Komatsu

K O M A TS U F A C T B O O K 2 01 0

2010

FACT BOOK

2-3-6 Akasaka, Minato-ku Tokyo 107-8414, Japan http://www.komatsu.com/

Corporate Communications Department TEL : 81-3-5561-2616

FAX : 81-3-3505-9662

Global Teamwork

HEFA100740 Form No. AEN00002-05

Profile

Directors, Auditors and Officers

Stock and Shareholders

Cash Dividends and Ratings

Business Results

Capital Investment

Research and Development

Financial Statements

Market Forces Global Operations

Subsidiaries and Affiliates

• Ten-Year Summary 6 • Consolidated / Non-Consolidated 8 • Consolidated: Quarterly 12 • Manufacturing Operations of Construction, Mining and Utility Equipment, and Forest Machines 26 • Product Support Operations of Construction and Mining Equipment 32

• Manufacturing, Sales and Service Operations of

Industrial Machinery and Others 33

Contents

2 3 4 5 6 14 15 16 26

Products and Applications 19

34

36

Directory 49

Pr ofile

Company Name

Komatsu Ltd.

President and Chief Executive Officer

Kunio Noji

Established

May 13,1921

Head Office

2-3-6, Akasaka, Minato-ku, Tokyo 107-8414, Japan

Main Businesses

Manufacture and sale of construction and mining equipment, utility equipment (compact machines), forest machines, industrial machinery and others

Common Stock

Consolidated: ¥67,870 million (US$730 million) *

(In accordance with generally accepted accounting principles in the United States of America.) Non-Consolidated: ¥70,120 million (US$754 million) *

[Reference] Fiscal Years

Net Sales (Fiscal year ended March 31, 2010)

Consolidated: ¥ 1,431,564 million (US$ 15,393 million) *

Non-Consolidated: ¥ 457,676 million (US$ 4,921 million) *

Sales by Operation (Consolidated)

Affiliated Companies (As of March 31, 2010)

The Komatsu Group consists of Komatsu Ltd. and 183 other companies. • Consolidated subsidiaries: 143

• Companies accounted for by the equity method: 40

Number of Employees (As of March 31, 2010)

Consolidated: (Total number of employees of Komatsu Ltd. and the 143 consolidated subsidiaries)

38,518 Non-Consolidated:

Number of Employees: 8,142

Average Age: 38.2

Average Years of Service: 15.3

Note: The Company observes compulsory retirement at age 60.

* U.S. dollar amounts are converted at the rate of ¥93 = US$1.00, the prevailing rate announced by the Federal Reserve Bank of New York on March 31, 2010.

Construction, Mining and Utility Equipment

88.6% ¥1,268,575 million Industrial Machinery and Others 11.4% ¥162,989 million

From: April, 2000 April, 2001 April, 2002 April, 2003 April, 2004 April, 2005 April, 2006 April, 2007 April, 2008 April, 2009 To: March, 2001 March, 2002 March, 2003 March, 2004 March, 2005 March, 2006 March, 2007 March, 2008 March, 2009 March, 2010 Fiscal years Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended ended March 31 March 31, 2001 March 31, 2002 March 31, 2003 March 31, 2004 March 31, 2005 March 31, 2006 March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010

Abbreviation 2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3 2010/3

Profile

Directors, Auditors and Officers

Dir

ectors, Auditors and Of

ficers (As of July 1, 2010) 3

Executive Officers

Board of Directors

Masahiro Sakane

Chairman of the Board

Kunio Noji

President and Chief Executive Officer

Yoshinori Komamura

Executive Vice President

President, Construction & Mining Equipment Marketing Division

Yasuo Suzuki

Director and Senior Executive Officer President, Industrial Machinery Division

Kenji Kinoshita

Director and Senior Executive Officer Chief Financial Officer

Supervising Investor Relations

Masao Fuchigami

Director and Senior Executive Officer Supervising Environment, Research, Design & Development and Quality Assurance

Tetsuji Ohashi

Director and Senior Executive Officer President, Production Division Supervising Production and e-KOMATSU

Kensuke Hotta

Outside Director

Chairman and Representative Director, Greenhill & Co. Japan Ltd.

Noriaki Kano

Outside Director Professor Emeritus, Tokyo University of Science

Kouichi Ikeda

Outside Director

Advisor, Asahi Breweries, Ltd.

Masaji Kitamura

Standing Corporate Auditor

Kyoji Torii

Standing Corporate Auditor

Makoto Okitsu

Outside Corporate Auditor Advisor, Teijin Limited

Hiroyuki Kamano

Outside Corporate Auditor Partner, Kamano Sogo Law Offices

Kunihiro Matsuo

Outside Corporate Auditor Attorney at Law

Taizo Kayata

Senior Executive Officer

Representative of All China Operations

Nobukazu Kotake

Senior Executive Officer

Deputy Representative of All China Operations (Responsible for Development, Product Planning and Quality Assurance)

Tetsuro Kajiya

Senior Executive Officer

Deputy Representative of All China Operations (Responsible for Production and Procurement)

Koji Yamada

Senior Executive Officer

Representative of All India Operations

Nobuki Hasegawa

Executive Officer

Representative of All Indonesia Operations (Responsible for Development, Product Planning and Quality Assurance)

Masao Fujita

Executive Officer

Representative of All CIS Operations

Hiroyuki Horii

Senior Executive Officer

Vice President, Industrial Machinery Division President, Komatsu NTC Ltd.

Susumu Yamanaka

Senior Executive Officer

President, Defense Systems Division

Masakatsu Hioki

Senior Executive Officer

Supervising Compliance, Legal Affairs, Human Resources, Education and Safety & Health Care

Shinichiro Komiya

Senior Executive Officer

President, Japanese Domestic Marketing, Construction & Mining Equipment Marketing Division

President, Komatsu Construction Equipment Sales and Service Japan Ltd.

Fusao Seki

Senior Executive Officer General Manager, CSR

Supervising Corporate Communications and General Affairs

Kazuhiko Iwata

Senior Executive Officer

President, Global Mining Business, Construction & Mining Equipment Marketing Division

Mikio Fujitsuka

Senior Executive Officer

General Manager, Corporate Planning

President, Global Retail Finance Business Division Supervising Audits

Fujitoshi Takamura

Senior Executive Officer President, Development Division

Ichiro Sasaki

Executive Officer

Awazu Plant Manager, Production Division

Noriyuki Sudo

Executive Officer

President, Rental and Used Equipment Business, Construction & Mining Equipment

Marketing Division

President, Komatsu Used Equipment Corp.

Yoshisada Takahashi

Executive Officer

Vice President, Production Division Osaka Plant Manager

Tadashi Okada

Executive Officer

Vice President, Industrial Machinery Division President, Komatsu Industries Corporation

Masahiro Uegaki

Executive Officer

President, Procurement Division

Kazunori Kuromoto

Executive Officer

President, ICT Business, Construction & Mining Equipment Marketing Division

Mitsuru Ueno

Executive Officer

President, Engines Business Division President, Industrial Power Alliance, Ltd.

Kikuo Ejima

Executive Officer President, Research Division

Shuji Yamashita

Executive Officer

Oyama Plant Manager, Production Division President, Komatsu Cummins Engine Co., Ltd.

Masanao Mori

Executive Officer

General Manager, Human Resources

Ichiro Nakano

Executive Officer General Manager,

System Development Center, Development Division

Hidetaka Kita

Executive Officer

President, Product Support, Construction & Mining Equipment Marketing Division

Noboru Sato

Executive Officer

President, Overseas Marketing, Construction & Mining Equipment Marketing Division

Yuichi Iwamoto

Executive Officer

General Manager, Construction Equipment Technical Center 2, Development Division

Masayuki Moriyama

Executive Officer

General Manager, Construction Equipment Technical Center 1, Development Division

Hiroyuki Ogawa

Executive Officer

Ibaraki Plant Manager, Production Division

Yasuhiro Inagaki

Executive Officer

General Manager, Business Development General Manager, Legal

Corporate Auditors

Stock Listings

Tokyo, Osaka

Stock Code

6301

Shares of Common Stock Issued and Outstanding 998,744,060 shares

One Unit (tangen) of Shares

100

Number of Shareholders

267,505

Shareholders

Stock Prices on the Tokyo Stock Exchange

Average Daily Volume of Stock Traded, by Month

2006/3 2007/3 2008/3 2009/3 2010/3 High (yen) Low (yen) 2,255 715 2,870 1,857 4,090 2,175 Yen 0 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 3,440 702 2,099 1,090 2006/3 2007/3 2008/3 2009/3 2010/3 Million shares 25 20 15 10 5 0

Stock and Shareholders

(As of March 31, 2010)

Corporate

3.9%

1,928 shareholders 39,054,131 shares

Securities

2.2%

192 shareholders 22,155,502 shares

Individual and

other

25.0%

264,315 shareholders 250,172,861 shares

Financial

33.6%

214 shareholders 336,172,401 shares

Foreign

35.1%

856 shareholders 351,189,165 shares High Opening Closing Low High Closing Opening Low

Black: opening price > closing price White: closing price > opening price

Note: Fractions of percentages falling at the second and lower decimal places are omitted.

Stock and Shar

eholders

Stock Listings

Tokyo, Osaka

Stock Code

6301

Shares of Common Stock Issued and Outstanding 998,744,060 shares

One Unit (tangen) of Shares

100

Number of Shareholders

267,505

Basic Policy

Komatsu is building a sound financial position and flexible and agile corporate strengths to increase its corporate value. Concerning cash dividends to shareholders, the Company maintains the policy of redistributing profits by considering consolidated business results and continuing stable dividends.

Specifically, the Company has set the goal of a consolidated payout ratio of 20% or higher, and maintains the policy of not decreasing dividends, as long as the consolidated payout ratio does not surpass 40%.

Annual Cash Dividends

2006/3 2007/3 2008/3 2009/3 2010/3

Interim

Payout ratio (consolidated) Total Year-end 8 15.6% 13 20 18 31 10 18 Yen 18.7% 20.0% 22 42 50 40 30 20 10 0 50.0% 22 18 40 46.1% 8 8 16

R&I: Rating and Investment Information, Inc. S&P: Standard & Poor’s

Moody’s S&P R& I A2 BBB+ A-A A+ A AA-2006/3 2007/3 2008/3 2009/3 2010/3

Cash Dividends and Ratings

Cash Dividends

Ratings

(As of March 31, 2010)

Cash Dividends and Ratings

5

Note: Regarding FY2008 ended March 31, 2009, the consolidated payout ratio is 40%, not factoring in expenses incurred for structural reforms (JPY32.3 billion at operating income, JPY 19.6 billion at net income attributable to Komatsu Ltd.).

Regarding FY2009 ended March 31, 2010, the consolidated payout ratio is 38%, not factoring in expenses incurred for structural reforms (JPY12.0 billion at operating income, JPY7.3 billion at net income attributable to Komatsu Ltd.).

Ten-Year Summary

2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3 2010/3

■Sales and Profits Net sales ¥1,096,369 ¥1,035,891 ¥1,027,290 ¥1,127,300 ¥1,356,071 ¥1,612,140 ¥1,893,343 ¥2,243,023 ¥2,021,743 ¥1,431,564 $15,393

Cost of sales 804,700 792,748 770,515 830,897 1,009,859 1,185,240 1,356,511 1,590,963 1,510,408 1,101,559 11,845 Segment profit (loss) 27,815 (13,221) 28,813 60,834 94,201 164,501 249,746 334,586 188,658 80,719 868 Segment profit (loss) ratio (%) 2.5 (1.3) 2.8 5.4 6.9 10.2 13.2 14.9 9.3 5.6 — Operating income — — 23,972 29,870 95,862 163,428 244,741 332,850 151,948 67,035 721 Operating income ratio (%) — — 2.3 2.6 7.1 10.1 12.9 14.8 7.5 4.7 — Income (loss) before income taxes and equity in earning of affiliated companies 20,064 (106,724) 9,853 22,503 91,869 155,779 236,491 322,210 128,782 64,979 699 Net income (loss) attributable to Komatsu Ltd. 6,913 (80,621) 3,009 26,963 59,010 114,290 164,638 208,793 78,797 33,559 361 Notes: 1. Concerning the figures for the fiscal year ended March 31, 2002 and earlier, Komatsu Electronic Metals Co., Ltd. and its subsidiaries and the outdoor power equipment (OPE) of Komatsu Zenoah Co. and its subsidiaries engaging in the OPE business were not reclassified as discontinued operations resulting from the sale thereof. 2. “Net income attributable to Komatsu Ltd.” is equivalent to “Net income” for the fiscal year ended March 31, 2009 and preceding fiscal years.

■Balance Sheets Total assets 1,403,195 1,340,282 1,306,354 1,348,645 1,449,068 1,652,125 1,843,982 2,105,146 1,969,059 1,959,055 21,065

Working capital 135,990 100,564 175,764 191,680 172,998 259,058 358,565 412,145 370,952 398,375 4,284 Property, plant and equipment 438,795 405,301 400,087 367,361 366,660 400,667 388,393 491,146 525,462 525,100 5,646 Shareholders' equity 474,257 395,143 395,366 425,507 477,144 622,997 776,717 887,126 814,941 833,975 8,967 Shareholders' equity ratio (%) 33.8 29.5 30.3 31.6 32.9 37.7 42.1 42.1 41.4 42.6 — Net interest-bearing debt 427,616 430,429 448,326 388,598 334,729 307,862 256,821 349,988 509,248 502,818 5,407 Net debt-to-equity ratio (times) 0.90 1.09 1.13 0.91 0.70 0.49 0.33 0.39 0.62 0.60 — Note: Net interest-bearing debt = interest-bearing debt - cash and cash equivalents - time deposits

■ROA (Return on Assets) and ROA (%) 1.4 (7.8) 0.7 1.7 6.6 10.0 13.5 16.3 6.3 3.3 —

■ROE (Return on Equity) ROE (%) 1.4 (18.5) 0.8 6.6 13.1 20.8 23.5 25.1 9.3 4.1 —

Note: Concerning ROA for the fiscal year ended March 31, 2002 and earlier, Komatsu Electronic Metals Co., Ltd. and its subsidiaries and the outdoor power equipment (OPE) of Komatsu Zenoah Co. and its subsidiaries engaging in the OPE business were not reclassified as discontinued operations resulting from the sale thereof.

■Cash Flows Net cash provided by operating activities 69,976 60,321 48,257 117,290 121,369 136,107 162,124 160,985 78,775 182,161 1,959

Net cash used in investing activities (35,142) (16,933) (36,018) (40,931) (37,731) (81,792) (99,620) (128,182) (145,368) (72,967) (785)

Net cash provided by (used in) financing activities (75,863) (40,455) 18,846 (78,971) (57,835) (83,460) (41,389) (17,422) 57,219 (116,363) (1,251)

Cash and cash equivalents, end of year 39,760 45,392 76,152 71,406 97,510 69,997 92,199 102,010 90,563 82,429 886

■Capital Investment and Research Capital investment 79,310 74,468 70,473 78,049 89,019 113,934 129,680 145,730 162,512 96,191 1,034

■and Development Expenses Depreciation and amortization 59,675 54,239 62,947 62,220 60,611 51,737 59,765 69,141 84,630 81,582 877

Research and development expenses 45,282 44,083 39,027 42,602 46,448 44,560 46,306 49,673 53,736 46,449 500

Note: Concerning the figures for the fiscal year ended March 31, 2005 and earlier, Komatsu Electronic Metals Co., Ltd. and its subsidiaries and the outdoor power equipment (OPE) of Komatsu Zenoah Co. and its subsidiaries engaging in the OPE business were not reclassified as discontinued operations resulting from the sale thereof.

■Per-Share Data (yen) Net income (loss) attributable to Komatsu Ltd. per share 7.24 (84.46) 3.09 27.17 59.51 115.13 165.70 209.87 79.95 34.67 37.28¢

Shareholders' equity per share 497.12 414.02 398.34 428.73 481.27 626.98 781.57 891.49 842.04 861.51 926.35¢

■Number of Employees 32,002 30,760 30,666 31,635 33,008 34,597 33,863 39,267 39,855 38,518 —

■Exchange Rate to the U.S. dollar (yen) At fiscal period-end 126 133 118 104 107 117 118 100 99 93 —

* per the Federal Reserve Bank of New York _{Average for the fiscal year 112 126 121 113 107 114 117 114 101 93 —}

Non-Consolidated

■Sales and Profits Net sales ¥ 430,270 ¥ 382,908 ¥ 376,912 ¥ 418,686 ¥ 523,592 ¥ 627,319 ¥ 758,529 ¥ 926,731 ¥ 787,028 ¥ 457,676 $ 4,921

Ordinary income (loss) 11,281 3,794 12,634 19,942 33,417 60,662 98,149 135,500 40,034 (1,120) (12)

Net income (loss) 7,222 (41,828) 3,486 10,588 17,042 32,635 82,843 96,832 9,317 2,378 26

Net income (loss) per share (yen) 7.52 (43.81) 3.50 10.50 16.91 32.53 83.34 97.28 9.45 2.46 2.65¢

■Cash Dividends (yen) Cash dividends per share 6.00 6.00 6.00 7.00 11.00 18.00 31.00 42.00 40.00 16.00 17.20¢

Consolidated [U.S. GAAP]

* U.S. dollar amounts are converted and rounded off only for reference at a rate of ¥93 = US$1.00, the prevailing rate announced by the Federal Reserve Bank of New York on March 31, 2010.

Ten-Y

ear

Summary

Ten-Year Summary

2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3 2010/3

■Sales and Profits Net sales ¥1,096,369 ¥1,035,891 ¥1,027,290 ¥1,127,300 ¥1,356,071 ¥1,612,140 ¥1,893,343 ¥2,243,023 ¥2,021,743 ¥1,431,564 $15,393

Cost of sales 804,700 792,748 770,515 830,897 1,009,859 1,185,240 1,356,511 1,590,963 1,510,408 1,101,559 11,845 Segment profit (loss) 27,815 (13,221) 28,813 60,834 94,201 164,501 249,746 334,586 188,658 80,719 868 Segment profit (loss) ratio (%) 2.5 (1.3) 2.8 5.4 6.9 10.2 13.2 14.9 9.3 5.6 — Operating income — — 23,972 29,870 95,862 163,428 244,741 332,850 151,948 67,035 721 Operating income ratio (%) — — 2.3 2.6 7.1 10.1 12.9 14.8 7.5 4.7 — Income (loss) before income taxes and equity in earning of affiliated companies 20,064 (106,724) 9,853 22,503 91,869 155,779 236,491 322,210 128,782 64,979 699 Net income (loss) attributable to Komatsu Ltd. 6,913 (80,621) 3,009 26,963 59,010 114,290 164,638 208,793 78,797 33,559 361 Notes: 1. Concerning the figures for the fiscal year ended March 31, 2002 and earlier, Komatsu Electronic Metals Co., Ltd. and its subsidiaries and the outdoor power equipment (OPE) of Komatsu Zenoah Co. and its subsidiaries engaging in the OPE business were not reclassified as discontinued operations resulting from the sale thereof. 2. “Net income attributable to Komatsu Ltd.” is equivalent to “Net income” for the fiscal year ended March 31, 2009 and preceding fiscal years.

■Balance Sheets Total assets 1,403,195 1,340,282 1,306,354 1,348,645 1,449,068 1,652,125 1,843,982 2,105,146 1,969,059 1,959,055 21,065

Working capital 135,990 100,564 175,764 191,680 172,998 259,058 358,565 412,145 370,952 398,375 4,284 Property, plant and equipment 438,795 405,301 400,087 367,361 366,660 400,667 388,393 491,146 525,462 525,100 5,646 Shareholders' equity 474,257 395,143 395,366 425,507 477,144 622,997 776,717 887,126 814,941 833,975 8,967 Shareholders' equity ratio (%) 33.8 29.5 30.3 31.6 32.9 37.7 42.1 42.1 41.4 42.6 — Net interest-bearing debt 427,616 430,429 448,326 388,598 334,729 307,862 256,821 349,988 509,248 502,818 5,407 Net debt-to-equity ratio (times) 0.90 1.09 1.13 0.91 0.70 0.49 0.33 0.39 0.62 0.60 — Note: Net interest-bearing debt = interest-bearing debt - cash and cash equivalents - time deposits

■ROA (Return on Assets) and ROA (%) 1.4 (7.8) 0.7 1.7 6.6 10.0 13.5 16.3 6.3 3.3 —

■ROE (Return on Equity) ROE (%) 1.4 (18.5) 0.8 6.6 13.1 20.8 23.5 25.1 9.3 4.1 —

Note: Concerning ROA for the fiscal year ended March 31, 2002 and earlier, Komatsu Electronic Metals Co., Ltd. and its subsidiaries and the outdoor power equipment (OPE) of Komatsu Zenoah Co. and its subsidiaries engaging in the OPE business were not reclassified as discontinued operations resulting from the sale thereof.

■Cash Flows Net cash provided by operating activities 69,976 60,321 48,257 117,290 121,369 136,107 162,124 160,985 78,775 182,161 1,959

Net cash used in investing activities (35,142) (16,933) (36,018) (40,931) (37,731) (81,792) (99,620) (128,182) (145,368) (72,967) (785)

Net cash provided by (used in) financing activities (75,863) (40,455) 18,846 (78,971) (57,835) (83,460) (41,389) (17,422) 57,219 (116,363) (1,251)

Cash and cash equivalents, end of year 39,760 45,392 76,152 71,406 97,510 69,997 92,199 102,010 90,563 82,429 886

■Capital Investment and Research Capital investment 79,310 74,468 70,473 78,049 89,019 113,934 129,680 145,730 162,512 96,191 1,034

■and Development Expenses Depreciation and amortization 59,675 54,239 62,947 62,220 60,611 51,737 59,765 69,141 84,630 81,582 877

Research and development expenses 45,282 44,083 39,027 42,602 46,448 44,560 46,306 49,673 53,736 46,449 500

Note: Concerning the figures for the fiscal year ended March 31, 2005 and earlier, Komatsu Electronic Metals Co., Ltd. and its subsidiaries and the outdoor power equipment (OPE) of Komatsu Zenoah Co. and its subsidiaries engaging in the OPE business were not reclassified as discontinued operations resulting from the sale thereof.

■Per-Share Data (yen) Net income (loss) attributable to Komatsu Ltd. per share 7.24 (84.46) 3.09 27.17 59.51 115.13 165.70 209.87 79.95 34.67 37.28¢

Shareholders' equity per share 497.12 414.02 398.34 428.73 481.27 626.98 781.57 891.49 842.04 861.51 926.35¢

■Number of Employees 32,002 30,760 30,666 31,635 33,008 34,597 33,863 39,267 39,855 38,518 —

■Exchange Rate to the U.S. dollar (yen) At fiscal period-end 126 133 118 104 107 117 118 100 99 93 —

* per the Federal Reserve Bank of New York _{Average for the fiscal year 112 126 121 113 107 114 117 114 101 93 —}

■Sales and Profits Net sales ¥ 430,270 ¥ 382,908 ¥ 376,912 ¥ 418,686 ¥ 523,592 ¥ 627,319 ¥ 758,529 ¥ 926,731 ¥ 787,028 ¥ 457,676 $ 4,921

Ordinary income (loss) 11,281 3,794 12,634 19,942 33,417 60,662 98,149 135,500 40,034 (1,120) (12)

Net income (loss) 7,222 (41,828) 3,486 10,588 17,042 32,635 82,843 96,832 9,317 2,378 26

Net income (loss) per share (yen) 7.52 (43.81) 3.50 10.50 16.91 32.53 83.34 97.28 9.45 2.46 2.65¢

■Cash Dividends (yen) Cash dividends per share 6.00 6.00 6.00 7.00 11.00 18.00 31.00 42.00 40.00 16.00 17.20¢

Millions of yen except

per share amounts Millions of U.S. dollars* per share amounts

Millions of yen except

per share amounts Millions of U.S. dollars* per share amounts

Ten-Y

ear

Summary

Net sales*

2,500 2,000 1,500 1,000 500 0 2006/3 2007/3 2008/3 1,612.1 2009/3 2010/3 1,893.3 2,243.0 Net sales* Billions of yen 2,021.7 1,431.5

Segment profit* and segment profit ratio*

350 15 12 9 6 3 0 280 210 140 70 0 Segment profit* 164.5 249.7 Segment profit ratio* 10.2 13.2

334.5 14.9 2006/3 2007/3 2008/3 2009/3 2010/3 % Billions of yen 188.6 9.3 80.7 5.6

Operating income* and operating income ratio*

350 15 12 9 6 3 0 280 210 140 70 0 Operating income* 163.4 244.7 Operating income ratio* 10.1 12.9

332.8 14.8 2006/3 2007/3 2008/3 2009/3 2010/3 % Billions of yen 151.9 7.5 67.0 4.7

Income before income taxes and equity in earnings

of affiliated companies* and ROA*

350 20 16 12 8 4 0 280 210 140 70 0 Income before income taxes and equity

in earnings of affiliated companies* 155.7 236.4

ROA* 10.0 13.5 322.2 16.3 2006/3 2007/3 2008/3 2009/3 2010/3 % Billions of yen 128.7 6.3 64.9 3.3

Net income attributable to Komatsu Ltd. and ROE

250 30 24 18 12 6 0 200 150 100 50 0 Net income attributable to Komatsu Ltd. 2006/3 2007/3 114.2 2008/3 2009/3 2010/3 164.6 ROE 20.8 23.5 208.7 25.1 % Billions of yen 78.7 9.3 33.5 4.1

Net income attributable to Komatsu Ltd. per share

250 200 150 100 50 0 115.13 165.70 209.87 Net income attributable to

Komatsu Ltd. per share

2006/3 2007/3 2008/3 2009/3 2010/3 Yen

79.95 34.67

Financial Highlights (Consolidated)

Notes 1. * In accordance with Statement of Financial Accounting Standards No.144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the consolidated statement of income have been retrospectively reclassified as for the discontinued operations from FY2006, ended March 31, 2007. 2. “Net income attributable to Komatsu Ltd.” is equivalent to “Net income” for the fiscal year ended March 31, 2009 and preceding fiscal years. Financial Highlights (Consolidated) 8

Total assets

2,500 2,000 1,500 1,000 500 0 1,652.1 1,843.9 2,105.1 Total assets 2006/3 2007/3 2008/3 2009/3 2010/3 Billions of yen 1,969.0 1,959.0

Shareholders’ equity and shareholders’ equity ratio

1,000 50 40 30 20 10 0 800 600 400 200 0 Shareholders’ equity 622.9 776.7 Shareholders’ equity ratio 37.7 42.1

887.1 42.1 2006/3 2007/3 2008/3 2009/3 2010/3 % Billions of yen 814.9 41.4 833.9 42.6

Net interest-bearing debt

600 480 360 240 120 0 307.8 256.8 349.9

Net interest-bearing debt

2006/3 2007/3 2008/3 2009/3 2010/3 Billions of yen

509.2 502.8

Net debt-to-equity ratio

0.80 0.64 0.48 0.32 0.16 0 0.49 0.33 0.39

Net debt-to-equity ratio

2006/3 2007/3 2008/3 2009/3 2010/3 Times

0.62 0.60

Shareholders’ equity per share

1,000 800 600 400 200 0 626.98 781.57 891.49 Shareholders’ equity per share 2006/3 2007/3 2008/3 2009/3 2010/3 Yen 842.04 861.51 Financial Highlights (Consolidated) Note: Net interest-bearing debt = interest-bearing debt - cash and cash equivalents - time deposits Note: Net debt-to-equity ratio = (interest-bearing debt - cash and cash equivalents - time deposits)/shareholders' equity Financial Highlights (Consolidated) 9

Sales by operation (to outside customers)

2,500 2,000 1,500 1,000 500 0 2007/3 2008/3 2009/3 2010/3 Construction, mining and

utility equipment Industrial machinery and others Billions of yen 1,711.2 182.0 2,048.7 194.3 1,744.7 277.0 1,268.5 162.9

Sales by region (to outside customers)

2,500 2,000 1,500 1,000 500 0 487.1 537.8 324.0 129.4 252.7 162.1 505.1 541.1 427.6 189.9 348.4 230.6 Japan Americas Europe and CIS China Asia and Oceania Middle East and Africa

2007/3 2008/3 2009/3 2010/3 Billions of yen 452.1 503.4 284.0 236.2 335.5 210.2 323.8 323.9 127.3 270.8 299.8 85.6

Sales of construction, mining and utility equipment by region (to outside customers)

2,500 2,000 1,500 1,000 500 0 Japan Americas Europe and CIS China Asia and Oceania Middle East and Africa

2007/3 2008/3 2009/3 2010/3 Billions of yen 367.0 510.0 320.8 112.5 238.8 161.8 370.7 510.5 427.0 181.4 328.7 230.1 309.8 462.4 273.2 179.2 309.7 210.2 228.5 306.1 122.0 244.5 281.8 85.5

Segment profit

350 280 210 140 70 0 2007/3 2008/3 2009/3 2010/3 Billions of yen

Construction, mining and utility equipment Industrial machinery and others 232.6 20.3 317.8 19.9 180.4 12.8 83.0 2.9

Segment profit ratio

20 16 12 8 4 0 2007/3 2008/3 2009/3 2010/3 %

Construction, mining and utility equipment Industrial machinery and others 13.5 10.0 15.5 9.2 10.3 4.2 6.5 1.7

Consolidated companies including Komatsu Ltd. and employees

40,000 200 160 120 80 40 0 32,000 24,000 16,000 8,000 0 Number of employees 34,597 33,863 Number of consolidated companies

including Komatsu Ltd. 158 146 39,267 166 2006/3 2007/3 2008/3 2009/3 2010/3 Companies Employees 39,855 165 38,518 144

Financial Highlights (Consolidated)

Note: Starting in the fiscal year ended March 31, 2009, Komatsu changed its business segments, and thus some figures of sales by operation and segment information for the fiscal years, ended March 31, 2008 and 2007, are presented after reclassifying according to the new segmentation. Financial Highlights (Consolidated) 10

Net sales

1,000 800 600 400 200 0 627.3 758.5 926.7 Net sales 2006/3 2007/3 2008/3 2009/3 2010/3 Billions of yen 787.0 457.6

Ordinary income (loss)

60.6 98.1 135.5

Ordinary income (loss)

2006/3 2007/3 2008/3 2009/3 2010/3 Billions of yen 40.0 160 120 80 40 0 -40 (1.1)

Net income

100 80 60 40 20 0 32.6 82.8 96.8 Net income 2006/3 2007/3 2008/3 2009/3 2010/3 Billions of yen 9.3 2.3

Net income per share

100 80 60 40 20 0 32.53 83.34 97.28

Net income per share

2006/3 2007/3 2008/3 2009/3 2010/3 Yen

9.45 2.46

Financial Highlights (Non-Consolidated)

Financial

Highlights

(Non-Consolidated)

Sales by operation (to outside customers)

625 500 375 250 125 0 2007/3 4Q 3Q 2Q 1Q 2008/3 4Q 3Q 2Q 1Q 2009/3 4Q 3Q 2Q 1Q 2010/3 4Q 3Q 2Q 1Q Billions of yen

Construction, mining and utility equipment Industrial machinery and others 501.8 39.0 487.6 51.4 500.4 48.5 558.7 55.2 534.0 72.7 516.1 88.3 378.4 52.9 316.0 62.9 416.8 409.6 398.4 34.2 486.3 67.5 49.3 30.9 284.6 35.7 284.9 40.6 316.8 41.0 382.0 45.5

Sales by region (to outside customers)

625 500 375 250 125 0 4Q 3Q 2Q 1Q 1Q 2Q 3Q 4Q 141.8 4Q 120.3 3Q 121.8 2Q 103.0 125.6 133.6 139.5 78.2 74.0 66.4 25.9 23.3 31.9 62.9 66.9 53.6 37.7 39.1 34.8 138.9 105.3 48.1 69.1 50.3 1Q 2007/3 2008/3 2009/3 4Q 3Q 2Q 1Q 2010/3 Billions of yen Japan Americas Europe and CIS China Asia and Oceania Middle East and Africa

108.7 143.3 110.2 47.3 82.2 48.9 125.7 134.5 102.8 34.0 81.3 60.5 135.5 121.9 104.5 44.0 92.6 50.2 135.2 141.2 110.0 64.4 92.1 70.7 106.5 147.6 108.8 80.4 105.5 57.7 128.4 153.3 91.6 54.1 104.5 72.3 112.3 109.9 48.8 36.0 69.5 54.6 104.8 92.5 34.6 65.5 55.9 25.4 68.7 80.3 36.0 59.4 57.6 18.1 81.9 71.9 26.1 58.3 66.1 20.9 87.3 80.4 30.6 60.8 78.0 20.7 85.7 91.2 34.5 92.2 98.0 25.7

Sales of construction, mining and utility equipment by region (to outside customers)

600 480 360 240 120 0 4Q 3Q 2Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2007/3 2008/3 2009/3 Billions of yen Japan Americas Europe and CIS China Asia and Oceania Middle East and Africa

4Q 3Q 2Q 1Q 2010/3 95.5 97.1 91.0 83.3 119.4 125.3 134.2 77.9 73.2 66.3 23.9 20.3 28.2 60.5 60.6 51.4 37.7 39.0 34.8 131.0 103.2 40.0 66.2 50.2 83.4 134.6 110.0 45.6 79.1 48.9 89.2 125.7 102.5 31.9 77.6 60.5 100.8 115.7 104.5 41.3 87.8 50.1 97.2 134.4 109.9 62.5 84.1 70.5 80.0 130.8 107.9 62.4 95.0 57.7 81.3 139.1 84.8 39.1 99.3 72.3 84.4 103.0 47.1 23.9 65.1 54.6 64.1 89.3 33.3 53.6 50.1 25.4 51.7 72.8 32.0 55.4 54.3 18.1 54.7 70.4 26.7 49.0 62.9 20.8 60.6 76.2 30.1 55.5 73.5 20.7 61.3 86.5 33.0 84.4 91.0 25.7

Financial Highlights (Consolidated: Quarterly)

Financial Highlights (Consolidated: Quarterly) 12 Note: Starting in the fiscal year ended March 31, 2009, Komatsu changed its business segments, and thus some figures of sales by operation and segment information for the fiscal years, ended March 31, 2008 and 2007, are presented after reclassifying according to the new segmentation.

Segment profit (loss) and segment profit (loss) ratio

100 75 50 25 0 -25 2007/3 4Q 3Q 2Q 1Q 2008/3 4Q 3Q 2Q 1Q 2009/3 78.3 4Q 58.1 3Q 59.8 2Q 53.4 12.9 13.0 12.4 14.1 1Q Segment profit (loss)

Segment profit (loss) ratio

20 15 10 5 0 -5 % Billions of yen 81.4 15.1 80.3 14.9 78.7 14.3 94.0 15.3 2010/3 4Q 3Q 2Q 1Q 81.6 13.5 77.7 12.9 41.5 9.6 (12.3) (3.2) 8.4 2.6 12.9 4.0 20.8 5.8 38.5 9.0

Segment profit (loss)

100 75 50 25 0 -25 4Q 3Q 2Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2007/3 2008/3 2009/3 Billions of yen

Construction, mining and utility equipment Industrial machinery and others 4Q 3Q 2Q 1Q 2010/3 70.4 54.9 55.5 51.7 4.0 5.8 2.0 8.4 78.2 3.8 74.5 6.4 74.7 4.9 90.3 4.7 78.3 4.7 70.3 9.1 39.3 2.3 (7.6) (3.4) 7.4 2.8 13.3 0.7 23.3 (1.3) 38.9 0.7

Segment profit (loss) ratio

20 15 10 5 0 -5 4Q 3Q 2Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2007/3 2008/3 2009/3 %

Construction, mining and utility equipment Industrial machinery and others 4Q 3Q 2Q 1Q 2010/3 14.5 13.1 13.5 12.9 10.2 10.3 5.8 11.7 15.6 8.7 15.2 11.4 14.9 9.2 16.1 7.5 14.6 6.1 13.6 9.6 10.4 4.0 (2.4) (4.8) 2.6 7.2 4.7 1.8 7.4 (3.2) 10.2 1.5 Financial Highlights (Consolidated: Quarterly) Financial Highlights (Consolidated: Quarterly) 13 Note: Starting in the fiscal year ended March 31, 2009, Komatsu changed its business segments, and thus some figures of sales by operation and segment information for the fiscal years, ended March 31, 2008 and 2007, are presented after reclassifying according to the new segmentation.

Billions of yen 175 140 105 70 35 0 2007/3 2008/3 2009/3 129.6 59.7 145.7 69.1 Construction, mining and

utility equipment Industrial machinery and others Depreciation and amortization Total 2010/3 119.1 10.5 141.1 4.5 152.8 9.7 162.5 84.6 92.9 3.2 96.1 81.5

Investments in production facilities and others

175 140 105 70 35 0 2007/3 2008/3 2009/3 75.8 9.6 85.4 89.6 Total Billions of yen

Construction, mining and utility equipment Industrial machinery and others 2010/3 85.9 3.7 101.5 8.6 110.1 61.0 2.8 63.8

Investments in rental assets

175 140 105 70 35 0 2007/3 2008/3 2009/3 43.2 0.9 44.1 55.3 0.8 56.1 51.3 1.1 52.4 31.9 0.3 32.3 Total Billions of yen 2010/3 Construction, mining and

utility equipment Industrial machinery and others

Capital Investment

Capital investment and depreciation and amortization

Note: Starting in the fiscal year ended March 31, 2009, Komatsu changed its business segments, and thus some figures for the fiscal years, ended March 31, 2008 and 2007, are presented after reclassifying according to the new segmentation.

Capital Investment

Research and Development

Komatsu is actively engaged in research and development activities for new technologies, new products and new services consistent with its commitment to provide “Quality and Reliability.” Komatsu’s research and development activities are conducted by various groups within Komatsu. With respect to the Construction, Mining and Utility Equipment operating segment, the Research Division and the Development Division as well as development centers that focus on construction, mining and utility equipment are involved in research and development activities. The Industrial Machinery Division and the technology departments of Komatsu’s subsidiaries and affiliates are responsible for research and development activities relating to the Industrial Machinery and Others operating segment.

Policy and Organization

R&D expenses and their ratio to sales amount

Construction, Mining and Utility Equipment

In order to develop construction, mining and utility equipment that can be used in various parts of the world, Komatsu has established research and development centers in Japan and overseas and has encouraged joint research and development programs as well as personnel exchanges. With the goal of assisting its customers improve their productivity, Komatsu’s medium- and long-term research and development objectives are as follows.

< To make advancements in the use of information and communication technology (ICT) >

Komatsu has been engaged in the research and development of ICT, (which enables remote management of equipment by obtaining information regarding machine locations, operating conditions and vehicle health, via state-of-the-art GPS, remote sensing and telecommunication technologies), control technology and artificial intelligence. Equipment with control systems and management systems using these technologies has been rapidly penetrating the construction and mining equipment market. Komatsu is striving to achieve the complete automation of its equipment. Komatsu has made advances in ICT construction to the next stage from the perspective of the customer.

< To increase the environmental friendliness of its products >

Komatsu has made advances in research and development relating to energy conservation, component recycling and reuse, and the evaluation of environmental impact through lifecycle assessment techniques based on the belief that it is possible to reduce environmental impact while achieving economic efficiency. In particular, in recent years, Komatsu’s first priority in research and development has been to develop technology to reduce fuel consumption by its machines, which leads to both CO2 emission reduction and economic benefits to customers. Komatsu introduced the world's first hybrid hydraulic excavator on the Japanese market and then the Chinese market. Komatsu is also making preparations for its diesel-engine machines to meet the stringent clean-air standards phased in by Japan, the US and the EU starting in 2011. Komatsu is continuously seeking to develop new technology for cleaner exhaust gas to meet stricter emissions standards that are to become effective in the future. In addition, Komatsu has worked to improve the working conditions for machine operators by improving safety measures and reducing noise and vibration levels of its machines. In the business of forklift trucks, Komatsu Utility Co., Ltd. has introduced 2-and 3-ton series of diesel engine models on the Japanese and overseas markets.

Industrial Machinery and Others

In the field of large presses, Komatsu has focused on developing functional enhancements of AC Servo press in response to the customers’ growing need for production cost reduction. With respect to sheet-metal machines, Komatsu Industries Corporation developed 100Kw plasma power source having the world's best output, and has released the large TWISTER type TFPL-Blade, capable of high-speed high precision cutting of mild steel up to 50mm thickness. With respect to small AC Servo presses, sheet-metal machines, laser cutting machines, Komatsu Industries has developed KOMTRAX-equipped models designed mainly to monitor their operating conditions after delivery. With respect to machine tools, Komatsu Machinery Corporation has developed the largest crankshaft milling machine type GPM1600E, and also new milling machine, type GPM250B-2, for automobile engine's crankshaft. Komatsu Engineering Corporation has improved the precision of the Chip ID Marker. For the Chip ID Marker, Komatsu has led the world in development and application of the laser irradiation, which allows customers to physically write manufacturing history on the top surface of individual IC chips on the wafer. KELK Ltd. has promoted the research and development of high-performance temperature control equipment, high-performance thermoelectric module heat exchange units and micro thermo-modules for use in optical communications.

Approaches

55 3.5 2.8 2.1 1.4 0.7 0.0 44 33 22 11 0

Percentage of net sales

2007/3 2008/3 2009/3 2010/3 %

2.4 2.2

Billions of yen

Construction, mining and utility equipment Industrial machinery and others 39.7 6.5 44.0 5.6 47.0 6.7 2.7 40.3 6.0 3.2

Note: Starting in the fiscal year ended March 31, 2009, Komatsu changed its business segments, and thus some figures for the fiscal years, ended March 31, 2008 and 2007, are presented after reclassifying according to the new segmentation.

Resear

ch and Development

Consolidated

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

Financial Statements

Consolidated Statements of Income

(April 1, 2009 - March 31, 2010)

Note : * U.S. dollar amounts are converted and rounded off only for reference at a rate of ¥93 = US$1.00, the prevailing rate announced by the Federal Reserve Bank of New York on March 31, 2010.

Financial Statements

16

Millions of yen Millions of *U.S. dollars

Net sales ¥ 1,431,564 $ 15,393

Cost of sales 1,101,559 11,845

Selling, general and

administrative expenses 249,286 2,680

Other operating income (expenses) (13,684) (147)

Operating income 67,035 721

Other income (expenses)

Interest and dividend income 6,158 66

Interest expense (8,502) (91)

Other-net 288 3

Other income (expenses) (2,056) (22)

Income before income taxes and equity

in earnings of affiliated companies 64,979 699

Income taxes 25,364 273

Income before equity in earning of affiliated companies 39,615 426

Equity in earnings of affiliated companies 1,588 17

Net income ¥ 41,203 $ 443

Less net income attributable to

noncontrolling interests (7,644) (82)

Net income attributable to Komatsu Ltd. ¥ 33,559 $ 361

Consolidated Statements of Equity

(April 1, 2009 - March 31, 2010)

Millions of yen

Common

stock surplusCapital

Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Komatsu Ltd. shareholders’ equity Non- controlling

interests Total equity Appropriated for legal reserve Unappro-priated Balance at March 31, 2009 ¥67,870 ¥140,092 ¥28,472 ¥719,222 ¥(105,744) ¥(34,971) ¥814,941 ¥33,393 ¥848,334 Cash dividends (25,180) (25,180) (3,368) (28,548)

Transfer to retained earnings

appropriated for legal reserve 3,511 (3,511) — —

Other changes — 2,531 2,531

Comprehensive income

Net income 33,559 33,559 7,644 41,203

Other comprehensive income (loss), net of tax

Foreign currency translation

adjustments (904) (904) 1,897 993

Net unrealized holding gains on

securities available for sale 5,480 5,480 — 5,480

Pension liability adjustments 4,920 4,920 2 4,922

Net unrealized holding gains on

derivative instruments 614 614 725 1,339

Total comprehensive income 43,669 10,268 53,937

Issuance and exercise of stock

acquisition rights 413 413 413

Purchase of treasury stock (40) (40) (40)

Sales of treasury stock (84) 256 172 172

Financial Statements

Consolidated Balance Sheets

(As of March 31, 2010)

Consolidated Statements of Cash Flows

(April 1, 2009 - March 31, 2010)

Financial Statements

17

Assets

Millions of yen Millions of *U.S. dollars

Current assets ¥ 1,040,121 $ 11,184

Cash and cash equivalents 82,429 886

Time deposits 1,132 12

Trade notes and accounts receivable 447,693 4,814

Inventories 396,416 4,263

Deferred income taxes and other current assets 112,451 1,209

Long-term trade receivables 150,972 1,623

Investments 86,868 934

Property, plant and equipment

– less accumulated depreciation 525,100 5,646

Other assets 155,994 1,677

Total ¥ 1,959,055 $ 21,065

Liabilities and equity

Millions of yen Millions of *U.S. dollars

Current liabilities ¥ 641,746 $ 6,900

Short-term debt (including current

maturities of long-term debt) 229,394 2,467

Trade notes, bills and accounts payable 207,024 2,226

Income taxes payable 22,004 237

Deferred income taxes and other current liabilities 183,324 1,971

Long-term liabilities 440,510 4,737

Total long-term liabilities 1,082,256 11,637

Komatsu Ltd. shareholders’ equity

Common stock 67,870 730

Capital surplus 140,421 1,510

Retained earnings 756,073 8,130

Accumulated other comprehensive income (loss) (95,634) (1,028)

Treasury stock (34,755) (374)

Total Komatsu Ltd. shareholders’ equity 833,975 8,967

Noncontrolling interests 42,824 460

Total equity 876,799 9,428

Total ¥ 1,959,055 $ 21,065

Note : * U.S. dollar amounts are converted and rounded off only for reference at a rate of ¥93 = US$1.00, the prevailing rate announced by the Federal Reserve Bank of New York on March 31, 2010.

Millions of yen Millions of *U.S. dollars

Operating activities

Net income ¥ 41,203 $ 443

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization 91,319 982

Deferred income taxes (7,358) (79)

Net loss (gain) from sale of investment

securities and subsidiaries (679) (7)

Net loss (gain) on sale of property (373) (4)

Loss on disposal of fixed assets 2,244 24

Impairment loss on long-lived assets 3,332 36

Pension and retirement benefits, net (55) (1)

Changes in assets and liabilities:

Decrease (increase) in trade receivables (71,459) (768)

Decrease (increase) in inventories 117,707 1,266

Increase (decrease) in trade payables (8,354) (90)

Increase (decrease) in income taxes payable 11,311 122

Other, net 3,323 36

Net cash provided by (used in) operating activities 182,161 1,959 Investing activities

Capital expenditures (92,401) (994)

Proceeds from sale of property 11,212 121

Proceeds from sale of available for

sale investment securities 1,005 11

Purchases of available for sale investment securities (4,826) (52) Proceeds from sale of subsidiaries and

equity investees, net of cash disposed 661 7

Acquisition of subsidiaries and equity

investees, net of cash acquired 1,107 12

Collection of loan receivables 11,559 124

Disbursement of loan receivables (667) (7)

Decrease (increase) in time deposits (617) (7)

Net cash provided (used in) investing activities (72,967) (785)

Financing activities

Proceeds from long-term debt 155,641 1,674

Repayments on long-term debt (73,052) (786)

Increase (decrease) in short-term debt, net (139,067) (1,495)

Repayments of capital lease obligations (31,240) (336)

Sale purchase of treasury stock, net 132 1

Dividends paid (25,180) (271)

Other, net (3,597) (39)

Net cash provided by (used in) financing activities (116,363) (1,251) Effect of exchange rate change on cash

and cash equivalents (965) (10)

Net increase (decrease) in cash and

cash equivalents (8,134) (87)

Cash and cash equivalents, beginning of year 90,563 974

Consolidated

Financial Statements

Geographic Information

Net sales recognized by geographic origin and property, plant and equipment Millions of yen

Millions of yen

Notes : 1. Overseas sales represent the sales of the Company and its consolidated subsidiaries to areas other than Japan. 2. Area segments are separated by the geographic proximity.

3. Main countries or areas of each segment above are as follows:

a) Americas : North America and Latin America b) Europe and CIS : Germany, U.K. and Russia c) Other : China, Oceania, Southeast Asia, Middle East and Africa

Overseas sales Millions of yen

Business Segment Information

(April 1, 2009 - March 31, 2010)

Supplemental Information

The following information is disclosed in the light of the disclosure requirement of Japanese Securities and Exchange Law. Information by region

Information by Operating Segment

Millions of yen

Note : Sales amount of each region includes inter-region transactions.

Note : No individual country within Europe or other areas had a material impact on net sales or property, plant and equipment. There were no sales to a single major external customer for the year ended March 31, 2010.

Financial Statements

18

Japan U.S.A. Europe and CIS Others Total

Net sales ¥ 498,568 ¥ 311,170 ¥ 141,510 ¥ 480,316 ¥ 1,431,564

Property, plant and equipment 380,592 62,637 35,811 46,060 525,100

Japan Americas Europe and CIS Others Total Corporate and_elimination Consolidated

Net sales ¥ 716,719 ¥ 347,717 ¥ 162,610 ¥ 490,256 ¥ 1,717,302 ¥ (285,738) ¥ 1,431,564

Segment profit (19,783) 33,982 10,460 60,151 84,810 (4,091) 80,719

Identifiable assets 1,129,391 417,423 196,469 482,424 2,225,707 (266,652) 1,959,055

Americas Europe and CIS Others Total

Overseas sales ¥ 323,984 ¥ 127,377 ¥ 656,390 ¥ 1,107,751

Consolidated net sales — — — 1,431,564

Ratio of overseas sales to consolidated net sales (%) 22.7 8.9 45.8 77.4

Net sales

Construction, mining and utility equipment ¥ 1,271,265

Industrial machinery and others 178,608

Elimination (18,309)

Consolidated ¥ 1,431,564

Segment profit

Construction, mining and utility equipment ¥ 83,061

Industrial machinery and others 2,998

Total 86,059

Corporate expenses and elimination (5,340)

Consolidated segment profit 80,719

Other operating income (expenses) (13,684)

Operating income 67,035

Interest and dividend income 6,158

Interest expense (8,502)

Other-net 228

Income before income taxes, minority

interests and equity in earnings of affiliated companies ¥ 64,979

Identifiable assets

Construction, mining and utility equipment ¥ 1,682,542

Industrial machinery and others 207,551

Corporate assets and elimination 68,962

Consolidated ¥ 1,959,055

Depreciation and amortization

Construction, mining and utility equipment ¥ 82,508

Industrial machinery and others 7,707

Consolidated ¥ 90,215

Capital investment

Construction, mining and utility equipment ¥ 92,979

Industrial machinery and others 3,212

Komatsu established in 1921, is a diversified provider of industrial-use products and services. While remaining an international leader in the field of construction and mining equipment, the Komatsu Group engages in other businesses, such as utility equipment (compact machines), forest machines, industrial machinery, logistics and other solutions-based operations.

By upholding "Quality and Reliability" as the most important management policy, Komatsu is resolutely committed to providing safe, innovative products and services that best meet the needs and expectations of its customers around the world.

Categories Main products

■ Construction and Hydraulic excavators, Wheel loaders, Bulldozers, Motor graders, Dump trucks,

　 Mining Equipment Articulated dump trucks

■ Utility Equipment Mini hydraulic excavators, Skid steer loaders, Backhoe loaders, Mini wheel loaders,

　 (Compact Machines) Forklift trucks

■ Forest Machines Harvesters, Forwarders, Feller-bunchers

■ Recycling Equipment Mobile crushers, Mobile soil stabilizers, Mobile tub grinders, Mobile screens

■ Other Specific Equipment Demolition, Slag handling, Airport, etc.

■ Tunneling Machines Shield machines, Tunnel boring machines, Small-diameter pipe jacking machines("Ironmole")

■ Engines, Components Diesel engines, Hydraulic equipment, Casting products

　 and Casting Products

■ Metal Forging and Large presses, Small and medium-sized presses, Forging presses, Servo presses

　 Stamping Presses

■ Sheet-Metal Machines Press brakes, Shears, Laser cutting machines, Fine plasma cutting machines

■ Machine Tools Crankshaft millers, Transfer machines, Machining centers, Wire saws

■ Others Defense-related equipment, Thermoelectric modules,

Temperature-control equipment for semiconductor manufacturing, Excimer lasers Packing and transport, Prefabricated commercial-use structures, Engineering, CSS-Net

Products and Applications

Pr

oducts and Applications

Products and Applications

Pr

oducts and Applications

20

Construction and Mining Equipment

Notes: 1. These products are manufactured at Komatsu and its subsidiaries all around the world. Please refer to the production items for each company on pages 28-31. 2. The machines shown are examples of typical models. Some machines are available only in particular countries or regions.

• Hydraulic excavators

Suitable for excavating tightly packed earth and used for a wide range of land excavation such as civil engineering, pipe jacking and mining. Designed particularly for work in confined zones, minimal rear-swing radius and small rear-swing radius models are also available for wheel-type hydraulic excavators.

[Product Range] PC01 · Bucket capacity : 0.008m3 · Operating weight : 300kg PC8000 · Bucket capacity : 42m3 · Operating weight : 720,000kg

Hydraulic excavator [PC200] Super-large hydraulic

excavator [PC2000]

Minimal rear-swing radius hydraulic excavator [PC138US]

• Wheel loaders

Used for loading excavated earth and rocks, ranging from small wheel loaders for civil engineering to super-large ones for mining.

[Product Range] WA10 · Bucket capacity : 0.16m3 · Operating weight : 1,065kg WA1200 · Bucket capacity : 20m3 · Operating weight : 210,200kg

Wheel loader [WA600] Wheel loader [WA900]

Wheel loader [WA320]

Wheel loader [WA40]

• Bulldozers

Designed for excavating earth and hauling excavated rocks as well as capable for leveling earth.

• Motor graders • Vibratory rollers

Motor graders are designed for preparing the substrate of roads and other flat earth as well as leveling aggregate.

Vibratory rollers are used for compacting roadbed.

[Product Range]

D21A

· Blade capacity : 0.57m3

· Operating weight : 3,940kg

D575A Super Dozer

· Blade capacity : 69m3

· Operating weight : 152,600kg

Bulldozer [D155AX]

Bulldozer [D51PX] Bulldozer [D475A] Motor grader [GD655]

Wheeled hydraulic excavator

Products and Applications

Pr

oducts and Applications

21

Utility Equipment (Compact Machines)

Forest Machines

Notes: 1. These products are manufactured at Komatsu and its subsidiaries all around the world. Please refer to the production items for each company on pages 28-31. 2. The machines shown are examples of typical models. Some machines are available only in particular countries or regions.

Super-large dump truck

[860E]

Dump truck [HD785] Articulated dump truck [HM300] Crawler carrier [CD110R]

[Product Range] HD255 · MAX. payload : 25,000kg 960E · MAX. payload : 327,000kg • Dump trucks

• Articulated dump trucks • Crawler carriers

Designed for hauling construction materials and excavated earth and rocks, they range from 25ton-class mechanical-drive dump trucks used for quarrying to 300 ton-class electrical-drive dump trucks for mining. In addition to rigid dump trucks, articulated dump trucks and crawler carriers are available, which feature excellent performance of low ground pressure on rough roads.

Micro excavator [PC05] Minimal rear-swing radius mini hydraulic excavator

[PC30MR]

Large internal combustion forklift truck [EX50 Series]

• Mini excavators

Mini excavators can be used in various ways such as digging and loading earth into a dump truck. Its tight swing radius is best suited for working in a confined area.

• Skid steer loaders

Skid steer loaders can dig and move landscaping and building materials, clean roads, grind asphalt, clear the road from snow and serve many other purposes.

• Backhoe loaders

Backhoe loaders are versatile, multipurpose machine that can be used as an excavator and as a loader.

• Mini wheel loaders

Mini wheel loaders can be used in snow removal, agriculture and farming.

• Forklift trucks

Designed for use in material handling. Internal combustion and electric forklift trucks are available.

Forwarder

Feller-buncher Excavator for harvester

application Harvester

• Harvesters

Harvesters are either wheeled or tracked, and fitted with a harvester head capable of delimbing, measuring, and felling the trees. The head has complex features, such as grasping, feeding, measuring and cutting the trees.

• Forwarders

Forwarders carry logs from the stump to a roadside landing.

• Feller-bunchers

Feller-bunchers are used to fell the trees fast and efficiently.

Forest machines are heavy machines typically used in felling trees or machines that haul the logs to a roadside landing.

Skid steer loader

[SK714]

Mini wheel loader

[WA30]

Backhoe loader

[WB97R]

Internal combustion forklift truck

[AX50/BX50 Series]

Electric forklift truck

[Hybrid electric forklift truck AE50 Series]

Products and Applications

Pr

oducts and Applications

22

Notes: 1. These products are manufactured at Komatsu and its subsidiaries all around the world. Please refer to the production items for each company on pages 28-31. 2. The machines shown are examples of typical models. Some machines are available only in particular countries or regions.

• Diesel engines

Diesel engines for power generators, trains, ships, construction equipment and industrial machinery.

Offers the frontier engine technology “ecot3” compliant to Tier 3 emission standards.

• Hydraulic equipment • Casting products

Components for construction and mining equipment, such as transmissions, hydraulic cylinders and axles, and steel castings and cast iron products made with technological expertise.

“ecot3” engine (Non-EGR*-type)

[SAA6D107E]

“ecot3” engine (EGR*-type)

[SAA6D140E]

Other Specific Equipment

Recycling Equipment

Tunneling Machines

Engines, Components and Casting Products

Develops and sells application-specific equipment and new products tailored for a variety of work undertaken by customers, such as equipment for demolition, metal recycle and slag handling.

• Demolition

Super-long boom and arm for demolition

• Metal recycle Magnet and lifting cab

• Shield machines

• Tunnel boring machines (TBMs)

• Small-diameter pipe jacking machines (“Ironmole”)

Designed for excavating tunnels for roadways, railways and combined use. “Ironmole” is designed for excavating earth and burying drain and other pipes by the non-open excavation method.

Ironmole Slurry shield

• Mobile crushers • Mobile soil recyclers

• Mobile wood tub grinders • Mobile screens

Designed for on-site recycling of construction waste such as concrete debris, stones, damaged soil and felled trees for reuse as construction materials.

Mobile crushers are also used for crushing stones at quarry sites.

Mobile crusher [BR580JG] On-site recycling method

[On-site Recycling Method]

The on-site recycling method enables reuse and recycle at construction sites by turning trees into chips for mulching, and crushing stones and improving soil for reuse as roadbed material.

The combined use of mobile crushers and mobile screens makes a flexible and high-performance screening system.

Mobile wood tub grinder

[BR200T]

Mobile soil recycler

[BZ210]

*EGR: Exhaust Gas Recirculation

• Steel plant Radio control and heat resistance spec

[D155AX]

• General Construction Super-long front

• Airport

Products and Applications

Pr

oducts and Applications

23

Metal Forging and Stamping Presses

• Large presses

Designed for use in forming automobile roofs and doors. Manufactures AC Servo presses and mechanical presses. Large presses are represented by a tandem press of wide applications and a transfer press of high productivity.

• Small and medium-sized presses, Forging presses

Designed for use in sheet metal forming and casting. High-precision presses featuring the AC Servo motor drive are also available.

Large AC Servo press system

Sheet-Metal Machines

Offerings include shears to cut sheet metals, press brakes to shape sheet metals as well as fine plasma and laser cutting machines to curve-cut sheet metals.

Press brake [PBZ Series] Komatsu Industries Corporation

3D Laser cutting machine

[TLM Series] Komatsu NTC Ltd.

Wire saw [PV Series] Komatsu NTC Ltd.

Crankshaft miller [GPM Series] Komatsu Machinery Corporation

Others

Machine Tools

Offerings include transfer machines, crankshaft millers and grinding machines to manufacture engine parts, machining centers, wire saws to slice silicon ingots, and components for liquid crystal manufacturing equipment.

Notes: 1. The company name on the photo shows the manufacturer of the product.

2. The machines shown are examples of typical models. Some machines are available only in particular countries or regions.

• Defense-related equipment

Manufactures armored vehicles and ammunitions for the Ministry of Defense, Japan.

• Excimer lasers

Light sources for leading-edge semi con ductor lithography tools that require high resolution.

• Engineering

• Thermoelectric modules

Thermoelectric semiconductor devices capable of high-precision temperature control by switching polarity for heating and cooling. Used for temperature control of laser diodes in fiber optic communication networks.

• Packing and transport

• CSS-Net

CSS-Net offers electronic parts books, service manuals and other materials which are needed for after-sale services, such as ordering spare parts and requesting repairs. Designed to share information among Komatsu Group companies on the Internet, this service takes advantage of cloud computing. This service is also available for customers.

• Temperature-control equipment for semiconductor manufacturing

Indispensable high-precision equipment designed for use in a diverse range of semiconductor manufactur-ing processes. Contributes to improved productivity of semiconductor manufacturing equipment as well as enhanced performance of semiconductors.

• Commercial-Use Prefabricated Structures

Sells and leases commercial-use prefabricated struc-tures which offer a short construction period and low cost, and also handles temporary shelters for people affected by disasters.

Light armored vehicle

DI-Water Heater

KELK Ltd.

Excimer laser

GIGAPHOTON INC. _{Prefabricated}

commercial-use structures and unit methods Komatsu House Ltd. Thermoelectric modules KELK Ltd.

Welding robot system

Komatsu Engineering Corp.

CSS Portal

Parts Book

Shop Manual

Full Web Djvu

Hybrid AC Servo press

[H2W Series]

Products and Applications

Pr

oducts and Applications

24

• Availability

• Productivity $/m3, m3/H, Ton/H • Fuel consumption • Effective machine usage

• Maintenance method, Overhaul planning • Preventive maintenance • Operator training • Quick technical solutions • Component life, Reman • Parts availability • Strategy & policy • Cost reduction • New model development • Fleet organization

• Safety and environmental conservation

Centralization of information Common/ Prompt/ Correct/ Communication Komatsu Group Agenda, Evaluation Distributor Customer Solutions Top JoiFUL Management JoiFUL Jobsite JoiFUL

Basic Concepts of JoiFUL

JoiFUL Program:

Working Together for Success

For large-scale mining operations, Komatsu offers the JoiFUL (Joint Follow-Up Log) program, in which Komatsu Group companies, distributors and customers regularly meet to discuss ways of improving operating efficiency and reducing operating costs of deployed machines. In the meetings, all parties identify problems, define solutions, set the deadlines for follow-up work, and confirm the results mutually for successful mining operations.

In the construction and mining equipment business, Komatsu is not only engaged in the manufacture and sale of new equipment around the world, but also promoting various types of business that contribute to productivity enhancements and problem solutions on the part of its customers.

KOMTRAX (Komatsu Machine Tracking System) for construction equipment KOMTRAX is a machine tracking system whose terminals are installed on construction equipment to transmit information concerning the location, cumulative hours of operation and operating condition of vehicles.

By proactively using information gained from KOMTRAX-equipped machines, Komatsu is making a contribution in respect to after-sale support activities for our customers' machines throughout their lifetime, resulting in enhanced availability and lowered maintenance cost.

Utilization of Information and Communication Technology

■ How KOMTRAX works ■ Komatsu machine management system : KOMTRAX Plus & WebCARE

KOMTRAX Plus machine management system for mines

KOMTRAX Plus is a fleet management system for large equipment for use in mining, which enables to obtain detailed information concerning the conditions of machines via satellite communications. Komatsu and distributors can analyze “vehicle health” and other operating conditions and provide the information to jobsite using the Internet from a remote location on a near-real time basis. As a result, customers can receive vehicle maintenance on an appropriate timing to avoid major technical trouble, and thus reduce their maintenance expenses and downtime costs.

Comprehensive Compensation Plan

“Komatsu All Support”*

Komatsu provides the comprehensive compensation plan “Komatsu All Support” to customers. This packaged plan not only sets a fixed monthly fee for maintenance expenses through the repair and maintenance contract but also supports customers against such risks as theft and accidents, thus enabling them to reduce their machine management costs.

Note: * “Komatsu All Support” is provided only in Japan.

Web Application Server Machine Data Server

KOMTRAX Terminal GPS antenna KOMTRAX Controller Controller A Controller B Communication antenna Modem

Machine _{Customer / Distributor} Communication Satellite / Mobile Phone GPS

Internet

KOMTRAX Plus

On-Boad system Common in all machines

Communication

Satellite & PC Download

Support

Parts Supply & Maintenance based on R&M contract Component Supplier Gathering machine health data Machine information via Internet Distributor Komatsu Support Center

Strage for Repair Data WebCARE Database Product Design Manufacturing Jobsite

Products and Applications

Pr

oducts and Applications

25

KOMTRAX Error List by machine

KOMTRAX

Top Page

Base Information Service History

Parts Order list Parts Book

Shop Manual

Operation Manual Show Repair Method Original Quality Info.

Service News Error Code

CSS Portal

Model/Serial number/Error code/ Key word

Distributor (Parts and Service)

· Parts Book · Shop Manual · Operation Manual · Service News · Machine information Trouble-shooting Quality Information CSS-Net Parts System Spec. Information Spec. Information Machine DB Failure CSS Portal

CSS Portal

The CSS Portal supports the performance of parts and service people by connecting parts books, service manuals, the health monitoring systems (KOMTRAX/KOMTRAX Plus) and quality information organically as a strong tool of after market area.

■ How Komatsu’s Autonomous Haulage System Works

Autonomous Haulage System (AHS)

AHS is a high-speed fleet management system based on 930E super-large dump trucks. AHS makes contributions to mining operation by improving its safety and productivity, while enhancing the operating rate and reliability of dump trucks. As a result, it is able to reduce owning and operating costs in total. Dump trucks, equipped with a high-precision GPS, an obstacle detection sensor and a wireless network system made by Modular Mining Systems, Inc., are controlled from the fleet control operations center for unmanned hauling.

Information on target course and speed is sent from the fleet management system to dump trucks via the wireless network system, and dump trucks run on the target course at the target speed by assessing their position via GPS.

Loading machines, such as hydraulic excavators and wheel loaders, are also equipped with GPS for the fleet management system to determine the position of their buckets, and the system automatically guides the dump trucks to the designated loading position. The system also sends information concerning a route to the unloading site to ensure safe and precise unloading.

The fleet management system also prevents collisions between dump trucks and manned machines, such as service vehicles, bulldozers and motor graders, working inside the mine. If another vehicle or person should come close to the AHS-controlled area, the obstacle detection sensor of dump trucks detects it and the concerned dump truck will make an emergency stop to ensure safety.

Holding Auctions for Used Equipment

Komatsu, through Komatsu Used Equipment Corp. (KUEC), is aggressively engaging in the used equipment business as part of the life cycle business of construction equipment. Komatsu Used Equipment holds auctions at KUEC yards which represent Japan’s largest

scale. The company also holds Internet auctions on its URECA membership website, providing convenience for many customers.

Used equipment auction held by KUEC

Blade Control System Based on 3D Position Information Komatsu’s blade control system measures the position of blades of bulldozers and motor graders as 3D information to the millimeter level by using Global Navigation Satellite Systems and TS (Total Station) type. This system compares the position information of blades and 3D construction design data, and automatically controls the blades precisely according to the design, thereby eliminating the need for setting up construction guide poles, surveying and subsequent modification work. Because this system improves the

operating rate of construction equipment, it shortens the construction period substantially, thus reducing CO2 emissions as well. Jobsite safety is also enhanced with no need for surveying and resetting up guide poles while machines are working.

Fleet Control GPS Satellite Loading Site Hauling Road Dumping Site Safety (Automatically stops when detecting obstacle)