Coronavirus (COVID-19) Effects on Komatsu Group’s Business (3)

Apr. 21, 2020

In compliance with the policies of host governments of countries where we, the Komatsu Group, conduct business, we are making our utmost efforts to prevent COVID-19 from spreading. We place top priority on the health and safety of our customers, local community residents and employees.

In light of the Japanese government’s decision of April 16 to apply the state of emergency nationwide, Komatsu Group companies in Japan have thoroughly ensured infection preventive measures based on the requests and guidance of corresponding prefectural governments. Employees, who are not directly involved in production at plants, engage in teleworking, as a general rule, Concerning the employees directly involved in production at plants, we are limiting the number of workers at the job site after taking infection-preventive measures (fever checks, no use of public transportation, and the avoidance of crowded places, such as locker rooms) before starting work. Komatsu distributors are continuing the supply of products and parts and provision of service, which are needed by customers, after having promoted teleworking and strengthening shift work operations for their employees.

In this release, we revise some information in “Coronavirus (COVID-19) Effects on Komatsu Group’s Business (2)” of April 9 and provide the latest information.

1.Effects on production and sales
We have worked on the global cross-sourcing and procurement of finished vehicles and parts in order to absorb the impact of changes in market demand and foreign exchange rates. Please be advised that we have renewed the conditions of halting production at some plants as described in the table below. We are working to minimize the effects on production by means of alternative procurement and inventory reallocation. Concerning the production bases other than those listed below, we comply with the guidelines of concerned governments, implement infection-preventative measures, and operate them under normal conditions.

[Conditions of main production bases by region] (As of April 20, 2020)*1
*1 Bases as affected by haling operations are described below. (Renewed)

In the regions under the regulations issued by different governments of the world, we have seen the effects of the pandemic, such as suspension of business by customers. In some countries, however, governments have begun to ease their regulations on construction, mining, agriculture, forestry, logistics and the like, as they are essential businesses to support infrastructure. With respect to sales, our distributors, centering on Japan, the Americas, Europe and Asia, are continuing business through teleworking of their employees. To continuously supply products, parts, and service, they are implementing measures, such as the reassessment of supply routes and promotion of shift work operations for their employees.

2.Effects on business results
Consolidated business results for FY2019 (ending March 31, 2020), projected on October 30, 2019*2, include no impact of the coronavirus pandemic. We will disclose any considerable effects as soon as we become aware of them.

*2 We did not change this projection when we announced our business results for nine months of FY2019 on January 31, 2020.

No : 0006(2937)
Corporate Communications Department
Sustainability Promotion Division
Komatsu Ltd.
tel: +81-(0)3-5561-2616

*The information described is at the time of presentation and may be subject to advance notice.