Komatsu Report 2021
2-3-6, Akasaka, Minato-ku, Tokyo 107-8414, Japan https://www.komatsu.jp/en Corporate Communications Department Sustainability Promotion Division e-mail: JP00MB_info@global.komatsu
Contents
A Century of Creating the | Top Management's Views on | Evolution of Business Model for | Resolution of ESG Issues through | Corporate Profile | ||||||
Workplaces of the Future | Komatsu's Management Issues and | Creating the Workplaces of the Future | Growth Strategies | |||||||
Strategies for the Next Century |
A Century of Creating the Workplaces of the Future
Our Brand Promise
Our Brand Promise
A Century of Creating the Workplaces of the Future
01 | Our Brand Promise |
02 | Our Identity |
04 | Brand Promise as Explained by Global |
Officers |
Resolution of ESG Issues through Growth Strategies
38 Komatsu's CSR Themes and Mid-Term Management Plan KPIs
40 Enhancing Quality of Life
-Providing Products Required by Society
"Creating value together" is the promise Komatsu makes to its customers and all other stakeholders. Together with you, we can new value and work toward a sustainable future. The emphasis on "together" indicates the importance we place on partnership.
06 | -Creating value together |
100 Years of Komatsu | |
-History of Resolving Issues in Response to | |
08 | Social Needs |
Overview of Business | |
10 | Komatsu's Strengths |
-In-House Development and Production of | |
Components | |
-Linking every Workplace through IoT | |
13 | -Global Production System |
Business Segments |
Top Management's Views on Komatsu's Management Issues and Strategies for the Next Century
- Developing People
-
Growing with Society
-Social Contribution Activities
- Message from an Outside Director
- Corporate Governance
Corporate Profile
64 Directors and Audit & Supervisory Board Members
68 11-Year Summary
- Non-FinancialHighlights
- External Evaluations and Index Inclusion
- Corporate Information
- About Komatsu Report
Our Story
Our roots stretch back more than 100 years to a lush forest near Komatsu City in Ishikawa Prefecture, Japan that was once home to a copper mine vital to the surrounding community. The mine's closure in 1920 could have meant the end for community residents dependent on the jobs, but instead it was a new beginning.
The owner of the mine and our founder, Meitaro Takeuchi, was an entrepreneur with an extraordinary humanitarian vision, committed to enhancing the commu- nity's quality of life, developing future generations and growing with society.
Determined to bring industrial technology to his country, Takeuchi created a new company by nurturing the skills of the people in the local community.
Meitaro Takeuchi, Founder
- Message from the President
- Message from the CFO
Takeuchi's vision and strong guiding principles stood the test of time. Through the years, Komatsu's continued investment in core capabilities and strategic acquisitions have connected smart, diverse people and cutting-edge technologies with a shared belief that partnerships are the best way to solve challenges and
Evolution of Business Model for Creating the Workplaces of the Future
26 Special Feature : Komatsu's Vision for the Workplace of the Future
-Komatsu Future 203X -Collaboration with Partners for
Accelerating Creation of Workplaces of the
Future
-Pursuit of 2050 Carbon Neutrality
34 Mid-Term Management Plan (FY2019-FY2021) DANTOTSU Value
FORWARD Together for Sustainable Growth
Cautionary Notice regarding Forward-Looking Statements
This report contains predictions, plans, forecasts, and other forward-looking statements that have been judged by management to be rational based on the information available at the time of publication. Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, changes in economic conditions or product demand in major markets, foreign exchange rate fluctuations, domestic or overseas regulatory revisions, or changes to accounting standards or practices.
meet society's needs.
As the world grows and evolves, the people who power modern society and develop the world's infrastructure count on partners they can trust to empower them and create value.
Reporting Period: April 1, 2020-March 31, 2021
- This report also includes information on activities after the reporting period in order to provide readers with the latest information.
- "FY2020" refers to the period from April 1, 2020 to March 31, 2021, unless otherwise noted.
Editorial Policy
Komatsu Report 2021 was published for the purpose of providing clear explanations for all stakeholders on Komatsu's medium- to long-term business strategies and the virtuous cycle generated as the Company resolves environmental, social, and governance (ESG) issues through its business. In preparation of this report, we referenced the International Integrated Reporting Framework released by the International Integrated Reporting Council and the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation: ESG Integration, Non-Financial Information Disclosure, and Intangible Assets into Investment released by the Ministry of Economy, Trade and Industry.
Web Komatsu 100 years of "creating value together"
https://www.youtube.com/watch?v=q6nbmp5tFwM&t=0s
Yusenji Coal Mine, Komatsu's predecessor
Komatsu Report 2021 | 1 |
A Century of Creating the Workplaces of the Future
Our Identity
01 Our Identity
Komatsu has defined its corporate identity by reflecting on its corporate growth built by its forerunners and its relations with society. Specifically, Komatsu has articulated its mission and vision as its purpose, together with its values. The corporate identity also incorporates pieces that have been created over the Company's history: founding principles, The Komatsu Way, Komatsu's Worldwide Code of Business Conduct, and strategies including the mid-term management plan. As our business and stakeholders diversify further, we will strive to deliver this promise through our global operations.
Our Identity
Our Purpose
Creating value through manufacturing and technology innovation
to empower a sustainable future
where people, businesses and our planet thrive together.
Our history has been a century of facing and overcoming challenges, and "manufacturing and technology innova- tion" has been at the heart of all the things we do at Komatsu. As we enter our new centennial, we will continue to uphold this spirit as we continue to create value together with our partners.
With this spirit we aspire to help create a future where people lead safe, healthy and peaceful lives in harmony, enabling us all to thrive together.
Concept of Values
Ambition | Perseverance | Collaboration | Authenticity |
With a | Even when the | Creating value | To earn and |
"challenging spirit" | work is difficult, we | comes from | maintain trust, we |
and without fear of | remain committed | teamwork, | always act with |
failure, we innovate | to our promises | inclusion, respect, | sincerity, integrity |
and always aspire | and reliably carry | diversity and a | and honesty, |
to do more | them through | win-win approach | and communicate |
to completion | to all relationships | with transparency |
A Century of Creating the | Top Management's Views on | Evolution of Business Model for | Resolution of ESG Issues through | Corporate Profile |
Workplaces of the Future | Komatsu's Management Issues and | Creating the Workplaces of the Future | Growth Strategies | |
Strategies for the Next Century |
Our Strategy and Action
rate | gy | ||
St | |||
Management Principle | |||
Management | Corporate Social | ||
Strategy | Responsibility | ||
Founding Principles | The Komatsu Way | Worldwide Code | |
of Conduct |
Action
Management Principle
Management Principle shows our basic stance regarding business administration.
Management Strategy
Our current mid-term management plan is DANTOTSU Value - Forward Together for Sustainable Growth (FY19-21), envisioning safe, highly productive, smart and clean workplaces of the future.
Corporate Social Responsibility
We believe that our very business is Corporate Social Responsibility. The work that we do directly supports the growth and improvement of our communities and society in general.
Founding Principles
"Global Expansion," "Quality First," "Technological Innovation," and "Employee Development." These are the founding principles laid out by our founder, Meitaro Takeuchi (1860-1928), and they continue to be upheld by our organization to this day.
The Komatsu Way
The Komatsu Way was developed to convey our shared values and practices across different cultures, customs and generations.
Komatsu's Worldwide Code of Business Conduct
Compliance with the rules of business community is considered a top priority at Komatsu. The rules are not limited to laws and regulations but also include rules that are generally recognized and respected in society.
2 | Komatsu Report 2021 | Komatsu Report 2021 | 3 |
A Century of Creating the | Top Management's Views on |
Workplaces of the Future | Komatsu's Management Issues and |
Strategies for the Next Century |
Evolution of Business Model for Creating the Workplaces of the Future
Resolution of ESG Issues through | Corporate Profile |
Growth Strategies |
A Century of Creating the Workplaces of the Future
Brand Promise as Explained by Global Officers-Creating Value Together
Pursuit of a Sustainable Society Together | Path for Success in the Next 100 Years |
Global Officer
Rodney Schrader
The founding of Komatsu 100 years ago was unique in that the purpose was to sustain the local community and to make it a hub of economic growth. Meitaro Takeuchi, our founder, already knew that talent and technology were the keys to producing quality, which he was determined to bring to the global market.
Since those days, our operations havegrown extensively but the founding principles serve us to this day. At the same time, as our relationship with customers, distributors, suppliers and other stakeholders grew, a deep appreciation of working in partnership was born. We know that we owe our insights and expertise to the people who work together with us to enable a better and sustainable future.
In this anniversary year, we established our identity, articulating our mis- sion, vision, and values, and integrating the Management Principle, The Komatsu Way, and other existing strategy and action items. Guided by our identity, we will work globally to deliver our brand promise of "Creating value together."
Thank you for choosing us to be your partner in creating a future where people,businesses and the planet thrive together. With the belief that we are stronger, wiser, and better together, we look forward to continuing with you on this journey of creating value together.
A brand is much morethan just a logo on our buildings or our shirts. It's really a promise we make to every stakeholder about the experience they can expect when working with us. It'sthe experience on our websites, in every customer meeting and in how we use our data. Our brand is present every time someone sees our logo, wears our merchandise, visits our parts counters, operates our machines or talks to us on the phone.
If you think about it, a brand is createdby employees, who live and emulate the brand through all their interactions and through the products, services and solutions they create and support.
For me, Komatsu's brand is aboutcollaboration and partnering with our customers for a high-value, seamless experience with us that creates a feeling of connection and belonging they can rely on. By clearly establishing our brand promise, strategy and standards in ourcentennial year, I believewe've set an even more compelling path for success in the next 100years.
Senior Executive Officer
Chairman & CEO,
Komatsu America Corp.
Kiyoshi Mizuhara
Director and Senior Executive Officer
Chief Marketing Officer (CMO)
President, Construction Equipment
Solution Division
02
Brand Promise as Explained by Global Officers
Creating value together
Globally Unified Komatsu
The launch of our new Brand Strategy is an exciting and hugely motivating initiative that unites all Komatsu employees toward a sustainable future. Ourbrand promise, "Creating value together," is a single unifying statement that embodies who we are as a company and what we strive to achieve, in business and the world we live in. With a foundation forged over 100 years behind us, we now look toward the future and create a truly sustainable tomorrow -together!
As a global unified Komatsu, our core values, Ambition, Perseverance, Collaboration and Authenticity, will define and guide us over the next 100 years as we deliver on our promise to bring value to all our stakeholders in the most sustainable and authentic way.
We are committed to living these values in all that we do-having a challenging spirit, persevering through tough times, collaborating with all our stakeholders, and always being authentic and true to ourselves. We are excited and committed to Creating value together and are extremely proud to be part of the One Komatsu family!
Global Officer
Michael Blom
Executive Officer
President & MD,
Komatsu South Africa (Pty)Ltd.
Globally Consistent Brand Strategy
As our operation became more and more global and diversified, it was necessary to define and create a consistent brand strategy globally. On the occasion of the 100th anniversary, we took the opportunity to clarify our identity in a way that is easy to grasp. Through our new branding strategy, we will be able to better express our values to our customers as well as to stakeholders.
We will refocus our commitment to our founding principles, "Global Expansion," "Quality first," "Technological Innovation," and "Human resource development," with a renewed consistency in our communication. The Komatsu Way shows us how to understand our customers and become a reliable partner that moves forward together with them. As a management strategy, we will continuously seek to create safe, highly productive, smart and clean workplaces of the future.
With a challenging spirit, a teamwork approach, sincerity and commitment, we promise our stakeholders to "create value together" to empower a sustainable future for people, businesses and our planet.
Global Officer
Göksel Güner
Chief Operating Officer, Komatsu
Europe International N.V.
4 | Komatsu Report 2021 | Komatsu Report 2021 | 5 |
A Century of Creating the | Top Management's Views on |
Workplaces of the Future | Komatsu's Management Issues and |
Strategies for the Next Century |
Evolution of Business Model for Creating the Workplaces of the Future
Resolution of ESG Issues through | Corporate Profile |
Growth Strategies |
A Century of Creating the Workplaces of the Future
100 Years of Komatsu-History of Resolving Issues in Response to Social Needs
100 Years of Komatsu
History of Resolving Issues in Response to Social Needs
1921
Founding aspiration:
Engage in meaningful work to benefit the nation
Komatsu Ltd. was established from Komatsu Iron Works Ltd. (est. 1917), which manufactured mining machines, developed by Meitaro Takeuchi, founder of Komatsu Ltd., for use in the Yusenji copper mine. Based on a firm belief that developing the machinery industry in rural areas and promoting its growth, as well as looking to transcend national boundaries with high-quality products, Meitaro Takeuchi began manufacturing at Komatsu Ltd. with an eye to international markets, even when he founded Komatsu. The next year, Komatsu absorbed Komatsu Electric Steel Mills, building the foundation for integrated production from steel castings to machining and assembly, which has resulted in one of Komatsu's strengths today.
Meitaro's Guiding Principles
Development of agricultural Challenge tractor for the first time in
Japan
1931
Produced Japan's first tractor
In response to a request from the Ministry of Agriculture and Forestry, Komatsu took on the challenge of developing a farm tractor in Japan. While competitors gave up this challenge at the
prototype stage, Komatsu continued its efforts with a strong commitment to developing a unique product that others could not imitate, and finally completed Japan's first tractor. Subsequently in 1932, Komatsu released the "G25 tractor" equipped with its own newly developed engine as an improved version of the product.
Challenge Challenge for global quality
1961
Project "A" to meet the industry giant's market entry
In the 1960s during the internationalization of Japan's economy, the world's largest construction equipment manufacturer decided to enter the Japanese market. In order
to compete against this strong rival, Komatsu undertook the Project "A" quality improvement project with a Company-wide commitment to improving every- thing, including a single screw, and developed a high-quality vehicle for mass production within about only two years. In the process, Komatsu introduced a quality control (QC) method ahead of competitors. The idea of incorporating QC in the manufacturing process has been passed down through the generations to the company of today.
Improvement of overseas sales and Challenge service operations. Establishment of
overseas production operation
1967 N.V. Komatsu Europe S.A: Komatsu's first overseas subsidiary
1975 First offshore production in Brazil
Pursuing higher levels of quality and reliability in its products, Komatsu steadily grew exports centered on large-scale bull- dozers. N.V. Komatsu Europe S.A., Komatsu's first overseas subsidiary in Belgium, was established in 1967 for the purpose of enhancing overseas after-sales services. The years that followed saw the reinforcement of our export foundation through the establishment of numerous overseas subsidiaries, including Komatsu America Corp., Komatsu Singapore Pte. Ltd., and Komatsu do Brasil Ltda. We began producing our first made-overseas bulldozers in Brazil in 1975. We proceeded to augment our overseas production network, setting up production bases in Indonesia in 1982, in the United States and the United Kingdom in 1985, and in Thailand, China, and India in the 1990s. These bases furnished a global production platform for hydraulic excavators, dump trucks, wheel loaders, and other major products.
Challenge | Improvement of produc- |
tivity and safety of mining | |
2008
Succeeded in the world's first commercial deployment of the Autonomous Haulage System (AHS)
Komatsu led the world by deploying the AHS at a copper mine in Chile. By equipping dump trucks with a high-precision GPS, an obstacle detection
sensor, and a variety of controllers for the central management of their operation in the main control room, Komatsu achieved
24-hour unmanned operation of the dump trucks. The AHS contributes to substantially increasing on-site productivity and safety and solving the issue of labor shortages.
Solutions for worksite Challenge problems, such as labor
shortages and safety
2015
"Smart Construction":
Creating a workplace of the future
"Smart Construction" is a solution service that create safe, highly pro- ductive, smart and clean construction sites of the future by connecting all kinds of data available at
construction sites through the use of ICT. By fusing the 3D terrain data obtained by using drones with ICT construction equipment, Komatsu has increased the efficiency of the process, from surveying to inspection, and has also "visualized" the process, thereby contributing to the solution of problems at construction sites.
- Global Expansion
- Quality First
- Technological Innovation
- Employee Development
Meitaro Takeuchi, Founder
• Increased the level of our | • Achieved global quality on par | |||
technologies | with a U.S. manufacturer, | |||
Value | Built the foundation for devel- | Value | contributing to customers' | |
oping and producing con- | improvement of their work- | |||
struction equipment in Japan | place productivity | |||
• Built overseas distributor networks and | • Improved safety, | • Achieved optimization of | ||||
achieved the provision of global quality | reduced costs, and | construction while striv- | ||||
Value • Expanded local contributions through | Value | alleviated operators' | Value | ing for "safe, highly pro- | ||
human resource development and | burden at customers' | ductive, clean and smart | ||||
employment around the world | mining sites | workplaces of the future" | ||||
History of Consolidated Global Management | Komatsu Mining | ||||||
Net Sales and Demand for 7 Major Products | |||||||
2017 | |||||||
(Demand, Units) | (Net sales, Billions of yen) | ||||||
600,000 | 2006 | 3,000 | |||||
■ Japan ■ North America ■ Europe ■ Other ■ China ■ Consolidated net sales (right scale) | Web | ||||||
Komatsu India and | |||||||
1999 | 2001 | Komatsu CIS | |||||
Komatsu (China) | |||||||
Komatsu Cummins Chile and | |||||||
450,000 | Komatsu Middle East | 2,250 | |||||
1997 | |||||||
Web | |||||||
Komatsu Southern Africa | |||||||
1989 | 1995 | ||||||
Bangkok Komatsu | |||||||
Komatsu Europe International | |||||||
300,000 | 1988 | 1,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||
1971 | Komatsu Dresser | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1982 | 1985 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Komatsu Singapore | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1970 | 1978 | Komatsu Indonesia | Komatsu UK | ||||||||||||||||||||||||||||||||||||||||||||||||||
Komatsu America | 1977 | Komatsu Australia | 750 | ||||||||||||||||||||||||||||||||||||||||||||||||||
150,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1967 | Komatsu Brasil | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Komatsu Europe | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 1982 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 1997 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 2008 | 2009 | 2010 2011 | 2012 | 2013 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 0 |
1960 | (Year) |
Competition with Foreign Companies | Expansion of Exports | Expansion of Overseas Production | Selective Focus and Global Consolidated Management |
Diversification | (DANTOTSU Product → DANTOTSU Service → DANTOTSU Solution) |
eBook offering more information on the 100 years of Komatsu
https://www.komatsu.jp/en/com- pany/history/ebook/HTML5/ pc.html#/page/1
Re-opening of Komatsu no Mori museum for nurturing children together with the community
https://www.youtube.com/
watch?v=vWnddb9Ux3E
6 | Komatsu Report 2021 | Komatsu Report 2021 | 7 |
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Komatsu Ltd. published this content on 15 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2021 05:11:03 UTC.