doubled thanks to the 2500

pendulum motion
2000
No wasteful strokes according to the height of finished
products thanks to Servo-controlled motion 1500

When finished 1000

products are ta Rotary motion Long strokes When finished
Pendulum motion 500
products are short
30
Short strokes 0
-01 02 03 04 05 06 07 08 09 10 11 12 13
 Development of DANTOTSU Products (2/3) 8

Fiber laser cutting machine 1. Energy savings Power consumption while cuttin

Reduction of power
Equipped with in-house consumption while cutting

Power consumption (Index)

developed oscillator
KFL2051 Use of fiber laser with a high -93%
lasing efficiency of 20% ,
compared to CO2 laser (10%)
CO2 laser

Reduction of running costs

Use of the device capable Electricity (machine, dust collector) Laser gas
of condensing nitrogen in Electricity
ambient air and using it as (Oscillator, Chiller) Assist gas
CO2 laser
assist gas
Output power: 1kw and 2kw Patent pending -81%
KFL2048

0 1,000 2,000 3,000 4,000

Running costs (JPY in thousands/year)

Development and launch of the fiber 2. High productivity
laser cutting machine for 3D cutting Highest speed cutting
(2nd half, FY2014) (Planned to exhibit at in the world KFL (2kW)
SUS304 Straight line cutting

Super-speed cutting is

Cutting speed m/min

Conventional
possible due to fiber laser
Komatsu-proprietary (2kW)

method which narrowly CO2 laser

(2kW)
focuses beam power
Fastest in the world Thickness (mm)
2kW Output power: Cutting 1mm thick stainless sheet
 Development of DANTOTSU Products (3/3) 9

Industrial machinery- Supporting customers productivity by making their machine operations visible
specific KOMTRAX Machine & production Customers Komatsu
Power-on hours Machine control Analysis of
machine use
Operating hours Marketing
Frequency Production
Development
Mfg. mode management
Alarms Maintenance
management Service
Product numbers Daily reports
Work description
Overseas expansion Began receiving orders in China, Southeast Asia and North America in July 2014.
200
800 units in operation in Japan Demand for N. America
medium-sized150
(as of March 31, 2014)
150 presses 100
China
50
100
0
50 '10 '11 '12 '13 '14 '15

0
'10 '11 '12 '13 '14 '15 North America

China
Mexico

Southeast Asia
200 Japan
150
Southeast Asia
100
Customers can see real-time
50 production conditions at overseas
0
'10 '11 '12 '13 '14 '15 Customers plants on their PCs in Japan.
 Reinforcement of Operations in Asia 10

Sales in Asia: Komatsu Industries Local production

40 JPY in )
bn
60% in China
50% Press factory
30 Other Asia
40%
20 30% China
20% % of Asia
10 Products
10% % of China
0 0%

Large presses (parts): Began in

Reinforcing parts and service March 2012
China
operations in collaboration with KIS (Tianjin)
construction equipment subsidiaries Komatsu (Shantui)
KCCM
Construction KC
equipment KIPL(Gurgaon) KIS (Shanghai)
Small Servo
Industrial Small presses: presses:
Launched in July
machinery KIS Launched in June 2011. 2014.

Demand for KIPL (Guangzhou)

medium-sized KIPL (Bangalore)
presses KIPL Plasma cutting machines:
(Chennai) KITH Launched in April 2011.
BKC
Thailand
India
Indonesia

KI
KMSI
 Reinforcement of Parts and Service Operations 11

JPY in mn Sales of parts and revenues of service

15,000
Reinforcement of overseas parts and service operations
12,000 Regions Southeast Asia (Thailand & Indonesia)
9,000 China, India and North America (Mexico)
6,000 Reinforcement of overseas service by utilizing industrial
3,000 machinery-specific KOMTRX
0

Regions North America & Southeast Asia
Projected
No. of press and sheet-metal machines delivered and 150 Demand in China
projected future demand for them
As of May 2014. Demand for medium-sized presses 100
Large presses: 2,500 units
50
Press and sheet-metal machines: 72,000 units72,000 units
China 0
:
:
'10 '11 '12 '13 '14 '15
N. America Europe
200 Demand
in
N. America Japan
150

100

50 200
Demand in SE Asia
0 150
'10 '11 '12 '13 '14 '15 Latin America Asia & Oceania 100
50

0
'10 '11 '12 '13 '14 '15
 Komatsu Industries Ratio of Orders Received / Sales (6 Months) 12

6-month average of booking / 6-month average of billing

200%
Ratio of orders received / sales

150%

100%

50%

0%
FY11/1Q 2Q 3Q 4Q FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q
 13

Thank you for your interest in Komatsu.