1

Yoshisada TakahashiSenior Executive Officer,

Supervising the Industrial Machinery Business

Komatsu’s Industrial Machinery Business(Komatsu Industries Corporation)

Investors Meeting (September 16, 2014)

2Industrial Machinery Business by Komatsu (as of March 31, 2014)Breakdown of industrial machinery sales

89.6%

Construction, Mining & Utility Equipment

Industrial Machinery 6.3%

Breakdown of consolidated sales

Others: 4.1%

Total: JPY1,953,6 bn)

Profile of Komatsu’s industrial machinery business

Subsidiary Location Main business line Main customer FY2013 sales

Komatsu Industrial Machinery CorporationEstablished in 1994 after spinning off the press and sheet-metal machinery business.

Ishikawa Prefecture

Development, sales and service of presses and sheet-metal machinery

Automobile, electric appliance, building materials and construction machinery

JPY54.5 bn

Komatsu NTC Ltd. Established in 1945 and acquired in 2008.

Toyama and Ishikawa Prefectures

Development, production, sales and service of machine tools and wire saws

Automobile and solar cells

JPY73.5 bn

Komatsu NTC Ltd・Machine tools・Wire saws

Presses

Sheet-metal machinery

57%

33%

10%

Komatsu Industries Corp.

3

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

Breakdown of sales by subsidiary

Sales of Komatsu’s Industrial Machinery Business

Sales by business segment ・Komatsu NTC as wholly owned subsidiary

・Komatsu Ltd. (large presses): Komatsu Industries Corp. (sheet-metal and press machines): Komatsu Machinery Corp. (machine tools)

・Large machinery transferred to Komatsu Industries.

Presses Sheet-metal machinery

0’０４ ’０５ ’０６ ’０７ ’０８ ’０９ ’１０ ’１１ ’１２ ’１３ ’１４

0’０４ ’０５ ’０６ ’０７ ’０８ ’０９ ’１０ ’１１ ’１２ ’１３ ’１４

First-quarter sales of Komatsu Industries

0

・Komatsu Machinery and Komatsu NTC merged

Komatsu Ltd. (large presses) Komatsu Industries (sheet-metal and press machinery)

Komatsu Machinery (machine tools) Komatsu NTCJPY in bn

300

250

200

150

100

50

Projected

JPY in bn JPY in bn JPY in bn

Projected Projected1Q/’12 1Q/’13 1Q/’14

100

80

60

40

20

2020

15

10

5

15

10

5

4Komatsu Industries’ Customers

●Welding robots

●Large presses

●Transfer machines ●Machining centers

●Crankshaft millers●Camshaft millers

●Piston ring machines

●Forging presses●Small and medium-sized presses

●Sheet-metal machines

Komatsu Industries

Komatsu NTC

Forklift trucksAgricultural eqpt

Carriers

Trucks Lights

Railway freight and passenger cars

AutomobilesPassenger cars

Buses

Gas devices

Electric motors

Automotive audio equipment

Vehicles

Medium-sized press

Large press Forging press

【Forging and forming presses】

Construction eqpt【Automobile industry and industrial machinery】

Electric, etc.

Small press

5Market TrendsAutomobile production volume worldwide

Source: IHS Automotive 2014/6/30 Rat of rowth by r ion

Demand (sales) for forging presses

‘13 ‘14 ‘15 ‘16 ‘17 実績

Jpan, USA & EUStrategic Markets

Jpn, USA, EU: Production shift to emerging countriesAverage growth of 4%: Steady capital investment related to automobiles

Demand (sales) for sheet-metal machines

(Source: Japan Forming Machinery Association

N. America Europe & CISSoutheast Asia

Japan

OthersChina Latin America

Japan

Europe & CISUS & Southeast Asia

China

India

South America

Mexico

JPY in bn

Units in mn

JPY in bnExport Domestic Export Domestic200

160

120

80

40

200

160

120

80

40

Source: Japan Forming Machinery Association

6

Presses Sheet-metal machinery

Basic policies

Improve product mix to meet the growing automobile market and reinforce parts and service operations in growth regions.

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

Growth based on innovation1) Product development

2) Expansionof business areas

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

Businesses

In-house production of key components based on technological innovation

Development and launches of industry-pacesetting new products by emphasizing the key concepts of energy saving, ICT, safety and environmental conservation

Development of strategic products of the Servo press

Launch and enhancement of product competitiveness of fiber laser cutting machines ・Launch of 3D fiber laser cutting machines

Reinforcement of operations in Asia and North America

Expansion of KOMTRAX-applied areas for industrial machinery

Expansion of production in China and reinforcement of parts and service operations in Asia and North America

7Development of DANTOTSU Products (1/3)

Presses Launch of AC Servo presses1. Energy savings

2. ICTStandard feature of the industrial machinery-specific KOMTRAXSupport for customers’ productivity enhancement effortsManagement (control) of machine operation, productivity and safety

2.12

0.92-56%

Powe

r con

sum

ptio

n (k

wh)

Comparison of power consumption

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

2) Power is regenerated when the machine speeds down, thanks to the power regeneration system.

3. High productivitySpeed of manufacturing (SPM): Doubled thanks to the pendulum motion No wasteful strokes according to the height of finished products thanks to Servo-controlled motion

0

500

1000

1500

2000

2500

3000

3500

-’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13

H2W H1F-2 H1F

30

No. of Servo presses delivered (cumulative) World’s number one

When finished products are short

When finished products are ta

Power sourceConverter

Servoamplifier

CondenserCondenserCondenserMore-than-needed

power is regenerative.Regenerative powerIs stored.

Rotary motion Pendulum motion

Short strokes

Long strokes

Loaded

Idling

ServoMechanical

UnitsOther Large Medium

8Development of DANTOTSU Products (2/3)

Fiber laser cutting machine

Output power: 1kw and 2kw

KFL2051

Equipped with in-house developed oscillator

2kW

・Highest speed cutting in the world

-93%

・Reduction of power consumption while cutting

1. Energy savings

Use of fiber laser with a high lasing efficiency of 20% , compared to CO2 laser (10%)

2. High productivity

・Reduction of running costs

Development and launch of the fiber laser cutting machine for 3D cutting (2nd half, FY2014) (Planned to exhibit at

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

KFL2048

２ｋＷ CO2 laser

-81%Patent pending

Super-speed cutting is possible due to Komatsu-proprietary method which narrowly focuses beam power

Use of the device capable of condensing nitrogen in ambient air and using it as assist gas

Fastest in the worldＴＬＨ Ｋ

Power consumption while cuttin

Power consumption (Index) CO2 laser

Running costs (JPY in thousands/year)

Electricity (machine, dust collector) Laser gas

Assist gasElectricity(Oscillator, Chiller)

SUS304 Straight line cutting

Cutti

ng sp

eed

m/m

in

Output power: Cutting 1mm thick stainless sheet

CO2 laser(2kW)

Conventionalfiber laser

(2kW)

KFL (2kW)

Thickness (mm)

9Development of DANTOTSU Products (3/3)

Industrial machinery-specific KOMTRAX

【Customers】

0

50

100

150

200

'10 '11 '12 '13 '14 '15

0

50

100

150

'10 '11 '12 '13 '14 '15

0

50

100

150

200

'10 '11 '12 '13 '14 '15

Customers can see real-time production conditions at overseas plants on their PCs in Japan.

Demand for medium-sizedpresses

Machine & production

Machine control Analysis of machine use MarketingDevelopment

Service

Production managementMaintenance management

KomatsuCustomers

Daily reports

Supporting customers’ productivity by making their machine operations “visible”

Overseas expansion

■Power-on hours■Operating hours■ Frequency■Mfg. mode■Alarms■Product numbers■Work description

Began receiving orders in China, Southeast Asia and North America in July 2014. 800 units in operation in Japan

(as of March 31, 2014)

China

N. America

Southeast Asia

ChinaMexico

North America

Southeast AsiaJapan

10Reinforcement of Operations in AsiaSales in Asia: Komatsu Industries

0%

10%

20%

30%

40%

50%

60%

0’０４’０５’０６’０７’０８’０９’１０’１１’１２’１３

)

・Local production in China

ＫＣＣＭ

・ Reinforcing parts and service operations in collaboration with construction equipment subsidiaries

Construction equipment Industrial machinery

Demand for medium-sized presses

Press factory

KI

KIPL(Gurgaon)

KIPL (Bangalore)KIPL(Chennai)

KIS (Shanghai)

KIS(Guangzhou)

KIS (Tianjin)

KCCM

BKC

Komatsu (Shantui)

KC

KITH

KMSI

KIPL

Products

Large presses (parts): Began in March 2012

Small presses: Launched in June 2011.

Small Servo presses:Launched in July 2014.

Plasma cutting machines: Launched in April 2011.

JPY in bn40

30

20

10

IndiaIndonesia

Thailand

Other Asia

China

% of Asia

% of China

China

11

0

3,000

6,000

9,000

12,000

15,000

’０７ ’０８ ’０９ ’１０ ’１１ ’１２ ’１３ ’１４

・Reinforcement of overseas parts and service operations【Regions】 Southeast Asia (Thailand & Indonesia)

China, India and North America (Mexico)・Reinforcement of overseas service by utilizing industrial

machinery-specific KOMTRX【Regions】 North America & Southeast Asia

Reinforcement of Parts and Service Operations

Sales of parts and revenues of service

No. of press and sheet-metal machines delivered and projected future demand for them・ As of May 2014. Demand for medium-sized presses

Japan

N. America

Latin America Asia & Oceania

ChinaEurope

::

0

50

100

150

200

'10 '11 '12 '13 '14 '15

北 需要

0

50

100

150

200

'10 '11 '12 '13 '14 '15

要

0

50

100

150

'10 '11 '12 '13 '14 '15

Large presses: 2,500 units

Press and sheet-metal machines: 72,000 units：72,000 units

Projected

Demand in China

Demand in SE Asia

Demand in N. America

JPY in mn

12

0%

50%

100%

150%

200%

FY11/1Q 2Q 3Q 4Q FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q 3Q 4Q FY14/1Q

Ratio of orders received / sales

Komatsu Industries’ Ratio of Orders Received / Sales (6 Months)

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

13

Thank you for your interest in Komatsu.