Apr.28, 2023
Komatsu Ltd. today announced its consolidated business results for the fiscal year ended March 31, 2023 (U.S. GAAP). The highlights are described below.
In the following, “the Company” expresses Komatsu Ltd. on a non-consolidated basis, while “Komatsu”, on a consolidated basis.
1. Results for the Fiscal Year Ended March 31, 2023（FY2022）
For the fiscal year under review (April 1, 2022 - March 31, 2023), the first year of the mid-term management plan, consolidated net sales totaled JPY 3,543.5 billion, up 26.4% from the previous fiscal year. In the construction, mining and utility equipment business, demand for mining equipment expanded, centering on North America and Asia. Komatsu worked to make its supply chain highly resilient to changes in the external environment, especially by capitalizing on cross-sourcing and strengthening multi-sourcing, and steadily capturing demand for new equipment. Sales increased from the previous fiscal year, affected by advanced parts sales and service revenues, improved selling prices in almost all regions of the world and the Japanese yen’s depreciation. In the industrial machinery and others business, while sales of large presses mainly declined among presses, sheet-metal machines and machine tools for the automobile manufacturing industry, sales made a steady gain in the Excimer laser-related business against the backdrop of expanding demand for semiconductors worldwide. As a result, sales of this business increased from the previous fiscal year.
With respect to profits for the fiscal year under review, operating income surged by 54.8% from the previous fiscal year, to JPY 490.7 billion, reflecting improved selling prices and the Japanese yen's depreciation, which more than offset the adverse effects of increased prices of materials and logistics costs. The operating income ratio improved by 2.5 percentage points to 13.8%. Income before income taxes and equity in earnings of affiliated companies expanded by 46.8% to JPY 476.4 billion. Net income attributable to Komatsu Ltd. climbed to JPY 326.4 billion, up 45.1%.
2. Projections for the Fiscal Year Ending March 31, 2024（FY2023）
In the construction, mining and utility equipment business, Komatsu expects demand for mining equipment will remain strong, centering on Asia and North America, while demand for construction equipment will slow down, partly due to rising interest rates. Based mainly on its assumption of the Japanese yen’s appreciation, Komatsu anticipates a decline in sales. With respect to segment profit, Komatsu expects an increase by more than offsetting the impact of the Japanese yen’s appreciation, lower sales volume and higher fixed costs with improved selling prices.
In the retail finance business, Komatsu anticipates a decrease in both sales and segment profit, mainly due to the impact of the Japanese yen’s appreciation and the absences of gains on reversal of allowance for doubtful accounts and those on resale of used equipment after the termination of leases, which were recorded for the fiscal year under review.
In the industrial machinery and others business, Komatsu expects an increase in both sales and segment profit, as sales of the Excimer-laser related business for the semiconductor industry will remain steady and those of presses, sheet-metal machines, and machine tools for the automobile manufacturing industry will increase, centering on large presses.
As a result, Komatsu expects a decrease in consolidated net sales for the fiscal year ending March 31, 2024. Operating incomes is expected to flat from the fiscal year under review, mainly due to an improvement in selling prices. Komatsu anticipates a decrease in net income attributable to Komatsu Ltd., mainly due to an increase in interest expenses caused by higher interest rates.
As preconditions for its projection, Komatsu is assuming the foreign exchange rates will be as follows: USD1=JPY 125.0, EUR1=JPY 133.0, and AUD1=JPY 83.0.
3. Cash Dividends
Concerning cash dividends for the fiscal year under review, after considering consolidated business results for the fiscal year under review and future business prospects, the Company is planning to increase the year-end common stock dividend per share by JPY 11 from the earlier projection of JPY 64 per share. As a result, the year-end cash dividend for the fiscal year under review should amount to JPY 75 per share. Annual cash dividends should total JPY 139 per share, including the interim cash dividend which has already been paid, and which shows an increase of JPY 43 per share from the previous fiscal year, ended March 31, 2022. Accordingly, the consolidated payout ratio will translate into 40.3%. This dividend amount will be proposed to the 154th ordinary general meeting of shareholders (scheduled for June 21, 2023).
Regarding the fiscal year, ending March 31, 2024, while net income is projected to decrease, the Company plans to pay JPY 139 per share, keeping the same amount from the fiscal year under review. The consolidated payout ratio should be translated into 44.0%.
No : 0010（3233）
Corporate Communications Department
Sustainability Promotion Division
Komatsu Ltd.
tel: +81-(0)3-5561-2616
mail: JP00MB_cc_department@global.komatsu
*The information may be subject to change without notice.
