(Translation)
This document has been translated from the Japanese original for the convenience of overseas stakeholders. In the event of any discrepancy between this document and the Japanese original, the original shall prevail.
Quarterly Report
From July 1, 2022 to September 30, 2022
(Second Quarter of the 154th Fiscal Year)
KOMATSU LTD.
Second Quarter of the 154th Fiscal Year (from July 1, 2022 to September 30, 2022)
Quarterly Report
Certain References and Information:
- This is an English translation of the Quarterly Securities Report ("Shihanki Hokokusho") filed via the Electronic Disclosure for Investors' Network ("EDINET") system as set forth in Article 27-30-2 of the Financial Instruments and Exchange Act of Japan. Komatsu Ltd. filed its Quarterly Securities Report for the three months ended September 30, 2022 with the Director-General of the Kanto Local Finance Bureau on November 11, 2022. The Quarterly Securities Report contains, among other information, Quarterly Consolidated Financial Statements for the three months and six months ended September 30, 2022. Material information in the Quarterly Securities Report, other than the Quarterly Consolidated Financial Statements, has already been reported by Komatsu Ltd. in its press release dated October 31, 2022. Attached is an English translation of Quarterly Consolidated Financial Statements for the three months and six months ended September 30, 2022.
- In this report, Komatsu Ltd. is hereinafter referred to as the "Company" and together with its consolidated subsidiaries as "Komatsu."
Cautionary Statement with respect to forward-looking statements:
This report contains forward-looking statements that reflect managements' 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," "plans," "expects" 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. Any forward-looking statements speak only as of the date of this report, and the Company assumes no duty to update such statements.
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 Komatsu's principal products, owing to changes in the economic conditions in Komatsu's principal markets; changes in exchange rates or the impact of increased competition; unanticipated costs or delays encountered in achieving Komatsu's objectives with respect to globalized product sourcing and new information technology tools; uncertainties as to the results of Komatsu's research and development efforts and its ability to access and protect certain intellectual property rights; the impact of regulatory changes and accounting principles and practices; and the introduction, success and timing of business initiatives and strategies.
Financial Information
1. Basis of preparation of the quarterly consolidated financial statements
The quarterly consolidated financial statements of the Company are prepared in accordance with the accounting principles generally accepted in the United States of America, pursuant to Article 4, Supplementary Provisions of the "Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements," the Ordinance of the Cabinet Office No. 64 of 2007.
2. Audit certification
Pursuant to Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act of Japan, the quarterly consolidated financial statements for the three months ended September 30, 2022 and for the six months ended September 30, 2022 were reviewed by KPMG AZSA LLC.
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Quarterly Consolidated Financial Statements
Consolidated Balance Sheets (Unaudited)
Komatsu Ltd. and Consolidated Subsidiaries as of September 30, 2022 and March 31, 2022
September 30, 2022 | March 31, 2022 | |||||||||
Assets | Millions of yen | Ratio (%) | Millions of yen | Ratio (%) | ||||||
Current assets | ||||||||||
Cash and cash equivalents (Note 16) | ¥ | 320,824 | ¥ | 315,360 | ||||||
Time deposits (Note 16) | 766 | 1,310 | ||||||||
Trade notes and accounts receivable, net (Notes 4 and 10) | 1,036,061 | 954,580 | ||||||||
Inventories (Note 5) | 1,275,024 | 988,011 | ||||||||
Other current assets (Notes 15, 16 and 17) | 200,090 | 162,020 | ||||||||
Total current assets | 2,832,765 | 56.6 | 2,421,281 | 55.7 | ||||||
Long-term trade receivables, net (Notes 4, 10 and 16) | 624,102 | 12.5 | 501,868 | 11.5 | ||||||
Investments | ||||||||||
Investments in and advances to affiliated companies | 50,404 | 45,913 | ||||||||
Investment securities (Note 6) | 10,510 | 8,377 | ||||||||
Other | 3,538 | 3,493 | ||||||||
Total investments | 64,452 | 1.3 | 57,783 | 1.3 | ||||||
Property, plant and equipment | ||||||||||
- less accumulated depreciation and amortization of ¥1,031,539 | ||||||||||
million at September 30, 2022 and ¥997,069 million at March 31, 2022 | 868,219 | 17.3 | 819,749 | 18.9 | ||||||
Operating lease right-of-use assets | 63,192 | 1.3 | 61,516 | 1.4 | ||||||
Goodwill (Note 3) | 226,313 | 4.5 | 187,615 | 4.3 | ||||||
Other intangible assets | 180,388 | 3.6 | 169,003 | 3.9 | ||||||
- less accumulated amortization (Notes 3 and 7) | ||||||||||
Deferred income taxes and other assets (Notes 15, 16 and 17) | 143,114 | 2.9 | 128,707 | 3.0 | ||||||
Total assets | ¥ | 5,002,545 | 100.0 | ¥ | 4,347,522 | 100.0 | ||||
September 30, 2022 | March 31, 2022 | |||||||||
Liabilities and Equity | Millions of yen | Ratio (%) | Millions of yen | Ratio (%) | ||||||
Current liabilities | ||||||||||
Short-term debt (Note 16) | ¥ | 471,588 | ¥ | 241,746 | ||||||
Current maturities of long-term debt (Note 16) | 255,488 | 276,623 | ||||||||
Trade notes, bills and accounts payable | 356,110 | 338,974 | ||||||||
Income taxes payable | 53,724 | 68,337 | ||||||||
Current operating lease liabilities | 17,762 | 16,981 | ||||||||
Other current liabilities (Notes 10, 15, 16 and 17) | 425,792 | 381,360 | ||||||||
Total current liabilities | 1,580,464 | 31.6 | 1,324,021 | 30.5 | ||||||
Long-term liabilities | ||||||||||
Long-term debt (Note 16) | 443,485 | 429,011 | ||||||||
Liability for pension and retirement benefits | 98,929 | 93,407 | ||||||||
Long-term operating lease liabilities | 46,585 | 43,458 | ||||||||
Deferred income taxes and other liabilities (Notes 10, 15, 16 and 17) | 120,803 | 101,348 | ||||||||
Total long-term liabilities | 709,802 | 14.2 | 667,224 | 15.3 | ||||||
Total liabilities | 2,290,266 | 45.8 | 1,991,245 | 45.8 | ||||||
Commitments and contingent liabilities (Note 14) | ||||||||||
Equity | ||||||||||
Komatsu Ltd. shareholders' equity | ||||||||||
Common stock: | ||||||||||
Authorized 3,955,000,000 shares | ||||||||||
Issued 973,450,930 shares | ||||||||||
Outstanding 945,570,024 shares at September 30, 2022 and | ||||||||||
945,312,564 shares at March 31, 2022 | 69,660 | 69,393 | ||||||||
Capital surplus | 135,936 | 139,572 | ||||||||
Retained earnings: | ||||||||||
Appropriated for legal reserve | 48,081 | 47,903 | ||||||||
Unappropriated | 2,011,928 | 1,902,501 | ||||||||
Accumulated other comprehensive income (loss) (Notes 9 and 15) | 360,731 | 122,414 | ||||||||
Treasury stock at cost, | ||||||||||
27,880,906 shares at September 30, 2022 and 27,833,236 shares at March 31, 2022 | (49,186) | (49,272) | ||||||||
Total Komatsu Ltd. shareholders' equity | 2,577,150 | 51.5 | 2,232,511 | 51.4 | ||||||
Noncontrolling interests | 135,129 | 2.7 | 123,766 | 2.8 | ||||||
Total equity | 2,712,279 | 54.2 | 2,356,277 | 54.2 | ||||||
Total liabilities and equity | ¥ | 5,002,545 | 100.0 | ¥ | 4,347,522 | 100.0 | ||||
The accompanying Notes are an integral part of these Quarterly Consolidated Financial Statements.
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Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Unaudited)
Komatsu Ltd. and Consolidated Subsidiaries
Six months ended September 30, 2022 and 2021
Consolidated Statements of Income
Six months ended | Six months ended | |||||||||
September 30, 2022 | September 30, 2021 | |||||||||
Millions of yen | Ratio(%) | Millions of yen | Ratio(%) | |||||||
Net sales (Notes 10, 12 and 15) | ¥ | 1,618,735 | 100.0 | ¥ | 1,291,400 | 100.0 | ||||
Cost of sales (Notes 7, 8 and 15) | 1,147,450 | 70.9 | 932,561 | 72.2 | ||||||
Selling, general and administrative expenses (Notes 3, 7, 8 and 11) | 258,534 | 16.0 | 224,019 | 17.3 | ||||||
Other operating income (expenses), net (Note 9) | (1,117) | (0.1) | 1,464 | 0.1 | ||||||
Operating income | 211,634 | 13.1 | 136,284 | 10.6 | ||||||
Other income (expenses), net | ||||||||||
Interest and dividend income | 5,012 | 0.3 | 2,135 | 0.2 | ||||||
Interest expense | (10,892) | (0.7) | (5,749) | (0.4) | ||||||
Other, net (Notes 6, 8, 9 and 15) | 22,005 | 1.4 | 3,839 | 0.3 | ||||||
Total | 16,125 | 1.0 | 225 | 0.0 | ||||||
Income before income taxes and equity in | ||||||||||
earnings of affiliated companies | 227,759 | 14.1 | 136,509 | 10.6 | ||||||
Income taxes (Note 9) | ||||||||||
Current | 63,806 | 45,238 | ||||||||
Deferred | (4,939) | (6,541) | ||||||||
Total | 58,867 | 3.6 | 38,697 | 3.0 | ||||||
Income before equity in earnings of affiliated companies | 168,892 | 10.4 | 97,812 | 7.6 | ||||||
Equity in earnings of affiliated companies | 2,072 | 0.1 | 1,485 | 0.1 | ||||||
Net income | 170,964 | 10.6 | 99,297 | 7.7 | ||||||
Less: Net income attributable to noncontrolling interests | 8,396 | 0.5 | 6,156 | 0.5 | ||||||
Net income attributable to Komatsu Ltd. | ¥ | 162,568 | 10.0 | ¥ | 93,141 | 7.2 | ||||
Yen | ||||||||||
Per share data (Note 13): | ||||||||||
Net income attributable to Komatsu Ltd.: | ||||||||||
Basic | ¥ | 171.96 | ¥ | 98.56 | ||||||
Diluted | ¥ | 171.94 | ¥ | 98.53 |
The accompanying Notes are an integral part of these Quarterly Consolidated Financial Statements.
Consolidated Statements of Comprehensive Income
Millions of yen | |||||
Six months ended | Six months ended | ||||
September 30, 2022 | September 30, 2021 | ||||
Net income | ¥ | 170,964 | ¥ | 99,297 | |
Other comprehensive income (loss), for the period, net of tax | |||||
Foreign currency translation adjustments (Note 9) | 247,983 | 10,658 | |||
Pension liability adjustments (Notes 8 and 9) | 279 | 1,787 | |||
Net unrealized holding gains (losses) on derivative instruments (Notes 9 and 15) | (38) | 942 | |||
Total | 248,224 | 13,387 | |||
Comprehensive income | 419,188 | 112,684 | |||
Less: Comprehensive income attributable to noncontrolling interests | 19,779 | 5,459 | |||
Comprehensive income attributable to Komatsu Ltd. | ¥ | 399,409 | ¥ | 107,225 | |
The accompanying Notes are an integral part of these Quarterly Consolidated Financial Statements.
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Komatsu Ltd. published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 08:21:04 UTC.