Dialogues with Shareholders and investors

Policy for constructive dialogue with shareholders and Investors
Disclosure policy
IR activities
Theme, feedback to the management team

In order to sustainable growth and increase corporate value, we emphasize the dialogues with its shareholders, investors and security analyst.

1. Our basic approach for the dialogues with stakeholders including shareholders and investors

In order to become a company which enjoys more trust from all of our stakeholders, we are engaging in fair and timely disclosure of information and emphasizing the importance of direct communication by top management.

With respect to the details, please see "Stakeholder engagement" in Komatsu report.

2. Our policy for the constructive dialogues with shareholders and investors

Policies on operations and efforts to promote constructive dialogue with shareholders and investors are described as follows:

1) The Company engages in fair and timely disclosure of information to all stakeholders, including shareholders and investors, and emphasizes the importance of direct communication by the President.

2) The Company appoints the Director or Senior Executive Officer in charge of supervising investor relations (IR), defines the departments responsible for IR activities, and promotes collaborations among all related departments.

3) The Company works to endeavor to identify its shareholder Ownership structure and create a means of dialogue other than individual meetings. (Investor briefings of business results, information for shareholders and investors on the website, meeting and plant tours with individual shareholders, meeting with individual and institutional investors in Japan and abroad, etc.)

4) The President and the Director or Senior Executive Officer in charge of supervising IR periodically reports on the state of dialogue to the Board of Directors, executive officers and related departments.

5) The Company stipulates the internal rule to control insider information and sets the Information Disclosure Committee which checks on the contents of statutory disclosures and controls insider information.

With respect to the details, please see "Corporate Governance Report" we issued.

3. Disclosure policy

Please see our "Disclosure policy" on the Komatsu website.

4. IR activities

Activities: FY23(FY22); Contents
Presentation of business result: 4times(4times); CEO, CFO and Executive officer in charge of IR explain business results and forecasts for security analysts and investors every quarter.
Small meeting with security analysts and investors: 7times(7times); CEO, CFO and Executive officer in charge of IR discuss with security analyst and investors through Q&A session every quarter.
IR-Day: 1time(1time); Business unit management person makes a presentation about Komatsu's business opportunity, long-term strategy, and sustainability theme for security analysts and investors.
Dialogues between Komatsu's outside directors and investors: 1time(-); Komatsu's outside directors and investors have a dialogue event that they exchange opinions some of important theme such as effectiveness of BOD, corporate governance and succession plan.
Plant tour for security analysts and investors: 3times(2times); Plant tours(in Japan/in Overseas) are organized for security analysts and investors as well as important business presentation meeting.
NDR and visiting investors: 394times(348times)

Of which, managements visit to overseas investors 67times(46times)
Of which, participation in conferences by brokerage 25times(9times); Komatsu's management or IR team visit investors to have an 1on1 meeting or group session(face-to-face, on-line). We utilize the conference event organized by security company to have a meeting with investors or make presentation.
On-line session for individual shareholders: 5times(5times); We utilize on-line session organized by security company for individual investors to explain update of Komatsu's situation, forecast and Mid-term plan's progress
Shareholders' Meeting: 1time(1time); We hold the shareholders' meeting to report and resolve important items under the Companies Act of Japan.
Events for individual shareholders: 16times(16times); In order to well-understanding for Komatsu's business, we organize plant tour in Japan for individual shareholders, and Komatsu Techno Center Open-day for kids.
Briefing session for individual shareholders: 2times(2times); We hold a briefing session for individual investors to explain update of Komatsu's situation, forecast and Mid-term plan's progress

5. Theme of dialogues, Feedback to the management team

Theme of dialogues

Demand, Forecast, Competitiveness, Cost, Pricing strategy, Inventory situation, Product development, Carbon Neutral, Investment, M&A, Capital policy, and Shareholders' return.

Feedback to the management team

In order to improve its corporate management activities and IR, we share the voice of shareholders and investors at the BOD and the Strategic meeting as well as the internal related department.

President report to the BOD: Komatsu's President reports to the BOD regarding IR activities in which he/she is involved at the beginning of BOD meeting.
IR activity planning, deliberate: To review and deliberate on IR activities of the next fiscal year, we discuss and deliberate at the meeting that executive officers attend at least one time a year.
IR activity routine reporting: IR department reports to the top management regarding routine IR activities such as security analyst report, minutes of conference meeting and memorandum of meeting with investors.