WORKING FOR SUSTAINABLE GROWTH Starting the New Mid-range Management Plan KOMATSU REPORT 2016 For the year ended March 31, 2016 KOMATSU REPORT 2016 CO N T E N T S MANAGEMENT 01 03 To All Our Stakeholders FY2015 Performance STRATEGIES ~Starting the New Mid-range Management Plan~ 05 07 08 09 10 11 12 Summary of the Last Three Years and Mid to Long-range Projection Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan [Growth Strategies Based on Innovation] [Growth Strategies of Existing Businesses] [Structural Reforms Designed to Reinforce the Business Foundation] > Gemba Reports 12 Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION 16 Reinforcing GEMBA Efforts in Asia (Growth Strategies of Existing Businesses) ESG 21 22 23 ESG (Sustainability) Environmental Indexes Corporate Governance, Compliance and Risk Management INFORMATION 24 Corporate Information KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Japanese Print Download PDF MANAGEMENT KOMATSU REPORT 2016 To All Our Stakeholders To All Our Stakeholders 01 TO ALL OUR STAKEHOLDERS Kunio Noji, Chairman of the Board (left) and Tetsuji Ohashi, President (right) For Fiscal 2015 (April 1, 2015 to March 31, 2016), consolidated net sales declined by 6.3% from the previous fiscal year, to JPY1,854.9 billion, and operating income by 13.8% to JPY208.5 billion, as affected by a drastic fall in demand for mining equipment and for construction equipment in emerging countries. As we anticipate a challenging business environment to continue, we have developed a new mid-range management plan for the next three years from FY2016 to FY2018. The cornerstone of our management principles is to maximize our corporate value through commitment to Quality and Reliability. We will also ensure all employees share The KOMATSU Way. Further, we will continue to address environmental performance, corporate social responsibility and corporate governance, as we work to improve our business performance and move forward in developing corporate strengths while achieving social responsibility in a well-balanced manner. On behalf of the Board, we would like to extend our sincere appreciation to our shareholders and other stakeholders for your continuing support. July 2016 Kunio Noji, Chairman of the Board Tetsuji Ohashi, President and CEO Consolidated Results Cash Dividend * Based on the resolutions of the annual shareholders' meeting Management Principle and The (cid:44)OM(cid:34)TS(cid:54) (cid:56)ay Management Principle and The KOMATSU MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes Corporate Information Information Download PDF Site Map Corporate Governance, Compliance and Risk Management STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Management Tasks Ahead Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved KOMATSU REPORT 2016 To All Our Stakeholders KOMATSU REPORT 2016 To All Our Stakeholders Japanese Download PDF Japanese Print Print Download PDF Kunio Noji, Chairman of the Board (left) and Tetsuji Ohashi, President (right) Kunio Noji, Chairman of the Board (left) and Tetsuji Ohashi, President (right) For Fiscal 2015 (April 1, 2015 to March 31, 2016), consolidated net sales declined by 6.3% from the previous fiscal For Fiscal 2015 (April 1, 2015 to March 31, 2016), consolidated net sales declined by 6.3% from the previous fiscal year, to JPY1,854.9 billion, and operating income by 13.8% to JPY208.5 billion, as affected by a drastic fall in demand year, to JPY1,854.9 billion, and operating income by 13.8% to JPY208.5 billion, as affected by a drastic fall in demand for mining equipment and for construction equipment in emerging countries. for mining equipment and for construction equipment in emerging countries. As we anticipate a challenging business environment to continue, we have developed a new mid-range management As we anticipate a challenging business environment to continue, we have developed a new mid-range management plan for the next three years from FY2016 to FY2018. plan for the next three years from FY2016 to FY2018. The cornerstone of our management principles is to maximize our corporate value through commitment to Quality The cornerstone of our management principles is to maximize our corporate value through commitment to Quality and Reliability. We will also ensure all employees share The KOMATSU Way. Further, we will continue to address and Reliability. We will also ensure all employees share The KOMATSU Way. Further, we will continue to address environmental performance, corporate social responsibility and corporate governance, as we work to improve our environmental performance, corporate social responsibility and corporate governance, as we work to improve our business performance and move forward in developing corporate strengths while achieving social responsibility in a business performance and move forward in developing corporate strengths while achieving social responsibility in a On behalf of the Board, we would like to extend our sincere appreciation to our shareholders and other stakeholders On behalf of the Board, we would like to extend our sincere appreciation to our shareholders and other stakeholders well-balanced manner. well-balanced manner. for your continuing support. for your continuing support. July 2016 July 2016 Kunio Noji, Kunio Noji, Chairman of the Board Chairman of the Board Tetsuji Ohashi, Tetsuji Ohashi, President and CEO President and CEO KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION To All Our Stakeholders 02 Consolidated Results Consolidated Results Cash Dividend Cash Dividend * Based on the resolutions of the annual shareholders' meeting * Based on the resolutions of the annual shareholders' meeting Management Principle and The (cid:44)OM(cid:34)TS(cid:54) (cid:56)ay Please refer to our website. http://www.komatsu.com/CompanyInfo/profile/basics_management/ Management Principle and The (cid:44)OM(cid:34)TS(cid:54) (cid:56)ay STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Management Tasks Ahead STRATEGIES Start of the New Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Outline of the New Mid-range Management Plan Review of the Previous Mid-range Management Plan Targets Management Tasks Ahead Strategies Start of the New Mid-range Management Plan Growth Strategies Based on Innovation Outline of the New Mid-range Management Plan Targets Strategies SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies Based on Innovation Structural Reforms Designed to Reinforce the Business Foundation GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION Growth Strategies of Existing Businesses For further details, please click here GEMBA Reports: Reinforcing GEMBA Efforts in Asia Financial conditions: Securities Report Social activities: CSR report Structural Reforms Designed to Reinforce the Business Foundation MANAGEMENT To All Our Stakeholders FY2015 Performance MANAGEMENT Way To All Our Stakeholders ESG FY2015 Performance ESG (Sustainability) Management Principle and The KOMATSU Management Principle and The KOMATSU Environmental Indexes Way Corporate Governance, Compliance and Corporate Governance, Compliance and Download PDF Risk Management ESG ESG (Sustainability) Information Environmental Indexes Corporate Information Risk Management Site Map Information Corporate Information Environmental performance: Download PDF Environmental Report Site Map For further details, please click here Copyright © 2016 Komatsu Ltd. All rights reserved Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Print Download PDF Japanese Print Download PDF KOMATSU REPORT 2016 FY2015 Performance KOMATSU REPORT 2016 KOMATSU REPORT 2016 FY2015 Performance MANAGEMENT STRATEGIES ESG INFORMATION FY2015 Performance 03 (cid:41)ighlights of Business Results for FY2015 FY2015 PERFORMANCE (April 1, 2015 (cid:114) March 31, 2016) (cid:41)ighlights of Business Results for FY2015 For the fiscal year under review, which was the final year of the (cid:108)Together We Innovate GEMBA Worldwide(cid:122) mid-range (April 1, 2015 (cid:114) March 31, 2016) management plan, consolidated net sales totaled JPY1,854.9 billion, and operating income, JPY208.5 billion. Operating income ratio was 11.2%. Net income attributable to Komatsu Ltd. amounted to JPY13(cid:24).4 billion. For the fiscal year under review, which was the final year of the (cid:108)Together We Innovate GEMBA Worldwide(cid:122) mid-range management plan, consolidated net sales totaled JPY1,854.9 billion, and operating income, JPY208.5 billion. Operating income ratio was 11.2%. Net income attributable to Komatsu Ltd. amounted to JPY13(cid:24).4 billion. FY2015 Change from FY2014 Consolidated net sales Operating income Consolidated net sales Operating income ratio Operating income Net income attributable to Operating income ratio Komatsu Ltd. JPY 1,854.9 bn FY2015 JPY 208.5 bn JPY 1,854.9 bn 11.2% JPY 208.5 bn JPY 13(cid:24).4 bn 11.2% Net income attributable to ROE Komatsu Ltd. 9.0% JPY 13(cid:24).4 bn -6.3% Change from FY2014 -13.8% -6.3% -1.0 pt. -13.8% -10.8% -1.0 pt. -1.6 pts. -10.8% ROE 9.0% -1.6 pts. (cid:60)Construction, Mining (cid:7) Utility Equipment(cid:62) Sales of the construction, mining and utility equipment business amounted to JPY 1,641.0 billion, down 6.9% from the (cid:60)Construction, Mining (cid:7) Utility Equipment(cid:62) previous fiscal year. Segment profit declined by 19.0% to JPY 184.1 billion. While continuing to face a challenging business environment, characterized by a drastic drop in demand for mining Sales of the construction, mining and utility equipment business amounted to JPY 1,641.0 billion, down 6.9% from the equipment and sluggish demand for construction equipment in emerging countries, Komatsu promoted previous fiscal year. Segment profit declined by 19.0% to JPY 184.1 billion. SMARTCONSTRUCTION, a solutions business designed to realize (cid:108)construction jobsites of the future(cid:122), mainly in Japan. While continuing to face a challenging business environment, characterized by a drastic drop in demand for mining With respect to intelligent Machine Control construction equipment, Komatsu launched it in Australia, following Japan, equipment and sluggish demand for construction equipment in emerging countries, Komatsu promoted North America and Europe. Komatsu also broadened its model range during the year. As for products designed to SMARTCONSTRUCTION, a solutions business designed to realize (cid:108)construction jobsites of the future(cid:122), mainly in Japan. comply with new emission standards, Komatsu has developed a total of 33 models and worked to expand their sales. With respect to intelligent Machine Control construction equipment, Komatsu launched it in Australia, following Japan, In the after-market business, Komatsu steadfastly captured demand, thereby achieving the record-high sales of spare North America and Europe. Komatsu also broadened its model range during the year. As for products designed to parts for the year under review, renewing the previous record-high figure a year ago. comply with new emission standards, Komatsu has developed a total of 33 models and worked to expand their sales. To reinforce operations in Asia, Komatsu opened a new assembly plant for hydraulic excavators in India and a new In the after-market business, Komatsu steadfastly captured demand, thereby achieving the record-high sales of spare base for the remanufacturing of components and production of generators in Myanmar. In Mexico, an important market parts for the year under review, renewing the previous record-high figure a year ago. for its business, Komatsu acquired a local distributor in order to handle both construction and mining equipment To reinforce operations in Asia, Komatsu opened a new assembly plant for hydraulic excavators in India and a new businesses. base for the remanufacturing of components and production of generators in Myanmar. In Mexico, an important market for its business, Komatsu acquired a local distributor in order to handle both construction and mining equipment businesses. (cid:60)Industrial Machinery (cid:7) Others(cid:62) Sales decreased by 0.6% from FY2014, to JPY220.1 billion, and operating profit declined by 19.2%, to JPY19.3 billion. (cid:60)Industrial Machinery (cid:7) Others(cid:62) While GIGAP(cid:41)OTON INC. expanded sales, supported by stable machine utilization of the semiconductor industry, sales of presses declined. Sales decreased by 0.6% from FY2014, to JPY220.1 billion, and operating profit declined by 19.2%, to JPY19.3 billion. Under such an environment, Komatsu restructured its industrial machinery operations by consolidating the machine While GIGAP(cid:41)OTON INC. expanded sales, supported by stable machine utilization of the semiconductor industry, sales tools unit in the Toyama area and the sheet-metal and presses machines unit in the Ishikawa area. of presses declined. During the year, GIGAP(cid:41)OTON also developed and commercialized the leading-edge Excimer laser cutting machine Under such an environment, Komatsu restructured its industrial machinery operations by consolidating the machine model, designed to dynamically reduce the consumption of electric power and neon gas, and worked to expand sales tools unit in the Toyama area and the sheet-metal and presses machines unit in the Ishikawa area. thereof. During the year, GIGAP(cid:41)OTON also developed and commercialized the leading-edge Excimer laser cutting machine model, designed to dynamically reduce the consumption of electric power and neon gas, and worked to expand sales thereof. Five-Year Summary Komatsu Ltd. and Consolidated Subsidiaries Five-Year Summary Millions of yen (except per share amounts) Net income attributable to Komatsu Ltd. Income before income taxes and equity in 154,009 236,0(cid:24)4 159,518 242,056 126,321 204,603 16(cid:24),041 249,609 Komatsu Ltd. and Consolidated Subsidiaries For the (cid:112)scal period Net sales For the (cid:112)scal period Cost of sales Net sales Operating income Cost of sales Operating income ratio Operating income Income before income taxes and equity in earnings of a(cid:9359)liated companies Operating income ratio earnings of a(cid:9359)liated companies Capital investment Net income attributable to Komatsu Ltd. (cid:34)t (cid:112)scal period-end Capital investment Total assets (cid:34)t (cid:112)scal period-end Working capital Total assets Property, plant and equipment Working capital Long-term debt-less current maturities Property, plant and equipment Komatsu Ltd. shareholders' equity Long-term debt-less current maturities As percentage of total assets Komatsu Ltd. shareholders' equity Per share data As percentage of total assets Net income attributable to Komatsu Ltd. per share: Basic Per share data FY(cid:19)(cid:17)(cid:18)(cid:22) FY2014 FY2013 FY2012 FY2011 Millions of yen (except per share amounts) FY(cid:19)(cid:17)(cid:18)(cid:22) (cid:711)(cid:18),(cid:25)(cid:22)(cid:21),(cid:26)(cid:23)(cid:21) FY2014 (cid:711)1,9(cid:24)8,6(cid:24)6 FY2013 (cid:711)1,953,65(cid:24) FY2012 (cid:711)1,884,991 FY2011 (cid:711)1,981,(cid:24)63 1,401,193 1,393,048 1,3(cid:24)(cid:24),459 1,440,(cid:24)65 (cid:711)1,9(cid:24)8,6(cid:24)6 242,062 (cid:711)1,953,65(cid:24) 240,495 (cid:711)1,884,991 211,602 (cid:711)1,981,(cid:24)63 256,343 1,401,193 12.2% 242,062 236,0(cid:24)4 12.2% 1,393,048 12.3% 240,495 242,056 12.3% 1,3(cid:24)(cid:24),459 11.2% 211,602 204,603 11.2% 1,440,(cid:24)65 12.9% 256,343 249,609 12.9% 192,(cid:24)24 154,009 1(cid:24)9,0(cid:24)0 159,518 136,962 126,321 122,038 16(cid:24),041 (cid:18)(cid:23)(cid:17),(cid:17)(cid:22)(cid:18) (cid:711)(cid:19),(cid:23)(cid:18)(cid:21),(cid:23)(cid:22)(cid:21) 192,(cid:24)24 (cid:711)2,(cid:24)98,40(cid:24) 1(cid:24)9,0(cid:24)0 (cid:711)2,651,556 136,962 (cid:711)2,51(cid:24),85(cid:24) 122,038 (cid:711)2,320,529 (cid:24)16,524 (cid:24)01,201 664,480 536,662 (cid:711)2,(cid:24)98,40(cid:24) (cid:24)43,919 (cid:711)2,651,556 66(cid:24),34(cid:24) (cid:711)2,51(cid:24),85(cid:24) 585,220 (cid:711)2,320,529 529,656 (cid:24)16,524 2(cid:24)9,2(cid:24)0 (cid:24)43,919 1,528,966 2(cid:24)9,2(cid:24)0 54.6% (cid:24)01,201 311,06(cid:24) 66(cid:24),34(cid:24) 1,3(cid:24)6,391 311,06(cid:24) 51.9% 664,480 343,814 585,220 1,193,194 343,814 4(cid:24).4% 536,662 312,519 529,656 1,009,696 312,519 43.5% 1,528,966 1,3(cid:24)6,391 1,193,194 1,009,696 (cid:18),(cid:20)(cid:18)(cid:22),(cid:24)(cid:24)(cid:20) (cid:711)(cid:18),(cid:25)(cid:22)(cid:21),(cid:26)(cid:23)(cid:21) (cid:19)(cid:17)(cid:25),(cid:22)(cid:24)(cid:24) (cid:18),(cid:20)(cid:18)(cid:22),(cid:24)(cid:24)(cid:20) (cid:18)(cid:18)(cid:15)(cid:19)(cid:6) (cid:19)(cid:17)(cid:25),(cid:22)(cid:24)(cid:24) (cid:19)(cid:17)(cid:21),(cid:25)(cid:25)(cid:18) (cid:18)(cid:18)(cid:15)(cid:19)(cid:6) (cid:18)(cid:20)(cid:24),(cid:21)(cid:19)(cid:23) (cid:19)(cid:17)(cid:21),(cid:25)(cid:25)(cid:18) (cid:18)(cid:23)(cid:17),(cid:17)(cid:22)(cid:18) (cid:18)(cid:20)(cid:24),(cid:21)(cid:19)(cid:23) (cid:23)(cid:25)(cid:22),(cid:22)(cid:22)(cid:26) (cid:711)(cid:19),(cid:23)(cid:18)(cid:21),(cid:23)(cid:22)(cid:21) (cid:23)(cid:26)(cid:24),(cid:24)(cid:21)(cid:19) (cid:23)(cid:25)(cid:22),(cid:22)(cid:22)(cid:26) (cid:19)(cid:18)(cid:19),(cid:23)(cid:20)(cid:23) (cid:23)(cid:26)(cid:24),(cid:24)(cid:21)(cid:19) (cid:18),(cid:22)(cid:18)(cid:24),(cid:21)(cid:18)(cid:21) (cid:19)(cid:18)(cid:19),(cid:23)(cid:20)(cid:23) (cid:22)(cid:25)(cid:15)(cid:17)(cid:6) (cid:18),(cid:22)(cid:18)(cid:24),(cid:21)(cid:18)(cid:21) (cid:22)(cid:25)(cid:15)(cid:17)(cid:6) 54.6% 51.9% 4(cid:24).4% 43.5% (cid:711) (cid:18)(cid:21)(cid:22)(cid:15)(cid:25)(cid:17) (cid:711) 162.0(cid:24) (cid:711) 16(cid:24).36 (cid:711) 132.64 (cid:711) 1(cid:24)3.4(cid:24) Net income attributable to Komatsu Ltd. :Diluted (cid:18)(cid:21)(cid:22)(cid:15)(cid:23)(cid:18) 161.86 16(cid:24).18 132.51 1(cid:24)3.32 per share: Basic Cash dividends per share* :Diluted Cash dividends per share* Komatsu Ltd. shareholders' equity per share (cid:711) (cid:18)(cid:21)(cid:22)(cid:15)(cid:25)(cid:17) (cid:711) 162.0(cid:24) (cid:711) 16(cid:24).36 (cid:711) 132.64 (cid:711) 1(cid:24)3.4(cid:24) (cid:18)(cid:21)(cid:22)(cid:15)(cid:23)(cid:18) (cid:18),(cid:23)(cid:17)(cid:26)(cid:15)(cid:23)(cid:26) (cid:22)(cid:25) (cid:22)(cid:25) 161.86 1,622.48 58 58 16(cid:24).18 1,443.9(cid:24) 53 53 132.51 1,252.33 45 45 1(cid:24)3.32 1,060.31 41 41 * Cash dividends per share provided above are based on dividends paid each fiscal year. Komatsu Ltd. shareholders' equity per share (cid:18),(cid:23)(cid:17)(cid:26)(cid:15)(cid:23)(cid:26) 1,622.48 1,443.9(cid:24) 1,252.33 1,060.31 * Cash dividends per share provided above are based on dividends paid each fiscal year. Download the e(cid:89)cel (cid:112)le Download the e(cid:89)cel (cid:112)le ESG Management Principle and The KOMATSU Corporate Governance, Compliance and ESG (Sustainability) Risk Management Environmental Indexes Corporate Information Corporate Governance, Compliance and MANAGEMENT FY2015 Performance MANAGEMENT Way FY2015 Performance Way ESG (Sustainability) Environmental Indexes ESG Risk Management Information Download PDF Corporate Information Site Map Information Download PDF Site Map Summary of the Last Three Years and Mid to Long-range Projection To All Our Stakeholders Management Tasks Ahead Summary of the Last Three Years and Mid to Long-range Projection Management Principle and The KOMATSU To All Our Stakeholders STRATEGIES Review of the Previous Mid-range Management Plan STRATEGIES Our Surrounding Environment and Tasks Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Management Tasks Ahead Outline of the New Mid-range Management Plan Our Surrounding Environment and Tasks Targets Start of the New Mid-range Management Plan Strategies Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies Based on Innovation Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia SMARTCONSTRUCTION Structural Reforms Designed to Reinforce the Business Foundation Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved KOMATSU REPORT 2016 FY2015 Performance Japanese Print Download PDF (cid:41)ighlights of Business Results for FY2015 (April 1, 2015 (cid:114) March 31, 2016) For the fiscal year under review, which was the final year of the (cid:108)Together We Innovate GEMBA Worldwide(cid:122) mid-range management plan, consolidated net sales totaled JPY1,854.9 billion, and operating income, JPY208.5 billion. Operating income ratio was 11.2%. Net income attributable to Komatsu Ltd. amounted to JPY13(cid:24).4 billion. FY2015 Change from FY2014 Consolidated net sales JPY 1,854.9 bn Operating income JPY 208.5 bn Operating income ratio 11.2% Net income attributable to Komatsu Ltd. JPY 13(cid:24).4 bn -6.3% -13.8% -1.0 pt. -10.8% ROE 9.0% -1.6 pts. (cid:60)Construction, Mining (cid:7) Utility Equipment(cid:62) Sales of the construction, mining and utility equipment business amounted to JPY 1,641.0 billion, down 6.9% from the previous fiscal year. Segment profit declined by 19.0% to JPY 184.1 billion. While continuing to face a challenging business environment, characterized by a drastic drop in demand for mining equipment and sluggish demand for construction equipment in emerging countries, Komatsu promoted SMARTCONSTRUCTION, a solutions business designed to realize (cid:108)construction jobsites of the future(cid:122), mainly in Japan. With respect to intelligent Machine Control construction equipment, Komatsu launched it in Australia, following Japan, North America and Europe. Komatsu also broadened its model range during the year. As for products designed to comply with new emission standards, Komatsu has developed a total of 33 models and worked to expand their sales. In the after-market business, Komatsu steadfastly captured demand, thereby achieving the record-high sales of spare parts for the year under review, renewing the previous record-high figure a year ago. To reinforce operations in Asia, Komatsu opened a new assembly plant for hydraulic excavators in India and a new base for the remanufacturing of components and production of generators in Myanmar. In Mexico, an important market for its business, Komatsu acquired a local distributor in order to handle both construction and mining equipment businesses. (cid:60)Industrial Machinery (cid:7) Others(cid:62) Sales decreased by 0.6% from FY2014, to JPY220.1 billion, and operating profit declined by 19.2%, to JPY19.3 billion. While GIGAP(cid:41)OTON INC. expanded sales, supported by stable machine utilization of the semiconductor industry, sales of presses declined. Under such an environment, Komatsu restructured its industrial machinery operations by consolidating the machine tools unit in the Toyama area and the sheet-metal and presses machines unit in the Ishikawa area. During the year, GIGAP(cid:41)OTON also developed and commercialized the leading-edge Excimer laser cutting machine model, designed to dynamically reduce the consumption of electric power and neon gas, and worked to expand sales KOMATSU REPORT 2016 thereof. MANAGEMENT STRATEGIES ESG INFORMATION FY2015 Performance 04 Five-Year Summary Komatsu Ltd. and Consolidated Subsidiaries Millions of yen (except per share amounts) FY(cid:19)(cid:17)(cid:18)(cid:22) FY2014 FY2013 FY2012 FY2011 For the (cid:112)scal period Net sales Cost of sales (cid:711)(cid:18),(cid:25)(cid:22)(cid:21),(cid:26)(cid:23)(cid:21) (cid:711)1,9(cid:24)8,6(cid:24)6 (cid:711)1,953,65(cid:24) (cid:711)1,884,991 (cid:711)1,981,(cid:24)63 (cid:18),(cid:20)(cid:18)(cid:22),(cid:24)(cid:24)(cid:20) 1,401,193 1,393,048 1,3(cid:24)(cid:24),459 1,440,(cid:24)65 Operating income (cid:19)(cid:17)(cid:25),(cid:22)(cid:24)(cid:24) 242,062 240,495 211,602 256,343 Operating income ratio (cid:18)(cid:18)(cid:15)(cid:19)(cid:6) 12.2% 12.3% 11.2% 12.9% Income before income taxes and equity in (cid:19)(cid:17)(cid:21),(cid:25)(cid:25)(cid:18) 236,0(cid:24)4 242,056 204,603 249,609 earnings of a(cid:9359)liated companies Net income attributable to Komatsu Ltd. (cid:18)(cid:20)(cid:24),(cid:21)(cid:19)(cid:23) 154,009 159,518 126,321 16(cid:24),041 Capital investment (cid:18)(cid:23)(cid:17),(cid:17)(cid:22)(cid:18) 192,(cid:24)24 1(cid:24)9,0(cid:24)0 136,962 122,038 (cid:34)t (cid:112)scal period-end Total assets Working capital (cid:711)(cid:19),(cid:23)(cid:18)(cid:21),(cid:23)(cid:22)(cid:21) (cid:711)2,(cid:24)98,40(cid:24) (cid:711)2,651,556 (cid:711)2,51(cid:24),85(cid:24) (cid:711)2,320,529 (cid:23)(cid:25)(cid:22),(cid:22)(cid:22)(cid:26) (cid:24)16,524 (cid:24)01,201 664,480 536,662 Property, plant and equipment (cid:23)(cid:26)(cid:24),(cid:24)(cid:21)(cid:19) (cid:24)43,919 66(cid:24),34(cid:24) 585,220 529,656 Long-term debt-less current maturities (cid:19)(cid:18)(cid:19),(cid:23)(cid:20)(cid:23) 2(cid:24)9,2(cid:24)0 311,06(cid:24) 343,814 312,519 Komatsu Ltd. shareholders' equity (cid:18),(cid:22)(cid:18)(cid:24),(cid:21)(cid:18)(cid:21) 1,528,966 1,3(cid:24)6,391 1,193,194 1,009,696 As percentage of total assets (cid:22)(cid:25)(cid:15)(cid:17)(cid:6) 54.6% 51.9% 4(cid:24).4% 43.5% Per share data Net income attributable to Komatsu Ltd. per share: Basic (cid:711) (cid:18)(cid:21)(cid:22)(cid:15)(cid:25)(cid:17) (cid:711) 162.0(cid:24) (cid:711) 16(cid:24).36 (cid:711) 132.64 (cid:711) 1(cid:24)3.4(cid:24) :Diluted (cid:18)(cid:21)(cid:22)(cid:15)(cid:23)(cid:18) 161.86 16(cid:24).18 132.51 1(cid:24)3.32 Cash dividends per share* (cid:22)(cid:25) 58 53 45 41 Komatsu Ltd. shareholders' equity per share (cid:18),(cid:23)(cid:17)(cid:26)(cid:15)(cid:23)(cid:26) 1,622.48 1,443.9(cid:24) 1,252.33 1,060.31 * Cash dividends per share provided above are based on dividends paid each fiscal year. Download the e(cid:89)cel (cid:112)le Excel data is available at http://www.komatsu.com/CompanyInfo/ir/financial_highlights/ MANAGEMENT To All Our Stakeholders FY2015 Performance Management Principle and The KOMATSU Way ESG ESG (Sustainability) Environmental Indexes Corporate Information Information Download PDF Site Map Corporate Governance, Compliance and Risk Management STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Management Tasks Ahead Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Download PDF Japanese Print Print Download PDF Japanese Print Download PDF Japanese Print Download PDF Japanese Print Download PDF KOMATSU REPORT 2016 STRATEGIES MANAGEMENT STRATEGIES ESG INFORMATION Summary of the Last Three Years and Mid to Long-range Projection 05 Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection WORKING FOR SUSTAINABLE GROWTH Starting the New Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection (1 minute and 5 seconds) Review of the Previous Mid-range (1 minute and 5 seconds) Management Plan SUMMARY OF THE LAST THREE YEARS AND MID TO LONG-RANGE PROJECTION Management Plan Review of the Previous Mid-range Review of the Previous Mid-range Worldwide(cid:122) mid-range management plan for three We promoted the (cid:108)Together We Innovate GEMBA During this period, demand for construction and mining equipment continued to decline drastically from years from April, 2013 to March, 2016. (1 minute and 5 seconds) our projection, as impacted by slowing economies of Management Plan emerging countries ,as well as sluggish commodity We promoted the (cid:108)Together We Innovate GEMBA prices. In particular, demand for mining equipment Summary of the Last Three Years and Mid to Long-range Projection nose-dived to about 30% of the FY2012 level. Against this backdrop, we accelerated the speed of Worldwide(cid:122) mid-range management plan for three We promoted the (cid:108)Together We Innovate GEMBA years from April, 2013 to March, 2016. Worldwide(cid:122) mid-range management plan for three During this period, demand for construction and implementing structural reforms, such as cutting down production costs and curbing fixed costs, as we diligently carried out seeding for future growth, one of years from April, 2013 to March, 2016. mining equipment continued to decline drastically from the core strategies of the mid-range management During this period, demand for construction and our projection, as impacted by slowing economies of mining equipment continued to decline drastically from emerging countries ,as well as sluggish commodity our projection, as impacted by slowing economies of prices. In particular, demand for mining equipment emerging countries ,as well as sluggish commodity nose-dived to about 30% of the FY2012 level. prices. In particular, demand for mining equipment (1 minute and 5 seconds) When we assess our business environment today, we plan. Management Tasks Ahead must first think about demand for construction and Against this backdrop, we accelerated the speed of mining equipment as well as industrial machinery. We Review of the Previous Mid-range project that demand for construction and mining nose-dived to about 30% of the FY2012 level. implementing structural reforms, such as cutting down Against this backdrop, we accelerated the speed of Management Plan equipment, in particular, from which we generate 90% of total sales, will remain very challenging in FY2016 We promoted the (cid:108)Together We Innovate GEMBA and beyond, for some time. (cid:108)Against this backdrop, Worldwide(cid:122) mid-range management plan for three how are we going to ensure growth(cid:32)(cid:122) This is the first years from April, 2013 to March, 2016. task we must address. production costs and curbing fixed costs, as we implementing structural reforms, such as cutting down diligently carried out seeding for future growth, one of production costs and curbing fixed costs, as we the core strategies of the mid-range management diligently carried out seeding for future growth, one of plan. the core strategies of the mid-range management During this period, demand for construction and We believe the key to our growth, after all, lies in plan. mining equipment continued to decline drastically from solutions to the problems of GEMBA (workplaces). our projection, as impacted by slowing economies of Tasks that customers face in their GEMBA differ emerging countries ,as well as sluggish commodity depending on countries, regions or industries. prices. In particular, demand for mining equipment (cid:41)owever, we believe the following represents the major nose-dived to about 30% of the FY2012 level. tasks of our customers, i.e., 1) to meet the shortage of Against this backdrop, we accelerated the speed of skilled workers, 2) use of IoT (Internet of Things), 3) to implementing structural reforms, such as cutting down improve the safety, productivity and environmental production costs and curbing fixed costs, as we performance of their jobsite operations, and 4) to diligently carried out seeding for future growth, one of reduce the total cost of ownership of their machines. the core strategies of the mid-range management Management Tasks Ahead Management Tasks Ahead When we assess our business environment today, we Management Tasks Ahead and Governance) from companies. We need to keep our full attention on these Today we are also witnessing growing social management tasks as we continue to conduct our must first think about demand for construction and mining equipment as well as industrial machinery. We business into the future. When we assess our business environment today, we plan. expectations in relation to ESG (Environmental, Social must first think about demand for construction and When we assess our business environment today, we mining equipment as well as industrial machinery. We must first think about demand for construction and project that demand for construction and mining mining equipment as well as industrial machinery. We equipment, in particular, from which we generate 90% project that demand for construction and mining of total sales, will remain very challenging in FY2016 equipment, in particular, from which we generate 90% and beyond, for some time. (cid:108)Against this backdrop, of total sales, will remain very challenging in FY2016 how are we going to ensure growth(cid:32)(cid:122) This is the first and beyond, for some time. (cid:108)Against this backdrop, equipment, in particular, from which we generate 90% task we must address. of total sales, will remain very challenging in FY2016 how are we going to ensure growth(cid:32)(cid:122) This is the first We believe the key to our growth, after all, lies in and beyond, for some time. (cid:108)Against this backdrop, task we must address. how are we going to ensure growth(cid:32)(cid:122) This is the first solutions to the problems of GEMBA (workplaces). We believe the key to our growth, after all, lies in Tasks that customers face in their GEMBA differ solutions to the problems of GEMBA (workplaces). depending on countries, regions or industries. solutions to the problems of GEMBA (workplaces). project that demand for construction and mining We believe the key to our growth, after all, lies in Tasks that customers face in their GEMBA differ task we must address. Tasks that customers face in their GEMBA differ depending on countries, regions or industries. (cid:41)owever, we believe the following represents the major tasks of our customers, i.e., 1) to meet the shortage of skilled workers, 2) use of IoT (Internet of Things), 3) to (cid:41)owever, we believe the following represents the major depending on countries, regions or industries. tasks of our customers, i.e., 1) to meet the shortage of (cid:41)owever, we believe the following represents the major skilled workers, 2) use of IoT (Internet of Things), 3) to tasks of our customers, i.e., 1) to meet the shortage of improve the safety, productivity and environmental skilled workers, 2) use of IoT (Internet of Things), 3) to performance of their jobsite operations, and 4) to improve the safety, productivity and environmental reduce the total cost of ownership of their machines. performance of their jobsite operations, and 4) to Today we are also witnessing growing social (2 minutes and 46 seconds) expectations in relation to ESG (Environmental, Social reduce the total cost of ownership of their machines. Today we are also witnessing growing social and Governance) from companies. We need to keep our full attention on these management tasks as we continue to conduct our reduce the total cost of ownership of their machines. expectations in relation to ESG (Environmental, Social business into the future. Today we are also witnessing growing social and Governance) from companies. expectations in relation to ESG (Environmental, Social We need to keep our full attention on these and Governance) from companies. management tasks as we continue to conduct our We need to keep our full attention on these business into the future. management tasks as we continue to conduct our Summary of the Last Three Years and Mid to Long-range Projection Tetsuji Ohashi, President and CEO (1 minute and 5 seconds) Please refer to Online Komatsu Report. Review of the Previous Mid-range Management Plan We promoted the (cid:108)Together We Innovate GEMBA Worldwide(cid:122) mid-range management plan for three years from April, 2013 to March, 2016. During this period, demand for construction and mining equipment continued to decline drastically from our projection, as impacted by slowing economies of emerging countries ,as well as sluggish commodity Start of the New Mid-range Management Plan improve the safety, productivity and environmental performance of their jobsite operations, and 4) to prices. In particular, demand for mining equipment nose-dived to about 30% of the FY2012 level. Against this backdrop, we accelerated the speed of implementing structural reforms, such as cutting down production costs and curbing fixed costs, as we diligently carried out seeding for future growth, one of the core strategies of the mid-range management plan. Start of the New Mid-range Management Plan We project that demand for construction and mining equipment will remain in an adjustment phase for (9 minutes and 45 seconds) the time being, centering on emerging countries. In the long range, however, global population will grow Strategies and the urbanization rate will increase, especially in emerging countries, which will fuel more civil engineering and construction works and increase the required volume of minerals. Therefore, we Outline of the New Mid-range Management Plan We defined three core strategies of (cid:108)growth based on innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural Outline of the New Mid-range Management Plan reforms designed to reinforce our business foundation(cid:122) believe we can expect a sustainable growth of demand for construction and mining equipment. and promoted corresponding efforts in the previous mid- In the industrial machinery business, we anticipate that capital investment will increase in the range management plan. In the new mid-range automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, albeit with some ups and downs. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: IoT, even while demand for construction and mining Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. equipment remain sluggish. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth consisting of our customers, distributors and production, Targets of the new mid-range management plan are Through our IoT, we will connect all GEMBA (workplaces), Targets Targets management plan, we continue to focus on three core strategies of the previous plan. We will strive to accelerate growth by working to sow the seeds for future growth and taking further advantage of our group-wide strength of beyond 2021 at a rate above the industry's average. (3 minutes and 23 seconds) (3 minutes and 23 seconds) Management Tasks Ahead business into the future. When we assess our business environment today, we We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow must first think about demand for construction and and the urbanization rate will increase, especially in emerging countries, which will fuel more civil mining equipment as well as industrial machinery. We believe we can expect a sustainable growth of demand for construction and mining equipment. engineering and construction works and increase the required volume of minerals. Therefore, we project that demand for construction and mining In the industrial machinery business, we anticipate that capital investment will increase in the equipment, in particular, from which we generate 90% Start of the New Mid-range Management Plan automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, albeit with some ups and downs. of total sales, will remain very challenging in FY2016 Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: and beyond, for some time. (cid:108)Against this backdrop, As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth (2 minutes and 46 seconds) Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. how are we going to ensure growth(cid:32)(cid:122) This is the first beyond 2021 at a rate above the industry's average. task we must address. We believe the key to our growth, after all, lies in solutions to the problems of GEMBA (workplaces). Tasks that customers face in their GEMBA differ depending on countries, regions or industries. (cid:41)owever, we believe the following represents the major Start of the New Mid-range Management Plan tasks of our customers, i.e., 1) to meet the shortage of skilled workers, 2) use of IoT (Internet of Things), 3) to Start of the New Mid-range Management Plan improve the safety, productivity and environmental the time being, centering on emerging countries. In the long range, however, global population will grow We project that demand for construction and mining equipment will remain in an adjustment phase for performance of their jobsite operations, and 4) to and the urbanization rate will increase, especially in emerging countries, which will fuel more civil reduce the total cost of ownership of their machines. believe we can expect a sustainable growth of demand for construction and mining equipment. engineering and construction works and increase the required volume of minerals. Therefore, we Today we are also witnessing growing social In the industrial machinery business, we anticipate that capital investment will increase in the Outline of the New Mid-range Management Plan automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, expectations in relation to ESG (Environmental, Social albeit with some ups and downs. and Governance) from companies. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: (3 minutes and 23 seconds) Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. We need to keep our full attention on these As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth management tasks as we continue to conduct our Targets beyond 2021 at a rate above the industry's average. business into the future. Targets of the new mid-range management plan are described in the chart on the right. (2 minutes and 46 seconds) (2 minutes and 46 seconds) In addition to profitability, e(cid:9359)ciency, profit redistribution to shareholders and financial position, we have included a new key performance indicator. We have also separated the retail finance business as a new operating segment in order to enhance management transparency in the new plan. Please see the linked sheet for our projection of consolidated business results for FY2016, the first year of the new plan. Cash Dividend We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow We project that demand for construction and mining equipment will remain in an adjustment phase for In the last three years, we reduced our debt of all and the urbanization rate will increase, especially in emerging countries, which will fuel more civil the time being, centering on emerging countries. In the long range, however, global population will grow operations, except for the retail finance business, as planned. Concerning the future use of funds, we will engineering and construction works and increase the required volume of minerals. Therefore, we and the urbanization rate will increase, especially in emerging countries, which will fuel more civil Outline of the New Mid-range Management Plan further consider the redistribution of profits to believe we can expect a sustainable growth of demand for construction and mining equipment. engineering and construction works and increase the required volume of minerals. Therefore, we shareholders, including stock buybacks, while keeping In the industrial machinery business, we anticipate that capital investment will increase in the investment for growth at the center. Specifically, we have believe we can expect a sustainable growth of demand for construction and mining equipment. set the policy of a consolidated payout ratio of 40% or (3 minutes and 23 seconds) automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, higher with no decrease of dividends, as long as the In the industrial machinery business, we anticipate that capital investment will increase in the albeit with some ups and downs. consolidated payout ratio does not surpass 60%. Targets automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, For FY2016, we are planning annual dividends of JPY58 Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: per share, the same amount as FY2015. As a result, the albeit with some ups and downs. Targets of the new mid-range management plan are consolidated payout ratio should amount to 59.4%. Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. described in the chart on the right. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: In addition to profitability, e(cid:9359)ciency, profit redistribution As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. to shareholders and financial position, we have included a beyond 2021 at a rate above the industry's average. new key performance indicator. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth We have also separated the retail finance business as a (9 minutes and 45 seconds) beyond 2021 at a rate above the industry's average. new operating segment in order to enhance management Strategies transparency in the new plan. (2 minutes and 46 seconds) Please see the linked sheet for our projection of We defined three core strategies of (cid:108)growth based on consolidated business results for FY2016, the first year of innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural the new plan. reforms designed to reinforce our business foundation(cid:122) and promoted corresponding efforts in the previous mid- Cash Dividend range management plan. In the new mid-range management plan, we continue to focus on three core In the last three years, we reduced our debt of all strategies of the previous plan. We will strive to accelerate operations, except for the retail finance business, as growth by working to sow the seeds for future growth and planned. Concerning the future use of funds, we will taking further advantage of our group-wide strength of further consider the redistribution of profits to IoT, even while demand for construction and mining shareholders, including stock buybacks, while keeping equipment remain sluggish. investment for growth at the center. Specifically, we have Through our IoT, we will connect all GEMBA (workplaces), set the policy of a consolidated payout ratio of 40% or consisting of our customers, distributors and production, higher with no decrease of dividends, as long as the including suppliers, in order to improve the safety and consolidated payout ratio does not surpass 60%. productivity of all GEMBA, thereby working to become For FY2016, we are planning annual dividends of JPY58 ever more indispensable to our customers. per share, the same amount as FY2015. As a result, the consolidated payout ratio should amount to 59.4%. described in the chart on the right. including suppliers, in order to improve the safety and Targets of the new mid-range management plan are In addition to profitability, e(cid:9359)ciency, profit redistribution productivity of all GEMBA, thereby working to become described in the chart on the right. ever more indispensable to our customers. to shareholders and financial position, we have included a In addition to profitability, e(cid:9359)ciency, profit redistribution new key performance indicator. to shareholders and financial position, we have included a We have also separated the retail finance business as a new key performance indicator. Reinforcement of ESG Efforts new operating segment in order to enhance management We have also separated the retail finance business as a ESG (Sustainability) transparency in the new plan. Over the years, the Komatsu Group has made proactive ESG efforts, namely new operating segment in order to enhance management environmental, social and corporate governance. We believe the importance of ESG Please see the linked sheet for our projection of efforts will steadily become stronger into the future. In our new mid-range management transparency in the new plan. consolidated business results for FY2016, the first year of Please see the linked sheet for our projection of society and on corporate governance. plan, we will maintain focused efforts as we place emphasis on the environment, on the new plan. consolidated business results for FY2016, the first year of the new plan. Cash Dividend Environmental Conservation Efforts Cash Dividend In the last three years, we reduced our debt of all important task for environmental The reduction of CO emissions is our 2 conservation. Construction equipment in operations, except for the retail finance business, as operation accounts for about 90% of the total In the last three years, we reduced our debt of all planned. Concerning the future use of funds, we will operations, except for the retail finance business, as throughout its lifecycle (chart on the right). amount of CO emissions produced 2 further consider the redistribution of profits to We will help our customers reduce CO planned. Concerning the future use of funds, we will shareholders, including stock buybacks, while keeping emissions from their machines by considering 2 further consider the redistribution of profits to environmental performance and applying ICT investment for growth at the center. Specifically, we have to improve fuel consumption, when we shareholders, including stock buybacks, while keeping set the policy of a consolidated payout ratio of 40% or investment for growth at the center. Specifically, we have higher with no decrease of dividends, as long as the set the policy of a consolidated payout ratio of 40% or Reinforcement of ESG Efforts consolidated payout ratio does not surpass 60%. ESG (Sustainability) (2 minutes and 53 seconds) For more information For more information higher with no decrease of dividends, as long as the Over the years, the Komatsu Group has made proactive ESG efforts, namely For FY2016, we are planning annual dividends of JPY58 (3 minutes and 23 seconds) environmental, social and corporate governance. We believe the importance of ESG consolidated payout ratio does not surpass 60%. per share, the same amount as FY2015. As a result, the efforts will steadily become stronger into the future. In our new mid-range management For FY2016, we are planning annual dividends of JPY58 plan, we will maintain focused efforts as we place emphasis on the environment, on consolidated payout ratio should amount to 59.4%. society and on corporate governance. per share, the same amount as FY2015. As a result, the For more information consolidated payout ratio should amount to 59.4%. Environmental Conservation Efforts The reduction of CO emissions is our 2 important task for environmental conservation. Construction equipment in operation accounts for about 90% of the total amount of CO emissions produced 2 Strategies Strategies throughout its lifecycle (chart on the right). Corporate Social Responsibility Efforts We will help our customers reduce CO 2 We defined three core strategies of (cid:108)growth based on emissions from their machines by considering We at the Komatsu Group have set our basic principle to innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural make CSR efforts through core businesses. Based on this environmental performance and applying ICT We defined three core strategies of (cid:108)growth based on to improve fuel consumption, when we principle, we would like to engage in social contribution reforms designed to reinforce our business foundation(cid:122) innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural activities that make the best use of our strengths to fulfill develop new products. and promoted corresponding efforts in the previous mid- our responsibilities to society. reforms designed to reinforce our business foundation(cid:122) As part of our CSR efforts, under the leadership of range management plan. In the new mid-range and promoted corresponding efforts in the previous mid- different Komatsu Group companies around the world, we management plan, we continue to focus on three core engage in support activities to solve local problems. range management plan. In the new mid-range For example, in Japan we provide support to Japan's strategies of the previous plan. We will strive to accelerate agriculture business, which is facing serious problems of management plan, we continue to focus on three core growth by working to sow the seeds for future growth and aging and no newcomers, by capitalizing on our strategies of the previous plan. We will strive to accelerate manufacturing expertise. taking further advantage of our group-wide strength of We will continue to pay close attention to the needs of growth by working to sow the seeds for future growth and IoT, even while demand for construction and mining local communities around the world in order to deeply taking further advantage of our group-wide strength of anchor the social contribution activities of Komatsu Group equipment remain sluggish. companies. IoT, even while demand for construction and mining Through our IoT, we will connect all GEMBA (workplaces), equipment remain sluggish. consisting of our customers, distributors and production, Through our IoT, we will connect all GEMBA (workplaces), including suppliers, in order to improve the safety and consisting of our customers, distributors and production, productivity of all GEMBA, thereby working to become including suppliers, in order to improve the safety and ever more indispensable to our customers. Corporate Social Responsibility Efforts productivity of all GEMBA, thereby working to become ever more indispensable to our customers. We at the Komatsu Group have set our basic principle to make CSR efforts through core businesses. Based on this In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to young people. For more information Corporate Governance, Compliance and Risk Management principle, we would like to engage in social contribution Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize activities that make the best use of our strengths to fulfill its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by To increase the total sum of trust, Komatsu needs to not only improve business results but also our responsibilities to society. society and all its stakeholders. As part of our CSR efforts, under the leadership of different Komatsu Group companies around the world, we enhance the soundness and transparency of management. engage in support activities to solve local problems. For example, in Japan we provide support to Japan's agriculture business, which is facing serious problems of aging and no newcomers, by capitalizing on our Corporate Governance manufacturing expertise. In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to We will continue to pay close attention to the needs of (9 minutes and 45 seconds) We, at Komatsu, believe our corporate value is the total sum of trust given to us by young people. local communities around the world in order to deeply society and all stakeholders. To become a company which enjoys even more trust from anchor the social contribution activities of Komatsu Group shareholders and all other stakeholders, we are working to strengthen corporate companies. governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure sound management on a group-wide basis. In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated management. 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. For more information For more information Corporate Governance, Compliance and Risk Management (9 minutes and 45 seconds) For more information (9 minutes and 45 seconds) Outline of the New Mid-range Management Plan develop new products. (2 minutes and 53 seconds) Targets Targets of the new mid-range management plan are described in the chart on the right. In addition to profitability, e(cid:9359)ciency, profit redistribution to shareholders and financial position, we have included a new key performance indicator. We have also separated the retail finance business as a new operating segment in order to enhance management transparency in the new plan. Please see the linked sheet for our projection of consolidated business results for FY2016, the first year of the new plan. Cash Dividend In the last three years, we reduced our debt of all operations, except for the retail finance business, as planned. Concerning the future use of funds, we will further consider the redistribution of profits to shareholders, including stock buybacks, while keeping investment for growth at the center. Specifically, we have set the policy of a consolidated payout ratio of 40% or higher with no decrease of dividends, as long as the consolidated payout ratio does not surpass 60%. For FY2016, we are planning annual dividends of JPY58 per share, the same amount as FY2015. As a result, the consolidated payout ratio should amount to 59.4%. Strategies We defined three core strategies of (cid:108)growth based on innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural reforms designed to reinforce our business foundation(cid:122) and promoted corresponding efforts in the previous mid- range management plan. In the new mid-range management plan, we continue to focus on three core strategies of the previous plan. We will strive to accelerate growth by working to sow the seeds for future growth and taking further advantage of our group-wide strength of IoT, even while demand for construction and mining equipment remain sluggish. Through our IoT, we will connect all GEMBA (workplaces), consisting of our customers, distributors and production, including suppliers, in order to improve the safety and productivity of all GEMBA, thereby working to become ever more indispensable to our customers. Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by Compliance society and all its stakeholders. To increase the total sum of trust, Komatsu needs to not only improve business results but also As the importance of corporate social responsibility is growing today, it is indispensable enhance the soundness and transparency of management. for all companies to respond to social trust by ensuring that each and every employee not only fully understands corporate responsibility but also complies with the Rule of the Business Community, not limited to laws and regulations in a narrow sense. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety ESG (Sustainability) For more information Corporate Governance and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. We, at Komatsu, believe our corporate value is the total sum of trust given to us by ESG (Sustainability) society and all stakeholders. To become a company which enjoys even more trust from shareholders and all other stakeholders, we are working to strengthen corporate Risk Management governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure sound management on a group-wide basis. We define all states of uncertainty, which can threaten the sustainable growth of the In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas Reinforcement of ESG Efforts particular, the environment, product quality, accidents, information security and other management. To further improve the transparency of management for our shareholders Komatsu Group. We recognize the problems related to compliance as major risks, in subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated Reinforcement of ESG Efforts Over the years, the Komatsu Group has made proactive ESG efforts, namely investor relations' activities by holding meetings with shareholders and investors. and investors, we disclose information in a fair and timely manner and actively engage in matters, and we are thus implementing corresponding countermeasures. environmental, social and corporate governance. We believe the importance of ESG Over the years, the Komatsu Group has made proactive ESG efforts, namely efforts will steadily become stronger into the future. In our new mid-range management environmental, social and corporate governance. We believe the importance of ESG plan, we will maintain focused efforts as we place emphasis on the environment, on efforts will steadily become stronger into the future. In our new mid-range management society and on corporate governance. Information plan, we will maintain focused efforts as we place emphasis on the environment, on Compliance society and on corporate governance. As the importance of corporate social responsibility is growing today, it is indispensable Corporate Information for all companies to respond to social trust by ensuring that each and every employee not only fully understands corporate responsibility but also complies with the Rule of the Environmental Conservation Efforts In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety Business Community, not limited to laws and regulations in a narrow sense. For more information and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Download PDF Site Map Environmental Conservation Efforts The reduction of CO emissions is our 2 (2 minutes and 53 seconds) (2 minutes and 53 seconds) For more information For more information For more information For more information operation accounts for about 90% of the total We define all states of uncertainty, which can threaten the sustainable growth of the conservation. Construction equipment in Summary of the Last Three Years and Mid to Long-range Projection Komatsu Group. We recognize the problems related to compliance as major risks, in amount of CO emissions produced Review of the Previous Mid-range Management Plan particular, the environment, product quality, accidents, information security and other 2 MANAGEMENT To All Our Stakeholders For more FY2015 Performance information matters, and we are thus implementing corresponding countermeasures. Management Principle and The KOMATSU For more information For more information important task for environmental The reduction of CO emissions is our Risk Management conservation. Construction equipment in 2 important task for environmental STRATEGIES operation accounts for about 90% of the total Management Tasks Ahead throughout its lifecycle (chart on the right). Start of the New Mid-range Management Plan amount of CO emissions produced We will help our customers reduce CO Outline of the New Mid-range Management Plan throughout its lifecycle (chart on the right). Targets 2 2 emissions from their machines by considering We will help our customers reduce CO Strategies environmental performance and applying ICT emissions from their machines by considering Growth Strategies Based on Innovation to improve fuel consumption, when we environmental performance and applying ICT SMARTCONSTRUCTION 2 develop new products. Growth Strategies of Existing Businesses to improve fuel consumption, when we GEMBA Reports: Reinforcing GEMBA Efforts in Asia ESG (Sustainability) Information GEMBA Report: Moving forward with customers: Reporting from a jobsite of develop new products. Structural Reforms Designed to Reinforce the Business Foundation Corporate Information For further details, please click here (2 minutes and 53 seconds) Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Download PDF Copyright © 2016 Komatsu Ltd. All rights reserved Site Map Way ESG ESG (Sustainability) Environmental Indexes INFORMATION Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes INFORMATION Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Review of the Previous Mid-range Management Plan For more Start of the New Mid-range Management Plan information Outline of the New Mid-range Management Plan Targets Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Corporate Social Responsibility Efforts Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Corporate Social Responsibility Efforts We at the Komatsu Group have set our basic principle to information For more Copyright © 2016 Komatsu Ltd. All rights reserved make CSR efforts through core businesses. Based on this We at the Komatsu Group have set our basic principle to principle, we would like to engage in social contribution make CSR efforts through core businesses. Based on this activities that make the best use of our strengths to fulfill principle, we would like to engage in social contribution our responsibilities to society. activities that make the best use of our strengths to fulfill As part of our CSR efforts, under the leadership of our responsibilities to society. different Komatsu Group companies around the world, we As part of our CSR efforts, under the leadership of engage in support activities to solve local problems. different Komatsu Group companies around the world, we For example, in Japan we provide support to Japan's engage in support activities to solve local problems. agriculture business, which is facing serious problems of For example, in Japan we provide support to Japan's aging and no newcomers, by capitalizing on our agriculture business, which is facing serious problems of manufacturing expertise. aging and no newcomers, by capitalizing on our We will continue to pay close attention to the needs of manufacturing expertise. local communities around the world in order to deeply We will continue to pay close attention to the needs of anchor the social contribution activities of Komatsu Group local communities around the world in order to deeply anchor the social contribution activities of Komatsu Group companies. companies. In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to young people. In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to young people. For more information For more information Reinforcement of ESG Efforts Over the years, the Komatsu Group has made proactive ESG efforts, namely environmental, social and corporate governance. We believe the importance of ESG STRATEGIES efforts will steadily become stronger into the future. In our new mid-range management Summary of the Last Three Years and Mid to Long-range Projection plan, we will maintain focused efforts as we place emphasis on the environment, on Management Tasks Ahead Management Principle and The KOMATSU society and on corporate governance. Environmental Conservation Efforts The reduction of CO emissions is our 2 important task for environmental conservation. Construction equipment in operation accounts for about 90% of the total amount of CO emissions produced 2 throughout its lifecycle (chart on the right). We will help our customers reduce CO 2 emissions from their machines by considering environmental performance and applying ICT to improve fuel consumption, when we develop new products. As part of our CSR efforts, under the leadership of enhance the soundness and transparency of management. Corporate Social Responsibility Efforts We at the Komatsu Group have set our basic principle to make CSR efforts through core businesses. Based on this principle, we would like to engage in social contribution activities that make the best use of our strengths to fulfill our responsibilities to society. different Komatsu Group companies around the world, we engage in support activities to solve local problems. For example, in Japan we provide support to Japan's agriculture business, which is facing serious problems of aging and no newcomers, by capitalizing on our manufacturing expertise. We will continue to pay close attention to the needs of local communities around the world in order to deeply anchor the social contribution activities of Komatsu Group companies. Corporate Governance, Compliance and Risk Management Corporate Governance, Compliance and Risk Management Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize society and all its stakeholders. its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by To increase the total sum of trust, Komatsu needs to not only improve business results but also society and all its stakeholders. enhance the soundness and transparency of management. To increase the total sum of trust, Komatsu needs to not only improve business results but also Corporate Governance Corporate Governance We, at Komatsu, believe our corporate value is the total sum of trust given to us by In Indonesia we offer scholarships to children in economically poor society and all stakeholders. To become a company which enjoys even more trust from We, at Komatsu, believe our corporate value is the total sum of trust given to us by districts and vocational training and employment opportunities to shareholders and all other stakeholders, we are working to strengthen corporate society and all stakeholders. To become a company which enjoys even more trust from young people. governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure shareholders and all other stakeholders, we are working to strengthen corporate sound management on a group-wide basis. governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas For more sound management on a group-wide basis. subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas information management. To further improve the transparency of management for our shareholders subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated and investors, we disclose information in a fair and timely manner and actively engage in management. To further improve the transparency of management for our shareholders investor relations' activities by holding meetings with shareholders and investors. 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. For more information For more information Corporate Governance, Compliance and Risk Management Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by As the importance of corporate social responsibility is growing today, it is indispensable society and all its stakeholders. To increase the total sum of trust, Komatsu needs to not only improve business results but also for all companies to respond to social trust by ensuring that each and every employee for all companies to respond to social trust by ensuring that each and every employee As the importance of corporate social responsibility is growing today, it is indispensable not only fully understands corporate responsibility but also complies with the Rule of the enhance the soundness and transparency of management. Compliance Compliance Business Community, not limited to laws and regulations in a narrow sense. not only fully understands corporate responsibility but also complies with the Rule of the In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety Business Community, not limited to laws and regulations in a narrow sense. and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety For more information For more information and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Corporate Governance We, at Komatsu, believe our corporate value is the total sum of trust given to us by Risk Management society and all stakeholders. To become a company which enjoys even more trust from Risk Management shareholders and all other stakeholders, we are working to strengthen corporate governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure sound management on a group-wide basis. We define all states of uncertainty, which can threaten the sustainable growth of the Komatsu Group. We recognize the problems related to compliance as major risks, in We define all states of uncertainty, which can threaten the sustainable growth of the particular, the environment, product quality, accidents, information security and other Komatsu Group. We recognize the problems related to compliance as major risks, in For more matters, and we are thus implementing corresponding countermeasures. In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas particular, the environment, product quality, accidents, information security and other information subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated matters, and we are thus implementing corresponding countermeasures. For more information For more information management. 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. Information Information Corporate Information Corporate Information Compliance As the importance of corporate social responsibility is growing today, it is indispensable for all companies to respond to social trust by ensuring that each and every employee not only fully understands corporate responsibility but also complies with the Rule of the Download PDF Business Community, not limited to laws and regulations in a narrow sense. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Download PDF For more information Risk Management STRATEGIES STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection We define all states of uncertainty, which can threaten the sustainable growth of the Management Tasks Ahead Komatsu Group. We recognize the problems related to compliance as major risks, in particular, the environment, product quality, accidents, information security and other Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Management Tasks Ahead For more Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan information matters, and we are thus implementing corresponding countermeasures. Outline of the New Mid-range Management Plan Targets Strategies Targets Strategies Growth Strategies Based on Innovation Growth Strategies Based on Innovation SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of Corporate Governance, Compliance and GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies of Existing Businesses SMARTCONSTRUCTION GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Information Corporate Information Financial conditions: For further details, please click here Securities Report Social activities: CSR report Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Download PDF Site Map Site Map Site Map MANAGEMENT To All Our Stakeholders MANAGEMENT FY2015 Performance To All Our Stakeholders Management Principle and The KOMATSU FY2015 Performance Way Management Principle and The KOMATSU Corporate Governance, Compliance and ESG Way ESG ESG (Sustainability) Environmental Indexes ESG (Sustainability) Environmental Indexes Risk Management INFORMATION Risk Management Corporate Information INFORMATION Download PDF Corporate Information Site Map Download PDF Site Map Management Tasks Ahead Management Principle and The KOMATSU STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes INFORMATION Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Summary of the Last Three Years and Mid to Long-range Projection 06 Our Surrounding Environment and Tasks Summary of the Last Three Years and Mid to Long-range Projection Japanese Print Download PDF (1 minute and 5 seconds) Review of the Previous Mid-range Management Plan We promoted the (cid:108)Together We Innovate GEMBA Worldwide(cid:122) mid-range management plan for three years from April, 2013 to March, 2016. During this period, demand for construction and mining equipment continued to decline drastically from our projection, as impacted by slowing economies of emerging countries ,as well as sluggish commodity prices. In particular, demand for mining equipment nose-dived to about 30% of the FY2012 level. Against this backdrop, we accelerated the speed of implementing structural reforms, such as cutting down production costs and curbing fixed costs, as we diligently carried out seeding for future growth, one of the core strategies of the mid-range management plan. Management Tasks Ahead When we assess our business environment today, we must first think about demand for construction and mining equipment as well as industrial machinery. We project that demand for construction and mining equipment, in particular, from which we generate 90% of total sales, will remain very challenging in FY2016 and beyond, for some time. (cid:108)Against this backdrop, how are we going to ensure growth(cid:32)(cid:122) This is the first task we must address. We believe the key to our growth, after all, lies in solutions to the problems of GEMBA (workplaces). Tasks that customers face in their GEMBA differ depending on countries, regions or industries. (cid:41)owever, we believe the following represents the major tasks of our customers, i.e., 1) to meet the shortage of skilled workers, 2) use of IoT (Internet of Things), 3) to improve the safety, productivity and environmental performance of their jobsite operations, and 4) to reduce the total cost of ownership of their machines. Today we are also witnessing growing social expectations in relation to ESG (Environmental, Social and Governance) from companies. We need to keep our full attention on these management tasks as we continue to conduct our business into the future. KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Start of the New Mid-range Management Plan 07 START OF THE NEW MID-RANGE MANAGEMENT PLAN Start of the New Mid-range Management Plan (2 minutes and 46 seconds) Please refer to Online Komatsu Report. We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow and the urbanization rate will increase, especially in emerging countries, which will fuel more civil engineering and construction works and increase the required volume of minerals. Therefore, we believe we can expect a sustainable growth of demand for construction and mining equipment. In the industrial machinery business, we anticipate that capital investment will increase in the automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, albeit with some ups and downs. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth beyond 2021 at a rate above the industry's average. Outline of the New Mid-range Management Plan (3 minutes and 23 seconds) Targets Targets of the new mid-range management plan are described in the chart on the right. In addition to profitability, e(cid:9359)ciency, profit redistribution to shareholders and financial position, we have included a new key performance indicator. We have also separated the retail finance business as a new operating segment in order to enhance management transparency in the new plan. Please see the linked sheet for our projection of consolidated business results for FY2016, the first year of the new plan. Cash Dividend In the last three years, we reduced our debt of all operations, except for the retail finance business, as planned. Concerning the future use of funds, we will further consider the redistribution of profits to shareholders, including stock buybacks, while keeping investment for growth at the center. Specifically, we have set the policy of a consolidated payout ratio of 40% or higher with no decrease of dividends, as long as the consolidated payout ratio does not surpass 60%. For FY2016, we are planning annual dividends of JPY58 per share, the same amount as FY2015. As a result, the consolidated payout ratio should amount to 59.4%. Strategies We defined three core strategies of (cid:108)growth based on innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural reforms designed to reinforce our business foundation(cid:122) and promoted corresponding efforts in the previous mid- range management plan. In the new mid-range management plan, we continue to focus on three core strategies of the previous plan. We will strive to accelerate growth by working to sow the seeds for future growth and taking further advantage of our group-wide strength of IoT, even while demand for construction and mining equipment remain sluggish. Through our IoT, we will connect all GEMBA (workplaces), consisting of our customers, distributors and production, including suppliers, in order to improve the safety and productivity of all GEMBA, thereby working to become ever more indispensable to our customers. (9 minutes and 45 seconds) ESG (Sustainability) (2 minutes and 53 seconds) Reinforcement of ESG Efforts Over the years, the Komatsu Group has made proactive ESG efforts, namely environmental, social and corporate governance. We believe the importance of ESG efforts will steadily become stronger into the future. In our new mid-range management plan, we will maintain focused efforts as we place emphasis on the environment, on society and on corporate governance. For more information Environmental Conservation Efforts The reduction of CO emissions is our 2 important task for environmental conservation. Construction equipment in operation accounts for about 90% of the total amount of CO emissions produced 2 throughout its lifecycle (chart on the right). We will help our customers reduce CO 2 emissions from their machines by considering environmental performance and applying ICT to improve fuel consumption, when we develop new products. For more information Corporate Social Responsibility Efforts We at the Komatsu Group have set our basic principle to make CSR efforts through core businesses. Based on this principle, we would like to engage in social contribution activities that make the best use of our strengths to fulfill our responsibilities to society. As part of our CSR efforts, under the leadership of different Komatsu Group companies around the world, we engage in support activities to solve local problems. For example, in Japan we provide support to Japan's agriculture business, which is facing serious problems of aging and no newcomers, by capitalizing on our manufacturing expertise. We will continue to pay close attention to the needs of young people. local communities around the world in order to deeply anchor the social contribution activities of Komatsu Group companies. For more information In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to Corporate Governance, Compliance and Risk Management Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by society and all its stakeholders. To increase the total sum of trust, Komatsu needs to not only improve business results but also enhance the soundness and transparency of management. Corporate Governance We, at Komatsu, believe our corporate value is the total sum of trust given to us by society and all stakeholders. To become a company which enjoys even more trust from shareholders and all other stakeholders, we are working to strengthen corporate governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure sound management on a group-wide basis. In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated management. 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. For more information Compliance As the importance of corporate social responsibility is growing today, it is indispensable for all companies to respond to social trust by ensuring that each and every employee not only fully understands corporate responsibility but also complies with the Rule of the Business Community, not limited to laws and regulations in a narrow sense. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. For more information Risk Management We define all states of uncertainty, which can threaten the sustainable growth of the Komatsu Group. We recognize the problems related to compliance as major risks, in particular, the environment, product quality, accidents, information security and other matters, and we are thus implementing corresponding countermeasures. For more information Information Corporate Information Download PDF Site Map Management Tasks Ahead Management Principle and The KOMATSU STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes INFORMATION Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection Japanese Print Japanese Download PDF Print Download PDF Japanese Japanese Print Print Download PDF Download PDF (1 minute and 5 seconds) (1 minute and 5 seconds) Review of the Previous Mid-range Review of the Previous Mid-range Management Plan Management Plan (1 minute and 5 seconds) (1 minute and 5 seconds) We promoted the (cid:108)Together We Innovate GEMBA Worldwide(cid:122) mid-range management plan for three We promoted the (cid:108)Together We Innovate GEMBA Review of the Previous Mid-range Review of the Previous Mid-range Worldwide(cid:122) mid-range management plan for three years from April, 2013 to March, 2016. years from April, 2013 to March, 2016. During this period, demand for construction and Management Plan Management Plan mining equipment continued to decline drastically from During this period, demand for construction and our projection, as impacted by slowing economies of mining equipment continued to decline drastically from We promoted the (cid:108)Together We Innovate GEMBA We promoted the (cid:108)Together We Innovate GEMBA emerging countries ,as well as sluggish commodity our projection, as impacted by slowing economies of Worldwide(cid:122) mid-range management plan for three Worldwide(cid:122) mid-range management plan for three prices. In particular, demand for mining equipment emerging countries ,as well as sluggish commodity years from April, 2013 to March, 2016. years from April, 2013 to March, 2016. nose-dived to about 30% of the FY2012 level. prices. In particular, demand for mining equipment During this period, demand for construction and During this period, demand for construction and nose-dived to about 30% of the FY2012 level. Against this backdrop, we accelerated the speed of mining equipment continued to decline drastically from mining equipment continued to decline drastically from implementing structural reforms, such as cutting down Against this backdrop, we accelerated the speed of our projection, as impacted by slowing economies of our projection, as impacted by slowing economies of production costs and curbing fixed costs, as we implementing structural reforms, such as cutting down emerging countries ,as well as sluggish commodity emerging countries ,as well as sluggish commodity diligently carried out seeding for future growth, one of production costs and curbing fixed costs, as we prices. In particular, demand for mining equipment prices. In particular, demand for mining equipment the core strategies of the mid-range management diligently carried out seeding for future growth, one of nose-dived to about 30% of the FY2012 level. nose-dived to about 30% of the FY2012 level. plan. the core strategies of the mid-range management Against this backdrop, we accelerated the speed of Against this backdrop, we accelerated the speed of plan. implementing structural reforms, such as cutting down implementing structural reforms, such as cutting down production costs and curbing fixed costs, as we production costs and curbing fixed costs, as we diligently carried out seeding for future growth, one of diligently carried out seeding for future growth, one of Management Tasks Ahead the core strategies of the mid-range management the core strategies of the mid-range management Management Tasks Ahead plan. plan. When we assess our business environment today, we must first think about demand for construction and When we assess our business environment today, we mining equipment as well as industrial machinery. We must first think about demand for construction and project that demand for construction and mining mining equipment as well as industrial machinery. We Management Tasks Ahead Management Tasks Ahead equipment, in particular, from which we generate 90% project that demand for construction and mining of total sales, will remain very challenging in FY2016 equipment, in particular, from which we generate 90% When we assess our business environment today, we When we assess our business environment today, we and beyond, for some time. (cid:108)Against this backdrop, of total sales, will remain very challenging in FY2016 must first think about demand for construction and must first think about demand for construction and how are we going to ensure growth(cid:32)(cid:122) This is the first and beyond, for some time. (cid:108)Against this backdrop, mining equipment as well as industrial machinery. We mining equipment as well as industrial machinery. We task we must address. how are we going to ensure growth(cid:32)(cid:122) This is the first project that demand for construction and mining project that demand for construction and mining task we must address. We believe the key to our growth, after all, lies in equipment, in particular, from which we generate 90% equipment, in particular, from which we generate 90% solutions to the problems of GEMBA (workplaces). We believe the key to our growth, after all, lies in of total sales, will remain very challenging in FY2016 of total sales, will remain very challenging in FY2016 solutions to the problems of GEMBA (workplaces). Tasks that customers face in their GEMBA differ and beyond, for some time. (cid:108)Against this backdrop, and beyond, for some time. (cid:108)Against this backdrop, depending on countries, regions or industries. how are we going to ensure growth(cid:32)(cid:122) This is the first Tasks that customers face in their GEMBA differ how are we going to ensure growth(cid:32)(cid:122) This is the first (cid:41)owever, we believe the following represents the major depending on countries, regions or industries. task we must address. task we must address. tasks of our customers, i.e., 1) to meet the shortage of (cid:41)owever, we believe the following represents the major We believe the key to our growth, after all, lies in We believe the key to our growth, after all, lies in skilled workers, 2) use of IoT (Internet of Things), 3) to tasks of our customers, i.e., 1) to meet the shortage of solutions to the problems of GEMBA (workplaces). solutions to the problems of GEMBA (workplaces). improve the safety, productivity and environmental skilled workers, 2) use of IoT (Internet of Things), 3) to Tasks that customers face in their GEMBA differ Tasks that customers face in their GEMBA differ performance of their jobsite operations, and 4) to improve the safety, productivity and environmental depending on countries, regions or industries. depending on countries, regions or industries. reduce the total cost of ownership of their machines. performance of their jobsite operations, and 4) to (cid:41)owever, we believe the following represents the major (cid:41)owever, we believe the following represents the major reduce the total cost of ownership of their machines. tasks of our customers, i.e., 1) to meet the shortage of Today we are also witnessing growing social tasks of our customers, i.e., 1) to meet the shortage of expectations in relation to ESG (Environmental, Social skilled workers, 2) use of IoT (Internet of Things), 3) to Today we are also witnessing growing social skilled workers, 2) use of IoT (Internet of Things), 3) to and Governance) from companies. expectations in relation to ESG (Environmental, Social improve the safety, productivity and environmental improve the safety, productivity and environmental and Governance) from companies. We need to keep our full attention on these performance of their jobsite operations, and 4) to performance of their jobsite operations, and 4) to management tasks as we continue to conduct our We need to keep our full attention on these reduce the total cost of ownership of their machines. reduce the total cost of ownership of their machines. business into the future. management tasks as we continue to conduct our Today we are also witnessing growing social Today we are also witnessing growing social business into the future. expectations in relation to ESG (Environmental, Social expectations in relation to ESG (Environmental, Social and Governance) from companies. and Governance) from companies. We need to keep our full attention on these We need to keep our full attention on these management tasks as we continue to conduct our management tasks as we continue to conduct our business into the future. business into the future. Start of the New Mid-range Management Plan Start of the New Mid-range Management Plan Start of the New Mid-range Management Plan Start of the New Mid-range Management Plan (2 minutes and 46 seconds) (2 minutes and 46 seconds) (2 minutes and 46 seconds) (2 minutes and 46 seconds) We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow We project that demand for construction and mining equipment will remain in an adjustment phase for and the urbanization rate will increase, especially in emerging countries, which will fuel more civil the time being, centering on emerging countries. In the long range, however, global population will grow engineering and construction works and increase the required volume of minerals. Therefore, we and the urbanization rate will increase, especially in emerging countries, which will fuel more civil believe we can expect a sustainable growth of demand for construction and mining equipment. engineering and construction works and increase the required volume of minerals. Therefore, we believe we can expect a sustainable growth of demand for construction and mining equipment. In the industrial machinery business, we anticipate that capital investment will increase in the We project that demand for construction and mining equipment will remain in an adjustment phase for We project that demand for construction and mining equipment will remain in an adjustment phase for automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, In the industrial machinery business, we anticipate that capital investment will increase in the the time being, centering on emerging countries. In the long range, however, global population will grow the time being, centering on emerging countries. In the long range, however, global population will grow albeit with some ups and downs. automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, and the urbanization rate will increase, especially in emerging countries, which will fuel more civil and the urbanization rate will increase, especially in emerging countries, which will fuel more civil albeit with some ups and downs. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: engineering and construction works and increase the required volume of minerals. Therefore, we engineering and construction works and increase the required volume of minerals. Therefore, we Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: believe we can expect a sustainable growth of demand for construction and mining equipment. believe we can expect a sustainable growth of demand for construction and mining equipment. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. In the industrial machinery business, we anticipate that capital investment will increase in the In the industrial machinery business, we anticipate that capital investment will increase in the beyond 2021 at a rate above the industry's average. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, beyond 2021 at a rate above the industry's average. albeit with some ups and downs. albeit with some ups and downs. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth beyond 2021 at a rate above the industry's average. beyond 2021 at a rate above the industry's average. KOMATSU REPORT 2016 Outline of the New Mid-range Management Plan Outline of the New Mid-range Management Plan MANAGEMENT STRATEGIES ESG INFORMATION Outline of the New Mid-range Management Plan (3 minutes and 23 seconds) 08 (3 minutes and 23 seconds) Outline of the New Mid-range Management Plan Outline of the New Mid-range Management Plan OUTLINE OF THE NEW MID-RANGE MANAGEMENT PLAN Targets Targets Targets of the new mid-range management plan are described in the chart on the right. Targets of the new mid-range management plan are (3 minutes and 23 seconds) (3 minutes and 23 seconds) described in the chart on the right. In addition to profitability, e(cid:9359)ciency, profit redistribution Please refer to Online Komatsu Report. to shareholders and financial position, we have included a In addition to profitability, e(cid:9359)ciency, profit redistribution Targets Targets new key performance indicator. to shareholders and financial position, we have included a Please see the linked sheet for our projection of We have also separated the retail finance business as a new key performance indicator. Targets of the new mid-range management plan are Targets of the new mid-range management plan are new operating segment in order to enhance management We have also separated the retail finance business as a described in the chart on the right. described in the chart on the right. transparency in the new plan. new operating segment in order to enhance management In addition to profitability, e(cid:9359)ciency, profit redistribution In addition to profitability, e(cid:9359)ciency, profit redistribution Please see the linked sheet for our projection of transparency in the new plan. to shareholders and financial position, we have included a to shareholders and financial position, we have included a consolidated business results for FY2016, the first year of new key performance indicator. new key performance indicator. the new plan. consolidated business results for FY2016, the first year of We have also separated the retail finance business as a We have also separated the retail finance business as a the new plan. new operating segment in order to enhance management new operating segment in order to enhance management Cash Dividend transparency in the new plan. transparency in the new plan. Cash Dividend Please see the linked sheet for our projection of Please see the linked sheet for our projection of In the last three years, we reduced our debt of all consolidated business results for FY2016, the first year of consolidated business results for FY2016, the first year of operations, except for the retail finance business, as In the last three years, we reduced our debt of all the new plan. the new plan. planned. Concerning the future use of funds, we will operations, except for the retail finance business, as See pages 2 further consider the redistribution of profits to planned. Concerning the future use of funds, we will Cash Dividend Cash Dividend shareholders, including stock buybacks, while keeping further consider the redistribution of profits to For FY2016, we are planning annual dividends of JPY58 investment for growth at the center. Specifically, we have shareholders, including stock buybacks, while keeping In the last three years, we reduced our debt of all In the last three years, we reduced our debt of all set the policy of a consolidated payout ratio of 40% or investment for growth at the center. Specifically, we have operations, except for the retail finance business, as operations, except for the retail finance business, as higher with no decrease of dividends, as long as the set the policy of a consolidated payout ratio of 40% or planned. Concerning the future use of funds, we will planned. Concerning the future use of funds, we will consolidated payout ratio does not surpass 60%. higher with no decrease of dividends, as long as the further consider the redistribution of profits to further consider the redistribution of profits to consolidated payout ratio does not surpass 60%. shareholders, including stock buybacks, while keeping shareholders, including stock buybacks, while keeping per share, the same amount as FY2015. As a result, the For FY2016, we are planning annual dividends of JPY58 investment for growth at the center. Specifically, we have investment for growth at the center. Specifically, we have consolidated payout ratio should amount to 59.4%. per share, the same amount as FY2015. As a result, the set the policy of a consolidated payout ratio of 40% or set the policy of a consolidated payout ratio of 40% or consolidated payout ratio should amount to 59.4%. higher with no decrease of dividends, as long as the higher with no decrease of dividends, as long as the consolidated payout ratio does not surpass 60%. consolidated payout ratio does not surpass 60%. For FY2016, we are planning annual dividends of JPY58 For FY2016, we are planning annual dividends of JPY58 per share, the same amount as FY2015. As a result, the per share, the same amount as FY2015. As a result, the consolidated payout ratio should amount to 59.4%. consolidated payout ratio should amount to 59.4%. Strategies Strategies We defined three core strategies of (cid:108)growth based on innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural We defined three core strategies of (cid:108)growth based on reforms designed to reinforce our business foundation(cid:122) innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural and promoted corresponding efforts in the previous mid- reforms designed to reinforce our business foundation(cid:122) Strategies Strategies range management plan. In the new mid-range and promoted corresponding efforts in the previous mid- management plan, we continue to focus on three core range management plan. In the new mid-range We defined three core strategies of (cid:108)growth based on We defined three core strategies of (cid:108)growth based on strategies of the previous plan. We will strive to accelerate management plan, we continue to focus on three core innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural growth by working to sow the seeds for future growth and strategies of the previous plan. We will strive to accelerate reforms designed to reinforce our business foundation(cid:122) reforms designed to reinforce our business foundation(cid:122) taking further advantage of our group-wide strength of growth by working to sow the seeds for future growth and and promoted corresponding efforts in the previous mid- and promoted corresponding efforts in the previous mid- IoT, even while demand for construction and mining taking further advantage of our group-wide strength of range management plan. In the new mid-range range management plan. In the new mid-range equipment remain sluggish. IoT, even while demand for construction and mining management plan, we continue to focus on three core management plan, we continue to focus on three core Through our IoT, we will connect all GEMBA (workplaces), equipment remain sluggish. strategies of the previous plan. We will strive to accelerate strategies of the previous plan. We will strive to accelerate consisting of our customers, distributors and production, Through our IoT, we will connect all GEMBA (workplaces), growth by working to sow the seeds for future growth and growth by working to sow the seeds for future growth and including suppliers, in order to improve the safety and consisting of our customers, distributors and production, taking further advantage of our group-wide strength of taking further advantage of our group-wide strength of productivity of all GEMBA, thereby working to become including suppliers, in order to improve the safety and IoT, even while demand for construction and mining IoT, even while demand for construction and mining ever more indispensable to our customers. productivity of all GEMBA, thereby working to become equipment remain sluggish. equipment remain sluggish. ever more indispensable to our customers. Through our IoT, we will connect all GEMBA (workplaces), Through our IoT, we will connect all GEMBA (workplaces), consisting of our customers, distributors and production, consisting of our customers, distributors and production, including suppliers, in order to improve the safety and including suppliers, in order to improve the safety and productivity of all GEMBA, thereby working to become productivity of all GEMBA, thereby working to become ever more indispensable to our customers. ever more indispensable to our customers. (9 minutes and 45 seconds) (9 minutes and 45 seconds) Please refer to Online Komatsu Report. (9 minutes and 45 seconds) (9 minutes and 45 seconds) ESG (Sustainability) ESG (Sustainability) Reinforcement of ESG Efforts Reinforcement of ESG Efforts ESG (Sustainability) ESG (Sustainability) Over the years, the Komatsu Group has made proactive ESG efforts, namely environmental, social and corporate governance. We believe the importance of ESG Over the years, the Komatsu Group has made proactive ESG efforts, namely (2 minutes and 53 seconds) (2 minutes and 53 seconds) (2 minutes and 53 seconds) (2 minutes and 53 seconds) efforts will steadily become stronger into the future. In our new mid-range management environmental, social and corporate governance. We believe the importance of ESG plan, we will maintain focused efforts as we place emphasis on the environment, on efforts will steadily become stronger into the future. In our new mid-range management Reinforcement of ESG Efforts Reinforcement of ESG Efforts society and on corporate governance. plan, we will maintain focused efforts as we place emphasis on the environment, on society and on corporate governance. Over the years, the Komatsu Group has made proactive ESG efforts, namely Over the years, the Komatsu Group has made proactive ESG efforts, namely environmental, social and corporate governance. We believe the importance of ESG environmental, social and corporate governance. We believe the importance of ESG efforts will steadily become stronger into the future. In our new mid-range management efforts will steadily become stronger into the future. In our new mid-range management Environmental Conservation Efforts plan, we will maintain focused efforts as we place emphasis on the environment, on plan, we will maintain focused efforts as we place emphasis on the environment, on For more information For more information For more For more information information For more information For more information For more For more information information Environmental Conservation Efforts society and on corporate governance. society and on corporate governance. The reduction of CO emissions is our important task for environmental The reduction of CO emissions is our conservation. Construction equipment in important task for environmental 2 2 conservation. Construction equipment in operation accounts for about 90% of the total Environmental Conservation Efforts Environmental Conservation Efforts amount of CO emissions produced operation accounts for about 90% of the total 2 throughout its lifecycle (chart on the right). amount of CO emissions produced The reduction of CO emissions is our The reduction of CO emissions is our 2 2 2 We will help our customers reduce CO throughout its lifecycle (chart on the right). important task for environmental important task for environmental 2 emissions from their machines by considering We will help our customers reduce CO conservation. Construction equipment in conservation. Construction equipment in 2 environmental performance and applying ICT emissions from their machines by considering operation accounts for about 90% of the total operation accounts for about 90% of the total to improve fuel consumption, when we environmental performance and applying ICT amount of CO emissions produced amount of CO emissions produced 2 2 develop new products. to improve fuel consumption, when we throughout its lifecycle (chart on the right). throughout its lifecycle (chart on the right). develop new products. We will help our customers reduce CO We will help our customers reduce CO 2 2 emissions from their machines by considering emissions from their machines by considering environmental performance and applying ICT environmental performance and applying ICT to improve fuel consumption, when we to improve fuel consumption, when we develop new products. develop new products. Corporate Social Responsibility Efforts Corporate Social Responsibility Efforts We at the Komatsu Group have set our basic principle to make CSR efforts through core businesses. Based on this We at the Komatsu Group have set our basic principle to principle, we would like to engage in social contribution make CSR efforts through core businesses. Based on this activities that make the best use of our strengths to fulfill principle, we would like to engage in social contribution Corporate Social Responsibility Efforts Corporate Social Responsibility Efforts our responsibilities to society. activities that make the best use of our strengths to fulfill our responsibilities to society. As part of our CSR efforts, under the leadership of We at the Komatsu Group have set our basic principle to We at the Komatsu Group have set our basic principle to different Komatsu Group companies around the world, we As part of our CSR efforts, under the leadership of make CSR efforts through core businesses. Based on this make CSR efforts through core businesses. Based on this engage in support activities to solve local problems. different Komatsu Group companies around the world, we principle, we would like to engage in social contribution principle, we would like to engage in social contribution engage in support activities to solve local problems. For example, in Japan we provide support to Japan's activities that make the best use of our strengths to fulfill activities that make the best use of our strengths to fulfill agriculture business, which is facing serious problems of For example, in Japan we provide support to Japan's our responsibilities to society. our responsibilities to society. aging and no newcomers, by capitalizing on our agriculture business, which is facing serious problems of As part of our CSR efforts, under the leadership of As part of our CSR efforts, under the leadership of manufacturing expertise. aging and no newcomers, by capitalizing on our different Komatsu Group companies around the world, we different Komatsu Group companies around the world, we manufacturing expertise. We will continue to pay close attention to the needs of engage in support activities to solve local problems. engage in support activities to solve local problems. local communities around the world in order to deeply We will continue to pay close attention to the needs of For example, in Japan we provide support to Japan's For example, in Japan we provide support to Japan's anchor the social contribution activities of Komatsu Group local communities around the world in order to deeply agriculture business, which is facing serious problems of agriculture business, which is facing serious problems of companies. anchor the social contribution activities of Komatsu Group aging and no newcomers, by capitalizing on our aging and no newcomers, by capitalizing on our companies. manufacturing expertise. manufacturing expertise. We will continue to pay close attention to the needs of We will continue to pay close attention to the needs of local communities around the world in order to deeply local communities around the world in order to deeply anchor the social contribution activities of Komatsu Group anchor the social contribution activities of Komatsu Group companies. companies. In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to young people. young people. For more In Indonesia we offer scholarships to children in economically poor In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to districts and vocational training and employment opportunities to information information For more young people. young people. For more For more information information Corporate Governance, Compliance and Risk Management Corporate Governance, Compliance and Risk Management Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize society and all its stakeholders. its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by Corporate Governance, Compliance and Risk Management Corporate Governance, Compliance and Risk Management society and all its stakeholders. To increase the total sum of trust, Komatsu needs to not only improve business results but also enhance the soundness and transparency of management. To increase the total sum of trust, Komatsu needs to not only improve business results but also enhance the soundness and transparency of management. Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by society and all its stakeholders. society and all its stakeholders. Corporate Governance To increase the total sum of trust, Komatsu needs to not only improve business results but also To increase the total sum of trust, Komatsu needs to not only improve business results but also Corporate Governance enhance the soundness and transparency of management. enhance the soundness and transparency of management. We, at Komatsu, believe our corporate value is the total sum of trust given to us by society and all stakeholders. To become a company which enjoys even more trust from We, at Komatsu, believe our corporate value is the total sum of trust given to us by shareholders and all other stakeholders, we are working to strengthen corporate society and all stakeholders. To become a company which enjoys even more trust from governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure shareholders and all other stakeholders, we are working to strengthen corporate Corporate Governance Corporate Governance sound management on a group-wide basis. governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure sound management on a group-wide basis. In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas We, at Komatsu, believe our corporate value is the total sum of trust given to us by We, at Komatsu, believe our corporate value is the total sum of trust given to us by subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas society and all stakeholders. To become a company which enjoys even more trust from society and all stakeholders. To become a company which enjoys even more trust from management. To further improve the transparency of management for our shareholders subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated shareholders and all other stakeholders, we are working to strengthen corporate shareholders and all other stakeholders, we are working to strengthen corporate and investors, we disclose information in a fair and timely manner and actively engage in management. To further improve the transparency of management for our shareholders governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure investor relations' activities by holding meetings with shareholders and investors. and investors, we disclose information in a fair and timely manner and actively engage in sound management on a group-wide basis. sound management on a group-wide basis. investor relations' activities by holding meetings with shareholders and investors. In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated management. To further improve the transparency of management for our shareholders management. 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 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. investor relations' activities by holding meetings with shareholders and investors. Compliance Compliance As the importance of corporate social responsibility is growing today, it is indispensable for all companies to respond to social trust by ensuring that each and every employee As the importance of corporate social responsibility is growing today, it is indispensable not only fully understands corporate responsibility but also complies with the Rule of the for all companies to respond to social trust by ensuring that each and every employee Business Community, not limited to laws and regulations in a narrow sense. not only fully understands corporate responsibility but also complies with the Rule of the Compliance Compliance Business Community, not limited to laws and regulations in a narrow sense. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety As the importance of corporate social responsibility is growing today, it is indispensable As the importance of corporate social responsibility is growing today, it is indispensable and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. for all companies to respond to social trust by ensuring that each and every employee for all companies to respond to social trust by ensuring that each and every employee not only fully understands corporate responsibility but also complies with the Rule of the not only fully understands corporate responsibility but also complies with the Rule of the Business Community, not limited to laws and regulations in a narrow sense. Business Community, not limited to laws and regulations in a narrow sense. Risk Management In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety Risk Management and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. We define all states of uncertainty, which can threaten the sustainable growth of the Komatsu Group. We recognize the problems related to compliance as major risks, in We define all states of uncertainty, which can threaten the sustainable growth of the particular, the environment, product quality, accidents, information security and other Komatsu Group. We recognize the problems related to compliance as major risks, in matters, and we are thus implementing corresponding countermeasures. particular, the environment, product quality, accidents, information security and other Risk Management Risk Management matters, and we are thus implementing corresponding countermeasures. We define all states of uncertainty, which can threaten the sustainable growth of the We define all states of uncertainty, which can threaten the sustainable growth of the Komatsu Group. We recognize the problems related to compliance as major risks, in Komatsu Group. We recognize the problems related to compliance as major risks, in particular, the environment, product quality, accidents, information security and other particular, the environment, product quality, accidents, information security and other matters, and we are thus implementing corresponding countermeasures. matters, and we are thus implementing corresponding countermeasures. For more information For more information For more For more information information For more information For more information For more For more information information For more information For more information For more For more information information Information Information Corporate Information Corporate Information Information Information Download PDF Download PDF Corporate Information Corporate Information Site Map Site Map STRATEGIES Download PDF Download PDF STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Management Tasks Ahead Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Management Tasks Ahead Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan STRATEGIES STRATEGIES Targets Outline of the New Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection Strategies Targets Review of the Previous Mid-range Management Plan Review of the Previous Mid-range Management Plan Strategies Management Tasks Ahead Management Tasks Ahead Growth Strategies Based on Innovation Start of the New Mid-range Management Plan Start of the New Mid-range Management Plan Growth Strategies Based on Innovation GEMBA Report: Moving forward with customers: Reporting from a jobsite of Outline of the New Mid-range Management Plan Outline of the New Mid-range Management Plan SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of Targets Targets Growth Strategies of Existing Businesses SMARTCONSTRUCTION Strategies Strategies Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies Based on Innovation Growth Strategies Based on Innovation Structural Reforms Designed to Reinforce the Business Foundation GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Report: Moving forward with customers: Reporting from a jobsite of For further details, please click here SMARTCONSTRUCTION SMARTCONSTRUCTION Growth Strategies of Existing Businesses Growth Strategies of Existing Businesses Financial conditions: For further details, please click here Securities Report GEMBA Reports: Reinforcing GEMBA Efforts in Asia GEMBA Reports: Reinforcing GEMBA Efforts in Asia Financial conditions: Securities Report Social activities: CSR report Social activities: CSR report Structural Reforms Designed to Reinforce the Business Foundation Structural Reforms Designed to Reinforce the Business Foundation Site Map Site Map MANAGEMENT MANAGEMENT To All Our Stakeholders FY2015 Performance To All Our Stakeholders Way ESG MANAGEMENT MANAGEMENT ESG ESG (Sustainability) To All Our Stakeholders To All Our Stakeholders Environmental Indexes ESG (Sustainability) FY2015 Performance FY2015 Performance Management Principle and The KOMATSU FY2015 Performance Way Management Principle and The KOMATSU Environmental Indexes Corporate Governance, Compliance and Management Principle and The KOMATSU Management Principle and The KOMATSU Risk Management Way Way Corporate Governance, Compliance and Site Map Download PDF Corporate Governance, Compliance and Corporate Governance, Compliance and Risk Management INFORMATION ESG ESG INFORMATION Corporate Information ESG (Sustainability) ESG (Sustainability) Download PDF Corporate Information Environmental Indexes Environmental Indexes Risk Management Risk Management Site Map INFORMATION INFORMATION Environmental performance: Corporate Information Corporate Information Environmental Report Download PDF Environmental performance: Download PDF Environmental Report Site Map Site Map Copyright © 2016 Komatsu Ltd. All rights reserved For further details, please click here For further details, please click here Copyright © 2016 Komatsu Ltd. All rights reserved Financial conditions: Financial conditions: Securities Report Securities Report Social activities: Social activities: CSR report CSR report Environmental performance: Environmental performance: Environmental Report Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Print Japanese Download PDF Print Download PDF KOMATSU REPORT 2016 Growth Strategies Based on Innovation KOMATSU REPORT 2016 KOMATSU REPORT 2016 Growth Strategies Based on Innovation MANAGEMENT STRATEGIES ESG INFORMATION Outline of the New Mid-range Management Plan [Growth Strategies Based on Innovation] 09 GROWTH STRATEGIES BASED ON INNOVATION To create innovation, we will continue to develop DANTOTSU products, DANTOTSU service and DANTOTSU solutions based on our proprietary competitive manufacturing aimed at Quality and Reliability. We will also actuate innovation, by To create innovation, we will continue to develop DANTOTSU products, DANTOTSU service and DANTOTSU solutions proactively incorporating technologies, which we cannot obtain in the Komatsu Group, through industrial-academic and based on our proprietary competitive manufacturing aimed at Quality and Reliability. We will also actuate innovation, by industrial-industrial collaborations. proactively incorporating technologies, which we cannot obtain in the Komatsu Group, through industrial-academic and In the construction, mining and utility equipment business, to substantially improve safety, environmental friendliness industrial-industrial collaborations. and productivity of customers' jobsite operations, we will develop and launch next-generation equipment which will In the construction, mining and utility equipment business, to substantially improve safety, environmental friendliness achieve further automation and unmanned operation by means of cutting-edge ICT utilization. At the same time, we will and productivity of customers' jobsite operations, we will develop and launch next-generation equipment which will also work to develop next-generation components and mount them on new products, including forklift trucks. achieve further automation and unmanned operation by means of cutting-edge ICT utilization. At the same time, we will To thoroughly (cid:108)visualize(cid:122) machine and jobsite operations, which is indispensable for improvement of jobsite operations, also work to develop next-generation components and mount them on new products, including forklift trucks. we will not only further advance KOMTRA(cid:57) versions but also develop and provide a platform where we can share all To thoroughly (cid:108)visualize(cid:122) machine and jobsite operations, which is indispensable for improvement of jobsite operations, information about construction and mining jobsites. we will not only further advance KOMTRA(cid:57) versions but also develop and provide a platform where we can share all information about construction and mining jobsites. GEM(cid:35)(cid:34) Report Sunagogumi Co., Ltd. GEM(cid:35)(cid:34) Report Sunagogumi Co., Ltd. Mr. Kondo, Junior Managing Director Mr. Kondo, Junior Mr. Chiba, Manager Managing Director Mr. Sato, Manager Mr. Chiba, Manager Mr. (cid:41)irogami, Deputy Mr. Sato, Manager General Manager Mr. (cid:41)irogami, Deputy General Manager See pages 12-15. Our two DANTOTSU solutions, namely SMARTCONSTRUCTION for construction jobsites and Autonomous (cid:41)aulage System (A(cid:41)S) for mining jobsites, are designed to contribute to solving problems of customers' jobsite operations by Our two DANTOTSU solutions, namely SMARTCONSTRUCTION for construction jobsites and Autonomous (cid:41)aulage taking advantage of (cid:108)visualized(cid:122) information. We will nurture the growth of these two solution models by further System (A(cid:41)S) for mining jobsites, are designed to contribute to solving problems of customers' jobsite operations by improving our service content and expanding the areas and scale of their deployment. taking advantage of (cid:108)visualized(cid:122) information. We will nurture the growth of these two solution models by further In February 2015, we embarked on SMARTCONSTRUCTION, a solutions business designed to bring about very safe improving our service content and expanding the areas and scale of their deployment. and productive (cid:108)construction jobsites of the future(cid:122) by connecting all information on the jobsites via ICT. In October, we In February 2015, we embarked on SMARTCONSTRUCTION, a solutions business designed to bring about very safe equipped our PC200i hydraulic excavator with a stereo camera which performs high-speed, high-precision photography and productive (cid:108)construction jobsites of the future(cid:122) by connecting all information on the jobsites via ICT. In October, we of jobsites. Photographic data are captured into KomConnect in about 30 seconds, where they are analyzed as image equipped our PC200i hydraulic excavator with a stereo camera which performs high-speed, high-precision photography data. Accordingly, contractors can accurately manage jobsite topology after work, which includes the areas where of jobsites. Photographic data are captured into KomConnect in about 30 seconds, where they are analyzed as image manual labor or non ICT-intensive machines were deployed. As the PC200i, equipped with the world's first site survey data. Accordingly, contractors can accurately manage jobsite topology after work, which includes the areas where function, plays the role of a (cid:108)control tower(cid:122) of jobsite operations, enabling the understanding of the entire jobsite manual labor or non ICT-intensive machines were deployed. As the PC200i, equipped with the world's first site survey operations, we would like to realize safe and smart jobsite operations of the future. function, plays the role of a (cid:108)control tower(cid:122) of jobsite operations, enabling the understanding of the entire jobsite In the industrial machinery and others business, we will operations, we would like to realize safe and smart jobsite operations of the future. promote in-house production of key components of In the industrial machinery and others business, we will machine tools as well as sheet-metal and press machines, promote in-house production of key components of while developing DANTOTSU products which will feature machine tools as well as sheet-metal and press machines, outstanding productivity. GIGAP(cid:41)OTON INC. will work to while developing DANTOTSU products which will feature commercialize cutting-edge Extreme Ultraviolet (EU(cid:55)) outstanding productivity. GIGAP(cid:41)OTON INC. will work to light sources used for lithography tools in the near commercialize cutting-edge Extreme Ultraviolet (EU(cid:55)) future. light sources used for lithography tools in the near future. STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection STRATEGIES Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Management Tasks Ahead Review of the Previous Mid-range Management Plan Our Surrounding Environment and Tasks Management Tasks Ahead Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan Targets Outline of the New Mid-range Management Plan Strategies Targets Strategies Growth Strategies Based on Innovation GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies of Existing Businesses SMARTCONSTRUCTION GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here For further details, please click here Financial conditions: Securities Report Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved MANAGEMENT To All Our Stakeholders MANAGEMENT FY2015 Performance To All Our Stakeholders Management Principle and The KOMATSU FY2015 Performance Management Principle and The KOMATSU Way Way ESG ESG (Sustainability) ESG Environmental Indexes ESG (Sustainability) Corporate Governance, Compliance and Environmental Indexes Risk Management Corporate Governance, Compliance and Risk Management Corporate Information Information Corporate Information Download PDF Information Site Map Download PDF Site Map Japanese Japanese Download PDF Print Print Download PDF KOMATSU REPORT 2016 Growth Strategies of Existing Businesses KOMATSU REPORT 2016 Growth Strategies of Existing Businesses KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Outline of the New Mid-range Management Plan [Growth Strategies of Existing Businesses] 10 In addition to developing, producing and selling new GROWTH STRATEGIES OF EXISTING BUSINESSES products in our existing businesses, we will expand our In addition to developing, producing and selling new entire value chain, mainly consisting of the after-market products in our existing businesses, we will expand our business and the rental-to-used equipment business by entire value chain, mainly consisting of the after-market strengthening business, including mergers and business and the rental-to-used equipment business by acquisitions. In FY2015, we acquired a distributor in strengthening business, including mergers and Mexico, which I have mentioned earlier, as well as acquisitions. In FY2015, we acquired a distributor in Lehnhoff (cid:41)artstahl Gmb(cid:41), a leading manufacturer of Mexico, which I have mentioned earlier, as well as attachments in Germany. We will continue to expand Lehnhoff (cid:41)artstahl Gmb(cid:41), a leading manufacturer of this value chain into the future. attachments in Germany. We will continue to expand GEM(cid:35)(cid:34) Reports Reinforcing GEMBA Efforts in Asia GEM(cid:35)(cid:34) Reports Reinforcing GEMBA Efforts in Asia Ahmad Fauzi Sucipto Technical Advisor, Manila Service Support Center, Ahmad Fauzi Sucipto Komatsu Ltd. Technical Advisor, Manila Service Support Center, Rudi Kurnianto Komatsu Ltd. President Director Rudi Kurnianto PT Komatsu Reman Indonesia (KRI) President Director PT Komatsu Reman Indonesia (KRI) With respect to development of new products, while emphasizing the development of DANTOTSU products, we will this value chain into the future. work to develop latest emission regulation-compatible models for advanced countries, as well as local needs-tailored With respect to development of new products, while emphasizing the development of DANTOTSU products, we will models for emerging countries. We will also work to develop application-specific models, such as dredging, demolition, work to develop latest emission regulation-compatible models for advanced countries, as well as local needs-tailored industrial waste processing and agricultural engineering. In the forklift truck business, we will focus efforts to broaden models for emerging countries. We will also work to develop application-specific models, such as dredging, demolition, the range of new FE series electric models and F(cid:41) series of hydrostatic transmission-drive engine models. industrial waste processing and agricultural engineering. In the forklift truck business, we will focus efforts to broaden See pages 16-20. In an effort to solidly establish the DANTOTSU No. 1 market the range of new FE series electric models and F(cid:41) series of hydrostatic transmission-drive engine models. position in Asia, we will establish a training center in Thailand and a In an effort to solidly establish the DANTOTSU No. 1 market development center in Indonesia, where we will make more effort to position in Asia, we will establish a training center in Thailand and a develop human resources of our distributors and develop local development center in Indonesia, where we will make more effort to needs-tailored products, respectively. develop human resources of our distributors and develop local We will also focus our efforts on the aggregate and cement needs-tailored products, respectively. industries, where we will be able to capitalize on our solutions know- We will also focus our efforts on the aggregate and cement how gained in the construction and mining industries. By helping industries, where we will be able to capitalize on our solutions know- customers solve their jobsite problems, we will enhance our position how gained in the construction and mining industries. By helping in these industries. customers solve their jobsite problems, we will enhance our position In the forest machine business, in addition to improving our in these industries. product and attachment offerings, we will provide forestry jobsite In the forest machine business, in addition to improving our solutions, which include the establishment and growth of forests in product and attachment offerings, we will provide forestry jobsite addition to felling. solutions, which include the establishment and growth of forests in addition to felling. (cid:55)alue of chain (conceptual) of construction equipment (cid:55)alue of chain (conceptual) of construction equipment STRATEGIES STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Management Tasks Ahead Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Management Tasks Ahead Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Targets Strategies Growth Strategies Based on Innovation GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies of Existing Businesses SMARTCONSTRUCTION GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Our forest machine in operation in Brazil Our forest machine in operation in Brazil MANAGEMENT To All Our Stakeholders MANAGEMENT FY2015 Performance To All Our Stakeholders Management Principle and The KOMATSU FY2015 Performance Way Management Principle and The KOMATSU Corporate Governance, Compliance and Environmental Indexes Risk Management Corporate Governance, Compliance and ESG Way ESG ESG (Sustainability) Environmental Indexes ESG (Sustainability) Information Risk Management Corporate Information Information Download PDF Corporate Information Site Map Download PDF Site Map Financial conditions: For further details, please click here Securities Report Financial conditions: Securities Report Social activities: CSR report Social activities: CSR report Environmental performance: Environmental Report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Print Download PDF Japanese Print Download PDF MANAGEMENT STRATEGIES ESG INFORMATION KOMATSU REPORT 2016 KOMATSU REPORT 2016 Structural Reforms Designed to Reinforce the Business Foundation Outline of the New Mid-range Management Plan [Structural Reforms Designed to Reinforce the Business Foundation] 11 KOMATSU REPORT 2016 STRUCTURAL REFORMS DESIGNED TO REINFORCE THE BUSINESS FOUNDATION Structural Reforms Designed to Reinforce the Business Foundation By defining structural reforms as a means to reinforce our business foundation, we have continuously worked to curb production costs and sustain fixed costs at appropriate levels. We consider these efforts our never-ending task. While we need to invest for growth as needed, we also need to unfailingly cut down production costs at the same time. This is what we mean by separation of costs from growth. To this end, we are striving to maintain our fixed costs at appropriate levels. In the structural reforms designed to reinforce our business foundation, we have not only carried out necessary reforms even when demand remained sluggish, but also made continuous efforts to improve costs in the last few years. By defining structural reforms as a means to reinforce our business foundation, we have continuously worked to curb We reduced fixed costs by JPY12.5 billion in three years from FY2013 to FY2015 by absorbing an increase of the basic production costs and sustain fixed costs at appropriate levels. We consider these efforts our never-ending task. salaries and including the effects of structural reforms. In FY2015 alone, we cut down fixed costs as planned and made While we need to invest for growth as needed, we also need to unfailingly cut down production costs at the same an addition reduction, achieving a reduction of JPY11.9 billion from FY2014. time. This is what we mean by separation of costs from growth. To this end, we are striving to maintain our fixed costs at appropriate levels. In the structural reforms designed to reinforce our business foundation, we have not only carried out necessary reforms even when demand remained sluggish, but also made continuous efforts to improve costs in the last few years. We reduced fixed costs by JPY12.5 billion in three years from FY2013 to FY2015 by absorbing an increase of the basic salaries and including the effects of structural reforms. In FY2015 alone, we cut down fixed costs as planned and made an addition reduction, achieving a reduction of JPY11.9 billion from FY2014. Concerning development, we should be able to lower costs by adopting new measurement and simulation technologies. All in all, we are concerting efforts to make our development lean and powerful. With respect to production as well, we are accelerating the speed of connecting our production jobsites, networking not only manufacturing plants of the Komatsu Group worldwide, but also our suppliers, in order to promote production reforms. We are also stepping up our efforts to link our plants directly to marketplace, end-customers and distributors in order to accelerate the speed of delivering our products and parts and further enhance the level of our inventories. Concerning development, we should be able to lower costs by adopting new measurement and simulation technologies. All in all, we are concerting efforts to make our development lean and powerful. With respect to production as well, we are accelerating the speed of connecting our production jobsites, networking not only manufacturing plants of the Komatsu Group worldwide, but also our suppliers, in order to promote production reforms. We are also stepping up our efforts to link our plants directly to marketplace, end-customers and distributors in order STRATEGIES MANAGEMENT to accelerate the speed of delivering our products and parts and further enhance the level of our inventories. Summary of the Last Three Years and Mid to Long-range Projection To All Our Stakeholders Review of the Previous Mid-range Management Plan FY2015 Performance Management Tasks Ahead Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan STRATEGIES Targets Summary of the Last Three Years and Mid to Long-range Projection Strategies Review of the Previous Mid-range Management Plan Growth Strategies Based on Innovation Management Tasks Ahead GEMBA Report: Moving forward with customers: Reporting from a jobsite of Our Surrounding Environment and Tasks SMARTCONSTRUCTION Start of the New Mid-range Management Plan Growth Strategies of Existing Businesses Outline of the New Mid-range Management Plan GEMBA Reports: Reinforcing GEMBA Efforts in Asia Targets Structural Reforms Designed to Reinforce the Business Foundation Strategies Growth Strategies Based on Innovation For further details, please click here GEMBA Report: Moving forward with customers: Reporting from a jobsite of Financial conditions: SMARTCONSTRUCTION Securities Report Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Copyright © 2016 Komatsu Ltd. All rights reserved Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Management Principle and The KOMATSU Way ESG ESG (Sustainability) MANAGEMENT Environmental Indexes To All Our Stakeholders Corporate Governance, Compliance and Risk Management FY2015 Performance Management Principle and The KOMATSU Corporate Information Way Information ESG Download PDF ESG (Sustainability) Site Map Environmental Indexes Corporate Governance, Compliance and Risk Management Corporate Information Information Download PDF Site Map KOMATSU REPORT 2016 KOMATSU REPORT 2016 KOMATSU REPORT 2016 KOMATSU REPORT 2016 Growth Strategies Based on Innovation Growth Strategies Based on Innovation Growth Strategies Based on Innovation Japanese Japanese Print Print Download PDF Japanese Download PDF Print Download PDF Moving forward with customers: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION Reporting from a jobsite of SMARTCONSTRUCTION Moving forward with customers: STRATEGIES ESG MANAGEMENT INFORMATION Reporting from a jobsite of SMARTCONSTRUCTION Outline of the New Mid-range Management Plan > Gemba Report 12 <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< GEMBA REPORT >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and providing new values designed to improve jobsite safety and productivity as a basic management strategy. We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). providing new values designed to improve jobsite safety and productivity as a basic management strategy. providing new values designed to improve jobsite safety and productivity as a basic management strategy. It is designed to connect all information about jobsites on KomConnect, a cloud platform of SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, It is designed to connect all information about jobsites on KomConnect, a cloud platform of It is designed to connect all information about jobsites on KomConnect, a cloud platform of and operating conditions of intelligent Machine Control construction equipment capable of automatic control of SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making and operating conditions of intelligent Machine Control construction equipment capable of automatic control of and operating conditions of intelligent Machine Control construction equipment capable of automatic control of real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION through full use of machine functions. achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have through full use of machine functions. through full use of machine functions. deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. Looking into the future of construction and civil engineering industries Looking into the future of construction and civil engineering industries Looking into the future of construction and civil engineering industries Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of construction. related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive construction. questions centered on machine performance and costs in the beginning, they have recently changed to more technical Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' questions centered on machine performance and costs in the beginning, they have recently changed to more technical Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the questions centered on machine performance and costs in the beginning, they have recently changed to more technical matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly construction. into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. Mr. Kondo, Junior Managing Director Mr. Kondo, Junior Managing Director Developing human resources through new technologies Mr. Kondo, Junior Managing Director Developing human resources through new technologies As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, Developing human resources through new technologies As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, develop them.(cid:122) As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, develop them.(cid:122) a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study develop them.(cid:122) start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as construction will play the role of a human resource development by offering a variety of opportunities for a diverse start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, construction will play the role of a human resource development by offering a variety of opportunities for a diverse KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to expecting the civil engineering industry to become an industry where females enjoy working. range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive expecting the civil engineering industry to become an industry where females enjoy working. construction will play the role of a human resource development by offering a variety of opportunities for a diverse range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, expecting the civil engineering industry to become an industry where females enjoy working. On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Mr. Chiba, Manager Mr. Chiba, Manager By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site Mr. Chiba, Manager Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of more accurate on the jobsites by using 3-D drawings.(cid:122) (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji more accurate on the jobsites by using 3-D drawings.(cid:122) (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for engineering work, i.e., Dirty, Dangerous and Demanding. SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil more accurate on the jobsites by using 3-D drawings.(cid:122) engineering work, i.e., Dirty, Dangerous and Demanding. With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil engineering work, i.e., Dirty, Dangerous and Demanding. Mr. Sato, Manager Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager Mr. (cid:41)irogami, Deputy General Manager Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager In the making of a (cid:108)future(cid:122) together In the making of a (cid:108)future(cid:122) together Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the blade edge is very effective, we are still far from understanding the entire progress of construction which includes work (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of blade edge is very effective, we are still far from understanding the entire progress of construction which includes work In the making of a (cid:108)future(cid:122) together work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. blade edge is very effective, we are still far from understanding the entire progress of construction which includes work The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work improve the productivity of jobsite operations.(cid:122) Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable improve the productivity of jobsite operations.(cid:122) for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to improve the productivity of jobsite operations.(cid:122) STRATEGIES STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Management Tasks Ahead Review of the Previous Mid-range Management Plan Our Surrounding Environment and Tasks Management Tasks Ahead Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Targets STRATEGIES Strategies Growth Strategies Based on Innovation Summary of the Last Three Years and Mid to Long-range Projection GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation Review of the Previous Mid-range Management Plan SMARTCONSTRUCTION Growth Strategies of Existing Businesses Management Tasks Ahead SMARTCONSTRUCTION GEMBA Reports: Reinforcing GEMBA Efforts in Asia Our Surrounding Environment and Tasks Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation Start of the New Mid-range Management Plan GEMBA Reports: Reinforcing GEMBA Efforts in Asia Outline of the New Mid-range Management Plan Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Targets Strategies Financial conditions: For further details, please click here Securities Report Growth Strategies Based on Innovation Securities Report Financial conditions: Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved MANAGEMENT To All Our Stakeholders MANAGEMENT FY2015 Performance To All Our Stakeholders ESG Way ESG ESG (Sustainability) Environmental Indexes ESG (Sustainability) Management Principle and The KOMATSU FY2015 Performance Way Management Principle and The KOMATSU Corporate Governance, Compliance and Environmental Indexes Risk Management Corporate Governance, Compliance and MANAGEMENT Corporate Information Management Principle and The KOMATSU Corporate Information Risk Management To All Our Stakeholders Corporate Information Corporate Information FY2015 Performance Download PDF Site Map Way Download PDF Site Map ESG ESG (Sustainability) Environmental Indexes Corporate Governance, Compliance and Risk Management Corporate Information Download PDF Site Map GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Corporate Information Japanese Print Download PDF Japanese Print Download PDF KOMATSU REPORT 2016 Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION Japanese KOMATSU REPORT 2016 Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION Moving forward with customers: Moving forward with customers: Print Download PDF Japanese Print Download PDF KOMATSU REPORT 2016 Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION Moving forward with customers: KOMATSU REPORT 2016 Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION Moving forward with customers: We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and providing new values designed to improve jobsite safety and productivity as a basic management strategy. We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). providing new values designed to improve jobsite safety and productivity as a basic management strategy. It is designed to connect all information about jobsites on KomConnect, a cloud platform of SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, and operating conditions of intelligent Machine Control construction equipment capable of automatic control of It is designed to connect all information about jobsites on KomConnect, a cloud platform of SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and providing new values designed to improve jobsite safety and productivity as a basic management strategy. and operating conditions of intelligent Machine Control construction equipment capable of automatic control of real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity providing new values designed to improve jobsite safety and productivity as a basic management strategy. SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). It is designed to connect all information about jobsites on KomConnect, a cloud platform of through full use of machine functions. real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have It is designed to connect all information about jobsites on KomConnect, a cloud platform of and operating conditions of intelligent Machine Control construction equipment capable of automatic control of through full use of machine functions. deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making and operating conditions of intelligent Machine Control construction equipment capable of automatic control of We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION through full use of machine functions. achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity Looking into the future of construction and civil engineering industries through full use of machine functions. We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have Looking into the future of construction and civil engineering industries deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of Looking into the future of construction and civil engineering industries intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of Looking into the future of construction and civil engineering industries construction. Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- construction. questions centered on machine performance and costs in the beginning, they have recently changed to more technical Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of questions centered on machine performance and costs in the beginning, they have recently changed to more technical intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the construction. Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. construction. questions centered on machine performance and costs in the beginning, they have recently changed to more technical into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. questions centered on machine performance and costs in the beginning, they have recently changed to more technical matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches MANAGEMENT STRATEGIES ESG civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly KOMATSU REPORT 2016 INFORMATION Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. Outline of the New Mid-range Management Plan > Gemba Report 13 Mr. Kondo, Junior Managing Director Developing human resources through new technologies Mr. Kondo, Junior Managing Director Please refer to Online Komatsu Report. [Interview (45 seconds)] Summary Rather than construction equipment itself, a system like KomConnect is important to incite innovation of construction jobsite operations. That’s why we would like to make joint efforts with Komatsu to im- prove jobsite operations in order to create a bright future of the construction indus- try. This is what I always feel about our work, and with this feeling we have done business with Komatsu over the years. As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate Developing human resources through new technologies and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and Mr. Kondo, Junior Managing Director Mr. Kondo, Junior Managing Director and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, develop them.(cid:122) Developing human resources through new technologies resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as develop them.(cid:122) a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study Developing human resources through new technologies KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to construction will play the role of a human resource development by offering a variety of opportunities for a diverse and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and develop them.(cid:122) Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as construction will play the role of a human resource development by offering a variety of opportunities for a diverse expecting the civil engineering industry to become an industry where females enjoy working. develop them.(cid:122) a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to expecting the civil engineering industry to become an industry where females enjoy working. a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to construction will play the role of a human resource development by offering a variety of opportunities for a diverse start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, construction will play the role of a human resource development by offering a variety of opportunities for a diverse expecting the civil engineering industry to become an industry where females enjoy working. range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, expecting the civil engineering industry to become an industry where females enjoy working. On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Mr. Chiba, Manager Mr. Chiba, Manager By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site Mr. Chiba, Manager survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) Mr. Chiba, Manager By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing more accurate on the jobsites by using 3-D drawings.(cid:122) calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because more accurate on the jobsites by using 3-D drawings.(cid:122) (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become engineering work, i.e., Dirty, Dangerous and Demanding. previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become more accurate on the jobsites by using 3-D drawings.(cid:122) engineering work, i.e., Dirty, Dangerous and Demanding. more accurate on the jobsites by using 3-D drawings.(cid:122) With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil engineering work, i.e., Dirty, Dangerous and Demanding. engineering work, i.e., Dirty, Dangerous and Demanding. Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager In the making of a (cid:108)future(cid:122) together In the making of a (cid:108)future(cid:122) together Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer In the making of a (cid:108)future(cid:122) together viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the blade edge is very effective, we are still far from understanding the entire progress of construction which includes work In the making of a (cid:108)future(cid:122) together (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of blade edge is very effective, we are still far from understanding the entire progress of construction which includes work work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the blade edge is very effective, we are still far from understanding the entire progress of construction which includes work for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) blade edge is very effective, we are still far from understanding the entire progress of construction which includes work We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. improve the productivity of jobsite operations.(cid:122) incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) improve the productivity of jobsite operations.(cid:122) We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to improve the productivity of jobsite operations.(cid:122) improve the productivity of jobsite operations.(cid:122) Summary of the Last Three Years and Mid to Long-range Projection Management Tasks Ahead To All Our Stakeholders Management Principle and The KOMATSU STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection STRATEGIES Review of the Previous Mid-range Management Plan MANAGEMENT To All Our Stakeholders MANAGEMENT FY2015 Performance Way FY2015 Performance ESG Management Principle and The KOMATSU MANAGEMENT To All Our Stakeholders Way ESG (Sustainability) ESG MANAGEMENT Environmental Indexes FY2015 Performance Management Principle and The KOMATSU Risk Management Environmental Indexes FY2015 Performance Review of the Previous Mid-range Management Plan Our Surrounding Environment and Tasks Management Tasks Ahead Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Outline of the New Mid-range Management Plan STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Start of the New Mid-range Management Plan STRATEGIES Targets Review of the Previous Mid-range Management Plan Management Tasks Ahead Growth Strategies Based on Innovation Targets Review of the Previous Mid-range Management Plan Strategies Management Tasks Ahead Strategies Outline of the New Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection ESG (Sustainability) Corporate Governance, Compliance and To All Our Stakeholders Our Surrounding Environment and Tasks GEMBA Report: Moving forward with customers: Reporting from a jobsite of Start of the New Mid-range Management Plan Growth Strategies Based on Innovation Our Surrounding Environment and Tasks SMARTCONSTRUCTION Way ESG Outline of the New Mid-range Management Plan GEMBA Report: Moving forward with customers: Reporting from a jobsite of ESG (Sustainability) Start of the New Mid-range Management Plan Growth Strategies of Existing Businesses Way Risk Management Corporate Information Corporate Information Download PDF ESG Outline of the New Mid-range Management Plan SMARTCONSTRUCTION GEMBA Reports: Reinforcing GEMBA Efforts in Asia Targets Strategies Targets Strategies Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Site Map Corporate Information ESG (Sustainability) Environmental Indexes Corporate Governance, Compliance and Download PDF Environmental Indexes Risk Management Site Map Corporate Governance, Compliance and Corporate Information Corporate Governance, Compliance and Management Principle and The KOMATSU Growth Strategies Based on Innovation Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Growth Strategies Based on Innovation GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of Financial conditions: Corporate Information Corporate Information SMARTCONSTRUCTION Securities Report For further details, please click here Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Securities Report Growth Strategies of Existing Businesses Financial conditions: Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Risk Management Corporate Information Corporate Information Download PDF Download PDF Site Map Copyright © 2016 Komatsu Ltd. All rights reserved Site Map Structural Reforms Designed to Reinforce the Business Foundation Copyright © 2016 Komatsu Ltd. All rights reserved For further details, please click here For further details, please click here Financial conditions: Securities Report Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Print Download PDF Japanese Japanese Print Print Download PDF Download PDF KOMATSU REPORT 2016 Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION KOMATSU REPORT 2016 KOMATSU REPORT 2016 Growth Strategies Based on Innovation Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION Reporting from a jobsite of SMARTCONSTRUCTION Moving forward with customers: Moving forward with customers: Moving forward with customers: We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and providing new values designed to improve jobsite safety and productivity as a basic management strategy. We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). providing new values designed to improve jobsite safety and productivity as a basic management strategy. providing new values designed to improve jobsite safety and productivity as a basic management strategy. It is designed to connect all information about jobsites on KomConnect, a cloud platform of SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, It is designed to connect all information about jobsites on KomConnect, a cloud platform of It is designed to connect all information about jobsites on KomConnect, a cloud platform of and operating conditions of intelligent Machine Control construction equipment capable of automatic control of SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making and operating conditions of intelligent Machine Control construction equipment capable of automatic control of and operating conditions of intelligent Machine Control construction equipment capable of automatic control of real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION through full use of machine functions. achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have through full use of machine functions. through full use of machine functions. deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. Looking into the future of construction and civil engineering industries Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- Looking into the future of construction and civil engineering industries Looking into the future of construction and civil engineering industries engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of construction. related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' construction. construction. questions centered on machine performance and costs in the beginning, they have recently changed to more technical Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. questions centered on machine performance and costs in the beginning, they have recently changed to more technical questions centered on machine performance and costs in the beginning, they have recently changed to more technical Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. Mr. Kondo, Junior Managing Director Mr. Kondo, Junior Managing Director Mr. Kondo, Junior Managing Director Developing human resources through new technologies As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate Developing human resources through new technologies Developing human resources through new technologies and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, develop them.(cid:122) resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as develop them.(cid:122) develop them.(cid:122) a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to construction will play the role of a human resource development by offering a variety of opportunities for a diverse start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, construction will play the role of a human resource development by offering a variety of opportunities for a diverse construction will play the role of a human resource development by offering a variety of opportunities for a diverse expecting the civil engineering industry to become an industry where females enjoy working. range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, expecting the civil engineering industry to become an industry where females enjoy working. expecting the civil engineering industry to become an industry where females enjoy working. On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 KOMATSU REPORT 2016 meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Outline of the New Mid-range Management Plan > Gemba Report MANAGEMENT INFORMATION STRATEGIES ESG 14 Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Please refer to Online Komatsu Report. [Interview (1 minute and 30 seconds)] Summary With Komatsu and Komatsu Rental, I have been exchanging a wide range of opinions concerning KomConnect as well. I have often mentioned something like, if we could do such and such, it would be great for us. Our opinions are solely based on our perspective as a contractor, so I ful- ly understand all of them will be adopted. However, if some of them can improve our jobsite operations, I would like to ask Komatsu to proactive- ly consider them and respond more quickly. Mr. Chiba, Manager Mr. Chiba, Manager Mr. Chiba, Manager By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of more accurate on the jobsites by using 3-D drawings.(cid:122) With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become more accurate on the jobsites by using 3-D drawings.(cid:122) more accurate on the jobsites by using 3-D drawings.(cid:122) (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil engineering work, i.e., Dirty, Dangerous and Demanding. engineering work, i.e., Dirty, Dangerous and Demanding. engineering work, i.e., Dirty, Dangerous and Demanding. Please refer to Online Komatsu Report. [Interview (22 seconds)] Summary When planning day’s work or inspection, we have previously used conventional 2D drawings, resulting in my poor instructions sometimes. Today, thanks to 3D drawings, I feel that my instructions are much better understood by workers on the jobsites. Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager Mr. Sato, Manager Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager Mr. (cid:41)irogami, Deputy General Manager In the making of a (cid:108)future(cid:122) together In the making of a (cid:108)future(cid:122) together In the making of a (cid:108)future(cid:122) together Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the blade edge is very effective, we are still far from understanding the entire progress of construction which includes work (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of blade edge is very effective, we are still far from understanding the entire progress of construction which includes work blade edge is very effective, we are still far from understanding the entire progress of construction which includes work work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. improve the productivity of jobsite operations.(cid:122) Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to improve the productivity of jobsite operations.(cid:122) improve the productivity of jobsite operations.(cid:122) STRATEGIES MANAGEMENT Summary of the Last Three Years and Mid to Long-range Projection STRATEGIES STRATEGIES To All Our Stakeholders MANAGEMENT MANAGEMENT Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection FY2015 Performance To All Our Stakeholders To All Our Stakeholders Management Tasks Ahead Review of the Previous Mid-range Management Plan Review of the Previous Mid-range Management Plan Management Principle and The KOMATSU FY2015 Performance FY2015 Performance Our Surrounding Environment and Tasks Management Tasks Ahead Management Tasks Ahead Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Our Surrounding Environment and Tasks Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation Targets Targets Strategies Strategies Way ESG ESG (Sustainability) Environmental Indexes Management Principle and The KOMATSU Management Principle and The KOMATSU Way Way ESG ESG ESG (Sustainability) ESG (Sustainability) Corporate Governance, Compliance and Environmental Indexes Environmental Indexes Risk Management Corporate Governance, Compliance and Corporate Governance, Compliance and Risk Management Risk Management GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation Growth Strategies Based on Innovation SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Report: Moving forward with customers: Reporting from a jobsite of Download PDF Growth Strategies of Existing Businesses SMARTCONSTRUCTION SMARTCONSTRUCTION GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia GEMBA Reports: Reinforcing GEMBA Efforts in Asia Corporate Information Corporate Information Site Map Structural Reforms Designed to Reinforce the Business Foundation Structural Reforms Designed to Reinforce the Business Foundation Corporate Information Corporate Information Corporate Information Corporate Information Download PDF Download PDF Site Map Site Map For further details, please click here Financial conditions: Securities Report For further details, please click here For further details, please click here Financial conditions: Financial conditions: Securities Report Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Print Japanese Download PDF Print Download PDF KOMATSU REPORT 2016 Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION KOMATSU REPORT 2016 Growth Strategies Based on Innovation Japanese Reporting from a jobsite of SMARTCONSTRUCTION Moving forward with customers: Moving forward with customers: Print Download PDF KOMATSU REPORT 2016 Growth Strategies Based on Innovation Reporting from a jobsite of SMARTCONSTRUCTION Moving forward with customers: We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and providing new values designed to improve jobsite safety and productivity as a basic management strategy. We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). providing new values designed to improve jobsite safety and productivity as a basic management strategy. It is designed to connect all information about jobsites on KomConnect, a cloud platform of SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, It is designed to connect all information about jobsites on KomConnect, a cloud platform of and operating conditions of intelligent Machine Control construction equipment capable of automatic control of SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making and operating conditions of intelligent Machine Control construction equipment capable of automatic control of real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION through full use of machine functions. achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have through full use of machine functions. deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have We at Komatsu define growth by innovating customers' jobsite operations together with them and creating and providing new values designed to improve jobsite safety and productivity as a basic management strategy. SMARTCONSTRUCTION is one of these (cid:108)growth strategies based on innovation(cid:122). It is designed to connect all information about jobsites on KomConnect, a cloud platform of SMARTCONSTRUCTION. Information includes high-speed, high-precision site survey data made possible by drones, and operating conditions of intelligent Machine Control construction equipment capable of automatic control of deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. bulldozers' blades and hydraulic excavators' buckets. In addition to developing optimal construction plans and making real-time progress of construction (cid:108)visible(cid:122) by utilizing the functions of KomConnect, SMARTCONSTRUCTION achieves safe and (cid:108)smart(cid:122) jobsite operations of the future by dynamically improving jobsite safety and productivity through full use of machine functions. Looking into the future of construction and civil engineering industries Looking into the future of construction and civil engineering industries Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- We embarked on the market introduction of SMARTCONSTRUCTION in Japan in February 2015, and have deployed it at over 1,100 construction and civil engineering sites on a cumulative basis as of March 2016. engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of Looking into the future of construction and civil engineering industries related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' construction. construction. Sunagogumi Co., Ltd. ((cid:41)ead O(cid:9359)ce: Sorachi District, (cid:41)okkaido. President: Mr. Kunihiro Sunago) engages in civil- engineering and construction mainly in the center of (cid:41)okkaido, Japan's northernmost prefecture, and has adopted ICT- intensive civil engineering very early in the prefecture. Furthermore, Sunagogumi is an active presenter at seminars and conventions concerning ICT-intensive construction information gained in its jobsites, in addition to routine exchange of related information. It has gained a leading presence of the industry in (cid:41)okkaido as the top runner of ICT-intensive questions centered on machine performance and costs in the beginning, they have recently changed to more technical Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. questions centered on machine performance and costs in the beginning, they have recently changed to more technical Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches construction. Sunagogumi's ICT-intensive jobsites have received many visitors from the civil engineering industry. While visitors' Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. questions centered on machine performance and costs in the beginning, they have recently changed to more technical matters, such as how to generate 3D drawings, which confirms growing interest in ICT-intensive construction. Sunagogumi adopted SMARTCONSTRUCTION last year. (cid:108)I am sure that ICT-intensive construction is the future of the civil engineering industry. There is no doubt that application of cutting-edge ICT to jobsite operation will advance rapidly into the future. Our image of the future civil engineering industry, based on this assumption, perfectly matches Komatsu's stance on SMARTCONSTRUCTION,(cid:122) confirms Mr. Satoshi Kondo, Junior Managing Director. Mr. Kondo, Junior Managing Director Mr. Kondo, Junior Managing Director Developing human resources through new technologies Developing human resources through new technologies As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, Mr. Kondo, Junior Managing Director develop them.(cid:122) resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and Developing human resources through new technologies As to the background of ICT-intensive jobsite operations, Mr. Kondo says, (cid:108)Against the backdrop of a falling birthrate and an aging population in Japan, the number of employees in Japan's civil engineering industry has been declining, resulting in a lower number of veteran machine operators. Therefore, our important task is to secure employees and Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as develop them.(cid:122) a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to construction will play the role of a human resource development by offering a variety of opportunities for a diverse start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, construction will play the role of a human resource development by offering a variety of opportunities for a diverse expecting the civil engineering industry to become an industry where females enjoy working. range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, develop them.(cid:122) Sunagogumi utilizes SMARTCONSTRUCTION to not only respond to tasks faced by the company, but also to use it as expecting the civil engineering industry to become an industry where females enjoy working. a tool for human resource development. (cid:108)I would encourage our employees, especially young ones, to try and study KomConnect. Young people are not (cid:108)allergic(cid:122) to ICT and thus are quick to get used to the system. Some are well fit to start with the system which represents virtual reality, and then understand real jobsite operations. ICT-intensive construction will play the role of a human resource development by offering a variety of opportunities for a diverse range of human resources to demonstrate their skills and grow into ICT-construction specialists,(cid:122) says Mr. Kondo, expecting the civil engineering industry to become an industry where females enjoy working. On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites On SMARTCONSTRUCTION jobsites Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Sunagogumi is using two intelligent Machine Control PC200i-10 hydraulic excavators and intelligent Machine Control P(cid:57)3(cid:24)P(cid:57)i-23, each at a highway construction site (as of the interview in June 2016). Their combined length is (cid:24)80 meters and the volume of soil to excavate is 38,600 cubic meters. The volume of soil to fill is 64,000 cubic meters. Sunagogumi is planning to deploy a vibratory roller (optional) at a part of the site. Mr. Chiba, Manager Mr. Chiba, Manager By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the Mr. Chiba, Manager calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional By the date of our interview, jobsite supervisors had pointed out positive outcomes of SMARTCONSTRUCTION, including improved speed of decision-making, thanks to information sharing, and the convenience of 3D data. (cid:108)As one of its advantages, SMARTCONSTRUCTION calculates the volume of earth to work on by comparing the site survey and completion drawings. This system is very accurate and practical,(cid:122) evaluates Mr. (cid:41)iroki Chiba, Manager of the Civil Engineering Department and Project Manager of the ICT-Intensive Construction Department. (cid:108)In the conventional calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing calculation method, we have experienced big surveying errors of complicated landscapes and sharp bends of highways.(cid:122) data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect (cid:41)e also adds, (cid:108)We can download a variety of information from KomConnect, so I have become able to use 3-D drawing also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because data when meeting with clients. When communicating with the SMARTCONSTRUCTION Support Center, KomConnect both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) also merits users. Mr. Chiba evaluates, (cid:108)When consulting with the Support Center, KomConnect is very useful, because Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of more accurate on the jobsites by using 3-D drawings.(cid:122) SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji more accurate on the jobsites by using 3-D drawings.(cid:122) (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for engineering work, i.e., Dirty, Dangerous and Demanding. about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil both parties can see the same data on the cloud platform, while talking over the phone. Communication is very smooth.(cid:122) Mr. Kazuhiko Sato, Manager of the Civil Engineering Department, has adopted 3-D drawings of SMARTCONSTRUCTION to his work. (cid:41)e points out, (cid:108)I definitely feel that my work instructions to workers have become engineering work, i.e., Dirty, Dangerous and Demanding. more accurate on the jobsites by using 3-D drawings.(cid:122) With respect to automatic excavation performance of the intelligent Machine Control hydraulic excavator, Mr. Shinji (cid:41)irogami, Deputy General Manager of the Civil Engineering Division, says, (cid:108)It is a game changer when operators with no previous experience of ditching can perform on a level comparable to veterans after training them on the PC200i for KOMATSU REPORT 2016 about half day.(cid:122) (cid:41)e also hopes that SMARTCONSTRUCTION will eradicate the conventional (cid:108)3Ds(cid:122) image of civil engineering work, i.e., Dirty, Dangerous and Demanding. MANAGEMENT STRATEGIES ESG INFORMATION Outline of the New Mid-range Management Plan > Gemba Report 15 Mr. Sato, Manager Mr. Sato, Manager Please refer to Online Komatsu Report. [Interview (53 seconds)] Summary Civil engineering has recently been referred to as 3Ds, that is, dirty, dangerous Mr. (cid:41)irogami, Deputy General Manager and demanding. About being demanding, thanks to Machine Control models, our work has become a lot less demanding. With respect to being dangerous, Mr. (cid:41)irogami, Deputy General Manager our work has also become safer, because the number of support workers has declined. About being dirty, the most representative case may be the removing of dirt stuck in the undercarriage. If this work is improved, we may be able to change the image of civil engineering. Mr. Sato, Manager Mr. (cid:41)irogami, Deputy General Manager In the making of a (cid:108)future(cid:122) together In the making of a (cid:108)future(cid:122) together Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the In the making of a (cid:108)future(cid:122) together viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the blade edge is very effective, we are still far from understanding the entire progress of construction which includes work (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of blade edge is very effective, we are still far from understanding the entire progress of construction which includes work work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will Komatsu receives a variety of requests to improve SMARTCONSTRUCTION from Sunagogumi's jobsites. From the viewpoint of promoting ICT-intensive construction in the company, Mr. Chiba also feels the need to improve the (cid:108)visualization(cid:122) of jobsite operations. (cid:41)e points out, (cid:108)While the position information of excavator bucket teeth or bulldozer incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. blade edge is very effective, we are still far from understanding the entire progress of construction which includes work by non ICT-intensive machines. (cid:41)e advocates, (cid:108)Jobsites of the future call for improvement of the entire processes of work from receiving orders to delivery. As of today, SMARTCONSTRUCTION can improve the productivity of work The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. improve the productivity of jobsite operations.(cid:122) Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to where machines are involved. That's a very small portion.(cid:122) (cid:41)e also adds, (cid:108)Improvement of KomConnect is indispensable improve the productivity of jobsite operations.(cid:122) for us to achieve the civil engineering jobsite of the future which we are projecting. I truly hope that Komatsu will incorporate jobsite opinions and ideas in a speedier manner in order to refine the system which will even surprise us.(cid:122) We have just begun taking steps toward the jobsite of the future concerning civil engineering and construction. The power to improve SMARTCONSTRUCTION and make our dream come true lies in customers' jobsite operations. Mr. Kondo concludes, (cid:108)We feed back our jobsite opinions as a contractor, because, together with Komatsu, we want to improve the productivity of jobsite operations.(cid:122) STRATEGIES STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Management Tasks Ahead Review of the Previous Mid-range Management Plan Our Surrounding Environment and Tasks Management Tasks Ahead Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan MANAGEMENT Targets Strategies Targets Strategies STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection To All Our Stakeholders Review of the Previous Mid-range Management Plan Growth Strategies Based on Innovation FY2015 Performance Management Tasks Ahead Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report GEMBA Report: Moving forward with customers: Reporting from a jobsite of Management Principle and The KOMATSU Growth Strategies Based on Innovation SMARTCONSTRUCTION Way GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies of Existing Businesses SMARTCONSTRUCTION ESG GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses ESG (Sustainability) Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Environmental Indexes Structural Reforms Designed to Reinforce the Business Foundation Corporate Governance, Compliance and For further details, please click here Risk Management For further details, please click here Financial conditions: Corporate Information Securities Report Financial conditions: Corporate Information Securities Report Download PDF Site Map Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved MANAGEMENT To All Our Stakeholders MANAGEMENT FY2015 Performance To All Our Stakeholders Management Principle and The KOMATSU FY2015 Performance Management Principle and The KOMATSU Way Way ESG ESG (Sustainability) ESG Environmental Indexes ESG (Sustainability) Corporate Governance, Compliance and Environmental Indexes Risk Management Corporate Governance, Compliance and Risk Management Corporate Information Corporate Information Corporate Information Download PDF Corporate Information Site Map Download PDF Site Map KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia Japanese Japanese Print Download PDF Print Download PDF Japanese Print Download PDF Japanese Print Download PDF KOMATSU REPORT 2016 KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Growth Strategies of Existing Businesses KOMATSU REPORT 2016 Reinforcing GEMBA Efforts in Asia Reinforcing GEMBA Efforts in Asia MANAGEMENT STRATEGIES ESG INFORMATION KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia Outline of the New Mid-range Management Plan > Gemba Report 16 <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< GEMBA REPORT >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Reinforcing GEMBA Efforts in Asia (Growth Strategies of Existing Businesses) We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this customer-centered effort brand management, and are introducing it to jobsite operations. customer-centered effort brand management, and are introducing it to jobsite operations. teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customer-centered effort brand management, and are introducing it to jobsite operations. customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this Semirara mine in the Philippines customer-centered effort brand management, and are introducing it to jobsite operations. Semirara mine in the Philippines Semirara mine in the Philippines Semirara mine in the Philippines (cid:108)(cid:35)uilding on the relationship of trust with the customer (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) through teamwork(cid:122) (cid:108)(cid:35)uilding on the relationship of trust with the customer (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) through teamwork(cid:122) Ahmad Fauzi Sucipto Ahmad Fauzi Sucipto Technical Advisor Technical Advisor Manila Service Support Center Manila Service Support Center Service Division, Service Division, Construction (cid:7) Mining Equipment Marketing Division Construction (cid:7) Mining Equipment Marketing Division Komatsu Ltd. Komatsu Ltd. Ahmad Fauzi Sucipto Technical Advisor Ahmad Fauzi Sucipto Manila Service Support Center Technical Advisor Service Division, Manila Service Support Center Construction (cid:7) Mining Equipment Marketing Division Service Division, Komatsu Ltd. Construction (cid:7) Mining Equipment Marketing Division Komatsu Ltd. Please refer to Online Komatsu Report. [Interview (1 minute and 26 seconds)] Summary In the QC activity, we used one tool, Pareto chart analysis. Our final target is to make it our daily ac- tivity. QC becomes a mindset of people working at the company for improvement. For example, when they find something is broken, they analyze it QC- wise. Accumulating experiences in mining jobsites Accumulating experiences in mining jobsites Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, Accumulating experiences in mining jobsites Accumulating experiences in mining jobsites Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In Corporation in the Philippines. Corporation in the Philippines. (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts Corporation in the Philippines. Corporation in the Philippines. whenever needed,(cid:122) says Fauzi. determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts whenever needed,(cid:122) says Fauzi. determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts whenever needed,(cid:122) says Fauzi. whenever needed,(cid:122) says Fauzi. Getting deeply involved with the customer Getting deeply involved with the customer Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and Getting deeply involved with the customer Getting deeply involved with the customer Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the replacement and inspection. replacement and inspection. There are several meetings every Saturday for excavators and twice a month for support machines, where the operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the There are several meetings every Saturday for excavators and twice a month for support machines, where the operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything replacement and inspection. customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also There are several meetings every Saturday for excavators and twice a month for support machines, where the replacement and inspection. is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also There are several meetings every Saturday for excavators and twice a month for support machines, where the offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) (cid:82)uantitatively(cid:122) (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) Rudi Kurnianto (cid:108)Strengthening Reman operation (cid:82)ualitatively and President Director Rudi Kurnianto PT Komatsu Reman Indonesia (KRI) President Director (cid:82)uantitatively(cid:122) PT Komatsu Reman Indonesia (KRI) PT Komatsu Reman Indonesia (KRI) Rudi Kurnianto President Director Rudi Kurnianto President Director PT Komatsu Reman Indonesia (KRI) Expanding Reman operation Expanding Reman operation (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Expanding Reman operation (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With Expanding Reman operation Director in 2013. Director in 2013. Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, through a variety of processes to the level of quality comparable to new components. Reman components are used for (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Director in 2013. through a variety of processes to the level of quality comparable to new components. Reman components are used for periodic replacement. While their quality and performance are guaranteed on par with those of new components, their Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, periodic replacement. While their quality and performance are guaranteed on par with those of new components, their prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. through a variety of processes to the level of quality comparable to new components. Reman components are used for twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. KRI supplies Reman components worldwide within the Komatsu Group. periodic replacement. While their quality and performance are guaranteed on par with those of new components, their Director in 2013. KRI supplies Reman components worldwide within the Komatsu Group. prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, KRI supplies Reman components worldwide within the Komatsu Group. through a variety of processes to the level of quality comparable to new components. Reman components are used for Introducing quality control activities Introducing quality control activities periodic replacement. While their quality and performance are guaranteed on par with those of new components, their prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group Introducing quality control activities KRI supplies Reman components worldwide within the Komatsu Group. (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group companies in Indonesia. When he was transferred to KRI, he found companies in Indonesia. When he was transferred to KRI, he found an urgent need to anchor quality control methods in the company,(cid:122) (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group an urgent need to anchor quality control methods in the company,(cid:122) recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from companies in Indonesia. When he was transferred to KRI, he found recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from KRI's Mother Plant (Oyama Plant), embarked on company-wide QC an urgent need to anchor quality control methods in the company,(cid:122) Introducing quality control activities KRI's Mother Plant (Oyama Plant), embarked on company-wide QC training to ensure all employees thoroughly understand the basics recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from training to ensure all employees thoroughly understand the basics (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group of QC activities for improvement. They formed QC circles and held KRI's Mother Plant (Oyama Plant), embarked on company-wide QC of QC activities for improvement. They formed QC circles and held companies in Indonesia. When he was transferred to KRI, he found conventions twice a year. After the basics were anchored in the training to ensure all employees thoroughly understand the basics conventions twice a year. After the basics were anchored in the an urgent need to anchor quality control methods in the company,(cid:122) company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) of QC activities for improvement. They formed QC circles and held company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) campaign to step up their efforts in supporting distributors and recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from conventions twice a year. After the basics were anchored in the campaign to step up their efforts in supporting distributors and their end-customers, by directly finding their needs and promoting KRI's Mother Plant (Oyama Plant), embarked on company-wide QC company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) their end-customers, by directly finding their needs and promoting training to ensure all employees thoroughly understand the basics campaign to step up their efforts in supporting distributors and KAI(cid:59)EN. KAI(cid:59)EN. In the last few years, mining companies, which are Reman of QC activities for improvement. They formed QC circles and held their end-customers, by directly finding their needs and promoting In the last few years, mining companies, which are Reman customers, have curtailed capital investment, while keeping up conventions twice a year. After the basics were anchored in the KAI(cid:59)EN. customers, have curtailed capital investment, while keeping up production. It appears that this trend will linger a few more years. company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) In the last few years, mining companies, which are Reman production. It appears that this trend will linger a few more years. (cid:108)For mining customers to sustain their productivity, the importance campaign to step up their efforts in supporting distributors and customers, have curtailed capital investment, while keeping up (cid:108)For mining customers to sustain their productivity, the importance of Reman should further grow,(cid:122) confirms Kurnianto. their end-customers, by directly finding their needs and promoting production. It appears that this trend will linger a few more years. of Reman should further grow,(cid:122) confirms Kurnianto. KRI is working to supply high-quality Reman products (cid:113)exibly, (cid:108)For mining customers to sustain their productivity, the importance KAI(cid:59)EN. KRI is working to supply high-quality Reman products (cid:113)exibly, according to customer needs, in order for the Komatsu Group to of Reman should further grow,(cid:122) confirms Kurnianto. In the last few years, mining companies, which are Reman according to customer needs, in order for the Komatsu Group to enhance its position worldwide. KRI stands fully ready to KRI is working to supply high-quality Reman products (cid:113)exibly, customers, have curtailed capital investment, while keeping up enhance its position worldwide. KRI stands fully ready to accomplish its goal. according to customer needs, in order for the Komatsu Group to production. It appears that this trend will linger a few more years. accomplish its goal. enhance its position worldwide. KRI stands fully ready to (cid:108)For mining customers to sustain their productivity, the importance accomplish its goal. of Reman should further grow,(cid:122) confirms Kurnianto. KRI is working to supply high-quality Reman products (cid:113)exibly, according to customer needs, in order for the Komatsu Group to enhance its position worldwide. KRI stands fully ready to accomplish its goal. (cid:108)Getting ready to step up production for e(cid:89)panding demand in (cid:108)Getting ready to step up production for e(cid:89)panding demand in India(cid:122) India(cid:122) (cid:108)Getting ready to step up production for e(cid:89)panding demand in India(cid:122) (cid:41)ari Krishnan J., (cid:41)ari Krishnan J., Senior Manager, Planning (cid:7) Coordination Department, Senior Manager, Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) Komatsu India Pvt. Ltd. (KIPL) (cid:41)ari Krishnan J., Senior Manager, (cid:108)Getting ready to step up production for e(cid:89)panding demand in Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) India(cid:122) (cid:41)ari Krishnan J., Senior Manager, Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) New manufacturing plant and production transfer New manufacturing plant and production transfer With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined New manufacturing plant and production transfer With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic Chennai in May 2015. Chennai in May 2015. This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in New manufacturing plant and production transfer This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since Chennai in May 2015. partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. Chennai in May 2015. same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further Growing Indian economy Growing Indian economy In response to the 20% increase of demand for hydraulic Growing Indian economy In response to the 20% increase of demand for hydraulic excavators in India, Nepal and Bhutan since the second half of growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales excavators in India, Nepal and Bhutan since the second half of 2015, they worked to double their production volume within the In response to the 20% increase of demand for hydraulic and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the 2015, they worked to double their production volume within the short period of December 2015 to February 2016 with the help of excavators in India, Nepal and Bhutan since the second half of same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local short period of December 2015 to February 2016 with the help of their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about 2015, they worked to double their production volume within the market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about the projected expansion of demand in India and we should be able short period of December 2015 to February 2016 with the help of the projected expansion of demand in India and we should be able to complete the transfer before schedule. Our current top priority their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about to complete the transfer before schedule. Our current top priority is to reduce our production costs by further promoting local Growing Indian economy the projected expansion of demand in India and we should be able is to reduce our production costs by further promoting local contents in order to reduce the risk of foreign exchange to complete the transfer before schedule. Our current top priority contents in order to reduce the risk of foreign exchange In response to the 20% increase of demand for hydraulic is to reduce our production costs by further promoting local production volume of hydraulic excavators. KIPL's Chennai Plant stands ready to expand the KIPL's Chennai Plant stands ready to expand the (cid:113)uctuations.(cid:122) (cid:113)uctuations.(cid:122) excavators in India, Nepal and Bhutan since the second half of contents in order to reduce the risk of foreign exchange production volume of hydraulic excavators. KIPL's Chennai Plant stands ready to expand the 2015, they worked to double their production volume within the (cid:113)uctuations.(cid:122) production volume of hydraulic excavators. short period of December 2015 to February 2016 with the help of their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about the projected expansion of demand in India and we should be able to complete the transfer before schedule. Our current top priority (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) is to reduce our production costs by further promoting local contents in order to reduce the risk of foreign exchange (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) KIPL's Chennai Plant stands ready to expand the Krishna Kumar, (cid:113)uctuations.(cid:122) Manager of Marketing Department, Krishna Kumar, production volume of hydraulic excavators. Manager of Marketing Department, KIPL KIPL Krishna Kumar, Manager of Marketing Department, KIPL (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) Krishna Kumar, Manager of Marketing Department, KIPL Promoting sales in the premium market sector Promoting sales in the premium market sector With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Promoting sales in the premium market sector With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Manager of the Marketing Department. Manager of the Marketing Department. KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is Manager of the Marketing Department. excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. Promoting sales in the premium market sector Seeding activities Seeding activities Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Seeding activities Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of Manager of the Marketing Department. demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales System)-related activities, ranging from promotion and training to data analysis. System)-related activities, ranging from promotion and training to data analysis. Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. System)-related activities, ranging from promotion and training to data analysis. periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now Seeding activities excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking STRATEGIES STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan STRATEGIES MANAGEMENT MANAGEMENT To All Our Stakeholders To All Our Stakeholders FY2015 Performance MANAGEMENT System)-related activities, ranging from promotion and training to data analysis. Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while Review of the Previous Mid-range Management Plan Management Tasks Ahead Summary of the Last Three Years and Mid to Long-range Projection FY2015 Performance Management Principle and The KOMATSU To All Our Stakeholders in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged Management Tasks Ahead Our Surrounding Environment and Tasks Review of the Previous Mid-range Management Plan Way Management Principle and The KOMATSU FY2015 Performance that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic Way excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) Management Principle and The KOMATSU Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Management Tasks Ahead Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Our Surrounding Environment and Tasks Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan ESG ESG ESG (Sustainability) Way ESG (Sustainability) Environmental Indexes ESG Targets Targets Strategies Strategies Outline of the New Mid-range Management Plan Growth Strategies Based on Innovation Targets Strategies Growth Strategies Based on Innovation GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses STRATEGIES Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia SMARTCONSTRUCTION Summary of the Last Three Years and Mid to Long-range Projection GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Review of the Previous Mid-range Management Plan Structural Reforms Designed to Reinforce the Business Foundation Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation Management Tasks Ahead GEMBA Reports: Reinforcing GEMBA Efforts in Asia For further details, please click here Our Surrounding Environment and Tasks Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Start of the New Mid-range Management Plan Financial conditions: Outline of the New Mid-range Management Plan For further details, please click here Securities Report Financial conditions: Securities Report Targets Strategies Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Environmental Indexes Corporate Governance, Compliance and ESG (Sustainability) Risk Management Corporate Governance, Compliance and Environmental Indexes Risk Management Corporate Information Corporate Information Corporate Information Risk Management Corporate Information Download PDF MANAGEMENT Corporate Information Download PDF Site Map Site Map To All Our Stakeholders Corporate Information Download PDF FY2015 Performance Corporate Governance, Compliance and Site Map Management Principle and The KOMATSU Way ESG ESG (Sustainability) Environmental Indexes Corporate Information Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Growth Strategies Based on Innovation Copyright © 2016 Komatsu Ltd. All rights reserved GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia Japanese Print Download PDF We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this customer-centered effort brand management, and are introducing it to jobsite operations. Semirara mine in the Philippines (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) Ahmad Fauzi Sucipto Technical Advisor Manila Service Support Center Service Division, Construction (cid:7) Mining Equipment Marketing Division Komatsu Ltd. KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Outline of the New Mid-range Management Plan > Gemba Report 17 Accumulating experiences in mining jobsites Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining Corporation in the Philippines. (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts whenever needed,(cid:122) says Fauzi. Getting deeply involved with the customer Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts replacement and inspection. There are several meetings every Saturday for excavators and twice a month for support machines, where the customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) Rudi Kurnianto President Director PT Komatsu Reman Indonesia (KRI) Expanding Reman operation (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Director in 2013. Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, through a variety of processes to the level of quality comparable to new components. Reman components are used for periodic replacement. While their quality and performance are guaranteed on par with those of new components, their prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. KRI supplies Reman components worldwide within the Komatsu Group. Introducing quality control activities (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group companies in Indonesia. When he was transferred to KRI, he found an urgent need to anchor quality control methods in the company,(cid:122) recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from KRI's Mother Plant (Oyama Plant), embarked on company-wide QC training to ensure all employees thoroughly understand the basics of QC activities for improvement. They formed QC circles and held conventions twice a year. After the basics were anchored in the company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) campaign to step up their efforts in supporting distributors and their end-customers, by directly finding their needs and promoting KAI(cid:59)EN. In the last few years, mining companies, which are Reman customers, have curtailed capital investment, while keeping up production. It appears that this trend will linger a few more years. (cid:108)For mining customers to sustain their productivity, the importance of Reman should further grow,(cid:122) confirms Kurnianto. KRI is working to supply high-quality Reman products (cid:113)exibly, according to customer needs, in order for the Komatsu Group to enhance its position worldwide. KRI stands fully ready to accomplish its goal. (cid:108)Getting ready to step up production for e(cid:89)panding demand in India(cid:122) (cid:41)ari Krishnan J., Senior Manager, Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) New manufacturing plant and production transfer With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in Chennai in May 2015. This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. Growing Indian economy In response to the 20% increase of demand for hydraulic excavators in India, Nepal and Bhutan since the second half of 2015, they worked to double their production volume within the short period of December 2015 to February 2016 with the help of their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about the projected expansion of demand in India and we should be able to complete the transfer before schedule. Our current top priority is to reduce our production costs by further promoting local contents in order to reduce the risk of foreign exchange (cid:113)uctuations.(cid:122) KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators. (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) Krishna Kumar, Manager of Marketing Department, KIPL Promoting sales in the premium market sector With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Manager of the Marketing Department. KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. Seeding activities Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking System)-related activities, ranging from promotion and training to data analysis. Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Management Tasks Ahead Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Management Principle and The KOMATSU MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes Corporate Information Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia Japanese Print Download PDF KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia Japanese Print Japanese Download PDF Print Download PDF Japanese Print Download PDF Japanese Print Download PDF Semirara mine in the Philippines Semirara mine in the Philippines We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, KOMATSU REPORT 2016 Growth Strategies of Existing Businesses teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, Reinforcing GEMBA Efforts in Asia customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of Semirara mine in the Philippines customer-centered effort brand management, and are introducing it to jobsite operations. customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, customer-centered effort brand management, and are introducing it to jobsite operations. Semirara mine in the Philippines teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, customer-centered effort brand management, and are introducing it to jobsite operations. teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of (cid:108)(cid:35)uilding on the relationship of trust with the customer customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) customer-centered effort brand management, and are introducing it to jobsite operations. through teamwork(cid:122) (cid:108)(cid:35)uilding on the relationship of trust with the customer Manila Service Support Center through teamwork(cid:122) Ahmad Fauzi Sucipto Technical Advisor Ahmad Fauzi Sucipto Technical Advisor Service Division, Manila Service Support Center (cid:108)(cid:35)uilding on the relationship of trust with the customer Service Division, Construction (cid:7) Mining Equipment Marketing Division Construction (cid:7) Mining Equipment Marketing Division Komatsu Ltd. Komatsu Ltd. through teamwork(cid:122) Ahmad Fauzi Sucipto Technical Advisor Manila Service Support Center Service Division, Ahmad Fauzi Sucipto Technical Advisor Construction (cid:7) Mining Equipment Marketing Division Manila Service Support Center Komatsu Ltd. Construction (cid:7) Mining Equipment Marketing Division Semirara mine in the Philippines Service Division, Komatsu Ltd. We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this customer-centered effort brand management, and are introducing it to jobsite operations. (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) Ahmad Fauzi Sucipto Technical Advisor Manila Service Support Center Service Division, Construction (cid:7) Mining Equipment Marketing Division Komatsu Ltd. Accumulating experiences in mining jobsites Accumulating experiences in mining jobsites Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, Accumulating experiences in mining jobsites Corporation in the Philippines. November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts Corporation in the Philippines. Accumulating experiences in mining jobsites specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, whenever needed,(cid:122) says Fauzi. November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining whenever needed,(cid:122) says Fauzi. specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In Corporation in the Philippines. (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts Getting deeply involved with the customer November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining Corporation in the Philippines. determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts Getting deeply involved with the customer (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts whenever needed,(cid:122) says Fauzi. Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and Accumulating experiences in mining jobsites whenever needed,(cid:122) says Fauzi. training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, Getting deeply involved with the customer operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts Getting deeply involved with the customer Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining replacement and inspection. There are several meetings every Saturday for excavators and twice a month for support machines, where the replacement and inspection. Corporation in the Philippines. maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything There are several meetings every Saturday for excavators and twice a month for support machines, where the training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also whenever needed,(cid:122) says Fauzi. replacement and inspection. extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts There are several meetings every Saturday for excavators and twice a month for support machines, where the extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) Getting deeply involved with the customer replacement and inspection. customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything There are several meetings every Saturday for excavators and twice a month for support machines, where the is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts replacement and inspection. extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) There are several meetings every Saturday for excavators and twice a month for support machines, where the customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) (cid:108)Strengthening Reman operation (cid:82)ualitatively and KOMATSU REPORT 2016 (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) (cid:82)uantitatively(cid:122) MANAGEMENT STRATEGIES ESG INFORMATION Rudi Kurnianto President Director Rudi Kurnianto PT Komatsu Reman Indonesia (KRI) President Director PT Komatsu Reman Indonesia (KRI) Outline of the New Mid-range Management Plan > Gemba Report 18 (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) (cid:82)uantitatively(cid:122) (cid:82)uantitatively(cid:122) Rudi Kurnianto Rudi Kurnianto President Director President Director PT Komatsu Reman Indonesia (KRI) PT Komatsu Reman Indonesia (KRI) Rudi Kurnianto President Director PT Komatsu Reman Indonesia (KRI) Please refer to Online Komatsu Report. [Interview (36 seconds)] Summary Our machine is good. But for the people, if the people who take care of the machine are not good, it would look that Komatsu is not good. So what we did is we satisfied the customer by training the customer and also Maxima for improvement. Expanding Reman operation Expanding Reman operation Expanding Reman operation (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Director in 2013. twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Director in 2013. Expanding Reman operation Director in 2013. Expanding Reman operation Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, through a variety of processes to the level of quality comparable to new components. Reman components are used for through a variety of processes to the level of quality comparable to new components. Reman components are used for Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, Director in 2013. (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing KRI supplies Reman components worldwide within the Komatsu Group. prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. periodic replacement. While their quality and performance are guaranteed on par with those of new components, their periodic replacement. While their quality and performance are guaranteed on par with those of new components, their through a variety of processes to the level of quality comparable to new components. Reman components are used for (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. periodic replacement. While their quality and performance are guaranteed on par with those of new components, their Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With KRI supplies Reman components worldwide within the Komatsu Group. prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing KRI supplies Reman components worldwide within the Komatsu Group. Director in 2013. Introducing quality control activities (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group through a variety of processes to the level of quality comparable to new components. Reman components are used for Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, Introducing quality control activities through a variety of processes to the level of quality comparable to new components. Reman components are used for Introducing quality control activities periodic replacement. While their quality and performance are guaranteed on par with those of new components, their periodic replacement. While their quality and performance are guaranteed on par with those of new components, their (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. companies in Indonesia. When he was transferred to KRI, he found (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group KRI supplies Reman components worldwide within the Komatsu Group. an urgent need to anchor quality control methods in the company,(cid:122) companies in Indonesia. When he was transferred to KRI, he found KRI supplies Reman components worldwide within the Komatsu Group. an urgent need to anchor quality control methods in the company,(cid:122) companies in Indonesia. When he was transferred to KRI, he found recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from KRI's Mother Plant (Oyama Plant), embarked on company-wide QC training to ensure all employees thoroughly understand the basics recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from an urgent need to anchor quality control methods in the company,(cid:122) of QC activities for improvement. They formed QC circles and held Introducing quality control activities conventions twice a year. After the basics were anchored in the KRI's Mother Plant (Oyama Plant), embarked on company-wide QC recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from Introducing quality control activities training to ensure all employees thoroughly understand the basics KRI's Mother Plant (Oyama Plant), embarked on company-wide QC company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) KAI(cid:59)EN. In the last few years, mining companies, which are Reman customers, have curtailed capital investment, while keeping up production. It appears that this trend will linger a few more years. their end-customers, by directly finding their needs and promoting recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from companies in Indonesia. When he was transferred to KRI, he found an urgent need to anchor quality control methods in the company,(cid:122) campaign to step up their efforts in supporting distributors and (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group of QC activities for improvement. They formed QC circles and held training to ensure all employees thoroughly understand the basics (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group conventions twice a year. After the basics were anchored in the of QC activities for improvement. They formed QC circles and held companies in Indonesia. When he was transferred to KRI, he found company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) conventions twice a year. After the basics were anchored in the an urgent need to anchor quality control methods in the company,(cid:122) campaign to step up their efforts in supporting distributors and company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from their end-customers, by directly finding their needs and promoting campaign to step up their efforts in supporting distributors and KRI's Mother Plant (Oyama Plant), embarked on company-wide QC KRI's Mother Plant (Oyama Plant), embarked on company-wide QC KAI(cid:59)EN. (cid:108)For mining customers to sustain their productivity, the importance their end-customers, by directly finding their needs and promoting training to ensure all employees thoroughly understand the basics training to ensure all employees thoroughly understand the basics of Reman should further grow,(cid:122) confirms Kurnianto. KAI(cid:59)EN. of QC activities for improvement. They formed QC circles and held customers, have curtailed capital investment, while keeping up In the last few years, mining companies, which are Reman conventions twice a year. After the basics were anchored in the production. It appears that this trend will linger a few more years. customers, have curtailed capital investment, while keeping up company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) (cid:108)For mining customers to sustain their productivity, the importance production. It appears that this trend will linger a few more years. campaign to step up their efforts in supporting distributors and of Reman should further grow,(cid:122) confirms Kurnianto. (cid:108)For mining customers to sustain their productivity, the importance their end-customers, by directly finding their needs and promoting their end-customers, by directly finding their needs and promoting KRI is working to supply high-quality Reman products (cid:113)exibly, of Reman should further grow,(cid:122) confirms Kurnianto. KAI(cid:59)EN. according to customer needs, in order for the Komatsu Group to KRI is working to supply high-quality Reman products (cid:113)exibly, In the last few years, mining companies, which are Reman according to customer needs, in order for the Komatsu Group to conventions twice a year. After the basics were anchored in the of QC activities for improvement. They formed QC circles and held company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) campaign to step up their efforts in supporting distributors and In the last few years, mining companies, which are Reman KRI is working to supply high-quality Reman products (cid:113)exibly, enhance its position worldwide. KRI stands fully ready to accomplish its goal. KAI(cid:59)EN. In the last few years, mining companies, which are Reman enhance its position worldwide. KRI stands fully ready to according to customer needs, in order for the Komatsu Group to customers, have curtailed capital investment, while keeping up accomplish its goal. enhance its position worldwide. KRI stands fully ready to production. It appears that this trend will linger a few more years. accomplish its goal. customers, have curtailed capital investment, while keeping up production. It appears that this trend will linger a few more years. (cid:108)Getting ready to step up production for e(cid:89)panding demand in (cid:108)For mining customers to sustain their productivity, the importance (cid:108)For mining customers to sustain their productivity, the importance India(cid:122) of Reman should further grow,(cid:122) confirms Kurnianto. of Reman should further grow,(cid:122) confirms Kurnianto. KRI is working to supply high-quality Reman products (cid:113)exibly, (cid:41)ari Krishnan J., KRI is working to supply high-quality Reman products (cid:113)exibly, according to customer needs, in order for the Komatsu Group to Senior Manager, according to customer needs, in order for the Komatsu Group to Planning (cid:7) Coordination Department, enhance its position worldwide. KRI stands fully ready to Komatsu India Pvt. Ltd. (KIPL) enhance its position worldwide. KRI stands fully ready to accomplish its goal. accomplish its goal. (cid:108)Getting ready to step up production for e(cid:89)panding demand in (cid:108)Getting ready to step up production for e(cid:89)panding demand in India(cid:122) India(cid:122) India(cid:122) (cid:41)ari Krishnan J., Senior Manager, (cid:41)ari Krishnan J., Senior Manager, Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) Planning (cid:7) Coordination Department, (cid:108)Getting ready to step up production for e(cid:89)panding demand in (cid:108)Getting ready to step up production for e(cid:89)panding demand in Komatsu India Pvt. Ltd. (KIPL) India(cid:122) (cid:41)ari Krishnan J., (cid:41)ari Krishnan J., Senior Manager, Senior Manager, Planning (cid:7) Coordination Department, Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) Komatsu India Pvt. Ltd. (KIPL) New manufacturing plant and production transfer With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in Chennai in May 2015. This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local New manufacturing plant and production transfer market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. New manufacturing plant and production transfer With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined Growing Indian economy KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been In response to the 20% increase of demand for hydraulic the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in excavators in India, Nepal and Bhutan since the second half of 2015, they worked to double their production volume within the excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic New manufacturing plant and production transfer Chennai in May 2015. excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in New manufacturing plant and production transfer short period of December 2015 to February 2016 with the help of their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about Chennai in May 2015. This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined the projected expansion of demand in India and we should be able partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined to complete the transfer before schedule. Our current top priority April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in production volume of hydraulic excavators. is to reduce our production costs by further promoting local contents in order to reduce the risk of foreign exchange KIPL's Chennai Plant stands ready to expand the (cid:113)uctuations.(cid:122) Chennai in May 2015. excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. Growing Indian economy In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales In response to the 20% increase of demand for hydraulic Manager of Marketing Department, and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the Growing Indian economy Krishna Kumar, same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local KIPL Chennai in May 2015. and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the excavators in India, Nepal and Bhutan since the second half of In response to the 20% increase of demand for hydraulic market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local 2015, they worked to double their production volume within the excavators in India, Nepal and Bhutan since the second half of market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. short period of December 2015 to February 2016 with the help of 2015, they worked to double their production volume within the Growing Indian economy their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about short period of December 2015 to February 2016 with the help of Growing Indian economy the projected expansion of demand in India and we should be able their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about to complete the transfer before schedule. Our current top priority the projected expansion of demand in India and we should be able In response to the 20% increase of demand for hydraulic is to reduce our production costs by further promoting local to complete the transfer before schedule. Our current top priority excavators in India, Nepal and Bhutan since the second half of In response to the 20% increase of demand for hydraulic contents in order to reduce the risk of foreign exchange is to reduce our production costs by further promoting local 2015, they worked to double their production volume within the excavators in India, Nepal and Bhutan since the second half of contents in order to reduce the risk of foreign exchange short period of December 2015 to February 2016 with the help of (cid:113)uctuations.(cid:122) 2015, they worked to double their production volume within the (cid:113)uctuations.(cid:122) their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about short period of December 2015 to February 2016 with the help of the projected expansion of demand in India and we should be able their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about to complete the transfer before schedule. Our current top priority the projected expansion of demand in India and we should be able is to reduce our production costs by further promoting local to complete the transfer before schedule. Our current top priority contents in order to reduce the risk of foreign exchange KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators. KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators. is to reduce our production costs by further promoting local (cid:113)uctuations.(cid:122) (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) production volume of hydraulic excavators. contents in order to reduce the risk of foreign exchange Promoting sales in the premium market sector (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) KIPL's Chennai Plant stands ready to expand the (cid:113)uctuations.(cid:122) KIPL's Chennai Plant stands ready to expand the With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Manager of Marketing Department, Manager of the Marketing Department. KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is production volume of hydraulic excavators. Krishna Kumar, Manager of Marketing Department, Krishna Kumar, KIPL KIPL one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) Krishna Kumar, Manager of Marketing Department, KIPL Seeding activities Krishna Kumar, Manager of Marketing Department, Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of KIPL demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking System)-related activities, ranging from promotion and training to data analysis. Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) STRATEGIES Promoting sales in the premium market sector MANAGEMENT Summary of the Last Three Years and Mid to Long-range Projection Promoting sales in the premium market sector To All Our Stakeholders Review of the Previous Mid-range Management Plan With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant FY2015 Performance Management Tasks Ahead Our Surrounding Environment and Tasks Manager of the Marketing Department. With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Way Management Principle and The KOMATSU Start of the New Mid-range Management Plan Manager of the Marketing Department. KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic ESG Outline of the New Mid-range Management Plan excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic ESG (Sustainability) Targets Strategies one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is Promoting sales in the premium market sector some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in Corporate Governance, Compliance and Environmental Indexes Risk Management Growth Strategies Based on Innovation and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Corporate Information and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. Corporate Information Promoting sales in the premium market sector GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION Manager of the Marketing Department. Growth Strategies of Existing Businesses With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant GEMBA Reports: Reinforcing GEMBA Efforts in Asia Seeding activities KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is Download PDF Site Map Manager of the Marketing Department. Structural Reforms Designed to Reinforce the Business Foundation Seeding activities one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service For further details, please click here excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. Financial conditions: one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of Securities Report some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales Copyright © 2016 Komatsu Ltd. All rights reserved and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. System)-related activities, ranging from promotion and training to data analysis. promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking Seeding activities Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while System)-related activities, ranging from promotion and training to data analysis. Seeding activities periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) System)-related activities, ranging from promotion and training to data analysis. equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged System)-related activities, ranging from promotion and training to data analysis. in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) STRATEGIES MANAGEMENT in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now Summary of the Last Three Years and Mid to Long-range Projection STRATEGIES MANAGEMENT To All Our Stakeholders that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan FY2015 Performance To All Our Stakeholders excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) Review of the Previous Mid-range Management Plan Management Tasks Ahead Management Principle and The KOMATSU FY2015 Performance Management Principle and The KOMATSU Way Way ESG ESG (Sustainability) ESG MANAGEMENT Environmental Indexes ESG (Sustainability) To All Our Stakeholders Corporate Governance, Compliance and Environmental Indexes FY2015 Performance Risk Management Corporate Governance, Compliance and Management Principle and The KOMATSU Risk Management Corporate Information Way Corporate Information Corporate Information Download PDF Corporate Information Site Map Download PDF Environmental Indexes Site Map Risk Management Our Surrounding Environment and Tasks Management Tasks Ahead Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan STRATEGIES Targets Strategies Targets Strategies Outline of the New Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan STRATEGIES Management Tasks Ahead Growth Strategies Based on Innovation MANAGEMENT Summary of the Last Three Years and Mid to Long-range Projection Our Surrounding Environment and Tasks GEMBA Report: Moving forward with customers: Reporting from a jobsite of To All Our Stakeholders Growth Strategies Based on Innovation Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan GEMBA Report: Moving forward with customers: Reporting from a jobsite of FY2015 Performance ESG SMARTCONSTRUCTION Management Tasks Ahead Growth Strategies of Existing Businesses Outline of the New Mid-range Management Plan SMARTCONSTRUCTION Our Surrounding Environment and Tasks Targets GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses Management Principle and The KOMATSU ESG (Sustainability) Start of the New Mid-range Management Plan Strategies Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Corporate Governance, Compliance and Way ESG Outline of the New Mid-range Management Plan Structural Reforms Designed to Reinforce the Business Foundation ESG (Sustainability) Growth Strategies Based on Innovation For further details, please click here Targets Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of For further details, please click here Financial conditions: SMARTCONSTRUCTION Securities Report Growth Strategies of Existing Businesses Financial conditions: Securities Report Environmental Indexes Corporate Information Corporate Governance, Compliance and Corporate Information Risk Management Download PDF Site Map Growth Strategies Based on Innovation GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION Structural Reforms Designed to Reinforce the Business Foundation Corporate Information Copyright © 2016 Komatsu Ltd. All rights reserved GEMBA Reports: Reinforcing GEMBA Efforts in Asia Copyright © 2016 Komatsu Ltd. All rights reserved Corporate Information Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia For further details, please click here Structural Reforms Designed to Reinforce the Business Foundation Financial conditions: Securities Report Download PDF Site Map For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia Japanese Print Japanese Download PDF Print Japanese Download PDF Print Download PDF We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, customer-centered effort brand management, and are introducing it to jobsite operations. customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customer-centered effort brand management, and are introducing it to jobsite operations. customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this customer-centered effort brand management, and are introducing it to jobsite operations. Semirara mine in the Philippines Semirara mine in the Philippines Semirara mine in the Philippines (cid:108)(cid:35)uilding on the relationship of trust with the customer (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) through teamwork(cid:122) (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) Ahmad Fauzi Sucipto Technical Advisor Ahmad Fauzi Sucipto Manila Service Support Center Technical Advisor Service Division, Ahmad Fauzi Sucipto Manila Service Support Center Construction (cid:7) Mining Equipment Marketing Division Construction (cid:7) Mining Equipment Marketing Division Manila Service Support Center Construction (cid:7) Mining Equipment Marketing Division Technical Advisor Service Division, Komatsu Ltd. Service Division, Komatsu Ltd. Komatsu Ltd. Accumulating experiences in mining jobsites Accumulating experiences in mining jobsites Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, Accumulating experiences in mining jobsites specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, Corporation in the Philippines. November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts Corporation in the Philippines. Corporation in the Philippines. whenever needed,(cid:122) says Fauzi. whenever needed,(cid:122) says Fauzi. determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts whenever needed,(cid:122) says Fauzi. Getting deeply involved with the customer Getting deeply involved with the customer Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and Getting deeply involved with the customer maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, replacement and inspection. operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the There are several meetings every Saturday for excavators and twice a month for support machines, where the operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything There are several meetings every Saturday for excavators and twice a month for support machines, where the replacement and inspection. replacement and inspection. is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything There are several meetings every Saturday for excavators and twice a month for support machines, where the offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) (cid:82)uantitatively(cid:122) (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) Rudi Kurnianto President Director Rudi Kurnianto PT Komatsu Reman Indonesia (KRI) President Director PT Komatsu Reman Indonesia (KRI) Rudi Kurnianto President Director PT Komatsu Reman Indonesia (KRI) Expanding Reman operation Expanding Reman operation Expanding Reman operation (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Director in 2013. twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing through a variety of processes to the level of quality comparable to new components. Reman components are used for Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, Director in 2013. Director in 2013. periodic replacement. While their quality and performance are guaranteed on par with those of new components, their through a variety of processes to the level of quality comparable to new components. Reman components are used for Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. periodic replacement. While their quality and performance are guaranteed on par with those of new components, their through a variety of processes to the level of quality comparable to new components. Reman components are used for KRI supplies Reman components worldwide within the Komatsu Group. prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. periodic replacement. While their quality and performance are guaranteed on par with those of new components, their KRI supplies Reman components worldwide within the Komatsu Group. prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. KRI supplies Reman components worldwide within the Komatsu Group. Introducing quality control activities Introducing quality control activities (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group Introducing quality control activities companies in Indonesia. When he was transferred to KRI, he found (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group an urgent need to anchor quality control methods in the company,(cid:122) companies in Indonesia. When he was transferred to KRI, he found (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from an urgent need to anchor quality control methods in the company,(cid:122) companies in Indonesia. When he was transferred to KRI, he found KRI's Mother Plant (Oyama Plant), embarked on company-wide QC recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from an urgent need to anchor quality control methods in the company,(cid:122) training to ensure all employees thoroughly understand the basics KRI's Mother Plant (Oyama Plant), embarked on company-wide QC recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from of QC activities for improvement. They formed QC circles and held training to ensure all employees thoroughly understand the basics KRI's Mother Plant (Oyama Plant), embarked on company-wide QC conventions twice a year. After the basics were anchored in the of QC activities for improvement. They formed QC circles and held training to ensure all employees thoroughly understand the basics company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) conventions twice a year. After the basics were anchored in the of QC activities for improvement. They formed QC circles and held campaign to step up their efforts in supporting distributors and company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) conventions twice a year. After the basics were anchored in the their end-customers, by directly finding their needs and promoting campaign to step up their efforts in supporting distributors and company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) KAI(cid:59)EN. their end-customers, by directly finding their needs and promoting campaign to step up their efforts in supporting distributors and In the last few years, mining companies, which are Reman their end-customers, by directly finding their needs and promoting customers, have curtailed capital investment, while keeping up In the last few years, mining companies, which are Reman KAI(cid:59)EN. KAI(cid:59)EN. production. It appears that this trend will linger a few more years. customers, have curtailed capital investment, while keeping up In the last few years, mining companies, which are Reman (cid:108)For mining customers to sustain their productivity, the importance production. It appears that this trend will linger a few more years. customers, have curtailed capital investment, while keeping up of Reman should further grow,(cid:122) confirms Kurnianto. (cid:108)For mining customers to sustain their productivity, the importance production. It appears that this trend will linger a few more years. KRI is working to supply high-quality Reman products (cid:113)exibly, of Reman should further grow,(cid:122) confirms Kurnianto. (cid:108)For mining customers to sustain their productivity, the importance according to customer needs, in order for the Komatsu Group to KRI is working to supply high-quality Reman products (cid:113)exibly, of Reman should further grow,(cid:122) confirms Kurnianto. enhance its position worldwide. KRI stands fully ready to according to customer needs, in order for the Komatsu Group to KRI is working to supply high-quality Reman products (cid:113)exibly, accomplish its goal. enhance its position worldwide. KRI stands fully ready to according to customer needs, in order for the Komatsu Group to accomplish its goal. enhance its position worldwide. KRI stands fully ready to accomplish its goal. KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Outline of the New Mid-range Management Plan > Gemba Report India(cid:122) (cid:108)Getting ready to step up production for e(cid:89)panding demand in (cid:108)Getting ready to step up production for e(cid:89)panding demand in India(cid:122) India(cid:122) (cid:108)Getting ready to step up production for e(cid:89)panding demand in (cid:41)ari Krishnan J., Senior Manager, (cid:41)ari Krishnan J., Planning (cid:7) Coordination Department, Senior Manager, Komatsu India Pvt. Ltd. (KIPL) (cid:41)ari Krishnan J., Planning (cid:7) Coordination Department, Senior Manager, Komatsu India Pvt. Ltd. (KIPL) Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) 19 New manufacturing plant and production transfer New manufacturing plant and production transfer With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined New manufacturing plant and production transfer KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in Chennai in May 2015. excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the Chennai in May 2015. excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the Chennai in May 2015. April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. Growing Indian economy Growing Indian economy In response to the 20% increase of demand for hydraulic Growing Indian economy excavators in India, Nepal and Bhutan since the second half of In response to the 20% increase of demand for hydraulic 2015, they worked to double their production volume within the excavators in India, Nepal and Bhutan since the second half of In response to the 20% increase of demand for hydraulic short period of December 2015 to February 2016 with the help of 2015, they worked to double their production volume within the excavators in India, Nepal and Bhutan since the second half of their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about short period of December 2015 to February 2016 with the help of 2015, they worked to double their production volume within the the projected expansion of demand in India and we should be able their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about short period of December 2015 to February 2016 with the help of to complete the transfer before schedule. Our current top priority the projected expansion of demand in India and we should be able their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about is to reduce our production costs by further promoting local to complete the transfer before schedule. Our current top priority the projected expansion of demand in India and we should be able contents in order to reduce the risk of foreign exchange is to reduce our production costs by further promoting local to complete the transfer before schedule. Our current top priority (cid:113)uctuations.(cid:122) contents in order to reduce the risk of foreign exchange is to reduce our production costs by further promoting local (cid:113)uctuations.(cid:122) contents in order to reduce the risk of foreign exchange (cid:113)uctuations.(cid:122) KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators. KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators. KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators. (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) Manager of Marketing Department, Krishna Kumar, Krishna Kumar, KIPL Krishna Kumar, KIPL KIPL Manager of Marketing Department, Manager of Marketing Department, Promoting sales in the premium market sector Promoting sales in the premium market sector With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Promoting sales in the premium market sector Manager of the Marketing Department. With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic Manager of the Marketing Department. With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic Manager of the Marketing Department. one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. Seeding activities Seeding activities Seeding activities Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of System)-related activities, ranging from promotion and training to data analysis. promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while System)-related activities, ranging from promotion and training to data analysis. promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while System)-related activities, ranging from promotion and training to data analysis. in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation Corporate Governance, Compliance and STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection STRATEGIES Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection STRATEGIES Management Tasks Ahead Review of the Previous Mid-range Management Plan Summary of the Last Three Years and Mid to Long-range Projection Our Surrounding Environment and Tasks Management Tasks Ahead Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Management Tasks Ahead Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan Our Surrounding Environment and Tasks Targets Outline of the New Mid-range Management Plan Start of the New Mid-range Management Plan Strategies Targets Strategies Outline of the New Mid-range Management Plan Targets Growth Strategies Based on Innovation SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation Growth Strategies of Existing Businesses SMARTCONSTRUCTION GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses SMARTCONSTRUCTION Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation GEMBA Reports: Reinforcing GEMBA Efforts in Asia For further details, please click here Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Financial conditions: For further details, please click here Securities Report Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved Copyright © 2016 Komatsu Ltd. All rights reserved MANAGEMENT To All Our Stakeholders MANAGEMENT FY2015 Performance To All Our Stakeholders MANAGEMENT Management Principle and The KOMATSU FY2015 Performance To All Our Stakeholders Way Management Principle and The KOMATSU FY2015 Performance Way ESG Management Principle and The KOMATSU Corporate Governance, Compliance and Environmental Indexes ESG (Sustainability) Risk Management Corporate Governance, Compliance and ESG (Sustainability) ESG Way Environmental Indexes ESG (Sustainability) ESG Environmental Indexes Risk Management Corporate Information Corporate Information Corporate Information Risk Management Download PDF Corporate Information Corporate Information Site Map Download PDF Corporate Information Site Map Download PDF Site Map KOMATSU REPORT 2016 Growth Strategies of Existing Businesses Reinforcing GEMBA Efforts in Asia Japanese Print Download PDF We, at Komatsu, believe that we can achieve sustainable growth by Komatsu Group employees from around the world, teaming up with partners, such as our distributors and suppliers and working to improve the safety and productivity of customers' jobsite operations together with them, thereby becoming customers(cid:96) indispensable partner. We call this customer-centered effort brand management, and are introducing it to jobsite operations. Semirara mine in the Philippines (cid:108)(cid:35)uilding on the relationship of trust with the customer through teamwork(cid:122) Ahmad Fauzi Sucipto Technical Advisor Manila Service Support Center Service Division, Construction (cid:7) Mining Equipment Marketing Division Komatsu Ltd. Accumulating experiences in mining jobsites Fauzi joined PT. United Tractors Tbk, our Indonesian distributor, in 2000. (cid:41)e worked as a trainer of service mechanics, specializing in the PC3000, and later as a service supervisor, focusing on the full-maintenance service contracts. In November 2009, he joined Komatsu and began his service as resident technical advisor at a mine of Semirara Mining Corporation in the Philippines. whenever needed,(cid:122) says Fauzi. (cid:108)Product support is our business to ensure customer satisfaction, and the availability of both equipment and parts determines the level of customer satisfaction. In other words, it's determined by our ability to provide necessary parts Getting deeply involved with the customer Working with his colleague from Japan, he is responsible for preventing mechanical problems of machines and maximizing their utilization rate. (cid:41)is specific duties are extensive, including support for maintenance of machines, training of mechanics of both Maxima Machineries, our distributor, and the customer, trouble shooting by analyzing the operating conditions of machines based on KOMTRA(cid:57) Plus data, and supporting Maxima's planning of parts replacement and inspection. There are several meetings every Saturday for excavators and twice a month for support machines, where the customer, Maxima and Komatsu discuss all issues related to mining operations. (cid:41)e explains, (cid:108)In the meetings, everything is shared. For example, we report client's operator performance in terms of fuel consumption of dump trucks. We also offer recommendations based on our analyses. The customer's trial use of our Dual Bushing Track is a good example to extend the life of tracks. We analyze the data, make proposals and develop plans for the next steps together.(cid:122) (cid:108)Strengthening Reman operation (cid:82)ualitatively and (cid:82)uantitatively(cid:122) Rudi Kurnianto President Director PT Komatsu Reman Indonesia (KRI) Expanding Reman operation (cid:108)I am convinced that Komatsu's strength lies in KAI(cid:59)EN based on quality control with implementation of the PDCA Cycle,(cid:122) says Kurnianto. (cid:41)e joined PT Komatsu Indonesia, our first joint-venture manufacturer in Asia, in 1991. With twenty-two years of experience and expertise in Komatsu-style manufacturing, he was transferred to KRI as Marketing Director in 2013. Reman stands for remanufacturing. It remanufactures used components, such as engines and hydraulic equipment, through a variety of processes to the level of quality comparable to new components. Reman components are used for periodic replacement. While their quality and performance are guaranteed on par with those of new components, their prices are lower than those of new ones, and Reman contributes to savings of resources through reuse and recycling. KRI supplies Reman components worldwide within the Komatsu Group. Introducing quality control activities (cid:108)KRI was established in 200(cid:24), the youngest of Komatsu Group companies in Indonesia. When he was transferred to KRI, he found an urgent need to anchor quality control methods in the company,(cid:122) recalls Kurnianto. (cid:41)e and (cid:41)iroki Nakamura, a Japanese expat from KRI's Mother Plant (Oyama Plant), embarked on company-wide QC training to ensure all employees thoroughly understand the basics of QC activities for improvement. They formed QC circles and held conventions twice a year. After the basics were anchored in the company in 2014, they launched the (cid:108)Aggressive and Proactive(cid:122) campaign to step up their efforts in supporting distributors and their end-customers, by directly finding their needs and promoting KAI(cid:59)EN. In the last few years, mining companies, which are Reman customers, have curtailed capital investment, while keeping up production. It appears that this trend will linger a few more years. (cid:108)For mining customers to sustain their productivity, the importance of Reman should further grow,(cid:122) confirms Kurnianto. KRI is working to supply high-quality Reman products (cid:113)exibly, according to customer needs, in order for the Komatsu Group to enhance its position worldwide. KRI stands fully ready to accomplish its goal. (cid:108)Getting ready to step up production for e(cid:89)panding demand in India(cid:122) (cid:41)ari Krishnan J., Senior Manager, Planning (cid:7) Coordination Department, Komatsu India Pvt. Ltd. (KIPL) New manufacturing plant and production transfer With over 1(cid:24) years of experience in the automobile industry in the area of production planning control, Krishnan joined KIPL in 2006 as the first national employee in the Planning (cid:7) Coordination Department. Since then he has been responsible for (cid:41)ANSEI (sales and production planning) as well as cost and inventory controls. (cid:41)e was also involved in the green field plant start-up of dump trucks, and most recently in the smooth transfer of the production of hydraulic excavators from LTCEL, a subsidiary of Larsen (cid:7) Tourbro Limited (L(cid:7)T), to KIPL's new plant which began operation in Chennai in May 2015. This transfer project began in April 2013 and is scheduled to be completed in September 2016. In India, under the partnership with L(cid:7)T, Komatsu engaged in production, sales and service of hydraulic excavators over the years. Since April 2013, KIPL has become responsible for production and L(cid:7)T for sales and service, in order to ensure further growth by capitalizing on each other's strengths. This transfer involves 5 models, ranging from 6-ton to 20-ton classes. In the course of the transfer, he recalls, (cid:108)It was a challenging task to meet market demand and achieve monthly sales and production targets, while keeping a 50-to-50 balance of the volume of production between KIPL and LTCEL.(cid:122) In the same period, KIPL has also launched the production of the PC210-8M0 model, designed exclusively to respond to local market needs, and has begun installation of KOMTRA(cid:57) in all excavator models. Growing Indian economy In response to the 20% increase of demand for hydraulic excavators in India, Nepal and Bhutan since the second half of 2015, they worked to double their production volume within the short period of December 2015 to February 2016 with the help of their Mother Plant in Japan. (cid:41)e says, (cid:108)We are very excited about the projected expansion of demand in India and we should be able to complete the transfer before schedule. Our current top priority is to reduce our production costs by further promoting local contents in order to reduce the risk of foreign exchange (cid:113)uctuations.(cid:122) KIPL's Chennai Plant stands ready to expand the production volume of hydraulic excavators. KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Outline of the New Mid-range Management Plan > Gemba Report 20 (cid:108)(cid:56)ell prepared to capitali(cid:91)e on the market recovery in India(cid:122) Krishna Kumar, Manager of Marketing Department, KIPL Promoting sales in the premium market sector With a wealth of marketing experience in the construction equipment industry, Kumar joined KIPL in 2010 as Assistant Manager of the Marketing Department. KIPL is focused on the premium market sector of high-quality, high-performance and high-e(cid:9359)ciency hydraulic excavators in India. Together with L(cid:7)T, they have been making a variety of sales promotion efforts. (cid:108)Caravan demo(cid:122) is one in which they carry the machine on a trailer and travel all across India for display, and for machine demonstration in some areas where Komatsu machine presence is low. This program is accompanied by specialists from Sales, Service and Parts departments to ensure the accurate and attractive explanation of machine features and customer benefits. Seeding activities Kumar is also responsible for a diverse range of other marketing-related initiatives in India, such as 1) prediction of demand for construction equipment, 2) coordination between the plant and distributors to ensure the smooth supply of equipment, while keeping KIPL's inventory at an optimal level, 3) introduction of Life Cycle Cost (LCC)-based sales promotion, 4) introduction of new models to respond to local market needs, 5) KOMTRA(cid:57) (Komatsu Machine Tracking System)-related activities, ranging from promotion and training to data analysis. Kumar places top priority on increasing Komatsu's market share in India by continuing all above activities, while periodically reviewing the results of each activity and adjusting the level of priority. (cid:41)e reassuringly states, (cid:108)We engaged in these activities, as seeding activities, even in the last two years when demand dropped for hydraulic excavators. Now that the Indian economy is getting stronger, fueling infrastructure development and increasing demand for hydraulic excavators, I feel good days are coming for us to harvest the crop in next two years.(cid:122) STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Management Tasks Ahead Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Management Principle and The KOMATSU MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes Corporate Information Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Japanese Japanese Print Print Download PDF Download PDF Japanese Print Download PDF Japanese Download PDF Japanese Print Print Download PDF Japanese Print Download PDF Summary of the Last Three Years and Mid to Long-range Projection Summary of the Last Three Years and Mid to Long-range Projection (1 minute and 5 seconds) (1 minute and 5 seconds) Summary of the Last Three Years and Mid to Long-range Projection Management Plan Management Plan Review of the Previous Mid-range Review of the Previous Mid-range Summary of the Last Three Years and Mid to Long-range Projection We promoted the (cid:108)Together We Innovate GEMBA We promoted the (cid:108)Together We Innovate GEMBA Summary of the Last Three Years and Mid to Long-range Projection years from April, 2013 to March, 2016. (1 minute and 5 seconds) Worldwide(cid:122) mid-range management plan for three Worldwide(cid:122) mid-range management plan for three Summary of the Last Three Years and Mid to Long-range Projection nose-dived to about 30% of the FY2012 level. emerging countries ,as well as sluggish commodity mining equipment continued to decline drastically from years from April, 2013 to March, 2016. During this period, demand for construction and During this period, demand for construction and mining equipment continued to decline drastically from mining equipment continued to decline drastically from Review of the Previous Mid-range our projection, as impacted by slowing economies of our projection, as impacted by slowing economies of (1 minute and 5 seconds) (1 minute and 5 seconds) Japanese Management Plan emerging countries ,as well as sluggish commodity emerging countries ,as well as sluggish commodity Review of the Previous Mid-range prices. In particular, demand for mining equipment prices. In particular, demand for mining equipment Management Plan We promoted the (cid:108)Together We Innovate GEMBA nose-dived to about 30% of the FY2012 level. Review of the Previous Mid-range nose-dived to about 30% of the FY2012 level. Print Download PDF Worldwide(cid:122) mid-range management plan for three Against this backdrop, we accelerated the speed of Against this backdrop, we accelerated the speed of Management Plan years from April, 2013 to March, 2016. implementing structural reforms, such as cutting down We promoted the (cid:108)Together We Innovate GEMBA implementing structural reforms, such as cutting down production costs and curbing fixed costs, as we During this period, demand for construction and Worldwide(cid:122) mid-range management plan for three production costs and curbing fixed costs, as we We promoted the (cid:108)Together We Innovate GEMBA mining equipment continued to decline drastically from diligently carried out seeding for future growth, one of years from April, 2013 to March, 2016. diligently carried out seeding for future growth, one of Worldwide(cid:122) mid-range management plan for three our projection, as impacted by slowing economies of the core strategies of the mid-range management During this period, demand for construction and the core strategies of the mid-range management years from April, 2013 to March, 2016. plan. emerging countries ,as well as sluggish commodity mining equipment continued to decline drastically from During this period, demand for construction and plan. prices. In particular, demand for mining equipment our projection, as impacted by slowing economies of our projection, as impacted by slowing economies of prices. In particular, demand for mining equipment Against this backdrop, we accelerated the speed of Management Tasks Ahead Management Tasks Ahead emerging countries ,as well as sluggish commodity implementing structural reforms, such as cutting down nose-dived to about 30% of the FY2012 level. prices. In particular, demand for mining equipment production costs and curbing fixed costs, as we Against this backdrop, we accelerated the speed of When we assess our business environment today, we nose-dived to about 30% of the FY2012 level. When we assess our business environment today, we diligently carried out seeding for future growth, one of implementing structural reforms, such as cutting down must first think about demand for construction and Against this backdrop, we accelerated the speed of must first think about demand for construction and the core strategies of the mid-range management production costs and curbing fixed costs, as we mining equipment as well as industrial machinery. We implementing structural reforms, such as cutting down mining equipment as well as industrial machinery. We (1 minute and 5 seconds) diligently carried out seeding for future growth, one of Review of the Previous Mid-range project that demand for construction and mining production costs and curbing fixed costs, as we project that demand for construction and mining the core strategies of the mid-range management equipment, in particular, from which we generate 90% Management Plan diligently carried out seeding for future growth, one of equipment, in particular, from which we generate 90% plan. plan. of total sales, will remain very challenging in FY2016 the core strategies of the mid-range management of total sales, will remain very challenging in FY2016 Management Tasks Ahead We promoted the (cid:108)Together We Innovate GEMBA and beyond, for some time. (cid:108)Against this backdrop, and beyond, for some time. (cid:108)Against this backdrop, plan. how are we going to ensure growth(cid:32)(cid:122) This is the first Worldwide(cid:122) mid-range management plan for three how are we going to ensure growth(cid:32)(cid:122) This is the first task we must address. When we assess our business environment today, we Management Tasks Ahead years from April, 2013 to March, 2016. task we must address. must first think about demand for construction and We believe the key to our growth, after all, lies in During this period, demand for construction and Management Tasks Ahead We believe the key to our growth, after all, lies in mining equipment as well as industrial machinery. We solutions to the problems of GEMBA (workplaces). When we assess our business environment today, we mining equipment continued to decline drastically from solutions to the problems of GEMBA (workplaces). project that demand for construction and mining Tasks that customers face in their GEMBA differ must first think about demand for construction and our projection, as impacted by slowing economies of Tasks that customers face in their GEMBA differ When we assess our business environment today, we depending on countries, regions or industries. equipment, in particular, from which we generate 90% mining equipment as well as industrial machinery. We emerging countries ,as well as sluggish commodity depending on countries, regions or industries. must first think about demand for construction and of total sales, will remain very challenging in FY2016 (cid:41)owever, we believe the following represents the major project that demand for construction and mining prices. In particular, demand for mining equipment (cid:41)owever, we believe the following represents the major mining equipment as well as industrial machinery. We and beyond, for some time. (cid:108)Against this backdrop, tasks of our customers, i.e., 1) to meet the shortage of equipment, in particular, from which we generate 90% nose-dived to about 30% of the FY2012 level. tasks of our customers, i.e., 1) to meet the shortage of project that demand for construction and mining how are we going to ensure growth(cid:32)(cid:122) This is the first skilled workers, 2) use of IoT (Internet of Things), 3) to of total sales, will remain very challenging in FY2016 Against this backdrop, we accelerated the speed of skilled workers, 2) use of IoT (Internet of Things), 3) to equipment, in particular, from which we generate 90% task we must address. improve the safety, productivity and environmental and beyond, for some time. (cid:108)Against this backdrop, implementing structural reforms, such as cutting down improve the safety, productivity and environmental of total sales, will remain very challenging in FY2016 performance of their jobsite operations, and 4) to We believe the key to our growth, after all, lies in how are we going to ensure growth(cid:32)(cid:122) This is the first production costs and curbing fixed costs, as we performance of their jobsite operations, and 4) to and beyond, for some time. (cid:108)Against this backdrop, task we must address. solutions to the problems of GEMBA (workplaces). reduce the total cost of ownership of their machines. diligently carried out seeding for future growth, one of reduce the total cost of ownership of their machines. how are we going to ensure growth(cid:32)(cid:122) This is the first Tasks that customers face in their GEMBA differ Today we are also witnessing growing social We believe the key to our growth, after all, lies in the core strategies of the mid-range management Today we are also witnessing growing social task we must address. plan. depending on countries, regions or industries. expectations in relation to ESG (Environmental, Social solutions to the problems of GEMBA (workplaces). expectations in relation to ESG (Environmental, Social We believe the key to our growth, after all, lies in and Governance) from companies. (cid:41)owever, we believe the following represents the major Tasks that customers face in their GEMBA differ and Governance) from companies. solutions to the problems of GEMBA (workplaces). tasks of our customers, i.e., 1) to meet the shortage of We need to keep our full attention on these depending on countries, regions or industries. We need to keep our full attention on these Tasks that customers face in their GEMBA differ business into the future. (cid:41)owever, we believe the following represents the major performance of their jobsite operations, and 4) to skilled workers, 2) use of IoT (Internet of Things), 3) to When we assess our business environment today, we tasks of our customers, i.e., 1) to meet the shortage of reduce the total cost of ownership of their machines. improve the safety, productivity and environmental must first think about demand for construction and skilled workers, 2) use of IoT (Internet of Things), 3) to performance of their jobsite operations, and 4) to Today we are also witnessing growing social mining equipment as well as industrial machinery. We improve the safety, productivity and environmental (1 minute and 5 seconds) expectations in relation to ESG (Environmental, Social reduce the total cost of ownership of their machines. project that demand for construction and mining performance of their jobsite operations, and 4) to and Governance) from companies. Today we are also witnessing growing social equipment, in particular, from which we generate 90% reduce the total cost of ownership of their machines. expectations in relation to ESG (Environmental, Social We need to keep our full attention on these Review of the Previous Mid-range of total sales, will remain very challenging in FY2016 Today we are also witnessing growing social management tasks as we continue to conduct our and Governance) from companies. and beyond, for some time. (cid:108)Against this backdrop, expectations in relation to ESG (Environmental, Social Management Plan business into the future. We need to keep our full attention on these how are we going to ensure growth(cid:32)(cid:122) This is the first and Governance) from companies. management tasks as we continue to conduct our task we must address. We promoted the (cid:108)Together We Innovate GEMBA We need to keep our full attention on these business into the future. management tasks as we continue to conduct our Worldwide(cid:122) mid-range management plan for three We believe the key to our growth, after all, lies in solutions to the problems of GEMBA (workplaces). years from April, 2013 to March, 2016. business into the future. Tasks that customers face in their GEMBA differ During this period, demand for construction and depending on countries, regions or industries. mining equipment continued to decline drastically from (cid:41)owever, we believe the following represents the major our projection, as impacted by slowing economies of tasks of our customers, i.e., 1) to meet the shortage of emerging countries ,as well as sluggish commodity performance of their jobsite operations, and 4) to Against this backdrop, we accelerated the speed of reduce the total cost of ownership of their machines. implementing structural reforms, such as cutting down Today we are also witnessing growing social production costs and curbing fixed costs, as we (2 minutes and 46 seconds) (2 minutes and 46 seconds) expectations in relation to ESG (Environmental, Social diligently carried out seeding for future growth, one of and Governance) from companies. the core strategies of the mid-range management We need to keep our full attention on these plan. Summary of the Last Three Years and Mid to Long-range Projection improve the safety, productivity and environmental tasks of our customers, i.e., 1) to meet the shortage of business into the future. skilled workers, 2) use of IoT (Internet of Things), 3) to management tasks as we continue to conduct our (cid:41)owever, we believe the following represents the major Management Tasks Ahead management tasks as we continue to conduct our depending on countries, regions or industries. Start of the New Mid-range Management Plan Start of the New Mid-range Management Plan improve the safety, productivity and environmental nose-dived to about 30% of the FY2012 level. skilled workers, 2) use of IoT (Internet of Things), 3) to prices. In particular, demand for mining equipment Start of the New Mid-range Management Plan management tasks as we continue to conduct our business into the future. Start of the New Mid-range Management Plan Management Tasks Ahead Start of the New Mid-range Management Plan (2 minutes and 46 seconds) When we assess our business environment today, we must first think about demand for construction and (2 minutes and 46 seconds) mining equipment as well as industrial machinery. We project that demand for construction and mining (2 minutes and 46 seconds) equipment, in particular, from which we generate 90% of total sales, will remain very challenging in FY2016 We project that demand for construction and mining equipment will remain in an adjustment phase for and beyond, for some time. (cid:108)Against this backdrop, We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow how are we going to ensure growth(cid:32)(cid:122) This is the first the time being, centering on emerging countries. In the long range, however, global population will grow and the urbanization rate will increase, especially in emerging countries, which will fuel more civil and the urbanization rate will increase, especially in emerging countries, which will fuel more civil task we must address. engineering and construction works and increase the required volume of minerals. Therefore, we We believe the key to our growth, after all, lies in engineering and construction works and increase the required volume of minerals. Therefore, we believe we can expect a sustainable growth of demand for construction and mining equipment. solutions to the problems of GEMBA (workplaces). believe we can expect a sustainable growth of demand for construction and mining equipment. In the industrial machinery business, we anticipate that capital investment will increase in the Tasks that customers face in their GEMBA differ In the industrial machinery business, we anticipate that capital investment will increase in the automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, depending on countries, regions or industries. automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, albeit with some ups and downs. albeit with some ups and downs. Start of the New Mid-range Management Plan We project that demand for construction and mining equipment will remain in an adjustment phase for Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: tasks of our customers, i.e., 1) to meet the shortage of Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: the time being, centering on emerging countries. In the long range, however, global population will grow Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. skilled workers, 2) use of IoT (Internet of Things), 3) to Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. (cid:41)owever, we believe the following represents the major and the urbanization rate will increase, especially in emerging countries, which will fuel more civil As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth We project that demand for construction and mining equipment will remain in an adjustment phase for improve the safety, productivity and environmental As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth beyond 2021 at a rate above the industry's average. engineering and construction works and increase the required volume of minerals. Therefore, we the time being, centering on emerging countries. In the long range, however, global population will grow performance of their jobsite operations, and 4) to beyond 2021 at a rate above the industry's average. We project that demand for construction and mining equipment will remain in an adjustment phase for (2 minutes and 46 seconds) believe we can expect a sustainable growth of demand for construction and mining equipment. and the urbanization rate will increase, especially in emerging countries, which will fuel more civil reduce the total cost of ownership of their machines. the time being, centering on emerging countries. In the long range, however, global population will grow engineering and construction works and increase the required volume of minerals. Therefore, we In the industrial machinery business, we anticipate that capital investment will increase in the Today we are also witnessing growing social and the urbanization rate will increase, especially in emerging countries, which will fuel more civil automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, believe we can expect a sustainable growth of demand for construction and mining equipment. expectations in relation to ESG (Environmental, Social engineering and construction works and increase the required volume of minerals. Therefore, we albeit with some ups and downs. In the industrial machinery business, we anticipate that capital investment will increase in the and Governance) from companies. believe we can expect a sustainable growth of demand for construction and mining equipment. automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: We need to keep our full attention on these In the industrial machinery business, we anticipate that capital investment will increase in the Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. management tasks as we continue to conduct our albeit with some ups and downs. automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: business into the future. albeit with some ups and downs. beyond 2021 at a rate above the industry's average. Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. beyond 2021 at a rate above the industry's average. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth beyond 2021 at a rate above the industry's average. We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow and the urbanization rate will increase, especially in emerging countries, which will fuel more civil engineering and construction works and increase the required volume of minerals. Therefore, we believe we can expect a sustainable growth of demand for construction and mining equipment. Outline of the New Mid-range Management Plan Outline of the New Mid-range Management Plan In the industrial machinery business, we anticipate that capital investment will increase in the automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, albeit with some ups and downs. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. Start of the New Mid-range Management Plan As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth (3 minutes and 23 seconds) (3 minutes and 23 seconds) Targets Targets beyond 2021 at a rate above the industry's average. Targets of the new mid-range management plan are Outline of the New Mid-range Management Plan Targets of the new mid-range management plan are described in the chart on the right. described in the chart on the right. In addition to profitability, e(cid:9359)ciency, profit redistribution In addition to profitability, e(cid:9359)ciency, profit redistribution Outline of the New Mid-range Management Plan (2 minutes and 46 seconds) Outline of the New Mid-range Management Plan (3 minutes and 23 seconds) (3 minutes and 23 seconds) (3 minutes and 23 seconds) to shareholders and financial position, we have included a to shareholders and financial position, we have included a new key performance indicator. new key performance indicator. We have also separated the retail finance business as a We have also separated the retail finance business as a Targets new operating segment in order to enhance management new operating segment in order to enhance management transparency in the new plan. transparency in the new plan. Targets Targets of the new mid-range management plan are Please see the linked sheet for our projection of Please see the linked sheet for our projection of described in the chart on the right. consolidated business results for FY2016, the first year of consolidated business results for FY2016, the first year of the new plan. Targets of the new mid-range management plan are In addition to profitability, e(cid:9359)ciency, profit redistribution Targets the new plan. to shareholders and financial position, we have included a described in the chart on the right. Targets of the new mid-range management plan are new key performance indicator. In addition to profitability, e(cid:9359)ciency, profit redistribution Cash Dividend Cash Dividend described in the chart on the right. to shareholders and financial position, we have included a We have also separated the retail finance business as a In addition to profitability, e(cid:9359)ciency, profit redistribution In the last three years, we reduced our debt of all new operating segment in order to enhance management new key performance indicator. In the last three years, we reduced our debt of all to shareholders and financial position, we have included a transparency in the new plan. operations, except for the retail finance business, as We have also separated the retail finance business as a operations, except for the retail finance business, as new key performance indicator. planned. Concerning the future use of funds, we will Please see the linked sheet for our projection of new operating segment in order to enhance management planned. Concerning the future use of funds, we will We have also separated the retail finance business as a further consider the redistribution of profits to consolidated business results for FY2016, the first year of transparency in the new plan. the new plan. shareholders, including stock buybacks, while keeping Please see the linked sheet for our projection of shareholders, including stock buybacks, while keeping transparency in the new plan. investment for growth at the center. Specifically, we have consolidated business results for FY2016, the first year of We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow further consider the redistribution of profits to new operating segment in order to enhance management and the urbanization rate will increase, especially in emerging countries, which will fuel more civil Outline of the New Mid-range Management Plan engineering and construction works and increase the required volume of minerals. Therefore, we investment for growth at the center. Specifically, we have Please see the linked sheet for our projection of believe we can expect a sustainable growth of demand for construction and mining equipment. set the policy of a consolidated payout ratio of 40% or the new plan. Cash Dividend set the policy of a consolidated payout ratio of 40% or consolidated business results for FY2016, the first year of In the industrial machinery business, we anticipate that capital investment will increase in the automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, (3 minutes and 23 seconds) higher with no decrease of dividends, as long as the higher with no decrease of dividends, as long as the the new plan. In the last three years, we reduced our debt of all consolidated payout ratio does not surpass 60%. Cash Dividend consolidated payout ratio does not surpass 60%. albeit with some ups and downs. operations, except for the retail finance business, as For FY2016, we are planning annual dividends of JPY58 planned. Concerning the future use of funds, we will per share, the same amount as FY2015. As a result, the In the last three years, we reduced our debt of all per share, the same amount as FY2015. As a result, the further consider the redistribution of profits to consolidated payout ratio should amount to 59.4%. operations, except for the retail finance business, as consolidated payout ratio should amount to 59.4%. Targets of the new mid-range management plan are In the last three years, we reduced our debt of all shareholders, including stock buybacks, while keeping planned. Concerning the future use of funds, we will described in the chart on the right. operations, except for the retail finance business, as beyond 2021 at a rate above the industry's average. investment for growth at the center. Specifically, we have further consider the redistribution of profits to planned. Concerning the future use of funds, we will In addition to profitability, e(cid:9359)ciency, profit redistribution Targets Cash Dividend For FY2016, we are planning annual dividends of JPY58 Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth Outline of the New Mid-range Management Plan set the policy of a consolidated payout ratio of 40% or shareholders, including stock buybacks, while keeping to shareholders and financial position, we have included a further consider the redistribution of profits to higher with no decrease of dividends, as long as the investment for growth at the center. Specifically, we have new key performance indicator. shareholders, including stock buybacks, while keeping consolidated payout ratio does not surpass 60%. set the policy of a consolidated payout ratio of 40% or investment for growth at the center. Specifically, we have We have also separated the retail finance business as a higher with no decrease of dividends, as long as the For FY2016, we are planning annual dividends of JPY58 new operating segment in order to enhance management set the policy of a consolidated payout ratio of 40% or per share, the same amount as FY2015. As a result, the consolidated payout ratio does not surpass 60%. transparency in the new plan. higher with no decrease of dividends, as long as the Strategies Strategies consolidated payout ratio should amount to 59.4%. For FY2016, we are planning annual dividends of JPY58 We defined three core strategies of (cid:108)growth based on consolidated payout ratio does not surpass 60%. Please see the linked sheet for our projection of We defined three core strategies of (cid:108)growth based on per share, the same amount as FY2015. As a result, the innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural consolidated business results for FY2016, the first year of For FY2016, we are planning annual dividends of JPY58 innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural consolidated payout ratio should amount to 59.4%. reforms designed to reinforce our business foundation(cid:122) per share, the same amount as FY2015. As a result, the reforms designed to reinforce our business foundation(cid:122) the new plan. and promoted corresponding efforts in the previous mid- consolidated payout ratio should amount to 59.4%. and promoted corresponding efforts in the previous mid- range management plan. In the new mid-range range management plan. In the new mid-range Cash Dividend management plan, we continue to focus on three core management plan, we continue to focus on three core Strategies strategies of the previous plan. We will strive to accelerate In the last three years, we reduced our debt of all strategies of the previous plan. We will strive to accelerate growth by working to sow the seeds for future growth and operations, except for the retail finance business, as growth by working to sow the seeds for future growth and Strategies We defined three core strategies of (cid:108)growth based on taking further advantage of our group-wide strength of planned. Concerning the future use of funds, we will taking further advantage of our group-wide strength of Strategies innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural IoT, even while demand for construction and mining further consider the redistribution of profits to IoT, even while demand for construction and mining equipment remain sluggish. reforms designed to reinforce our business foundation(cid:122) We defined three core strategies of (cid:108)growth based on shareholders, including stock buybacks, while keeping equipment remain sluggish. and promoted corresponding efforts in the previous mid- Through our IoT, we will connect all GEMBA (workplaces), innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural investment for growth at the center. Specifically, we have Through our IoT, we will connect all GEMBA (workplaces), We defined three core strategies of (cid:108)growth based on range management plan. In the new mid-range consisting of our customers, distributors and production, reforms designed to reinforce our business foundation(cid:122) set the policy of a consolidated payout ratio of 40% or consisting of our customers, distributors and production, innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural management plan, we continue to focus on three core including suppliers, in order to improve the safety and and promoted corresponding efforts in the previous mid- higher with no decrease of dividends, as long as the including suppliers, in order to improve the safety and reforms designed to reinforce our business foundation(cid:122) strategies of the previous plan. We will strive to accelerate productivity of all GEMBA, thereby working to become range management plan. In the new mid-range consolidated payout ratio does not surpass 60%. productivity of all GEMBA, thereby working to become and promoted corresponding efforts in the previous mid- ever more indispensable to our customers. growth by working to sow the seeds for future growth and management plan, we continue to focus on three core For FY2016, we are planning annual dividends of JPY58 ever more indispensable to our customers. range management plan. In the new mid-range taking further advantage of our group-wide strength of strategies of the previous plan. We will strive to accelerate per share, the same amount as FY2015. As a result, the management plan, we continue to focus on three core Targets IoT, even while demand for construction and mining growth by working to sow the seeds for future growth and consolidated payout ratio should amount to 59.4%. strategies of the previous plan. We will strive to accelerate equipment remain sluggish. taking further advantage of our group-wide strength of growth by working to sow the seeds for future growth and IoT, even while demand for construction and mining Through our IoT, we will connect all GEMBA (workplaces), Targets of the new mid-range management plan are taking further advantage of our group-wide strength of consisting of our customers, distributors and production, equipment remain sluggish. described in the chart on the right. IoT, even while demand for construction and mining including suppliers, in order to improve the safety and Through our IoT, we will connect all GEMBA (workplaces), equipment remain sluggish. In addition to profitability, e(cid:9359)ciency, profit redistribution productivity of all GEMBA, thereby working to become consisting of our customers, distributors and production, to shareholders and financial position, we have included a Through our IoT, we will connect all GEMBA (workplaces), ever more indispensable to our customers. including suppliers, in order to improve the safety and new key performance indicator. consisting of our customers, distributors and production, Strategies productivity of all GEMBA, thereby working to become including suppliers, in order to improve the safety and We have also separated the retail finance business as a ever more indispensable to our customers. We defined three core strategies of (cid:108)growth based on new operating segment in order to enhance management productivity of all GEMBA, thereby working to become innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural ever more indispensable to our customers. transparency in the new plan. reforms designed to reinforce our business foundation(cid:122) Please see the linked sheet for our projection of and promoted corresponding efforts in the previous mid- consolidated business results for FY2016, the first year of range management plan. In the new mid-range the new plan. management plan, we continue to focus on three core strategies of the previous plan. We will strive to accelerate Cash Dividend growth by working to sow the seeds for future growth and taking further advantage of our group-wide strength of In the last three years, we reduced our debt of all IoT, even while demand for construction and mining operations, except for the retail finance business, as equipment remain sluggish. planned. Concerning the future use of funds, we will further consider the redistribution of profits to Through our IoT, we will connect all GEMBA (workplaces), consisting of our customers, distributors and production, shareholders, including stock buybacks, while keeping including suppliers, in order to improve the safety and investment for growth at the center. Specifically, we have ESG (Sustainability) ESG (Sustainability) productivity of all GEMBA, thereby working to become set the policy of a consolidated payout ratio of 40% or ever more indispensable to our customers. higher with no decrease of dividends, as long as the consolidated payout ratio does not surpass 60%. For FY2016, we are planning annual dividends of JPY58 per share, the same amount as FY2015. As a result, the Reinforcement of ESG Efforts consolidated payout ratio should amount to 59.4%. Reinforcement of ESG Efforts (9 minutes and 45 seconds) (9 minutes and 45 seconds) (9 minutes and 45 seconds) (9 minutes and 45 seconds) (9 minutes and 45 seconds) (3 minutes and 23 seconds) (9 minutes and 45 seconds) (2 minutes and 53 seconds) (2 minutes and 53 seconds) ESG INFORMATION ESG (Sustainability) 21 For more For more information information (9 minutes and 45 seconds) (2 minutes and 53 seconds) (2 minutes and 53 seconds) (2 minutes and 53 seconds) Please refer to Online Komatsu Report. For more information KOMATSU REPORT 2016 ESG (Sustainability) Over the years, the Komatsu Group has made proactive ESG efforts, namely Over the years, the Komatsu Group has made proactive ESG efforts, namely MANAGEMENT environmental, social and corporate governance. We believe the importance of ESG environmental, social and corporate governance. We believe the importance of ESG efforts will steadily become stronger into the future. In our new mid-range management efforts will steadily become stronger into the future. In our new mid-range management plan, we will maintain focused efforts as we place emphasis on the environment, on plan, we will maintain focused efforts as we place emphasis on the environment, on society and on corporate governance. society and on corporate governance. Strategies ESG (Sustainability) ESG (SUSTAINABILITY) ESG (Sustainability) ESG STRATEGIES Reinforcement of ESG Efforts We defined three core strategies of (cid:108)growth based on 2 2 2 2 2 Through our IoT, we will connect all GEMBA (workplaces), innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural Environmental Conservation Efforts Over the years, the Komatsu Group has made proactive ESG efforts, namely Reinforcement of ESG Efforts Environmental Conservation Efforts reforms designed to reinforce our business foundation(cid:122) environmental, social and corporate governance. We believe the importance of ESG Reinforcement of ESG Efforts and promoted corresponding efforts in the previous mid- The reduction of CO emissions is our efforts will steadily become stronger into the future. In our new mid-range management Over the years, the Komatsu Group has made proactive ESG efforts, namely The reduction of CO emissions is our range management plan. In the new mid-range important task for environmental plan, we will maintain focused efforts as we place emphasis on the environment, on environmental, social and corporate governance. We believe the importance of ESG important task for environmental Over the years, the Komatsu Group has made proactive ESG efforts, namely management plan, we continue to focus on three core conservation. Construction equipment in society and on corporate governance. efforts will steadily become stronger into the future. In our new mid-range management conservation. Construction equipment in environmental, social and corporate governance. We believe the importance of ESG strategies of the previous plan. We will strive to accelerate operation accounts for about 90% of the total plan, we will maintain focused efforts as we place emphasis on the environment, on operation accounts for about 90% of the total efforts will steadily become stronger into the future. In our new mid-range management growth by working to sow the seeds for future growth and amount of CO emissions produced society and on corporate governance. amount of CO emissions produced plan, we will maintain focused efforts as we place emphasis on the environment, on taking further advantage of our group-wide strength of throughout its lifecycle (chart on the right). throughout its lifecycle (chart on the right). society and on corporate governance. IoT, even while demand for construction and mining Environmental Conservation Efforts We will help our customers reduce CO 2 We will help our customers reduce CO 2 equipment remain sluggish. emissions from their machines by considering emissions from their machines by considering The reduction of CO emissions is our environmental performance and applying ICT Environmental Conservation Efforts environmental performance and applying ICT consisting of our customers, distributors and production, important task for environmental to improve fuel consumption, when we to improve fuel consumption, when we Environmental Conservation Efforts including suppliers, in order to improve the safety and conservation. Construction equipment in develop new products. The reduction of CO emissions is our 2 develop new products. productivity of all GEMBA, thereby working to become operation accounts for about 90% of the total important task for environmental The reduction of CO emissions is our 2 ever more indispensable to our customers. amount of CO emissions produced conservation. Construction equipment in important task for environmental throughout its lifecycle (chart on the right). operation accounts for about 90% of the total Reinforcement of ESG Efforts conservation. Construction equipment in We will help our customers reduce CO amount of CO emissions produced 2 operation accounts for about 90% of the total emissions from their machines by considering throughout its lifecycle (chart on the right). Over the years, the Komatsu Group has made proactive ESG efforts, namely amount of CO emissions produced environmental performance and applying ICT We will help our customers reduce CO 2 environmental, social and corporate governance. We believe the importance of ESG throughout its lifecycle (chart on the right). to improve fuel consumption, when we emissions from their machines by considering efforts will steadily become stronger into the future. In our new mid-range management We will help our customers reduce CO 2 develop new products. environmental performance and applying ICT plan, we will maintain focused efforts as we place emphasis on the environment, on emissions from their machines by considering to improve fuel consumption, when we society and on corporate governance. environmental performance and applying ICT develop new products. to improve fuel consumption, when we ESG (Sustainability) 2 2 2 For more For more For more information information For more information Please refer to our website. information http://www.komatsu.com/CompanyInfo/csr/ (2 minutes and 53 seconds) For more information For more information For more information For more information Please refer to our website. http://www.komatsu.com/CompanyInfo/ ir/corporate_governance/ develop new products. Environmental Conservation Efforts The reduction of CO emissions is our 2 important task for environmental conservation. Construction equipment in operation accounts for about 90% of the total amount of CO emissions produced Corporate Social Responsibility Efforts Corporate Social Responsibility Efforts throughout its lifecycle (chart on the right). 2 Please refer to the next page. Please refer to the next page. For more information We will help our customers reduce CO 2 We at the Komatsu Group have set our basic principle to We at the Komatsu Group have set our basic principle to emissions from their machines by considering make CSR efforts through core businesses. Based on this make CSR efforts through core businesses. Based on this environmental performance and applying ICT principle, we would like to engage in social contribution principle, we would like to engage in social contribution to improve fuel consumption, when we activities that make the best use of our strengths to fulfill activities that make the best use of our strengths to fulfill develop new products. our responsibilities to society. our responsibilities to society. ESG (Sustainability) As part of our CSR efforts, under the leadership of As part of our CSR efforts, under the leadership of Corporate Social Responsibility Efforts different Komatsu Group companies around the world, we different Komatsu Group companies around the world, we engage in support activities to solve local problems. engage in support activities to solve local problems. We at the Komatsu Group have set our basic principle to For example, in Japan we provide support to Japan's Corporate Social Responsibility Efforts For example, in Japan we provide support to Japan's make CSR efforts through core businesses. Based on this agriculture business, which is facing serious problems of Reinforcement of ESG Efforts agriculture business, which is facing serious problems of Corporate Social Responsibility Efforts principle, we would like to engage in social contribution aging and no newcomers, by capitalizing on our We at the Komatsu Group have set our basic principle to aging and no newcomers, by capitalizing on our activities that make the best use of our strengths to fulfill manufacturing expertise. make CSR efforts through core businesses. Based on this Over the years, the Komatsu Group has made proactive ESG efforts, namely manufacturing expertise. We at the Komatsu Group have set our basic principle to our responsibilities to society. We will continue to pay close attention to the needs of principle, we would like to engage in social contribution environmental, social and corporate governance. We believe the importance of ESG We will continue to pay close attention to the needs of make CSR efforts through core businesses. Based on this As part of our CSR efforts, under the leadership of local communities around the world in order to deeply activities that make the best use of our strengths to fulfill efforts will steadily become stronger into the future. In our new mid-range management local communities around the world in order to deeply principle, we would like to engage in social contribution different Komatsu Group companies around the world, we anchor the social contribution activities of Komatsu Group our responsibilities to society. plan, we will maintain focused efforts as we place emphasis on the environment, on anchor the social contribution activities of Komatsu Group activities that make the best use of our strengths to fulfill engage in support activities to solve local problems. companies. society and on corporate governance. companies. our responsibilities to society. For example, in Japan we provide support to Japan's different Komatsu Group companies around the world, we As part of our CSR efforts, under the leadership of agriculture business, which is facing serious problems of As part of our CSR efforts, under the leadership of (2 minutes and 53 seconds) In Indonesia we offer scholarships to children in economically poor In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to districts and vocational training and employment opportunities to young people. young people. Please refer to our website. http://www.komatsu.com/ CompanyInfo/csr/ For more For more information For more information information engage in support activities to solve local problems. different Komatsu Group companies around the world, we aging and no newcomers, by capitalizing on our For example, in Japan we provide support to Japan's engage in support activities to solve local problems. manufacturing expertise. agriculture business, which is facing serious problems of Environmental Conservation Efforts For example, in Japan we provide support to Japan's aging and no newcomers, by capitalizing on our We will continue to pay close attention to the needs of agriculture business, which is facing serious problems of manufacturing expertise. local communities around the world in order to deeply The reduction of CO emissions is our aging and no newcomers, by capitalizing on our 2 anchor the social contribution activities of Komatsu Group We will continue to pay close attention to the needs of important task for environmental manufacturing expertise. In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to young people. In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to young people. In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to For more companies. local communities around the world in order to deeply conservation. Construction equipment in Corporate Social Responsibility Efforts We will continue to pay close attention to the needs of anchor the social contribution activities of Komatsu Group operation accounts for about 90% of the total Corporate Governance, Compliance and Risk Management Corporate Governance, Compliance and Risk Management local communities around the world in order to deeply For more For more young people. information companies. amount of CO emissions produced We at the Komatsu Group have set our basic principle to anchor the social contribution activities of Komatsu Group 2 throughout its lifecycle (chart on the right). make CSR efforts through core businesses. Based on this companies. information information For more We will help our customers reduce CO Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize principle, we would like to engage in social contribution Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize emissions from their machines by considering its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by activities that make the best use of our strengths to fulfill its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by 2 information environmental performance and applying ICT society and all its stakeholders. our responsibilities to society. society and all its stakeholders. to improve fuel consumption, when we To increase the total sum of trust, Komatsu needs to not only improve business results but also As part of our CSR efforts, under the leadership of To increase the total sum of trust, Komatsu needs to not only improve business results but also develop new products. enhance the soundness and transparency of management. different Komatsu Group companies around the world, we enhance the soundness and transparency of management. Corporate Governance, Compliance and Risk Management engage in support activities to solve local problems. For example, in Japan we provide support to Japan's Corporate Governance, Compliance and Risk Management agriculture business, which is facing serious problems of Corporate Governance Corporate Governance aging and no newcomers, by capitalizing on our Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize Corporate Governance, Compliance and Risk Management its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by In Indonesia we offer scholarships to children in economically poor manufacturing expertise. We, at Komatsu, believe our corporate value is the total sum of trust given to us by Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize society and all its stakeholders. We, at Komatsu, believe our corporate value is the total sum of trust given to us by We will continue to pay close attention to the needs of young people. society and all stakeholders. To become a company which enjoys even more trust from its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by To increase the total sum of trust, Komatsu needs to not only improve business results but also society and all stakeholders. To become a company which enjoys even more trust from Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize local communities around the world in order to deeply shareholders and all other stakeholders, we are working to strengthen corporate enhance the soundness and transparency of management. society and all its stakeholders. shareholders and all other stakeholders, we are working to strengthen corporate its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by anchor the social contribution activities of Komatsu Group governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure To increase the total sum of trust, Komatsu needs to not only improve business results but also For more governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure society and all its stakeholders. companies. sound management on a group-wide basis. enhance the soundness and transparency of management. sound management on a group-wide basis. To increase the total sum of trust, Komatsu needs to not only improve business results but also For more information For more districts and vocational training and employment opportunities to information information In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas enhance the soundness and transparency of management. Corporate Governance subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated management. To further improve the transparency of management for our shareholders management. To further improve the transparency of management for our shareholders Corporate Governance We, at Komatsu, believe our corporate value is the total sum of trust given to us by and investors, we disclose information in a fair and timely manner and actively engage in and investors, we disclose information in a fair and timely manner and actively engage in society and all stakeholders. To become a company which enjoys even more trust from investor relations' activities by holding meetings with shareholders and investors. investor relations' activities by holding meetings with shareholders and investors. Corporate Governance shareholders and all other stakeholders, we are working to strengthen corporate We, at Komatsu, believe our corporate value is the total sum of trust given to us by governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure society and all stakeholders. To become a company which enjoys even more trust from We, at Komatsu, believe our corporate value is the total sum of trust given to us by sound management on a group-wide basis. shareholders and all other stakeholders, we are working to strengthen corporate society and all stakeholders. To become a company which enjoys even more trust from Corporate Governance, Compliance and Risk Management For more governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas shareholders and all other stakeholders, we are working to strengthen corporate Corporate Social Responsibility Efforts sound management on a group-wide basis. subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure management. To further improve the transparency of management for our shareholders In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas information For more information sound management on a group-wide basis. Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize We at the Komatsu Group have set our basic principle to and investors, we disclose information in a fair and timely manner and actively engage in subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by information For more Compliance Compliance make CSR efforts through core businesses. Based on this investor relations' activities by holding meetings with shareholders and investors. management. To further improve the transparency of management for our shareholders subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated society and all its stakeholders. principle, we would like to engage in social contribution and investors, we disclose information in a fair and timely manner and actively engage in As the importance of corporate social responsibility is growing today, it is indispensable management. To further improve the transparency of management for our shareholders As the importance of corporate social responsibility is growing today, it is indispensable To increase the total sum of trust, Komatsu needs to not only improve business results but also activities that make the best use of our strengths to fulfill investor relations' activities by holding meetings with shareholders and investors. for all companies to respond to social trust by ensuring that each and every employee and investors, we disclose information in a fair and timely manner and actively engage in for all companies to respond to social trust by ensuring that each and every employee enhance the soundness and transparency of management. our responsibilities to society. not only fully understands corporate responsibility but also complies with the Rule of the investor relations' activities by holding meetings with shareholders and investors. not only fully understands corporate responsibility but also complies with the Rule of the As part of our CSR efforts, under the leadership of Business Community, not limited to laws and regulations in a narrow sense. Business Community, not limited to laws and regulations in a narrow sense. different Komatsu Group companies around the world, we In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety engage in support activities to solve local problems. and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Corporate Governance For example, in Japan we provide support to Japan's Compliance agriculture business, which is facing serious problems of Risk Management Compliance We, at Komatsu, believe our corporate value is the total sum of trust given to us by aging and no newcomers, by capitalizing on our Compliance As the importance of corporate social responsibility is growing today, it is indispensable society and all stakeholders. To become a company which enjoys even more trust from manufacturing expertise. Risk Management for all companies to respond to social trust by ensuring that each and every employee shareholders and all other stakeholders, we are working to strengthen corporate We will continue to pay close attention to the needs of not only fully understands corporate responsibility but also complies with the Rule of the As the importance of corporate social responsibility is growing today, it is indispensable governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure local communities around the world in order to deeply We define all states of uncertainty, which can threaten the sustainable growth of the Business Community, not limited to laws and regulations in a narrow sense. for all companies to respond to social trust by ensuring that each and every employee sound management on a group-wide basis. We define all states of uncertainty, which can threaten the sustainable growth of the As the importance of corporate social responsibility is growing today, it is indispensable anchor the social contribution activities of Komatsu Group Komatsu Group. We recognize the problems related to compliance as major risks, in In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety not only fully understands corporate responsibility but also complies with the Rule of the Komatsu Group. We recognize the problems related to compliance as major risks, in In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas for all companies to respond to social trust by ensuring that each and every employee particular, the environment, product quality, accidents, information security and other and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Business Community, not limited to laws and regulations in a narrow sense. subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated particular, the environment, product quality, accidents, information security and other not only fully understands corporate responsibility but also complies with the Rule of the matters, and we are thus implementing corresponding countermeasures. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety management. To further improve the transparency of management for our shareholders matters, and we are thus implementing corresponding countermeasures. Business Community, not limited to laws and regulations in a narrow sense. companies. young people. and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. and investors, we disclose information in a fair and timely manner and actively engage in In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety investor relations' activities by holding meetings with shareholders and investors. and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Risk Management For more For more information information For more For more information For more For more information For more information information For more information information For more information In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to We define all states of uncertainty, which can threaten the sustainable growth of the Risk Management Komatsu Group. We recognize the problems related to compliance as major risks, in Risk Management particular, the environment, product quality, accidents, information security and other We define all states of uncertainty, which can threaten the sustainable growth of the matters, and we are thus implementing corresponding countermeasures. Komatsu Group. We recognize the problems related to compliance as major risks, in Corporate Governance, Compliance and Risk Management Information We define all states of uncertainty, which can threaten the sustainable growth of the Information For more information particular, the environment, product quality, accidents, information security and other Komatsu Group. We recognize the problems related to compliance as major risks, in Compliance matters, and we are thus implementing corresponding countermeasures. information For more particular, the environment, product quality, accidents, information security and other Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize information As the importance of corporate social responsibility is growing today, it is indispensable matters, and we are thus implementing corresponding countermeasures. its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by Corporate Information Corporate Information For more for all companies to respond to social trust by ensuring that each and every employee society and all its stakeholders. not only fully understands corporate responsibility but also complies with the Rule of the To increase the total sum of trust, Komatsu needs to not only improve business results but also Business Community, not limited to laws and regulations in a narrow sense. enhance the soundness and transparency of management. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety Download PDF Download PDF Information and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. For more Site Map Site Map information Corporate Governance Information Corporate Information Information Risk Management We, at Komatsu, believe our corporate value is the total sum of trust given to us by Corporate Information STRATEGIES STRATEGIES society and all stakeholders. To become a company which enjoys even more trust from Summary of the Last Three Years and Mid to Long-range Projection We define all states of uncertainty, which can threaten the sustainable growth of the Summary of the Last Three Years and Mid to Long-range Projection shareholders and all other stakeholders, we are working to strengthen corporate Corporate Information Review of the Previous Mid-range Management Plan Komatsu Group. We recognize the problems related to compliance as major risks, in governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure Review of the Previous Mid-range Management Plan Download PDF Management Tasks Ahead particular, the environment, product quality, accidents, information security and other Management Tasks Ahead sound management on a group-wide basis. Start of the New Mid-range Management Plan matters, and we are thus implementing corresponding countermeasures. Start of the New Mid-range Management Plan In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas Download PDF Outline of the New Mid-range Management Plan Outline of the New Mid-range Management Plan subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated ESG Download PDF Targets management. To further improve the transparency of management for our shareholders Strategies and investors, we disclose information in a fair and timely manner and actively engage in Targets Strategies STRATEGIES investor relations' activities by holding meetings with shareholders and investors. Growth Strategies Based on Innovation Summary of the Last Three Years and Mid to Long-range Projection Growth Strategies Based on Innovation GEMBA Report: Moving forward with customers: Reporting from a jobsite of Review of the Previous Mid-range Management Plan GEMBA Report: Moving forward with customers: Reporting from a jobsite of STRATEGIES SMARTCONSTRUCTION SMARTCONSTRUCTION STRATEGIES Management Tasks Ahead Summary of the Last Three Years and Mid to Long-range Projection Growth Strategies of Existing Businesses Growth Strategies of Existing Businesses Start of the New Mid-range Management Plan Review of the Previous Mid-range Management Plan GEMBA Reports: Reinforcing GEMBA Efforts in Asia Summary of the Last Three Years and Mid to Long-range Projection GEMBA Reports: Reinforcing GEMBA Efforts in Asia Outline of the New Mid-range Management Plan Management Tasks Ahead Structural Reforms Designed to Reinforce the Business Foundation Review of the Previous Mid-range Management Plan Structural Reforms Designed to Reinforce the Business Foundation Targets Start of the New Mid-range Management Plan Information MANAGEMENT MANAGEMENT To All Our Stakeholders To All Our Stakeholders FY2015 Performance Site Map FY2015 Performance For more Management Principle and The KOMATSU Management Principle and The KOMATSU information For more Way Way Site Map information ESG Site Map ESG (Sustainability) ESG (Sustainability) Environmental Indexes Environmental Indexes MANAGEMENT Corporate Governance, Compliance and Corporate Governance, Compliance and Risk Management To All Our Stakeholders Risk Management Management Principle and The KOMATSU Corporate Information To All Our Stakeholders INFORMATION FY2015 Performance MANAGEMENT INFORMATION Way Corporate Information MANAGEMENT Download PDF FY2015 Performance Download PDF To All Our Stakeholders Site Map FY2015 Performance ESG (Sustainability) Way ESG Site Map Management Principle and The KOMATSU Corporate Information Environmental Indexes ESG Way Management Principle and The KOMATSU Management Tasks Ahead Strategies Outline of the New Mid-range Management Plan For further details, please click here Start of the New Mid-range Management Plan For further details, please click here Compliance Outline of the New Mid-range Management Plan Growth Strategies Based on Innovation Financial conditions: Targets Strategies Financial conditions: Securities Report Securities Report Social activities: Social activities: CSR report CSR report Targets As the importance of corporate social responsibility is growing today, it is indispensable GEMBA Report: Moving forward with customers: Reporting from a jobsite of SMARTCONSTRUCTION Strategies for all companies to respond to social trust by ensuring that each and every employee Growth Strategies Based on Innovation Growth Strategies of Existing Businesses not only fully understands corporate responsibility but also complies with the Rule of the GEMBA Report: Moving forward with customers: Reporting from a jobsite of Copyright © 2016 Komatsu Ltd. All rights reserved Download PDF Growth Strategies Based on Innovation GEMBA Reports: Reinforcing GEMBA Efforts in Asia SMARTCONSTRUCTION Business Community, not limited to laws and regulations in a narrow sense. GEMBA Report: Moving forward with customers: Reporting from a jobsite of Structural Reforms Designed to Reinforce the Business Foundation Growth Strategies of Existing Businesses In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety SMARTCONSTRUCTION Copyright © 2016 Komatsu Ltd. All rights reserved GEMBA Reports: Reinforcing GEMBA Efforts in Asia and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Growth Strategies of Existing Businesses Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here GEMBA Reports: Reinforcing GEMBA Efforts in Asia Financial conditions: Social activities: Structural Reforms Designed to Reinforce the Business Foundation Securities Report CSR report For further details, please click here STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Financial conditions: Social activities: For further details, please click here Risk Management Securities Report Review of the Previous Mid-range Management Plan Financial conditions: Social activities: Copyright © 2016 Komatsu Ltd. All rights reserved CSR report Environmental Report Management Tasks Ahead We define all states of uncertainty, which can threaten the sustainable growth of the Securities Report CSR report Environmental Report Management Principle and The KOMATSU Start of the New Mid-range Management Plan Komatsu Group. We recognize the problems related to compliance as major risks, in Copyright © 2016 Komatsu Ltd. All rights reserved Way Outline of the New Mid-range Management Plan particular, the environment, product quality, accidents, information security and other Copyright © 2016 Komatsu Ltd. All rights reserved ESG Targets matters, and we are thus implementing corresponding countermeasures. ESG (Sustainability) Corporate Governance, Compliance and ESG (Sustainability) ESG Environmental performance: Environmental performance: Environmental Report Risk Management Environmental Indexes Environmental Report ESG (Sustainability) INFORMATION Corporate Governance, Compliance and Environmental Indexes Risk Management Corporate Information Corporate Governance, Compliance and Site Map Download PDF INFORMATION Risk Management Site Map Corporate Information For more INFORMATION Download PDF information Corporate Information Site Map Download PDF Environmental performance: Site Map Environmental Report MANAGEMENT Environmental performance: To All Our Stakeholders FY2015 Performance Environmental performance: For more information Environmental Indexes Corporate Governance, Compliance and Risk Management INFORMATION Corporate Information Download PDF Site Map Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation Information For further details, please click here Financial conditions: Securities Report Social activities: Environmental performance: CSR report Corporate Information Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Download PDF Site Map Management Tasks Ahead Management Principle and The KOMATSU STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes INFORMATION Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Print Download PDF KOMATSU REPORT 2016 Environmental Indexes KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Environmental Indexes 22 ENVIRONMENTAL INDEXES Reducing CO Emissions in Manufacturing Operations 2 Amount of Waste Generated Purchase Electricity Water Used and Index Per Units of Manufacturing (cid:55)alue in Japan* * Re(cid:113)ects results of the reviews of the data on KC(cid:57) for the year of 2009 and earlier STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Management Tasks Ahead Our Surrounding Environment and Tasks Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies GEMBA Report: Moving forward with customers: Reporting from a jobsite of Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here Financial conditions: Securities Report Copyright © 2016 Komatsu Ltd. All rights reserved Management Principle and The KOMATSU MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes Corporate Information Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Summary of the Last Three Years and Mid to Long-range Projection Japanese Print Download PDF (1 minute and 5 seconds) Review of the Previous Mid-range Management Plan We promoted the (cid:108)Together We Innovate GEMBA Worldwide(cid:122) mid-range management plan for three years from April, 2013 to March, 2016. During this period, demand for construction and mining equipment continued to decline drastically from our projection, as impacted by slowing economies of emerging countries ,as well as sluggish commodity prices. In particular, demand for mining equipment nose-dived to about 30% of the FY2012 level. Against this backdrop, we accelerated the speed of implementing structural reforms, such as cutting down production costs and curbing fixed costs, as we diligently carried out seeding for future growth, one of the core strategies of the mid-range management plan. Management Tasks Ahead When we assess our business environment today, we must first think about demand for construction and mining equipment as well as industrial machinery. We project that demand for construction and mining equipment, in particular, from which we generate 90% of total sales, will remain very challenging in FY2016 and beyond, for some time. (cid:108)Against this backdrop, how are we going to ensure growth(cid:32)(cid:122) This is the first task we must address. We believe the key to our growth, after all, lies in solutions to the problems of GEMBA (workplaces). Tasks that customers face in their GEMBA differ depending on countries, regions or industries. (cid:41)owever, we believe the following represents the major tasks of our customers, i.e., 1) to meet the shortage of skilled workers, 2) use of IoT (Internet of Things), 3) to improve the safety, productivity and environmental performance of their jobsite operations, and 4) to reduce the total cost of ownership of their machines. Today we are also witnessing growing social expectations in relation to ESG (Environmental, Social and Governance) from companies. We need to keep our full attention on these management tasks as we continue to conduct our business into the future. Start of the New Mid-range Management Plan (2 minutes and 46 seconds) We project that demand for construction and mining equipment will remain in an adjustment phase for the time being, centering on emerging countries. In the long range, however, global population will grow and the urbanization rate will increase, especially in emerging countries, which will fuel more civil engineering and construction works and increase the required volume of minerals. Therefore, we believe we can expect a sustainable growth of demand for construction and mining equipment. In the industrial machinery business, we anticipate that capital investment will increase in the automobile and semiconductor industries. Accordingly, demand should remain steady for a few years, albeit with some ups and downs. Based on these assumptions, we embarked on the new (cid:108)Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond(cid:122) mid-range management plan in April 2016. As we look into our 100th anniversary in 2021, we are working to maintain our sustainable growth beyond 2021 at a rate above the industry's average. Outline of the New Mid-range Management Plan (3 minutes and 23 seconds) Targets Targets of the new mid-range management plan are described in the chart on the right. In addition to profitability, e(cid:9359)ciency, profit redistribution to shareholders and financial position, we have included a new key performance indicator. We have also separated the retail finance business as a new operating segment in order to enhance management transparency in the new plan. Please see the linked sheet for our projection of consolidated business results for FY2016, the first year of the new plan. Cash Dividend In the last three years, we reduced our debt of all operations, except for the retail finance business, as planned. Concerning the future use of funds, we will further consider the redistribution of profits to shareholders, including stock buybacks, while keeping investment for growth at the center. Specifically, we have set the policy of a consolidated payout ratio of 40% or higher with no decrease of dividends, as long as the consolidated payout ratio does not surpass 60%. For FY2016, we are planning annual dividends of JPY58 per share, the same amount as FY2015. As a result, the consolidated payout ratio should amount to 59.4%. Strategies We defined three core strategies of (cid:108)growth based on innovation(cid:122), (cid:108)growth of existing businesses(cid:122) and (cid:108)Structural reforms designed to reinforce our business foundation(cid:122) and promoted corresponding efforts in the previous mid- range management plan. In the new mid-range management plan, we continue to focus on three core strategies of the previous plan. We will strive to accelerate growth by working to sow the seeds for future growth and taking further advantage of our group-wide strength of IoT, even while demand for construction and mining equipment remain sluggish. Through our IoT, we will connect all GEMBA (workplaces), consisting of our customers, distributors and production, including suppliers, in order to improve the safety and productivity of all GEMBA, thereby working to become ever more indispensable to our customers. (9 minutes and 45 seconds) ESG (Sustainability) (2 minutes and 53 seconds) Reinforcement of ESG Efforts Over the years, the Komatsu Group has made proactive ESG efforts, namely environmental, social and corporate governance. We believe the importance of ESG efforts will steadily become stronger into the future. In our new mid-range management plan, we will maintain focused efforts as we place emphasis on the environment, on society and on corporate governance. For more information Environmental Conservation Efforts The reduction of CO emissions is our 2 important task for environmental conservation. Construction equipment in operation accounts for about 90% of the total amount of CO emissions produced 2 throughout its lifecycle (chart on the right). We will help our customers reduce CO 2 emissions from their machines by considering environmental performance and applying ICT to improve fuel consumption, when we develop new products. For more information Corporate Social Responsibility Efforts We at the Komatsu Group have set our basic principle to make CSR efforts through core businesses. Based on this principle, we would like to engage in social contribution activities that make the best use of our strengths to fulfill our responsibilities to society. As part of our CSR efforts, under the leadership of different Komatsu Group companies around the world, we engage in support activities to solve local problems. For example, in Japan we provide support to Japan's agriculture business, which is facing serious problems of aging and no newcomers, by capitalizing on our manufacturing expertise. We will continue to pay close attention to the needs of young people. local communities around the world in order to deeply anchor the social contribution activities of Komatsu Group companies. For more information In Indonesia we offer scholarships to children in economically poor districts and vocational training and employment opportunities to KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Corporate Governance, Compliance and Risk Management 23 CORPORATE GOVERNANCE, COMPLIANCE AND RISK MANAGEMENT Corporate Governance, Compliance and Risk Management Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by society and all its stakeholders. To increase the total sum of trust, Komatsu needs to not only improve business results but also enhance the soundness and transparency of management. Corporate Governance We, at Komatsu, believe our corporate value is the total sum of trust given to us by society and all stakeholders. To become a company which enjoys even more trust from shareholders and all other stakeholders, we are working to strengthen corporate governance, improve management e(cid:9359)ciency, advocate corporate ethics and ensure sound management on a group-wide basis. In April 2016, we appointed top management o(cid:9359)cers of Komatsu Group's overseas For more information subsidiaries to the posts of Global O(cid:9359)cers in order to strengthen globally consolidated management. 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 Please refer to our website. http://www.komatsu.com/Company- Info/ir/corporate_governance/ investor relations' activities by holding meetings with shareholders and investors. Please refer to our website. http://www.komatsu.com/CompanyInfo/profile/outline/board.html Compliance As the importance of corporate social responsibility is growing today, it is indispensable for all companies to respond to social trust by ensuring that each and every employee not only fully understands corporate responsibility but also complies with the Rule of the Business Community, not limited to laws and regulations in a narrow sense. In addition, the Komatsu Group is strongly conscious of its slogan of SLQDC, i.e., Safety and Law take priority over Quality, Delivery and Cost, as it works to ensure compliance. Risk Management We define all states of uncertainty, which can threaten the sustainable growth of the Komatsu Group. We recognize the problems related to compliance as major risks, in particular, the environment, product quality, accidents, information security and other matters, and we are thus implementing corresponding countermeasures. For more information Please refer to our website. http://www.komatsu.com/Company- Info/csr/2016/society/society02.html For more information Please refer to our website. http://www.komatsu.com/Company- Info/csr/2016/society/society03.html Information Corporate Information Download PDF Site Map Management Tasks Ahead Management Principle and The KOMATSU STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes INFORMATION Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved KOMATSU REPORT 2016 MANAGEMENT STRATEGIES ESG INFORMATION Japanese Print Download PDF KOMATSU REPORT 2016 INFORMATION Corporate Information Corporate Information 24 CORPORATE INFORMATION (As of March 31, 2016) Outline Name (cid:41)ead O(cid:9359)ce Komatsu Ltd. 2-3-6 Akasaka, Minato-ku, Tokyo 10(cid:24)-8414, Japan Date of Establishment May 13, 1921 Common Stock Outstanding Consolidated: (cid:61)6(cid:24),8(cid:24)0 million based on U.S. GAAP Non-consolidated: (cid:61)(cid:24)0,120 million Number of Employees Consolidated: 4(cid:24),01(cid:24) (Komatsu Ltd. and 141 consolidated subsidiaries) Non-consolidated: 10,449 Shareholder Information Shares of Common Stock Issued and Outstanding 943,224,(cid:24)53 shares (excluding 28,(cid:24)42,90(cid:24) shares of treasury stock) Number of Shareholders 198,28(cid:24) Number of Shares per Trading Unit 100 Securities Code Stock Listings 6301 (Japan) Tokyo Transfer Agent for Common Stock(cid:16)Management Mitsubishi UFJ Trust and Banking Corporation Institution for Special Account 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan Depositaries (ADRs) Major Shareholders N a m e o f S h a r e h o l d e r s The Bank of New York Mellon 101 Barclay Street, New York, NY 10286, U.S.A. Tel: (cid:12)1-(201)-680-6825 for international calls and 888-269-23(cid:24)(cid:24) (888-BNY-ADRS) for calls within U.S.A. URL: http:(cid:16)(cid:16)www.adrbnymellon.com Ticker Symbol: KMTUY N u m b e r o f S h a r e s (cid:41) e l d S h a r e h o l d i n g ( t h o u s a n d s h a r e s ) R a t i o ( % ) Japan Trustee Services Bank, Ltd. (Trust Account) The Master Trust Bank of Japan, Ltd. (Trust Account) State Street Bank and Trust Company 505223 (Standing proxy: Mizuho Bank, Ltd., Settlement (cid:7) Clearing Services Division) Taiyo Life Insurance Company Nippon Life Insurance Company Sumitomo Mitsui Banking Corporation The Bank of New York Mellon SA(cid:16)N(cid:55) 10 (Standing proxy: The Bank of Tokyo-Mitsubishi UFJ, Ltd.) State Street Bank West Client - Treaty 505234 (Standing proxy: Mizuho Bank, Ltd., Settlement (cid:7) Clearing Services Division) Japan Trustee Services Bank, Ltd. (Trust Account (cid:24)) The Bank of New York Mellon as Depositary Bank for Depositary Receipt (cid:41)olders (Standing proxy: Sumitomo Mitsui Banking Corporation) 4(cid:24),(cid:24)24 45,252 38,809 34,000 26,626 1(cid:24),835 16,5(cid:24)4 13,(cid:24)29 13,128 12,230 5.05 4.(cid:24)9 4.11 3.60 2.82 1.89 1.(cid:24)5 1.45 1.39 1.29 Notes: 1) Shareholding ratio is calculated by subtracting treasury stock. 2) Although the Company holds 28,(cid:24)42 thousand shares of treasury stock, it is excluded from the major shareholders listed above. Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange Management Tasks Ahead Management Principle and The KOMATSU STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes Information Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved Japanese Print Download PDF KOMATSU REPORT 2016 Corporate Information Outline Name (cid:41)ead O(cid:9359)ce (As of March 31, 2016) Komatsu Ltd. 2-3-6 Akasaka, Minato-ku, Tokyo 10(cid:24)-8414, Japan Date of Establishment May 13, 1921 Common Stock Outstanding Consolidated: (cid:61)6(cid:24),8(cid:24)0 million based on U.S. GAAP Non-consolidated: (cid:61)(cid:24)0,120 million Number of Employees Consolidated: 4(cid:24),01(cid:24) (Komatsu Ltd. and 141 consolidated subsidiaries) Non-consolidated: 10,449 Shareholder Information Shares of Common Stock Issued and Outstanding 943,224,(cid:24)53 shares (excluding 28,(cid:24)42,90(cid:24) shares of treasury stock) Number of Shareholders 198,28(cid:24) Number of Shares per Trading Unit 100 Securities Code Stock Listings 6301 (Japan) Tokyo Transfer Agent for Common Stock(cid:16)Management Mitsubishi UFJ Trust and Banking Corporation Institution for Special Account 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan Depositaries (ADRs) KOMATSU REPORT 2016 Major Shareholders N a m e o f S h a r e h o l d e r s The Bank of New York Mellon 101 Barclay Street, New York, NY 10286, U.S.A. Tel: (cid:12)1-(201)-680-6825 for international calls and 888-269-23(cid:24)(cid:24) (888-BNY-ADRS) for calls within U.S.A. URL: http:(cid:16)(cid:16)www.adrbnymellon.com MANAGEMENT STRATEGIES Ticker Symbol: KMTUY ESG INFORMATION Corporate Information 25 N u m b e r o f S h a r e s (cid:41) e l d S h a r e h o l d i n g ( t h o u s a n d s h a r e s ) R a t i o ( % ) Japan Trustee Services Bank, Ltd. (Trust Account) The Master Trust Bank of Japan, Ltd. (Trust Account) State Street Bank and Trust Company 505223 (Standing proxy: Mizuho Bank, Ltd., Settlement (cid:7) Clearing Services Division) Taiyo Life Insurance Company Nippon Life Insurance Company Sumitomo Mitsui Banking Corporation The Bank of New York Mellon SA(cid:16)N(cid:55) 10 (Standing proxy: The Bank of Tokyo-Mitsubishi UFJ, Ltd.) State Street Bank West Client - Treaty 505234 (Standing proxy: Mizuho Bank, Ltd., Settlement (cid:7) Clearing Services Division) Japan Trustee Services Bank, Ltd. (Trust Account (cid:24)) The Bank of New York Mellon as Depositary Bank for Depositary Receipt (cid:41)olders (Standing proxy: Sumitomo Mitsui Banking Corporation) 4(cid:24),(cid:24)24 45,252 38,809 34,000 26,626 1(cid:24),835 16,5(cid:24)4 13,(cid:24)29 13,128 12,230 5.05 4.(cid:24)9 4.11 3.60 2.82 1.89 1.(cid:24)5 1.45 1.39 1.29 Notes: 1) Shareholding ratio is calculated by subtracting treasury stock. 2) Although the Company holds 28,(cid:24)42 thousand shares of treasury stock, it is excluded from the major shareholders listed above. Breakdown of Shareholders Stock Prices on the Tokyo Stock Exchange Please refer to our website. http://www.komatsu.com/CompanyInfo/ir/ Management Tasks Ahead Management Principle and The KOMATSU STRATEGIES Summary of the Last Three Years and Mid to Long-range Projection Review of the Previous Mid-range Management Plan Start of the New Mid-range Management Plan Outline of the New Mid-range Management Plan Targets Strategies Growth Strategies Based on Innovation SMARTCONSTRUCTION Growth Strategies of Existing Businesses GEMBA Report: Moving forward with customers: Reporting from a jobsite of GEMBA Reports: Reinforcing GEMBA Efforts in Asia Structural Reforms Designed to Reinforce the Business Foundation For further details, please click here MANAGEMENT To All Our Stakeholders FY2015 Performance Way ESG ESG (Sustainability) Environmental Indexes Information Corporate Information Download PDF Site Map Corporate Governance, Compliance and Risk Management Financial conditions: Securities Report Social activities: CSR report Environmental performance: Environmental Report Copyright © 2016 Komatsu Ltd. All rights reserved KOMATSU 2-3-6, Akasaka, Minato-ku, Tokyo 107-8414, Japan http://www.komatsu.co.jp/ Corporate Communications Department Phone : +81-3-5561-2616 Fax : +81-3-3505-9662 e-mail : info@komatsu.co.jp