Komatsu Limited
Annual Report 2015

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KOMATSU REPORT 2015 C1 KOMATSU REPORT 2015 For the year ended March 31, 2015 WITH A FUTURE KOMATSU REPORT 2015 C O N T E N T S 01 03 To All Our Stakeholders About KOMATSU Report KOMATSU INNOVATION FOR THE FUTURE 04 08 Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION WITH A FUTURE 11 13 15 Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT 17 Interview with the President SUSTAINABLE GROWTH WITH THE WORLD 20 22 25 28 Corporate Governance Risk Management Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE 30 32 34 Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others INFORMATION 35 Corporate Information KOMATSU REPORT 2015 KOMATSU REPORT 2015 Management Management To All Our Stakeholders To All Our Stakeholders KOMATSU REPORT 2015 To All Our Stakeholders 01 Performance Performance Outlook Outlook To All Our Stakeholders Kunio Noji, Chairman of the Board (left) and Tetsuji Ohashi, President (right) Kunio Noji, Chairman of the Board (left) and Tetsuji Ohashi, President (right) Performance Performance For the fiscal year under review (April 1, 2014 – March 31, 2015), consolidated net sales totaled JPY 1,978.6 For the fiscal year under review (April 1, 2014 – March 31, 2015), consolidated net sales totaled JPY 1,978.6 billion, up 1.3% from the previous fiscal year. Operating income increased by 0.7% to JPY 242.0 billion. In billion, up 1.3% from the previous fiscal year. Operating income increased by 0.7% to JPY 242.0 billion. In the construction, mining and utility equipment business, sales remained about flat from the previous fiscal the construction, mining and utility equipment business, sales remained about flat from the previous fiscal year, as demand for construction equipment remained steady in advanced countries, in North America and year, as demand for construction equipment remained steady in advanced countries, in North America and Europe, and the Japanese yen further depreciated against the U.S. dollar, euro and renminbi. This Europe, and the Japanese yen further depreciated against the U.S. dollar, euro and renminbi. This compensated for a decline in volume of sales resulting from a slack demand for construction equipment in compensated for a decline in volume of sales resulting from a slack demand for construction equipment in emerging countries and for mining equipment. In the industrial machinery and others business, sales emerging countries and for mining equipment. In the industrial machinery and others business, sales increased from the previous fiscal year, supported by good sales of presses and other forging machines, increased from the previous fiscal year, supported by good sales of presses and other forging machines, centering on capital investment, especially in the automobile manufacturing industry. centering on capital investment, especially in the automobile manufacturing industry. Consolidated Financial Results for Fiscal 2014 Consolidated Financial Results for Fiscal 2014 Fiscal year ended March 31, 2015 (FY2014) Fiscal year ended March 31, 2015 (FY2014) Projections for Fiscal 2015 Projections for Fiscal 2015 (Announced on April 27, 2015) (Announced on April 27, 2015) Fiscal year ending March 31, 2016 (FY2015) Fiscal year ending March 31, 2016 (FY2015) Billions of JPY Billions of JPY (except for (except for operating income operating income ratio) ratio) Net sales Net sales Operating income Operating income Operating income Operating income ratio ratio Income before Income before income taxes and income taxes and equity in earnings equity in earnings of affiliated of affiliated companies companies Net income Net income attributable to attributable to Komatsu Ltd. Komatsu Ltd. Results for the Results for the year year Change Change (FY2014/FY2013) (FY2014/FY2013) ¥1,978.6 ¥1,978.6 242.0 242.0 12.2% 12.2% +1.3% +1.3% +0.7% +0.7% -0.1pt -0.1pt 236.0 236.0 -2.5% -2.5% 154.0 154.0 -3.5% -3.5% Billions of JPY Billions of JPY (except for (except for operating income operating income ratio) ratio) Net sales Net sales Operating income Operating income Operating income Operating income ratio ratio Income before Income before income taxes and income taxes and equity in earnings equity in earnings of affiliated of affiliated companies companies Net income Net income attributable to attributable to Komatsu Ltd. Komatsu Ltd. FY2015 FY2015 Change Change (FY2015/FY2014) (FY2015/FY2014) ¥1,880.0 ¥1,880.0 221.0 221.0 11.8% 11.8% -5.0% -5.0% -8.7% -8.7% -0.4pts -0.4pts 214.0 214.0 -9.4% -9.4% 138.0 138.0 -10.4% -10.4% Note: Figures are rounded down to the hundred-million JPY. Note: Figures are rounded down to the hundred-million JPY. Note: Figures are rounded down to the hundred-million JPY. Note: Figures are rounded down to the hundred-million JPY. Annual dividends per share (JPY) Annual dividends per share (JPY) ● Concerning cash dividends to our shareholders, we continue to ● Concerning cash dividends to our shareholders, we continue to maintain the policy of redistributing profits by considering maintain the policy of redistributing profits by considering consolidated business results to strive to continue stable consolidated business results to strive to continue stable dividends. dividends. ● We have set the goal of a consolidated payout ratio of 30% or ● We have set the goal of a consolidated payout ratio of 30% or higher, and maintain the policy of not decreasing dividends as higher, and maintain the policy of not decreasing dividends as long as a consolidated payout ratio does not surpass 50%. long as a consolidated payout ratio does not surpass 50%. Outlook Outlook In next fiscal year (April 1, 2015 - March 31, 2016), we expect to meet a market environment which is more In next fiscal year (April 1, 2015 - March 31, 2016), we expect to meet a market environment which is more challenging than FY2014. Such a market environment is attributable to a drastic decline of demand in China challenging than FY2014. Such a market environment is attributable to a drastic decline of demand in China and other emerging countries, coupled with a further drop in demand for mining equipment resulting from and other emerging countries, coupled with a further drop in demand for mining equipment resulting from the conservative mindset of mining customers for capital investment, against the backdrop of sluggish the conservative mindset of mining customers for capital investment, against the backdrop of sluggish commodity prices. However, our belief remains unchanged in that demand for construction and mining commodity prices. However, our belief remains unchanged in that demand for construction and mining equipment will grow in the long range against the background of an increase in the global population and equipment will grow in the long range against the background of an increase in the global population and urbanization rate. We are determined to continue to not only promote the business model, which looks into urbanization rate. We are determined to continue to not only promote the business model, which looks into comprehensive merits for customers, but also to strengthen our operations capable of flexibly meeting comprehensive merits for customers, but also to strengthen our operations capable of flexibly meeting changes in the business environment. changes in the business environment. While further strengthening our corporate governance, we will also ensure all employees share The KOMATSU While further strengthening our corporate governance, we will also ensure all employees share The KOMATSU Way and continue to constantly address the fundamentals of safety, environmental conservation and Way and continue to constantly address the fundamentals of safety, environmental conservation and compliance. We will also facilitate both the development of corporate strength and the achievement of social compliance. We will also facilitate both the development of corporate strength and the achievement of social On behalf of the members of the Board, we would like to extend our sincere appreciation to our stakeholders On behalf of the members of the Board, we would like to extend our sincere appreciation to our stakeholders responsibility in a well-balanced manner. responsibility in a well-balanced manner. around the world for their support around the world for their support July 2015 July 2015 Kunio Noji, Kunio Noji, Chairman of the Board Chairman of the Board Tetsuji Ohashi, Tetsuji Ohashi, President President INFORMATION INFORMATION Corporate Information Corporate Information Download PDF Download PDF Site Map Site Map For further details, please click here For further details, please click here Financial conditions: Financial conditions: Securities Report Securities Report Social activities: Social activities: CSR report CSR report Environmental performance: Environmental performance: Environmental Report Environmental Report Corporate Governance Corporate Governance Risk Management Risk Management Environmental Environmental Conservation Efforts Conservation Efforts Corporate Social Corporate Social Responsibility Efforts Responsibility Efforts FY2014 PERFORMANCE FY2014 PERFORMANCE Consolidated Results / Consolidated Results / Five-Year Summary Five-Year Summary Construction, Mining and Construction, Mining and Utility Equipment Utility Equipment Industrial Machinery and Industrial Machinery and Others Others STRATEGIES STRATEGIES ESG ESG Growth Strategies Based Growth Strategies Based on Innovation on Innovation Introduction to Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young Jobsite Report 1: Young workers being responsible workers being responsible for ICT-intensive for ICT-intensive construction construction Jobsite Report 2: Together Jobsite Report 2: Together with veteran operators with veteran operators Jobsite Report 3: Looking Jobsite Report 3: Looking forward to the future of forward to the future of intelligent Machine Control intelligent Machine Control equipment equipment MANAGEMENT MANAGEMENT To All Our Stakeholders To All Our Stakeholders Interview with the Interview with the President President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Management To All Our Stakeholders Performance Outlook Kunio Noji, Chairman of the Board (left) and Tetsuji Ohashi, President (right) Performance For the fiscal year under review (April 1, 2014 – March 31, 2015), consolidated net sales totaled JPY 1,978.6 billion, up 1.3% from the previous fiscal year. Operating income increased by 0.7% to JPY 242.0 billion. In the construction, mining and utility equipment business, sales remained about flat from the previous fiscal year, as demand for construction equipment remained steady in advanced countries, in North America and Europe, and the Japanese yen further depreciated against the U.S. dollar, euro and renminbi. This compensated for a decline in volume of sales resulting from a slack demand for construction equipment in emerging countries and for mining equipment. In the industrial machinery and others business, sales increased from the previous fiscal year, supported by good sales of presses and other forging machines, centering on capital investment, especially in the automobile manufacturing industry. Consolidated Financial Results for Fiscal 2014 Projections for Fiscal 2015 (Announced on April 27, 2015) Fiscal year ended March 31, 2015 (FY2014) Fiscal year ending March 31, 2016 (FY2015) operating income year (FY2014/FY2013) operating income Results for the Change FY2015 Change (FY2015/FY2014) ¥1,978.6 +1.3% Net sales ¥1,880.0 Operating income 242.0 +0.7% Operating income 221.0 -5.0% -8.7% 12.2% -0.1pt 11.8% -0.4pts 236.0 -2.5% equity in earnings 214.0 -9.4% Billions of JPY (except for ratio) Net sales Operating income ratio Income before income taxes and equity in earnings of affiliated companies KOMATSU REPORT 2015 Net income attributable to Komatsu Ltd. Billions of JPY (except for ratio) Operating income ratio Income before income taxes and of affiliated companies Net income To All Our Stakeholders 02 154.0 -3.5% attributable to 138.0 -10.4% Komatsu Ltd. Note: Figures are rounded down to the hundred-million JPY. Note: Figures are rounded down to the hundred-million JPY. Annual dividends per share (JPY) ● Concerning cash dividends to our shareholders, we continue to maintain the policy of redistributing profits by considering consolidated business results to strive to continue stable dividends. ● We have set the goal of a consolidated payout ratio of 30% or higher, and maintain the policy of not decreasing dividends as long as a consolidated payout ratio does not surpass 50%. Outlook In next fiscal year (April 1, 2015 - March 31, 2016), we expect to meet a market environment which is more challenging than FY2014. Such a market environment is attributable to a drastic decline of demand in China and other emerging countries, coupled with a further drop in demand for mining equipment resulting from the conservative mindset of mining customers for capital investment, against the backdrop of sluggish commodity prices. However, our belief remains unchanged in that demand for construction and mining equipment will grow in the long range against the background of an increase in the global population and urbanization rate. We are determined to continue to not only promote the business model, which looks into comprehensive merits for customers, but also to strengthen our operations capable of flexibly meeting changes in the business environment. While further strengthening our corporate governance, we will also ensure all employees share The KOMATSU Way and continue to constantly address the fundamentals of safety, environmental conservation and compliance. We will also facilitate both the development of corporate strength and the achievement of social responsibility in a well-balanced manner. On behalf of the members of the Board, we would like to extend our sincere appreciation to our stakeholders around the world for their support July 2015 Kunio Noji, Chairman of the Board Tetsuji Ohashi, President STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 About KOMATSU Report About KOMATSU Report 03 About KOMATSU Report We at Komatsu Ltd. prepare KOMATSU REPORT annually by focusing our attention on the most important information and expressing it in a concise manner. Concerning financial conditions, environmental conservation and corporate social responsibility, we separately prepare the respective reports in more detail and disclose information therein. Organization of Komatsu’s Annual Reports Note: KOMATSU REPORT, Annual Securities Report, CSR Report and Environmental Report, in both Japanese and English, are uploaded on Komatsu’s website. Reporting Period： April 1, 2014 – March 31, 2015 Unless otherwise indicated, all figures in this REPORT represent those for FY2014 ended March 31, 2015, namely from April 1, 2014 to March 31, 2015. Cautionary Statement This Report contains forward-looking statements that reflect management's views and assumptions in the light of information currently available with respect to certain future events, including financial position, operating results and business strategies. These statements can be identified by the use of terms, such as “will,” “believes,” “should,” “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 Report, 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 Komatsu's principal products, owing to changes in the economic conditions in Komatsu’s principal markets; changes in foreign exchange rates or the impact of increased competition; unanticipated costs or delays encountered in achieving Komatsu's objectives with respect to globalized product sourcing and new information technology tools; uncertainties as to the results of Komatsu'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. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 Strategies Strategies Growth Strategies Based on Innovation Growth Strategies Based on Innovation KOMATSU REPORT 2015 Strategies Growth Strategies Based on Innovation Sustainable Growth and Innovation Sustainable Growth and Innovation DANTOTSU (Unrivaled) Products DANTOTSU (Unrivaled) Products KOMATSU REPORT 2015 DANTOTSU Service DANTOTSU Solutions Strategies DANTOTSU Service Growth Strategies Based on Innovation DANTOTSU Solutions Sustainable Growth and Innovation Solutions to Social Problems and Sustainable Growth Solutions to Social Problems and Sustainable Growth To Achieve Innovation DANTOTSU (Unrivaled) Products To Achieve Innovation DANTOTSU Service DANTOTSU Solutions Solutions to Social Problems and Sustainable Growth To Achieve Innovation KOMATSU REPORT 2015 Growth Strategies Based on Innovation 04 KOMATSU INNOVATION FOR THE FUTURE Sustainable Growth and Innovation DANTOTSU (Unrivaled) Products DANTOTSU Service DANTOTSU Solutions Growth Strategies Based on Innovation Solutions to Social Problems and Sustainable Growth To Achieve Innovation Sustainable Growth and Innovation Sustainable Growth and Innovation Sustainable Growth and Innovation Tetsuji Ohashi, Tetsuji Ohashi, President President Tetsuji Ohashi, President Tetsuji Ohashi, President We have placed the “Growth Strategies Based on Innovation” first among our focused efforts in the “Together We have placed the “Growth Strategies Based on Innovation” first among our focused efforts in the “Together We have placed the “Growth Strategies Based on Innovation” first among our focused efforts in the “Together We Innovate GEMBA Worldwide” mid-range management plan scheduled to be completed in March, 2016. We Innovate GEMBA Worldwide” mid-range management plan scheduled to be completed in March, 2016. Sustainable Growth and Innovation We Innovate GEMBA Worldwide” mid-range management plan scheduled to be completed in March, 2016. We define innovation as to create and offer new value designed to streamline our customers' business in the We define innovation as to create and offer new value designed to streamline our customers' business in the We define innovation as to create and offer new value designed to streamline our customers' business in the We have placed the “Growth Strategies Based on Innovation” first among our focused efforts in the “Together domain of solutions by getting deeply involved in their jobsite operations in collaboration with our distributors domain of solutions by getting deeply involved in their jobsite operations in collaboration with our distributors We Innovate GEMBA Worldwide” mid-range management plan scheduled to be completed in March, 2016. domain of solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, in addition to the domains of products and service. Through innovation, we are working to and suppliers, in addition to the domains of products and service. Through innovation, we are working to and suppliers, in addition to the domains of products and service. Through innovation, we are working to expand our business domains for further growth. We define innovation as to create and offer new value designed to streamline our customers' business in the expand our business domains for further growth. expand our business domains for further growth. domain of solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, in addition to the domains of products and service. Through innovation, we are working to expand our business domains for further growth. DANTOTSU (Unrivaled) Products DANTOTSU (Unrivaled) Products DANTOTSU (Unrivaled) Products DANTOTSU (Unrivaled) Products As a manufacturer of construction and mining equipment, Komatsu has been committed to providing As a manufacturer of construction and mining equipment, Komatsu has been committed to providing As a manufacturer of construction and mining equipment, Komatsu has been committed to providing As a manufacturer of construction and mining equipment, Komatsu has been committed to providing products with features in safety, environmental friendliness, ICT and fuel economy (work efficiency), with products with features in safety, environmental friendliness, ICT and fuel economy (work efficiency), with products with features in safety, environmental friendliness, ICT and fuel economy (work efficiency), with products with features in safety, environmental friendliness, ICT and fuel economy (work efficiency), with which no competitors can catch up in a few years. By taking the technological advantage of in-house which no competitors can catch up in a few years. By taking the technological advantage of in-house which no competitors can catch up in a few years. By taking the technological advantage of in-house which no competitors can catch up in a few years. By taking the technological advantage of in-house development and production of key components and through seamless teamwork among our development, development and production of key components and through seamless teamwork among our development, development and production of key components and through seamless teamwork among our development, development and production of key components and through seamless teamwork among our development, production and suppliers, we have produced and introduced DANTOTSU products with “built-in” quality, such production and suppliers, we have produced and introduced DANTOTSU products with “built-in” quality, such production and suppliers, we have produced and introduced DANTOTSU products with “built-in” quality, such production and suppliers, we have produced and introduced DANTOTSU products with “built-in” quality, such as our industry’s first hybrid hydraulic excavators, to the global market. as our industry’s first hybrid hydraulic excavators, to the global market. as our industry’s first hybrid hydraulic excavators, to the global market. as our industry’s first hybrid hydraulic excavators, to the global market. DANTOTSU Service DANTOTSU Service DANTOTSU Service DANTOTSU Service By utilizing data concerning the operating conditions of our products, we have been promoting “visualization” By utilizing data concerning the operating conditions of our products, we have been promoting “visualization” By utilizing data concerning the operating conditions of our products, we have been promoting “visualization” of our machines in use, thereby strengthening business designed to reduce their lifecycle costs in the value By utilizing data concerning the operating conditions of our products, we have been promoting “visualization” of our machines in use, thereby strengthening business designed to reduce their lifecycle costs in the value of our machines in use, thereby strengthening business designed to reduce their lifecycle costs in the value chains of after-sales service, parts, and rental and used equipment. of our machines in use, thereby strengthening business designed to reduce their lifecycle costs in the value chains of after-sales service, parts, and rental and used equipment. chains of after-sales service, parts, and rental and used equipment. In 2001, we mounted KOMTRAX on all construction equipment as a standard feature, which enables remote chains of after-sales service, parts, and rental and used equipment. In 2001, we mounted KOMTRAX on all construction equipment as a standard feature, which enables remote monitoring of the locations and operating conditions of Komatsu equipment used by customers. In addition In 2001, we mounted KOMTRAX on all construction equipment as a standard feature, which enables remote In 2001, we mounted KOMTRAX on all construction equipment as a standard feature, which enables remote monitoring of the locations and operating conditions of Komatsu equipment used by customers. In addition to 375,000 KOMTRAX-mounted units working around the world as of March 31, 2015, we gather and analyze monitoring of the locations and operating conditions of Komatsu equipment used by customers. In addition monitoring of the locations and operating conditions of Komatsu equipment used by customers. In addition to 375,000 KOMTRAX-mounted units working around the world as of March 31, 2015, we gather and analyze data from KOMTRAX Plus-mounted mining equipment and utilize it in our maintenance service, designed for to 375,000 KOMTRAX-mounted units working around the world as of March 31, 2015, we gather and analyze to 375,000 KOMTRAX-mounted units working around the world as of March 31, 2015, we gather and analyze data from KOMTRAX Plus-mounted mining equipment and utilize it in our maintenance service, designed for more efficient use of machines, make proposals for fuel-economy operation, and reinforce the rental and data from KOMTRAX Plus-mounted mining equipment and utilize it in our maintenance service, designed for data from KOMTRAX Plus-mounted mining equipment and utilize it in our maintenance service, designed for more efficient use of machines, make proposals for fuel-economy operation, and reinforce the rental and more efficient use of machines, make proposals for fuel-economy operation, and reinforce the rental and used equipment businesses. more efficient use of machines, make proposals for fuel-economy operation, and reinforce the rental and used equipment businesses. used equipment businesses. used equipment businesses. DANTOTSU Solutions DANTOTSU Solutions DANTOTSU Solutions DANTOTSU Solutions DANTOTSU solutions are a business model in which we take full advantage of leading-edge ICT, gather and analyze data concerning jobsite operations of our construction and mining customers for “visualization” so DANTOTSU solutions are a business model in which we take full advantage of leading-edge ICT, gather and DANTOTSU solutions are a business model in which we take full advantage of leading-edge ICT, gather and that we should be able to offer solutions to their jobsite problems. DANTOTSU solutions are a business model in which we take full advantage of leading-edge ICT, gather and analyze data concerning jobsite operations of our construction and mining customers for “visualization” so analyze data concerning jobsite operations of our construction and mining customers for “visualization” so In 2008, we led the world by commercializing our Autonomous Haulage System (AHS) with unmanned analyze data concerning jobsite operations of our construction and mining customers for “visualization” so that we should be able to offer solutions to their jobsite problems. that we should be able to offer solutions to their jobsite problems. mining trucks. While offering new value of safety to customers by virtue of being driverless trucks, AHS not that we should be able to offer solutions to their jobsite problems. In 2008, we led the world by commercializing our Autonomous Haulage System (AHS) with unmanned only helps customers cut down running costs, such as fuel and maintenance expenses, but also enables us to In 2008, we led the world by commercializing our Autonomous Haulage System (AHS) with unmanned In 2008, we led the world by commercializing our Autonomous Haulage System (AHS) with unmanned mining trucks. While offering new value of safety to customers by virtue of being driverless trucks, AHS not take up some of the work of our customers, thereby expanding our business domain. mining trucks. While offering new value of safety to customers by virtue of being driverless trucks, AHS not mining trucks. While offering new value of safety to customers by virtue of being driverless trucks, AHS not only helps customers cut down running costs, such as fuel and maintenance expenses, but also enables us to only helps customers cut down running costs, such as fuel and maintenance expenses, but also enables us to Concerning construction equipment, we launched intelligent Machine Control dozers in 2013 and hydraulic only helps customers cut down running costs, such as fuel and maintenance expenses, but also enables us to take up some of the work of our customers, thereby expanding our business domain. excavators in 2014, both featuring automatic control of blades and buckets, respectively. With these take up some of the work of our customers, thereby expanding our business domain. take up some of the work of our customers, thereby expanding our business domain. machines, operators, regardless of experience, can perform work at a high precision on par with that of Concerning construction equipment, we launched intelligent Machine Control dozers in 2013 and hydraulic Concerning construction equipment, we launched intelligent Machine Control dozers in 2013 and hydraulic veterans. They also considerably reduce the staking and inspection of survey processes, thereby greatly Concerning construction equipment, we launched intelligent Machine Control dozers in 2013 and hydraulic excavators in 2014, both featuring automatic control of blades and buckets, respectively. With these excavators in 2014, both featuring automatic control of blades and buckets, respectively. With these *1 *2 helping customers shorten their construction period. excavators in 2014, both featuring automatic control of blades and buckets, respectively. With these machines, operators, regardless of experience, can perform work at a high precision on par with that of machines, operators, regardless of experience, can perform work at a high precision on par with that of machines, operators, regardless of experience, can perform work at a high precision on par with that of veterans. They also considerably reduce the staking and inspection of survey processes, thereby greatly In February 2015, we embarked on SMARTCONSTRUCTION, in which we provide solutions by using this veterans. They also considerably reduce the staking and inspection of survey processes, thereby greatly *1 *2 *1 *2 veterans. They also considerably reduce the staking and inspection of survey processes, thereby greatly helping customers shorten their construction period. helping customers shorten their construction period. *1 *2 equipment genre. helping customers shorten their construction period. In February 2015, we embarked on SMARTCONSTRUCTION, in which we provide solutions by using this *1 Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of In February 2015, we embarked on SMARTCONSTRUCTION, in which we provide solutions by using this smaller sticks in horizontal and angled positions for guidance. In February 2015, we embarked on SMARTCONSTRUCTION, in which we provide solutions by using this *2 Inspection conducted by the client of construction work to check survey results. equipment genre. equipment genre. equipment genre. *1 Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of *1 Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. Solutions to Social Problems and Sustainable Growth *1 Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. *2 Inspection conducted by the client of construction work to check survey results. smaller sticks in horizontal and angled positions for guidance. *2 Inspection conducted by the client of construction work to check survey results. *2 Inspection conducted by the client of construction work to check survey results. Today, the Japanese civil engineering/construction industry is facing a critical problem of labor shortage at Solutions to Social Problems and Sustainable Growth Solutions to Social Problems and Sustainable Growth jobsites; the number of new graduates entering the industry is declining and veteran machine operators are Solutions to Social Problems and Sustainable Growth diminishing. This is happening against the backdrop of Japan’s aging population combined with a declining birth rate. birth rate. birth rate. birth rate. Today, the Japanese civil engineering/construction industry is facing a critical problem of labor shortage at Today, the Japanese civil engineering/construction industry is facing a critical problem of labor shortage at Today, the Japanese civil engineering/construction industry is facing a critical problem of labor shortage at jobsites; the number of new graduates entering the industry is declining and veteran machine operators are While responding to this structural problem of Japanese society, we are striving to offer excellence in jobsite jobsites; the number of new graduates entering the industry is declining and veteran machine operators are jobsites; the number of new graduates entering the industry is declining and veteran machine operators are diminishing. This is happening against the backdrop of Japan’s aging population combined with a declining diminishing. This is happening against the backdrop of Japan’s aging population combined with a declining safety, productivity, and reliability to our customers at lower costs. diminishing. This is happening against the backdrop of Japan’s aging population combined with a declining We are committed to this jobsite of the future. To create such a smart jobsite of the future together with customers and ensure our sustainable growth with them and society, we have begun SMARTCONSTRUCTION While responding to this structural problem of Japanese society, we are striving to offer excellence in jobsite While responding to this structural problem of Japanese society, we are striving to offer excellence in jobsite first in Japan. While responding to this structural problem of Japanese society, we are striving to offer excellence in jobsite safety, productivity, and reliability to our customers at lower costs. safety, productivity, and reliability to our customers at lower costs. safety, productivity, and reliability to our customers at lower costs. We are committed to this jobsite of the future. To create such a smart jobsite of the future together with We are committed to this jobsite of the future. To create such a smart jobsite of the future together with We are committed to this jobsite of the future. To create such a smart jobsite of the future together with customers and ensure our sustainable growth with them and society, we have begun SMARTCONSTRUCTION customers and ensure our sustainable growth with them and society, we have begun SMARTCONSTRUCTION customers and ensure our sustainable growth with them and society, we have begun SMARTCONSTRUCTION first in Japan. first in Japan. first in Japan. To Achieve Innovation As we define innovation as the provision of new value for our customers in the business domains of products, service and solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, we are continuing to take on the challenge of achieving innovation. The first driving force of our innovation is to thoroughly understand our customers’ jobsite operations. We must actively get involved in their jobsite operations and learn jobsite-specific construction know-how and technology from managers and workers. We can facilitate the progress of our technologies and service by To Achieve Innovation To Achieve Innovation To Achieve Innovation incorporating these know-how and technology and quickly apply them to customers’ jobsite operations. As As we define innovation as the provision of new value for our customers in the business domains of products, As we define innovation as the provision of new value for our customers in the business domains of products, we turn this cycle of continuous improvements, we are convinced that we can create value for which our As we define innovation as the provision of new value for our customers in the business domains of products, service and solutions by getting deeply involved in their jobsite operations in collaboration with our service and solutions by getting deeply involved in their jobsite operations in collaboration with our customers truly search. service and solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, we are continuing to take on the challenge of achieving innovation. distributors and suppliers, we are continuing to take on the challenge of achieving innovation. The second driving force is to capture promising technologies for the future, particularly in the field of ICT, at distributors and suppliers, we are continuing to take on the challenge of achieving innovation. The first driving force of our innovation is to thoroughly understand our customers’ jobsite operations. We their early stages. In this regard, it is important for us to open our R&D and solicit a wide range of expertise The first driving force of our innovation is to thoroughly understand our customers’ jobsite operations. We The first driving force of our innovation is to thoroughly understand our customers’ jobsite operations. We must actively get involved in their jobsite operations and learn jobsite-specific construction know-how and from universities, research institutes, ventures and the like. To reinforce this capability, we created the Office must actively get involved in their jobsite operations and learn jobsite-specific construction know-how and must actively get involved in their jobsite operations and learn jobsite-specific construction know-how and technology from managers and workers. We can facilitate the progress of our technologies and service by of Chief Technical Officer in April, 2014. As part of strengthening collaborations with academia and industries, technology from managers and workers. We can facilitate the progress of our technologies and service by technology from managers and workers. We can facilitate the progress of our technologies and service by incorporating these know-how and technology and quickly apply them to customers’ jobsite operations. As in 2015 we made equity participation in ZMP Inc., Japan’s leading company in image processing, sensing and incorporating these know-how and technology and quickly apply them to customers’ jobsite operations. As incorporating these know-how and technology and quickly apply them to customers’ jobsite operations. As we turn this cycle of continuous improvements, we are convinced that we can create value for which our control of the Advanced Driver Assistance System. With respect to collaborations with academia, we reached we turn this cycle of continuous improvements, we are convinced that we can create value for which our we turn this cycle of continuous improvements, we are convinced that we can create value for which our an agreement with the Tokyo Institute of Technology in a multiple range of fields, such as materials, customers truly search. customers truly search. customers truly search. telecommunication and measurement. The second driving force is to capture promising technologies for the future, particularly in the field of ICT, at The second driving force is to capture promising technologies for the future, particularly in the field of ICT, at All in all, what is most important is that we speed up our own evolution in order to create new value, create The second driving force is to capture promising technologies for the future, particularly in the field of ICT, at their early stages. In this regard, it is important for us to open our R&D and solicit a wide range of expertise their early stages. In this regard, it is important for us to open our R&D and solicit a wide range of expertise smart jobsites of the future and make innovation happen together with our customers. their early stages. In this regard, it is important for us to open our R&D and solicit a wide range of expertise from universities, research institutes, ventures and the like. To reinforce this capability, we created the Office from universities, research institutes, ventures and the like. To reinforce this capability, we created the Office from universities, research institutes, ventures and the like. To reinforce this capability, we created the Office of Chief Technical Officer in April, 2014. As part of strengthening collaborations with academia and industries, of Chief Technical Officer in April, 2014. As part of strengthening collaborations with academia and industries, of Chief Technical Officer in April, 2014. As part of strengthening collaborations with academia and industries, in 2015 we made equity participation in ZMP Inc., Japan’s leading company in image processing, sensing and in 2015 we made equity participation in ZMP Inc., Japan’s leading company in image processing, sensing and in 2015 we made equity participation in ZMP Inc., Japan’s leading company in image processing, sensing and control of the Advanced Driver Assistance System. With respect to collaborations with academia, we reached control of the Advanced Driver Assistance System. With respect to collaborations with academia, we reached control of the Advanced Driver Assistance System. With respect to collaborations with academia, we reached an agreement with the Tokyo Institute of Technology in a multiple range of fields, such as materials, an agreement with the Tokyo Institute of Technology in a multiple range of fields, such as materials, an agreement with the Tokyo Institute of Technology in a multiple range of fields, such as materials, telecommunication and measurement. For further details, please click here INFORMATION STRATEGIES ESG telecommunication and measurement. telecommunication and measurement. Growth Strategies Based All in all, what is most important is that we speed up our own evolution in order to create new value, create All in all, what is most important is that we speed up our own evolution in order to create new value, create Risk Management Download PDF on Innovation Securities Report All in all, what is most important is that we speed up our own evolution in order to create new value, create smart jobsites of the future and make innovation happen together with our customers. smart jobsites of the future and make innovation happen together with our customers. SMARTCONSTRUCTION Environmental Social activities: Site Map Introduction to smart jobsites of the future and make innovation happen together with our customers. CSR report Corporate Governance Corporate Information Financial conditions: SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment STRATEGIES STRATEGIES Jobsite Report 3: Looking ESG ESG INFORMATION INFORMATION STRATEGIES Growth Strategies Based forward to the future of Growth Strategies Based intelligent Machine Control ESG Industrial Machinery and Corporate Governance Corporate Governance Others INFORMATION Corporate Information Corporate Information Download PDF Corporate Information Download PDF Site Map Download PDF Site Map Site Map Environmental performance: Environmental Report For further details, please click here For further details, please click here For further details, please click here Financial conditions: Financial conditions: Securities Report Securities Report Financial conditions: Securities Report Social activities: Social activities: CSR report CSR report Social activities: CSR report Environmental performance: Environmental performance: Environmental Report Environmental Report Environmental performance: Environmental Report on Innovation Growth Strategies Based on Innovation equipment Introduction to on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION MANAGEMENT Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION To All Our Stakeholders Interview with the SMARTCONSTRUCTION Jobsite Report 1: Young President Jobsite Report 1: Young workers being responsible Jobsite Report 1: Young workers being responsible for ICT-intensive workers being responsible for ICT-intensive construction for ICT-intensive construction Risk Management Corporate Governance Risk Management Environmental Risk Management Environmental Conservation Efforts Environmental Conservation Efforts Corporate Social Conservation Efforts Corporate Social Responsibility Efforts Corporate Social Responsibility Efforts Responsibility Efforts FY2014 PERFORMANCE FY2014 PERFORMANCE FY2014 PERFORMANCE Consolidated Results / Consolidated Results / Five-Year Summary Jobsite Report 2: Together Copyright © 2015 Komatsu Ltd. All rights reserved Consolidated Results / Five-Year Summary construction Jobsite Report 2: Together with veteran operators Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking with veteran operators Jobsite Report 3: Looking forward to the future of Jobsite Report 3: Looking forward to the future of intelligent Machine Control forward to the future of intelligent Machine Control equipment intelligent Machine Control equipment Construction, Mining and Five-Year Summary Construction, Mining and Utility Equipment Construction, Mining and Utility Equipment Industrial Machinery and Utility Equipment Industrial Machinery and Industrial Machinery and Others Others Others equipment MANAGEMENT MANAGEMENT MANAGEMENT To All Our Stakeholders To All Our Stakeholders Interview with the To All Our Stakeholders Interview with the President Interview with the President President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Strategies Growth Strategies Based on Innovation Sustainable Growth and Innovation DANTOTSU (Unrivaled) Products DANTOTSU Service DANTOTSU Solutions Solutions to Social Problems and Sustainable Growth To Achieve Innovation Tetsuji Ohashi, President Sustainable Growth and Innovation We have placed the “Growth Strategies Based on Innovation” first among our focused efforts in the “Together We Innovate GEMBA Worldwide” mid-range management plan scheduled to be completed in March, 2016. We define innovation as to create and offer new value designed to streamline our customers' business in the domain of solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, in addition to the domains of products and service. Through innovation, we are working to expand our business domains for further growth. KOMATSU REPORT 2015 Growth Strategies Based on Innovation 05 KOMATSU INNOVATION FOR THE FUTURE DANTOTSU (Unrivaled) Products As a manufacturer of construction and mining equipment, Komatsu has been committed to providing products with features in safety, environmental friendliness, ICT and fuel economy (work efficiency), with which no competitors can catch up in a few years. By taking the technological advantage of in-house development and production of key components and through seamless teamwork among our development, production and suppliers, we have produced and introduced DANTOTSU products with “built-in” quality, such as our industry’s first hybrid hydraulic excavators, to the global market. DANTOTSU Service By utilizing data concerning the operating conditions of our products, we have been promoting “visualization” of our machines in use, thereby strengthening business designed to reduce their lifecycle costs in the value chains of after-sales service, parts, and rental and used equipment. In 2001, we mounted KOMTRAX on all construction equipment as a standard feature, which enables remote monitoring of the locations and operating conditions of Komatsu equipment used by customers. In addition to 375,000 KOMTRAX-mounted units working around the world as of March 31, 2015, we gather and analyze data from KOMTRAX Plus-mounted mining equipment and utilize it in our maintenance service, designed for more efficient use of machines, make proposals for fuel-economy operation, and reinforce the rental and used equipment businesses. DANTOTSU Solutions DANTOTSU solutions are a business model in which we take full advantage of leading-edge ICT, gather and analyze data concerning jobsite operations of our construction and mining customers for “visualization” so that we should be able to offer solutions to their jobsite problems. In 2008, we led the world by commercializing our Autonomous Haulage System (AHS) with unmanned mining trucks. While offering new value of safety to customers by virtue of being driverless trucks, AHS not only helps customers cut down running costs, such as fuel and maintenance expenses, but also enables us to take up some of the work of our customers, thereby expanding our business domain. Concerning construction equipment, we launched intelligent Machine Control dozers in 2013 and hydraulic excavators in 2014, both featuring automatic control of blades and buckets, respectively. With these machines, operators, regardless of experience, can perform work at a high precision on par with that of veterans. They also considerably reduce the staking and inspection of survey processes, thereby greatly *1 *2 helping customers shorten their construction period. In February 2015, we embarked on SMARTCONSTRUCTION, in which we provide solutions by using this equipment genre. *1 Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. *2 Inspection conducted by the client of construction work to check survey results. Solutions to Social Problems and Sustainable Growth Today, the Japanese civil engineering/construction industry is facing a critical problem of labor shortage at jobsites; the number of new graduates entering the industry is declining and veteran machine operators are diminishing. This is happening against the backdrop of Japan’s aging population combined with a declining birth rate. first in Japan. While responding to this structural problem of Japanese society, we are striving to offer excellence in jobsite safety, productivity, and reliability to our customers at lower costs. We are committed to this jobsite of the future. To create such a smart jobsite of the future together with customers and ensure our sustainable growth with them and society, we have begun SMARTCONSTRUCTION To Achieve Innovation As we define innovation as the provision of new value for our customers in the business domains of products, service and solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, we are continuing to take on the challenge of achieving innovation. The first driving force of our innovation is to thoroughly understand our customers’ jobsite operations. We must actively get involved in their jobsite operations and learn jobsite-specific construction know-how and technology from managers and workers. We can facilitate the progress of our technologies and service by incorporating these know-how and technology and quickly apply them to customers’ jobsite operations. As we turn this cycle of continuous improvements, we are convinced that we can create value for which our customers truly search. The second driving force is to capture promising technologies for the future, particularly in the field of ICT, at their early stages. In this regard, it is important for us to open our R&D and solicit a wide range of expertise from universities, research institutes, ventures and the like. To reinforce this capability, we created the Office of Chief Technical Officer in April, 2014. As part of strengthening collaborations with academia and industries, in 2015 we made equity participation in ZMP Inc., Japan’s leading company in image processing, sensing and control of the Advanced Driver Assistance System. With respect to collaborations with academia, we reached an agreement with the Tokyo Institute of Technology in a multiple range of fields, such as materials, telecommunication and measurement. All in all, what is most important is that we speed up our own evolution in order to create new value, create smart jobsites of the future and make innovation happen together with our customers. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Strategies Growth Strategies Based on Innovation Sustainable Growth and Innovation DANTOTSU (Unrivaled) Products DANTOTSU Service DANTOTSU Solutions Solutions to Social Problems and Sustainable Growth To Achieve Innovation Tetsuji Ohashi, President Sustainable Growth and Innovation We have placed the “Growth Strategies Based on Innovation” first among our focused efforts in the “Together We Innovate GEMBA Worldwide” mid-range management plan scheduled to be completed in March, 2016. We define innovation as to create and offer new value designed to streamline our customers' business in the domain of solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, in addition to the domains of products and service. Through innovation, we are working to expand our business domains for further growth. DANTOTSU (Unrivaled) Products As a manufacturer of construction and mining equipment, Komatsu has been committed to providing products with features in safety, environmental friendliness, ICT and fuel economy (work efficiency), with which no competitors can catch up in a few years. By taking the technological advantage of in-house development and production of key components and through seamless teamwork among our development, production and suppliers, we have produced and introduced DANTOTSU products with “built-in” quality, such as our industry’s first hybrid hydraulic excavators, to the global market. DANTOTSU Service By utilizing data concerning the operating conditions of our products, we have been promoting “visualization” of our machines in use, thereby strengthening business designed to reduce their lifecycle costs in the value chains of after-sales service, parts, and rental and used equipment. In 2001, we mounted KOMTRAX on all construction equipment as a standard feature, which enables remote monitoring of the locations and operating conditions of Komatsu equipment used by customers. In addition to 375,000 KOMTRAX-mounted units working around the world as of March 31, 2015, we gather and analyze data from KOMTRAX Plus-mounted mining equipment and utilize it in our maintenance service, designed for more efficient use of machines, make proposals for fuel-economy operation, and reinforce the rental and used equipment businesses. DANTOTSU Solutions DANTOTSU solutions are a business model in which we take full advantage of leading-edge ICT, gather and analyze data concerning jobsite operations of our construction and mining customers for “visualization” so that we should be able to offer solutions to their jobsite problems. In 2008, we led the world by commercializing our Autonomous Haulage System (AHS) with unmanned mining trucks. While offering new value of safety to customers by virtue of being driverless trucks, AHS not only helps customers cut down running costs, such as fuel and maintenance expenses, but also enables us to take up some of the work of our customers, thereby expanding our business domain. Concerning construction equipment, we launched intelligent Machine Control dozers in 2013 and hydraulic excavators in 2014, both featuring automatic control of blades and buckets, respectively. With these machines, operators, regardless of experience, can perform work at a high precision on par with that of veterans. They also considerably reduce the staking and inspection of survey processes, thereby greatly *1 *2 helping customers shorten their construction period. In February 2015, we embarked on SMARTCONSTRUCTION, in which we provide solutions by using this equipment genre. KOMATSU REPORT 2015 Growth Strategies Based on Innovation 06 KOMATSU INNOVATION FOR THE FUTURE *1 Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. *2 Inspection conducted by the client of construction work to check survey results. Solutions to Social Problems and Sustainable Growth Today, the Japanese civil engineering/construction industry is facing a critical problem of labor shortage at jobsites; the number of new graduates entering the industry is declining and veteran machine operators are diminishing. This is happening against the backdrop of Japan’s aging population combined with a declining birth rate. While responding to this structural problem of Japanese society, we are striving to offer excellence in jobsite safety, productivity, and reliability to our customers at lower costs. We are committed to this jobsite of the future. To create such a smart jobsite of the future together with customers and ensure our sustainable growth with them and society, we have begun SMARTCONSTRUCTION first in Japan. To Achieve Innovation As we define innovation as the provision of new value for our customers in the business domains of products, service and solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, we are continuing to take on the challenge of achieving innovation. The first driving force of our innovation is to thoroughly understand our customers’ jobsite operations. We must actively get involved in their jobsite operations and learn jobsite-specific construction know-how and technology from managers and workers. We can facilitate the progress of our technologies and service by incorporating these know-how and technology and quickly apply them to customers’ jobsite operations. As we turn this cycle of continuous improvements, we are convinced that we can create value for which our customers truly search. The second driving force is to capture promising technologies for the future, particularly in the field of ICT, at their early stages. In this regard, it is important for us to open our R&D and solicit a wide range of expertise from universities, research institutes, ventures and the like. To reinforce this capability, we created the Office of Chief Technical Officer in April, 2014. As part of strengthening collaborations with academia and industries, in 2015 we made equity participation in ZMP Inc., Japan’s leading company in image processing, sensing and control of the Advanced Driver Assistance System. With respect to collaborations with academia, we reached an agreement with the Tokyo Institute of Technology in a multiple range of fields, such as materials, telecommunication and measurement. All in all, what is most important is that we speed up our own evolution in order to create new value, create smart jobsites of the future and make innovation happen together with our customers. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Strategies Growth Strategies Based on Innovation Sustainable Growth and Innovation DANTOTSU (Unrivaled) Products DANTOTSU Service DANTOTSU Solutions Solutions to Social Problems and Sustainable Growth To Achieve Innovation Tetsuji Ohashi, President Sustainable Growth and Innovation We have placed the “Growth Strategies Based on Innovation” first among our focused efforts in the “Together We Innovate GEMBA Worldwide” mid-range management plan scheduled to be completed in March, 2016. We define innovation as to create and offer new value designed to streamline our customers' business in the domain of solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, in addition to the domains of products and service. Through innovation, we are working to expand our business domains for further growth. DANTOTSU (Unrivaled) Products As a manufacturer of construction and mining equipment, Komatsu has been committed to providing products with features in safety, environmental friendliness, ICT and fuel economy (work efficiency), with which no competitors can catch up in a few years. By taking the technological advantage of in-house development and production of key components and through seamless teamwork among our development, production and suppliers, we have produced and introduced DANTOTSU products with “built-in” quality, such as our industry’s first hybrid hydraulic excavators, to the global market. DANTOTSU Service By utilizing data concerning the operating conditions of our products, we have been promoting “visualization” of our machines in use, thereby strengthening business designed to reduce their lifecycle costs in the value chains of after-sales service, parts, and rental and used equipment. In 2001, we mounted KOMTRAX on all construction equipment as a standard feature, which enables remote monitoring of the locations and operating conditions of Komatsu equipment used by customers. In addition to 375,000 KOMTRAX-mounted units working around the world as of March 31, 2015, we gather and analyze data from KOMTRAX Plus-mounted mining equipment and utilize it in our maintenance service, designed for more efficient use of machines, make proposals for fuel-economy operation, and reinforce the rental and used equipment businesses. DANTOTSU Solutions DANTOTSU solutions are a business model in which we take full advantage of leading-edge ICT, gather and analyze data concerning jobsite operations of our construction and mining customers for “visualization” so that we should be able to offer solutions to their jobsite problems. In 2008, we led the world by commercializing our Autonomous Haulage System (AHS) with unmanned mining trucks. While offering new value of safety to customers by virtue of being driverless trucks, AHS not only helps customers cut down running costs, such as fuel and maintenance expenses, but also enables us to take up some of the work of our customers, thereby expanding our business domain. Concerning construction equipment, we launched intelligent Machine Control dozers in 2013 and hydraulic excavators in 2014, both featuring automatic control of blades and buckets, respectively. With these machines, operators, regardless of experience, can perform work at a high precision on par with that of veterans. They also considerably reduce the staking and inspection of survey processes, thereby greatly *1 *2 helping customers shorten their construction period. In February 2015, we embarked on SMARTCONSTRUCTION, in which we provide solutions by using this equipment genre. *1 Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. *2 Inspection conducted by the client of construction work to check survey results. Solutions to Social Problems and Sustainable Growth Today, the Japanese civil engineering/construction industry is facing a critical problem of labor shortage at jobsites; the number of new graduates entering the industry is declining and veteran machine operators are diminishing. This is happening against the backdrop of Japan’s aging population combined with a declining birth rate. first in Japan. While responding to this structural problem of Japanese society, we are striving to offer excellence in jobsite safety, productivity, and reliability to our customers at lower costs. We are committed to this jobsite of the future. To create such a smart jobsite of the future together with customers and ensure our sustainable growth with them and society, we have begun SMARTCONSTRUCTION KOMATSU REPORT 2015 Growth Strategies Based on Innovation 07 KOMATSU INNOVATION FOR THE FUTURE To Achieve Innovation As we define innovation as the provision of new value for our customers in the business domains of products, service and solutions by getting deeply involved in their jobsite operations in collaboration with our distributors and suppliers, we are continuing to take on the challenge of achieving innovation. The first driving force of our innovation is to thoroughly understand our customers’ jobsite operations. We must actively get involved in their jobsite operations and learn jobsite-specific construction know-how and technology from managers and workers. We can facilitate the progress of our technologies and service by incorporating these know-how and technology and quickly apply them to customers’ jobsite operations. As we turn this cycle of continuous improvements, we are convinced that we can create value for which our customers truly search. The second driving force is to capture promising technologies for the future, particularly in the field of ICT, at their early stages. In this regard, it is important for us to open our R&D and solicit a wide range of expertise from universities, research institutes, ventures and the like. To reinforce this capability, we created the Office of Chief Technical Officer in April, 2014. As part of strengthening collaborations with academia and industries, in 2015 we made equity participation in ZMP Inc., Japan’s leading company in image processing, sensing and control of the Advanced Driver Assistance System. With respect to collaborations with academia, we reached an agreement with the Tokyo Institute of Technology in a multiple range of fields, such as materials, telecommunication and measurement. All in all, what is most important is that we speed up our own evolution in order to create new value, create smart jobsites of the future and make innovation happen together with our customers. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Strategies Introduction to SMARTCONSTRUCTION KOMATSU REPORT 2015 Introduction to SMARTCONSTRUCTION 08 KOMATSU INNOVATION FOR THE FUTURE “KomConnect”: Connecting everything on the jobsites High-precision survey and development of construction plans What we have learned from “SMARTCONSTRUCTION” jobsites Introduction to SMARTCONSTRUCTION Heading for “Jobsites of the Future” Chikashi Shike President Smart Construction Promotion Division Since June, 2013, when we launched the D61PXi-23 intelligent Machine Control bulldozers, we have discussed what kind of new value we can provide to customers with our intelligent Machine Control models. They can not only achieve high-precision construction but also shorten the period of construction by streamlining works before and after the construction phase. SMARTCONSTRUCTION packages these benefits with rental equipment. We embarked on this new business initially in Japan in February 2015. D61PXi-23 intelligent Machine Control bulldozer launched in June, 2013 PC210LCi-10 intelligent Machine Control hydraulic excavator (overseas specs) launched in October, 2014 “KomConnect”: Connecting everything on the jobsites Through ICT, SMARTCONSTRUCTION connects all jobsite information concerning not only construction equipment but also people, machines and the ground, that are involved in construction in all phases from pre-construction to completion. Our “KomConnect” is a cloud-based software service, a platform connecting all the information. By storing a massive amount of information concerning construction activities, we engage in analyses, simulations and proposals. This information can be accessed by all concerned people via the Internet, anywhere, at anytime. Now, please enjoy our video presentation of SMARTCONSTRUCTION. High-precision survey and development of construction plans When our customers of construction and civil engineering receive a contract for construction and obtain completion drawings from their clients, they survey the jobsites before construction, compare that survey data with the completion drawings to determine what needs to be done and then develop construction plans. Typically, surveying takes two surveyors who can survey a few hundred points a day. As those points are located a few meters away from each other, the surveyors repeat the same task as they move on the jobsite. In some cases, construction companies compare 2-D survey drawings with completion drawings and then estimate their work, which can often result in big mistakes in actual work volume. We believe we can propose a new way of surveying by using leading-edge ICT, for example, the use of survey-specific drones made by Skycatch. Under ideal conditions, drones can automatically fly over the jobsites for about 15 minutes at each flight, surveying a few million points a few centimeters away from each other. If needed, we can also laser scan the sites for high-precision 3-D surveys. While surveying the sites, we receive the contract from customers to convert their 2-D completion drawings into 3-D drawings. The differences between these 3-D drawings and 3-D survey data represent the areas where their work is needed. “KomConnect” enables customers to have an accurate understanding of the areas, shape and volume of earth to work on, prior to construction work. Then, we transfer these data to intelligent Machine Control machines, set up the machines at job sites, and enable customers to engage in high-precision earthmoving work without stakes . * *Stakes: Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. What we have learned from SMARTCONSTRUCTION jobsites We have already deployed some 350 units of intelligent Machine Control equipment at about 800 construction sites in Japan. As you will watch in a video later in this section, our customers confirm that our intelligent Machine Control models eliminate the need for staking and enable operators with limited experience to perform difficult tasks. We have learned something new after introducing SMARTCONSTRUCTION. By analyzing data concerning machine positions and operations, we have discovered a difference between veteran and new operators in the amount of time the two groups spent operating intelligent Machine Control models. The difference is attributable to veterans’ jobsite know-how accumulated over the years, for example, where and in which direction to start work on jobsites. We would like to accumulate such veterans’ expertise in KomConnect and provide it to all operators. From veteran operators, we have also received a number of better ways of operating our intelligent Machine Control models. In addition to accumulating and sharing veterans’ jobsite expertise, KomConnect offers a platform to turn the subsequent Kaizen cycle on construction jobsites. We also need to listen to customers’ ideas and opinions at jobsites where they are progressing with Kaizen, and respond to their needs. At the SMARTCONSTRUCTION Support Center, established in February 2015, we have been increasing the number of members with experience of construction and civil engineering, and making its operation even more responsive to customers’ needs by working closely with them at jobsites. Heading for “Jobsites of the Future” After completion of construction work, customers will have maintenance work at many sites for a long period of time onward. As all data of construction undertaken by intelligent Machine Control equipment are stored in KomConnect, we are considering a service to make that data available, as needed, to concerned customers and other people. When their completed jobsites are damaged by natural disaster, we can survey the sites by using drones, compare the survey data with the completion data before the damage, and quickly confirm the areas needed for reconstruction. We believe that we should be able to start reconstruction soon after a disaster by remotely controlling unmanned intelligent Machine Control equipment not too far into the future. All around the world today, people are looking for new value by connecting machines through the Internet. This is the so-called Internet of Things (IoT). With this tailwind of IoT, we are striving to evolve SMARTCONSTRUCTION to an extent that customers, and the world, will call it Innovation. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 Strategies Strategies Introduction to SMARTCONSTRUCTION Introduction to SMARTCONSTRUCTION KOMATSU REPORT 2015 Strategies Introduction to SMARTCONSTRUCTION KOMATSU REPORT 2015 KOMATSU REPORT 2015 Strategies Strategies Introduction to SMARTCONSTRUCTION Introduction to SMARTCONSTRUCTION “KomConnect”: Connecting everything on the jobsites “KomConnect”: Connecting everything on the jobsites High-precision survey and development of construction plans High-precision survey and development of construction plans What we have learned from “SMARTCONSTRUCTION” jobsites “KomConnect”: Connecting everything on the jobsites What we have learned from “SMARTCONSTRUCTION” jobsites High-precision survey and development of construction plans Heading for “Jobsites of the Future” Heading for “Jobsites of the Future” “KomConnect”: Connecting everything on the jobsites What we have learned from “SMARTCONSTRUCTION” jobsites “KomConnect”: Connecting everything on the jobsites High-precision survey and development of construction plans High-precision survey and development of construction plans Heading for “Jobsites of the Future” What we have learned from “SMARTCONSTRUCTION” jobsites What we have learned from “SMARTCONSTRUCTION” jobsites Heading for “Jobsites of the Future” Heading for “Jobsites of the Future” Chikashi Shike Chikashi Shike President Chikashi Shike President Smart Construction Promotion Division Smart Construction Promotion Division Chikashi Shike President Smart Construction Promotion Division President Chikashi Shike President Since June, 2013, when we launched the D61PXi-23 intelligent Machine Control bulldozers, we have Since June, 2013, when we launched the D61PXi-23 intelligent Machine Control bulldozers, we have Smart Construction Promotion Division Smart Construction Promotion Division discussed what kind of new value we can provide to customers with our intelligent Machine Control models. Since June, 2013, when we launched the D61PXi-23 intelligent Machine Control bulldozers, we have discussed what kind of new value we can provide to customers with our intelligent Machine Control models. Since June, 2013, when we launched the D61PXi-23 intelligent Machine Control bulldozers, we have They can not only achieve high-precision construction but also shorten the period of construction by discussed what kind of new value we can provide to customers with our intelligent Machine Control models. Since June, 2013, when we launched the D61PXi-23 intelligent Machine Control bulldozers, we have They can not only achieve high-precision construction but also shorten the period of construction by discussed what kind of new value we can provide to customers with our intelligent Machine Control models. streamlining works before and after the construction phase. SMARTCONSTRUCTION packages these benefits They can not only achieve high-precision construction but also shorten the period of construction by discussed what kind of new value we can provide to customers with our intelligent Machine Control models. streamlining works before and after the construction phase. SMARTCONSTRUCTION packages these benefits They can not only achieve high-precision construction but also shorten the period of construction by with rental equipment. We embarked on this new business initially in Japan in February 2015. streamlining works before and after the construction phase. SMARTCONSTRUCTION packages these benefits They can not only achieve high-precision construction but also shorten the period of construction by with rental equipment. We embarked on this new business initially in Japan in February 2015. streamlining works before and after the construction phase. SMARTCONSTRUCTION packages these benefits with rental equipment. We embarked on this new business initially in Japan in February 2015. streamlining works before and after the construction phase. SMARTCONSTRUCTION packages these benefits with rental equipment. We embarked on this new business initially in Japan in February 2015. with rental equipment. We embarked on this new business initially in Japan in February 2015. D61PXi-23 intelligent Machine Control bulldozer launched in June, 2013 D61PXi-23 intelligent Machine Control bulldozer launched in June, 2013 D61PXi-23 intelligent Machine Control bulldozer launched in June, 2013 D61PXi-23 intelligent Machine Control bulldozer launched in June, 2013 D61PXi-23 intelligent Machine Control bulldozer launched in June, 2013 PC210LCi-10 intelligent Machine Control hydraulic PC210LCi-10 intelligent Machine Control hydraulic excavator (overseas specs) launched in October, excavator (overseas specs) launched in October, PC210LCi-10 intelligent Machine Control hydraulic excavator (overseas specs) launched in October, PC210LCi-10 intelligent Machine Control hydraulic PC210LCi-10 intelligent Machine Control hydraulic excavator (overseas specs) launched in October, excavator (overseas specs) launched in October, 2014 2014 2014 2014 2014 “KomConnect”: Connecting everything on the jobsites “KomConnect”: Connecting everything on the jobsites “KomConnect”: Connecting everything on the jobsites “KomConnect”: Connecting everything on the jobsites “KomConnect”: Connecting everything on the jobsites Through ICT, SMARTCONSTRUCTION connects all jobsite information concerning not only construction Through ICT, SMARTCONSTRUCTION connects all jobsite information concerning not only construction equipment but also people, machines and the ground, that are involved in construction in all phases from Through ICT, SMARTCONSTRUCTION connects all jobsite information concerning not only construction equipment but also people, machines and the ground, that are involved in construction in all phases from Through ICT, SMARTCONSTRUCTION connects all jobsite information concerning not only construction pre-construction to completion. Our “KomConnect” is a cloud-based software service, a platform connecting equipment but also people, machines and the ground, that are involved in construction in all phases from Through ICT, SMARTCONSTRUCTION connects all jobsite information concerning not only construction pre-construction to completion. Our “KomConnect” is a cloud-based software service, a platform connecting equipment but also people, machines and the ground, that are involved in construction in all phases from all the information. By storing a massive amount of information concerning construction activities, we pre-construction to completion. Our “KomConnect” is a cloud-based software service, a platform connecting equipment but also people, machines and the ground, that are involved in construction in all phases from all the information. By storing a massive amount of information concerning construction activities, we pre-construction to completion. Our “KomConnect” is a cloud-based software service, a platform connecting engage in analyses, simulations and proposals. This information can be accessed by all concerned people via all the information. By storing a massive amount of information concerning construction activities, we pre-construction to completion. Our “KomConnect” is a cloud-based software service, a platform connecting engage in analyses, simulations and proposals. This information can be accessed by all concerned people via all the information. By storing a massive amount of information concerning construction activities, we the Internet, anywhere, at anytime. engage in analyses, simulations and proposals. This information can be accessed by all concerned people via all the information. By storing a massive amount of information concerning construction activities, we the Internet, anywhere, at anytime. engage in analyses, simulations and proposals. This information can be accessed by all concerned people via the Internet, anywhere, at anytime. engage in analyses, simulations and proposals. This information can be accessed by all concerned people via Now, please enjoy our video presentation of SMARTCONSTRUCTION. Now, please enjoy our video presentation of SMARTCONSTRUCTION. the Internet, anywhere, at anytime. the Internet, anywhere, at anytime. Now, please enjoy our video presentation of SMARTCONSTRUCTION. Now, please enjoy our video presentation of SMARTCONSTRUCTION. Now, please enjoy our video presentation of SMARTCONSTRUCTION. KOMATSU INNOVATION FOR THE FUTURE Introduction to SMARTCONSTRUCTION KOMATSU REPORT 2015 High-precision survey and development of construction plans High-precision survey and development of construction plans High-precision survey and development of construction plans High-precision survey and development of construction plans High-precision survey and development of construction plans 09 When our customers of construction and civil engineering receive a contract for construction and obtain When our customers of construction and civil engineering receive a contract for construction and obtain completion drawings from their clients, they survey the jobsites before construction, compare that survey When our customers of construction and civil engineering receive a contract for construction and obtain completion drawings from their clients, they survey the jobsites before construction, compare that survey When our customers of construction and civil engineering receive a contract for construction and obtain data with the completion drawings to determine what needs to be done and then develop construction plans. completion drawings from their clients, they survey the jobsites before construction, compare that survey When our customers of construction and civil engineering receive a contract for construction and obtain data with the completion drawings to determine what needs to be done and then develop construction plans. completion drawings from their clients, they survey the jobsites before construction, compare that survey data with the completion drawings to determine what needs to be done and then develop construction plans. completion drawings from their clients, they survey the jobsites before construction, compare that survey Typically, surveying takes two surveyors who can survey a few hundred points a day. As those points are Typically, surveying takes two surveyors who can survey a few hundred points a day. As those points are data with the completion drawings to determine what needs to be done and then develop construction plans. data with the completion drawings to determine what needs to be done and then develop construction plans. located a few meters away from each other, the surveyors repeat the same task as they move on the jobsite. Typically, surveying takes two surveyors who can survey a few hundred points a day. As those points are located a few meters away from each other, the surveyors repeat the same task as they move on the jobsite. Typically, surveying takes two surveyors who can survey a few hundred points a day. As those points are In some cases, construction companies compare 2-D survey drawings with completion drawings and then located a few meters away from each other, the surveyors repeat the same task as they move on the jobsite. Typically, surveying takes two surveyors who can survey a few hundred points a day. As those points are In some cases, construction companies compare 2-D survey drawings with completion drawings and then located a few meters away from each other, the surveyors repeat the same task as they move on the jobsite. estimate their work, which can often result in big mistakes in actual work volume. In some cases, construction companies compare 2-D survey drawings with completion drawings and then located a few meters away from each other, the surveyors repeat the same task as they move on the jobsite. estimate their work, which can often result in big mistakes in actual work volume. In some cases, construction companies compare 2-D survey drawings with completion drawings and then estimate their work, which can often result in big mistakes in actual work volume. In some cases, construction companies compare 2-D survey drawings with completion drawings and then We believe we can propose a new way of surveying by using leading-edge ICT, for example, the use of We believe we can propose a new way of surveying by using leading-edge ICT, for example, the use of estimate their work, which can often result in big mistakes in actual work volume. estimate their work, which can often result in big mistakes in actual work volume. survey-specific drones made by Skycatch. Under ideal conditions, drones can automatically fly over the We believe we can propose a new way of surveying by using leading-edge ICT, for example, the use of survey-specific drones made by Skycatch. Under ideal conditions, drones can automatically fly over the We believe we can propose a new way of surveying by using leading-edge ICT, for example, the use of jobsites for about 15 minutes at each flight, surveying a few million points a few centimeters away from each survey-specific drones made by Skycatch. Under ideal conditions, drones can automatically fly over the We believe we can propose a new way of surveying by using leading-edge ICT, for example, the use of jobsites for about 15 minutes at each flight, surveying a few million points a few centimeters away from each survey-specific drones made by Skycatch. Under ideal conditions, drones can automatically fly over the other. If needed, we can also laser scan the sites for high-precision 3-D surveys. jobsites for about 15 minutes at each flight, surveying a few million points a few centimeters away from each survey-specific drones made by Skycatch. Under ideal conditions, drones can automatically fly over the other. If needed, we can also laser scan the sites for high-precision 3-D surveys. jobsites for about 15 minutes at each flight, surveying a few million points a few centimeters away from each other. If needed, we can also laser scan the sites for high-precision 3-D surveys. jobsites for about 15 minutes at each flight, surveying a few million points a few centimeters away from each While surveying the sites, we receive the contract from customers to convert their 2-D completion drawings While surveying the sites, we receive the contract from customers to convert their 2-D completion drawings other. If needed, we can also laser scan the sites for high-precision 3-D surveys. other. If needed, we can also laser scan the sites for high-precision 3-D surveys. into 3-D drawings. The differences between these 3-D drawings and 3-D survey data represent the areas While surveying the sites, we receive the contract from customers to convert their 2-D completion drawings into 3-D drawings. The differences between these 3-D drawings and 3-D survey data represent the areas While surveying the sites, we receive the contract from customers to convert their 2-D completion drawings where their work is needed. into 3-D drawings. The differences between these 3-D drawings and 3-D survey data represent the areas While surveying the sites, we receive the contract from customers to convert their 2-D completion drawings where their work is needed. into 3-D drawings. The differences between these 3-D drawings and 3-D survey data represent the areas where their work is needed. into 3-D drawings. The differences between these 3-D drawings and 3-D survey data represent the areas “KomConnect” enables customers to have an accurate understanding of the areas, shape and volume of “KomConnect” enables customers to have an accurate understanding of the areas, shape and volume of where their work is needed. where their work is needed. earth to work on, prior to construction work. Then, we transfer these data to intelligent Machine Control “KomConnect” enables customers to have an accurate understanding of the areas, shape and volume of earth to work on, prior to construction work. Then, we transfer these data to intelligent Machine Control “KomConnect” enables customers to have an accurate understanding of the areas, shape and volume of machines, set up the machines at job sites, and enable customers to engage in high-precision earthmoving earth to work on, prior to construction work. Then, we transfer these data to intelligent Machine Control “KomConnect” enables customers to have an accurate understanding of the areas, shape and volume of machines, set up the machines at job sites, and enable customers to engage in high-precision earthmoving earth to work on, prior to construction work. Then, we transfer these data to intelligent Machine Control * work without stakes . machines, set up the machines at job sites, and enable customers to engage in high-precision earthmoving earth to work on, prior to construction work. Then, we transfer these data to intelligent Machine Control * work without stakes . machines, set up the machines at job sites, and enable customers to engage in high-precision earthmoving * work without stakes . machines, set up the machines at job sites, and enable customers to engage in high-precision earthmoving * work without stakes . * work without stakes . consists of smaller sticks in horizontal and angled positions for guidance. consists of smaller sticks in horizontal and angled positions for guidance. *Stakes: Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake *Stakes: Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. consists of smaller sticks in horizontal and angled positions for guidance. consists of smaller sticks in horizontal and angled positions for guidance. *Stakes: Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake *Stakes: Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake *Stakes: Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake What we have learned from SMARTCONSTRUCTION jobsites What we have learned from SMARTCONSTRUCTION jobsites What we have learned from SMARTCONSTRUCTION jobsites What we have learned from SMARTCONSTRUCTION jobsites What we have learned from SMARTCONSTRUCTION jobsites We have already deployed some 350 units of intelligent Machine Control equipment at about 800 We have already deployed some 350 units of intelligent Machine Control equipment at about 800 construction sites in Japan. As you will watch in a video later in this section, our customers confirm that our We have already deployed some 350 units of intelligent Machine Control equipment at about 800 construction sites in Japan. As you will watch in a video later in this section, our customers confirm that our We have already deployed some 350 units of intelligent Machine Control equipment at about 800 intelligent Machine Control models eliminate the need for staking and enable operators with limited construction sites in Japan. As you will watch in a video later in this section, our customers confirm that our We have already deployed some 350 units of intelligent Machine Control equipment at about 800 intelligent Machine Control models eliminate the need for staking and enable operators with limited construction sites in Japan. As you will watch in a video later in this section, our customers confirm that our intelligent Machine Control models eliminate the need for staking and enable operators with limited construction sites in Japan. As you will watch in a video later in this section, our customers confirm that our experience to perform difficult tasks. experience to perform difficult tasks. experience to perform difficult tasks. intelligent Machine Control models eliminate the need for staking and enable operators with limited intelligent Machine Control models eliminate the need for staking and enable operators with limited We have learned something new after introducing SMARTCONSTRUCTION. By analyzing data concerning We have learned something new after introducing SMARTCONSTRUCTION. By analyzing data concerning experience to perform difficult tasks. experience to perform difficult tasks. machine positions and operations, we have discovered a difference between veteran and new operators in We have learned something new after introducing SMARTCONSTRUCTION. By analyzing data concerning machine positions and operations, we have discovered a difference between veteran and new operators in We have learned something new after introducing SMARTCONSTRUCTION. By analyzing data concerning the amount of time the two groups spent operating intelligent Machine Control models. The difference is machine positions and operations, we have discovered a difference between veteran and new operators in We have learned something new after introducing SMARTCONSTRUCTION. By analyzing data concerning the amount of time the two groups spent operating intelligent Machine Control models. The difference is machine positions and operations, we have discovered a difference between veteran and new operators in attributable to veterans’ jobsite know-how accumulated over the years, for example, where and in which the amount of time the two groups spent operating intelligent Machine Control models. The difference is machine positions and operations, we have discovered a difference between veteran and new operators in attributable to veterans’ jobsite know-how accumulated over the years, for example, where and in which the amount of time the two groups spent operating intelligent Machine Control models. The difference is direction to start work on jobsites. We would like to accumulate such veterans’ expertise in KomConnect and attributable to veterans’ jobsite know-how accumulated over the years, for example, where and in which the amount of time the two groups spent operating intelligent Machine Control models. The difference is direction to start work on jobsites. We would like to accumulate such veterans’ expertise in KomConnect and attributable to veterans’ jobsite know-how accumulated over the years, for example, where and in which direction to start work on jobsites. We would like to accumulate such veterans’ expertise in KomConnect and attributable to veterans’ jobsite know-how accumulated over the years, for example, where and in which provide it to all operators. provide it to all operators. direction to start work on jobsites. We would like to accumulate such veterans’ expertise in KomConnect and direction to start work on jobsites. We would like to accumulate such veterans’ expertise in KomConnect and From veteran operators, we have also received a number of better ways of operating our intelligent Machine From veteran operators, we have also received a number of better ways of operating our intelligent Machine provide it to all operators. Control models. In addition to accumulating and sharing veterans’ jobsite expertise, KomConnect offers a From veteran operators, we have also received a number of better ways of operating our intelligent Machine Control models. In addition to accumulating and sharing veterans’ jobsite expertise, KomConnect offers a From veteran operators, we have also received a number of better ways of operating our intelligent Machine platform to turn the subsequent Kaizen cycle on construction jobsites. Control models. In addition to accumulating and sharing veterans’ jobsite expertise, KomConnect offers a From veteran operators, we have also received a number of better ways of operating our intelligent Machine platform to turn the subsequent Kaizen cycle on construction jobsites. Control models. In addition to accumulating and sharing veterans’ jobsite expertise, KomConnect offers a platform to turn the subsequent Kaizen cycle on construction jobsites. Control models. In addition to accumulating and sharing veterans’ jobsite expertise, KomConnect offers a We also need to listen to customers’ ideas and opinions at jobsites where they are progressing with Kaizen, We also need to listen to customers’ ideas and opinions at jobsites where they are progressing with Kaizen, platform to turn the subsequent Kaizen cycle on construction jobsites. platform to turn the subsequent Kaizen cycle on construction jobsites. and respond to their needs. At the SMARTCONSTRUCTION Support Center, established in February 2015, we We also need to listen to customers’ ideas and opinions at jobsites where they are progressing with Kaizen, and respond to their needs. At the SMARTCONSTRUCTION Support Center, established in February 2015, we We also need to listen to customers’ ideas and opinions at jobsites where they are progressing with Kaizen, have been increasing the number of members with experience of construction and civil engineering, and and respond to their needs. At the SMARTCONSTRUCTION Support Center, established in February 2015, we We also need to listen to customers’ ideas and opinions at jobsites where they are progressing with Kaizen, have been increasing the number of members with experience of construction and civil engineering, and and respond to their needs. At the SMARTCONSTRUCTION Support Center, established in February 2015, we making its operation even more responsive to customers’ needs by working closely with them at jobsites. have been increasing the number of members with experience of construction and civil engineering, and and respond to their needs. At the SMARTCONSTRUCTION Support Center, established in February 2015, we making its operation even more responsive to customers’ needs by working closely with them at jobsites. have been increasing the number of members with experience of construction and civil engineering, and making its operation even more responsive to customers’ needs by working closely with them at jobsites. have been increasing the number of members with experience of construction and civil engineering, and making its operation even more responsive to customers’ needs by working closely with them at jobsites. making its operation even more responsive to customers’ needs by working closely with them at jobsites. provide it to all operators. provide it to all operators. Heading for “Jobsites of the Future” Heading for “Jobsites of the Future” Heading for “Jobsites of the Future” Heading for “Jobsites of the Future” Heading for “Jobsites of the Future” After completion of construction work, customers will have maintenance work at many sites for a long period After completion of construction work, customers will have maintenance work at many sites for a long period of time onward. As all data of construction undertaken by intelligent Machine Control equipment are stored in After completion of construction work, customers will have maintenance work at many sites for a long period of time onward. As all data of construction undertaken by intelligent Machine Control equipment are stored in After completion of construction work, customers will have maintenance work at many sites for a long period KomConnect, we are considering a service to make that data available, as needed, to concerned customers of time onward. As all data of construction undertaken by intelligent Machine Control equipment are stored in After completion of construction work, customers will have maintenance work at many sites for a long period KomConnect, we are considering a service to make that data available, as needed, to concerned customers of time onward. As all data of construction undertaken by intelligent Machine Control equipment are stored in and other people. When their completed jobsites are damaged by natural disaster, we can survey the sites by KomConnect, we are considering a service to make that data available, as needed, to concerned customers of time onward. As all data of construction undertaken by intelligent Machine Control equipment are stored in and other people. When their completed jobsites are damaged by natural disaster, we can survey the sites by KomConnect, we are considering a service to make that data available, as needed, to concerned customers using drones, compare the survey data with the completion data before the damage, and quickly confirm the and other people. When their completed jobsites are damaged by natural disaster, we can survey the sites by KomConnect, we are considering a service to make that data available, as needed, to concerned customers using drones, compare the survey data with the completion data before the damage, and quickly confirm the and other people. When their completed jobsites are damaged by natural disaster, we can survey the sites by areas needed for reconstruction. We believe that we should be able to start reconstruction soon after a using drones, compare the survey data with the completion data before the damage, and quickly confirm the and other people. When their completed jobsites are damaged by natural disaster, we can survey the sites by areas needed for reconstruction. We believe that we should be able to start reconstruction soon after a using drones, compare the survey data with the completion data before the damage, and quickly confirm the disaster by remotely controlling unmanned intelligent Machine Control equipment not too far into the future. areas needed for reconstruction. We believe that we should be able to start reconstruction soon after a using drones, compare the survey data with the completion data before the damage, and quickly confirm the disaster by remotely controlling unmanned intelligent Machine Control equipment not too far into the future. areas needed for reconstruction. We believe that we should be able to start reconstruction soon after a disaster by remotely controlling unmanned intelligent Machine Control equipment not too far into the future. areas needed for reconstruction. We believe that we should be able to start reconstruction soon after a All around the world today, people are looking for new value by connecting machines through the Internet. All around the world today, people are looking for new value by connecting machines through the Internet. disaster by remotely controlling unmanned intelligent Machine Control equipment not too far into the future. disaster by remotely controlling unmanned intelligent Machine Control equipment not too far into the future. This is the so-called Internet of Things (IoT). With this tailwind of IoT, we are striving to evolve All around the world today, people are looking for new value by connecting machines through the Internet. This is the so-called Internet of Things (IoT). With this tailwind of IoT, we are striving to evolve All around the world today, people are looking for new value by connecting machines through the Internet. SMARTCONSTRUCTION to an extent that customers, and the world, will call it Innovation. This is the so-called Internet of Things (IoT). With this tailwind of IoT, we are striving to evolve All around the world today, people are looking for new value by connecting machines through the Internet. SMARTCONSTRUCTION to an extent that customers, and the world, will call it Innovation. This is the so-called Internet of Things (IoT). With this tailwind of IoT, we are striving to evolve SMARTCONSTRUCTION to an extent that customers, and the world, will call it Innovation. This is the so-called Internet of Things (IoT). With this tailwind of IoT, we are striving to evolve SMARTCONSTRUCTION to an extent that customers, and the world, will call it Innovation. SMARTCONSTRUCTION to an extent that customers, and the world, will call it Innovation. INFORMATION INFORMATION INFORMATION Corporate Information Corporate Information INFORMATION Download PDF INFORMATION Download PDF Corporate Information Site Map Corporate Information Download PDF Corporate Information Site Map Download PDF Site Map Download PDF Site Map Site Map For further details, please click here For further details, please click here For further details, please click here Financial conditions: Financial conditions: Securities Report For further details, please click here Securities Report Financial conditions: For further details, please click here Securities Report Financial conditions: Social activities: Financial conditions: Securities Report Social activities: CSR report Securities Report CSR report Social activities: CSR report Social activities: Environmental performance: Social activities: CSR report Environmental performance: Environmental Report Environmental Report Environmental performance: CSR report Environmental Report Environmental performance: Environmental performance: Environmental Report Environmental Report ESG ESG ESG ESG ESG Corporate Governance Corporate Governance Risk Management Corporate Governance Risk Management Environmental Corporate Governance Risk Management Corporate Governance Conservation Efforts Environmental Conservation Efforts Risk Management Environmental Risk Management Corporate Social Conservation Efforts Corporate Social Environmental Responsibility Efforts Environmental Responsibility Efforts Conservation Efforts Corporate Social Conservation Efforts Responsibility Efforts Corporate Social FY2014 PERFORMANCE Corporate Social FY2014 PERFORMANCE Responsibility Efforts Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Consolidated Results / Five-Year Summary FY2014 PERFORMANCE Five-Year Summary FY2014 PERFORMANCE Consolidated Results / Construction, Mining and Five-Year Summary Construction, Mining and Consolidated Results / Utility Equipment Consolidated Results / Utility Equipment Five-Year Summary Construction, Mining and Five-Year Summary Industrial Machinery and Utility Equipment Industrial Machinery and Construction, Mining and Others Construction, Mining and Utility Equipment Industrial Machinery and Others Utility Equipment Industrial Machinery and Industrial Machinery and Others Others Others STRATEGIES STRATEGIES STRATEGIES Growth Strategies Based Growth Strategies Based on Innovation STRATEGIES on Innovation STRATEGIES Growth Strategies Based Introduction to on Innovation Introduction to Growth Strategies Based SMARTCONSTRUCTION Growth Strategies Based SMARTCONSTRUCTION on Innovation Introduction to on Innovation SMARTCONSTRUCTION Introduction to SMARTCONSTRUCTION Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young Jobsite Report 1: Young workers being responsible SMARTCONSTRUCTION workers being responsible SMARTCONSTRUCTION Jobsite Report 1: Young for ICT-intensive for ICT-intensive workers being responsible Jobsite Report 1: Young construction construction Jobsite Report 1: Young for ICT-intensive workers being responsible Jobsite Report 2: Together workers being responsible Jobsite Report 2: Together for ICT-intensive construction with veteran operators for ICT-intensive construction with veteran operators Jobsite Report 2: Together construction Jobsite Report 3: Looking with veteran operators Jobsite Report 3: Looking Jobsite Report 2: Together forward to the future of Jobsite Report 2: Together forward to the future of with veteran operators Jobsite Report 3: Looking intelligent Machine Control with veteran operators intelligent Machine Control forward to the future of Jobsite Report 3: Looking equipment Jobsite Report 3: Looking intelligent Machine Control forward to the future of equipment equipment forward to the future of intelligent Machine Control intelligent Machine Control MANAGEMENT MANAGEMENT equipment equipment MANAGEMENT To All Our Stakeholders To All Our Stakeholders MANAGEMENT Interview with the MANAGEMENT To All Our Stakeholders Interview with the President President To All Our Stakeholders Interview with the To All Our Stakeholders President Interview with the Interview with the President President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Strategies Introduction to SMARTCONSTRUCTION “KomConnect”: Connecting everything on the jobsites High-precision survey and development of construction plans What we have learned from “SMARTCONSTRUCTION” jobsites Heading for “Jobsites of the Future” Chikashi Shike President Smart Construction Promotion Division Since June, 2013, when we launched the D61PXi-23 intelligent Machine Control bulldozers, we have discussed what kind of new value we can provide to customers with our intelligent Machine Control models. They can not only achieve high-precision construction but also shorten the period of construction by streamlining works before and after the construction phase. SMARTCONSTRUCTION packages these benefits with rental equipment. We embarked on this new business initially in Japan in February 2015. D61PXi-23 intelligent Machine Control bulldozer launched in June, 2013 PC210LCi-10 intelligent Machine Control hydraulic excavator (overseas specs) launched in October, 2014 “KomConnect”: Connecting everything on the jobsites Through ICT, SMARTCONSTRUCTION connects all jobsite information concerning not only construction equipment but also people, machines and the ground, that are involved in construction in all phases from pre-construction to completion. Our “KomConnect” is a cloud-based software service, a platform connecting all the information. By storing a massive amount of information concerning construction activities, we engage in analyses, simulations and proposals. This information can be accessed by all concerned people via the Internet, anywhere, at anytime. Now, please enjoy our video presentation of SMARTCONSTRUCTION. High-precision survey and development of construction plans When our customers of construction and civil engineering receive a contract for construction and obtain completion drawings from their clients, they survey the jobsites before construction, compare that survey data with the completion drawings to determine what needs to be done and then develop construction plans. Typically, surveying takes two surveyors who can survey a few hundred points a day. As those points are located a few meters away from each other, the surveyors repeat the same task as they move on the jobsite. In some cases, construction companies compare 2-D survey drawings with completion drawings and then estimate their work, which can often result in big mistakes in actual work volume. We believe we can propose a new way of surveying by using leading-edge ICT, for example, the use of survey-specific drones made by Skycatch. Under ideal conditions, drones can automatically fly over the jobsites for about 15 minutes at each flight, surveying a few million points a few centimeters away from each other. If needed, we can also laser scan the sites for high-precision 3-D surveys. While surveying the sites, we receive the contract from customers to convert their 2-D completion drawings into 3-D drawings. The differences between these 3-D drawings and 3-D survey data represent the areas where their work is needed. “KomConnect” enables customers to have an accurate understanding of the areas, shape and volume of earth to work on, prior to construction work. Then, we transfer these data to intelligent Machine Control machines, set up the machines at job sites, and enable customers to engage in high-precision earthmoving work without stakes . * *Stakes: Wooden sticks designed to guide machine operators for cutting and filling earth. Placed at equal distances, each stake consists of smaller sticks in horizontal and angled positions for guidance. What we have learned from SMARTCONSTRUCTION jobsites KOMATSU REPORT 2015 Introduction to SMARTCONSTRUCTION 10 KOMATSU INNOVATION FOR THE FUTURE We have already deployed some 350 units of intelligent Machine Control equipment at about 800 construction sites in Japan. As you will watch in a video later in this section, our customers confirm that our intelligent Machine Control models eliminate the need for staking and enable operators with limited experience to perform difficult tasks. We have learned something new after introducing SMARTCONSTRUCTION. By analyzing data concerning machine positions and operations, we have discovered a difference between veteran and new operators in the amount of time the two groups spent operating intelligent Machine Control models. The difference is attributable to veterans’ jobsite know-how accumulated over the years, for example, where and in which direction to start work on jobsites. We would like to accumulate such veterans’ expertise in KomConnect and provide it to all operators. From veteran operators, we have also received a number of better ways of operating our intelligent Machine Control models. In addition to accumulating and sharing veterans’ jobsite expertise, KomConnect offers a platform to turn the subsequent Kaizen cycle on construction jobsites. We also need to listen to customers’ ideas and opinions at jobsites where they are progressing with Kaizen, and respond to their needs. At the SMARTCONSTRUCTION Support Center, established in February 2015, we have been increasing the number of members with experience of construction and civil engineering, and making its operation even more responsive to customers’ needs by working closely with them at jobsites. Heading for “Jobsites of the Future” After completion of construction work, customers will have maintenance work at many sites for a long period of time onward. As all data of construction undertaken by intelligent Machine Control equipment are stored in KomConnect, we are considering a service to make that data available, as needed, to concerned customers and other people. When their completed jobsites are damaged by natural disaster, we can survey the sites by using drones, compare the survey data with the completion data before the damage, and quickly confirm the areas needed for reconstruction. We believe that we should be able to start reconstruction soon after a disaster by remotely controlling unmanned intelligent Machine Control equipment not too far into the future. All around the world today, people are looking for new value by connecting machines through the Internet. This is the so-called Internet of Things (IoT). With this tailwind of IoT, we are striving to evolve SMARTCONSTRUCTION to an extent that customers, and the world, will call it Innovation. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction KOMATSU REPORT 2015 SMARTCONSTRUCTION on the move in Japan: Jobsite Report 1 Jobsite Report 1: Young workers being responsible for ICT-intensive construction 11 SMARTCONSTRUCTION WITH A FUTURE Young workers being responsible for ICT-intensive Report 1: Jobsite construction Young workers being responsible for ICT-intensive construction Nakano Construction Co., Ltd. (Asakura City, Fukuoka Prefecture) Jobsite location: Kama City, Fukuoka Prefecture Time: May 2015 The jobsite of preparing the ground by leveling it for solar panels of Shikasyo Solar Power Generation Co., Ltd. is situated in the mountains about one and half hours away by car, south east of Fukuoka Airport. The first phase of the construction project is underway, which calls for the installation of solar panels on a wide open space of about 300,000 m on the former golf course. 2 D61PXi PC200i Nakano Construction Co., Ltd. (President: Mr. Takayuki Nakano), headquartered in Asakura City, has contracted the ground preparation work of the site after trees and bushes were cleared. The job calls for leveling and graveling the site. We saw that two intelligent Machine Control units, D61PXi and PC200i, and a HB205 hybrid hydraulic excavator were in operation. There was a roller to finish the work. Mr. Nakano told us that he saw some wild pigs and deer, when they started work there. After observing the site, Mr. Nakano suggested that the contractor design a change to make the finished surface declined at an angle of one to two degrees towards the valley and to ensure good drainage. The conventional method would have required staking at a distance of 10 meters coupled with string leveling. Then, bulldozers would need to be operated according to the instructions shown on stakes and strings. “Even so, it would be impossible with conventional dozers, because we cannot see an angle of one to two degrees. But I was confident that we could do it with the intelligent Machine Control dozer,” says Mr. Nakano. He also predicts that they should be able to shorten the construction period by one month. Digitalization of the completion drawings was undertaken by the Kurume Branch of Komatsu Rental Ltd. Their service group input all data of the slope, which surrounds the site, into the PC200i. The service leader often visits the site and directly answers the operators’ questions. [Interview] Mr. Takayuki Nakano, Nakano Construction Co., Ltd. President He grew up in a family of the construction business, so construction equipment was always around and he has been operating bulldozers for quite a while. In fact, he is the only one veteran operator of bulldozers in the company. However, he lets young operators operate both the intelligent Machine Control dozer and hydraulic excavator. At the jobsite, he was comfortably looking at the intelligent Machine Control dozer being operated by a young employee. We asked him if he would like to operate the machine and show his veteran skills to young employees. His reply was simply, “No.” To our question of why not, he explained, “it’s because when I see the movements of the dozer, I feel as if I were operating it.” While the amount of construction is growing, labor shortage is also a serious problem in Kyushu. As civil engineering is perceived as demanding, dirty and dangerous work, young people are attracted to smart jobs in metropolitan areas. Even if someone decides to work in the industry, it takes a long time before he is recognized as a full-fledged operator. Even Mr. Nakano, who entrusts young people with the work, has a big hope for SMARTCONSTRUCTION to change this typical perception concerning the industry. It might be not too far ahead before we see female operators on jobsites, according to him. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction SMARTCONSTRUCTION on the move in Japan: Jobsite Report 1 Young workers being responsible for ICT-intensive construction Nakano Construction Co., Ltd. (Asakura City, Fukuoka Prefecture) Jobsite location: Kama City, Fukuoka Prefecture Time: May 2015 The jobsite of preparing the ground by leveling it for solar panels of Shikasyo Solar Power Generation Co., Ltd. is situated in the mountains about one and half hours away by car, south east of Fukuoka Airport. The first phase of the construction project is underway, which calls for the installation of solar panels on a wide open space of about 300,000 m on the former golf course. 2 D61PXi PC200i Nakano Construction Co., Ltd. (President: Mr. Takayuki Nakano), headquartered in Asakura City, has contracted the ground preparation work of the site after trees and bushes were cleared. The job calls for leveling and graveling the site. We saw that two intelligent Machine Control units, D61PXi and PC200i, and a HB205 hybrid hydraulic excavator were in operation. There was a roller to finish the work. Mr. Nakano told us that he saw some wild pigs and deer, when they started work there. After observing the site, Mr. Nakano suggested that the contractor design a change to make the finished surface declined at an angle of one to two degrees towards the valley and to ensure good drainage. The conventional method would have required staking at a distance of 10 meters coupled with string leveling. Then, bulldozers would need to be operated according to the instructions shown on stakes and strings. “Even so, it would be impossible with conventional dozers, because we cannot see an angle of one to two degrees. But I was confident that we could do it with the intelligent Machine Control dozer,” says Mr. Nakano. He also predicts that they should be able to shorten the construction period by one month. Digitalization of the completion drawings was undertaken by the Kurume Branch of Komatsu Rental Ltd. Their service group input all data of the slope, which surrounds the site, into the PC200i. The service leader often visits the site and directly answers the operators’ questions. KOMATSU REPORT 2015 Jobsite Report 1: Young workers being responsible for ICT-intensive construction 12 SMARTCONSTRUCTION WITH A FUTURE [Interview] Mr. Takayuki Nakano, Nakano Construction Co., Ltd. President He grew up in a family of the construction business, so construction equipment was always around and he has been operating bulldozers for quite a while. In fact, he is the only one veteran operator of bulldozers in the company. However, he lets young operators operate both the intelligent Machine Control dozer and hydraulic excavator. At the jobsite, he was comfortably looking at the intelligent Machine Control dozer being operated by a young employee. We asked him if he would like to operate the machine and show his veteran skills to young employees. His reply was simply, “No.” To our question of why not, he explained, “it’s because when I see the movements of the dozer, I feel as if I were operating it.” While the amount of construction is growing, labor shortage is also a serious problem in Kyushu. As civil engineering is perceived as demanding, dirty and dangerous work, young people are attracted to smart jobs in metropolitan areas. Even if someone decides to work in the industry, it takes a long time before he is recognized as a full-fledged operator. Even Mr. Nakano, who entrusts young people with the work, has a big hope for SMARTCONSTRUCTION to change this typical perception concerning the industry. It might be not too far ahead before we see female operators on jobsites, according to him. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 SMARTCONSTRUCTION Jobsite Report 2: Together with veteran operators SMARTCONSTRUCTION Jobsite Report 2: Together with veteran operators KOMATSU REPORT 2015 SMARTCONSTRUCTION on the move in Japan: Jobsite Report 2 SMARTCONSTRUCTION on the move in Japan: Jobsite Report 2 SMARTCONSTRUCTION WITH A FUTURE Jobsite Report 2: Together with veteran operators 13 Together with veteran operators Report 2: Jobsite Together with veteran operators Together with veteran operators Goto Construction Co., Ltd. (Minamisoma City, Fukushima Prefecture) Goto Construction Co., Ltd. (Minamisoma City, Fukushima Prefecture) Jobsite location: Minamisoma City, Fukushima Prefecture Jobsite location: Minamisoma City, Fukushima Prefecture Time: May 2015 Time: May 2015 Recovery from the Great East Japan Earthquake and subsequent tsunami (March 11, 2011) was continuing in Recovery from the Great East Japan Earthquake and subsequent tsunami (March 11, 2011) was continuing in May 2015 when we visited Minamisoma City, as evidenced by the busy traffic of dump trucks on the main May 2015 when we visited Minamisoma City, as evidenced by the busy traffic of dump trucks on the main streets. streets. Mano River (class B) was critically damaged by the catastrophic disaster. Mr. Masahiro Takahashi, General Mano River (class B) was critically damaged by the catastrophic disaster. Mr. Masahiro Takahashi, General Manager of the Civil Engineering Department, Goto Construction, says, “In some places, the river Manager of the Civil Engineering Department, Goto Construction, says, “In some places, the river embankment dropped by 70 cm,” pointing at the drawing. “We are responsible for rebuilding the embankment dropped by 70 cm,” pointing at the drawing. “We are responsible for rebuilding the embankment on two sides of the river by filling earth where it was damaged.” embankment on two sides of the river by filling earth where it was damaged.” The area of construction spans 3 km upstream from the river mouth. While this work normally requires three The area of construction spans 3 km upstream from the river mouth. While this work normally requires three to four years of construction, they only have about one year and half. As a means to shorten the period of to four years of construction, they only have about one year and half. As a means to shorten the period of construction, the Soma Branch of Komatsu Rental Co., Ltd. proposed the use of intelligent Machine Control construction, the Soma Branch of Komatsu Rental Co., Ltd. proposed the use of intelligent Machine Control equipment. Goto Construction first deployed a D61PXi intelligent Machine Control dozer, then a PC200i equipment. Goto Construction first deployed a D61PXi intelligent Machine Control dozer, then a PC200i intelligent Machine Control hydraulic excavator in January, followed by another one in April this year. intelligent Machine Control hydraulic excavator in January, followed by another one in April this year. [Interviews] [Interviews] Mr. Masahiro Takahashi, Mr. Masahiro Takahashi, General Manager of the Civil Engineering Department, General Manager of the Civil Engineering Department, Goto Construction Co., Ltd. Goto Construction Co., Ltd. Mr. Hidehiro Goto, Mr. Hidehiro Goto, Manager of the Sales Department, Manager of the Sales Department, Goto Construction Co., Ltd. Goto Construction Co., Ltd. SMARTCONSTRUCTION has eliminated the need for staking, worries over damaging the stakes while SMARTCONSTRUCTION has eliminated the need for staking, worries over damaging the stakes while operating machines, and the need for re-surveying when the stakes are moved by rain- or snow-fall. Mr. operating machines, and the need for re-surveying when the stakes are moved by rain- or snow-fall. Mr. Takahashi adds, "There will be a larger merit of shortening the period of construction, if inspection surveys Takahashi adds, "There will be a larger merit of shortening the period of construction, if inspection surveys and modification work become less." and modification work become less." There are a number of veteran operators at the jobsite. According to him, there is no significant difference There are a number of veteran operators at the jobsite. According to him, there is no significant difference between intelligent Machine Control hydraulic excavators and conventional ones, with respect to the speed of between intelligent Machine Control hydraulic excavators and conventional ones, with respect to the speed of work. When cutting benches or sloping, the veteran operators might sometimes cut earth all the way to the work. When cutting benches or sloping, the veteran operators might sometimes cut earth all the way to the design surface or cut just a little by little by considering the type of soil and capitalizing on the wealth of their design surface or cut just a little by little by considering the type of soil and capitalizing on the wealth of their experience. All in all, they know the optimal way of using their machines. They can easily perform a difficult experience. All in all, they know the optimal way of using their machines. They can easily perform a difficult task of pressing earth by using the backside of the bucket. Mr. Takahashi points out, "I understand that task of pressing earth by using the backside of the bucket. Mr. Takahashi points out, "I understand that operators are free of worries, because the PC200i will not cut further into the design surface. However, it operators are free of worries, because the PC200i will not cut further into the design surface. However, it should be improved more in some aspects in order to satisfy the veterans." should be improved more in some aspects in order to satisfy the veterans." Along the sea coast, not far from the river embankment, the site preparation work is in full swing for planting Along the sea coast, not far from the river embankment, the site preparation work is in full swing for planting pine trees to reduce the wind and tide forces. They are bringing in soil and building mounds where the trees pine trees to reduce the wind and tide forces. They are bringing in soil and building mounds where the trees will be planted. To reinforce its capacity against high tides and strong winds, the width of a new forest will be will be planted. To reinforce its capacity against high tides and strong winds, the width of a new forest will be twice as big as the old one before the disaster. Goto Construction is also responsible for this construction. twice as big as the old one before the disaster. Goto Construction is also responsible for this construction. One completed mound measures 10,000 m in top surface area and some two meters in height. In the One completed mound measures 10,000 m in top surface area and some two meters in height. In the 2 2 conventional method, staking alone would require about one week. By deploying intelligent Machine Control conventional method, staking alone would require about one week. By deploying intelligent Machine Control equipment, they became free of staking. As a result, pre-earthmoving work was reduced to only one day. equipment, they became free of staking. As a result, pre-earthmoving work was reduced to only one day. To strengthen embankments and dikes, their slopes are first cut like steps of the staircase, which is called To strengthen embankments and dikes, their slopes are first cut like steps of the staircase, which is called bench cutting. Then, earth is placed on the steps and pressed hard before sloping. While intelligent Machine bench cutting. Then, earth is placed on the steps and pressed hard before sloping. While intelligent Machine Control excavators can offer high-precision automatic controls of the position of bucket teeth, "troweling" of Control excavators can offer high-precision automatic controls of the position of bucket teeth, "troweling" of the surface requires operators' skills by using the flat bottom of buckets. the surface requires operators' skills by using the flat bottom of buckets. Mr. Hachiro Oouchi (65), operating a PC200i hydraulic excavator, is a veteran of 32 years of experience. Mr. Hachiro Oouchi (65), operating a PC200i hydraulic excavator, is a veteran of 32 years of experience. Although he felt, in the beginning, he would be able to work faster with a conventional excavator, he tested Although he felt, in the beginning, he would be able to work faster with a conventional excavator, he tested the intelligent Machine Control excavator by trying many different tasks in order to learn its capabilities. It the intelligent Machine Control excavator by trying many different tasks in order to learn its capabilities. It took about three months for him to fully appreciate them. took about three months for him to fully appreciate them. Mr. Oouchi praises the precision of intelligent Machine Control equipment. Mr. Oouchi praises the precision of intelligent Machine Control equipment. "You know our vision is not reliable," he says from experience. According to him, however veteran you "You know our vision is not reliable," he says from experience. According to him, however veteran you become, you just cannot make a perfect straight line horizontally. Similarly, when it comes to making a very become, you just cannot make a perfect straight line horizontally. Similarly, when it comes to making a very slight angle by bulldozers, it's just impossible, even for veterans. He added, "While I want Komatsu to further slight angle by bulldozers, it's just impossible, even for veterans. He added, "While I want Komatsu to further refine intelligent Machine Control models, we also need to get used to them. Once we are able to take full refine intelligent Machine Control models, we also need to get used to them. Once we are able to take full advantage of what they can do, we’ll be able do some work for which we cannot rely on our vision. That's advantage of what they can do, we’ll be able do some work for which we cannot rely on our vision. That's truly wonderful." truly wonderful." INFORMATION INFORMATION Corporate Information Corporate Information Download PDF Download PDF Site Map Site Map For further details, please click here For further details, please click here Financial conditions: Financial conditions: Securities Report Securities Report Social activities: Social activities: CSR report CSR report Environmental performance: Environmental performance: Environmental Report Environmental Report Corporate Governance Corporate Governance Risk Management Risk Management Environmental Environmental Conservation Efforts Conservation Efforts Corporate Social Corporate Social Responsibility Efforts Responsibility Efforts FY2014 PERFORMANCE FY2014 PERFORMANCE Consolidated Results / Consolidated Results / Five-Year Summary Five-Year Summary Construction, Mining and Construction, Mining and Utility Equipment Utility Equipment Industrial Machinery and Industrial Machinery and Others Others STRATEGIES STRATEGIES ESG ESG Growth Strategies Based Growth Strategies Based on Innovation on Innovation Introduction to Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young Jobsite Report 1: Young workers being responsible workers being responsible for ICT-intensive for ICT-intensive construction construction Jobsite Report 2: Together Jobsite Report 2: Together with veteran operators with veteran operators Jobsite Report 3: Looking Jobsite Report 3: Looking forward to the future of forward to the future of intelligent Machine Control intelligent Machine Control equipment equipment MANAGEMENT MANAGEMENT To All Our Stakeholders To All Our Stakeholders Interview with the Interview with the President President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 SMARTCONSTRUCTION Jobsite Report 2: Together with veteran operators KOMATSU REPORT 2015 SMARTCONSTRUCTION Jobsite Report 2: Together with veteran operators KOMATSU REPORT 2015 SMARTCONSTRUCTION Jobsite Report 2: Together with veteran operators SMARTCONSTRUCTION on the move in Japan: Jobsite Report 2 SMARTCONSTRUCTION on the move in Japan: Jobsite Report 2 SMARTCONSTRUCTION on the move in Japan: Jobsite Report 2 Together with veteran operators Together with veteran operators Together with veteran operators Goto Construction Co., Ltd. (Minamisoma City, Fukushima Prefecture) Goto Construction Co., Ltd. (Minamisoma City, Fukushima Prefecture) Jobsite location: Minamisoma City, Fukushima Prefecture Goto Construction Co., Ltd. (Minamisoma City, Fukushima Prefecture) Jobsite location: Minamisoma City, Fukushima Prefecture Time: May 2015 Jobsite location: Minamisoma City, Fukushima Prefecture Time: May 2015 Time: May 2015 Recovery from the Great East Japan Earthquake and subsequent tsunami (March 11, 2011) was continuing in Recovery from the Great East Japan Earthquake and subsequent tsunami (March 11, 2011) was continuing in May 2015 when we visited Minamisoma City, as evidenced by the busy traffic of dump trucks on the main Recovery from the Great East Japan Earthquake and subsequent tsunami (March 11, 2011) was continuing in May 2015 when we visited Minamisoma City, as evidenced by the busy traffic of dump trucks on the main May 2015 when we visited Minamisoma City, as evidenced by the busy traffic of dump trucks on the main Mano River (class B) was critically damaged by the catastrophic disaster. Mr. Masahiro Takahashi, General streets. streets. streets. Mano River (class B) was critically damaged by the catastrophic disaster. Mr. Masahiro Takahashi, General Manager of the Civil Engineering Department, Goto Construction, says, “In some places, the river Mano River (class B) was critically damaged by the catastrophic disaster. Mr. Masahiro Takahashi, General Manager of the Civil Engineering Department, Goto Construction, says, “In some places, the river embankment dropped by 70 cm,” pointing at the drawing. “We are responsible for rebuilding the Manager of the Civil Engineering Department, Goto Construction, says, “In some places, the river embankment dropped by 70 cm,” pointing at the drawing. “We are responsible for rebuilding the embankment on two sides of the river by filling earth where it was damaged.” embankment dropped by 70 cm,” pointing at the drawing. “We are responsible for rebuilding the embankment on two sides of the river by filling earth where it was damaged.” The area of construction spans 3 km upstream from the river mouth. While this work normally requires three embankment on two sides of the river by filling earth where it was damaged.” The area of construction spans 3 km upstream from the river mouth. While this work normally requires three to four years of construction, they only have about one year and half. As a means to shorten the period of The area of construction spans 3 km upstream from the river mouth. While this work normally requires three to four years of construction, they only have about one year and half. As a means to shorten the period of construction, the Soma Branch of Komatsu Rental Co., Ltd. proposed the use of intelligent Machine Control to four years of construction, they only have about one year and half. As a means to shorten the period of construction, the Soma Branch of Komatsu Rental Co., Ltd. proposed the use of intelligent Machine Control equipment. Goto Construction first deployed a D61PXi intelligent Machine Control dozer, then a PC200i construction, the Soma Branch of Komatsu Rental Co., Ltd. proposed the use of intelligent Machine Control equipment. Goto Construction first deployed a D61PXi intelligent Machine Control dozer, then a PC200i intelligent Machine Control hydraulic excavator in January, followed by another one in April this year. equipment. Goto Construction first deployed a D61PXi intelligent Machine Control dozer, then a PC200i intelligent Machine Control hydraulic excavator in January, followed by another one in April this year. intelligent Machine Control hydraulic excavator in January, followed by another one in April this year. [Interviews] Mr. Masahiro Takahashi, [Interviews] Mr. Masahiro Takahashi, [Interviews] Goto Construction Co., Ltd. General Manager of the Civil Engineering Department, General Manager of the Civil Engineering Department, Mr. Masahiro Takahashi, General Manager of the Civil Engineering Department, Goto Construction Co., Ltd. Mr. Hidehiro Goto, Goto Construction Co., Ltd. Manager of the Sales Department, Mr. Hidehiro Goto, Goto Construction Co., Ltd. Manager of the Sales Department, Mr. Hidehiro Goto, Manager of the Sales Department, Goto Construction Co., Ltd. Goto Construction Co., Ltd. SMARTCONSTRUCTION has eliminated the need for staking, worries over damaging the stakes while SMARTCONSTRUCTION has eliminated the need for staking, worries over damaging the stakes while operating machines, and the need for re-surveying when the stakes are moved by rain- or snow-fall. Mr. SMARTCONSTRUCTION has eliminated the need for staking, worries over damaging the stakes while operating machines, and the need for re-surveying when the stakes are moved by rain- or snow-fall. Mr. Takahashi adds, "There will be a larger merit of shortening the period of construction, if inspection surveys operating machines, and the need for re-surveying when the stakes are moved by rain- or snow-fall. Mr. Takahashi adds, "There will be a larger merit of shortening the period of construction, if inspection surveys and modification work become less." Takahashi adds, "There will be a larger merit of shortening the period of construction, if inspection surveys and modification work become less." There are a number of veteran operators at the jobsite. According to him, there is no significant difference and modification work become less." There are a number of veteran operators at the jobsite. According to him, there is no significant difference between intelligent Machine Control hydraulic excavators and conventional ones, with respect to the speed of There are a number of veteran operators at the jobsite. According to him, there is no significant difference between intelligent Machine Control hydraulic excavators and conventional ones, with respect to the speed of work. When cutting benches or sloping, the veteran operators might sometimes cut earth all the way to the between intelligent Machine Control hydraulic excavators and conventional ones, with respect to the speed of work. When cutting benches or sloping, the veteran operators might sometimes cut earth all the way to the design surface or cut just a little by little by considering the type of soil and capitalizing on the wealth of their work. When cutting benches or sloping, the veteran operators might sometimes cut earth all the way to the design surface or cut just a little by little by considering the type of soil and capitalizing on the wealth of their experience. All in all, they know the optimal way of using their machines. They can easily perform a difficult KOMATSU REPORT 2015 SMARTCONSTRUCTION WITH A FUTURE Jobsite Report 2: Together with veteran operators design surface or cut just a little by little by considering the type of soil and capitalizing on the wealth of their experience. All in all, they know the optimal way of using their machines. They can easily perform a difficult task of pressing earth by using the backside of the bucket. Mr. Takahashi points out, "I understand that experience. All in all, they know the optimal way of using their machines. They can easily perform a difficult task of pressing earth by using the backside of the bucket. Mr. Takahashi points out, "I understand that operators are free of worries, because the PC200i will not cut further into the design surface. However, it task of pressing earth by using the backside of the bucket. Mr. Takahashi points out, "I understand that operators are free of worries, because the PC200i will not cut further into the design surface. However, it should be improved more in some aspects in order to satisfy the veterans." operators are free of worries, because the PC200i will not cut further into the design surface. However, it should be improved more in some aspects in order to satisfy the veterans." Along the sea coast, not far from the river embankment, the site preparation work is in full swing for planting should be improved more in some aspects in order to satisfy the veterans." Along the sea coast, not far from the river embankment, the site preparation work is in full swing for planting pine trees to reduce the wind and tide forces. They are bringing in soil and building mounds where the trees Along the sea coast, not far from the river embankment, the site preparation work is in full swing for planting pine trees to reduce the wind and tide forces. They are bringing in soil and building mounds where the trees will be planted. To reinforce its capacity against high tides and strong winds, the width of a new forest will be pine trees to reduce the wind and tide forces. They are bringing in soil and building mounds where the trees will be planted. To reinforce its capacity against high tides and strong winds, the width of a new forest will be twice as big as the old one before the disaster. Goto Construction is also responsible for this construction. will be planted. To reinforce its capacity against high tides and strong winds, the width of a new forest will be twice as big as the old one before the disaster. Goto Construction is also responsible for this construction. One completed mound measures 10,000 m in top surface area and some two meters in height. In the twice as big as the old one before the disaster. Goto Construction is also responsible for this construction. One completed mound measures 10,000 m in top surface area and some two meters in height. In the conventional method, staking alone would require about one week. By deploying intelligent Machine Control One completed mound measures 10,000 m in top surface area and some two meters in height. In the conventional method, staking alone would require about one week. By deploying intelligent Machine Control equipment, they became free of staking. As a result, pre-earthmoving work was reduced to only one day. conventional method, staking alone would require about one week. By deploying intelligent Machine Control equipment, they became free of staking. As a result, pre-earthmoving work was reduced to only one day. equipment, they became free of staking. As a result, pre-earthmoving work was reduced to only one day. 2 2 2 14 To strengthen embankments and dikes, their slopes are first cut like steps of the staircase, which is called bench cutting. Then, earth is placed on the steps and pressed hard before sloping. While intelligent Machine To strengthen embankments and dikes, their slopes are first cut like steps of the staircase, which is called Control excavators can offer high-precision automatic controls of the position of bucket teeth, "troweling" of bench cutting. Then, earth is placed on the steps and pressed hard before sloping. While intelligent Machine To strengthen embankments and dikes, their slopes are first cut like steps of the staircase, which is called the surface requires operators' skills by using the flat bottom of buckets. Control excavators can offer high-precision automatic controls of the position of bucket teeth, "troweling" of bench cutting. Then, earth is placed on the steps and pressed hard before sloping. While intelligent Machine the surface requires operators' skills by using the flat bottom of buckets. Control excavators can offer high-precision automatic controls of the position of bucket teeth, "troweling" of the surface requires operators' skills by using the flat bottom of buckets. Mr. Hachiro Oouchi (65), operating a PC200i hydraulic excavator, is a veteran of 32 years of experience. Mr. Hachiro Oouchi (65), operating a PC200i hydraulic excavator, is a veteran of 32 years of experience. Although he felt, in the beginning, he would be able to work faster with a conventional excavator, he tested Mr. Hachiro Oouchi (65), operating a PC200i hydraulic excavator, is a veteran of 32 years of experience. Although he felt, in the beginning, he would be able to work faster with a conventional excavator, he tested the intelligent Machine Control excavator by trying many different tasks in order to learn its capabilities. It Although he felt, in the beginning, he would be able to work faster with a conventional excavator, he tested the intelligent Machine Control excavator by trying many different tasks in order to learn its capabilities. It took about three months for him to fully appreciate them. the intelligent Machine Control excavator by trying many different tasks in order to learn its capabilities. It took about three months for him to fully appreciate them. took about three months for him to fully appreciate them. Mr. Oouchi praises the precision of intelligent Machine Control equipment. Mr. Oouchi praises the precision of intelligent Machine Control equipment. Mr. Oouchi praises the precision of intelligent Machine Control equipment. "You know our vision is not reliable," he says from experience. According to him, however veteran you "You know our vision is not reliable," he says from experience. According to him, however veteran you become, you just cannot make a perfect straight line horizontally. Similarly, when it comes to making a very "You know our vision is not reliable," he says from experience. According to him, however veteran you become, you just cannot make a perfect straight line horizontally. Similarly, when it comes to making a very slight angle by bulldozers, it's just impossible, even for veterans. He added, "While I want Komatsu to further become, you just cannot make a perfect straight line horizontally. Similarly, when it comes to making a very slight angle by bulldozers, it's just impossible, even for veterans. He added, "While I want Komatsu to further refine intelligent Machine Control models, we also need to get used to them. Once we are able to take full slight angle by bulldozers, it's just impossible, even for veterans. He added, "While I want Komatsu to further refine intelligent Machine Control models, we also need to get used to them. Once we are able to take full advantage of what they can do, we’ll be able do some work for which we cannot rely on our vision. That's refine intelligent Machine Control models, we also need to get used to them. Once we are able to take full advantage of what they can do, we’ll be able do some work for which we cannot rely on our vision. That's truly wonderful." advantage of what they can do, we’ll be able do some work for which we cannot rely on our vision. That's truly wonderful." truly wonderful." INFORMATION INFORMATION Corporate Information INFORMATION Corporate Information Download PDF Corporate Information Download PDF Site Map Download PDF Site Map Site Map For further details, please click here For further details, please click here Financial conditions: For further details, please click here Securities Report Financial conditions: Securities Report Financial conditions: Social activities: Securities Report CSR report Social activities: CSR report Social activities: Environmental performance: CSR report Environmental Report Environmental performance: Environmental Report Environmental performance: Environmental Report ESG ESG ESG Corporate Governance Corporate Governance Risk Management Corporate Governance Risk Management Environmental Conservation Efforts Risk Management Environmental Conservation Efforts Corporate Social Environmental Responsibility Efforts Conservation Efforts Corporate Social Responsibility Efforts Corporate Social FY2014 PERFORMANCE Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / FY2014 PERFORMANCE Five-Year Summary Consolidated Results / Five-Year Summary Construction, Mining and Consolidated Results / Utility Equipment Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Construction, Mining and Others Utility Equipment Industrial Machinery and Others Industrial Machinery and Others STRATEGIES STRATEGIES Growth Strategies Based STRATEGIES on Innovation Growth Strategies Based on Innovation Introduction to Growth Strategies Based SMARTCONSTRUCTION on Innovation Introduction to SMARTCONSTRUCTION Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young SMARTCONSTRUCTION workers being responsible Jobsite Report 1: Young for ICT-intensive workers being responsible Jobsite Report 1: Young construction for ICT-intensive workers being responsible construction Jobsite Report 2: Together for ICT-intensive construction with veteran operators Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking Jobsite Report 2: Together forward to the future of with veteran operators Jobsite Report 3: Looking intelligent Machine Control forward to the future of Jobsite Report 3: Looking intelligent Machine Control forward to the future of equipment equipment intelligent Machine Control MANAGEMENT equipment MANAGEMENT To All Our Stakeholders MANAGEMENT To All Our Stakeholders Interview with the President To All Our Stakeholders Interview with the President Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment SMARTCONSTRUCTION KOMATSU REPORT 2015 Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment SMARTCONSTRUCTION WITH A FUTURE SMARTCONSTRUCTION on the move in Japan: Jobsite Report 3 SMARTCONSTRUCTION on the move in Japan: Jobsite Report 3 KOMATSU REPORT 2015 SMARTCONSTRUCTION on the move in Japan: Jobsite Report 3 Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment Looking forward to the future of intelligent Machine Looking forward to the future of intelligent Machine Control equipment Looking forward to the future of intelligent Machine Control equipment Report 3: Jobsite Control equipment Kamitake Construction Co., Ltd. (Ikoma City, Nara Prefecture) Kamitake Construction Co., Ltd. (Ikoma City, Nara Prefecture) Jobsite location: Gamou District, Shiga Prefecture Jobsite location: Gamou District, Shiga Prefecture Kamitake Construction Co., Ltd. (Ikoma City, Nara Prefecture) Time: June 2015 Time: June 2015 Jobsite location: Gamou District, Shiga Prefecture Looking forward to the future of intelligent Machine Control equipment 15 Time: June 2015 The ground preparation of Ryuo Industrial Park is in full swing near the Ryuo Interchange of Meishin The ground preparation of Ryuo Industrial Park is in full swing near the Ryuo Interchange of Meishin Expressway in Gamou District, Shiga Prefecture. With a total area of 52.6 hectares, it is one of the largest- The ground preparation of Ryuo Industrial Park is in full swing near the Ryuo Interchange of Meishin Expressway in Gamou District, Shiga Prefecture. With a total area of 52.6 hectares, it is one of the largest- scale ongoing civil engineering projects in Japan. Expressway in Gamou District, Shiga Prefecture. With a total area of 52.6 hectares, it is one of the largest- scale ongoing civil engineering projects in Japan. Kamitake Construction Co., Ltd., headquartered in Ikoma City, Nara Prefecture, was about to finish the first scale ongoing civil engineering projects in Japan. Kamitake Construction Co., Ltd., headquartered in Ikoma City, Nara Prefecture, was about to finish the first ground preparation phase of 15 hectares. Two dozers, D61PXi and D65PXi, are deployed on the site. The Kamitake Construction Co., Ltd., headquartered in Ikoma City, Nara Prefecture, was about to finish the first ground preparation phase of 15 hectares. Two dozers, D61PXi and D65PXi, are deployed on the site. The D65PXi was in operation. ground preparation phase of 15 hectares. Two dozers, D61PXi and D65PXi, are deployed on the site. The D65PXi was in operation. Mr. Toshio Uenishi, with six years of experience in operating bulldozers, says that thanks to no stakes, the D65PXi was in operation. Mr. Toshio Uenishi, with six years of experience in operating bulldozers, says that thanks to no stakes, the intelligent Machine Control dozer has dramatically alleviated his fatigue, thereby improving his work Mr. Toshio Uenishi, with six years of experience in operating bulldozers, says that thanks to no stakes, the intelligent Machine Control dozer has dramatically alleviated his fatigue, thereby improving his work efficiency. Mr. Shigeaki Kadota, site supervisor, adds that he feels more secure about construction intelligent Machine Control dozer has dramatically alleviated his fatigue, thereby improving his work efficiency. Mr. Shigeaki Kadota, site supervisor, adds that he feels more secure about construction management because he can check real-time progress at any time as needed. To further enhance the efficiency. Mr. Shigeaki Kadota, site supervisor, adds that he feels more secure about construction management because he can check real-time progress at any time as needed. To further enhance the efficiency of jobsite operations, he hopes to modify design data directly in his touch panel terminal according management because he can check real-time progress at any time as needed. To further enhance the efficiency of jobsite operations, he hopes to modify design data directly in his touch panel terminal according to real-time progress. He has fed back his request to Komatsu Rental. efficiency of jobsite operations, he hopes to modify design data directly in his touch panel terminal according to real-time progress. He has fed back his request to Komatsu Rental. Kamitake Construction has already begun the second phase of ground preparation (15 hectares). Upon to real-time progress. He has fed back his request to Komatsu Rental. Kamitake Construction has already begun the second phase of ground preparation (15 hectares). Upon completion of the development, it’s easy to imagine that this large-scale industrial park will play the role of Kamitake Construction has already begun the second phase of ground preparation (15 hectares). Upon completion of the development, it’s easy to imagine that this large-scale industrial park will play the role of stimulating local economic growth in the near future. completion of the development, it’s easy to imagine that this large-scale industrial park will play the role of stimulating local economic growth in the near future. stimulating local economic growth in the near future. D65PXi D65PXi D65PXi Mr. Satoshi Tsuchimoto, Mr. Satoshi Tsuchimoto, Kamitake Construction Co., Ltd. Kamitake Construction Co., Ltd. Senior Managing Director and President of Civil Engineering Division Mr. Satoshi Tsuchimoto, Senior Managing Director and President of Civil Engineering Division Kamitake Construction Co., Ltd. Senior Managing Director and President of Civil Engineering Division To make a flat surface of industrial parks, typically, you cut the earth at elevated locations and fill in earth at To make a flat surface of industrial parks, typically, you cut the earth at elevated locations and fill in earth at lower locations. However, it’s difficult to accurately determine where to cut and fill in on 2-dimensional To make a flat surface of industrial parks, typically, you cut the earth at elevated locations and fill in earth at lower locations. However, it’s difficult to accurately determine where to cut and fill in on 2-dimensional drawings. You might have to incur extra costs, such as for additional filling earth, disposal of earth, and lower locations. However, it’s difficult to accurately determine where to cut and fill in on 2-dimensional drawings. You might have to incur extra costs, such as for additional filling earth, disposal of earth, and consequent use of dump trucks. drawings. You might have to incur extra costs, such as for additional filling earth, disposal of earth, and consequent use of dump trucks. consequent use of dump trucks. In cooperation with the prime contractor, Komatsu Rental flew Skycatch’s survey drone on a trial basis. The In cooperation with the prime contractor, Komatsu Rental flew Skycatch’s survey drone on a trial basis. The drone surveyed the first stage preparation site, including the circumference area (approx. 180,000 m ), at In cooperation with the prime contractor, Komatsu Rental flew Skycatch’s survey drone on a trial basis. The drone surveyed the first stage preparation site, including the circumference area (approx. 180,000 m ), at 2 2 over 3.4 million points. Komatsu Rental developed an accurate 3-demensional drawing (Fig. 1) based on the drone surveyed the first stage preparation site, including the circumference area (approx. 180,000 m ), at over 3.4 million points. Komatsu Rental developed an accurate 3-demensional drawing (Fig. 1) based on the 2 surveyed data. over 3.4 million points. Komatsu Rental developed an accurate 3-demensional drawing (Fig. 1) based on the surveyed data. surveyed data. After feeding this drawing data into KomConnect, Komatsu Rental overlapped two 3-dimensional drawings, After feeding this drawing data into KomConnect, Komatsu Rental overlapped two 3-dimensional drawings, i.e., the surveyed drawing and the completion drawing, and produced a drawing (Fig. 2) with an accurate After feeding this drawing data into KomConnect, Komatsu Rental overlapped two 3-dimensional drawings, i.e., the surveyed drawing and the completion drawing, and produced a drawing (Fig. 2) with an accurate volume of earthwork, showing where to cut and fill in using different colors. When the drawing becomes all i.e., the surveyed drawing and the completion drawing, and produced a drawing (Fig. 2) with an accurate volume of earthwork, showing where to cut and fill in using different colors. When the drawing becomes all green, the job is done. As everything is digitalized, it is easy to simulate earth cutting and filling work and volume of earthwork, showing where to cut and fill in using different colors. When the drawing becomes all green, the job is done. As everything is digitalized, it is easy to simulate earth cutting and filling work and develop optimal construction plans according to contractors’ needs. “Once we start the full-scale service by green, the job is done. As everything is digitalized, it is easy to simulate earth cutting and filling work and develop optimal construction plans according to contractors’ needs. “Once we start the full-scale service by offering these drawings, in a short time our customers should be able to enjoy big benefits by shortening develop optimal construction plans according to contractors’ needs. “Once we start the full-scale service by offering these drawings, in a short time our customers should be able to enjoy big benefits by shortening construction periods and cutting down costs,” says a Komatsu Rental service person. It’s just around the offering these drawings, in a short time our customers should be able to enjoy big benefits by shortening construction periods and cutting down costs,” says a Komatsu Rental service person. It’s just around the construction periods and cutting down costs,” says a Komatsu Rental service person. It’s just around the corner. corner. corner. SMARTCONSTRUCTION uses Skycatch-made drone to survey the sites. SMARTCONSTRUCTION uses Skycatch-made drone to survey the sites. SMARTCONSTRUCTION uses Skycatch-made drone to survey the sites. 3-demensional drawings based on the surveyed data by Skycatch-made drone 3-demensional drawings based on the surveyed data by Skycatch-made drone 3-demensional drawings based on the surveyed data by Skycatch-made drone INFORMATION INFORMATION Corporate Information INFORMATION Corporate Information Download PDF Download PDF Corporate Information Site Map Site Map Download PDF Site Map For further details, please click here For further details, please click here Financial conditions: For further details, please click here Financial conditions: Securities Report Securities Report Financial conditions: Securities Report Social activities: Social activities: CSR report CSR report Social activities: CSR report Environmental performance: Environmental performance: Environmental Report Environmental Report Environmental performance: Environmental Report Corporate Governance Corporate Governance ESG Risk Management Risk Management Corporate Governance Environmental Environmental Risk Management Conservation Efforts Conservation Efforts Environmental Corporate Social Corporate Social Conservation Efforts Responsibility Efforts Responsibility Efforts Corporate Social FY2014 PERFORMANCE Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Five-Year Summary Consolidated Results / Construction, Mining and Construction, Mining and Five-Year Summary Utility Equipment Utility Equipment Construction, Mining and Industrial Machinery and Industrial Machinery and Utility Equipment Others Industrial Machinery and Others Others STRATEGIES STRATEGIES ESG ESG Growth Strategies Based STRATEGIES Growth Strategies Based on Innovation on Innovation Growth Strategies Based Introduction to Introduction to on Innovation SMARTCONSTRUCTION SMARTCONSTRUCTION Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible workers being responsible for ICT-intensive Jobsite Report 1: Young for ICT-intensive workers being responsible construction construction for ICT-intensive Jobsite Report 2: Together Jobsite Report 2: Together with veteran operators construction with veteran operators Jobsite Report 2: Together Jobsite Report 3: Looking Jobsite Report 3: Looking with veteran operators forward to the future of forward to the future of intelligent Machine Control Jobsite Report 3: Looking intelligent Machine Control equipment forward to the future of equipment intelligent Machine Control MANAGEMENT equipment MANAGEMENT To All Our Stakeholders MANAGEMENT To All Our Stakeholders Interview with the Interview with the To All Our Stakeholders President President Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 SMARTCONSTRUCTION Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment SMARTCONSTRUCTION on the move in Japan: Jobsite Report 3 Looking forward to the future of intelligent Machine Control equipment Kamitake Construction Co., Ltd. (Ikoma City, Nara Prefecture) Jobsite location: Gamou District, Shiga Prefecture Time: June 2015 The ground preparation of Ryuo Industrial Park is in full swing near the Ryuo Interchange of Meishin Expressway in Gamou District, Shiga Prefecture. With a total area of 52.6 hectares, it is one of the largest- scale ongoing civil engineering projects in Japan. Kamitake Construction Co., Ltd., headquartered in Ikoma City, Nara Prefecture, was about to finish the first ground preparation phase of 15 hectares. Two dozers, D61PXi and D65PXi, are deployed on the site. The D65PXi was in operation. Mr. Toshio Uenishi, with six years of experience in operating bulldozers, says that thanks to no stakes, the intelligent Machine Control dozer has dramatically alleviated his fatigue, thereby improving his work efficiency. Mr. Shigeaki Kadota, site supervisor, adds that he feels more secure about construction management because he can check real-time progress at any time as needed. To further enhance the efficiency of jobsite operations, he hopes to modify design data directly in his touch panel terminal according to real-time progress. He has fed back his request to Komatsu Rental. Kamitake Construction has already begun the second phase of ground preparation (15 hectares). Upon completion of the development, it’s easy to imagine that this large-scale industrial park will play the role of stimulating local economic growth in the near future. D65PXi KOMATSU REPORT 2015 Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment 16 SMARTCONSTRUCTION WITH A FUTURE Mr. Satoshi Tsuchimoto, Kamitake Construction Co., Ltd. Senior Managing Director and President of Civil Engineering Division To make a flat surface of industrial parks, typically, you cut the earth at elevated locations and fill in earth at lower locations. However, it’s difficult to accurately determine where to cut and fill in on 2-dimensional drawings. You might have to incur extra costs, such as for additional filling earth, disposal of earth, and consequent use of dump trucks. In cooperation with the prime contractor, Komatsu Rental flew Skycatch’s survey drone on a trial basis. The drone surveyed the first stage preparation site, including the circumference area (approx. 180,000 m ), at 2 over 3.4 million points. Komatsu Rental developed an accurate 3-demensional drawing (Fig. 1) based on the surveyed data. After feeding this drawing data into KomConnect, Komatsu Rental overlapped two 3-dimensional drawings, i.e., the surveyed drawing and the completion drawing, and produced a drawing (Fig. 2) with an accurate volume of earthwork, showing where to cut and fill in using different colors. When the drawing becomes all green, the job is done. As everything is digitalized, it is easy to simulate earth cutting and filling work and develop optimal construction plans according to contractors’ needs. “Once we start the full-scale service by offering these drawings, in a short time our customers should be able to enjoy big benefits by shortening construction periods and cutting down costs,” says a Komatsu Rental service person. It’s just around the corner. SMARTCONSTRUCTION uses Skycatch-made drone to survey the sites. 3-demensional drawings based on the surveyed data by Skycatch-made drone STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 MANAGEMENT KOMATSU REPORT 2015 Management Interview with the President Interview with the President 17 Interview with the President Tetsuji Ohashi, President Focused Efforts in FY2015 Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining equipment continued longer than we had anticipated. In the second half period, demand in China and for mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed at the end of the current fiscal year, that is, March 31, 2016. However, we haven’t changed our belief that demand for construction and mining equipment will grow in the long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is not only promoting a business model, which advocates comprehensive merits for customers, such as the reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that we will be able to flexibly meet changes of our business environment. « Focused efforts » Growth strategies based on innovation Growth strategies of existing businesses Structural reforms designed to reinforce the business foundation We are working to improve profitability by continuing our efforts to cut down fixed and production costs and improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in long-term growth projects so that we will be able to enjoy steady results. Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other efforts in which you are looking into new value for customers in the domains of products and service? A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control hydraulic excavator and some other products, we have been striving to enhance the product competitiveness of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, albeit electrically powered. We are expanding the range of our electric models. New FE25 electric forklift truck In the industrial machinery and others business, we are facilitating in-house development and production of key components for innovative products, while working to expand sales of small AC Servo presses and fiber laser cutting machines, which we launched in 2014. In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, we are going to collect and analyze big data of mining operations, and help mining customers reduce their operating costs. Q3: Please explain the current situation concerning the growth strategies of existing businesses. A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products designed specifically for emerging markets and working to expand sales there. PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce lifecycle costs of their machines, we are strengthening the value chain business, such as parts. Our machine population of construction and mining equipment has grown especially over the last few years, and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of Reman components. We are also stepping up our efforts to strengthen our distribution network and distributors’ human resource development in order to enhance the competitive edge of our distributors who handle sales and service of our products. Q4: How about structural reforms? A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has continued to drop. We are also making group-wide efforts to cut down production costs. With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and biomass power generation. In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More specifically, we are going to “visualize” the operating conditions of production equipment, such as machine tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. Based on the integrated information, we will develop plans to improve production processes and productivity per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to develop a new production system in which our plants will actively get involved in solving problems of end- customers by directly linking market information with the plants. With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. New Kanto Spare Parts Distribution Center STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Management Interview with the President KOMATSU REPORT 2015 Management Interview with the President Tetsuji Ohashi, President Tetsuji Ohashi, President Focused Efforts in FY2015 KOMATSU REPORT 2015 Management Interview with the President Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. Focused Efforts in FY2015 A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining Interview with the President KOMATSU REPORT 2015 Management equipment continued longer than we had anticipated. In the second half period, demand in China and for Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed at the end of the current fiscal year, that is, March 31, 2016. equipment continued longer than we had anticipated. In the second half period, demand in China and for mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from However, we haven’t changed our belief that demand for construction and mining equipment will grow in the our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is at the end of the current fiscal year, that is, March 31, 2016. not only promoting a business model, which advocates comprehensive merits for customers, such as the reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the However, we haven’t changed our belief that demand for construction and mining equipment will grow in the President Tetsuji Ohashi, ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is we will be able to flexibly meet changes of our business environment. not only promoting a business model, which advocates comprehensive merits for customers, such as the Focused Efforts in FY2015 reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the Tetsuji Ohashi, « Focused efforts » Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. President ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that Growth strategies based on innovation A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining we will be able to flexibly meet changes of our business environment. Focused Efforts in FY2015 equipment continued longer than we had anticipated. In the second half period, demand in China and for Growth strategies of existing businesses mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from « Focused efforts » Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed Structural reforms designed to reinforce the business foundation Growth strategies based on innovation at the end of the current fiscal year, that is, March 31, 2016. We are working to improve profitability by continuing our efforts to cut down fixed and production costs and A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining However, we haven’t changed our belief that demand for construction and mining equipment will grow in the equipment continued longer than we had anticipated. In the second half period, demand in China and for Growth strategies of existing businesses improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from long-term growth projects so that we will be able to enjoy steady results. our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed not only promoting a business model, which advocates comprehensive merits for customers, such as the Structural reforms designed to reinforce the business foundation reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the at the end of the current fiscal year, that is, March 31, 2016. We are working to improve profitability by continuing our efforts to cut down fixed and production costs and ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is we will be able to flexibly meet changes of our business environment. However, we haven’t changed our belief that demand for construction and mining equipment will grow in the long-term growth projects so that we will be able to enjoy steady results. not only promoting a business model, which advocates comprehensive merits for customers, such as the efforts in which you are looking into new value for customers in the domains of products and service? « Focused efforts » reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the Growth strategies based on innovation A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that Growth strategies of existing businesses Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other hydraulic excavator and some other products, we have been striving to enhance the product competitiveness we will be able to flexibly meet changes of our business environment. Structural reforms designed to reinforce the business foundation efforts in which you are looking into new value for customers in the domains of products and service? of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we We are working to improve profitability by continuing our efforts to cut down fixed and production costs and « Focused efforts » Growth strategies based on innovation A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in albeit electrically powered. We are expanding the range of our electric models. hydraulic excavator and some other products, we have been striving to enhance the product competitiveness long-term growth projects so that we will be able to enjoy steady results. Structural reforms designed to reinforce the business foundation Growth strategies of existing businesses of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other We are working to improve profitability by continuing our efforts to cut down fixed and production costs and introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in efforts in which you are looking into new value for customers in the domains of products and service? albeit electrically powered. We are expanding the range of our electric models. long-term growth projects so that we will be able to enjoy steady results. A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control KOMATSU REPORT 2015 MANAGEMENT hydraulic excavator and some other products, we have been striving to enhance the product competitiveness Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, efforts in which you are looking into new value for customers in the domains of products and service? Interview with the President 18 albeit electrically powered. We are expanding the range of our electric models. A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control hydraulic excavator and some other products, we have been striving to enhance the product competitiveness of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, albeit electrically powered. We are expanding the range of our electric models. New FE25 electric forklift truck In the industrial machinery and others business, we are facilitating in-house development and production of key components for innovative products, while working to expand sales of small AC Servo presses and fiber laser cutting machines, which we launched in 2014. New FE25 electric forklift truck New FE25 electric forklift truck In the industrial machinery and others business, we are facilitating in-house development and production of In the industrial machinery and others business, we are facilitating in-house development and production of In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 key components for innovative products, while working to expand sales of small AC Servo presses and fiber key components for innovative products, while working to expand sales of small AC Servo presses and fiber in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, laser cutting machines, which we launched in 2014. laser cutting machines, which we launched in 2014. we are going to collect and analyze big data of mining operations, and help mining customers reduce their New FE25 electric forklift truck In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, In the industrial machinery and others business, we are facilitating in-house development and production of operating costs. In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 we are going to collect and analyze big data of mining operations, and help mining customers reduce their key components for innovative products, while working to expand sales of small AC Servo presses and fiber in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, operating costs. laser cutting machines, which we launched in 2014. Q3: Please explain the current situation concerning the growth strategies of existing businesses. we are going to collect and analyze big data of mining operations, and help mining customers reduce their In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 operating costs. Q3: Please explain the current situation concerning the growth strategies of existing businesses. in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which we are going to collect and analyze big data of mining operations, and help mining customers reduce their A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which operating costs. are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products Q3: Please explain the current situation concerning the growth strategies of existing businesses. designed specifically for emerging markets and working to expand sales there. designed specifically for emerging markets and working to expand sales there. Q3: Please explain the current situation concerning the growth strategies of existing businesses. A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products designed specifically for emerging markets and working to expand sales there. designed specifically for emerging markets and working to expand sales there. PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce lifecycle costs of their machines, we are strengthening the value chain business, such as parts. and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce Our machine population of construction and mining equipment has grown especially over the last few years, PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of lifecycle costs of their machines, we are strengthening the value chain business, such as parts. Reman components. We are also stepping up our efforts to strengthen our distribution network and Our machine population of construction and mining equipment has grown especially over the last few years, PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) lifecycle costs of their machines, we are strengthening the value chain business, such as parts. distributors’ human resource development in order to enhance the competitive edge of our distributors who and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To handle sales and service of our products. We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX Our machine population of construction and mining equipment has grown especially over the last few years, steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To Q4: How about structural reforms? Reman components. We are also stepping up our efforts to strengthen our distribution network and A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs lifecycle costs of their machines, we are strengthening the value chain business, such as parts. steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth distributors’ human resource development in order to enhance the competitive edge of our distributors who and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of Our machine population of construction and mining equipment has grown especially over the last few years, handle sales and service of our products. constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At Reman components. We are also stepping up our efforts to strengthen our distribution network and and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has distributors’ human resource development in order to enhance the competitive edge of our distributors who steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth handle sales and service of our products. and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs Q4: How about structural reforms? continued to drop. Reman components. We are also stepping up our efforts to strengthen our distribution network and constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At distributors’ human resource development in order to enhance the competitive edge of our distributors who the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has Q4: How about structural reforms? continued to drop. handle sales and service of our products. A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At Q4: How about structural reforms? the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs continued to drop. constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has continued to drop. We are also making group-wide efforts to cut down production costs. With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped We are also making group-wide efforts to cut down production costs. by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we biomass power generation. built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and specifically, we are going to “visualize” the operating conditions of production equipment, such as machine biomass power generation. tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we Based on the integrated information, we will develop plans to improve production processes and productivity are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to We are also making group-wide efforts to cut down production costs. develop a new production system in which our plants will actively get involved in solving problems of end- IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More specifically, we are going to “visualize” the operating conditions of production equipment, such as machine customers by directly linking market information with the plants. With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the Based on the integrated information, we will develop plans to improve production processes and productivity Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to We are also making group-wide efforts to cut down production costs. floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and develop a new production system in which our plants will actively get involved in solving problems of end- generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. customers by directly linking market information with the plants. by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the biomass power generation. floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through biomass power generation. IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More specifically, we are going to “visualize” the operating conditions of production equipment, such as machine In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through Based on the integrated information, we will develop plans to improve production processes and productivity IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to specifically, we are going to “visualize” the operating conditions of production equipment, such as machine develop a new production system in which our plants will actively get involved in solving problems of end- tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. New Kanto Spare Parts Distribution Center customers by directly linking market information with the plants. Based on the integrated information, we will develop plans to improve production processes and productivity per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the develop a new production system in which our plants will actively get involved in solving problems of end- Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- New Kanto Spare Parts Distribution Center customers by directly linking market information with the plants. edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and For further details, please click here INFORMATION STRATEGIES ESG Growth Strategies Based Corporate Governance Corporate Information Financial conditions: Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the Risk Management Download PDF on Innovation Securities Report Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- SMARTCONSTRUCTION Social activities: Conservation Efforts Environmental Site Map Introduction to edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and SMARTCONSTRUCTION INFORMATION For further details, please click here STRATEGIES ESG Corporate Social Responsibility Efforts Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. Financial conditions: Environmental Report Corporate Governance Corporate Information Download PDF Site Map CSR report Environmental performance: Securities Report Social activities: CSR report Environmental performance: Environmental Report Jobsite Report 1: Young Growth Strategies Based workers being responsible on Innovation for ICT-intensive Introduction to construction SMARTCONSTRUCTION Jobsite Report 2: Together with veteran operators SMARTCONSTRUCTION Jobsite Report 3: Looking Jobsite Report 1: Young forward to the future of workers being responsible intelligent Machine Control for ICT-intensive equipment construction MANAGEMENT Jobsite Report 2: Together with veteran operators To All Our Stakeholders Jobsite Report 3: Looking Interview with the forward to the future of President intelligent Machine Control equipment FY2014 PERFORMANCE Risk Management Consolidated Results / Environmental Five-Year Summary Conservation Efforts Construction, Mining and Corporate Social Utility Equipment Responsibility Efforts Industrial Machinery and FY2014 PERFORMANCE Others Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others MANAGEMENT Copyright © 2015 Komatsu Ltd. All rights reserved To All Our Stakeholders Interview with the President New Kanto Spare Parts Distribution Center Copyright © 2015 Komatsu Ltd. All rights reserved New Kanto Spare Parts Distribution Center STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Financial conditions: Securities Report Social activities: For further details, please click here CSR report Financial conditions: Securities Report Environmental performance: Environmental Report Social activities: CSR report Environmental performance: Environmental Report Risk Management Download PDF Environmental ESG Conservation Efforts Site Map INFORMATION Corporate Information Download PDF Site Map Corporate Social Corporate Governance Responsibility Efforts Risk Management Environmental FY2014 PERFORMANCE Conservation Efforts Consolidated Results / Corporate Social Five-Year Summary Responsibility Efforts Construction, Mining and Utility Equipment FY2014 PERFORMANCE Industrial Machinery and Consolidated Results / Others Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION STRATEGIES Growth Strategies Based SMARTCONSTRUCTION on Innovation Jobsite Report 1: Young Introduction to workers being responsible SMARTCONSTRUCTION for ICT-intensive construction SMARTCONSTRUCTION Jobsite Report 2: Together with veteran operators Jobsite Report 1: Young workers being responsible Jobsite Report 3: Looking for ICT-intensive forward to the future of construction intelligent Machine Control equipment Jobsite Report 2: Together with veteran operators MANAGEMENT Jobsite Report 3: Looking forward to the future of To All Our Stakeholders intelligent Machine Control equipment Interview with the President MANAGEMENT To All Our Stakeholders Copyright © 2015 Komatsu Ltd. All rights reserved Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Management Interview with the President KOMATSU REPORT 2015 Management Interview with the President KOMATSU REPORT 2015 Management Interview with the President Tetsuji Ohashi, President Tetsuji Ohashi, President Focused Efforts in FY2015 Focused Efforts in FY2015 Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. equipment continued longer than we had anticipated. In the second half period, demand in China and for A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed equipment continued longer than we had anticipated. In the second half period, demand in China and for at the end of the current fiscal year, that is, March 31, 2016. mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from Interview with the President KOMATSU REPORT 2015 Management Tetsuji Ohashi, our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed However, we haven’t changed our belief that demand for construction and mining equipment will grow in the President at the end of the current fiscal year, that is, March 31, 2016. long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is Focused Efforts in FY2015 not only promoting a business model, which advocates comprehensive merits for customers, such as the However, we haven’t changed our belief that demand for construction and mining equipment will grow in the reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that not only promoting a business model, which advocates comprehensive merits for customers, such as the we will be able to flexibly meet changes of our business environment. A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that equipment continued longer than we had anticipated. In the second half period, demand in China and for « Focused efforts » mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from we will be able to flexibly meet changes of our business environment. Growth strategies based on innovation our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed « Focused efforts » at the end of the current fiscal year, that is, March 31, 2016. Growth strategies of existing businesses However, we haven’t changed our belief that demand for construction and mining equipment will grow in the Structural reforms designed to reinforce the business foundation Growth strategies based on innovation long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is Growth strategies of existing businesses Tetsuji Ohashi, We are working to improve profitability by continuing our efforts to cut down fixed and production costs and not only promoting a business model, which advocates comprehensive merits for customers, such as the President improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the Structural reforms designed to reinforce the business foundation Focused Efforts in FY2015 long-term growth projects so that we will be able to enjoy steady results. ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that We are working to improve profitability by continuing our efforts to cut down fixed and production costs and we will be able to flexibly meet changes of our business environment. improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in Q1: Please tell us about the market conditions in FY2015 and Komatsu's focused efforts into the future. long-term growth projects so that we will be able to enjoy steady results. Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other A1: First, with respect to the market conditions in FY2014, sluggish demand in emerging markets and for mining « Focused efforts » efforts in which you are looking into new value for customers in the domains of products and service? equipment continued longer than we had anticipated. In the second half period, demand in China and for Growth strategies based on innovation Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control our assumptions, at the time we made them, for the ongoing mid-range management plan to be completed mining equipment further deteriorated. This trend has continued into FY2015, creating a big disparity from Structural reforms designed to reinforce the business foundation efforts in which you are looking into new value for customers in the domains of products and service? hydraulic excavator and some other products, we have been striving to enhance the product competitiveness at the end of the current fiscal year, that is, March 31, 2016. Growth strategies of existing businesses A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control However, we haven’t changed our belief that demand for construction and mining equipment will grow in the of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we We are working to improve profitability by continuing our efforts to cut down fixed and production costs and improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, long range, supported by an increase in global population and the urbanization rate. The Komatsu Group is hydraulic excavator and some other products, we have been striving to enhance the product competitiveness long-term growth projects so that we will be able to enjoy steady results. albeit electrically powered. We are expanding the range of our electric models. of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we not only promoting a business model, which advocates comprehensive merits for customers, such as the reduction of lifecycle costs of their products, but also steadfastly engaging in three focused efforts of the introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, ongoing mid-range management plan. In this manner, we are continuing to reinforce our operations so that Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other albeit electrically powered. We are expanding the range of our electric models. we will be able to flexibly meet changes of our business environment. efforts in which you are looking into new value for customers in the domains of products and service? « Focused efforts » A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control Growth strategies based on innovation hydraulic excavator and some other products, we have been striving to enhance the product competitiveness Growth strategies of existing businesses of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, Structural reforms designed to reinforce the business foundation albeit electrically powered. We are expanding the range of our electric models. We are working to improve profitability by continuing our efforts to cut down fixed and production costs and improve selling prices and so forth. At the same time, we are going to make special and speedy efforts in long-term growth projects so that we will be able to enjoy steady results. Q2: We have already learned about SMARTCONSTRUCTION in detail in the opening section. How about other efforts in which you are looking into new value for customers in the domains of products and service? A2: Concerning the domain of products, in addition to developing the PC200i intelligent Machine Control hydraulic excavator and some other products, we have been striving to enhance the product competitiveness of our forklift trucks by incorporating technological synergy with construction equipment. In May 2014, we introduced the FE25 electric forklift truck, which enables use by customers outdoors and even in the rain, New FE25 electric forklift truck In the industrial machinery and others business, we are facilitating in-house development and production of albeit electrically powered. We are expanding the range of our electric models. key components for innovative products, while working to expand sales of small AC Servo presses and fiber New FE25 electric forklift truck laser cutting machines, which we launched in 2014. In the industrial machinery and others business, we are facilitating in-house development and production of key components for innovative products, while working to expand sales of small AC Servo presses and fiber In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 laser cutting machines, which we launched in 2014. in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, we are going to collect and analyze big data of mining operations, and help mining customers reduce their In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 operating costs. In the industrial machinery and others business, we are facilitating in-house development and production of in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, key components for innovative products, while working to expand sales of small AC Servo presses and fiber we are going to collect and analyze big data of mining operations, and help mining customers reduce their New FE25 electric forklift truck laser cutting machines, which we launched in 2014. operating costs. Q3: Please explain the current situation concerning the growth strategies of existing businesses. In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, Q3: Please explain the current situation concerning the growth strategies of existing businesses. we are going to collect and analyze big data of mining operations, and help mining customers reduce their are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products operating costs. A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which designed specifically for emerging markets and working to expand sales there. New FE25 electric forklift truck are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products Q3: Please explain the current situation concerning the growth strategies of existing businesses. In the industrial machinery and others business, we are facilitating in-house development and production of designed specifically for emerging markets and working to expand sales there. key components for innovative products, while working to expand sales of small AC Servo presses and fiber A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which laser cutting machines, which we launched in 2014. are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products In the domain of service, we expanded collaboration with General Electric of the United States in April 2015 designed specifically for emerging markets and working to expand sales there. in order to further facilitate the “visualization” of mining equipment in operation. Specifically, jointly with GE, we are going to collect and analyze big data of mining operations, and help mining customers reduce their operating costs. Q3: Please explain the current situation concerning the growth strategies of existing businesses. A3: We have developed 18 models of hydraulic excavators, articulated dump trucks and other products, which are compliant with the latest emission regulations. In FY2015, we are aggressively planning new products designed specifically for emerging markets and working to expand sales there. PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) lifecycle costs of their machines, we are strengthening the value chain business, such as parts. We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce Our machine population of construction and mining equipment has grown especially over the last few years, We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX lifecycle costs of their machines, we are strengthening the value chain business, such as parts. and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce lifecycle costs of their machines, we are strengthening the value chain business, such as parts. steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth Our machine population of construction and mining equipment has grown especially over the last few years, and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of Our machine population of construction and mining equipment has grown especially over the last few years, and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To Reman components. We are also stepping up our efforts to strengthen our distribution network and and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth PC200-8M0 hydraulic excavator specifically for emerging markets (the photo taken in Indonesia) KOMATSU REPORT 2015 steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth distributors’ human resource development in order to enhance the competitive edge of our distributors who and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of We are also applying ICT as a powerful driver of the growth of existing businesses. By analyzing KOMTRAX Interview with the President and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of handle sales and service of our products. Reman components. We are also stepping up our efforts to strengthen our distribution network and and KOMTRAX Plus data from operating machines and proposing to customers that we can help them reduce Reman components. We are also stepping up our efforts to strengthen our distribution network and 19 MANAGEMENT Q4: How about structural reforms? lifecycle costs of their machines, we are strengthening the value chain business, such as parts. distributors’ human resource development in order to enhance the competitive edge of our distributors who distributors’ human resource development in order to enhance the competitive edge of our distributors who Our machine population of construction and mining equipment has grown especially over the last few years, handle sales and service of our products. handle sales and service of our products. and we have expanded the spare parts business. We generated record-high sales of parts in FY2014. To A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs Q4: How about structural reforms? Q4: How about structural reforms? and other strategic parts, as well as attachments, but also continuing to reinforce our supply operation of constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At steadily capture a growth in demand for parts, we are not only broadening our product mix of buckets, teeth Reman components. We are also stepping up our efforts to strengthen our distribution network and A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs distributors’ human resource development in order to enhance the competitive edge of our distributors who constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At continued to drop. constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At handle sales and service of our products. the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has continued to drop. Q4: How about structural reforms? continued to drop. A4: Our consolidated sales have about doubled since the early 2000s, but we have practically kept fixed costs constant. We will continue to separate costs from growth and sustain an appropriate level of fixed costs. At the same time, we are stepping up our efforts to reduce fixed costs in the regions where demand has continued to drop. We are also making group-wide efforts to cut down production costs. We are also making group-wide efforts to cut down production costs. With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we We are also making group-wide efforts to cut down production costs. built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- biomass power generation. biomass power generation. We are also making group-wide efforts to cut down production costs. built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped built a new assembly factory at the Awazu Plant in 2014, which features excellent energy-savings and per- With respect to the on-going project to reduce electric power consumption to half at our plants in Japan, we by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power floor space productivity. In 2015, we began the operation of a biomass-fired boiler system for power biomass power generation. generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped generation at the Plant. As a result, purchase power consumption for the new assembly factory has dropped In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we by about 90%, thanks to increased energy savings, improved per-floor space productivity and solar and are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through biomass power generation. are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we In FY2015 we are starting a new mid-range improvement plan for production costs. As part of this plan, we specifically, we are going to “visualize” the operating conditions of production equipment, such as machine specifically, we are going to “visualize” the operating conditions of production equipment, such as machine are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through are adding the concept of connectivity, that is, connecting a wide range of “visualized” information through tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. Based on the integrated information, we will develop plans to improve production processes and productivity IoT, to our conventional production reforms, in order to dynamically improve safety and productivity. More specifically, we are going to “visualize” the operating conditions of production equipment, such as machine Based on the integrated information, we will develop plans to improve production processes and productivity per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to specifically, we are going to “visualize” the operating conditions of production equipment, such as machine tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to develop a new production system in which our plants will actively get involved in solving problems of end- tools and robots, as well as assembly lines through IoT and integrate that information in a shared database. Based on the integrated information, we will develop plans to improve production processes and productivity develop a new production system in which our plants will actively get involved in solving problems of end- per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to Based on the integrated information, we will develop plans to improve production processes and productivity customers by directly linking market information with the plants. develop a new production system in which our plants will actively get involved in solving problems of end- With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the per shop floor, as well as to downsize manpower, and shorten production lead-time. We are also working to Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- develop a new production system in which our plants will actively get involved in solving problems of end- With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the customers by directly linking market information with the plants. Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and With respect to the spare parts business, we opened the new Kanto Spare Parts Distribution Center at the edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. Oyama Plant in August 2014, which is equipped with a new warehouse management system and leading- Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. customers by directly linking market information with the plants. customers by directly linking market information with the plants. edge ICT equipment. Through this center, we are accelerating a direct linkage of overseas subsidiaries and Japanese plants in order to reduce and optimize overseas subsidiaries' inventories of spare parts. New Kanto Spare Parts Distribution Center New Kanto Spare Parts Distribution Center New Kanto Spare Parts Distribution Center STRATEGIES STRATEGIES ESG ESG New Kanto Spare Parts Distribution Center INFORMATION INFORMATION For further details, please click here For further details, please click here Growth Strategies Based Growth Strategies Based Corporate Governance Corporate Governance Corporate Information Corporate Information Risk Management Risk Management Download PDF Download PDF Financial conditions: Financial conditions: Securities Report Securities Report Site Map Site Map INFORMATION Corporate Information Download PDF INFORMATION Site Map Corporate Information Download PDF Site Map Social activities: Social activities: CSR report CSR report For further details, please click here Environmental performance: Environmental performance: Financial conditions: Environmental Report Environmental Report Securities Report For further details, please click here Social activities: Financial conditions: CSR report Securities Report Environmental performance: Social activities: Environmental Report CSR report Environmental performance: Environmental Report on Innovation on Innovation Introduction to Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION STRATEGIES SMARTCONSTRUCTION SMARTCONSTRUCTION Growth Strategies Based on Innovation Jobsite Report 1: Young workers being responsible Jobsite Report 1: Young STRATEGIES Introduction to for ICT-intensive construction workers being responsible for ICT-intensive SMARTCONSTRUCTION Growth Strategies Based construction Jobsite Report 2: Together ESG on Innovation Jobsite Report 2: Together with veteran operators SMARTCONSTRUCTION with veteran operators Jobsite Report 3: Looking Introduction to Jobsite Report 3: Looking forward to the future of SMARTCONSTRUCTION Jobsite Report 1: Young forward to the future of intelligent Machine Control workers being responsible intelligent Machine Control equipment SMARTCONSTRUCTION for ICT-intensive equipment construction MANAGEMENT Jobsite Report 1: Young Jobsite Report 2: Together To All Our Stakeholders MANAGEMENT workers being responsible with veteran operators for ICT-intensive To All Our Stakeholders Interview with the President Jobsite Report 3: Looking construction Interview with the forward to the future of Jobsite Report 2: Together intelligent Machine Control President with veteran operators equipment Jobsite Report 3: Looking Environmental Environmental Conservation Efforts Conservation Efforts ESG Corporate Social Corporate Social Responsibility Efforts Responsibility Efforts Corporate Governance Risk Management FY2014 PERFORMANCE FY2014 PERFORMANCE Environmental Consolidated Results / Consolidated Results / Five-Year Summary Conservation Efforts Corporate Governance Five-Year Summary Construction, Mining and Corporate Social Risk Management Construction, Mining and Utility Equipment Responsibility Efforts Utility Equipment Environmental Industrial Machinery and Conservation Efforts Industrial Machinery and Others FY2014 PERFORMANCE Others Corporate Social Responsibility Efforts Consolidated Results / Five-Year Summary FY2014 PERFORMANCE Construction, Mining and Utility Equipment Consolidated Results / Industrial Machinery and Five-Year Summary Others Construction, Mining and Copyright © 2015 Komatsu Ltd. All rights reserved Utility Equipment forward to the future of MANAGEMENT Copyright © 2015 Komatsu Ltd. All rights reserved intelligent Machine Control Others Industrial Machinery and equipment To All Our Stakeholders Interview with the MANAGEMENT President To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Corporate Governance KOMATSU REPORT 2015 Corporate Governance 20 SUSTAINABLE GROWTH WITH THE WORLD Basic Stance Corporate Governance Establishment and Improvement of Corporate Governance Organizations and Functions Organizational Profile Compliance Basic Stance We, at Komatsu Ltd., believe our corporate value is the total sum of trust given to us by society and all stakeholders. To become a company which enjoys more trust from shareholders and all other stakeholders, we are working to strengthen corporate governance, improve management efficiency, advocate corporate ethics and ensure sound management on a group-wide basis. To further improve the transparency of management for our shareholders and investors, we disclose information in a fair and timely manner and actively engage in investor relations' activities by holding meetings with shareholders and investors. Establishment and Improvement of Corporate Governance In 1999 Komatsu Ltd. introduced the Executive Officer System and has been working to separate management decisionmaking and supervisory functions from executive functions to the extent permitted by laws and regulations. At the same time, we also limit the Board of Directors to a small number of members and appoint Outside Directors and Outside Audit & Supervisory Board Members. To improve the effectiveness of discussions at meetings of the Board of Directors, we have worked to reform their operational aspect, primarily by putting in place a system to ensure thorough discussions of important management matters and prompt decision making. We have also established the International Advisory Board (IAB) as a means to supplement executive functions. Organizations and Functions Note: Against the background of enforcement of the Law Concerning Partial Revisions to the Companies Act (2014 Law No. 90), enforcement of the revised listing rules of the Tokyo Stock Exchange and start of application of the Corporate Governance Code, the Board of Directors resolved a partial revision to the corporate governance structure of Komatsu Ltd. in its meeting held in May 2015. The above diagram shows the revised structure. Organizational Profile Board of Directors Komatsu Ltd. holds Board of Directors' meetings periodically once or twice every month as a general rule. The Board of Directors deliberates and makes resolutions on important matters, determines management policies of Komatsu, and rigorously controls and supervises the execution of duties by all members of the executive management team, including Representative Directors. Of the 10 Directors on the Board, three are Outside Directors to ensure transparent and objective management. Audit & Supervisory Board The Audit & Supervisory Board determines such matters as audit policies and the division of duties among Audit & Supervisory Board Members. Each Audit & Supervisory Board Member attends meetings of the Board of Directors and other important meetings, and audits the execution of duties by Directors. Meetings of the Audit & Supervisory Board are in principle held periodically once or twice every month as a general rule, and the Board performs appropriate audits by such means as hearing reports from members of the executive management team on their execution of duties. The Company has also established the Office of Corporate Auditors' Staff to assist the Audit & Supervisory Board Members in their duties. At least half of the five Audit & Supervisory Board Members are Outside Audit & Supervisory Board Members. Compliance Komatsu Ltd. has established the Compliance Committee as the group to oversee compliance, and it regularly reports its reviews and activities to the Board of Directors. The Company has also established a system to ensure Directors and employees thorough compliance to business rules as well as laws and regulations through a variety of measures, including the provision of Komatsu Code of Worldwide Business Conduct, appointment of the Executive Officer in charge of compliance, and establishment of the Compliance Department. Through all of these, the Company works to supervise, educate and train Directors, Audit & Supervisory Board Members and employees. In addition, the Company has established the internal reporting system where those who are discretely reporting questionable actions in light of laws and regulations and business rules will not be penalized. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Corporate Governance Basic Stance Establishment and Improvement of Corporate Governance Organizations and Functions Organizational Profile Compliance Basic Stance We, at Komatsu Ltd., believe our corporate value is the total sum of trust given to us by society and all stakeholders. To become a company which enjoys more trust from shareholders and all other stakeholders, we are working to strengthen corporate governance, improve management efficiency, advocate corporate ethics and ensure sound management on a group-wide basis. To further improve the transparency of management for our shareholders and investors, we disclose information in a fair and timely manner and actively engage in investor relations' activities by holding meetings with shareholders and investors. Establishment and Improvement of Corporate Governance In 1999 Komatsu Ltd. introduced the Executive Officer System and has been working to separate management decisionmaking and supervisory functions from executive functions to the extent permitted by laws and regulations. At the same time, we also limit the Board of Directors to a small number of members and appoint Outside Directors and Outside Audit & Supervisory Board Members. To improve the effectiveness of discussions at meetings of the Board of Directors, we have worked to reform their operational aspect, primarily by putting in place a system to ensure thorough discussions of important management matters and prompt decision making. We have also established the International Advisory Board (IAB) as a means to supplement executive functions. Organizations and Functions KOMATSU REPORT 2015 Corporate Governance 21 SUSTAINABLE GROWTH WITH THE WORLD Note: Against the background of enforcement of the Law Concerning Partial Revisions to the Companies Act (2014 Law No. 90), enforcement of the revised listing rules of the Tokyo Stock Exchange and start of application of the Corporate Governance Code, the Board of Directors resolved a partial revision to the corporate governance structure of Komatsu Ltd. in its meeting held in May 2015. The above diagram shows the revised structure. Organizational Profile Board of Directors Komatsu Ltd. holds Board of Directors' meetings periodically once or twice every month as a general rule. The Board of Directors deliberates and makes resolutions on important matters, determines management policies of Komatsu, and rigorously controls and supervises the execution of duties by all members of the executive management team, including Representative Directors. Of the 10 Directors on the Board, three are Outside Directors to ensure transparent and objective management. Audit & Supervisory Board The Audit & Supervisory Board determines such matters as audit policies and the division of duties among Audit & Supervisory Board Members. Each Audit & Supervisory Board Member attends meetings of the Board of Directors and other important meetings, and audits the execution of duties by Directors. Meetings of the Audit & Supervisory Board are in principle held periodically once or twice every month as a general rule, and the Board performs appropriate audits by such means as hearing reports from members of the executive management team on their execution of duties. The Company has also established the Office of Corporate Auditors' Staff to assist the Audit & Supervisory Board Members in their duties. At least half of the five Audit & Supervisory Board Members are Outside Audit & Supervisory Board Members. Compliance Komatsu Ltd. has established the Compliance Committee as the group to oversee compliance, and it regularly reports its reviews and activities to the Board of Directors. The Company has also established a system to ensure Directors and employees thorough compliance to business rules as well as laws and regulations through a variety of measures, including the provision of Komatsu Code of Worldwide Business Conduct, appointment of the Executive Officer in charge of compliance, and establishment of the Compliance Department. Through all of these, the Company works to supervise, educate and train Directors, Audit & Supervisory Board Members and employees. In addition, the Company has established the internal reporting system where those who are discretely reporting questionable actions in light of laws and regulations and business rules will not be penalized. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Risk Management KOMATSU REPORT 2015 Risk Management 22 SUSTAINABLE GROWTH WITH THE WORLD Basic Principles and System for Risk Management Risk Management Business and Other Risks as well as Countermeasures Promoting a Business Continuity Plan Strengthening Information Security Komatsu recognizes as major risks those risk factors that could threaten the company's sustained growth, particularly compliance issues, environmental issues, product quality concerns, accidents, and information security problems. The company has adopted the following measures to counter these risks. Basic Principles and System for Risk Management In addition to the basic policy for risk management to ensure the business continuity and stable development, Komatsu has established Risk Management Rules to correctly recognize and manage risks. Komatsu has established a Risk Management Committee to devise relevant policies for the entire Komatsu Group, to review the risk management system, and evaluate and improve upon response measures in place for each risk, and take control of risks when they arise. The Risk Management Committee regularly reports on its deliberations and activities to the Board of Directors. When serious risks surface, Komatsu will establish an emergency headquarters and implement appropriate measures to minimize damage. Promoting a Business Continuity Plan In order to quickly confirm the safety of employees and their families in the event of an accident or disaster, and to be able to continue or quickly restart important business operations, Komatsu has formulated a Business Continuity Plan (BCP). In addition, at our head office buildings and at all production plants, we assume the possible occurrence of major-scale earthquakes and conduct regular training so that in the event of an actual disaster everyone one will be able to act quickly and appropriately. Furthermore, at our production plants, we are working on seismic strengthening for buildings and equipment, as well as reinforcement against damage from torrential rains, according to the production plant's plans. Also, when an epidemic of contagious diseases is evident, we will establish a special committee and take appropriate measures. For our employees we will compile a manual with information regarding preventative measures and what action to take in case of infection, and also have training sessions to promote thorough understanding. Strengthening Information Security Komatsu is developing an information security structure for the entire Group, placing the Information Security Committee at its center. As one sphere of this structure, the Company distributes an Information Security Guidebook to all employees. In conjunction with this, it provides education and awareness-raising activities based on the Guidebook, with the belief that it is essential to raise individual employee consciousness of information security. In addition, the company is developing a structure to protect information from being falsified, leaked, or lost, even against cases of negligence or outside intrusion. The company is also conducting information security audits, to ensure that these measures are working effectively, and to detect and address any problems. For more details, follow this link. Business and Other Risks as well as Countermeasures Komatsu has identified the following risks as its primary risks based on information currently available to it. 1. Economic and Market Conditions The business environment in which Komatsu operates and the market demand for its products may change substantially as a result of economic and market conditions, which differ from region to region. Changes in the business environment in which Komatsu operates may lead to a decline in sales, and inefficient inventory levels and/or production capacities, thereby causing Komatsu to record lower profitability and incur additional expenses. As a result, Komatsu's results of operations may be adversely affected. 2. Foreign Currency Exchange Rate Fluctuations A substantial portion of Komatsu's overseas sales is affected by foreign currency exchange rate fluctuations. In general, an appreciation of the Japanese yen against another currency would adversely affect Komatsu's results of operations, while a depreciation of the Japanese yen against another currency would have a favorable impact thereon. In addition, foreign currency exchange rate fluctuations may also affect the comparative prices between products sold by Komatsu and products sold by its foreign competitors in the same market, as well as the cost of materials used in the production of such products. 3. Fluctuations in Financial Markets While Komatsu is currently improving the efficiency of its assets to reduce its interest-bearing debt and minimizing the adverse effect of interest rate fluctuations by mixing long-term, fixed-interest funds, an increase in interest rates may increase Komatsu's interest expenses and thereby adversely affect Komatsu's results of operations. In addition, fluctuations in the financial markets, such as fluctuations in the fair value of marketable securities and interest rates, may also increase the unfunded obligation portion of Komatsu's pension plans or pension liabilities, which may result in an increase in pension expenses. Such an increase in interest expenses and pension expenses may adversely affect Komatsu's results of operations and financial condition. 4. Laws and Regulations of Different Countries Komatsu is subject to governmental regulations and approval procedures in the countries in which it operates. If the government of a given country were to introduce new laws and regulations or revise existing laws and regulations relating to customs duties, import and export controls, currency restrictions and other legal requirements, Komatsu may incur expenses in order to comply with such laws and regulations, or its development, production, sales and service operations may be affected adversely by them. With respect to transfer pricing between Komatsu and its affiliated companies, Komatsu is careful to comply with applicable taxation laws of Japan and the concerned foreign governments. Nevertheless, it is possible that Komatsu may be viewed by the concerned tax authorities as having used inappropriate pricing. Furthermore, if intergovernmental negotiations were to fail, Komatsu may be charged with double or additional taxation. When facing such an unexpected situation, Komatsu may experience an unfavorable impact on its business results. 5. Environmental Laws and Regulations Komatsu's products and business operations are required to meet increasingly stringent environmental laws and regulations in many countries in which Komatsu operates. To comply with the environmental laws and other related regulations of concerned governments, Komatsu expends a significant share of its management resources, such as research and development expenses. If Komatsu is required to incur additional expenses and make additional capital investments due to revised environmental regulations adopted in the future, or if its development, production, sales and service operations are adversely affected by such revised regulations, Komatsu may experience an unfavorable impact on its business results. 6. Product and Quality Liability While Komatsu endeavors to sustain and improve the Quality and Reliability of its operations and products based on stringent standards established internally, Komatsu may face product and quality liability claims or become exposed to other liabilities, if unexpected defects in its products result in recalls or accidents. If the costs for addressing such claims or other liabilities are not covered by Komatsu's existing insurance policies or other protective means, such claims may adversely affect its profits. 7. Alliances and Collaborative Relationships Komatsu has entered into various alliances and collaborative relationships with distributors, suppliers and other companies to reinforce its international competitiveness. Through such arrangements, Komatsu is working to improve its product development, production, sales and service capabilities. However, Komatsu's failure to attain expected results or the termination of such alliances or collaborative relationships may adversely affect Komatsu's results of operations. 8. Procurement, Production and Other Matters Komatsu's procurement of parts and materials for its products is exposed to fluctuations in commodity and energy prices. Price increases in commodities, such as steel materials, as well as energies, such as crude oil and electricity, may increase the production cost of Komatsu's products. In addition, a shortage of product parts and materials, bankruptcies of suppliers or production discontinuation by suppliers of products used by Komatsu may make it difficult for Komatsu to engage in the timely procurement of parts and materials and manufacture of its products, thereby lowering Komatsu's production efficiency. With respect to an increase in the cost of production as mainly affected by an increase in the cost of materials, Komatsu mainly strives to reduce other costs and make price adjustments of its products. Komatsu also strives to minimize the effects of possible procurement or manufacturing issues by promoting closer collaboration among its related business divisions. However, if the increase in commodity and energy prices were to exceed Komatsu's expectations or a prolonged shortage of materials and parts were to occur, Komatsu's results of operations may be adversely affected. 9. Information Security, Intellectual Property and Other Matters Komatsu may obtain confidential information concerning its customers and individuals in the normal course of its business. Komatsu also holds confidential business and technological information. Komatsu safeguards such confidential information with the utmost care. To forestall unauthorized access by means of cyber-attacks, tampering, destruction, leakage and losses, Komatsu employs appropriate safety measures, including implementing technological safety measures and strengthening its information management capabilities. However, when its network and information systems crash and/or have problems, such as a leak of confidential information concerning customers and individuals, occur, Komatsu may become liable for damages, or its reputation or its customers' confidence in Komatsu may be adversely affected. In addition, if Komatsu's confidential business and technological information were leaked or misused by a third party, or Komatsu's intellectual properties were infringed upon by a third party, or Komatsu were held liable for infringing on a third party's intellectual property rights, Komatsu's business results may be adversely affected. 10. Natural Calamities, Wars, Terrorism, Accidents and Other Matters If natural disasters, such as earthquakes, tsunamis and floods, epidemics, radioactive contamination, wars, terrorist acts, riots, accidents, such as fires and explosions, unforeseeable criticism or interference by third parties or computer virus infections were to occur in the regions in which Komatsu operates, Komatsu may incur extensive damage to one or more of its facilities that they could not become fully operational within a short period of time. Even if Komatsu's operations were not directly harmed by such events, confusion in logistic and supply networks, shortages in the supply of electric power, gas and other utilities, telecommunication problems and/or problems of supplier's production may continue for a long period of time. Accordingly, if delays or disruption in the procurement of materials and parts, or the production and sales of Komatsu's products and services, or deterioration of the funding environment resulting from confusion on capital markets were to take place as a result of such events, Komatsu's business results may be adversely affected. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Risk Management Basic Principles and System for Risk Management Promoting a Business Continuity Plan Strengthening Information Security Business and Other Risks as well as Countermeasures Komatsu recognizes as major risks those risk factors that could threaten the company's sustained growth, particularly compliance issues, environmental issues, product quality concerns, accidents, and information security problems. The company has adopted the following measures to counter these risks. Basic Principles and System for Risk Management In addition to the basic policy for risk management to ensure the business continuity and stable development, Komatsu has established Risk Management Rules to correctly recognize and manage risks. Komatsu has established a Risk Management Committee to devise relevant policies for the entire Komatsu Group, to review the risk management system, and evaluate and improve upon response measures in place for each risk, and take control of risks when they arise. The Risk Management Committee regularly reports on its deliberations and activities to the Board of Directors. When serious risks surface, Komatsu will establish an emergency headquarters and implement appropriate measures to minimize damage. Promoting a Business Continuity Plan In order to quickly confirm the safety of employees and their families in the event of an accident or disaster, and to be able to continue or quickly restart important business operations, Komatsu has formulated a Business Continuity Plan (BCP). In addition, at our head office buildings and at all production plants, we assume the possible occurrence of major-scale earthquakes and conduct regular training so that in the event of an actual disaster everyone one will be able to act quickly and appropriately. Furthermore, at our production plants, we are working on seismic strengthening for buildings and equipment, as well as reinforcement against damage from torrential rains, according to the production plant's plans. Also, when an epidemic of contagious diseases is evident, we will establish a special committee and take appropriate measures. For our employees we will compile a manual with information regarding preventative measures and what action to take in case of infection, and also have training sessions to promote thorough understanding. Strengthening Information Security Komatsu is developing an information security structure for the entire Group, placing the Information Security Committee at its center. As one sphere of this structure, the Company distributes an Information Security Guidebook to all employees. In conjunction with this, it provides education and awareness-raising activities based on the Guidebook, with the belief that it is essential to raise individual employee consciousness of information security. In addition, the company is developing a structure to protect information from being falsified, leaked, or lost, even against cases of negligence or outside intrusion. The company is also conducting information security audits, to ensure that these measures are working effectively, and to detect and address any problems. For more details, follow this link. KOMATSU REPORT 2015 Business and Other Risks as well as Countermeasures SUSTAINABLE GROWTH WITH THE WORLD Risk Management 23 Komatsu has identified the following risks as its primary risks based on information currently available to it. 1. Economic and Market Conditions The business environment in which Komatsu operates and the market demand for its products may change substantially as a result of economic and market conditions, which differ from region to region. Changes in the business environment in which Komatsu operates may lead to a decline in sales, and inefficient inventory levels and/or production capacities, thereby causing Komatsu to record lower profitability and incur additional expenses. As a result, Komatsu's results of operations may be adversely affected. 2. Foreign Currency Exchange Rate Fluctuations A substantial portion of Komatsu's overseas sales is affected by foreign currency exchange rate fluctuations. In general, an appreciation of the Japanese yen against another currency would adversely affect Komatsu's results of operations, while a depreciation of the Japanese yen against another currency would have a favorable impact thereon. In addition, foreign currency exchange rate fluctuations may also affect the comparative prices between products sold by Komatsu and products sold by its foreign competitors in the same market, as well as the cost of materials used in the production of such products. 3. Fluctuations in Financial Markets While Komatsu is currently improving the efficiency of its assets to reduce its interest-bearing debt and minimizing the adverse effect of interest rate fluctuations by mixing long-term, fixed-interest funds, an increase in interest rates may increase Komatsu's interest expenses and thereby adversely affect Komatsu's results of operations. In addition, fluctuations in the financial markets, such as fluctuations in the fair value of marketable securities and interest rates, may also increase the unfunded obligation portion of Komatsu's pension plans or pension liabilities, which may result in an increase in pension expenses. Such an increase in interest expenses and pension expenses may adversely affect Komatsu's results of operations and financial condition. 4. Laws and Regulations of Different Countries Komatsu is subject to governmental regulations and approval procedures in the countries in which it operates. If the government of a given country were to introduce new laws and regulations or revise existing laws and regulations relating to customs duties, import and export controls, currency restrictions and other legal requirements, Komatsu may incur expenses in order to comply with such laws and regulations, or its development, production, sales and service operations may be affected adversely by them. With respect to transfer pricing between Komatsu and its affiliated companies, Komatsu is careful to comply with applicable taxation laws of Japan and the concerned foreign governments. Nevertheless, it is possible that Komatsu may be viewed by the concerned tax authorities as having used inappropriate pricing. Furthermore, if intergovernmental negotiations were to fail, Komatsu may be charged with double or additional taxation. When facing such an unexpected situation, Komatsu may experience an unfavorable impact on its business results. 5. Environmental Laws and Regulations Komatsu's products and business operations are required to meet increasingly stringent environmental laws and regulations in many countries in which Komatsu operates. To comply with the environmental laws and other related regulations of concerned governments, Komatsu expends a significant share of its management resources, such as research and development expenses. If Komatsu is required to incur additional expenses and make additional capital investments due to revised environmental regulations adopted in the future, or if its development, production, sales and service operations are adversely affected by such revised regulations, Komatsu may experience an unfavorable impact on its business results. 6. Product and Quality Liability While Komatsu endeavors to sustain and improve the Quality and Reliability of its operations and products based on stringent standards established internally, Komatsu may face product and quality liability claims or become exposed to other liabilities, if unexpected defects in its products result in recalls or accidents. If the costs for addressing such claims or other liabilities are not covered by Komatsu's existing insurance policies or other protective means, such claims may adversely affect its profits. 7. Alliances and Collaborative Relationships Komatsu has entered into various alliances and collaborative relationships with distributors, suppliers and other companies to reinforce its international competitiveness. Through such arrangements, Komatsu is working to improve its product development, production, sales and service capabilities. However, Komatsu's failure to attain expected results or the termination of such alliances or collaborative relationships may adversely affect Komatsu's results of operations. 8. Procurement, Production and Other Matters Komatsu's procurement of parts and materials for its products is exposed to fluctuations in commodity and energy prices. Price increases in commodities, such as steel materials, as well as energies, such as crude oil and electricity, may increase the production cost of Komatsu's products. In addition, a shortage of product parts and materials, bankruptcies of suppliers or production discontinuation by suppliers of products used by Komatsu may make it difficult for Komatsu to engage in the timely procurement of parts and materials and manufacture of its products, thereby lowering Komatsu's production efficiency. With respect to an increase in the cost of production as mainly affected by an increase in the cost of materials, Komatsu mainly strives to reduce other costs and make price adjustments of its products. Komatsu also strives to minimize the effects of possible procurement or manufacturing issues by promoting closer collaboration among its related business divisions. However, if the increase in commodity and energy prices were to exceed Komatsu's expectations or a prolonged shortage of materials and parts were to occur, Komatsu's results of operations may be adversely affected. 9. Information Security, Intellectual Property and Other Matters Komatsu may obtain confidential information concerning its customers and individuals in the normal course of its business. Komatsu also holds confidential business and technological information. Komatsu safeguards such confidential information with the utmost care. To forestall unauthorized access by means of cyber-attacks, tampering, destruction, leakage and losses, Komatsu employs appropriate safety measures, including implementing technological safety measures and strengthening its information management capabilities. However, when its network and information systems crash and/or have problems, such as a leak of confidential information concerning customers and individuals, occur, Komatsu may become liable for damages, or its reputation or its customers' confidence in Komatsu may be adversely affected. In addition, if Komatsu's confidential business and technological information were leaked or misused by a third party, or Komatsu's intellectual properties were infringed upon by a third party, or Komatsu were held liable for infringing on a third party's intellectual property rights, Komatsu's business results may be adversely affected. 10. Natural Calamities, Wars, Terrorism, Accidents and Other Matters If natural disasters, such as earthquakes, tsunamis and floods, epidemics, radioactive contamination, wars, terrorist acts, riots, accidents, such as fires and explosions, unforeseeable criticism or interference by third parties or computer virus infections were to occur in the regions in which Komatsu operates, Komatsu may incur extensive damage to one or more of its facilities that they could not become fully operational within a short period of time. Even if Komatsu's operations were not directly harmed by such events, confusion in logistic and supply networks, shortages in the supply of electric power, gas and other utilities, telecommunication problems and/or problems of supplier's production may continue for a long period of time. Accordingly, if delays or disruption in the procurement of materials and parts, or the production and sales of Komatsu's products and services, or deterioration of the funding environment resulting from confusion on capital markets were to take place as a result of such events, Komatsu's business results may be adversely affected. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Risk Management Basic Principles and System for Risk Management Promoting a Business Continuity Plan Strengthening Information Security Business and Other Risks as well as Countermeasures Komatsu recognizes as major risks those risk factors that could threaten the company's sustained growth, particularly compliance issues, environmental issues, product quality concerns, accidents, and information security problems. The company has adopted the following measures to counter these risks. Basic Principles and System for Risk Management In addition to the basic policy for risk management to ensure the business continuity and stable development, Komatsu has established Risk Management Rules to correctly recognize and manage risks. Komatsu has established a Risk Management Committee to devise relevant policies for the entire Komatsu Group, to review the risk management system, and evaluate and improve upon response measures in place for each risk, and take control of risks when they arise. The Risk Management Committee regularly reports on its deliberations and activities to the Board of Directors. When serious risks surface, Komatsu will establish an emergency headquarters and implement appropriate measures to minimize damage. Promoting a Business Continuity Plan In order to quickly confirm the safety of employees and their families in the event of an accident or disaster, and to be able to continue or quickly restart important business operations, Komatsu has formulated a Business Continuity Plan (BCP). In addition, at our head office buildings and at all production plants, we assume the possible occurrence of major-scale earthquakes and conduct regular training so that in the event of an actual disaster everyone one will be able to act quickly and appropriately. Furthermore, at our production plants, we are working on seismic strengthening for buildings and equipment, as well as reinforcement against damage from torrential rains, according to the production plant's plans. Also, when an epidemic of contagious diseases is evident, we will establish a special committee and take appropriate measures. For our employees we will compile a manual with information regarding preventative measures and what action to take in case of infection, and also have training sessions to promote thorough understanding. Strengthening Information Security Komatsu is developing an information security structure for the entire Group, placing the Information Security Committee at its center. As one sphere of this structure, the Company distributes an Information Security Guidebook to all employees. In conjunction with this, it provides education and awareness-raising activities based on the Guidebook, with the belief that it is essential to raise individual employee consciousness of information security. In addition, the company is developing a structure to protect information from being falsified, leaked, or lost, even against cases of negligence or outside intrusion. The company is also conducting information security audits, to ensure that these measures are working effectively, and to detect and address any problems. For more details, follow this link. Business and Other Risks as well as Countermeasures Komatsu has identified the following risks as its primary risks based on information currently available to it. 1. Economic and Market Conditions The business environment in which Komatsu operates and the market demand for its products may change substantially as a result of economic and market conditions, which differ from region to region. Changes in the business environment in which Komatsu operates may lead to a decline in sales, and inefficient inventory levels and/or production capacities, thereby causing Komatsu to record lower profitability and incur additional expenses. As a result, Komatsu's results of operations may be adversely affected. 2. Foreign Currency Exchange Rate Fluctuations A substantial portion of Komatsu's overseas sales is affected by foreign currency exchange rate fluctuations. In general, an appreciation of the Japanese yen against another currency would adversely affect Komatsu's results of operations, while a depreciation of the Japanese yen against another currency would have a favorable impact thereon. In addition, foreign currency exchange rate fluctuations may also affect the comparative prices between products sold by Komatsu and products sold by its foreign competitors in the same market, as well as the cost of materials used in the production of such products. 3. Fluctuations in Financial Markets While Komatsu is currently improving the efficiency of its assets to reduce its interest-bearing debt and minimizing the adverse effect of interest rate fluctuations by mixing long-term, fixed-interest funds, an increase in interest rates may increase Komatsu's interest expenses and thereby adversely affect Komatsu's results of operations. In addition, fluctuations in the financial markets, such as fluctuations in the fair value of marketable securities and interest rates, may also increase the unfunded obligation portion of Komatsu's pension plans or pension liabilities, which may result in an increase in pension expenses. Such an increase in interest expenses and pension expenses may adversely affect Komatsu's results of operations and financial condition. 4. Laws and Regulations of Different Countries Komatsu is subject to governmental regulations and approval procedures in the countries in which it operates. If the government of a given country were to introduce new laws and regulations or revise existing laws and regulations relating to customs duties, import and export controls, currency restrictions and other legal requirements, Komatsu may incur expenses in order to comply with such laws and regulations, or its development, production, sales and service operations may be affected adversely by them. With respect to transfer pricing between Komatsu and its affiliated companies, Komatsu is careful to comply with applicable taxation laws of Japan and the concerned foreign governments. Nevertheless, it is possible that Komatsu may be viewed by the concerned tax authorities as having used inappropriate pricing. Furthermore, if intergovernmental negotiations were to fail, Komatsu may be charged with double or additional taxation. When facing such an unexpected situation, Komatsu may experience an unfavorable impact on its business results. 5. Environmental Laws and Regulations Komatsu's products and business operations are required to meet increasingly stringent environmental laws and regulations in many countries in which Komatsu operates. To comply with the environmental laws and other related regulations of concerned governments, Komatsu expends a significant share of its management resources, such as research and development expenses. If Komatsu is required to incur additional expenses and make additional capital investments due to revised environmental regulations adopted in the future, or if its development, production, sales and service operations are adversely affected KOMATSU REPORT 2015 by such revised regulations, Komatsu may experience an unfavorable impact on its business results. Risk Management 24 SUSTAINABLE GROWTH WITH THE WORLD 6. Product and Quality Liability While Komatsu endeavors to sustain and improve the Quality and Reliability of its operations and products based on stringent standards established internally, Komatsu may face product and quality liability claims or become exposed to other liabilities, if unexpected defects in its products result in recalls or accidents. If the costs for addressing such claims or other liabilities are not covered by Komatsu's existing insurance policies or other protective means, such claims may adversely affect its profits. 7. Alliances and Collaborative Relationships Komatsu has entered into various alliances and collaborative relationships with distributors, suppliers and other companies to reinforce its international competitiveness. Through such arrangements, Komatsu is working to improve its product development, production, sales and service capabilities. However, Komatsu's failure to attain expected results or the termination of such alliances or collaborative relationships may adversely affect Komatsu's results of operations. 8. Procurement, Production and Other Matters Komatsu's procurement of parts and materials for its products is exposed to fluctuations in commodity and energy prices. Price increases in commodities, such as steel materials, as well as energies, such as crude oil and electricity, may increase the production cost of Komatsu's products. In addition, a shortage of product parts and materials, bankruptcies of suppliers or production discontinuation by suppliers of products used by Komatsu may make it difficult for Komatsu to engage in the timely procurement of parts and materials and manufacture of its products, thereby lowering Komatsu's production efficiency. With respect to an increase in the cost of production as mainly affected by an increase in the cost of materials, Komatsu mainly strives to reduce other costs and make price adjustments of its products. Komatsu also strives to minimize the effects of possible procurement or manufacturing issues by promoting closer collaboration among its related business divisions. However, if the increase in commodity and energy prices were to exceed Komatsu's expectations or a prolonged shortage of materials and parts were to occur, Komatsu's results of operations may be adversely affected. 9. Information Security, Intellectual Property and Other Matters Komatsu may obtain confidential information concerning its customers and individuals in the normal course of its business. Komatsu also holds confidential business and technological information. Komatsu safeguards such confidential information with the utmost care. To forestall unauthorized access by means of cyber-attacks, tampering, destruction, leakage and losses, Komatsu employs appropriate safety measures, including implementing technological safety measures and strengthening its information management capabilities. However, when its network and information systems crash and/or have problems, such as a leak of confidential information concerning customers and individuals, occur, Komatsu may become liable for damages, or its reputation or its customers' confidence in Komatsu may be adversely affected. In addition, if Komatsu's confidential business and technological information were leaked or misused by a third party, or Komatsu's intellectual properties were infringed upon by a third party, or Komatsu were held liable for infringing on a third party's intellectual property rights, Komatsu's business results may be adversely affected. 10. Natural Calamities, Wars, Terrorism, Accidents and Other Matters If natural disasters, such as earthquakes, tsunamis and floods, epidemics, radioactive contamination, wars, terrorist acts, riots, accidents, such as fires and explosions, unforeseeable criticism or interference by third parties or computer virus infections were to occur in the regions in which Komatsu operates, Komatsu may incur extensive damage to one or more of its facilities that they could not become fully operational within a short period of time. Even if Komatsu's operations were not directly harmed by such events, confusion in logistic and supply networks, shortages in the supply of electric power, gas and other utilities, telecommunication problems and/or problems of supplier's production may continue for a long period of time. Accordingly, if delays or disruption in the procurement of materials and parts, or the production and sales of Komatsu's products and services, or deterioration of the funding environment resulting from confusion on capital markets were to take place as a result of such events, Komatsu's business results may be adversely affected. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 ESG Environmental Conservation Efforts ESG Environmental Conservation Efforts KOMATSU REPORT 2015 KOMATSU REPORT 2015 KOMATSU REPORT 2015 KOMATSU REPORT 2015 ESG Environmental Conservation Efforts ESG Environmental Conservation Efforts ESG Environmental Conservation Efforts ESG Environmental Conservation Efforts KOMATSU REPORT 2015 ESG Environmental Conservation Efforts Komatsu's Relationship with Nature Komatsu's Relationship with Nature KOMATSU REPORT 2015 Komatsu Earth Environment Charter Komatsu Earth Environment Charter ESG Environmental Conservation Efforts Topics Topics Topics Topics Topics Topics Topics Environmental Conservation Efforts 25 Komatsu's Relationship with Nature Komatsu's Relationship with Nature Komatsu's Relationship with Nature Komatsu's Relationship with Nature Komatsu Earth Environment Charter Komatsu Earth Environment Charter Komatsu Earth Environment Charter Komatsu Earth Environment Charter Komatsu's Relationship with Nature KOMATSU REPORT 2015 Komatsu's Relationship with Nature Komatsu's Relationship with Nature SUSTAINABLE GROWTH WITH THE WORLD Komatsu's Relationship with Nature Komatsu's Relationship with Nature Komatsu's Relationship with Nature Komatsu's Relationship with Nature Environmental Conservation Efforts Komatsu's Relationship with Nature Komatsu Earth Environment Charter Komatsu Earth Environment Charter Komatsu's Relationship with Nature Topics we, at Komatsu, have placed the focus on the following four key areas: initiatives across business areas guided by the fundamental principles of In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global initiatives across business areas guided by the fundamental principles of In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global initiatives across business areas guided by the fundamental principles of In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global initiatives across business areas guided by the fundamental principles of initiatives across business areas guided by the fundamental principles of In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global initiatives across business areas guided by the fundamental principles of initiatives across business areas guided by the fundamental principles of initiatives across business areas guided by the fundamental principles of In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global Komatsu's Relationship with Nature In recognition of the fact that our business activities affect the environment on a regional and global level, In recognition of the fact that our business activities affect the environment on a regional and global level, we, at Komatsu, have placed the focus on the following four key areas: In recognition of the fact that our business activities affect the environment on a regional and global level, we, at Komatsu, have placed the focus on the following four key areas: In recognition of the fact that our business activities affect the environment on a regional and global level, In recognition of the fact that our business activities affect the environment on a regional and global level, In recognition of the fact that our business activities affect the environment on a regional and global level, we, at Komatsu, have placed the focus on the following four key areas: 1) Climate Change we, at Komatsu, have placed the focus on the following four key areas: 1) Climate Change In recognition of the fact that our business activities affect the environment on a regional and global level, we, at Komatsu, have placed the focus on the following four key areas: we, at Komatsu, have placed the focus on the following four key areas: 2) Establishment of a Sound Material-Cycle Society 1) Climate Change 2) Establishment of a Sound Material-Cycle Society 1) Climate Change we, at Komatsu, have placed the focus on the following four key areas: 1) Climate Change 1) Climate Change 3) Conservation of Air, Water and Other environments as well as Management of Chemical 2) Establishment of a Sound Material-Cycle Society 3) Conservation of Air, Water and Other environments as well as Management of Chemical In recognition of the fact that our business activities affect the environment on a regional and global level, 2) Establishment of a Sound Material-Cycle Society 1) Climate Change 2) Establishment of a Sound Material-Cycle Society 2) Establishment of a Sound Material-Cycle Society Substances 3) Conservation of Air, Water and Other environments as well as Management of Chemical Substances 3) Conservation of Air, Water and Other environments as well as Management of Chemical 2) Establishment of a Sound Material-Cycle Society 3) Conservation of Air, Water and Other environments as well as Management of Chemical 3) Conservation of Air, Water and Other environments as well as Management of Chemical 4) Biodiversity Substances 4) Biodiversity Substances 1) Climate Change 3) Conservation of Air, Water and Other environments as well as Management of Chemical Substances Substances 4) Biodiversity 4) Biodiversity 2) Establishment of a Sound Material-Cycle Society Substances 4) Biodiversity 4) Biodiversity 3) Conservation of Air, Water and Other environments as well as Management of Chemical 4) Biodiversity Substances 1) Contributions to Realization of Sustainable Society, 1) Contributions to Realization of Sustainable Society, 4) Biodiversity 2) Simultaneous Realization of Environmental and Economic Performance, and 1) Contributions to Realization of Sustainable Society, 2) Simultaneous Realization of Environmental and Economic Performance, and 1) Contributions to Realization of Sustainable Society, 1) Contributions to Realization of Sustainable Society, 1) Contributions to Realization of Sustainable Society, 3) Observance of Corporate Social Responsibility 2) Simultaneous Realization of Environmental and Economic Performance, and 3) Observance of Corporate Social Responsibility 2) Simultaneous Realization of Environmental and Economic Performance, and 1) Contributions to Realization of Sustainable Society, 2) Simultaneous Realization of Environmental and Economic Performance, and 2) Simultaneous Realization of Environmental and Economic Performance, and 3) Observance of Corporate Social Responsibility 3) Observance of Corporate Social Responsibility 2) Simultaneous Realization of Environmental and Economic Performance, and 3) Observance of Corporate Social Responsibility 3) Observance of Corporate Social Responsibility 1) Contributions to Realization of Sustainable Society, 3) Observance of Corporate Social Responsibility Komatsu Earth Environment Charter (June 2010 revision) Komatsu Earth Environment Charter (June 2010 revision) 2) Simultaneous Realization of Environmental and Economic Performance, and Komatsu Earth Environment Charter (June 2010 revision) 3) Observance of Corporate Social Responsibility Komatsu Earth Environment Charter (June 2010 revision) Komatsu Earth Environment Charter (June 2010 revision) Komatsu Earth Environment Charter (June 2010 revision) Corporate Principles Komatsu Earth Environment Charter (June 2010 revision) Corporate Principles Corporate Principles Corporate Principles Corporate Principles Corporate Principles Komatsu Earth Environment Charter (June 2010 revision) Corporate Principles 1. Contributions to Realization of Sustainable Society 1. Contributions to Realization of Sustainable Society 1. Contributions to Realization of Sustainable Society 1. Contributions to Realization of Sustainable Society 1. Contributions to Realization of Sustainable Society 1. Contributions to Realization of Sustainable Society 1. Contributions to Realization of Sustainable Society 2. Simultaneous Realization of Environmental and Economic Performance 2. Simultaneous Realization of Environmental and Economic Performance 2. Simultaneous Realization of Environmental and Economic Performance 2. Simultaneous Realization of Environmental and Economic Performance 2. Simultaneous Realization of Environmental and Economic Performance 2. Simultaneous Realization of Environmental and Economic Performance 2. Simultaneous Realization of Environmental and Economic Performance Mankind must not only promote the further growth of a rich and comfortable society but also pass Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of our planet earth to future generations in a sound and Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of our planet earth to future generations in a sound and Mankind must not only promote the further growth of a rich and comfortable society but also pass Mankind must not only promote the further growth of a rich and comfortable society but also pass healthy condition. Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of our planet earth to future generations in a sound and healthy condition. down this indispensable environment of our planet earth to future generations in a sound and down this indispensable environment of our planet earth to future generations in a sound and Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of our planet earth to future generations in a sound and healthy condition. We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority healthy condition. We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority healthy condition. down this indispensable environment of our planet earth to future generations in a sound and healthy condition. management tasks, and endeavor to contribute to the sustainable growth of society by integrating We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority management tasks, and endeavor to contribute to the sustainable growth of society by integrating We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority Mankind must not only promote the further growth of a rich and comfortable society but also pass healthy condition. We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority advanced technologies into environmental conservation efforts in all our business activities. This is We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority management tasks, and endeavor to contribute to the sustainable growth of society by integrating advanced technologies into environmental conservation efforts in all our business activities. This is management tasks, and endeavor to contribute to the sustainable growth of society by integrating down this indispensable environment of our planet earth to future generations in a sound and management tasks, and endeavor to contribute to the sustainable growth of society by integrating We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority represented by our hybrid construction equipment which features a substantial reduction of CO management tasks, and endeavor to contribute to the sustainable growth of society by integrating 2 advanced technologies into environmental conservation efforts in all our business activities. This is represented by our hybrid construction equipment which features a substantial reduction of CO 2 advanced technologies into environmental conservation efforts in all our business activities. This is healthy condition. advanced technologies into environmental conservation efforts in all our business activities. This is management tasks, and endeavor to contribute to the sustainable growth of society by integrating emissions while in operation and by our superior manufacturing. advanced technologies into environmental conservation efforts in all our business activities. This is represented by our hybrid construction equipment which features a substantial reduction of CO 2 emissions while in operation and by our superior manufacturing. represented by our hybrid construction equipment which features a substantial reduction of CO 2 represented by our hybrid construction equipment which features a substantial reduction of CO We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority advanced technologies into environmental conservation efforts in all our business activities. This is 2 represented by our hybrid construction equipment which features a substantial reduction of CO emissions while in operation and by our superior manufacturing. 2 emissions while in operation and by our superior manufacturing. emissions while in operation and by our superior manufacturing. management tasks, and endeavor to contribute to the sustainable growth of society by integrating represented by our hybrid construction equipment which features a substantial reduction of CO 2 emissions while in operation and by our superior manufacturing. We are committed to improving both environmental performance and economic efficiency, as a We are committed to improving both environmental performance and economic efficiency, as a advanced technologies into environmental conservation efforts in all our business activities. This is emissions while in operation and by our superior manufacturing. group of companies working toward superior manufacturing for customer satisfaction. To this end, We are committed to improving both environmental performance and economic efficiency, as a group of companies working toward superior manufacturing for customer satisfaction. To this end, represented by our hybrid construction equipment which features a substantial reduction of CO We are committed to improving both environmental performance and economic efficiency, as a 2 We are committed to improving both environmental performance and economic efficiency, as a we constantly take up the challenge of advancing technologies to develop creative products that We are committed to improving both environmental performance and economic efficiency, as a group of companies working toward superior manufacturing for customer satisfaction. To this end, we constantly take up the challenge of advancing technologies to develop creative products that emissions while in operation and by our superior manufacturing. group of companies working toward superior manufacturing for customer satisfaction. To this end, group of companies working toward superior manufacturing for customer satisfaction. To this end, We are committed to improving both environmental performance and economic efficiency, as a improve both environmental performance throughout the product's life cycle and the product's group of companies working toward superior manufacturing for customer satisfaction. To this end, we constantly take up the challenge of advancing technologies to develop creative products that improve both environmental performance throughout the product's life cycle and the product's we constantly take up the challenge of advancing technologies to develop creative products that we constantly take up the challenge of advancing technologies to develop creative products that group of companies working toward superior manufacturing for customer satisfaction. To this end, economic performance at the same time. we constantly take up the challenge of advancing technologies to develop creative products that improve both environmental performance throughout the product's life cycle and the product's economic performance at the same time. improve both environmental performance throughout the product's life cycle and the product's improve both environmental performance throughout the product's life cycle and the product's We are committed to improving both environmental performance and economic efficiency, as a we constantly take up the challenge of advancing technologies to develop creative products that improve both environmental performance throughout the product's life cycle and the product's economic performance at the same time. economic performance at the same time. economic performance at the same time. group of companies working toward superior manufacturing for customer satisfaction. To this end, improve both environmental performance throughout the product's life cycle and the product's economic performance at the same time. Each company of the Komatsu Group promotes environmental conservation by not only complying Each company of the Komatsu Group promotes environmental conservation by not only complying we constantly take up the challenge of advancing technologies to develop creative products that economic performance at the same time. with the applicable laws and regulations of the concerned host community, region and country but Each company of the Komatsu Group promotes environmental conservation by not only complying with the applicable laws and regulations of the concerned host community, region and country but Each company of the Komatsu Group promotes environmental conservation by not only complying improve both environmental performance throughout the product's life cycle and the product's Each company of the Komatsu Group promotes environmental conservation by not only complying also by establishing its voluntary standards which consider global and local environmental concerns. Each company of the Komatsu Group promotes environmental conservation by not only complying with the applicable laws and regulations of the concerned host community, region and country but also by establishing its voluntary standards which consider global and local environmental concerns. with the applicable laws and regulations of the concerned host community, region and country but economic performance at the same time. with the applicable laws and regulations of the concerned host community, region and country but Each company of the Komatsu Group promotes environmental conservation by not only complying Each company of the Group also strives to fulfill its corporate social responsibility by actively with the applicable laws and regulations of the concerned host community, region and country but also by establishing its voluntary standards which consider global and local environmental concerns. Each company of the Group also strives to fulfill its corporate social responsibility by actively also by establishing its voluntary standards which consider global and local environmental concerns. also by establishing its voluntary standards which consider global and local environmental concerns. with the applicable laws and regulations of the concerned host community, region and country but participating in local environmental conservation programs and thereby promoting close-knit also by establishing its voluntary standards which consider global and local environmental concerns. Each company of the Group also strives to fulfill its corporate social responsibility by actively participating in local environmental conservation programs and thereby promoting close-knit Each company of the Group also strives to fulfill its corporate social responsibility by actively Each company of the Group also strives to fulfill its corporate social responsibility by actively Each company of the Komatsu Group promotes environmental conservation by not only complying also by establishing its voluntary standards which consider global and local environmental concerns. communication with local communities, while striving to become a company trusted by all Komatsu Each company of the Group also strives to fulfill its corporate social responsibility by actively participating in local environmental conservation programs and thereby promoting close-knit communication with local communities, while striving to become a company trusted by all Komatsu participating in local environmental conservation programs and thereby promoting close-knit participating in local environmental conservation programs and thereby promoting close-knit with the applicable laws and regulations of the concerned host community, region and country but Each company of the Group also strives to fulfill its corporate social responsibility by actively stakeholders. participating in local environmental conservation programs and thereby promoting close-knit communication with local communities, while striving to become a company trusted by all Komatsu stakeholders. communication with local communities, while striving to become a company trusted by all Komatsu communication with local communities, while striving to become a company trusted by all Komatsu also by establishing its voluntary standards which consider global and local environmental concerns. participating in local environmental conservation programs and thereby promoting close-knit communication with local communities, while striving to become a company trusted by all Komatsu stakeholders. stakeholders. stakeholders. Each company of the Group also strives to fulfill its corporate social responsibility by actively communication with local communities, while striving to become a company trusted by all Komatsu stakeholders. participating in local environmental conservation programs and thereby promoting close-knit stakeholders. 3. Observance of Corporate Social Responsibility 3. Observance of Corporate Social Responsibility 3. Observance of Corporate Social Responsibility 3. Observance of Corporate Social Responsibility 3. Observance of Corporate Social Responsibility 3. Observance of Corporate Social Responsibility 3. Observance of Corporate Social Responsibility 2. Simultaneous Realization of Environmental and Economic Performance 1. Contributions to Realization of Sustainable Society 3. Observance of Corporate Social Responsibility Corporate Principles Guidelines for Corporate Activity 1. Basic Stances on Earth Environmental Problems 1. Basic Stances on Earth Environmental Problems 1. Basic Stances on Earth Environmental Problems 1. Basic Stances on Earth Environmental Problems 1. Basic Stances on Earth Environmental Problems 1. Basic Stances on Earth Environmental Problems 1. Basic Stances on Earth Environmental Problems communication with local communities, while striving to become a company trusted by all Komatsu We, at the Komatsu Group, work for sustainable society and earth environment through our global We, at the Komatsu Group, work for sustainable society and earth environment through our global stakeholders. business operations by addressing the following four environmental problems with the stances We, at the Komatsu Group, work for sustainable society and earth environment through our global business operations by addressing the following four environmental problems with the stances We, at the Komatsu Group, work for sustainable society and earth environment through our global We, at the Komatsu Group, work for sustainable society and earth environment through our global discussed below. We, at the Komatsu Group, work for sustainable society and earth environment through our global business operations by addressing the following four environmental problems with the stances discussed below. business operations by addressing the following four environmental problems with the stances business operations by addressing the following four environmental problems with the stances We, at the Komatsu Group, work for sustainable society and earth environment through our global business operations by addressing the following four environmental problems with the stances discussed below. 1) Climate change discussed below. 1) Climate change discussed below. business operations by addressing the following four environmental problems with the stances discussed below. 2) Establishment of a sound material-cycle society 1) Climate change 2) Establishment of a sound material-cycle society 1) Climate change We, at the Komatsu Group, work for sustainable society and earth environment through our global discussed below. 1) Climate change 3) Conservation of Air, water and other environments as well as management of chemical 1) Climate change 2) Establishment of a sound material-cycle society 3) Conservation of Air, water and other environments as well as management of chemical 2) Establishment of a sound material-cycle society business operations by addressing the following four environmental problems with the stances 2) Establishment of a sound material-cycle society 1) Climate change substances 2) Establishment of a sound material-cycle society 3) Conservation of Air, water and other environments as well as management of chemical substances 3) Conservation of Air, water and other environments as well as management of chemical discussed below. 3) Conservation of Air, water and other environments as well as management of chemical 2) Establishment of a sound material-cycle society 4) Biodiversity 3) Conservation of Air, water and other environments as well as management of chemical substances 4) Biodiversity substances substances 1) Climate change 3) Conservation of Air, water and other environments as well as management of chemical substances 4) Biodiversity 1. Basic Stances on Earth Environmental Problems Guidelines for Corporate Activity Guidelines for Corporate Activity Guidelines for Corporate Activity Guidelines for Corporate Activity Guidelines for Corporate Activity Guidelines for Corporate Activity Guidelines for Corporate Activity substances 4) Biodiversity 4) Biodiversity 2. Framework of Our Global, Group-wide Environmental Management System 2. Framework of Our Global, Group-wide Environmental Management System 2) Establishment of a sound material-cycle society 4) Biodiversity substances 4) Biodiversity 4) Biodiversity management systems. management systems. management systems. management systems. management systems. management systems. management systems. management systems. To reduce our group-wide environmental impact, the Komatsu Head Office as well as the 2. Framework of Our Global, Group-wide Environmental Management System To reduce our group-wide environmental impact, the Komatsu Head Office as well as the 2. Framework of Our Global, Group-wide Environmental Management System 3) Conservation of Air, water and other environments as well as management of chemical 2. Framework of Our Global, Group-wide Environmental Management System manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, 2. Framework of Our Global, Group-wide Environmental Management System To reduce our group-wide environmental impact, the Komatsu Head Office as well as the manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, To reduce our group-wide environmental impact, the Komatsu Head Office as well as the To reduce our group-wide environmental impact, the Komatsu Head Office as well as the 2. Framework of Our Global, Group-wide Environmental Management System To reduce our group-wide environmental impact, the Komatsu Head Office as well as the will continue working to maintain and improve their environmental management system, while manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, will continue working to maintain and improve their environmental management system, while manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, To reduce our group-wide environmental impact, the Komatsu Head Office as well as the other manufacturing facilities and suppliers will also work to establish their environmental manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, will continue working to maintain and improve their environmental management system, while other manufacturing facilities and suppliers will also work to establish their environmental will continue working to maintain and improve their environmental management system, while will continue working to maintain and improve their environmental management system, while manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, 2. Framework of Our Global, Group-wide Environmental Management System will continue working to maintain and improve their environmental management system, while other manufacturing facilities and suppliers will also work to establish their environmental other manufacturing facilities and suppliers will also work to establish their environmental other manufacturing facilities and suppliers will also work to establish their environmental To reduce our group-wide environmental impact, the Komatsu Head Office as well as the will continue working to maintain and improve their environmental management system, while other manufacturing facilities and suppliers will also work to establish their environmental The Komatsu Environmental Committee develops environmental action plans and common The Komatsu Environmental Committee develops environmental action plans and common manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, other manufacturing facilities and suppliers will also work to establish their environmental guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or The Komatsu Environmental Committee develops environmental action plans and common guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or The Komatsu Environmental Committee develops environmental action plans and common will continue working to maintain and improve their environmental management system, while The Komatsu Environmental Committee develops environmental action plans and common company sets up its own mid- to long-range targets, develops and implements specific action plans, The Komatsu Environmental Committee develops environmental action plans and common guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or company sets up its own mid- to long-range targets, develops and implements specific action plans, guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or other manufacturing facilities and suppliers will also work to establish their environmental reviews them regularly and works to continuously improve them. guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or The Komatsu Environmental Committee develops environmental action plans and common guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or company sets up its own mid- to long-range targets, develops and implements specific action plans, reviews them regularly and works to continuously improve them. company sets up its own mid- to long-range targets, develops and implements specific action plans, company sets up its own mid- to long-range targets, develops and implements specific action plans, guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or company sets up its own mid- to long-range targets, develops and implements specific action plans, reviews them regularly and works to continuously improve them. 3. Environmental Education and Communication reviews them regularly and works to continuously improve them. 3. Environmental Education and Communication reviews them regularly and works to continuously improve them. The Komatsu Environmental Committee develops environmental action plans and common company sets up its own mid- to long-range targets, develops and implements specific action plans, reviews them regularly and works to continuously improve them. We believe that it is important to enhance the environmental awareness of each and every We believe that it is important to enhance the environmental awareness of each and every 3. Environmental Education and Communication 3. Environmental Education and Communication guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or reviews them regularly and works to continuously improve them. 3. Environmental Education and Communication 3. Environmental Education and Communication employee and thereby actively promote such education programs for all employees. We believe that it is important to enhance the environmental awareness of each and every employee and thereby actively promote such education programs for all employees. We believe that it is important to enhance the environmental awareness of each and every company sets up its own mid- to long-range targets, develops and implements specific action plans, 3. Environmental Education and Communication 3. Environmental Education and Communication We believe that it is important to enhance the environmental awareness of each and every We believe that it is important to enhance the environmental awareness of each and every employee and thereby actively promote such education programs for all employees. We will gather environment-related information concerning not only our manufacturing facilities but employee and thereby actively promote such education programs for all employees. We will gather environment-related information concerning not only our manufacturing facilities but reviews them regularly and works to continuously improve them. employee and thereby actively promote such education programs for all employees. We believe that it is important to enhance the environmental awareness of each and every employee and thereby actively promote such education programs for all employees. also other related entities, such as major affiliated companies and suppliers, and strive to disclose We will gather environment-related information concerning not only our manufacturing facilities but also other related entities, such as major affiliated companies and suppliers, and strive to disclose We will gather environment-related information concerning not only our manufacturing facilities but employee and thereby actively promote such education programs for all employees. We will gather environment-related information concerning not only our manufacturing facilities but such information, thereby facilitating proactive communication with all our stakeholders, such as We will gather environment-related information concerning not only our manufacturing facilities but also other related entities, such as major affiliated companies and suppliers, and strive to disclose such information, thereby facilitating proactive communication with all our stakeholders, such as also other related entities, such as major affiliated companies and suppliers, and strive to disclose We believe that it is important to enhance the environmental awareness of each and every also other related entities, such as major affiliated companies and suppliers, and strive to disclose We will gather environment-related information concerning not only our manufacturing facilities but customers, employees, local communities and suppliers, and further expanding the content of also other related entities, such as major affiliated companies and suppliers, and strive to disclose such information, thereby facilitating proactive communication with all our stakeholders, such as customers, employees, local communities and suppliers, and further expanding the content of such information, thereby facilitating proactive communication with all our stakeholders, such as employee and thereby actively promote such education programs for all employees. such information, thereby facilitating proactive communication with all our stakeholders, such as also other related entities, such as major affiliated companies and suppliers, and strive to disclose such information, thereby facilitating proactive communication with all our stakeholders, such as customers, employees, local communities and suppliers, and further expanding the content of customers, employees, local communities and suppliers, and further expanding the content of customers, employees, local communities and suppliers, and further expanding the content of We will gather environment-related information concerning not only our manufacturing facilities but such information, thereby facilitating proactive communication with all our stakeholders, such as customers, employees, local communities and suppliers, and further expanding the content of environmental communication. environmental communication. environmental communication. environmental communication. also other related entities, such as major affiliated companies and suppliers, and strive to disclose customers, employees, local communities and suppliers, and further expanding the content of environmental communication. environmental communication. such information, thereby facilitating proactive communication with all our stakeholders, such as environmental communication. Topics: New assembly factory at the Awazu Plant Topics: New assembly factory at the Awazu Plant customers, employees, local communities and suppliers, and further expanding the content of environmental communication. Topics: New assembly factory at the Awazu Plant Topics: New assembly factory at the Awazu Plant Topics: New assembly factory at the Awazu Plant Topics: New assembly factory at the Awazu Plant We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage Topics: New assembly factory at the Awazu Plant of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning Topics: New assembly factory at the Awazu Plant and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning time, we have doubled productivity per shop floor space of the new assembly factory. and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same time, we have doubled productivity per shop floor space of the new assembly factory. and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same time, we have doubled productivity per shop floor space of the new assembly factory. time, we have doubled productivity per shop floor space of the new assembly factory. We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same time, we have doubled productivity per shop floor space of the new assembly factory. time, we have doubled productivity per shop floor space of the new assembly factory. of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning time, we have doubled productivity per shop floor space of the new assembly factory. and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same time, we have doubled productivity per shop floor space of the new assembly factory. New assembly factory New assembly factory New assembly factory New assembly factory New assembly factory Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga New assembly factory Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. New assembly factory New assembly factory Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Biomass power generation facility Biomass power generation facility Biomass power generation facility Biomass power generation facility Biomass power generation facility Biomass power generation facility Biomass power generation facility Biomass power generation facility Environmental Indexes Environmental Indexes Environmental Indexes Environmental Indexes Environmental Indexes Environmental Indexes 2 2 ■ Reducing CO Emissions in Manufacturing Operations ■ Reducing CO Emissions in Manufacturing Operations Environmental Indexes ■ Reducing CO Emissions in Manufacturing Operations ■ Reducing CO Emissions in Manufacturing Operations ■ Reducing CO Emissions in Manufacturing Operations ■ Reducing CO Emissions in Manufacturing Operations Environmental Indexes ■ Reducing CO Emissions in Manufacturing Operations 2 2 2 2 2 ■ Reducing CO Emissions in Manufacturing Operations 2 ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Water Used and Index Per Units of Manufacturing Value ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on in Japan (Reflects results of the reviews of the data on ■ Water Used and Index Per Units of Manufacturing Value KCX for the year of 2009 and earlier) ■ Water Used and Index Per Units of Manufacturing Value KCX for the year of 2009 and earlier) ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) in Japan (Reflects results of the reviews of the data on in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) ■ Water Used and Index Per Units of Manufacturing Value KCX for the year of 2009 and earlier) KCX for the year of 2009 and earlier) in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) INFORMATION INFORMATION INFORMATION Corporate Information Corporate Information INFORMATION INFORMATION INFORMATION Download PDF Corporate Information Download PDF Corporate Information INFORMATION Corporate Information Corporate Information Download PDF Site Map Site Map Download PDF Download PDF Corporate Information Download PDF Site Map Site Map Site Map INFORMATION Download PDF Site Map Site Map Corporate Information Download PDF Site Map For 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All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved To All Our Stakeholders Interview with the Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Environmental Conservation Efforts KOMATSU REPORT 2015 ESG Environmental Conservation Efforts Komatsu's Relationship with Nature KOMATSU REPORT 2015 Komatsu Earth Environment Charter KOMATSU REPORT 2015 ESG Environmental Conservation Efforts ESG Environmental Conservation Efforts Topics Komatsu's Relationship with Nature Komatsu Earth Environment Charter Komatsu's Relationship with Nature Topics Komatsu's Relationship with Nature In recognition of the fact that our business activities affect the environment on a regional and global level, Komatsu Earth Environment Charter Topics Komatsu's Relationship with Nature Komatsu's Relationship with Nature Komatsu Earth Environment Charter we, at Komatsu, have placed the focus on the following four key areas: Topics 1) Climate Change Komatsu's Relationship with Nature Komatsu's Relationship with Nature 2) Establishment of a Sound Material-Cycle Society In recognition of the fact that our business activities affect the environment on a regional and global level, we, at Komatsu, have placed the focus on the following four key areas: 3) Conservation of Air, Water and Other environments as well as Management of Chemical In recognition of the fact that our business activities affect the environment on a regional and global level, In recognition of the fact that our business activities affect the environment on a regional and global level, 1) Climate Change we, at Komatsu, have placed the focus on the following four key areas: we, at Komatsu, have placed the focus on the following four key areas: 2) Establishment of a Sound Material-Cycle Society Substances 4) Biodiversity 1) Climate Change 1) Climate Change 3) Conservation of Air, Water and Other environments as well as Management of Chemical In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global 2) Establishment of a Sound Material-Cycle Society 2) Establishment of a Sound Material-Cycle Society Substances initiatives across business areas guided by the fundamental principles of 3) Conservation of Air, Water and Other environments as well as Management of Chemical 3) Conservation of Air, Water and Other environments as well as Management of Chemical 4) Biodiversity 1) Contributions to Realization of Sustainable Society, In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global 2) Simultaneous Realization of Environmental and Economic Performance, and KOMATSU REPORT 2015 ESG Environmental Conservation Efforts Substances Substances 4) Biodiversity 4) Biodiversity initiatives across business areas guided by the fundamental principles of 3) Observance of Corporate Social Responsibility In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global 1) Contributions to Realization of Sustainable Society, initiatives across business areas guided by the fundamental principles of initiatives across business areas guided by the fundamental principles of 2) Simultaneous Realization of Environmental and Economic Performance, and Komatsu's Relationship with Nature Komatsu Earth Environment Charter Topics 1) Contributions to Realization of Sustainable Society, 3) Observance of Corporate Social Responsibility 1) Contributions to Realization of Sustainable Society, Komatsu Earth Environment Charter (June 2010 revision) 2) Simultaneous Realization of Environmental and Economic Performance, and 2) Simultaneous Realization of Environmental and Economic Performance, and Komatsu's Relationship with Nature 3) Observance of Corporate Social Responsibility 3) Observance of Corporate Social Responsibility Corporate Principles Komatsu Earth Environment Charter (June 2010 revision) In recognition of the fact that our business activities affect the environment on a regional and global level, 1. Contributions to Realization of Sustainable Society we, at Komatsu, have placed the focus on the following four key areas: Komatsu Earth Environment Charter (June 2010 revision) Komatsu Earth Environment Charter (June 2010 revision) Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of our planet earth to future generations in a sound and 2) Establishment of a Sound Material-Cycle Society Corporate Principles 1) Climate Change 3) Conservation of Air, Water and Other environments as well as Management of Chemical healthy condition. 1. Contributions to Realization of Sustainable Society Corporate Principles Substances Corporate Principles Mankind must not only promote the further growth of a rich and comfortable society but also pass We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority 4) Biodiversity 1. Contributions to Realization of Sustainable Society down this indispensable environment of our planet earth to future generations in a sound and management tasks, and endeavor to contribute to the sustainable growth of society by integrating 1. Contributions to Realization of Sustainable Society In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global Mankind must not only promote the further growth of a rich and comfortable society but also pass advanced technologies into environmental conservation efforts in all our business activities. This is Mankind must not only promote the further growth of a rich and comfortable society but also pass initiatives across business areas guided by the fundamental principles of healthy condition. down this indispensable environment of our planet earth to future generations in a sound and represented by our hybrid construction equipment which features a substantial reduction of CO We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority down this indispensable environment of our planet earth to future generations in a sound and 1) Contributions to Realization of Sustainable Society, 2 healthy condition. emissions while in operation and by our superior manufacturing. management tasks, and endeavor to contribute to the sustainable growth of society by integrating 2) Simultaneous Realization of Environmental and Economic Performance, and healthy condition. advanced technologies into environmental conservation efforts in all our business activities. This is We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority 2. Simultaneous Realization of Environmental and Economic Performance 3) Observance of Corporate Social Responsibility represented by our hybrid construction equipment which features a substantial reduction of CO management tasks, and endeavor to contribute to the sustainable growth of society by integrating management tasks, and endeavor to contribute to the sustainable growth of society by integrating We are committed to improving both environmental performance and economic efficiency, as a 2 emissions while in operation and by our superior manufacturing. advanced technologies into environmental conservation efforts in all our business activities. This is advanced technologies into environmental conservation efforts in all our business activities. This is group of companies working toward superior manufacturing for customer satisfaction. To this end, represented by our hybrid construction equipment which features a substantial reduction of CO Komatsu Earth Environment Charter (June 2010 revision) represented by our hybrid construction equipment which features a substantial reduction of CO we constantly take up the challenge of advancing technologies to develop creative products that 2. Simultaneous Realization of Environmental and Economic Performance emissions while in operation and by our superior manufacturing. emissions while in operation and by our superior manufacturing. improve both environmental performance throughout the product's life cycle and the product's We are committed to improving both environmental performance and economic efficiency, as a 2 2 Corporate Principles group of companies working toward superior manufacturing for customer satisfaction. To this end, 2. Simultaneous Realization of Environmental and Economic Performance economic performance at the same time. 2. Simultaneous Realization of Environmental and Economic Performance we constantly take up the challenge of advancing technologies to develop creative products that We are committed to improving both environmental performance and economic efficiency, as a We are committed to improving both environmental performance and economic efficiency, as a Mankind must not only promote the further growth of a rich and comfortable society but also pass 3. Observance of Corporate Social Responsibility 1. Contributions to Realization of Sustainable Society improve both environmental performance throughout the product's life cycle and the product's group of companies working toward superior manufacturing for customer satisfaction. To this end, group of companies working toward superior manufacturing for customer satisfaction. To this end, Each company of the Komatsu Group promotes environmental conservation by not only complying down this indispensable environment of our planet earth to future generations in a sound and economic performance at the same time. we constantly take up the challenge of advancing technologies to develop creative products that we constantly take up the challenge of advancing technologies to develop creative products that with the applicable laws and regulations of the concerned host community, region and country but healthy condition. improve both environmental performance throughout the product's life cycle and the product's improve both environmental performance throughout the product's life cycle and the product's also by establishing its voluntary standards which consider global and local environmental concerns. We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority 3. Observance of Corporate Social Responsibility economic performance at the same time. economic performance at the same time. Each company of the Group also strives to fulfill its corporate social responsibility by actively Each company of the Komatsu Group promotes environmental conservation by not only complying management tasks, and endeavor to contribute to the sustainable growth of society by integrating advanced technologies into environmental conservation efforts in all our business activities. This is participating in local environmental conservation programs and thereby promoting close-knit with the applicable laws and regulations of the concerned host community, region and country but 3. Observance of Corporate Social Responsibility represented by our hybrid construction equipment which features a substantial reduction of CO 3. Observance of Corporate Social Responsibility communication with local communities, while striving to become a company trusted by all Komatsu also by establishing its voluntary standards which consider global and local environmental concerns. Each company of the Komatsu Group promotes environmental conservation by not only complying Each company of the Komatsu Group promotes environmental conservation by not only complying emissions while in operation and by our superior manufacturing. 2 stakeholders. Each company of the Group also strives to fulfill its corporate social responsibility by actively with the applicable laws and regulations of the concerned host community, region and country but with the applicable laws and regulations of the concerned host community, region and country but 2. Simultaneous Realization of Environmental and Economic Performance participating in local environmental conservation programs and thereby promoting close-knit also by establishing its voluntary standards which consider global and local environmental concerns. We are committed to improving both environmental performance and economic efficiency, as a also by establishing its voluntary standards which consider global and local environmental concerns. Guidelines for Corporate Activity communication with local communities, while striving to become a company trusted by all Komatsu Each company of the Group also strives to fulfill its corporate social responsibility by actively group of companies working toward superior manufacturing for customer satisfaction. To this end, Each company of the Group also strives to fulfill its corporate social responsibility by actively we constantly take up the challenge of advancing technologies to develop creative products that participating in local environmental conservation programs and thereby promoting close-knit participating in local environmental conservation programs and thereby promoting close-knit improve both environmental performance throughout the product's life cycle and the product's 1. Basic Stances on Earth Environmental Problems stakeholders. communication with local communities, while striving to become a company trusted by all Komatsu communication with local communities, while striving to become a company trusted by all Komatsu We, at the Komatsu Group, work for sustainable society and earth environment through our global economic performance at the same time. Guidelines for Corporate Activity stakeholders. stakeholders. business operations by addressing the following four environmental problems with the stances 3. Observance of Corporate Social Responsibility discussed below. 1. Basic Stances on Earth Environmental Problems Each company of the Komatsu Group promotes environmental conservation by not only complying Guidelines for Corporate Activity Guidelines for Corporate Activity We, at the Komatsu Group, work for sustainable society and earth environment through our global also by establishing its voluntary standards which consider global and local environmental concerns. 1) Climate change with the applicable laws and regulations of the concerned host community, region and country but business operations by addressing the following four environmental problems with the stances Each company of the Group also strives to fulfill its corporate social responsibility by actively 1. Basic Stances on Earth Environmental Problems 2) Establishment of a sound material-cycle society 1. Basic Stances on Earth Environmental Problems discussed below. We, at the Komatsu Group, work for sustainable society and earth environment through our global participating in local environmental conservation programs and thereby promoting close-knit 3) Conservation of Air, water and other environments as well as management of chemical We, at the Komatsu Group, work for sustainable society and earth environment through our global business operations by addressing the following four environmental problems with the stances business operations by addressing the following four environmental problems with the stances communication with local communities, while striving to become a company trusted by all Komatsu 1) Climate change substances stakeholders. discussed below. 4) Biodiversity discussed below. 2) Establishment of a sound material-cycle society Guidelines for Corporate Activity 1. Basic Stances on Earth Environmental Problems SUSTAINABLE GROWTH WITH THE WORLD 2. Framework of Our Global, Group-wide Environmental Management System 3) Conservation of Air, water and other environments as well as management of chemical 1) Climate change Environmental Conservation Efforts KOMATSU REPORT 2015 1) Climate change substances 2) Establishment of a sound material-cycle society 2) Establishment of a sound material-cycle society To reduce our group-wide environmental impact, the Komatsu Head Office as well as the We, at the Komatsu Group, work for sustainable society and earth environment through our global 4) Biodiversity 3) Conservation of Air, water and other environments as well as management of chemical 3) Conservation of Air, water and other environments as well as management of chemical manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, business operations by addressing the following four environmental problems with the stances substances substances will continue working to maintain and improve their environmental management system, while 4) Biodiversity 4) Biodiversity other manufacturing facilities and suppliers will also work to establish their environmental To reduce our group-wide environmental impact, the Komatsu Head Office as well as the 2. Framework of Our Global, Group-wide Environmental Management System discussed below. 1) Climate change 26 substances 2) Establishment of a sound material-cycle society 2. Framework of Our Global, Group-wide Environmental Management System 2. Framework of Our Global, Group-wide Environmental Management System management systems. manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, 3) Conservation of Air, water and other environments as well as management of chemical will continue working to maintain and improve their environmental management system, while To reduce our group-wide environmental impact, the Komatsu Head Office as well as the The Komatsu Environmental Committee develops environmental action plans and common To reduce our group-wide environmental impact, the Komatsu Head Office as well as the other manufacturing facilities and suppliers will also work to establish their environmental manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, 4) Biodiversity management systems. will continue working to maintain and improve their environmental management system, while company sets up its own mid- to long-range targets, develops and implements specific action plans, will continue working to maintain and improve their environmental management system, while other manufacturing facilities and suppliers will also work to establish their environmental reviews them regularly and works to continuously improve them. other manufacturing facilities and suppliers will also work to establish their environmental The Komatsu Environmental Committee develops environmental action plans and common To reduce our group-wide environmental impact, the Komatsu Head Office as well as the management systems. manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, management systems. guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or 2. Framework of Our Global, Group-wide Environmental Management System 3. Environmental Education and Communication will continue working to maintain and improve their environmental management system, while management systems. 3. Environmental Education and Communication The Komatsu Environmental Committee develops environmental action plans and common company sets up its own mid- to long-range targets, develops and implements specific action plans, The Komatsu Environmental Committee develops environmental action plans and common The Komatsu Environmental Committee develops environmental action plans and common We believe that it is important to enhance the environmental awareness of each and every other manufacturing facilities and suppliers will also work to establish their environmental reviews them regularly and works to continuously improve them. guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or employee and thereby actively promote such education programs for all employees. company sets up its own mid- to long-range targets, develops and implements specific action plans, company sets up its own mid- to long-range targets, develops and implements specific action plans, We will gather environment-related information concerning not only our manufacturing facilities but reviews them regularly and works to continuously improve them. guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or reviews them regularly and works to continuously improve them. We believe that it is important to enhance the environmental awareness of each and every also other related entities, such as major affiliated companies and suppliers, and strive to disclose company sets up its own mid- to long-range targets, develops and implements specific action plans, employee and thereby actively promote such education programs for all employees. such information, thereby facilitating proactive communication with all our stakeholders, such as We believe that it is important to enhance the environmental awareness of each and every customers, employees, local communities and suppliers, and further expanding the content of We will gather environment-related information concerning not only our manufacturing facilities but We believe that it is important to enhance the environmental awareness of each and every employee and thereby actively promote such education programs for all employees. environmental communication. also other related entities, such as major affiliated companies and suppliers, and strive to disclose employee and thereby actively promote such education programs for all employees. We believe that it is important to enhance the environmental awareness of each and every 3. Environmental Education and Communication 3. Environmental Education and Communication reviews them regularly and works to continuously improve them. 3. Environmental Education and Communication employee and thereby actively promote such education programs for all employees. such information, thereby facilitating proactive communication with all our stakeholders, such as We will gather environment-related information concerning not only our manufacturing facilities but We will gather environment-related information concerning not only our manufacturing facilities but We will gather environment-related information concerning not only our manufacturing facilities but customers, employees, local communities and suppliers, and further expanding the content of also other related entities, such as major affiliated companies and suppliers, and strive to disclose also other related entities, such as major affiliated companies and suppliers, and strive to disclose also other related entities, such as major affiliated companies and suppliers, and strive to disclose environmental communication. such information, thereby facilitating proactive communication with all our stakeholders, such as such information, thereby facilitating proactive communication with all our stakeholders, such as such information, thereby facilitating proactive communication with all our stakeholders, such as customers, employees, local communities and suppliers, and further expanding the content of customers, employees, local communities and suppliers, and further expanding the content of customers, employees, local communities and suppliers, and further expanding the content of environmental communication. environmental communication. Topics: New assembly factory at the Awazu Plant environmental communication. We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage Topics: New assembly factory at the Awazu Plant of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning Topics: New assembly factory at the Awazu Plant Topics: New assembly factory at the Awazu Plant Topics: New assembly factory at the Awazu Plant and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage time, we have doubled productivity per shop floor space of the new assembly factory. We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning time, we have doubled productivity per shop floor space of the new assembly factory. of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same time, we have doubled productivity per shop floor space of the new assembly factory. time, we have doubled productivity per shop floor space of the new assembly factory. time, we have doubled productivity per shop floor space of the new assembly factory. Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga New assembly factory New assembly factory New assembly factory expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. New assembly factory New assembly factory Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. Biomass power generation facility Environmental Indexes ■ Reducing CO Emissions in Manufacturing Operations 2 Biomass power generation facility Environmental Indexes Biomass power generation facility ■ Reducing CO Emissions in Manufacturing Operations Environmental Indexes 2 Biomass power generation facility Biomass power generation facility Environmental Indexes Environmental Indexes ■ Reducing CO Emissions in Manufacturing Operations 2 ■ Reducing CO Emissions in Manufacturing Operations ■ Reducing CO Emissions in Manufacturing Operations 2 2 ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Amount of Waste Generated ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Electric Power Consumption ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) ■ Water Used and Index Per Units of Manufacturing Value ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on in Japan (Reflects results of the reviews of the data on INFORMATION KCX for the year of 2009 and earlier) KCX for the year of 2009 and earlier) For further details, please click here Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report STRATEGIES ESG Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Copyright © 2015 Komatsu Ltd. All rights reserved on Innovation Risk Management Corporate Information Download PDF INFORMATION Site Map Corporate Information INFORMATION Download PDF INFORMATION Site Map Corporate Information Corporate Information Download PDF Download PDF Site Map Site Map Financial conditions: Securities Report For further details, please click here Social activities: CSR report Financial conditions: Securities Report For further details, please click here For further details, please click here Environmental performance: Environmental Report Financial conditions: Social activities: Financial conditions: Securities Report CSR report Securities Report Social activities: Environmental performance: Social activities: CSR report Environmental Report CSR report Environmental performance: Environmental performance: Environmental Report Environmental Report ESG Environmental Conservation Efforts Corporate Governance Corporate Social Risk Management Responsibility Efforts ESG ESG Environmental Corporate Governance Corporate Governance FY2014 PERFORMANCE Conservation Efforts Risk Management Risk Management Corporate Social Consolidated Results / Environmental Responsibility Efforts Environmental Five-Year Summary Conservation Efforts Conservation Efforts Construction, Mining and Corporate Social FY2014 PERFORMANCE Corporate Social Utility Equipment Responsibility Efforts Responsibility Efforts Consolidated Results / Industrial Machinery and Others Five-Year Summary FY2014 PERFORMANCE FY2014 PERFORMANCE Construction, Mining and Consolidated Results / Utility Equipment Consolidated Results / Five-Year Summary Five-Year Summary Industrial Machinery and Construction, Mining and Construction, Mining and Others Utility Equipment Utility Equipment Industrial Machinery and Industrial Machinery and Others Others Introduction to STRATEGIES SMARTCONSTRUCTION Growth Strategies Based SMARTCONSTRUCTION on Innovation STRATEGIES STRATEGIES Introduction to Jobsite Report 1: Young Growth Strategies Based SMARTCONSTRUCTION Growth Strategies Based workers being responsible on Innovation on Innovation for ICT-intensive Introduction to SMARTCONSTRUCTION construction Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 2: Together Jobsite Report 1: Young with veteran operators workers being responsible SMARTCONSTRUCTION SMARTCONSTRUCTION for ICT-intensive Jobsite Report 3: Looking construction forward to the future of Jobsite Report 1: Young Jobsite Report 1: Young intelligent Machine Control workers being responsible Jobsite Report 2: Together workers being responsible equipment for ICT-intensive with veteran operators for ICT-intensive construction construction Jobsite Report 3: Looking MANAGEMENT Jobsite Report 2: Together forward to the future of Jobsite Report 2: Together with veteran operators intelligent Machine Control with veteran operators To All Our Stakeholders equipment Jobsite Report 3: Looking Jobsite Report 3: Looking Interview with the forward to the future of forward to the future of President MANAGEMENT intelligent Machine Control intelligent Machine Control equipment equipment To All Our Stakeholders To All Our Stakeholders To All Our Stakeholders Interview with the Interview with the President President MANAGEMENT Interview with the MANAGEMENT Copyright © 2015 Komatsu Ltd. All rights reserved President Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Environmental Conservation Efforts Komatsu's Relationship with Nature Komatsu Earth Environment Charter Topics Komatsu's Relationship with Nature In recognition of the fact that our business activities affect the environment on a regional and global level, we, at Komatsu, have placed the focus on the following four key areas: 1) Climate Change 2) Establishment of a Sound Material-Cycle Society 3) Conservation of Air, Water and Other environments as well as Management of Chemical Substances 4) Biodiversity In line with the Komatsu Earth Environment Charter revised in 2010, the Komatsu Group embarks on global initiatives across business areas guided by the fundamental principles of 1) Contributions to Realization of Sustainable Society, 2) Simultaneous Realization of Environmental and Economic Performance, and 3) Observance of Corporate Social Responsibility Komatsu Earth Environment Charter (June 2010 revision) Corporate Principles 1. Contributions to Realization of Sustainable Society Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of our planet earth to future generations in a sound and healthy condition. We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority management tasks, and endeavor to contribute to the sustainable growth of society by integrating advanced technologies into environmental conservation efforts in all our business activities. This is represented by our hybrid construction equipment which features a substantial reduction of CO 2 emissions while in operation and by our superior manufacturing. 2. Simultaneous Realization of Environmental and Economic Performance We are committed to improving both environmental performance and economic efficiency, as a group of companies working toward superior manufacturing for customer satisfaction. To this end, we constantly take up the challenge of advancing technologies to develop creative products that improve both environmental performance throughout the product's life cycle and the product's economic performance at the same time. 3. Observance of Corporate Social Responsibility Each company of the Komatsu Group promotes environmental conservation by not only complying with the applicable laws and regulations of the concerned host community, region and country but also by establishing its voluntary standards which consider global and local environmental concerns. Each company of the Group also strives to fulfill its corporate social responsibility by actively participating in local environmental conservation programs and thereby promoting close-knit communication with local communities, while striving to become a company trusted by all Komatsu stakeholders. Guidelines for Corporate Activity discussed below. 1) Climate change substances 4) Biodiversity 1. Basic Stances on Earth Environmental Problems We, at the Komatsu Group, work for sustainable society and earth environment through our global business operations by addressing the following four environmental problems with the stances 2) Establishment of a sound material-cycle society 3) Conservation of Air, water and other environments as well as management of chemical 2. Framework of Our Global, Group-wide Environmental Management System To reduce our group-wide environmental impact, the Komatsu Head Office as well as the manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, will continue working to maintain and improve their environmental management system, while other manufacturing facilities and suppliers will also work to establish their environmental management systems. The Komatsu Environmental Committee develops environmental action plans and common guidelines for the Komatsu Group. Based on these group-wide plans and guidelines, each division or company sets up its own mid- to long-range targets, develops and implements specific action plans, reviews them regularly and works to continuously improve them. 3. Environmental Education and Communication We believe that it is important to enhance the environmental awareness of each and every employee and thereby actively promote such education programs for all employees. We will gather environment-related information concerning not only our manufacturing facilities but also other related entities, such as major affiliated companies and suppliers, and strive to disclose such information, thereby facilitating proactive communication with all our stakeholders, such as customers, employees, local communities and suppliers, and further expanding the content of environmental communication. Topics: New assembly factory at the Awazu Plant We plan to reduce annual purchase electricity for a new assembly factory by about 90% by taking advantage of reduced shop floor space as a result of consolidating two old factories, saving energy for air conditioning and lighting, and creating energy with a biomass-fired steam boiler system and solar panels. At the same time, we have doubled productivity per shop floor space of the new assembly factory. New assembly factory Concerning biomass power generation, we are using wood chips (7,000 tons per year), supplied by the Kaga Forestry Association, to operate boilers to make steam, which is used for a compressor and generators. Waste heat of the steam is utilized by an absorption-type refrigerating machine. All together, we are expecting to save about 1,400MWh of electricity and about 800K liters of fuel oil annually. KOMATSU REPORT 2015 Environmental Conservation Efforts 27 SUSTAINABLE GROWTH WITH THE WORLD Biomass power generation facility Environmental Indexes ■ Reducing CO Emissions in Manufacturing Operations 2 ■ Amount of Waste Generated ■ Electric Power Consumption ■ Water Used and Index Per Units of Manufacturing Value in Japan (Reflects results of the reviews of the data on KCX for the year of 2009 and earlier) STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Corporate Social Responsibility Efforts KOMATSU REPORT 2015 Corporate Social Responsibility Efforts 28 SUSTAINABLE GROWTH WITH THE WORLD Basic Stance on Social Contribution Activities Corporate Social Responsibility Efforts Social Contribution Activities Engaged in FY2014 (on a consolidated basis) Topics Social Contribution Activities We acknowledge that a company, as a good corporate citizen, should live up to the expectations of the society, not only by conducting its business properly, but also by promoting harmonious relations with, and contributing to the benefit of, the community in which it operates. Accordingly, we are making efforts which are uniquely associated with Komatsu, as we turn our attention to local community issues and think how we can utilize our corporate strengths. Basic Stance on Social Contribution Activities Objective Komatsu Group and all its employees shall recognize their social roles as members of local communities and work to contribute to society. Five social contribution principles Social contribution activities should: have continuity; have public interest; be chosen voluntarily; be acceptable to employees: and not be designed to advertise our products or services. Social Contribution Activities Engaged in FY2014 (on a consolidated basis) We have engaged in social contribution activities in the following six areas. Topics: Assistance to Training of Construction Equipment Operators in Liberia The Republic of Liberia in west Africa is attracting keen attention for its economic development. It is an urgent task of the Liberian government to train construction equipment operators in order to develop the infrastructure needed for economic development. Prior to the tragic spread of Ebola, a training center for construction equipment operators opened in June 2014, as a joint project by the Japanese government and the United Nations Industrial Development Organization (UNIDO). Komatsu has been supporting this center. In May, four instructors came to Japan and learned the basics of operating and repairing construction equipment at Komatsu. After returning to their country, they assisted the construction of sanitation facilities by demonstrating their skills in the capital city of Monrovia until the Ebola epidemic began to weaken. Even during this waiting period, Komatsu continued to offer assistance, such as responding to their technical questions through email. In April 2015, the center received the first unit of construction equipment donated by Komatsu. Komatsu will continue its assistance efforts, such as the provision of training programs, in collaboration with its local distributor, until the full-scale operation of this training center iss achieved. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 ESG Corporate Social Responsibility Efforts Basic Stance on Social Contribution Activities Social Contribution Activities Engaged in FY2014 (on a consolidated basis) Topics Social Contribution Activities We acknowledge that a company, as a good corporate citizen, should live up to the expectations of the society, not only by conducting its business properly, but also by promoting harmonious relations with, and contributing to the benefit of, the community in which it operates. Accordingly, we are making efforts which are uniquely associated with Komatsu, as we turn our attention to local community issues and think how we can utilize our corporate strengths. Basic Stance on Social Contribution Activities Komatsu Group and all its employees shall recognize their social roles as members of local communities and Objective work to contribute to society. Five social contribution principles Social contribution activities should: have continuity; have public interest; be chosen voluntarily; be acceptable to employees: and not be designed to advertise our products or services. Social Contribution Activities Engaged in FY2014 (on a consolidated basis) We have engaged in social contribution activities in the following six areas. KOMATSU REPORT 2015 Corporate Social Responsibility Efforts 29 SUSTAINABLE GROWTH WITH THE WORLD Topics: Assistance to Training of Construction Equipment Operators in Liberia The Republic of Liberia in west Africa is attracting keen attention for its economic development. It is an urgent task of the Liberian government to train construction equipment operators in order to develop the infrastructure needed for economic development. Prior to the tragic spread of Ebola, a training center for construction equipment operators opened in June 2014, as a joint project by the Japanese government and the United Nations Industrial Development Organization (UNIDO). Komatsu has been supporting this center. In May, four instructors came to Japan and learned the basics of operating and repairing construction equipment at Komatsu. After returning to their country, they assisted the construction of sanitation facilities by demonstrating their skills in the capital city of Monrovia until the Ebola epidemic began to weaken. Even during this waiting period, Komatsu continued to offer assistance, such as responding to their technical questions through email. In April 2015, the center received the first unit of construction equipment donated by Komatsu. Komatsu will continue its assistance efforts, such as the provision of training programs, in collaboration with its local distributor, until the full-scale operation of this training center iss achieved. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Performance in FY2014 Consolidated Results / Five-Year Summary Consolidated Results / Five-Year Summary 30 KOMATSU REPORT 2015 FY2014 PERFORMANCE Consolidated Results Consolidated Results / Five-Year Summary Five-Year Summary Consolidated Results Net Sales Operating Income and Ratio Net income attributable to Komatsu Ltd. and ROE Shareholders' Equity, Net Interest-Bearing Debt and Net Debt-to-Equity Ratio * Cash Dividend Note: All projected figures for FY2015 reflect those announced on April 27, 2015. Five-Year Summary Komatsu Ltd. and Consolidated Subsidiaries Millions of yen (except per share amounts) FY2014 FY2013 FY2012 FY2011 FY2010 For the fiscal period Net sales Cost of sales Operating income Operating income ratio Capital investment At fiscal period-end Total assets Working capital ¥1,978,676 ¥1,953,657 ¥1,884,991 ¥1,981,763 ¥1,843,127 1,401,193 1,393,048 1,377,459 1,440,765 1,343,464 242,062 240,495 211,602 256,343 222,929 12.2% 12.3% 11.2% 12.9% 12.1% Income before income taxes and equity in 236,074 242,056 204,603 249,609 219,809 earnings of affiliated companies Net income attributable to Komatsu Ltd. 154,009 159,518 126,321 167,041 150,752 192,724 179,070 136,962 122,038 97,738 ¥2,798,407 ¥2,651,556 ¥2,517,857 ¥2,320,529 ¥2,149,137 716,524 701,201 664,480 536,662 444,384 Property, plant and equipment 743,919 667,347 585,220 529,656 508,387 Long-term debt-less current maturities 279,270 311,067 343,814 312,519 291,152 Komatsu Ltd. shareholders' equity 1,528,966 1,376,391 1,193,194 1,009,696 923,843 As percentage of total assets 54.6% 51.9% 47.4% 43.5% 43.0% Per share data Net income attributable to Komatsu Ltd. per share: Basic ¥ 162.07 ¥ 167.36 ¥ 132.64 ¥ 173.47 ¥ 155.77 : Diluted 161.86 167.18 132.51 173.32 155.66 Cash dividends per share * 58.00 53.00 45.00 41.00 26.00 Komatsu Ltd. shareholders' equity per share 1,622.48 1,443.97 1,252.33 1,060.31 954.48 *Cash dividends per share provided above are based on dividends paid each fiscal year. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Performance in FY2014 Consolidated Results / Five-Year Summary Consolidated Results Five-Year Summary Consolidated Results Net Sales Operating Income and Ratio Net income attributable to Komatsu Ltd. and Shareholders' Equity, Net Interest-Bearing Debt * ROE and Net Debt-to-Equity Ratio Cash Dividend KOMATSU REPORT 2015 FY2014 PERFORMANCE Five-Year Summary Note: All projected figures for FY2015 reflect those announced on April 27, 2015. Consolidated Results / Five-Year Summary 31 Komatsu Ltd. and Consolidated Subsidiaries Millions of yen (except per share amounts) FY2014 FY2013 FY2012 FY2011 FY2010 For the fiscal period Net sales Cost of sales Operating income Operating income ratio Income before income taxes and equity in earnings of affiliated companies ¥1,978,676 ¥1,953,657 ¥1,884,991 ¥1,981,763 ¥1,843,127 1,401,193 1,393,048 1,377,459 1,440,765 1,343,464 242,062 240,495 211,602 256,343 222,929 12.2% 12.3% 11.2% 12.9% 12.1% 236,074 242,056 204,603 249,609 219,809 Net income attributable to Komatsu Ltd. 154,009 159,518 126,321 167,041 150,752 Capital investment At fiscal period-end Total assets Working capital 192,724 179,070 136,962 122,038 97,738 ¥2,798,407 ¥2,651,556 ¥2,517,857 ¥2,320,529 ¥2,149,137 716,524 701,201 664,480 536,662 444,384 Property, plant and equipment 743,919 667,347 585,220 529,656 508,387 Long-term debt-less current maturities 279,270 311,067 343,814 312,519 291,152 Komatsu Ltd. shareholders' equity 1,528,966 1,376,391 1,193,194 1,009,696 923,843 As percentage of total assets 54.6% 51.9% 47.4% 43.5% 43.0% Per share data Net income attributable to Komatsu Ltd. per share: Basic ¥ 162.07 ¥ 167.36 ¥ 132.64 ¥ 173.47 ¥ 155.77 : Diluted 161.86 167.18 132.51 173.32 155.66 * Cash dividends per share 58.00 53.00 45.00 41.00 26.00 Komatsu Ltd. shareholders' equity per share 1,622.48 1,443.97 1,252.33 1,060.31 954.48 *Cash dividends per share provided above are based on dividends paid each fiscal year. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 Performance in FY2014 Construction, Mining and Utility Equipment Construction, Mining and Utility Equipment 32 FY2014 PERFORMANCE Construction, Mining and Utility Equipment Sales of the construction, mining and utility equipment business amounted to JPY1,763.4 billion, up 0.6% from the previous fiscal year. Segment profit declined by 6.1% to JPY227.2 billion. Komatsu enjoyed great customer evaluations for and steadfastly increased shipment of intelligent Machine Control dozers and hydraulic excavators in Japan, North America and Europe, which it has launched as next- generation products to drive its growth strategies based on innovation. Starting in Japan in February 2015, Komatsu embarked on “SMARTCONSTRUCTION”, a new solution business by connecting all information of construction jobsites through ICT (information and communication technology) in order to help customers realize safe and high-productivity jobsites of the future. With respect to products designed to comply with new emission standards (such as Tier 4 Final in the United States), which have been introduced steadily in North America, Europe and Japan since the start of 2014, Komatsu has developed a total of 18 models and worked to expand their sales. At its production plants in Japan, Komatsu has been making efforts to cut down their electric power consumption to half. In May 2014, Komatsu opened a new assembly factory at the Awazu Plant in Ishikawa Prefecture, Japan. The new factory features an outstanding efficiency of manufacturing, and Komatsu expects to reduce purchase power volume by over 90% for this factory. While demand declined for new construction and mining equipment, Komatsu made record-high sales of parts by steadfastly capturing aftermarket demand. Sales Segment Profit and Ratio Sales by Region for the Fiscal Year ended March 31, 2015 (To Outside Customers) Traditional Markets Japan Strategic Markets Latin America While steadily capturing demand in construction Demand for construction equipment declined, while investment and reconstruction in the regions which slack demand for mining equipment prolonged. Sales were destroyed by the Great East Japan Earthquake, decreased from the previous fiscal year. Komatsu faced adverse effects of demand for construction equipment having run its course in rental companies. As a result, sales declined from the previous fiscal year. North America Demand for equipment remained slack in the mining industry and the energy sector, which was adversely affected by the plunge of crude prices. Demand for construction equipment advanced in the residential construction and infrastructure development sectors, including highway construction. As a result, sales increased from the previous fiscal year. Europe Sales increased from the previous fiscal year, reflecting an increase of demand in the United Kingdom, a major market. Sales declined, as affected by the drastic depreciation and discount rate hike of the Russian ruble as well as prolonging sluggish demand for equipment in gold mines and the energy sector. While having continued to stimulus measures, such as eased regulations on housing loans and decreased interest rate, the Chinese government has announced a shift of its economic policy from rapid economic expansion to a “new normal” of slower but more sustainable economic growth. Sales declined drastically from the previous fiscal year, particularly against the backdrop of a sharp drop of demand after Chinese New Year in February 2015. While demand remained sluggish, including Indonesia, the largest market of the region, and Thailand, Komatsu captured expanding demand in the Philippines, India and some other countries. As a result, sales in Asia improved from the previous fiscal CIS China Asia year. Oceania Sales declined, as demand for mining equipment remained sluggish in mines. Middle East Demand in Turkey, the major market of the region, was slack. While crude prices dropped sharply, demand in other areas advanced steadily, centering on some Gulf nations, such as Saudi Arabia, Qatar and United Arab Emirates. Sales increased from the previous fiscal year. Africa Sales improved from the previous fiscal year, mainly supported by the steady progress on the delivery of mining equipment in South Africa. STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Performance in FY2014 Construction, Mining and Utility Equipment Sales of the construction, mining and utility equipment business amounted to JPY1,763.4 billion, up 0.6% from the previous fiscal year. Segment profit declined by 6.1% to JPY227.2 billion. Komatsu enjoyed great customer evaluations for and steadfastly increased shipment of intelligent Machine Control dozers and hydraulic excavators in Japan, North America and Europe, which it has launched as next- generation products to drive its growth strategies based on innovation. Starting in Japan in February 2015, Komatsu embarked on “SMARTCONSTRUCTION”, a new solution business by connecting all information of construction jobsites through ICT (information and communication technology) in order to help customers realize safe and high-productivity jobsites of the future. With respect to products designed to comply with new emission standards (such as Tier 4 Final in the United States), which have been introduced steadily in North America, Europe and Japan since the start of 2014, Komatsu has developed a total of 18 models and worked to expand their sales. At its production plants in Japan, Komatsu has been making efforts to cut down their electric power consumption to half. In May 2014, Komatsu opened a new assembly factory at the Awazu Plant in Ishikawa Prefecture, Japan. The new factory features an outstanding efficiency of manufacturing, and Komatsu expects to reduce purchase power volume by over 90% for this factory. While demand declined for new construction and mining equipment, Komatsu made record-high sales of parts by steadfastly capturing aftermarket demand. Sales Segment Profit and Ratio Sales by Region for the Fiscal Year ended March 31, 2015 (To Outside Customers) KOMATSU REPORT 2015 FY2014 PERFORMANCE Construction, Mining and Utility Equipment 33 Traditional Markets Japan Strategic Markets Latin America While steadily capturing demand in construction investment and reconstruction in the regions which were destroyed by the Great East Japan Earthquake, Komatsu faced adverse effects of demand for construction equipment having run its course in rental companies. As a result, sales declined from the previous fiscal year. North America Demand for equipment remained slack in the mining industry and the energy sector, which was adversely affected by the plunge of crude prices. Demand for construction equipment advanced in the residential construction and infrastructure development sectors, including highway construction. As a result, sales increased from the previous fiscal year. Europe Sales increased from the previous fiscal year, reflecting an increase of demand in the United Kingdom, a major market. Demand for construction equipment declined, while slack demand for mining equipment prolonged. Sales decreased from the previous fiscal year. CIS Sales declined, as affected by the drastic depreciation and discount rate hike of the Russian ruble as well as prolonging sluggish demand for equipment in gold mines and the energy sector. China While having continued to stimulus measures, such as eased regulations on housing loans and decreased interest rate, the Chinese government has announced a shift of its economic policy from rapid economic expansion to a “new normal” of slower but more sustainable economic growth. Sales declined drastically from the previous fiscal year, particularly against the backdrop of a sharp drop of demand after Chinese New Year in February 2015. Asia While demand remained sluggish, including Indonesia, the largest market of the region, and Thailand, Komatsu captured expanding demand in the Philippines, India and some other countries. As a result, sales in Asia improved from the previous fiscal year. Oceania Sales declined, as demand for mining equipment remained sluggish in mines. Middle East Demand in Turkey, the major market of the region, was slack. While crude prices dropped sharply, demand in other areas advanced steadily, centering on some Gulf nations, such as Saudi Arabia, Qatar and United Arab Emirates. Sales increased from the previous fiscal year. Africa Sales improved from the previous fiscal year, mainly supported by the steady progress on the delivery of mining equipment in South Africa. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 KOMATSU REPORT 2015 Performance in FY2014 Industrial Machinery and Others Industrial Machinery and Others 34 FY2014 PERFORMANCE Industrial Machinery and Others Sales Segment Profit and Ratio Sales of presses and other forging machines remained steady, supported by capital investment mainly in the automobile manufacturing industry. In addition, GIGAPHOTON INC. expanded sales supported by high-rate machine utilization of the semiconductor manufacturing industry. Sales of the industrial machinery and others business totaled JPY221.5 billion, up 5.9% from the previous fiscal year. Segment profit reached JPY16.2 billion, an increase of JPY14.2 billion, mainly because the loss of wire saw inventories in the amount of JPY10.8 billion was realized for the previous fiscal year. During the fiscal year, Komatsu launched a new model of the small AC Servo press series and the fiber laser cutting machine, both of which achieve high productivity and an outstanding reduction of running costs. Komatsu worked to expand their sales. STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Information Corporate Information KOMATSU REPORT 2015 INFORMATION Outline Shareholder Information Corporate Information (As of March 31, 2015) Major Shareholders Breakdown of Shareholders Corporate Information 35 Stock Prices on the Tokyo Stock Exchange Outline Name Head Office Komatsu Ltd. 2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan Date of Establishment May 13, 1921 Common Stock Outstanding Consolidated: ¥67,870 million based on U.S. GAAP Non-consolidated: ¥70,120 million Number of Employees subsidiaries) Non-consolidated: 10,416 Consolidated: 47,417 (Komatsu Ltd. and 138 consolidated Shareholder Information Shares of Common Stock Issued and Outstanding 942,926,902 shares (excluding 29,040,758 shares of treasury stock) Number of Shareholders 201,188 Number of Shares per Trading Unit 100 Securities Code 6301 (Japan) Stock Listings Tokyo Transfer Agent for Common Stock/Management Institution for Special Account Mitsubishi UFJ Trust and Banking Corporation 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan The Bank of New York Mellon 101 Barclay Street, New York, NY 10286, U.S.A. Tel: +1-(201)-680-6825 U.S. Callers: 888-269-2377 (888-BNY- ADRS) URL: http://www.adrbnymellon.com Ticker Symbol: KMTUY Depositaries (ADRs) Major Shareholders N a m e o f S h a r e h o l d e r s Japan Trustee Services Bank, Ltd. (Trust Account) The Master Trust Bank of Japan, Ltd. (Trust Account) Taiyo Life Insurance Company Nippon Life Insurance Company State Street Bank and Trust Company 505001 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) Sumitomo Mitsui Banking Corporation N u m b e r o f S h a r e s H e l d ( t h o u s a n d s h a r e s ) S h a r e h o l d i n g R a t i o ( % ) 36,727 36,615 34,000 26,626 25,796 17,835 16,055 12,150 11,705 3.89 3.88 3.60 2.82 2.73 1.89 1.83 1.70 1.28 1.24 The Bank of New York Mellon as Depositary Bank for Depositary Receipt Holders (standing proxy: Sumitomo Mitsui Banking 17,322 Corporation) The Bank of New York Mellon SA/NV 10 (standing proxy: The Bank of Tokyo-Mitsubishi UFJ, Ltd.) State Street Bank West Client – Treaty 505234 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) State Street Bank and Trust Company 505225 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) Notes: 1) Shareholding ratio is calculated by subtracting treasury stock. 2) Although Komatsu Ltd. holds 29,040 thousand shares of treasury stock, it is excluded from the major shareholders listed above. Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange STRATEGIES ESG INFORMATION For further details, please click here Growth Strategies Based Corporate Governance Corporate Information Risk Management Download PDF Site Map Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Information Corporate Information KOMATSU REPORT 2015 Information Corporate Information KOMATSU REPORT 2015 Information Corporate Information Outline Shareholder Information Major Shareholders Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange Outline Shareholder Information Major Shareholders Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange Shareholder Information Major Shareholders Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange Number of Employees subsidiaries) Komatsu Ltd. Komatsu Ltd. 2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan Komatsu Ltd. 2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan May 13, 1921 2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan May 13, 1921 Consolidated: ¥67,870 million based on U.S. GAAP May 13, 1921 Non-consolidated: ¥70,120 million Consolidated: ¥67,870 million based on U.S. GAAP Consolidated: ¥67,870 million based on U.S. GAAP Non-consolidated: ¥70,120 million Consolidated: 47,417 (Komatsu Ltd. and 138 consolidated Non-consolidated: ¥70,120 million Consolidated: 47,417 (Komatsu Ltd. and 138 consolidated Non-consolidated: 10,416 Consolidated: 47,417 (Komatsu Ltd. and 138 consolidated subsidiaries) subsidiaries) Non-consolidated: 10,416 Non-consolidated: 10,416 942,926,902 shares (excluding 29,040,758 shares of treasury stock) 942,926,902 shares (excluding 29,040,758 shares of treasury stock) 942,926,902 shares (excluding 29,040,758 shares of treasury stock) 201,188 201,188 100 201,188 100 6301 (Japan) 100 6301 (Japan) Tokyo 6301 (Japan) Tokyo Tokyo Mitsubishi UFJ Trust and Banking Corporation 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan Mitsubishi UFJ Trust and Banking Corporation Mitsubishi UFJ Trust and Banking Corporation 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan The Bank of New York Mellon 101 Barclay Street, New York, NY 10286, U.S.A. The Bank of New York Mellon Tel: +1-(201)-680-6825 U.S. Callers: 888-269-2377 (888-BNY- The Bank of New York Mellon 101 Barclay Street, New York, NY 10286, U.S.A. ADRS) 101 Barclay Street, New York, NY 10286, U.S.A. Tel: +1-(201)-680-6825 U.S. Callers: 888-269-2377 (888-BNY- URL: http://www.adrbnymellon.com Tel: +1-(201)-680-6825 U.S. Callers: 888-269-2377 (888-BNY- ADRS) Ticker Symbol: KMTUY ADRS) URL: http://www.adrbnymellon.com URL: http://www.adrbnymellon.com Ticker Symbol: KMTUY Ticker Symbol: KMTUY Corporate Information 36 Outline Outline Outline Outline Name Name Head Office Name Head Office Date of Establishment Head Office Date of Establishment Date of Establishment Common Stock Outstanding Common Stock Outstanding Common Stock Outstanding Number of Employees Number of Employees Shareholder Information Shareholder Information Shareholder Information Shares of Common Stock Issued and Outstanding Shares of Common Stock Issued and Shares of Common Stock Issued and Outstanding Number of Shareholders Outstanding Number of Shareholders Number of Shares per Trading Unit Number of Shareholders Number of Shares per Trading Unit Securities Code Number of Shares per Trading Unit Securities Code Stock Listings Securities Code Stock Listings Transfer Agent for Common Stock Listings Stock/Management Institution for Special Transfer Agent for Common Transfer Agent for Common Stock/Management Institution for Special Stock/Management Institution for Special Account Account Account Depositaries (ADRs) Depositaries (ADRs) Depositaries (ADRs) KOMATSU REPORT 2015 INFORMATION Major Shareholders Major Shareholders Major Shareholders N a m e o f S h a r e h o l d e r s N a m e o f S h a r e h o l d e r s N a m e o f S h a r e h o l d e r s Japan Trustee Services Bank, Ltd. (Trust Account) Japan Trustee Services Bank, Ltd. (Trust Account) The Master Trust Bank of Japan, Ltd. (Trust Account) Japan Trustee Services Bank, Ltd. (Trust Account) The Master Trust Bank of Japan, Ltd. (Trust Account) Taiyo Life Insurance Company The Master Trust Bank of Japan, Ltd. (Trust Account) Taiyo Life Insurance Company Nippon Life Insurance Company Taiyo Life Insurance Company Nippon Life Insurance Company State Street Bank and Trust Company 505001 (standing proxy: Nippon Life Insurance Company Mizuho Bank, Ltd., Settlement & Clearing Services Division) State Street Bank and Trust Company 505001 (standing proxy: State Street Bank and Trust Company 505001 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) Sumitomo Mitsui Banking Corporation Mizuho Bank, Ltd., Settlement & Clearing Services Division) Sumitomo Mitsui Banking Corporation The Bank of New York Mellon as Depositary Bank for Depositary Sumitomo Mitsui Banking Corporation Receipt Holders (standing proxy: Sumitomo Mitsui Banking The Bank of New York Mellon as Depositary Bank for Depositary Corporation) The Bank of New York Mellon as Depositary Bank for Depositary Receipt Holders (standing proxy: Sumitomo Mitsui Banking Receipt Holders (standing proxy: Sumitomo Mitsui Banking Corporation) The Bank of New York Mellon SA/NV 10 (standing proxy: The Corporation) Bank of Tokyo-Mitsubishi UFJ, Ltd.) The Bank of New York Mellon SA/NV 10 (standing proxy: The The Bank of New York Mellon SA/NV 10 (standing proxy: The Bank of Tokyo-Mitsubishi UFJ, Ltd.) State Street Bank West Client – Treaty 505234 (standing proxy: Bank of Tokyo-Mitsubishi UFJ, Ltd.) Mizuho Bank, Ltd., Settlement & Clearing Services Division) State Street Bank West Client – Treaty 505234 (standing proxy: State Street Bank West Client – Treaty 505234 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) State Street Bank and Trust Company 505225 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) Mizuho Bank, Ltd., Settlement & Clearing Services Division) State Street Bank and Trust Company 505225 (standing proxy: State Street Bank and Trust Company 505225 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) Mizuho Bank, Ltd., Settlement & Clearing Services Division) Notes: 1) Shareholding ratio is calculated by subtracting treasury stock. N u m b e r o f S h a r e s H e l d ( t h o u s a n d N u m b e r o f S h a r e s s h a r e s ) H e l d ( t h o u s a n d N u m b e r o f S h a r e s s h a r e s ) H e l d ( t h o u s a n d 36,727 s h a r e s ) S h a r e h o l d i n g R a t i o ( % ) S h a r e h o l d i n g R a t i o ( % ) S h a r e h o l d i n g R a t i o ( % ) 3.89 36,727 36,615 36,727 36,615 34,000 36,615 34,000 26,626 34,000 26,626 26,626 25,796 25,796 25,796 17,835 17,835 17,835 17,322 17,322 17,322 16,055 16,055 16,055 12,150 12,150 12,150 11,705 11,705 11,705 3.89 3.88 3.89 3.88 3.60 3.88 3.60 2.82 3.60 2.82 2.82 2.73 2.73 2.73 1.89 1.89 1.89 1.83 1.83 1.83 1.70 1.70 1.70 1.28 1.28 1.28 1.24 1.24 1.24 2) Although Komatsu Ltd. holds 29,040 thousand shares of treasury stock, it is excluded from the major Notes: 1) Shareholding ratio is calculated by subtracting treasury stock. Notes: 1) Shareholding ratio is calculated by subtracting treasury stock. shareholders listed above. 2) Although Komatsu Ltd. holds 29,040 thousand shares of treasury stock, it is excluded from the major 2) Although Komatsu Ltd. holds 29,040 thousand shares of treasury stock, it is excluded from the major shareholders listed above. shareholders listed above. Breakdown of Shareholders Breakdown of Shareholders Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange Stock Prices on the Tokyo Stock Exchange Stock Prices on the Tokyo Stock Exchange INFORMATION For further details, please click here Corporate Information INFORMATION INFORMATION Download PDF Corporate Information Site Map Corporate Information Download PDF Download PDF Site Map Site Map Financial conditions: For further details, please click here Securities Report For further details, please click here Financial conditions: Securities Report Financial conditions: Social activities: Securities Report CSR report Social activities: CSR report Social activities: Environmental performance: CSR report Environmental Report Environmental performance: Environmental Report Environmental performance: Environmental Report ESG ESG Corporate Governance ESG Risk Management Corporate Governance Environmental Corporate Governance Risk Management Conservation Efforts Risk Management Environmental Corporate Social Conservation Efforts Responsibility Efforts Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Corporate Social Responsibility Efforts Consolidated Results / FY2014 PERFORMANCE Five-Year Summary FY2014 PERFORMANCE Consolidated Results / Construction, Mining and Five-Year Summary Consolidated Results / Utility Equipment Five-Year Summary Construction, Mining and Industrial Machinery and Utility Equipment Construction, Mining and Others Utility Equipment Industrial Machinery and Others Industrial Machinery and STRATEGIES Growth Strategies Based STRATEGIES on Innovation STRATEGIES Growth Strategies Based Introduction to on Innovation Growth Strategies Based SMARTCONSTRUCTION on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Introduction to SMARTCONSTRUCTION Jobsite Report 1: Young SMARTCONSTRUCTION workers being responsible SMARTCONSTRUCTION for ICT-intensive Jobsite Report 1: Young construction workers being responsible Jobsite Report 1: Young for ICT-intensive workers being responsible Jobsite Report 2: Together construction for ICT-intensive with veteran operators construction Jobsite Report 2: Together Jobsite Report 3: Looking with veteran operators Jobsite Report 2: Together forward to the future of with veteran operators intelligent Machine Control Jobsite Report 3: Looking equipment forward to the future of Jobsite Report 3: Looking intelligent Machine Control forward to the future of equipment To All Our Stakeholders MANAGEMENT MANAGEMENT Interview with the To All Our Stakeholders President To All Our Stakeholders Interview with the President Interview with the President equipment MANAGEMENT intelligent Machine Control Others Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU REPORT 2015 Information Corporate Information Outline Shareholder Information Major Shareholders Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange Outline Name Head Office Komatsu Ltd. 2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan Date of Establishment May 13, 1921 Common Stock Outstanding Consolidated: ¥67,870 million based on U.S. GAAP Non-consolidated: ¥70,120 million Number of Employees subsidiaries) Non-consolidated: 10,416 Consolidated: 47,417 (Komatsu Ltd. and 138 consolidated Shareholder Information Shares of Common Stock Issued and Outstanding 942,926,902 shares (excluding 29,040,758 shares of treasury stock) Number of Shareholders 201,188 Number of Shares per Trading Unit 100 Securities Code 6301 (Japan) Stock Listings Tokyo Transfer Agent for Common Stock/Management Institution for Special Account Mitsubishi UFJ Trust and Banking Corporation 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan The Bank of New York Mellon 101 Barclay Street, New York, NY 10286, U.S.A. Tel: +1-(201)-680-6825 U.S. Callers: 888-269-2377 (888-BNY- ADRS) URL: http://www.adrbnymellon.com Ticker Symbol: KMTUY Depositaries (ADRs) Major Shareholders N a m e o f S h a r e h o l d e r s N u m b e r o f S h a r e s H e l d ( t h o u s a n d s h a r e s ) S h a r e h o l d i n g R a t i o ( % ) Japan Trustee Services Bank, Ltd. (Trust Account) The Master Trust Bank of Japan, Ltd. (Trust Account) Taiyo Life Insurance Company Nippon Life Insurance Company State Street Bank and Trust Company 505001 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) Sumitomo Mitsui Banking Corporation The Bank of New York Mellon as Depositary Bank for Depositary Receipt Holders (standing proxy: Sumitomo Mitsui Banking 17,322 Corporation) The Bank of New York Mellon SA/NV 10 (standing proxy: The Bank of Tokyo-Mitsubishi UFJ, Ltd.) State Street Bank West Client – Treaty 505234 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) State Street Bank and Trust Company 505225 (standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division) 36,727 36,615 34,000 26,626 25,796 17,835 16,055 12,150 11,705 3.89 3.88 3.60 2.82 2.73 1.89 1.83 1.70 1.28 1.24 Notes: 1) Shareholding ratio is calculated by subtracting treasury stock. 2) Although Komatsu Ltd. holds 29,040 thousand shares of treasury stock, it is excluded from the major shareholders listed above. Breakdown of Shareholders KOMATSU REPORT 2015 INFORMATION Corporate Information 37 Stock Prices on the Tokyo Stock Exchange STRATEGIES ESG INFORMATION For further details, please click here Corporate Governance Corporate Information Risk Management Download PDF Site Map Environmental Conservation Efforts Corporate Social Responsibility Efforts FY2014 PERFORMANCE Consolidated Results / Five-Year Summary Construction, Mining and Utility Equipment Industrial Machinery and Others Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Growth Strategies Based on Innovation Introduction to SMARTCONSTRUCTION SMARTCONSTRUCTION Jobsite Report 1: Young workers being responsible for ICT-intensive construction Jobsite Report 2: Together with veteran operators Jobsite Report 3: Looking forward to the future of intelligent Machine Control equipment MANAGEMENT To All Our Stakeholders Interview with the President Copyright © 2015 Komatsu Ltd. All rights reserved KOMATSU 2-3-6, Akasaka, Minato-ku, Tokyo 107-8414, Japan http://www.komatsu.co.jp/ Phone : +81-3-5561-2616 Corporate Communications Department Fax : +81-3-3505-9662 e-mail : info@komatsu.co.jp

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