Apr 28, 2025
Komatsu Ltd. (hereafter “Komatsu”) (President and CEO: Takuya Imayoshi) launched its new three-year medium-term management plan, Strategic Growth Plan (FY2025 - FY2027) with the title “Driving value with ambition”, in April of this year.
Komatsu’s management principle is to maximize the trust the Company receives from stakeholders and society through a commitment to quality and reliability based on its purpose and values, established for the occasion of the 100th anniversary of the Company in 2021. Komatsu also defines its corporate stance as Sustainability Policy to meet social expectations through its business activities. The Strategic Growth Plan serves as the Company management strategy for executing this approach, aiming for sustainable growth through a positive cycle of creating new value to address social issues and improve profitability.
Under this new medium-term management plan, Komatsu aims to embrace one of its core values, Ambition, by taking bold measures to pursue group-wide growth through the co-creation of new value with customers and stakeholders. The Strategic Growth Plan redefines the Company vision of becoming a collaborative partner committed to optimizing safe, productive, and clean workplaces. Komatsu will further evolve its solutions (e.g., Smart Construction and Autonomous Haulage System (AHS)) with more advanced products compatible with them and deliver new value to optimize customer job sites.
Target
Komatsu continues to target business growth above industry levels and industry-leading profitability, while maintaining a return on equity (ROE) target of over 10%, exceeding the cost of shareholders’ equity. The Company added free cash flow (FCF) as a new target, aiming for a three-year cumulative goal of ¥1 trillion to further secure earnings and continue strategic investments in growth areas. Other changes from previous management targets include revising the D/E ratio target for the Retail Finance business from below five times to below six times.
The Company shareholder return policy continues to be a consolidated dividend payout ratio of 40% or more. Komatsu intends to conduct share buybacks in a timely manner, balanced by considerations of financial soundness and its shareholders' equity ratio.
For non-financial targets, Komatsu continues to pursue its 2030 CO₂ reduction goal and 2050 carbon neutrality challenging target to reduce environmental impact. Komatsu also identified key social issues to address from the perspective of double materiality and established 30 related KPIs. Details will be disclosed in the Integrated Report scheduled for publication in September.
No : 0012（3328）
Corporate Communications Department
Sustainability Promotion Division
Komatsu Ltd.
tel: +81-(0)3-6849-9703
mail: JP00MB_cc_department@global.komatsu
*The information may be subject to change without notice.
