FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of December, 2001
COMMISSION FILE NUMBER: 1-7239
KOMATSU LTD.
...............................................
Translation of registrant's name into English
3-6 Akasaka 2-chome, Minato-ku, Tokyo, Japan
............................................
Address of principal executive offices
- 2 -
INFORMATION TO BE INCLUDED IN REPORT
------------------------------------
1. Information Distributed to Security Holders
-------------------------------------------
The registrant, KOMATSU LTD., distributed, or made available from
its web-site, to its security holders either or both of the following
two documents:
(1) Interim Report for 2002 (as of September 30, 2001) relative to the
133rd Fiscal Period; original prepared and distributed in the Japanese
language which is not attached hereto as it is covered by the
Semi-Annual Report referred to in (2) below;
(2) Semi-Annual Report 2002 for the six-month period ended September 30,
2001, prepared in the English language, which is attached hereto and
constitutes a part hereof.
2. Information Required to Make Public
-----------------------------------
Pursuant to Article 24-5 of the Securities Exchange Law of Japan
(Law No. 25 of 1948, as amended hereinafter the "Law"), the registrant
filed on December 20, 2001 with the Director of the Kanto Local Finance
Bureau of the Ministry of Finance of Japan and eight stock exchanges in
Japan a Semi-Annual Report (hanki-hokokusho) for the 133rd Fiscal
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Period from April 1, 2001 to September 30, 2001 prepared in the
Japanese language. Said Semi-Annual Report (hanki-hokokusho) was made
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public in Japan by the Kanto Local Finance Bureau and by those
exchanges. All significant information contained therein and required
to be included herein is contained in the document identified in Item
1.(2) above attached hereto and made a part hereof.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
KOMATSU LTD.
--------------------------------
(Registrant)
Date: December 28, 2001 By: /s/ Kenji Kinoshita
--------------------------------
Kenji Kinoshita
Executive Officer
Semi-Annual Report 2002
Six-month period ended September 30, 2001
[GRAPHIC]
A Message to Our Shareholders
Financial Highlights
Review of Operations
News Briefs
Consolidated Balance Sheets (Unaudited)
Consolidated Statements of Income and Unappropriated Retained Earnings
(Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Business Information (Unaudited)
Nonconsolidated Balance Sheets
Nonconsolidated Statements of Income and Unappropriated Retained Earnings
Directors and Officers
Corporate Information
Cautionary Statement
This semi-annual report contains forward-looking statements that reflect
management's views and assumptions in the light of information currently
available with respect to certain future events, including expected financial
position, operating results and business strategies. These statements can be
identified by the use of terms such as "will," "believes," "should," "projects"
and similar terms and expressions that identify future events or expectations.
Actual results may differ materially from those projected, and the events and
results of such forward-looking assumptions cannot be assured.
Factors that may cause actual results to differ materially from those
predicted by such forward-looking statements include, but are not limited to,
unanticipated changes in demand for the Company's principal products owing to
changes in the economic conditions in the Company's principal markets; changes
in exchange rates; the impact of increased competition; unanticipated costs or
delays encountered in achieving the Company's objectives with respect to
globalized product sourcing and new Information Technology tools; uncertainties
as to the results of the Company's research and development efforts and its
ability to obtain and project certain intellectual property rights; and the
impact of regulatory changes and revisions to accounting principles and
practices.
A Message to Our Shareholders
[PHOTO]
Board of Directors
Front row, from left:
Tetsuya Katada
Satoru Anzaki
Masahiro Sakane
Toshitaka Hagiwara
Back row, from left:
Kazuhiro Aoyagi
Koji Ogaki
Toshio Morikawa
Kunio Noji
During the fiscal 2002 interim period, ended September 30, 2001, international
economies in general slowed down, and their prospects became even more uncertain
under the effects of the terrorist attacks in the United States and other
adverse developments. In Japan, the recessionary economy has been further
deteriorating, with sharp drops in exports and production of the manufacturing
industries, as well as reduced corporate earnings and capital outlays.
In overseas markets for mining and construction equipment, we saw recovery
in demand for mining equipment and continued expansion of the Chinese market. At
the same time, however, we also faced sluggish conditions in the North American
market and slowing demand in European markets, which had demonstrated steady
growth over the past few years. As a result, overall overseas demand remained
slack during the period. In Japan, the government has cut back public
investments as part of its urgent measures to accelerate structural reforms.
This initiative has had considerable impact on the construction equipment
market, including psychological factors, resulting in a drastic drop in demand
from the corresponding period last year.
Our electronics businesses also faced a very tough market environment on
the whole. International markets for semiconductors deteriorated rapidly,
recording the worst fall of demand in their history in 2001. Demand for silicon
wafers was no exception, with a large decline. Demand for thermoelectric modules
for use in fiber optic communication networks also fell sharply, in part as a
rebound from outstanding growth over last fiscal year.
Interim Results
Komatsu posted consolidated net sales of (Yen)505.4 billion (US$4,248 million,
at US$1=(Yen)119) for the interim period under review, a decline of 8.8% from
the corresponding period last year. However, the Company registered a
consolidated operating loss of (Yen)5.3 billion (US$45 million), compared to
operating income of (Yen)12.8 billion for the fiscal 2001 interim period. A
consolidated net loss of (Yen)42.6 billion (US$359 million) was posted for the
interim period, compared to net income of (Yen)3.1 billion a year earlier, which
largely reflects (Yen)38.3 billion (US$323 million) for the impairment of fixed
assets of two subsidiaries engaging in the electronics business.
On a nonconsolidated basis, net sales for the interim period amounted to
(Yen)183.3 billion (US$1,541 million), down 11.4% from the corresponding
period last year. Ordinary profit decreased 39.9%, to (Yen)2.5 billion (US$22
million) for the interim period under review. The Company has to report a net
loss of (Yen)21.9 billion (US$184 million) for the six-month period, compared to
net income of (Yen)3.7 billion for the previous corresponding period. Concerning
interim cash dividends, the Board of Directors meeting, held on November 9 this
year, set (Yen)3.0 (2.5 U.S. cents) per share, the same as those for the
corresponding period a year ago, despite the interim net loss mentioned above.
Reform of Management Structure
To overcome such difficult management conditions, we have recently embarked on a
groupwide program to reform our management structure in order to improve
earnings for the early recovery of our performance. To build and solidly a
corporate structure capable of securing stable earnings, we are firmly
determined to accomplish a consequential amount of reduction in our fixed and
production costs. At the same time, we are prepared to execute a number of
decisive measures designed to accelerate the growth of our core business of
construction and mining equipment. Under the leadership of the newly established
Committee for Structural Reform, we are resolute in our goal of generating
positive outcomes.
Reduction of Fixed Costs
We will, first of all, reduce fixed costs thoroughly. Our fixed costs, higher
than those of our competitors in the international marketplace, have resulted in
a weighty factor pressing our earnings. We will commit ourselves in this effort
and score a reduction of (Yen)30.0 billion by the end of March 2004 from the
current level on a consolidated basis. We are going to curtail a substantial
amount of manpower costs and SG&A expenses through consolidation of separate
businesses, reorganization and operational rationalization on a groupwide basis.
In Japan, especially, we are prepared to cut down overhead costs by offering
early retirement and transferring employees to affiliated companies in order to
reinforce business operations and improve earnings of both Komatsu and
affiliated companies. Specifically, we are planning to include approximately
(Yen)23.0 billion as a temporary expense for both early retirement and transfers
of employees to affiliated companies for the second half of fiscal 2002.
Sizable Cutbacks of Production Costs
Next, we are working to cut down our production costs worldwide. With full
deployment of our technologies and expertise based on the "spirits of
manufacturers" gained in Japanese plants over the years, we are set to reduce
production costs at our offshore plants. To attain notable results, we will work
to lower our costs substantially in the product development phase, in addition
to conventional cost reduction programs. Moreover, in addition to our continued
alliance with Cummins Inc. in the area of engines, we will also look into global
alliances for production as represented by the recent announcement of
cooperation with Volvo Construction Equipment for development and production of
components for construction equipment.
To Renew Growth of Our Construction and Mining Equipment Business
To maintain and enhance our profitability in the Japanese market, where demand
for construction equipment has remained depressed, we have striven to expand
after-sale businesses such as rental and used equipment, parts and services,
while continuing to develop creative products as represented by the GALEO
series, by committing ourselves to technology innovation. Such initiatives mean
a reform of our business structure itself, and these new business models are
indispensable for further growth in Japan. By capitalizing on our advantage from
Komatsu machines in use, which outnumber other brands in the Japanese market,
and utilizing IT, we are ready to aggressively expand our business in downstream
markets in line with the lifecycle of equipment.
Demand for construction and mining equipment in overseas markets has grown
in a long-range time span. Therefore, we consider the current, difficult market
conditions as temporary adjustments in the supply and demand cycle. We are
focusing our business expansion in the major markets of North America and
Europe, as well as the rapidly expanding Chinese market, where we are going to
implement proactive measures by region and product line in order to enhance our
global market position.
Impairment of Fixed Assets of Subsidiaries in the Electronics Business
In our electronics business, we recorded impairment losses on fixed assets of
two subsidiaries in the United States during the interim period in response to
the drastic deterioration of market conditions for silicon wafers.
Concerning Komatsu Silicon America, Inc., we had planned to reuse it as a
production facility for silicon wafers. However, it is projected that market
recovery may be delayed longer than anticipated earlier. In this light, we have
changed our policy to consider a wider range of options, including the
possibility of disposal. In the meantime, we will continue our silicon wafer
business by focusing on Komatsu Electronic Metals Co., Ltd. and Formosa Komatsu
Silicon Corporation, as before.
Demand for polycrystalline silicon as a material for silicon wafers has
also weakened further since the spring of this year. Advanced Silicon Materials
LLC.'s plant in Montana is unlikely to maintain a sufficient rate of operation
in the foreseeable future. Thus, we recorded an impairment loss of their fixed
assets.
For Komatsu to overcome the current difficult times and achieve an upturn
in its performance, it is imperative that all employees of the Komatsu Group, in
addition, of course, to top management, work together with individual talents
and actions for their respective businesses. We are firmly determined to improve
our earnings and make an early recovery of our business results. To this end,
all employees will strive to accomplish the reform of our management structure
with the spirit of unity and in superior teamwork, while each and every employee
fully demonstrates his or her capabilities.
On behalf of members of the Board, we would like to extend our sincere
appreciation to our valued shareholders, customers, business partners and
employees around the world for their continued support.
December 2001
/s/Satoru Anzaki /s/Masahiro Sakane
Satoru Anzaki Masahiro Sakane
Chairman of the Board President
Financial Highlights
Komatsu Ltd. and subsidiaries
For the six months ended September 30, 2001 and 2000, of fiscal 2002 and 2001,
and fiscal 2001 ended March 31, 2001
Thousands of
U.S. dollars
Millions of yen (except per share
(except per share amounts) amounts)
--------------------------------------------- ------------------
Consolidated 2002 2001 2001 2002
------------------------------------------------------------------- -------------- ------------------
Sales (Yen)505,455 (Yen)554,530 (Yen)1,096,369 $4,247,521
Japan 239,542 288,922 586,865 2,012,958
Overseas 265,913 265,608 509,504 2,234,563
Operating income (loss) (5,320) 12,839 27,815 (44,706)
Income (loss) before income taxes,
minority interests and equity in
earnings (50,857) 11,195 20,064 (427,370)
Net income (loss) (42,665) 3,152 6,913 (358,529)
Net income (loss) per share -- basic (44.69) 3.29 7.24 (37.6)(cents)
Total assets 1,300,430 1,388,875 1,403,195 10,927,983
Total shareholders' equity 424,210 472,002 474,257 3,564,790
Total shareholders' equity per share 444.45 493.46 497.12 3.73
Capital expenditures 28,690 30,076 79,310 241,092
Research and development
expenses 21,391 22,682 45,282 179,756
--------------------------------------------------------------------------------------------------------
Notes: 1. The accompanying consolidated financial information is prepared in
accordance with generally accepted accounting principles in the United
States.
2. The translations of Japanese yen amounts into United States dollar
amounts are included solely for convenience and have been made at the
rate of (Yen)119 to U.S.$1, the approximate rate of exchange at
September 28, 2001.
Net Sales Operating Income (Loss) Net Income (Loss)
(Billions of Yen) (Billions of Yen) (Billions of Yen)
--------------------------- --------------------------- ----------------------------
[PLOT POINTS TO COME] [PLOT POINTS TO COME] [PLOT POINTS TO COME]
--------------------------- --------------------------- ----------------------------
1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
Thousands of
U.S. dollars
Millions of yen (except per share
(except per share amounts) amounts)
---------------------------------- ----------------
Nonconsolidated 2002 2001 2001 2002
--------------------------------------------------------------- ----------- ----------------
Sales (Yen)183,367 (Yen)206,929 (Yen)430,270 $1,540,907
Japan 117,074 131,833 283,148 983,815
Overseas 66,293 75,096 147,122 557,092
Operating income 1,941 4,804 14,181 16,313
Ordinary profit 2,587 4,307 11,281 21,743
Net income (loss) (21,909) 3,719 7,222 (184,113)
Net income (loss) per share -- basic (22.85) 3.87 7.52 (19.2)(CENTS)
Dividends per share 3.00 3.00 6.00 2.5(CENTS)
Total assets 704,622 752,793 765,446 5,921,196
Total shareholders' equity 445,007 478,652 473,794 3,739,562
Total shareholders' equity per share 464.07 499.16 494.09 3.90
Capital expenditures 5,862 7,104 20,478 49,261
Research and development expenses 13,147 14,474 28,682 110,483
----------------------------------------------------------------------------------------------------------
Notes: 1. Yen figures of less than one million are omitted.
2. The translations of Japanese yen amounts into United States dollar
amounts are included solely for convenience and have been made at the
rate of (Yen)119 to U.S.$1, the approximate rate of exchange at
September 28, 2001.
Net Sales Ordinary Profit Net Income (Loss)
(Billions of yen) (Billions of yen) (Billions of yen)
------------------------ ------------------------ ------------------------
(PLOT POINTS TO COME) (PLOT POINTS TO COME) (PLOT POINTS TO COME)
------------------------ ------------------------ ------------------------
1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
Review of Operations
Construction and Mining Equipment
Consolidated net sales of the construction and mining equipment business for the
interim period declined 2.7% from the corresponding period last year, to
(Yen)353.0 billion (US$2,967 million). Nonconsolidated net sales amounted to
(Yen)156.9 billion (US$1,319 million), registering a decrease of 10.9%.
Japanese sales for the interim period fell 9.2% from the corresponding
period last year, to (Yen)129.6 billion (US$1,089 million) on a consolidated
basis, while nonconsolidated sales in Japan were (Yen)93.8 billion (US$789
million), down 10.6%. Total demand for construction equipment in Japan dropped
more than anticipated, as the Japanese construction industry became increasingly
reluctant to make equipment investments, because of a recessionary mindset
compounded by reduced public investments.
Against this backdrop, Komatsu embarked on full-scale market launches of
the new-generation construction equipment GALEO series and worked to expand
sales during the interim period. We also accelerated our involvement in
downstream markets. Together with our distributors and affiliated rental
companies nationwide, we reinforced our sales-rental-service integrated
initiatives and application-specific sales of new machines. Furthermore, we
continued to offer our customers value programs such as management strategy
seminars, strengthening our relationship with customers.
IT (Information Technology) is a very effective means for us to sharpen our
product competitiveness and differentiation. We introduced our original KOMTRAX
machine operation management system to selected models of the GALEO series as a
standard feature. Based on real-time information concerning the conditions of
equipment, we are now positioned to effectively deliver new services and
establish new business models in which we will be able to help our customers
reduce their total costs.
Consolidated overseas sales improved 1.5% over the corresponding period
last year, to (Yen)223.4 billion (US$1,878 million). Nonconsolidated overseas
sales decreased 11.3%, to (Yen)63.1 billion (US$530 million).
In North America, market demand for construction equipment slipped further,
largely due to reduced equipment investment by customers who were concerned
about uncertainty over the economy, inventory cutbacks by rental customers and
other negative developments. Against this backdrop, we converged efforts in
sales of new machines such as minimal rear-swing radius hydraulic excavators,
but fell short of improving sales over the corresponding period last year.
In Europe, while major markets such as France sustained firm demand, demand
sharply dropped in the largest European market of Germany. As a result, European
demand, which had continued to expand since 1997, underwent a downturn for the
interim period under review.
Chinese demand for construction equipment continued to sustain the momentum
of rapid expansion carried over the last few years. Already with a wealth of
business experience over many years, we further reinforced our business, as
represented by the establishment of Komatsu (China) Ltd. in February, and
accomplished substantial growth in sales over the corresponding period a year
ago. In Southeast Asia, recovery of demand for construction equipment was
delayed amid political turmoil in Indonesia and the Philippines, and our sales
declined slightly from the corresponding period last year. However, we expect to
improve sales for fiscal 2002 over the previous year, as demand for mining and
other equipment is recovering in Indonesia in line with progress toward
political stability.
Demand in the mining equipment market has been growing substantially,
supported by demand for fleet renewals against the backdrops of the stabilized
price of copper and increased price of coal. We have been expanding sales of
super-large dump trucks, in particular, in which we enjoy the high evaluation of
customers for high rates of operation and levels of reliability.
Worldwide demand for utility equipment, which had expanded steadily,
declined under the effects of slowed demand in the major markets of North
America and Europe. While we project a continued trend toward decreased demand
into the second half, we are prepared to expand our market share and sales by
introducing new models and expanding sales in regions other than North America
and Europe. We are also planning to launch production in 2002 at a new plant
currently under construction in South Carolina, U.S.A. With this local
production, we will strive to expand sales in the North American market.
[GRAPHIC]
In line with the market launch of our GALEO series equipment, we held the "2001
New Product Debut" in Osaka and Yokohama in July by inviting some 3,000
customers nationwide. We demonstrated our solutions in 10 different market
segments ranging from civil engineering, urban civil engineering and quarrying
to recycling and coastal and underwater construction.
[GRAPHIC]
Komatsu Botswana (Pty) Ltd., a subsidiary of Komatsu Southern Africa (Pty) Ltd.,
has recently delivered new fleets of large dump trucks and bulldozers to two
mines owned by Debswana Diamond Company, a joint venture formed between the
Botswana government and De Beers. Shown is one of the 730E dump trucks delivered
in January 2001.
Electronics
Consolidated net sales of electronic products dropped 26.2% from the previous
corresponding period, to (Yen)41.0 billion (US$345 million) for the interim
period under review, as they were adversely affected by worldwide IT-triggered
sluggish economies. Our nonconsolidated sales declined 45.4%, to (Yen)2.2
billion (US$19 million) for the interim period.
On a nonconsolidated basis, sales of electronic products decreased from the
corresponding period last year, as expanded sales of network terminals and new
wireless LAN products were offset by dropped sales of FA-use panel computers and
programmable displays.
Komatsu Electronic Metals Co., Ltd. secured profits on a nonconsolidated
basis, while the market conditions for silicon wafers remained sluggish. In
addition to reinforcing sales and service operations, the company worked to
improve corporate strength by cutting total costs with substantial reduction of
fixed costs. Formosa Komatsu Silicon Corporation, its subsidiary, worked to
expand its product mix and export sales. However, it fell short of absorbing a
loss associated with the start-up cost in Taiwan, where the semiconductor market
was hit hardest.
Advanced Silicon Materials LLC., in an effort to meet a drastic decline of
demand for polycrystalline silicon for semiconductors, strove to expand sales of
both polycrystalline silicon for use in solar batteries and silane. However,
sales for the interim period declined from the previous corresponding period. In
addition to the reduced sales, the company also faced an increased burden of
electric power rates due to the change in power companies. As a result of
expanded production costs, the company reported an operating loss for the
interim period. In relation to the cancellation of power supply contracts, the
company included a penalty of (Yen)7.6 billion (US$64 million) as nonoperating
income for the interim period, which was paid by the electric power company that
had canceled the supply contract. The company also reported an impairment loss
of (Yen)13.4 billion (US$113 million) on fixed assets of its Butte Plant, based
on future cash flows.
Komatsu Electronics, Inc. experienced a drastic decline in sales of
thermoelectric modules for use in fiber optic communication networks, compared
to outstanding sales up through last year. The drop in sales during the interim
period reflects reduced investments and inventory adjustments by
telecommunication equipment manufacturers. Despite these conditions, the company
continued to focus its efforts in the development of next-generation products.
Sales of semiconductor manufacturing related equipment also dropped sharply for
the interim period as client manufacturers refrained from equipment investments.
GIGAPHOTON INC., a company accounted for by the equity method and in charge
of the Excimer laser business, focused on research and development of
industry-pacesetting, next-generation technologies and the realignment of global
sales networks. As a result, the company advanced sales for the interim period
over the previous corresponding period, despite adverse effects of investment
cutbacks by semiconductor manufacturers. With heavy expenses appropriated to new
product development, however, the company was not able to significantly improve
earnings for the interim period.
[GRAPHIC]
GIGAPHOTON has commercialized the next-generation ArF laser G40A series for
steppers.
Others
Consolidated net sales of the industrial machinery and other businesses totaled
(Yen)111.3 billion (US$936 million), an 18.1% decline from the corresponding
period a year ago. Nonconsolidated sales decreased 9.4%, to (Yen)24.1 billion
(US$203 million).
On a nonconsolidated basis, our large press business improved sales over
the previous corresponding period. We set up an operations system capable of
meeting different needs and expectations of customers promptly, thereby
contributing to their business expansion, such as the Japanese automobile
industry, our major customer. As a result, sales for the interim period expanded
over the corresponding period a year ago.
Komatsu Industries Corporation, in charge of sheet metal forming machinery
and small and medium-sized presses, advanced sales for the interim period, while
the press and machine tool industries faced a very difficult environment with a
downturn in industry-wide orders received. The success of the company reflects
the positive outcome of proposal-oriented sales activities and expanded demand
for medium-sized presses from automotive-related manufacturers who need larger
equipment. Since the start of the new management board in 1999, the company has
continued to increase orders, sales and earnings, achieving improvements for the
past four consecutive interim periods.
While Japanese demand for agricultural equipment slowed down, Komatsu
Zenoah Co. expanded sales of machinery for environmental conservation to the
lease and rental industries in Japan. The company also registered buoyant sales
of outdoor power equipment in North America and Europe supported by outstanding
growth in orders for blowers developed for North America.
Komatsu Forklift Co. launched renewed models of 2-ton shovel loaders and
expanded its market share substantially. The company continued to forge its
alliance relationship with Linde AG of Germany, including sales of Linde-made
forklift trucks in Japan since October 2000. The company also enjoyed successful
production of its engine-powered forklift trucks for Europe at Fiat OM Carrelli
Elevatori S.p.A. in Italy since the production start-up in January 2001. While
the company concerted its efforts to expand sales both in Japan and overseas and
enhance product competitiveness, they were offset by adverse effects from a
drastic fall of demand for industrial vehicles in the United States. As a
result, while sales for the interim period dropped sharply from the
corresponding period last year, the company maintained earnings at a minimal
decline.
Concerning our business with Japan's Defense Agency, sales were steady
during the interim period but declined from the previous corresponding period.
Sales of environmental control and systems slipped considerably.
Sales by Operation (Consolidated)
For the six months ended September 30, 2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
------------------------- ----------------
2002 2001 2002
--------------------------------------------------------------------------------
Construction and mining equipment (Yen)353,072 (Yen)362,919 $2,966,992
Electronics 41,048 55,599 344,941
Others 111,335 136,012 935,588
--------------------------------------------------------------------------------
Total (Yen)505,455 (Yen)554,530 $4,247,521
--------------------------------------------------------------------------------
[CHART]
For the six months ended September 30, 2001
Construction and mining equipment 69.9%
Electronics 8.1%
Others 22.0%
Sales by Region (Consolidated)
For the six months ended September 30, 2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
-------------------------- ---------------
2002 2001 2002
-------------------------------------------------------------------------------
Japan (Yen)239,542 (Yen)288,922 $2,012,958
Americas 120,470 129,787 1,012,353
Europe 62,248 66,019 523,092
Asia (excluding Japan) and Oceania 62,252 58,128 523,126
Middle East and Africa 20,943 11,674 175,992
--------------------------------------------------------------------------------
Total (Yen)505,455 (Yen)554,530 $4,247,521
--------------------------------------------------------------------------------
[CHART]
For the six months ended September 30, 2001
Japan 47.4%
Americas 23.8%
Europe 12.3%
Asia (excluding Japan) and Oceania 12.3%
Middle East and Africa 4.2%
Sales by Operation (Nonconsolidated)
For the six months ended September 30, 2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
-------------------------- ----------------
2002 2001 2002
------------------------------------------------------------------------------------
Construction and mining equipment (Yen)156,958 (Yen)176,122 $1,318,981
Electronics 2,266 4,148 19,047
Others 24,142 26,659 202,878
------------------------------------------------------------------------------------
Total (Yen)183,367 (Yen)206,929 $1,540,907
------------------------------------------------------------------------------------
Note: Yen figures of less than one million are omitted.
[CHART]
Construction and
Mining Equipment 85.6%
Others 13.2%
Electronics 1.2%
For the six months ended September 30, 2001
Sales by Region (Nonconsolidated)
For the six months ended September 30, 2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
------------------- ---------------
2002 2001 2002
--------------------------------------------------------------------------------
Japan (Yen)117,074(Yen)131,833 $ 983,815
Americas 20,000 27,713 168,067
Europe 17,253 19,614 144,983
Asia (excluding Japan) and Oceania 17,948 19,076 150,824
Middle East and Africa 11,091 8,693 93,202
--------------------------------------------------------------------------------
Total (Yen)183,367(Yen)206,929 $1,540,907
--------------------------------------------------------------------------------
Note: Yen figures of less than one million are omitted.
[CHART]
Asia (excluding Japan) and
Oceania 9.8%
Europe 9.4%
Americas 10.9%
Middle East and Africa 6.1%
Japan 63.8%
For the Six Months Ended September 30, 2001
News Briefs
New-Generation GALEO Series Machines Launched
We embarked on full-scale market launchings of new-generation construction and
mining equipment in the GALEO series in May this year. Starting with our
in-house developed HM400 articulated dump truck, we had already introduced a
total of 11 new models in hydraulic excavators, bulldozers, wheel loaders and
dump trucks as of the end of the interim period under review. We have
incorporated the latest technologies in each model of the GALEO series on our
committed criteria of safety, environmental conservation and productivity.
[GRAPHIC]
GALEO
[GRAPHIC]
PC78US Hydraulic excavator
[GRAPHIC]
D39X Bulldozer
[GRAPHIC]
PC200 Hydraulic excavator
[GRAPHIC]
BZ210 Mobile soil stabilizer/recycler
[GRAPHIC]
WA470 Wheel loader
Cumulative Sales of 2,000 Units Achieved for the Mobile Crusher/Recycler Series
During the interim period under review, we accomplished cumulative sales of
2,000 units of the mobile crusher/recycler series of our original construction
equipment exclusively designed for use in environmental conservation.
In 1992, we led others in the market introduction of a mobile debris
crusher developed with our technological expertise in construction equipment.
Ever since, we have been widely advocating the on-site recycling construction
method, as our machines can take advantage of mobility and recycle wastes from
jobsites, such as stone, concrete, wood and soil. Positioned as the frontrunner
of construction equipment for environmental conservation, we are committed to
providing solutions to customers' concerns for environmental protection.
One-Sided Plasma Spot Welding Machine Developed
Jointly with Toyota Auto Body Co., Ltd., we have successfully developed the one-
sided plasma spot welding machine (patent pending). Utility and reliability have
already been confirmed in the production line at Toyota Auto Body. Today, the
two contrary properties of light weight and high rigidity are increasingly
expected from automotive bodies in light of environmental protection and safety.
As an innovative technology, the newly developed one-sided plasma spot welding
enables auto body manufacturers to achieve this task.
[GRAPHIC]
One-sided plasma spot welding machine in operation at Toyota Auto Body
Our Panel Computers Go to Local Community Network
We have delivered some 2,000 units of our WebLight network information terminal
to the town of Ooi, a small rural community of 2,000 households on the coast of
the Japan Sea. While our WebLight terminals are developed for industrial
applications, the town office has installed them to all households as home-use
information terminals as part of its local information network plan. Under this
plan, the town office is offering a wide range of information services,
including public administration, local news and e-mail communication among
residents. Our WebLight terminals were chosen for easy operation, application
and management.
[GRAPHIC]
Senior citizens and other residents have taken the introductory course, where
they learned how to use our WebLight terminals.
Consolidated Balance Sheets (Unaudited)
Komatsu Ltd. and subsidiaries
As of September 30, 2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
----------------------------- ------------------
2002 2001 2002
-------------------------------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents (yen)29,138 (yen)54,713 $244,857
Time deposits 2,764 899 23,227
Marketable securities - 1,196 -
Trade notes and accounts receivables, 342,228 388,019 2,875,866
less allowance for doubtful
receivables
Inventories 253,713 238,458 2,132,042
Other current assets 102,195 104,450 858,781
-------------------------------------------------------------------------------------------------
Total current assets 730,038 787,735 6,134,773
-------------------------------------------------------------------------------------------------
Investments 83,483 101,304 701,538
-------------------------------------------------------------------------------------------------
Property, plant and equipment 397,665 426,502 3,341,723
-- less accumulated depreciation
-------------------------------------------------------------------------------------------------
Other assets 89,244 73,334 749,949
-------------------------------------------------------------------------------------------------
Total (yen)1,300,430 (yen)1,388,875 $10,927,983
-------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Thousands of
Millions of yen U.S. dollars
-------------------------------- ------------------
2002 2001 2002
--------------------------------------------------------------------------------------------------------------------------------
Current liabilities
Short-term debt (including current (yen)191,595 (yen)237,525 $1,610,042
maturities of long-term debt)
Trade notes and accounts payable 178,308 209,221 1,498,387
Income taxes payable 4,584 7,729 38,521
Other current liabilities 134,051 125,561 1,126,479
------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 508,538 580,036 4,273,429
------------------------------------------------------------------------------------------------------------------------------
Long-term liabilities 321,564 288,544 2,702,218
------------------------------------------------------------------------------------------------------------------------------
Minority interests 46,118 48,293 387,546
------------------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Common stock 67,870 67,870 570,336
Capital surplus 117,439 117,366 986,882
Retained earnings:
Appropriated for legal reserve 20,859 20,692 175,286
Unappropriated 251,121 299,634 2,110,261
Accumulated other comprehensive income (loss) (30,167) (31,809) (253,504)
Treasury stock (2,912) (1,751) (24,471)
------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 424,210 472,002 3,564,790
------------------------------------------------------------------------------------------------------------------------------
Total (yen)1,300,430 (yen)1,388,875 $10,927,983
------------------------------------------------------------------------------------------------------------------------------
Accumulated other comprehensive
income (loss):
Foreign currency translation adjustments (yen)(23,022) (yen)(39,427) $(193,462)
Net unrealized holding gains on 3,741 12,151 31,437
securities available for sale
Pension liability adjustments (10,518) (4,533) (88,387)
Net unrealized gains (losses) on
derivative instruments (368) - (3,092)
Note: The translations of Japanese yen amounts into United States dollar amounts
are included solely for convenience and have been made at the rate of
(Yen)119 to U.S.$1, the approximate rate of exchange at September 28,
2001.
Consolidated Statements of Income and Unappropriated Retained
Earnings (Unaudited)
Komatsu Ltd. and subsidiaries
For the six months ended September 30, 2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
-------------------------------- ------------------
2002 2001 2002
----------------------------------------------------------------------------------------------------------------------------
Revenues
Net sales (Yen)505,455 (Yen)554,530 $4,247,521
Interest and other income 15,993 19,649 134,395
----------------------------------------------------------------------------------------------------------------------------
Total 521,448 574,179 4,381,916
----------------------------------------------------------------------------------------------------------------------------
Costs and expenses
Cost of sales 381,666 409,592 3,207,277
Selling, general and administrative 129,109 132,099 1,084,950
Interest 9,045 10,805 76,008
Other 52,485 10,488 441,051
----------------------------------------------------------------------------------------------------------------------------
Total 572,305 562,984 4,809,286
----------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes, (50,857) 11,195 (427,370)
minority interests and equity in earnings
Income taxes (5,502) 8,631 (46,235)
Minority interests in income (loss) of 2,123 54 17,841
consolidated subsidiaries
Equity in earnings (losses) of affiliated companies 567 534 4,765
----------------------------------------------------------------------------------------------------------------------------
Net income (loss) (42,665) 3,152 (358,529)
----------------------------------------------------------------------------------------------------------------------------
Unappropriated retained earnings at 300,499 305,483 2,525,202
beginning of the period
Decrease resulting from the change of (3,705) - (31,135)
fiscal year for certain consolidated subsidiaries
Cash dividends paid (2,867) (2,900) (24,092)
Transfer to retained earnings (141) (261) (1,185)
appropriated for legal reserve
Retirement of treasury stock - (5,840) -
----------------------------------------------------------------------------------------------------------------------------
Unappropriated retained earnings
at end of the period (Yen)251,121 (Yen)299,634 $2,110,261
----------------------------------------------------------------------------------------------------------------------------
Yen U.S.cents
-------------------------- ---------------
2002 2001 2002
----------------------------------------------------------------------------
Net income (loss) per share:
Basic (yen)(44.69) (yen)3.29 (37.6)(cents)
Diluted - - -
Dividends per share 3.00 3.00 2.5
----------------------------------------------------------------------------
Notes: 1. Based on Statement of Financial Accounting Standards (SFAS)
No.130,"Reporting Comprehensive Income" aggregated net loss for the
six months ended September 30, 2001 and 2000, were (Yen)53,075 million
(US$446,008 thousand) and (Yen)9,067 million, respectively.
2. At the beginning of fiscal 2002, the Company changed the consolidated
closing date for certain overseas subsidiaries from December 31 to
March 31. As a result, unappropriated retained earnings decreased by
(Yen)3,705 million (US$31,134 thousand), and other comprehensive
income increased by (Yen)9,447 million (US$79,387 thousand).
3. Effective from fiscal 2002, the Company adopted SFAS No.133,
"Accounting for Derivative Instruments and Hedging Activities" and
SFAS No.138, "Accounting for Derivative Instruments and Certain
Hedging Activities, an Amendment of FASB Statement No.133."
Consolidated Statements of Cash Flows (Unaudited)
Komatsu Ltd. and subsidiaries
For the six months ended September 30, 2001, of fiscal 2002
Thousands of
Millions of yen U.S. dollars
----------------------- ------------------
2002 2001 2002
-----------------------------------------------------------------------------------------------------------
Operating activities
Net income (loss) (YEN)(42,665) (YEN)3,152 $(358,529)
Adjustments to reconcile net
income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization 31,474 33,841 264,487
Provision (reversal) for deferred
income taxes (8,631) (4,526) (72,529)
Net loss (gain) from marketable 5,756 (11,835) 48,370
securities and investments
Gain on sales of property (1,430) (2,369) (12,017)
Loss on disposal or sale of
fixed assets 1,065 2,120 8,949
Impairment loss on long-lived assets 38,394 4,279 322,639
Provision (reversal) for (2,464) 4,464 (20,706)
postretirement benefits, net
Changes in assets and liabilities:
Decrease (increase) in trade
receivables 45,219 (19,981) 379,992
Decrease (increase) in inventories 10,177 (15,254) 85,521
Increase (decrease) in trade payables (32,278) 27,659 (271,244)
Increase (decrease) in income taxes
payable (5,360) (1,112) (45,042)
Other, net 2,536 830 21,311
-----------------------------------------------------------------------------------------------------------
Net cash provided by
operating activities 41,793 21,268 351,202
-----------------------------------------------------------------------------------------------------------
Investing activities
Capital expenditures (24,316) (30,076) (204,336)
Proceeds from sales of property 7,128 11,891 59,899
Proceeds from sales of marketable 1,313 52,057 11,034
securities and investments
Purchases of marketable securities
and investments (741) (30,442) (6,227)
Acquisition or sale of subsidiaries - (2,510) -
Collection of loan receivables 2,960 2,315 24,874
Disbursement of loan receivables (4,290) (2,644) (36,050)
Decrease (increase) in time deposits (1,655) 16 (13,908)
-----------------------------------------------------------------------------------------------------------
Net cash provided by (used in)
investing activities (19,601) 607 (164,714)
-----------------------------------------------------------------------------------------------------------
Financing activities
Proceeds from long-term debt (Yen)35,618 (Yen)6,972 $299,311
Repayments on long-term debt (25,258) (30,983) (212,252)
Increase (decrease) in short-term debt (39,899) (14,188) (335,286)
Repayments of Capital lease (2,446) - (20,555)
Sales (repurchase) of common stock net 201 (6,485) 1,689
Dividends paid (2,867) (2,900) (24,092)
---------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (34,651) (47,584) (291,185)
---------------------------------------------------------------------------------------------------------------------
Effect of exchange rate change 19 (54) 159
on cash and cash equivalents
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents (12,440) (25,763) (104,538)
Cash and cash equivalents, beginning of year 39,760 80,476 334,118
Adjustments for change of fiscal 1,818 - 15,277
period on consolidated subsidiaries
---------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year (Yen)29,138 (Yen)54,713 $244,857
---------------------------------------------------------------------------------------------------------------------
Consolidated Business Information (Unaudited)
Komatsu Ltd. and subsidiaries
As of September 30, 2001 and 2000 as well as for the six months ended September
30, 2001 and 2000, of fiscal 2002 and 2001
Information by business unit
Thousands of
Millions of yen U.S. dollars
--------------------------------- ------------------------
2002 2001 2002
--------------------------------------------------------------------------------------------------------------
Net sales:
Construction and mining equipment (Yen)356,892 (Yen)366,297 $2,999,092
Electronics 41,199 55,823 346,210
Others 125,683 162,171 1,056,160
--------------------------------------------------------------------------------------------------------------
Total 523,774 584,291 4,401,462
Corporate and elimination (18,319) (29,761) (153,941)
--------------------------------------------------------------------------------------------------------------
Consolidated (Yen)505,455 (Yen)554,530 $4,247,521
--------------------------------------------------------------------------------------------------------------
Operating income (loss):
Construction and mining equipment (Yen)282 (Yen)13,300 $2,370
Electronics (4,850) (2,520) (40,756)
Others 2,390 3,992 20,083
--------------------------------------------------------------------------------------------------------------
Total (2,178) 14,772 (18,303)
Corporate and elimination (3,142) (1,933) (26,403)
--------------------------------------------------------------------------------------------------------------
Consolidated operating income (loss) (5,320) 12,839 (44,706)
Interest and other income 15,993 19,649 134,395
Interest expense 9,045 10,805 76,008
Other expenses 52,485 10,488 441,051
--------------------------------------------------------------------------------------------------------------
Consolidated income (loss) before income taxes (Yen)(50,857) (Yen)11,195 ($427,370)
--------------------------------------------------------------------------------------------------------------
Consolidated Business Information (Unaudited)
Komatsu Ltd. and subsidiaries
As of September 30, 2001 and 2000 as well as for the six months
ended September 30, 2001 and 2000, of fiscal 2002 and 2001
Information by business unit
------------------------------------------
Thousands of
Millions of yen U.S. dollars
------------------- -----------------
2002 2001 2002
--------------------------------------------------------------------------------------------------
Identifiable assets:
Construction and mining equipment (Yen)836,855 (Yen)746,382 $7,032,395
Electronics 186,226 236,944 1,564,925
Others 241,184 288,222 2,026,756
--------------------------------------------------------------------------------------------------
Total 1,264,265 1,271,548 10,624,076
Corporate and elimination 36,165 117,327 303,907
--------------------------------------------------------------------------------------------------
Consolidated (Yen)1,300,430 (Yen)1,388,875 $10,927,983
--------------------------------------------------------------------------------------------------
Depreciation and amortization:
Construction and mining equipment (Yen)18,051 (Yen)14,693 $151,689
Electronics 9,092 9,680 76,403
Others 3,772 8,197 31,698
--------------------------------------------------------------------------------------------------
Total 30,915 32,570 259,790
Corporate and elimination 14 - 118
--------------------------------------------------------------------------------------------------
Consolidated (Yen)30,929 (Yen)32,570 $259,908
--------------------------------------------------------------------------------------------------
Capital expenditures:
Construction and mining equipment (Yen)20,241 (Yen)15,085 $170,092
Electronics 2,843 3,783 23,891
Others 5,606 11,208 47,109
--------------------------------------------------------------------------------------------------
Consolidated (Yen)28,690 (Yen)30,076 $241,092
--------------------------------------------------------------------------------------------------
2/4
Geographic information
Net sales recognized by sales destination for the six months ended September 30,
2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
-------------------------- ----------------------
2002 2001 2002
---------------------------------------------------------------------------------------------
Japan (Yen)239,542 (Yen)288,922 $2,012,958
Americas 120,470 129,787 1,012,353
Europe 62,248 66,019 523,092
Asia (excluding Japan) and Oceania 62,252 58,128 523,126
Middle East and Africa 20,943 11,674 175,992
---------------------------------------------------------------------------------------------
Consolidated (Yen)505,455 (Yen)554,530 $4,247,521
---------------------------------------------------------------------------------------------
Net sales recognized by geographic origin and long-lived assets at September 30,
2001 and 2000, of fiscal 2002 and 2001
Thousands of
Millions of yen U.S. dollars
-------------------------- ----------------------
2002 2001 2002
---------------------------------------------------------------------------------------------
Net sales:
Japan (Yen)280,025 (Yen)322,099 $2,353,151
U.S.A. 125,362 131,310 1,053,462
Europe 53,401 58,851 448,748
Others 46,667 42,270 392,160
---------------------------------------------------------------------------------------------
Total (Yen)505,455 (Yen)554,530 $4,247,521
---------------------------------------------------------------------------------------------
Long-lived assets:
Japan (Yen)316,528 (Yen)312,442 $2,659,899
U.S.A. 103,072 126,980 866,152
Europe 10,941 8,772 91,941
Others 31,012 29,107 260,605
---------------------------------------------------------------------------------------------
Total (Yen)461,553 (Yen)477,301 $3,878,597
---------------------------------------------------------------------------------------------
Note: No individual country within Europe or other areas had a material
impact on net sales or long-lived assets. There were no sales to a
single major external customer during the six months ended September
30, 2001 and 2000, of fiscal 2002 and 2001.
Thousands of
Millions of yen U.S. dollars
-------------------- ------------------
Information by region 2002 2001 2002
----------------------------------------------------------------------------------------------------------------------------
Net sales:
Japan (Yen)336,342 (Yen)399,882 $2,826,403
Americas 133,174 134,783 1,119,109
Europe 57,967 63,817 487,118
Others 49,555 42,375 416,429
Corporate and elimination (71,583) (86,327) (601,538)
----------------------------------------------------------------------------------------------------------------------------
Consolidated (Yen)505,455 (Yen)554,530 $4,247,521
----------------------------------------------------------------------------------------------------------------------------
Operating income (loss):
Japan (Yen)(1,311) (Yen)12,655 ($11,017)
Americas (2,390) (677) (20,084)
Europe 1,388 2,799 11,664
Others (420) (45) (3,529)
Corporate and elimination (2,587) (1,893) (21,740)
----------------------------------------------------------------------------------------------------------------------------
Consolidated (Yen)(5,320) (Yen)12,839 ($44,706)
----------------------------------------------------------------------------------------------------------------------------
Identifiable assets:
Japan (Yen)971,306 (Yen)995,798 $8,162,235
Americas 314,375 321,563 2,641,807
Europe 78,157 77,751 656,782
Others 95,352 91,786 801,277
Corporate assets and elimination (158,760) (98,023) (1,334,118)
----------------------------------------------------------------------------------------------------------------------------
Consolidated (Yen)1,300,430 (Yen)1,388,875 $10,927,983
----------------------------------------------------------------------------------------------------------------------------
Overseas sales:
Thousands of
Millions of yen U.S. dollars
-------------------- ------------------
2002 2001 2002
----------------------------------------------------------------------------------------------------------------------------
Americas (Yen)120,470 (Yen)129,787 $1,012,353
23.8% 23.4%
Europe 62,248 66,019 523,092
12.3% 11.9%
Others 83,195 69,802 699,118
16.5% 12.6%
----------------------------------------------------------------------------------------------------------------------------
Total 265,913 265,608 2,234,563
52.6% 47.9%
----------------------------------------------------------------------------------------------------------------------------
Consolidated (Yen)505,455 (Yen)554,530 $4,247,521
----------------------------------------------------------------------------------------------------------------------------
Notes: 1. Overseas sales represent the sales of the Company and consolidated
subsidiaries generated in all countries and regions of the world
except for Japan.
2. Regions are categorized depending on geographical proximity.
3. Major regions for the geographical categories are as follows:
(1) The Americas: the United States
(2) Europe: Germany and the United Kingdom
(3) Others: China, Australia and Southeast Asia
Nonconsolidated Balance Sheets
Komatsu Ltd.
As of September 30, 2001 and 2000, of fiscal 2002 and 2001
Yen figures of less than one million are omitted.
Thousands of
Millions of yen U.S. dolars
------------------------ ------------------
2002 2001 2002
-------------------------------------------------------------------------------------------------------------
ASSETS
Current assets (Yen) 307,449 (Yen) 331,396 $2,583,606
Cash on hand and in banks 8,430 28,856 70,843
Notes receivable 7,200 8,515 60,512
Accounts receivable-trade 150,589 160,788 1,265,457
Finished products 26,033 25,534 218,769
Materials and supplies 2,062 2,395 17,336
Work in process 24,841 24,428 208,752
Prepaid expenses 1,165 1,302 9,791
Deferred income taxes-current 11,016 10,959 92,574
Short-term loans receivable 68,743 61,878 577,680
Other current assets 12,584 13,048 105,755
Allowance for doubtful receivables (5,219) (6,311) (43,863)
Fixed assets 397,173 421,397 3,337,589
Tangible fixed assets 140,818 145,649 1,183,350
Buildings 46,784 48,399 393,145
Structures 8,783 8,877 73,811
Machinery and equipment 29,784 32,910 250,293
Vehicles and delivery equipment 240 272 2,019
Tools, furniture and fixtures 7,973 10,394 67,003
Land 46,402 43,163 389,937
Construction in progress 849 1,632 7,141
Intangible fixed assets 11,654 9,784 97,936
Utility rights 179 188 1,512
Software 11,409 9,521 95,875
Other intangible assets 65 74 550
Investments and miscellaneous assets 244,700 265,962 2,056,303
Investment securities 52,225 69,905 438,871
Security and other investments in subsidiaries 177,209 204,427 1,489,153
Long-term loans receivable 4,604 4,422 38,689
Noncurrent prepaid expenses 702 762 5,906
Deferred income taxes-noncurrent 25,567 - 214,855
Treasury stock 2,373 1,212 19,946
Other investments 4,838 5,449 40,656
Allowance for doubtful receivables (437) (175) (3,673)
Allowance for investments valuation (22,383) (20,041) (188,101)
-------------------------------------------------------------------------------------------------------------
Total assets (Yen) 704,622 (Yen) 752,793 $5,921,196
-------------------------------------------------------------------------------------------------------------
Notes: 1. Accumulated depreciation of tangible fixed assets
2002 --- (Yen)299,956 million 2001 --- (Yen)296,610 million
2. Net income (loss) per share (using the number of outstanding shares at
end of interim period)
2002 --- (Yen)(22.85) 2001 --- (Yen)3.88
Thousands of
Millions of yen U.S. dollars
--------------------------- ----------------------
2002 2001 2002
--------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities (yen)134,909 (yen)150,430 $1,133,692
Notes payable - trade 3,588 3,777 30,157
Accounts payable - trade 70,655 81,268 593,744
Short-term loans payable 9,141 6,668 76,821
Commercial paper - 1,000 -
Accounts payable 31,183 30,429 262,042
Accrued corporation taxes, etc 300 4,295 2,528
Advances received 800 1,284 6,729
Deferred profit on installment sales 5,692 8,649 47,835
Accrued bonuses 4,903 4,892 41,202
Warranty reserve 4,144 3,823 34,824
Other current liabilities 4,499 4,341 37,810
Long-term liabilities 124,705 123,710 1,047,942
Bonds 62,447 62,447 524,765
Long-term loans payable 27,045 15,101 227,276
Liabilities for severance payments 33,374 39,708 280,460
Liabilities for postretirement benefits 1,040 989 8,747
Deferred tax liabilities - 5,033 -
Other long-term liabilities 796 430 6,694
--------------------------------------------------------------------------------------------------------------------------
Total liabilities 259,614 274,140 2,181,634
--------------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Capital 70,120 70,120 589,249
Common stock 70,120 70,120 589,249
Legal reserves 127,366 127,366 1,070,310
Capital surplus 109,337 109,337 918,803
Legal surplus 18,029 18,029 151,507
Retained earnings 241,882 266,088 2,032,630
Reserve for special depreciation 168 192 1,414
Reserve for losses on overseas investments 1 1 12
Reserve for advanced depreciation deduction 15,068 11,977 126,627
Reserve for special advanced depreciation account - 10,745 -
General reserve 230,359 205,359 1,935,790
Unappropriated retained earnings (losses) (3,714) 37,811 (31,213)
Net income (loss) for interim period (21,909) 3,719 (184,113)
Unrealized gains on revaluation, net of tax effect 5,637 15,076 47,373
Unrealized gains on revaluation, net of tax effect 5,637 15,076 47,373
--------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 445,007 478,652 3,739,562
--------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity (yen)704,622 (yen)752,793 $5,921,196
--------------------------------------------------------------------------------------------------------------------------
Nonconsolidated Statements of Income and Unappropriated Retained Earnings
Komatsu Ltd.
For the six months ended September 30, 2001 and 2000, of fiscal 2002 and 2001
Yen figures of less than one million are omitted.
Thousands of
Millions of yen U.S. dollars
--------------------- ------------------
2002 2001 2002
--------------------------------------------------------------------------------------------------------------
Ordinary profits and losses
Operating profits and losses
Operating income
Net sales (Yen)183,367 206,929 $1,540,907
Operating expenses 181,426 202,125 1,524,595
Cost of sales 137,347 152,773 1,154,177
Deferred profit on installment sales (4,079) (1,648) (34,278)
Selling, general and administrative expenses 48,158 50,999 404,696
--------------------------------------------------------------------------------------------------------------
Operating income 1,941 4,804 16,313
Nonoperating profits and losses
Nonoperating income 6,298 5,157 52,932
Interest and dividend income 4,691 3,456 39,428
Other nonoperating income 1,606 1,701 13,504
Nonoperating expenses 5,652 5,654 47,502
Interest expenses 927 949 7,798
Other nonoperating expenses 4,724 4,705 39,704
--------------------------------------------------------------------------------------------------------------
Ordinary profit 2,587 4,307 21,743
Special profits and losses
Special income 1,685 17,100 14,167
Proceeds from sale of land 1,097 - 9,223
Profit on sale of investment securities 588 11,747 4,944
Profit on sale of shares of subsidiaries - 3,168 -
Profit on origination of retirement benefits trust - 1,231 -
Variance changing to retirement benefits accounting - 953 -
Special losses 44,116 17,040 370,728
Loss from sale of land 57 - 484
Valuation loss of investment securities 4,526 202 38,038
Valuation loss of shares of subsidiaries 24,376 1,430 204,846
Deferred allowance of securities investment valuation 15,155 2,591 127,361
Loss from reorganization of subsidiaries - 12,816 -
--------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (39,843) 4,367 (334,818)
Corporate, residential and business taxes 26 3,728 218
Deferred income tax expense (17,959) (3,079) 150,923
--------------------------------------------------------------------------------------------------------------
Net income (loss) for interim period (21,909) 3,719 (184,113)
Unappropriated retained earnings 18,195 40,433 152,900
at beginning of the period
Retirement of treasury stock - 6,340 -
Unappropriated retained earnings (losses) (Yen)(3,714) 37,811 ($31,213)
at end of the period
--------------------------------------------------------------------------------------------------------------
Directors and Officers
As of November 30, 2001
Board of Directors
Satoru Anzaki Masahiro Sakane*
Chairman of the Board President
Toshitaka Hagiwara* Koji Ogaki*
Executive Vice President Executive Managing Director
Assistant to President, Corporate President, Research Division
Administration, Related Businesses and Environment and Safety Management
Corporate Communications
Kazuhiro Aoyagi* Kunio Noji*
Executive Managing Director Managing Director
General Manager, President, Production Division, and
Corporate Planning Division President, e-KOMATSU Division
Tetsuya Katada Toshio Morikawa
Director Director
Counselor Advisor, Sumitomo Mitsui Banking
Corporation
*Also acts as Executive Officer
Statutory Auditors
Norimichi Kitagawa Hiroyuki Watanabe
Standing Auditor Standing Auditor
Masahiro Yoshiike Takaharu Dohi
Auditor Auditor
President, The Taiyo Mutual Life
Insurance Co.
Executive Officers
Naomi Anesaki Kunihiko Komiyama
Senior Executive Officer Senior Executive Officer
Compliance, General Affairs and President, Engines and Hydraulics
Defense Systems Business Division
Hisashi Wada Teruo Nakahara
Senior Executive Officer Senior Executive Officer
President, Japanese President, Development Division
Marketing Division
Shuji Sugi Susumu Isoda
Executive Officer Executive Officer
Vice President, Vice President, Production Division, and
Development Division Osaka Plant Manager
Teruo Nagayasu Kanetake Nakatani
Executive Officer Executive Officer
President, Product Awazu Plant Manager, Production Division
Support Division
Yuzo Tsumura Masahiro Yoneyama
Executive Officer Executive Officer
President, Procurement Division Vice President, e-KOMATSU Division, and
Deputy General Manager, Corporate
Planning Division
Shigeki Fujimori Munenori Nakao
Executive Officer Executive Officer
President, Defense President, Environment Control and
Systems Division System Development Business Division
Yuji Watanabe Kenji Kinoshita
Executive Officer Executive Officer
Deputy General Manager, CFO
Corporate Planning Division
Makoto Nakamura Hiroshi Suzuki
Executive Officer Executive Officer
President, International Division Vice President, Japanese
Marketing Division
Mamoru Hironaka Masao Fuchigami
Executive Officer Executive Officer
Vice President, Vice President, Research Division
Development Division Intellectual Properties, New Technology
Information and New Business Promotion
Global Officers
James E. Boyle David W. Grzelak
Chairman & CEO, Komatsu America Chairman & CEO
International Company Komatsu Mining Systems, Inc.
Kota Hoshino Peter J. Howe
President & COO Managing Director, Komatsu UK Ltd.
Komatsu Mining Systems, Inc.
Junro Kawanabe Michael W. Kerschen
President, Komatsu do President & COO
Brasil Ltda. Advanced Silicon Materials LLC.
Yoichi Kobayashi Yoshinori Komamura
President, Komatsu Managing Director, Komatsu Europe
Latin-America Corp. International N.V.
Gerhard Lehnen John H. Matlok
President, Komatsu Hanomag AG President & CEO
Komatsu Silicon America, Inc.
Edson R. McCord Kenichi Nakamura
President, North President & COO, Komatsu America
America Development International Company
Division, Komatsu America Corp.
Teruaki Noda Ian Olivieri
President & COO Managing Director,
Komatsu America Corp. Komatsu Australia Pty. Ltd.
Yoshitaka Omura Toshiji Onuma
President, Komatsu President, Komatsu Mexicana S.A. de C.V.
Asia & Pacific Pte Ltd.
Frank Plancke Enrico Tonetti
Managing Director, Komatsu Europe President, Komatsu Utility Europe S.p.A.
Coordination Center N.V.
Hideo Ueda Norbert H.H. Walther
Chairman & CEO President, Komatsu Mining Germany GmbH
Advanced Silicon Materials LLC.
Corporate Information
As of September 30, 2001
Name Komatsu Ltd.
Address (Head Office)
2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan
http://www.komatsu.com/
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Corporate Communications Department
Tel: 81-3-5561-2687
Fax: 81-3-3582-8332
E-mail: ir@komatsu.co.jp
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Date of Establishment May 13, 1921
Common Stock
Outstanding
Consolidated: (Yen)67,870 million (US$628 million)
Nonconsolidated: (Yen)70,120 million (US$649 million)
Number of Employees
Consolidated: 31,372
Nonconsolidated: 6,321
Shares of Common 958,921,701
Stock Issued and
Outstanding
Number of Shareholders 65,103
Breakdown of
Shareholders
[CHART]
Corporate 4.6%
772 shareholders
43,912,808 shares
Individual and other 18.8%
63,594 shareholders
180,666,720 shares
Foreign 34.4%
462 shareholders
329,458,570 shares
Securities 0.9%
79 shareholders
8,597,099 shares
Financial 41.3%
196 shareholders
396,286,504 shares
Settlement Date March 31 of each year
Annual Meeting of June of each year
Shareholders
Transfer Agent for The Toyo Trust and Banking Co., Ltd.
Common Stock 4-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo
100-0005, Japan
Number of Per-Unit 1,000
Shares
Stock Listings Tokyo, Osaka, Nagoya, Fukuoka, Sapporo,
Luxembourg, Frankfurt
Depositaries
ADRs: Citibank N.A., 111 Wall Street, 5th Floor,
New York, NY 10043, U.S.A.
EDRs: Citibank N.A., PO Box 18055, 5 Carmelite Street,
London EC4Y 0PA, U.K.
GBCs: Dresdner Bank AG, Jurgen-Ponto-Platz 1, 60301,
Frankfurt am Main, Germany