Revision of Projections for the Fiscal Year Ending March 31, 2013

Komatsu Ltd. (President & CEO: Kunio Noji) has revised the projection for consolidated results for the first six-month period ending September 30, 2012, and the projections for consolidated and non-consolidated results for the fiscal year ending March 31, 2013, which the Company announced on April 26, 2012.

1) Revision of projections for the first six-month period ending March 31, 2013

2) Revision of projections for the fiscal year ending March 31, 2013

Revision of projections for the fiscal year ending March 31, 2013

In the construction, mining and utility equipment business, we have considered the following major risks of demand downturns. The recovery of Chinese demand is slower than initially projected. Indonesian demand for mining equipment is softening mainly against the backdrop of falling prices of thermal coal. In the industrial machinery and others business, we are facing the market conditions, which are more challenging than initially anticipated, of wire saws for use in slicing silicon ingots for the solar cell market. In addition to these market conditions, we have also considered adverse effects of the Japanese yen's appreciation on business results. Accordingly, we have revised our projections of April 26, 2012 concerning sales and profits of consolidated business results for the first six-month period (April 1 - September 30, 2012) of the fiscal year ending March 31, 2013 and for the full fiscal year (April 1, 2012 - March 31, 2013).
Concerning the foreign exchange rates, which are preconditions for our current projections, we have assumed them as follows: USD1=JPY79, EUR1=JPY97 and RMB1=JPY12.5 in the second, third and fourth quarters. Average full-year rates will be as follows: USD1=JPY79, EUR1=JPY99 and RMB1=JPY12.6.
(Ref: USD1=JPY80, EUR1=JPY105 and RMB1=JPY12.8 as announced on April 26, 2012)

As in the case of consolidated business results, we have considered delaying recovery of demand in China, a risk of lowering demand in Indonesia in the construction, mining and utility equipment business, and adverse effects of the foreign exchange rates on business results. Accordingly, we have revised our projections of April 26, 2012 concerning sales and profits of non-consolidated business results for the fiscal year ending March 31, 2013 (April 1, 2012 - March 31, 2013).