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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 FORM 20-F
  o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 or
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended March 31, 2010
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 or
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this shell company report
 For the transition period from  to
 COMMISSION FILE NUMBER: 1-7239
 KABUSHIKI KAISHA KOMATSU SEISAKUSHO
  KOMATSU
LTD.
 (Translation of Registrants name into English)
 (Jurisdiction of incorporation or organization)
 2-3-6 Akasaka, Minato-ku, Tokyo 107-8414, Japan
 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
  Name of each exchangeTitle of each class
    
    on which registeredNone
    
    N/A
   (Title
of Class)
  Common
Stock*
  *
    
    16,818,060 American Depositary Shares evidenced by American Depositary Receipts, each
American Depositary Share representing 1 share of Common Stock of Komatsu Ltd.    þ o
  o þ
  þ o
  o o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
  þ o Other o
  o o
  o þ




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Table of Contents
 PART IItem 1. Identity of Directors, Senior Management and Advisers
    
    
    1Item 2. Offer Statistics and Expected Timetable
    
    
    1Item 3. Key Information
    
    
    1A. Selected Financial Data
    
    
    1B. Capitalization and Indebtedness
    
    
    4C. Reasons for the Offer and Use of Proceeds
    
    
    4D. Risk Factors
    
    
    4Item 4. Information on the Company
    
    
    8A. History and Development of the Company
    
    
    8B. Business Overview
    
    
    12C. Organizational Structure
    
    
    29D. Property, Plants and Equipment
    
    
    31Item 4A. Unresolved Staff Comments
    
    
    34Item 5. Operating and Financial Review and Prospects
    
    
    34A. Operating Results
    
    
    34B. Liquidity and Capital Resources
    
    
    76C. Research and Development, Patents and Licenses, etc.
    
    
    81D. Trend Information
    
    
    83E. Off-Balance Sheet Arrangements
    
    
    85F. Tabular Disclosure of Contractual Obligations
    
    
    87G. Safe Harbor
    
    
    88Item 6. Directors, Senior Management and Employees
    
    
    89A. Directors and Senior Management
    
    
    89B. Compensation
    
    
    99C. Board Practices
    
    
    102D. Employees
    
    
    103E. Share ownership
    
    
    105Item 7. Major Shareholders and Related Party Transactions
    
    
    107A. Major Shareholders
    
    
    107B. Related Party Transactions
    
    
    108C. Interests of Experts and Counsel
    
    
    108Item 8. Financial Information
    
    
    108A. Consolidated Statements and Other Financial Information
    
    
    108B. Significant Changes
    
    
    109Item 9. The Offer and Listing
    
    
    109A. Offer and Listing Details
    
    
    109




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B. Plan of Distribution
    
    
    111C. Markets
    
    
    111D. Selling Shareholders
    
    
    111E. Dilution
    
    
    111F. Expenses of the Issue
    
    
    111Item 10. Additional Information
    
    
    111A. Share Capital
    
    
    111B. Memorandum and Articles of Association
    
    
    111C. Material Contracts
    
    
    123D. Exchange Controls
    
    
    123E. Taxation
    
    
    125F. Dividends and Paying Agents
    
    
    132G. Statement by Experts
    
    
    132H. Documents on Display
    
    
    132I. Subsidiary Information
    
    
    132Item 11. Quantitative and Qualitative Disclosures About Market Risk
    
    
    132Item 12. Description of Securities Other than Equity Securities
    
    
    137A. Debt Securities
    
    
    137B. Warrants and Rights
    
    
    137C. Other Securities
    
    
    137D. American Depositary Shares
    
    
    137PART IIItem 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    139Item 14. Material Modifications to the Rights of Security Holders and
Use of Proceeds
    
    
    139Item 15. Controls and Procedures
    
    
    139Item 16. [Reserved]
    
    
    141A. Audit Committee Financial Experts
    
    
    141B. Code of Ethics
    
    
    141C. Principal Accountant Fees and Services
    
    
    141D. Exemptions from the Listing Standards for Audit Committees
    
    
    143E. Purchases of Equity Securities by the Issuer
and Affiliated Purchasers
    
    
    143F. Change in Registrants Certifying Accountant
    
    
    143G. Corporate Governance
    
    
    143PART IIIItem 17. Financial Statements
    
    
    144Item 18. Financial Statements
    
    
    144Item 19. Exhibits
    
    
    144Exhibit 1.1Exhibit 1.2Exhibit 2Exhibit 11Exhibit 12 aExhibit 12 bExhibit 13 aExhibit 13 b




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PART I
 
 Item 1. Identity of Directors, Senior Management and Advisers
  
 Item 2. Offer Statistics and Expected Timetable
  
 Item 3. Key Information
 
 A. Selected Financial Data
  Selected Financial Data
 (Millions of yen, except per share amounts)2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Income Statement Data:Net sales 1)
    
    
    1,431,564
    
    
    
    2,021,743
    
    
    
    2,243,023
    
    
    
    1,893,343
    
    
    
    1,612,140Operating income 1)
    
    
    67,035
    
    
    
    151,948
    
    
    
    332,850
    
    
    
    244,741
    
    
    
    163,428Income from continuing operations
before income taxes and equity in
earnings of affiliated companies 1)
    
    
    64,979
    
    
    
    128,782
    
    
    
    322,210
    
    
    
    236,491
    
    
    
    155,779Income taxes 1)
    
    
    25,364
    
    
    
    42,293
    
    
    
    115,794
    
    
    
    79,745
    
    
    
    43,970Income from continuing operations
attributable to Komatsu Ltd. less
applicable income taxes1)
    
    
    33,559
    
    
    
    78,797
    
    
    
    203,826
    
    
    
    153,264
    
    
    
    109,141Income from discontinued operations
attributable to Komatsu Ltd. less
applicable income taxes 1)
    
    
    
    
    
    
    
    
    
    
    4,967
    
    
    
    11,374
    
    
    
    5,149Net income attributable to
Komatsu Ltd.
    
    
    33,559
    
    
    
    78,797
    
    
    
    208,793
    
    
    
    164,638
    
    
    
    114,290
  1




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(Millions of yen, except per share amounts)2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Per Share Data:Income from continuing
operations attributable to
Komatsu Ltd. less
applicable income taxes- Basic
    
    
    34.67
    
    
    
    79.95
    
    
    
    204.88
    
    
    
    154.25
    
    
    
    109.94- Diluted
    
    
    34.65
    
    
    
    79.89
    
    
    
    204.61
    
    
    
    153.97
    
    
    
    109.75Net income attributable to
Komatsu Ltd.- Basic
    
    
    34.67
    
    
    
    79.95
    
    
    
    209.87
    
    
    
    165.70
    
    
    
    115.13- Diluted
    
    
    34.65
    
    
    
    79.89
    
    
    
    209.59
    
    
    
    165.40
    
    
    
    114.93Cash dividendsYen
    
    
    26.00
    
    
    
    44.00
    
    
    
    38.00
    
    
    
    23.00
    
    
    
    14.00U.S. cents 2)
    
    
    27.96
    
    
    
    44.44
    
    
    
    38.00Depreciation and amortization
    
    
    91,319
    
    
    
    98,354
    
    
    
    75,664
    
    
    
    72,709
    
    
    
    72,640Capital Investment1) 3)
    
    
    96,191
    
    
    
    162,512
    
    
    
    145,730
    
    
    
    129,680
    
    
    
    113,934Research and development expenses1)
    
    
    46,449
    
    
    
    53,736
    
    
    
    49,673
    
    
    
    46,306
    
    
    
    44,560(Millions of yen)Balance Sheet Data:Total assets
    
    
    1,959,055
    
    
    
    1,969,059
    
    
    
    2,105,146
    
    
    
    1,843,982
    
    
    
    1,652,125Komatsu Ltd. shareholders equity
    
    
    833,975
    
    
    
    814,941
    
    
    
    887,126
    
    
    
    776,717
    
    
    
    622,997Capital stock
    
    
    67,870
    
    
    
    67,870
    
    
    
    67,870
    
    
    
    67,870
    
    
    
    67,870Number of shares issued at year-end
    
    
    998,744,060
    
    
    
    998,744,060
    
    
    
    998,744,060
    
    
    
    998,744,060
    
    
    
    998,744,060Number of shares outstanding at year-end
    
    
    968,039,976
    
    
    
    967,822,292
    
    
    
    995,103,847
    
    
    
    993,786,759
    
    
    
    993,645,492
  1)
    
    In the fiscal year ended March 31, 2007, Komatsu disposed of its majority interest
in Komatsu Electronic Metals Co., Ltd. (KEM). In the fiscal year ended March 31, 2008,
Komatsu sold the outdoor power equipment (OPE) business of Komatsu Zenoah Co. and its
subsidiaries. As a result, operating results and the gain recognized on the sale of KEM
and its subsidiaries as well as the OPE business of Komatsu Zenoah Co. and its
subsidiaries are presented as Income from discontinued operations attributable to
Komatsu Ltd. less applicable income taxes.  2




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2)
    
    The conversion rate between the Japanese yen to the U.S. dollar for the fiscal year
ended March 31, 2010 is ¥93 to U.S.$1.00, the approximate buying rate of Japanese yen as
of noon on March 31, 2010 in The City of New York as reported by the Federal Reserve
Board.3)
    
    The term Capital Investment as used in the above Selected Financial Data should
be distinguished from the term Capital Expenditures as used in the consolidated
statements of cash flows. The term Capital Investment as used in the above Selected
Financial Data is defined to refer to costs relating to the purchase of property, plant
and equipment including properties under capital leases on an accrual basis which
reflects the effect of timing differences between acquisition dates and payment dates.
Komatsus management uses this financial indicator to manage its capital investment and
believes that this indicator is useful to investors in that this indicator presents
accrual based capital investment in addition to the cash based capital expenditures
provided in the consolidated statements of cash flows.  Yen Exchange Rates per U.S. dollar:
  Average
    
    
    High
    
    
    Low
    
    
    Period-EndYear ended March 312006
    
    
    113.67
    
    
    
    104.64
    
    
    
    119.66
    
    
    
    117.482007
    
    
    116.55
    
    
    
    112.26
    
    
    
    121.02
    
    
    
    117.562008
    
    
    113.61
    
    
    
    96.88
    
    
    
    124.09
    
    
    
    99.852009
    
    
    100.85
    
    
    
    87.80
    
    
    
    110.48
    
    
    
    99.152010
    
    
    92.49
    
    
    
    86.12
    
    
    
    100.71
    
    
    
    93.40
 High
    
    
    Low
    
    
    Period-End2009December
    
    
    86.62
    
    
    
    93.08
    
    
    
    93.082010January
    
    
    89.41
    
    
    
    93.31
    
    
    
    90.38February
    
    
    88.84
    
    
    
    91.94
    
    
    
    88.84March
    
    
    88.43
    
    
    
    93.40
    
    
    
    93.40April
    
    
    92.03
    
    
    
    94.51
    
    
    
    94.24May
    
    
    89.89
    
    
    
    94.68
    
    
    
    90.81
  3




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B. Capitalization and Indebtedness
  
 C. Reasons for the Offer and Use of Proceeds
  
 D. Risk Factors
  (1) Economic and market conditions
    4




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(2) Foreign currency exchange rate fluctuations
   5




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(3) Fluctuations in financial markets
  (4) Laws and regulations of different countries
  (5) Environmental laws and regulations
   6




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(6) Product and quality liability
  (7) Alliances and collaborative relationships
  (8) Procurement, production and other matters
  (9) Information security, intellectual property and other matters
   7




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(10) Natural calamities, wars, terrorism, accidents and other matters
  
 Item 4. Information on the Company
 
 A. History and Development of the Company
     8




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Capital Investment by Operating Segment
 Percentage Change asMillions of Yen
    
    
    compared to theFiscal Year ended
    
    
    Fiscal Year endedMarch 31, 2010
    
    
    March 31, 2009Construction, Mining and Utility Equipment
    
    ¥
    92,979
    
    
    
    -39.2
    %Industrial Machinery and Others
    
    
    3,212
    
    
    
    -66.9
    %Total
    
    ¥
    96,191
    
    
    
    -40.8
    %
  1)
    
    Amounts include certain leased machinery and equipment accounted for as capital
leases in accordance with Financial Accounting Standards Board Accounting Standards
Codification 840.2)
    
    The term Capital Investment as used in the above table should be distinguished
from the term Capital Expenditures as used in the consolidated statements of cash
flows. The term Capital Investment as used in the above table is defined to refer to
costs relating to the purchase of property, plant and equipment including properties
under capital leases on an accrual basis which reflects the effect of timing differences
between acquisition dates and payment dates. Komatsus management uses this financial
indicator to manage its capital investment and believes that this indicator is useful to
investors in that this indicator presents accrual based capital investment in addition to
the cash based capital expenditures provided in the consolidated statements of cash
flows.   Operating segment
    
    Main facilitiesConstruction,
Mining and Utility
Equipment
    
    Construction of Komatsu Manufacturing Rus, LLCs new plant    Products: Medium-sized hydraulic excavators and forklift trucks
    Location: Yaroslavl, RussiaRelocation and expansion of Komatsu (Changzhou) Construction Machinery
Corp.s plant    Products: Hydraulic excavators, wheel loaders, dump trucks, etc.    Location: Changzhou, Jiangsu, ChinaExpansion of Komatsu Castex Ltd.s manufacturing facilities for key
components (i.e., iron castings)    Products: Cylinder blocks, etc.    Location: Himi City, Toyama, Japan
  11




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B. Business Overview
      Net Sales by Operating Segments
 (Millions of Yen)Fiscal Year
    
    
    Fiscal Year
    
    
    Fiscal YearEnded March 31,
    
    
    Ended March 31,
    
    
    Ended March 31,2010
    
    
    2009
    
    
    2008Construction, Mining and Utility Equipment
    
    ¥
    1,268,575
    
    
    
    88.6
    %
    
    ¥
    1,744,733
    
    
    
    86.3
    %
    
    ¥
    2,048,711
    
    
    
    91.3
    %Industrial Machinery and Others
    
    
    162,989
    
    
    
    11.4
    %
    
    
    277,010
    
    
    
    13.7
    %
    
    
    194,312
    
    
    
    8.7
    %Total
    
    ¥
    1,431,564
    
    
    
    100.0
    %
    
    ¥
    2,021,743
    
    
    
    100.0
    %
    
    ¥
    2,243,023
    
    
    
    100.0
    %
 Note:
    
    Starting with the fiscal year ended March 31, 2009, Komatsu reclassified the
forklift truck business of Komatsu Utility Co., Ltd. and the businesses of Komatsu
Logistics Corp. (both of which were formerly in the Industrial Machinery, Vehicles and
Others operating segment) so that such businesses are part of Komatsus construction and
mining equipment business, and accordingly, changed its operating segments by renaming
the Construction and Mining Equipment operating segment as the Construction, Mining and
Utility Equipment operating segment and the Industrial Machinery, Vehicles and Others
operating segment as the Industrial Machinery and Others operating segment. As a result
of this reclassification, the financial data for the fiscal year ended March 31, 2008 in
the above table have been retrospectively reclassified using the new operating segments.
  12




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Category
    
    Principal ProductsExcavating Equipment
    
    Hydraulic excavators, mini excavators and backhoe loadersLoading Equipment
    
    Wheel loaders, mini wheel loaders and skid steer loadersGrading and Roadbed Preparation Equipment
    
    Bulldozers, motor graders and vibratory rollersHauling Equipment
    
    Off-highway dump trucks, articulated dump trucks and crawler carriersForestry Equipment
    
    Harvesters, forwarders and feller-bunchersTunneling Machines
    
    Shield machines, tunnel-boring machines and small-diameter pipe jacking machinesRecycling Equipment
    
    Mobile debris crushers, mobile soil recyclers and mobile tub grindersIndustrial Vehicles
    
    Forklift trucksOther Equipment
    
    Railroad maintenance equipmentEngines and Components
    
    Diesel engines, diesel generator sets and hydraulic equipmentCasting Products
    
    Steel castings and iron castingsLogistics
    
    Packing and transport
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Company
    
    Product
    
    ModelKomatsu Ltd.
    
    Hydraulic Excavators
    
    PC78UU-8, PC130F-7, PC200LC-8E0Hybrid, PC600-8E0, PC600LC-8E0, PC600-8R, PC600LC-8R, PC650-8E0, PC650LC-8E0, PC700LC-8E0, PC700LC-8R, PC8000-6Bulldozers
    
    D375A-6RMotor Graders
    
    GD555-5, GD655-5, GD675-5Komatsu Utility Co., Ltd.
    
    Hydraulic Excavators,
    
    PC05-1A, PC58UUT-5Forklifts Trucks
    
    FD20-17, FD25-17, FD30-17, FD35A-17, FB15-12, FD18-12, FD20A-12, FB15MU-12, FB18MU-12, FB20MU-12
   Category
    
    Principal ProductsMetal Forging and Stamping
Presses
    
    Large-sized presses, servo presses, small- and medium-sized presses and forging pressesSheet Metal Machines
    
    Laser cutting machines, fine-plasma cutting machines, press brakes and shearsMachine Tools
    
    Transfer machines, machining centers, crankshaft millers, grinding machines and wire
sawsDefense Systems
    
    Ammunition and armored personnel carriersTemperature-control equipment
    
    Thermoelectric modules and temperature-control equipment for semiconductor
manufacturingOthers
    
    Commercial-use prefabricated structures
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(Millions of Yen)Fiscal Year
    
    
    Fiscal Year
    
    
    Fiscal YearEnded March 31,
    
    
    Ended March 31,
    
    
    Ended March 31,2010
    
    
    2009
    
    
    2008Japan
    
    ¥
    323,813
    
    
    
    22.6
    %
    
    ¥
    452,172
    
    
    
    22.4
    %
    
    ¥
    505,185
    
    
    
    22.5
    %Americas
    
    
    323,984
    
    
    
    22.7
    %
    
    
    503,450
    
    
    
    24.9
    %
    
    
    541,160
    
    
    
    24.1
    %Europe and CIS
    
    
    127,377
    
    
    
    8.9
    %
    
    
    284,029
    
    
    
    14.0
    %
    
    
    427,679
    
    
    
    19.1
    %China
    
    
    270,870
    
    
    
    18.9
    %
    
    
    236,226
    
    
    
    11.7
    %
    
    
    189,902
    
    
    
    8.5
    %Asia (excluding Japan
and China) and
Oceania
    
    
    299,864
    
    
    
    20.9
    %
    
    
    335,574
    
    
    
    16.6
    %
    
    
    348,462
    
    
    
    15.5
    %Middle East and Africa
    
    
    85,656
    
    
    
    6.0
    %
    
    
    210,292
    
    
    
    10.4
    %
    
    
    230,635
    
    
    
    10.3
    %Total
    
    ¥
    1,431,564
    
    
    
    100.0
    %
    
    ¥
    2,021,743
    
    
    
    100.0
    %
    
    ¥
    2,243,023
    
    
    
    100.0
    %
  15




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Construction, Mining and Utility Equipment
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DANTOTSU products
 2
 KOMTRAX (Komatsu Machine Tracking System)
  AHS (Autonomous Haulage System)
  Hybrid
 2 2
  19




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Industrial Machinery and Others
  (1) Metal Forging and Stamping Presses
     20




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(2) Sheet Metal Machines
    (3) Machine Tools
     21




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Regulations regarding engine emissions
   22




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Regulations regarding noise and vibration
   23




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Regulations regarding hazardous substances
     24




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Regulations regarding Health and Safety requirement
      25




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Basic Management Policy
  New Mid- to Long-Range Management Plan and Issues Ahead
     26




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1) Promotion of ICT Applications
  2) Development of Environment-Friendly Products
 2
 X
  27




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3) Expansion of Sales and Service Operations in Strategic Markets
  4) Promotion of Continuous Kaizen (Improvement) by Strengthening Workplace Capability
   * The KOMATSU Way:
   28




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Numerical Targets of the Global Teamwork for Tomorrow
 Items
    
    Targets for Fiscal Year Ending March 31, 2013Operating margin
    
    15% or aboveROE: Return on equity 1)
    
    20%Net debt-to-equity ratio 2)
    
    0.4 or belowExcluding debt of retail finance companies
    
    0.2 or belowConsolidated payout ratio
    
    20 - 40% (stably)
  1)
    
    ROE = Net income attributable to Komatsu Ltd. for the fiscal year/[(shareholders
equity at the beginning of the fiscal year + shareholders equity at the end of the
fiscal year)/2]2)
    
    Net debt-to-equity ratio = (Interest-bearing debt - cash and
cash equivalents - time
deposits)/shareholders equity  Items
    
    Fiscal Year Ending March 31, 2013Guideline on sales
    

JPY2,000 billion ± JPY100 billionGuidelines on exchange rate
    
    
    USD1
    
    
    
    EUR1
    
    
    
    RMB1JPY90
    
    
    
    JPY125
    
    
    JPY13.5
 
 C. Organizational Structure
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Ownership Interest
(proportion of votingCountry of
    
    power held)Name
    
    Incorporation
    
    (%)Komatsu Utility Co., Ltd.
    
    Japan
    
    
    100.0Komatsu Castex Ltd.
    
    Japan
    
    
    100.0Komatsu Construction Equipment Sales and
Service Japan Ltd.
    
    Japan
    
    
    100.0Komatsu Used Equipment Corp.
    
    Japan
    
    
    100.0Komatsu Rental Japan Ltd.
    
    Japan
    
    
    79.0Komatsu Forklift Japan Ltd.
    
    Japan
    
    
    100.0Komatsu Logistics Corp.
    
    Japan
    
    
    100.0Komatsu Industries Corporation
    
    Japan
    
    
    100.0Komatsu Machinery Corporation
    
    Japan
    
    
    100.0Komatsu NTC Ltd.
    
    Japan
    
    
    100.0Komatsu Business Support Ltd.
    
    Japan
    
    
    100.0Komatsu America Corp.
    
    U.S.A.
    
    
    100.0Komatsu do Brasil Ltda.
    
    Brazil
    
    
    100.0Komatsu Brasil International Ltda.
    
    Brazil
    
    
    100.0Komatsu Holding South America Ltda.
    
    Chile
    
    
    100.0Komatsu Cummins Chile Ltda.
    
    Chile
    
    
    81.8Komatsu Financial Limited Partnership
    
    U.S.A.
    
    
    100.0Komatsu Europe International N.V.
    
    Belgium
    
    
    100.0Komatsu UK Ltd.
    
    U.K.
    
    
    100.0Komatsu Hanomag GmbH
    
    Germany
    
    
    100.0Komatsu Mining Germany GmbH
    
    Germany
    
    
    100.0Komatsu Deutschland GmbH
    
    Germany
    
    
    100.0Komatsu France S.A.S.
    
    France
    
    
    100.0Komatsu Utility Europe S.p.A.
    
    Italy
    
    
    100.0Komatsu Italia S.p.A.
    
    Italy
    
    
    100.0Komatsu Forest AB
    
    Sweden
    
    
    100.0Komatsu CIS LLC
    
    Russia
    
    
    100.0Komatsu Financial Europe N.V.
    
    Belgium
    
    
    100.0Komatsu Southern Africa (Pty) Ltd.
    
    South Africa
    
    
    80.0Komatsu Asia & Pacific Pte Ltd.
    
    Singapore
    
    
    100.0PT Komatsu Indonesia
    
    Indonesia
    
    
    94.9Bangkok Komatsu Co., Ltd.
    
    Thailand
    
    
    74.8Komatsu Australia Pty. Ltd.
    
    Australia
    
    
    60.0Komatsu Australia Corporate Finance Pty. Ltd.
    
    Australia
    
    
    60.0Komatsu (China) Ltd.
    
    China
    
    
    100.0Komatsu (Changzhou) Construction Machinery Corp.
    
    China
    
    
    85.0Komatsu Shantui Construction Machinery Co., Ltd.
    
    China
    
    
    60.0Komatsu Financial Leasing China Ltd.
    
    China
    
    
    100.0
 Notes:1)
    
    Percentage of ownership interest includes indirect ownership.2)
    
    The Companys significant subsidiaries (as such term is defined in Rule 1-02(w) of
Regulation S-X) are Komatsu America Corp. and Komatsu (China) Ltd.  30




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##### Table of Contents



D. Property, Plants and Equipment
    Floor SpaceThousand
    
    
    ThousandName and Location
    
    sq. meter
    
    
    sq. ft
    
    
    Principal productsJapan:Awazu Plant Komatsu, Ishikawa
    
    
    247
    
    
    
    2,659
    
    
    Small- and medium-sized hydraulic excavators, small- and medium-sized wheel loaders, small- and medium-sized bulldozers, motor gradersKanazawa Plant Kanazawa, Ishikawa
    
    
    25
    
    
    
    269
    
    
    Super-large hydraulic excavators, pressesOsaka Plant Hirakata, Osaka
    
    
    169
    
    
    
    1,819
    
    
    Medium- and large-sized hydraulic excavators, large-sized bulldozers, recycling equipmentOyama Plant 1) Oyama, Tochigi
    
    
    225
    
    
    
    2,422
    
    
    Diesel engines, hydraulic equipment, axleIbaraki
Plant Hitachinaka, Ibaraki
    
    
    51
    
    
    
    549
    
    
    Large-sized wheel loaders, dump trucksKoriyama
Plant Koriyama, Fukushima
    
    
    30
    
    
    
    323
    
    
    Hydraulic equipmentKomatsu
Utility Co., Ltd. 
Oyama, Tochigi
    
    
    75
    
    
    
    807
    
    
    Forklift trucks, mini excavators, mini wheel loadersKomatsu
Castex Ltd.
Himi, Toyama
    
    
    91
    
    
    
    980
    
    
    Steel castings, iron castings, pattern for castingKomatsu NTC
Ltd. 
Nanto, Toyama
    
    
    68
    
    
    
    732
    
    
    Transfer machines, machining centers, laser cutting machines, grinding machines
  31




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##### Table of Contents



Floor SpaceThousand
    
    
    ThousandName and Location
    
    sq. meter
    
    
    sq. ft
    
    
    Principal productsThe AmericasKomatsu
America Corp. 
Tennessee, U.S.A.
    
    
    31
    
    
    
    334
    
    
    Medium-sized hydraulic excavators, articulated dump trucksSouth Carolina, U.S.A.
    
    
    18
    
    
    
    194
    
    
    Wheel loaders, forklift trucksIllinois, U.S.A.
    
    
    62
    
    
    
    667
    
    
    Large-sized dump trucksHensley Industries, Inc. 

Texas, U.S.A.
    
    
    29
    
    
    
    312
    
    
    Buckets, teeth, edges, adaptersKomatsu do
Brasil Ltda. 
São Paulo, Brazil
    
    
    68
    
    
    
    732
    
    
    Medium-sized hydraulic excavators, small- and medium-sized wheel loaders, medium-sized bulldozers, motor gradersEuropeKomatsu UK
Ltd.
Birtley, UK
    
    
    60
    
    
    
    646
    
    
    Medium- and large-sized hydraulic excavatorsKomatsu
Hanomag GmbH 
Hannover, Germany
    
    
    77
    
    
    
    829
    
    
    Wheeled hydraulic excavators, small- and medium-sized wheel loaders, mini wheel loadersKomatsu Forest
AB 
Umea, Sweden
    
    
    14
    
    
    
    151
    
    
    Forestry equipment (wheel type)Komatsu Mining
Germany GmbH 
Düsseldorf, Germany
    
    
    23
    
    
    
    248
    
    
    Super-large hydraulic excavatorsKomatsu
Utility Europe S.p.A. 
Este, Italy
    
    
    48
    
    
    
    517
    
    
    Mini excavators, backhoe loaders, skid steer loadersAsia (excluding Japan) and OceaniaPT Komatsu Indonesia
Jakarta, Indonesia
    
    
    139
    
    
    
    1,496
    
    
    Medium-sized hydraulic excavators, small- and medium-sized bulldozers, motor graders, dump trucks and hydraulic equipmentPT Komatsu
Undercarriage Indonesia 
Bekasi, Indonesia
    
    
    12
    
    
    
    129
    
    
    Undercarriage components and spare partsKomatsu
(Changzhou) Construction Machinery Corporation
Jiangsu, China
    
    
    16
    
    
    
    172
    
    
    Medium-sized hydraulic excavators, medium-sized wheel loaders, dump trucksKomatsu
Shantui Construction Machinery Co., Ltd.
Shandong, China
    
    
    63
    
    
    
    678
    
    
    Small- and medium-sized hydraulic excavatorsBangkok
Komatsu Co., Ltd. 
Chonburi, Thailand
    
    
    24
    
    
    
    258
    
    
    Medium-sized hydraulic excavators, wheel loaders and backhoe loaders
  32




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##### Table of Contents



Note:1)     Komatsu Cummins Engine Co., Ltd. and a portion of Komatsu Castex Ltd. are located at
the Oyama Plant.    Approximate expectedcapital investment amountin the fiscal year endingMarch 31, 2011
    
    
    Principal investmentOperating Segment
    
    (Millions of Yen)
    
    
    objectives
    
    Sources of fundingConstruction, Mining and Utility Equipment
    
    
    84,784
    
    
    To reorganize production and to develop and manufacture new products, etc.
    
    Funds on hand, bank
borrowings, etc.Industrial Machinery and Others
    
    
    2,193
    
    
    To renew obsolete equipment and to streamline production, etc.
    
    Funds on hand, bank
borrowings, etc.Total
    
    
    86,977
 Note: Capital investment amounts exclude consumption tax.   33




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##### Table of Contents



Item 4A.
Unresolved Staff Comments
  
 Item 5. Operating and Financial Review and Prospects
 
 A. Operating Results
 Overview
  Komatsus Business
     34




---



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General Overview
      35




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##### Table of Contents



Summary of Operating Results
       36




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##### Table of Contents



Key Management Indices
   Results for Fiscal Year Ended March 31,
    
    
    Percentage ChangeManagement Indices
    
    2010
    
    
    2009
    
    
    2010 vs. 2009Net Sales
    
    ¥
    1,431,564 million
    
    
    ¥
    2,021,743 million
    
    
    
    -29.2
    %Segment Profit 1)
    
    ¥
    80,719 million
    
    
    ¥
    188,658 million
    
    
    
    -57.2
    %Operating Income
    
    ¥
    67,035 million
    
    
    ¥
    151,948 million
    
    
    
    -55.9
    %Operating Margin 2)
    
    
    4.7
    %
    
    
    7.5
    %
    
    -2.8 pointsROE 3)
    
    
    4.1
    %
    
    
    9.3
    %
    
    -5.2 pointsNet DER 4)
    
    
    0.60
    
    
    
    0.62
    
    
    
    -0.02
 Notes:1)
    
    Segment Profit = Net Sales - {(Cost of Sales) + (Selling, General and
Administrative Expenses)}For additional information, see Note 23 to the Consolidated Financial Statements.2)
    
    Operating Margin = Operating Income/Net Sales3)
    
    ROE = Net Income attributable to Komatsu Ltd. for the fiscal year/{(Komatsu Ltd.
Shareholders Equity at the beginning of the fiscal year) + (Komatsu Ltd. Shareholders
Equity at the end of the fiscal year)/2}4)
    
    Net Debt-to-Equity Ratio = (Interest-bearing Debt - Cash and
Cash Equivalents -
Time Deposits)/Komatsu Ltd. Shareholders Equity Net Sales
   37




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Segment Profit
  Operating Income, Operating Margin
    38




---



##### Table of Contents



ROE
  Net DER
   Critical Accounting Policies
      39




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40




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41




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##### Table of Contents



42




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##### Table of Contents



Pension obligations
    
    Net periodic pension costsChange in assumption
    
    (Billions of Yen)
    
    (Billions of Yen)0.5% increase/ decrease in
discount rate
    
    -11.2 /+12.1
    
    -1.1 /+1.10.5% increase/ decrease in
expected long-term rate of
return
    
    
    
    -0.5 /+0.5
 Recent Accounting Standards Not Yet Adopted
    43




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##### Table of Contents



Comparison of the Fiscal Years ended March 31, 2010 and 2009
  Consolidated Statements of Income
 Millions of Yen
    
    
    Percentage
    
    
    Millions ofFiscal Years Ended March 31,
    
    

change
    
    

U.S. dollars2010
    
    

2009
    
    

2010 vs. 2009
    
    

2010Net sales
    
    ¥
    1,431,564
    
    
    
    100.0
    %
    
    ¥
    2,021,743
    
    
    
    100.0
    %
    
    
    -29.2
    %
    
    $
    15,393Cost of sales
    
    
    1,101,559
    
    
    
    76.9
    %
    
    
    1,510,408
    
    
    
    74.7
    %
    
    
    -27.1
    %
    
    
    11,845Selling, general and administrative expenses
    
    
    249,286
    
    
    
    17.4
    %
    
    
    322,677
    
    
    
    16.0
    %
    
    
    -22.7
    %
    
    
    2,680Impairment loss on long-lived assets
    
    
    3,332
    
    
    
    0.2
    %
    
    
    16,414
    
    
    
    0.8
    %
    
    
    -79.7
    %
    
    
    36Impairment loss on goodwill
    
    
    
    
    
    
    
    
    
    
    2,003
    
    
    
    0.1
    %
    
    
    -100.0
    %
    
    
    
  44




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##### Table of Contents



Millions of Yen
    
    
    Percentage
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    change
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010 vs. 2009
    
    
    2010Other operating expenses, net
    
    
    (10,352
    )
    
    
    -0.7
    %
    
    
    (18,293
    )
    
    
    -0.9
    %
    
    
    -43.4
    %
    
    
    (111
    )Operating income
    
    
    67,035
    
    
    
    4.7
    %
    
    
    151,948
    
    
    
    7.5
    %
    
    
    -55.9
    %
    
    
    721Other income (expenses), net
    
    
    (2,056
    )
    
    
    
    
    
    
    (23,166
    )
    
    
    
    
    
    
    -91.1
    %
    
    
    (22
    )Interest and dividend income
    
    
    6,158
    
    
    
    
    
    
    
    8,621
    
    
    
    
    
    
    
    -28.6
    %
    
    
    66Interest expense
    
    
    (8,502
    )
    
    
    
    
    
    
    (14,576
    )
    
    
    
    
    
    
    -41.7
    %
    
    
    (91
    )Other, net
    
    
    288
    
    
    
    
    
    
    
    (17,211
    )
    
    
    
    
    
    
    -101.7
    %
    
    
    3Income from continuing operations before income taxes and equity in earnings of affiliated companies
    
    
    64,979
    
    
    
    4.5
    %
    
    
    128,782
    
    
    
    6.4
    %
    
    
    -49.5
    %
    
    
    699Income taxesCurrent
    
    
    32,722
    
    
    
    
    
    
    
    60,511
    
    
    
    
    
    
    
    
    
    
    
    352Deferred
    
    
    (7,358
    )
    
    
    
    
    
    
    (18,218
    )
    
    
    
    
    
    
    
    
    
    
    (79
    )Total
    
    
    25,364
    
    
    
    1.8
    %
    
    
    42,293
    
    
    
    2.1
    %
    
    
    -40.0
    %
    
    
    273Income from continuing operations before equity in earnings of affiliated companies
    
    
    39,615
    
    
    
    2.8
    %
    
    
    86,489
    
    
    
    4.3
    %
    
    
    -54.2
    %
    
    
    426Equity in earnings of affiliated companies
    
    
    1,588
    
    
    
    0.1
    %
    
    
    396
    
    
    
    0.0
    %
    
    
    301.0
    %
    
    
    17Net income
    
    
    41,203
    
    
    
    2.9
    %
    
    
    86,885
    
    
    
    4.3
    %
    
    
    -52.6
    %
    
    
    443Less net income attributable to noncontrolling interests
    
    
    (7,644
    )
    
    
    -0.5
    %
    
    
    (8,088
    )
    
    
    -0.4
    %
    
    
    -5.5
    %
    
    
    (82
    )Net income attributable to Komatsu Ltd.
    
    ¥
    33,559
    
    
    
    2.3
    %
    
    ¥
    78,797
    
    
    
    3.9
    %
    
    
    -57.4
    %
    
    $
    361Yen

    
    

U.S.
centsPer share dataNet income attributable to Komatsu Ltd.:Basic
    
    
    34.67
    
    
    
    
    
    
    
    79.95
    
    
    
    
    
    
    
    
    
    
    
    37.28Diluted
    
    
    34.65
    
    
    
    
    
    
    
    79.89
    
    
    
    
    
    
    
    
    
    
    
    37.26Cash dividends per share
    
    ¥
    26.00
    
    
    
    
    
    
    ¥
    44.00
    
    
    
    
    
    
    
    
    
    
    ¢
    27.96
  45




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##### Table of Contents



Millions of Yen
    
    
    Percentage
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    change
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010 vs. 2009
    
    
    2010Segment profit
    
    
    80,719
    
    
    
    5.6
    %
    
    
    188,658
    
    
    
    9.3
    %
    
    
    -57.2
    %
    
    $
    868
 Note:Segment profit is obtained by subtracting cost of sales and selling, general and
administrative expenses from net sales. For additional information, see Note 23 to the
Consolidated Financial Statements. Net Sales
    46




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##### Table of Contents



Cost of Sales
  Selling, General and Administrative Expenses
  Impairment Loss on Long-Lived Assets
   47




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##### Table of Contents



Other Operating Expenses, net
  Operating Income
   Other Income (Expenses), net
   48




---



##### Table of Contents



Income from Continuing Operations Before Income Taxes and Equity in Earnings of Affiliated
Companies
  Income Taxes
   Income from Continuing Operations Before Equity in Earnings of Affiliated Companies
   49




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##### Table of Contents



Equity in Earnings of Affiliated Companies
  Net income
  Net Income Attributable to Noncontrolling Interests
  Net Income Attributable to Komatsu Ltd.
   50




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##### Table of Contents



Segment Profit
    Performance by Operating Segments
   51




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##### Table of Contents



Performance by Operating Segments
 Millions of YenFiscal Years Ended
    
    
    Percentage
    
    
    Millions ofMarch 31,
    
    
    Change
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010 vs. 2009
    
    
    2010Net sales:Construction, Mining and Utility EquipmentCustomers
    
    ¥
    1,268,575
    
    
    ¥
    1,744,733
    
    
    
    -27.3
    %
    
    $
    13,641Japan
    
    
    228,505
    
    
    
    309,895
    
    
    
    -26.3
    %
    
    
    2,457Americas
    
    
    306,135
    
    
    
    462,405
    
    
    
    -33.8
    %
    
    
    3,292Europe and CIS
    
    
    122,018
    
    
    
    273,259
    
    
    
    -55.3
    %
    
    
    1,312China
    
    
    244,509
    
    
    
    179,221
    
    
    
    36.4
    %
    
    
    2,629Asia (excluding Japan, China) and Oceania
    
    
    281,878
    
    
    
    309,721
    
    
    
    -9.0
    %
    
    
    3,031Middle East and Africa
    
    
    85,530
    
    
    
    210,232
    
    
    
    -59.3
    %
    
    
    920Intersegment
    
    
    2,690
    
    
    
    4,653
    
    
    
    -42.2
    %
    
    
    29Total
    
    
    1,271,265
    
    
    
    1,749,386
    
    
    
    -27.3
    %
    
    
    13,670Industrial Machinery and OthersCustomers
    
    
    162,989
    
    
    
    277,010
    
    
    
    -41.2
    %
    
    
    1,753Intersegment
    
    
    15,619
    
    
    
    26,389
    
    
    
    -40.8
    %
    
    
    168Total
    
    
    178,608
    
    
    
    303,399
    
    
    
    -41.1
    %
    
    
    1,921Elimination
    
    
    (18,309
    )
    
    
    (31,042
    )
    
    
    -41.0
    %
    
    
    (197
    )Consolidated Net Sales
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    
    -29.2
    %
    
    $
    15,393Segment Profit:Construction, Mining and Utility Equipment
    
    ¥
    83,061
    
    
    ¥
    180,455
    
    
    
    -54.0
    %
    
    $
    893Industrial Machinery and Others
    
    
    2,998
    
    
    
    12,891
    
    
    
    -76.7
    %
    
    
    32Total
    
    
    86,059
    
    
    
    193,346
    
    
    
    -55.5
    %
    
    
    925Corporate expenses and elimination
    
    
    (5,340
    )
    
    
    (4,688
    )
    
    
    13.9
    %
    
    
    (57
    )Consolidated Segment Profit
    
    ¥
    80,719
    
    
    ¥
    188,658
    
    
    
    -57.2
    %
    
    $
    868
 Notes:1)
    
    Transfers between segments are made at estimated arms-length prices.2)
    
    Segment profit is obtained by subtracting cost of sales and selling, general and
administrative expenses from net sales. For additional information, see Note 23 to the
Consolidated Financial Statements.  52




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##### Table of Contents



Construction, Mining and Utility Equipment
 Net sales
     53




---



##### Table of Contents



54




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##### Table of Contents



Segment Profit
    55




---



##### Table of Contents



Industrial Machinery and Others
 Net Sales
  Segment Profit
   56




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##### Table of Contents



Performance by Geographic Segments (based on the geographic origin of the seller)
  Performance by Geographic Segments
 Millions of YenFiscal Years Ended
    
    
    Percentage
    
    
    Millions ofMarch 31,
    
    
    Change
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010 vs. 2009
    
    
    2010Net sales:Japan
    
    ¥
    716,719
    
    
    ¥
    1,212,449
    
    
    
    -40.9
    %
    
    $
    7,707Americas
    
    
    347,717
    
    
    
    511,821
    
    
    
    -32.1
    %
    
    
    3,739Europe and CIS
    
    
    162,610
    
    
    
    294,398
    
    
    
    -44.8
    %
    
    
    1,748Others
    
    
    490,256
    
    
    
    481,250
    
    
    
    1.9
    %
    
    
    5,272Elimination
    
    
    (285,738
    )
    
    
    (478,175
    )
    
    
    -40.2
    %
    
    
    (3,073
    )Consolidated
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    
    -29.2
    %
    
    $
    15,393Segment Profit (Loss):Japan
    
    ¥
    (19,783
    )
    
    ¥
    37,876
    
    
    
    -152.2
    %
    
    $
    (213
    )Americas
    
    
    33,982
    
    
    
    52,133
    
    
    
    -34.8
    %
    
    
    365Europe and CIS
    
    
    10,460
    
    
    
    22,279
    
    
    
    -53.0
    %
    
    
    112Others
    
    
    60,151
    
    
    
    61,008
    
    
    
    -1.4
    %
    
    
    647Corporate and
elimination
    
    
    (4,091
    )
    
    
    15,362
    
    
    
    -126.6
    %
    
    
    (43
    )Consolidated
    
    ¥
    80,719
    
    
    ¥
    188,658
    
    
    
    -57.2
    %
    
    $
    868
 Note:
    
    Segment profit (loss) is obtained by subtracting cost of sales and selling,
general and administrative expenses from net sales. For additional information, see Note
23 to the Consolidated Financial Statements. Japan
 Net Sales
   57




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Segment Profit (Loss)
  Americas
 Net Sales
  Segment Profit
   58




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##### Table of Contents



Europe and CIS
 Net Sales
  Segment Profit
  Others
 Net Sales
  Segment Profit
   59




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##### Table of Contents



Comparison of the Fiscal Years ended March 31, 2009 and 2008
  Consolidated Statements of Income
 Millions of Yen
    
    
    PercentageFiscal Years Ended March 31,
    
    
    change2009
    
    
    2008
    
    
    2009 vs. 2008Net sales
    
    ¥
    2,021,743
    
    
    
    100.0
    %
    
    ¥
    2,243,023
    
    
    
    100.0
    %
    
    
    -9.9
    %Cost of sales
    
    
    1,510,408
    
    
    
    74.7
    %
    
    
    1,590,963
    
    
    
    70.9
    %
    
    
    -5.1
    %Selling, general and administrative
expenses
    
    
    322,677
    
    
    
    16.0
    %
    
    
    317,474
    
    
    
    14.2
    %
    
    
    1.6
    %Impairment loss on long-lived assets
    
    
    16,414
    
    
    
    0.8
    %
    
    
    2,447
    
    
    
    0.1
    %
    
    
    570.8
    %Impairment loss on goodwill
    
    
    2,003
    
    
    
    0.1
    %
    
    
    2,870
    
    
    
    0.1
    %
    
    
    -30.2
    %Other operating income (expenses), net
    
    
    (18,293
    )
    
    
    -0.9
    %
    
    
    3,581
    
    
    
    0.1
    %
    
    
    -610.8
    %Operating income
    
    
    151,948
    
    
    
    7.5
    %
    
    
    332,850
    
    
    
    14.8
    %
    
    
    -54.3
    %Other income (expenses), net
    
    
    (23,166
    )
    
    
    
    
    
    
    (10,640
    )
    
    
    
    
    
    
    117.7
    %Interest and
dividend income
    
    
    8,621
    
    
    
    
    
    
    
    10,265
    
    
    
    
    
    
    
    -16.0
    %Interest expense
    
    
    (14,576
    )
    
    
    
    
    
    
    (16,699
    )
    
    
    
    
    
    
    -12.7
    %Other, net
    
    
    (17,211
    )
    
    
    
    
    
    
    (4,206
    )Income from continuing operations
before income taxes and equity in
earnings of affiliated companies
    
    
    128,782
    
    
    
    6.4
    %
    
    
    322,210
    
    
    
    14.4
    %
    
    
    -60.0
    %Income taxesCurrent
    
    
    60,511
    
    
    
    
    
    
    
    104,142Deferred
    
    
    (18,218
    )
    
    
    
    
    
    
    11,652Total
    
    
    42,293
    
    
    
    2.1
    %
    
    
    115,794
    
    
    
    5.2
    %
    
    
    -63.5
    %
  60




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Millions of Yen
    
    
    PercentageFiscal Years Ended March 31,
    
    
    change2009
    
    
    2008
    
    
    2009 vs. 2008Income from continuing operations
before equity in earnings of affiliated
companies
    
    
    86,489
    
    
    
    4.3
    %
    
    
    206,416
    
    
    
    9.2
    %
    
    
    -58.1
    %Equity in earnings of affiliated
companies
    
    
    396
    
    
    
    0.0
    %
    
    
    6,845
    
    
    
    0.3
    %
    
    
    -94.2
    %Income from continuing operations
    
    
    86,885
    
    
    
    4.3
    %
    
    
    213,261
    
    
    
    9.5
    %
    
    
    -59.3
    %Income from discontinued operations
less applicable income taxes
    
    
    
    
    
    
    
    
    
    
    4,967
    
    
    
    0.2
    %
    
    
    -100.0
    %Net income
    
    ¥
    86,885
    
    
    
    4.3
    %
    
    ¥
    218,228
    
    
    
    9.7
    %
    
    
    -60.2
    %Less net income attributable to
noncontrolling interests
    
    
    (8,088
    )
    
    
    -0.4
    %
    
    
    (9,435
    )
    
    
    -0.4
    %
    
    
    -14.3
    %Net income attributable to Komatsu Ltd.
    
    ¥
    78,797
    
    
    
    3.9
    %
    
    ¥
    208,793
    
    
    
    9.3
    %
    
    
    -62.3
    %YenPer share dataIncome from continuing operations
attributable to Komatsu Ltd.:Basic
    
    ¥
    79.95
    
    
    
    
    
    
    ¥
    204.88Diluted
    
    
    79.89
    
    
    
    
    
    
    
    204.61Income from discontinued operations
attributable to Komatsu Ltd.:Basic
    
    
    
    
    
    
    
    
    
    
    4.99Diluted
    
    
    
    
    
    
    
    
    
    
    4.98Net income attributable to Komatsu Ltd.:Basic
    
    
    79.95
    
    
    
    
    
    
    
    209.87Diluted
    
    
    79.89
    
    
    
    
    
    
    
    209.59Cash dividends per share
    
    ¥
    44.00
    
    
    
    
    
    
    ¥
    38.00
  61




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Millions of Yen
    
    
    PercentageFiscal Years Ended March 31,
    
    
    change2009
    
    
    2008
    
    
    2009 vs. 2008Segment profit
    
    
    188,658
    
    
    
    9.3
    %
    
    
    334,586
    
    
    
    14.9
    %
    
    
    -43.6
    %
  1)
    
    In the fiscal year ended March 31, 2008, Komatsu sold the OPE business of Komatsu
Zenoah Co. and its subsidiaries. As a result, operating results and the gain recognized
on the sale of the OPE business of Komatsu Zenoah Co. and its subsidiaries are presented
as Income from discontinued operations less applicable income taxes for the fiscal year
ended March 31, 2008.2)
    
    Segment profit is obtained by subtracting cost of sales and selling, general and
administrative expenses from net sales. For additional information, see Note 23 to the
Consolidated Financial Statements. Net Sales
    62




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Cost of Sales
  Selling, General and Administrative Expenses
  Impairment Loss on Long-Lived Assets
   63




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Impairment loss on goodwill
  Other Operating Income (Expenses), net
  Operating Income
    64




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Other Income (Expenses), net
  Income from Continuing Operations Before Income Taxes and Equity in Earnings of Affiliated
Companies
  Income Taxes
   65




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Income from Continuing Operations Before Equity in Earnings of Affiliated Companies
  Equity in Earnings of Affiliated Companies
  Income from Continuing Operations
  Income from Discontinued Operations Less Applicable Income Taxes
  Net Income
   66




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Net Income Attributable to Noncontrolling Interests
  Net Income Attributable to Komatsu Ltd.
  Segment Profit
     67




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Performance by Operating Segments
  Millions of YenFiscal Years Ended
    
    
    PercentageMarch 31,
    
    
    Change2009
    
    
    2008
    
    
    2009 vs. 2008Net sales:Construction, Mining and Utility EquipmentCustomers
    
    ¥
    1,744,733
    
    
    ¥
    2,048,711
    
    
    
    -14.8
    %Japan
    
    
    309,895
    
    
    
    370,744
    
    
    
    -16.4
    %Americas
    
    
    462,405
    
    
    
    510,552
    
    
    
    -9.4
    %Europe and CIS
    
    
    273,259
    
    
    
    427,029
    
    
    
    -36.0
    %China
    
    
    179,221
    
    
    
    181,468
    
    
    
    -1.2
    %Asia (excluding
Japan, China) and
Oceania
    
    
    309,721
    
    
    
    328,725
    
    
    
    -5.8
    %Middle East and Africa
    
    
    210,232
    
    
    
    230,193
    
    
    
    -8.7
    %Intersegment
    
    
    4,653
    
    
    
    6,127
    
    
    
    -24.1
    %Total
    
    
    1,749,386
    
    
    
    2,054,838
    
    
    
    -14.9
    %
  68




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Millions of YenFiscal Years Ended
    
    
    PercentageMarch 31,
    
    
    Change2009
    
    
    2008
    
    
    2009 vs. 2008Industrial Machinery and OthersCustomers
    
    
    277,010
    
    
    
    194,312
    
    
    
    42.6
    %Intersegment
    
    
    26,389
    
    
    
    23,376
    
    
    
    12.9
    %Total
    
    
    303,399
    
    
    
    217,688
    
    
    
    39.4
    %Elimination
    
    
    (31,042
    )
    
    
    (29,503
    )
    
    
    5.2
    %Consolidated Net Sales
    
    ¥
    2,021,743
    
    
    ¥
    2,243,023
    
    
    
    -9.9
    %Segment Profit:Construction, Mining and Utility Equipment
    
    ¥
    180,455
    
    
    ¥
    317,895
    
    
    
    -43.2
    %Industrial Machinery and Others
    
    
    12,891
    
    
    
    19,947
    
    
    
    -35.4
    %Total
    
    
    193,346
    
    
    
    337,842
    
    
    
    -42.8
    %Corporate expenses and elimination
    
    
    (4,688
    )
    
    
    (3,256
    )
    
    
    44.0
    %Consolidated Segment Profit
    
    ¥
    188,658
    
    
    ¥
    334,586
    
    
    
    -43.6
    %
  1)
    
    Transfers between segments are made at estimated arms-length prices.2)
    
    Starting with the fiscal year ended March 31, 2009, Komatsu reclassified the
forklift truck business of Komatsu Utility Co., Ltd. and the businesses of Komatsu
Logistics Corp. (both of which were formerly in the Industrial Machinery, Vehicles and
Others operating segment) so that such businesses are part of Komatsus construction and
mining equipment business, and accordingly, changed its operating segments by renaming
the Construction and Mining Equipment operating segment as the Construction, Mining and
Utility Equipment operating segment and the Industrial Machinery, Vehicles and Others
operating segment as the Industrial Machinery and Others operating segment. As a result
of this reclassification, the financial data for the fiscal year ended March 31, 2008 in
the above table have been retrospectively reclassified using the new operating segments.3)
    
    Segment profit is obtained by subtracting cost of sales and selling, general and
administrative expenses from net sales. For additional information, see Note 23 to the
Consolidated Financial Statements. Construction, Mining and Utility Equipment
 Net sales
    69




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70




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71




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Segment Profit
   Industrial Machinery and Others
 Net Sales
   72




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Segment Profit
  Performance by Geographic Segments (based on the geographic origin of the seller)
  Performance by Geographic Segments
 Millions of YenFiscal Years Ended
    
    
    PercentageMarch 31,
    
    
    Change2009
    
    
    2008
    
    
    2009 vs. 2008Net sales:Japan
    
    ¥
    1,212,449
    
    
    ¥
    1,292,314
    
    
    
    -6.2
    %Americas
    
    
    511,821
    
    
    
    567,243
    
    
    
    -9.8
    %Europe and CIS
    
    
    294,398
    
    
    
    452,222
    
    
    
    -34.9
    %Others
    
    
    481,250
    
    
    
    517,887
    
    
    
    -7.1
    %Elimination
    
    
    (478,175
    )
    
    
    (586,643
    )
    
    
    -18.5
    %Consolidated
    
    ¥
    2,021,743
    
    
    ¥
    2,243,023
    
    
    
    -9.9
    %Segment Profit:Japan
    
    ¥
    37,876
    
    
    ¥
    173,063
    
    
    
    -78.1
    %Americas
    
    
    52,133
    
    
    
    56,667
    
    
    
    -8.0
    %Europe and CIS
    
    
    22,279
    
    
    
    44,088
    
    
    
    -49.5
    %Others
    
    
    61,008
    
    
    
    68,204
    
    
    
    -10.6
    %Corporate and
elimination
    
    
    15,362
    
    
    
    (7,436
    )
    
    
    -306.6
    %Consolidated
    
    ¥
    188,658
    
    
    ¥
    334,586
    
    
    
    -43.6
    %
 Note:
    
    Segment profit is obtained by subtracting cost of sales and selling, general and
administrative expenses from net sales. For additional information, see Note 23 to the
Consolidated Financial Statements.  73




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Japan
 Net Sales
   Segment Profit
   74




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##### Table of Contents



Americas
 Net Sales
  Segment Profit
  Europe and CIS
 Net Sales
  Segment Profit
   75




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Others
 Net Sales
  Segment Profit
  
 B. Liquidity and Capital Resources
 Cash Flow
  Condensed Consolidated Statements of Cash Flows
 Millions of yen
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Net cash provided by operating activities
    
    ¥
    182,161
    
    
    ¥
    78,775
    
    
    ¥
    160,985
    
    
    $
    1,959Net cash used in investing activities
    
    
    (72,967
    )
    
    
    (145,368
    )
    
    
    (128,182
    )
    
    
    (785
    )Net cash provided by (used in) financing activities
    
    
    (116,363
    )
    
    
    57,219
    
    
    
    (17,422
    )
    
    
    (1,251
    )Effect of exchange rate change on cash and cash
equivalents
    
    
    ( 965
    )
    
    
    (2,073
    )
    
    
    (5,570
    )
    
    
    (10
    )Net increase (decrease) in cash and cash equivalents
    
    
    (8,134
    )
    
    
    (11,447
    )
    
    
    9,811
    
    
    
    (87
    )Cash and cash equivalents, beginning of year
    
    
    90,563
    
    
    
    102,010
    
    
    
    92,199
    
    
    
    973Cash and cash equivalents, end of year
    
    ¥
    82,429
    
    
    ¥
    90,563
    
    
    ¥
    102,010
    
    
    $
    886
     76




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Capital Investment
    77




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##### Table of Contents



Source of Funds and Liquidity Management
    78




---



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Fiscal 2010 Financial Position
     79




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Credit Ratings
  
  80




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##### Table of Contents



C. Research and Development, Patents and Licenses, etc.
   Millions of yen
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    U.S. dollarsR&D expenses
    
    2010
    
    
    2009
    
    
    2008
    
    
    2010Construction, Mining and
Utility Equipment
    
    ¥
    40,359
    
    
    ¥
    47,036
    
    
    ¥
    44,036
    
    
    $
    434Industrial Machinery and Others
    
    
    6,090
    
    
    
    6,700
    
    
    
    5,637
    
    
    
    65Total
    
    ¥
    46,449
    
    
    ¥
    53,736
    
    
    ¥
    49,673
    
    
    $
    499
 Note:
    
    From the fiscal year ended March 31, 2009, Komatsu reclassified its operating
segments. Accordingly, the financial data for the fiscal years ended March 31, 2008 in
the above table have been retrospectively adjusted to reflect the reclassification using
the new operating segments.      81




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2 X 2
     82




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D. Trend Information
 Construction, Mining and Utility Equipment Operating Segment
     83




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##### Table of Contents



Industrial Machinery and Others Operating Segment
  Forward looking statements
    84




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E. Off-Balance Sheet Arrangements
      Millions of yenFiscal Years Ended
    
    
    Millions ofMarch 31,
    
    

U.S. dollars2010
    
    
    2009
    
    
    2010Total amount of
trade receivables
that are managed
and securitized
    
    ¥
    635,610
    
    
    ¥
    595,968
    
    
    $
    6,835Assets transferred
    
    
    (22,004
    )
    
    
    (103,768
    )
    
    
    (237
    )Total amount of
trade receivables
on balance sheet
    
    ¥
    613,606
    
    
    ¥
    492,200
    
    
    $
    6,598
  85




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Commitments and Contingent Liabilities
        86




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Millions of yen
    
    
    Millions ofFiscal Years Ended March 31,
    
    

U.S. dollars2010
    
    
    2009
    
    
    2010Balance at beginning of year
    
    ¥
    28,256
    
    
    ¥
    31,890
    
    
    $
    304Addition
    
    
    21,149
    
    
    
    25,288
    
    
    
    227Utilization
    
    
    (25,477
    )
    
    
    (26,369
    )
    
    
    (274
    )Other
    
    
    (170
    )
    
    
    (2,553
    )
    
    
    (2
    )Balance at end of year
    
    ¥
    23,758
    
    
    ¥
    28,256
    
    
    $
    255
 
 F. Tabular Disclosure of Contractual Obligations
  Millions of yenCash payments due by periodLess than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 yearsShort-term debt obligations
    
    ¥
    123,438
    
    
    ¥
    123,438
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    Long-term debt obligations (excluding
Capital lease obligations)
    
    
    382,819
    
    
    
    82,521
    
    
    
    198,158
    
    
    
    101,065
    
    
    
    1,075Capital (Finance) lease obligations
    
    
    72,951
    
    
    
    21,590
    
    
    
    41,255
    
    
    
    8,860
    
    
    
    1,246Operating lease obligations
    
    
    13,426
    
    
    
    4,783
    
    
    
    4,847
    
    
    
    1,719
    
    
    
    2,077Interest on interest-bearing debt
(including Capital lease obligations)
    
    
    14,836
    
    
    
    8,664
    
    
    
    5,033
    
    
    
    1,113
    
    
    
    26Pension and other postretirement obligations
    
    
    4,384
    
    
    
    4,384
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    611,854
    
    
    ¥
    245,380
    
    
    ¥
    249,293
    
    
    ¥
    112,757
    
    
    ¥
    4,424
  87




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##### Table of Contents



Millions of U.S. dollarsCash payments due by periodLess than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 yearsShort-term debt obligations
    
    $
    1,327
    
    
    $
    1,327
    
    
    $
    
    
    
    $
    
    
    
    $
    Long-term debt obligations (excluding
Capital lease obligations)
    
    
    4,116
    
    
    
    886
    
    
    
    2,131
    
    
    
    1,087
    
    
    
    12Capital (finance) lease obligations
    
    
    784
    
    
    
    232
    
    
    
    444
    
    
    
    95
    
    
    
    13Operating lease obligations
    
    
    144
    
    
    
    52
    
    
    
    52
    
    
    
    18
    
    
    
    22Interest on interest-bearing debt
(including Capital lease obligations)
    
    
    160
    
    
    
    94
    
    
    
    54
    
    
    
    12
    
    
    
    0Pension and other postretirement obligations
    
    
    47
    
    
    
    47
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    6,578
    
    
    $
    2,638
    
    
    $
    2,681
    
    
    $
    1,212
    
    
    $
    47
     
 G. Safe Harbor
   88




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##### Table of Contents



Item 6. Directors, Senior Management and Employees
 
 A. Directors and Senior Management
  Board
of Directors
 Masahiro Sakane
 Date of Birth:
    
    Jan. 7, 1941Director Since:
    
    Jun. 1989Current Positions:
    
    Chairman of the Board and Director (since Jun. 2010)Prior Positions:Jun. 2007
    
    Chairman of the Board and Representative DirectorJun. 2003
    
    President, Representative Director and Chief Executive OfficerJun. 2001
    
    President and Representative DirectorJun. 1999
    
    Executive Vice President and Representative DirectorJun. 1997
    
    Executive Managing DirectorJun. 1994
    
    Managing DirectorJun. 1989
    
    DirectorJun. 1989
    
    General Manager, Business Development DivisionApr. 1963
    
    Joined the CompanyPrincipal Business Activities outside the Company:Outside Director of Nomura Holdings, Inc.Outside Director of Tokyo Electron Limited
 Kunio Noji*
 Date of Birth:
    
    Nov. 17, 1946Director Since:
    
    Jun. 2001Current Positions:
    
    President, Representative Director and Chief Executive Officer (since Jun. 2007)Prior Positions:Apr. 2003
    
    Director and Senior Executive Officer (Senmu)Jun. 2001
    
    Managing DirectorJun. 2000
    
    Senior Executive Officer (Joumu)Jun. 1999
    
    Executive OfficerJun. 1997
    
    DirectorMar. 1997
    
    General Manager, Information Systems DivisionApr. 1969
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
  89




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##### Table of Contents



Yoshinori Komamura*
 Date of Birth:
    
    Feb. 20, 1948Director Since:
    
    Jun. 2005Current Positions:
    
    Executive Vice President and Representative Director (since Jun. 2010)President of Construction and Mining Equipment Marketing Division (since Apr. 2005)Prior Positions:Apr. 2007
    
    Senior Executive Officer (Senmu)Jun. 2005
    
    DirectorApr. 2005
    
    Senior Executive Officer (Joumu)Jun. 1999
    
    President and Representative Director of Komatsu Europe International N.V.Apr. 1970
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
 Yasuo Suzuki*
 Date of Birth:
    
    Jan. 28, 1948Director Since:
    
    Jun. 2004Current Positions:
    
    Director (since Jun. 2004)Senior Executive Officer (Senmu) (since Apr. 2007)President of Industrial Machinery Division (since Apr. 2009)In charge of the Ishikawa Prefecture Area (since Apr. 2004)Prior Positions:Apr. 2008
    
    President, Industrial Machinery General HeadquartersApr. 2004
    
    Senior Executive Officer (Joumu)Jun. 2002
    
    Executive OfficerApr. 2002
    
    President, Industry Machinery DivisionApr. 1970
    
    Joined the CompanyPrincipal Business Activities outside the Company:Outside Director of Fuji Technica Inc.
  90




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##### Table of Contents



Kenji Kinoshita*
 Date of Birth:
    
    Oct. 7, 1947Director Since:
    
    Jun. 2007Current Positions:
    
    Director (since Jun. 2007)Chief Financial Officer
(CFO) (since Jun. 2001)Senior Executive Officer (Senmu) (since Apr. 2008)Supervising Investor Relations (since Apr. 2010)Prior Positions:Apr. 2004
    
    Senior Executive Officer (Joumu)Jun. 2000
    
    Executive OfficerJan. 1996
    
    General Manager, Finance and Treasury Dept., Accounting DivisionJul. 1971
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
 Masao Fuchigami*
 Date of Birth:
    
    May 19, 1949Director Since:
    
    Jun. 2009Current Positions:
    
    Director (since Jun. 2009)Senior Executive Officer (Senmu) (since Apr. 2009)Supervising Environment, Research, Design & Development and Quality Assurance (since Apr. 2009)Prior Positions:Apr. 2007
    
    Senior Executive Officer (Joumu)Jun. 2002
    
    President of Research DivisionJun. 2001
    
    Executive OfficerSep. 1995
    
    General Manager of the 4th Research Dept., Central Research Center, Research DivisionApr. 1972
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
 Tetsuji Ohashi*
 Date of Birth:
    
    Mar. 23, 1954Director Since:
    
    Jun. 2009Current Positions:
    
    Director (since Jun. 2009)Senior Executive Officer (Joumu) (since Apr. 2008)President of Production Division (since Apr. 2007)Supervising Production and e-KOMATSU (since Apr. 2007)Prior Positions:Apr. 2007
    
    Executive OfficerOct. 1998
    
    General Manager of Planning & Coordination Dept. of Awazu Plant, Production DivisionApr. 1977
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
  91




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Kensuke Hotta
 Date of Birth:
    
    Oct. 12, 1938Director Since:
    
    Jun. 2008Current Position:
    
    Outside Director (since Jun. 2008)Prior Positions (outside the Company):Dec. 2008
    
    Chairman and Representative Director of Greenhill & Co. Japan Ltd. (current position)Dec. 2007
    
    Senior Advisor of Morgan Stanley
Japan Securities Co., Ltd. (now known as Morgan Stanley MUFG Securities Co., Ltd.)Oct. 2007
    
    Chairman and Representative Director of Hotta Partners Inc. (current position)Apr. 2006
    
    Chairman and Representative
Director of Morgan Stanley Japan Securities Co., Ltd. (now known as Morgan Stanley MUFG Securities Co., Ltd.)Jan. 2001
    
    Chairman of Morgan Stanley Japan LimitedJun. 1997
    
    Deputy President and Representative
Director of the Sumitomo Bank, Ltd. (now known as Sumitomo Mitsui
Banking Corporation, hereinafter the Bank)Oct. 1992
    
    Senior Managing Director and Representative Director of the BankOct. 1990
    
    Managing Director of the BankJun. 1987
    
    Director of the BankApr. 1962
    
    Joined the BankPrincipal Business Activities outside the Company:Chairman and Representative Director of Greenhill & Co. Japan Ltd.Chairman and Representative Director of Hotta Partners Inc.Outside Corporate Auditor of Mitsui O.S.K. Lines, Ltd.Outside Corporate Auditor of SEIREN CO., LTD.
 Noriaki Kano
 Date of Birth:
    
    Apr. 29, 1940Director Since:
    
    Jun. 2008Current Position:
    
    Outside Director (since Jun. 2008)Prior Positions (outside the Company):Jun. 2006
    
    Professor Emeritus at Tokyo University of Science (current position)Oct. 1982
    
    Professor at Faculty of Engineering, Tokyo University of SciencePrincipal Business Activities outside the Company:Professor Emeritus at Tokyo University of Science
  92




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Kouichi Ikeda
 Date of Birth:
    
    Apr. 21, 1940Director Since:
    
    Jun. 2010Current Position:
    
    Outside Director (since Jun. 2010)Prior Positions (outside the Company):Mar. 2010
    
    Corporate Advisor of Asahi Breweries, Ltd. (current position)Mar. 2006
    
    Chairman of the Board and Chief Executive Officer of Asahi Brewers, Ltd.Jan. 2002
    
    President and Chief Operating Officer of Asahi Brewers, Ltd.Mar. 2001
    
    Senior Managing Director and Senior Managing Executive Officer of Asahi Brewers, Ltd.Mar. 2000
    
    Senior Managing Executive Officer of Asahi Brewers, Ltd.Mar. 1999
    
    Senior Managing Director of Asahi Brewers, Ltd.Mar. 1997
    
    Managing Director of Asahi Brewers, Ltd.Mar. 1996
    
    Director of Asahi Brewers, Ltd.Apr. 1963
    
    Joined Asahi Brewers, Ltd.Principal Business Activities outside the Company:None
 Corporate
Auditors
 Masaji Kitamura
 Date of Birth:
    
    Aug. 19, 1947Corporate Auditor Since:
    
    Jun. 2008Current Positions:
    
    Corporate Auditor (Full Time) (since Jun. 2008)Prior Positions:Apr. 2007
    
    Senior Executive Officer (Joumu)Apr. 2005
    
    President of Construction and Mining Equipment Strategy DivisionApr. 2003
    
    Executive OfficerJun. 1994
    
    President of Procurement Division of Osaka Plant, Construction Equipment DivisionApr. 1971
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
  93




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Kyoji Torii
 Date of Birth:
    
    Sep. 5, 1951Corporate Auditor Since:
    
    Jun. 2009Current Positions:
    
    Corporate Auditor (Full Time) (since Jun. 2009)Prior Positions:Jun. 2009
    
    Assistant to Corporate AuditorJun. 2007
    
    General Manager of Planning & Administration Dept., Defense Systems DivisionJun. 1999
    
    General Manager of Affiliated Companies Dept.Apr. 1974
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
 Makoto Okitsu
 Date of Birth:
    
    Dec. 2, 1939Corporate Auditor Since:
    
    Jun. 2006Current Position:
    
    Outside Corporate Auditor (since Jun. 2006)Prior Positions (outside the Company):Jun. 2008
    
    Advisor of Teijin Limited (current position)Jun. 2006
    
    Chairman and Director of Teijin LimitedJun. 2005
    
    Chairman and Director of Nabtesco Corporation(previously known as Teijin Seiki Co., Ltd.)Jun. 2005
    
    Chairman and Representative Director of Teijin LimitedJun. 2004
    
    Director of Teijin LimitedSep. 2003
    
    President and Representative Director of Nabtesco CorporationJun. 1999
    
    Director of Teijin LimitedJun. 1998
    
    President and Representative Director of Teijin Seiki Co., Ltd.Jun. 1996
    
    Managing Director of Teijin Seiki Co., Ltd.Jun. 1994
    
    Director of Teijin Seiki Co., Ltd.Apr. 1963
    
    Joined Teijin LimitedPrincipal Business Activities outside the Company:Advisor to Teijin Limited
  94




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Hiroyuki Kamano
 Date of Birth:
    
    Jul. 21, 1945Corporate Auditor Since:
    
    Jun. 2007Current Position:
    
    Outside Corporate Auditor (since Jun. 2007)Prior Positions (outside the Company):Oct. 1988
    
    Partner of the Kamano Sogo Law OfficesApr. 1981
    
    Registered as attorney-at-law (bengoshi)Dec. 1978
    
    Retired from the Ministry of Foreign AffairsApr. 1971
    
    Entered the Ministry of Foreign AffairsPrincipal Business Activities outside the Company:Partner (attorney-at-law) of Kamano Sogo Law OfficesOutside Director of Sumitomo Life Insurance Company
 Kunihiro Matsuo
 Date of Birth:
    
    Sep. 13, 1942Corporate Auditor Since:
    
    Jun. 2009Current Position:
    
    Outside Corporate Auditor (since Jun. 2009)Prior Positions (outside the Company):Sep. 2006
    
    Registered as attorney-at-law (bengoshi)Jun. 2006
    
    Retired from the position of Prosecutor-General of Supreme Public Prosecutors OfficeJun. 2004
    
    Prosecutor- General of Supreme Public Prosecutors OfficeSep. 2003
    
    Superintending Prosecutor of Tokyo High Public Prosecutors OfficeMay 1998
    
    Prosecutor of Supreme Public Prosecutors OfficeApr. 1988
    
    Counsellor of Ministers Secretariat, Ministry of JusticeApr. 1968
    
    Appointed as Prosecutor of Tokyo District Public Prosecutors OfficePrincipal Business Activities outside the Company:Attorney-at-LawOutside Director of Asahi Glass Co., Ltd.Outside Director of Tokyo Stock Exchange Group, Inc.Outside Corporate Auditor of Toyota Motor CorporationOutside Corporate Auditor of Mitsui & Co., Ltd.Outside Corporate Auditor of Sompo Japan Insurance Inc.
  95




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1)
    
    Directors Kensuke Hotta, Noriaki Kano and Kouichi Ikeda satisfy the
requirements for outside director set forth in Article 2, Item 15 of the Corporation
Act of Japan.2)
    
    Corporate auditors Makoto Okitsu, Hiroyuki Kamano and Kunihiro Matsuo
satisfy the requirements for outside corporate auditors set forth in Article 2, Item
16 of the Corporation Act of Japan.3)
    
    The Company determined that Directors Kensuke Hotta, Noriaki Kano and
Kouichi Ikeda satisfy the definition of Independent Director and Corporate Auditors
Makoto Okitsu, Hiroyuki Kamano and Kunihiro Matsuo satisfy the definition of
Independent Corporate Auditor as set forth by the Tokyo Stock Exchange and the Osaka
Stock Exchange, and have notified each such Exchanges of such designation.4)
    
    The Company introduced an executive officer system in June 1999. As of June
24, 2010, the Company has 31 officers including 6 persons simultaneously holding the
position of director. Such persons have been marked with an asterisk in the above
table.5)
    
    There are no family relationships between any of the directors or corporate
auditors of the Company.6)
    
    There are no arrangements or understandings with major shareholders,
customers, suppliers or others, pursuant to which any of the directors or corporate
auditors of the Company were selected as a director or member of senior management.
 Corporate Governance
 Basic Stance on Corporate Governance
  Current State of Progress Concerning Corporate Governance
  a. Organizational Framework
   96




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b. Support for Outside Directors (and Outside Corporate Auditors)
  c. Collaboration between Corporate Auditors and Independent Public Accounting Firm
   97




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d. Collaboration between Corporate Auditors and the Internal Audit Department
   e. Collaboration between the Internal Audit Department and Independent Public Accounting
Firm
     98




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B. Compensation
      99




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Indicator
    
    RatioBasic Indicators
    
    Consolidated ROE (Net income attributable to Komatsu Ltd. divided by Komatsu Ltd. shareholders equity)
    
    
    70
    %Consolidated ROA (Income before income taxes and equity in earnings of affiliated companies divided by total assets)
    
    
    30
    %Adjustment Indicators
    
    Adjustment according to growth rate of consolidated sales and profit margin of segment
    
    
    
   Amount ofNumber of
    
    
    Remuneration paidRemuneration
    
    Persons Paid
    
    
    (Millions of Yen)
    
    
    ReferenceDirectors
    
    
    12
    
    
    
    613
    
    
    Including bonuses and stock options(Outside Directors included above)
    
    
    (3
    )
    
    
    (67
    )Corporate Auditors
    
    
    7
    
    
    
    110
    
    
    (Outside Corporate Auditors included above)
    
    
    (4
    )
    
    
    (40
    )Total
    
    
    19
    
    
    ¥
    723
    
    
    (Outside Directors and Outside Corporate Auditors included above)
    
    
    (7
    )
    
    ¥
    (107
    )
   Non-MonetaryMonetary Remuneration
    
    
    Remuneration, Etc.
    
    
    Total Amount ofName and Title
    
    Salary
    
    
    Bonus
    
    
    Total
    
    
    Stock Options
    
    
    Remuneration PaidMasahiro Sakane, Chairman of the Board and Director
    
    
    79
    
    
    
    13
    
    
    
    92
    
    
    
    28
    
    
    
    120Kunio Noji, President
Representative Director and 
Chief Executive Officer
    
    
    86
    
    
    
    14
    
    
    
    101
    
    
    
    28
    
    
    
    129
  100




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1)
    
    The remuneration value for Stock Options included in the Total Amount of Remuneration
Paid is the amount that
has been recorded by the Company from an accounting perspective as Non-Monetary Compensation,
etc. for the fiscal year ended March 31, 2010. More specifically, each of the above persons have
been granted the right to subscribe for or purchase 44,000 shares of common stock of the Company
(at an exercise price per share of ¥1,729). In accordance with the Accounting Standards Board of
Japan Statement No. 8 Accounting Standard for Share-based Payment, the remuneration value for Stock
Options that has been recorded by the Company from an accounting perspective for the fiscal year
ended March 31, 2010 has been calculated by multiplying the fair value per share (¥643 per share)
as of the grant date (September 1, 2009) by the number of shares granted.2)
    
    The retirement allowance system for directors and corporate auditors has been abolished as
of June 2007.3)
    
    The figures in the above table have been rounded to the nearest Yen one million. Accordingly,
the amounts do not necessarily add up to figures provided under Monetary Remuneration  Total or
Total Amount of Remuneration Paid. Bonuses
  Retirement Allowance
  Stock Options
   101




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C. Board Practices
   102




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D. Employees
  Number of employees by operating segment
 As of March 31,2010
    
    
    2009
    
    
    2008Construction, Mining and Utility Equipment
    
    
    33,766
    
    
    
    34,986
    
    
    
    34,549(3,926
    )
    
    
    (7,354
    )
    
    
    (7,408
    )Industrial Machinery and Others
    
    
    4,180
    
    
    
    4,340
    
    
    
    4,251(901
    )
    
    
    (1,395
    )
    
    
    (1,108
    )Corporate
    
    
    572
    
    
    
    529
    
    
    
    467(113
    )
    
    
    (92
    )
    
    
    (72
    )Total
    
    
    38,518
    
    
    
    39,855
    
    
    
    39,267(4,940
    )
    
    
    (8,841
    )
    
    
    (8,588
    )
  103




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1)
    
    The numbers in parentheses refer to the average number of temporary employees during
the relevant fiscal year ended March 31, which are not included in the number of
employees.2)
    
    The number of employees under Corporate refers to employees working for
administrative departments who cannot be classified into the two operating segments.3)
    
    The number of employees as of March 31, 2010 decreased by 1,337 as compared to the
number as of March 31, 2009. This decrease was due primarily to the reduction of
production volume and structural reforms of Komatsus production and sales operations.4)
    
    Starting with the fiscal year ended March 31, 2009, Komatsu reclassified the forklift
truck business of Komatsu Utility Co., Ltd. and the businesses of Komatsu Logistics Corp.
(both of which were formerly in the Industrial Machinery, Vehicles and Others operating
segment) so that such businesses are part of Komatsus construction and mining equipment
business, and accordingly, changed its operating segments by renaming the Construction and
Mining Equipment operating segment as the Construction, Mining and Utility Equipment
operating segment and the Industrial Machinery, Vehicles and Others operating segment as
the Industrial Machinery and Others operating segment. As a result of this
reclassification, the numbers for the fiscal years ended March 31, 2008 in the above table
have been retrospectively reclassified using the new operating segments.    104




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E. Share Ownership
  Number ofshares heldName
    
    Position
    
    (in thousands)Masahiro Sakane
    
    Chairman of the Board, Director
    
    
    102Kunio Noji
    
    President, Representative Director
    
    
    73Yoshinori Komamura
    
    Executive Vice President, Representative Director
    
    
    28Yasuo Suzuki
    
    Director
    
    
    24Kenji Kinoshita
    
    Director
    
    
    36Masao Fuchigami
    
    Director
    
    
    15Tetsuji Ohashi
    
    Director
    
    
    20Kensuke Hotta
    
    Director
    
    
    1Noriaki Kano
    
    Director
    
    
    6Kouichi Ikeda
    
    Director
    
    
    Masaji Kitamura
    
    Corporate Auditor (Full time)
    
    
    10Kyoji Torii
    
    Corporate Auditor (Full time)
    
    
    17Makoto Okitsu
    
    Corporate Auditor
    
    
    Hiroyuki Kamano
    
    Corporate Auditor
    
    
    3Kunihiro Matsuo
    
    Corporate Auditor
    
    
    Total
    
    
    
    
    338
 Note:
    
    The number of shares for each director and corporate auditor are rounded down.
Accordingly, the sum of the amounts indicated in the Number of shares held (in
thousands) column may not add up to the figure provided as the Total.  Number of Stock
    
    Exercise PriceName
    
    Grant Date
    
    Acquisition Rights
    
    (Yen per Share)
    
    
    Expiration DateMasahiro Sakane
    
    08/01/2006
    
    64
    
    
    2,325
    
    
    07/31/201409/03/2007
    
    44
    
    
    3,661
    
    
    08/31/201509/01/2008
    
    34
    
    
    2,499
    
    
    08/31/201609/01/2009
    
    44
    
    
    1,729
    
    
    08/31/2017Kunio Noji
    
    08/01/2006
    
    37
    
    
    2,325
    
    
    07/31/201409/03/2007
    
    44
    
    
    3,661
    
    
    08/31/201509/01/2008
    
    34
    
    
    2,499
    
    
    08/31/201609/01/2009
    
    44
    
    
    1,729
    
    
    08/31/2017
 Note:
    
    Stock Acquisition Rights grant the right to subscribe for or purchase shares of
common stock of the Company. The number of shares of common stock that can be subscribed
for or purchased with one Stock Acquisition Right is 1,000 shares.  105




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106




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Item 7. Major Shareholders and Related Party Transactions
 
 A. Major Shareholders
  Major Shareholders as of March 31, 2010
 Number of Shares Held
    
    
    PercentageName of Major Shareholders
    
    (in thousands)
    
    
    (%)Japan Trustee Services Bank, Ltd. (Trust Account)
    
    
    51,931
    
    
    
    5.19Taiyo Life Insurance Company
    
    
    42,000
    
    
    
    4.20The Master Trust Bank of Japan, Ltd. (Trust Account)
    
    
    39,468
    
    
    
    3.95Nippon Life Insurance Co.
    
    
    33,283
    
    
    
    3.33JPMorgan Chase Bank 380055
    
    
    23,344
    
    
    
    2.33State Street Bank and Trust Company
    
    
    22,950
    
    
    
    2.29CBNY-IVY Funds Inc Asset Strategy Fund
    
    
    20,661
    
    
    
    2.06Sumitomo Mitsui Banking Corporation
    
    
    17,835
    
    
    
    1.78The Bank of New York Mellon as Depositary Bank
for Depositary Receipt Holders
    
    
    16,818
    
    
    
    1.68NIPPONKOA Insurance Co., Ltd.
    
    
    13,962
    
    
    
    1.39Total of Top 10 Shareholders
    
    
    282,255
    
    
    
    28.26
  1)
    
    The figures for each shareholder are rounded. Accordingly, the sum of the
amounts indicated in each column does not necessarily add up to the figures provided as
Total of Top 10 Shareholders.2)
    
    30,157 thousand shares of treasury stock held by the Company are excluded from
the Major Shareholders list above.3)
    
    Shares held by the Japan Trustee Services Bank, Ltd. and The Master Trust Bank
of Japan, Ltd. are held through trusts.       107




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B. Related Party Transactions
   
 C. Interests of Experts and Counsel
  
 Item 8. Financial Information
 
 A. Consolidated Statements and Other Financial Information
       108




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B. Significant Changes
  
 Item 9. The Offer and Listing
 
 A. Offer and Listing Details
     109




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TSE
    
    
    ADS(Japanese Yen)
    
    
    (U.S. dollars)Period
    
    High
    
    
    Low
    
    
    High
    
    
    LowAnnual highs and lowsThe fiscal year ended March
31, 2006
    
    
    2,255
    
    
    
    715
    
    
    
    19.06
    
    
    
    6.72The fiscal year ended March
31, 2007
    
    
    2,870
    
    
    
    1,857
    
    
    
    23.80
    
    
    
    16.60The fiscal year ended March
31, 2008
    
    
    4,090
    
    
    
    2,175
    
    
    
    34.68
    
    
    
    20.68The fiscal year ended March
31, 2009
    
    
    3,440
    
    
    
    702
    
    
    
    32.62
    
    
    
    8.18The fiscal year ended March
31, 2010
    
    
    2,099
    
    
    
    1,090
    
    
    
    22.93
    
    
    
    11.25Quarterly highs and lowsThe fiscal year ended March
31, 20091st quarter
    
    
    3,440
    
    
    
    2,600
    
    
    
    32.62
    
    
    
    26.062nd quarter
    
    
    3,050
    
    
    
    1,603
    
    
    
    28.31
    
    
    
    15.003rd quarter
    
    
    1,730
    
    
    
    702
    
    
    
    15.87
    
    
    
    8.184th quarter
    
    
    1,323
    
    
    
    897
    
    
    
    13.89
    
    
    
    9.60The fiscal year ended March
31, 20101st quarter
    
    
    1,621
    
    
    
    1,090
    
    
    
    16.57
    
    
    
    11.252nd quarter
    
    
    1,808
    
    
    
    1,286
    
    
    
    20.00
    
    
    
    14.013rd quarter
    
    
    1,962
    
    
    
    1,565
    
    
    
    21.45
    
    
    
    17.434th quarter
    
    
    2,099
    
    
    
    1,683
    
    
    
    22.93
    
    
    
    19.13Monthly highs and lowsDecember 2009
    
    
    1,962
    
    
    
    1,691
    
    
    
    21.45
    
    
    
    20.01January 2010
    
    
    2,099
    
    
    
    1,778
    
    
    
    22.93
    
    
    
    19.93February 2010
    
    
    1,862
    
    
    
    1,683
    
    
    
    21.00
    
    
    
    19.13March 2010
    
    
    1,989
    
    
    
    1,765
    
    
    
    21.75
    
    
    
    19.85April 2010
    
    
    2,023
    
    
    
    1,801
    
    
    
    21.53
    
    
    
    19.25May 2010
    
    
    1,851
    
    
    
    1,588
    
    
    
    20.60
    
    
    
    17.50
 Note:
    
    During the fiscal year ended March 31, 2010, the Company changed the ratio of common
stock represented by ADSs. Prior to February 16, 2010, each ADS represented four shares of the
Companys common stock. On and after February 16, 2010, each ADS represents one share of the
Companys common stock. The high and low sales prices set forth in the above table prior to
March 2010 have been revised by dividing the actual sales price that were reported using the
ratio of one ADS to four common stock (the ratio that was in effect prior to March 2010) by
four.  110




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B. Plan of Distribution
  
 C. Markets
  
 D. Selling Shareholders
  
 E. Dilution
  
 F. Expenses of the Issue
  
 Item 10. Additional Information
 
 A. Share Capital
  
 B. Memorandum and Articles of Association
  kabushiki kaisha Shogyo Tokibo
  111




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1.
    
    Manufacture, repair, sale and purchase of construction machinery, agricultural
machinery, industrial machinery, automobiles, internal combustion engines and various
types of other machinery and equipment and parts thereof.2.
    
    Manufacture, sale and purchase of various iron and steel goods.3.
    
    Smelting, processing, sale and purchase of various types of iron and steel, pig-iron,
ferroalloys and other special metals.4.
    
    Manufacture, sale and purchase of various types of electric materials and equipment.5.
    
    Manufacture, sale and purchase of various synthetic resin products.6.
    
    Manufacture, repair, sale and purchase of various armaments and parts thereof.7.
    
    Mining industry, and sale and purchase of minerals.8.
    
    Designing, executing, supervising and contracting various types of civil engineering
and construction work for plants, dwelling house, and other structures.9.
    
    Sale and purchase of lumber, processed lumber products and various types of civil
engineering and construction materials, machinery and equipment.10.
    
    Sale, purchase and lease of real property.11.
    
    Manufacture, sale and repair of industrial waste and general waste treatment devices.12.
    
    Collection, transportation, treatment and recycling of industrial waste and general
waste, sale of such recycled products, and consulting on these matters.13.
    
    Development, creation, sales and consulting on computer software and computer systems.14.
    
    Electronic commerce using networks such as the internet.15.
    
    Information processing and information providing service.16.
    
    Financing services.17.
    
    All business incidental to each and every one of the preceding items.18.
    
    Investing in other companies or promoting the organization of other companies.
   112




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113




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114




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Dividends from Surplus
       (1)
    
    the total amount of other capital surplus and other retained earnings as of the end of the last
business year.
 (2)
    (a)
    the amount of the consideration for treasury stock disposed of after the end of
the last business year less the book value thereof;
  115




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(b)
    
    the amount of reduction of stated capital made after the end of the last business
year less the portion thereof that has been transferred to additional paid-in
capital or legal reserve (if any);(c)
    
    the amount of reduction of additional paid-in capital or legal reserve made after
the end of the last business year less the portion thereof that has been
transferred to stated capital (if any).
 (3)
    (a)
    the book value of treasury stock cancelled after the end of the last business year;
 (b)
    
    the total book value of surplus reduced by the distribution of dividends from
surplus made after the end of the last business year;(c)
    
    other amounts set forth in ordinances of the Ministry of Justice.
   (A)
    
    the amount of surplus
 (B)
    (a)
    the amount of profit in the extraordinary financial statements
 (b)

    the amount of consideration for any of its treasury stock disposed of recorded in the
extraordinary financial statements
 (C)
    (a)
    the book value of its treasury stock
 (b)

    the amount of consideration for any of its treasury stock disposed of after the end
of the last business year
 (c)

    the amount of loss in the extraordinary financial statements
 (d)

    other amounts set forth in ordinances of the Ministry of Justice
   116




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Stock Splits
   Japanese Unit Share System
  Transferability of Shares Representing Less than One Unit.
    117




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##### Table of Contents



Right of a Holder of Shares Representing Less than One Unit to Require the Company to
Purchase Its Shares.
  Right of a Holder of Shares Representing Less than One Unit to Purchase from the Company its
Shares up to a Whole Unit.
  Voting Rights of a Holder of Shares Representing Less than One Unit.
    118




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
    
    to receive annual and interim dividends,
    
    to receive shares and/or cash by way of consolidation, subdivision, gratis issue of
 shares to shareholders, exchange or transfer of shares, corporate split or merger,
    
    to receive shares, cash and/or other assets in which a shareholder of the Company has
the option to acquire or which the Company has the option to acquire,
    
    to participate in any distribution of surplus assets upon liquidation,
    
    to request the Company to purchase shares constituting less than one unit, and
    
    any other rights which are prohibited from being restricted by Art. 189, Paragraph 2
of the Corporation Act of Japan and ordinances of the Ministry of Justice.
 Ordinary and Extraordinary General Meeting of Shareholders
  Voting Rights
 Japanese Unit Share System
  119




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##### Table of Contents




    
    a reduction of stated capital;
    
    amendment of the articles of incorporation (except amendments which the board of
directors are authorized to make under the Corporation Act of Japan as described in
Stock Splits and Japanese Unit Share System above);
    
    establishment of a 100% parent-subsidiary relationship by way of share exchange or share transfer;
    
    a dissolution, merger or consolidation;
    
    a corporate split;
    
    the transfer of the whole or an important part of the Companys business;
    
    taking over of the whole of the business of any other corporation; or,
    
    any issuance of new shares at a specially favorable price, bonds or debentures
with share acquisition rights to subscribe for new shares with specially favorable
conditions or share acquisition rights with specially favorable conditions to persons
other than shareholders, and the like.
   Share Acquisition Rights
    120




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##### Table of Contents



Liquidation Rights
  Liability to Further Calls or Assessments
  Transfer Agent
  Record Date
   121




---



##### Table of Contents



Acquisition of Own Shares
 Dividends from Surplus.
  Japanese Unit Share System
 Holding of Shares by Foreign Investors
 Rights of Shareholders 
Japanese Unit Share System
  122




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##### Table of Contents



C. Material Contracts
  
 D. Exchange Controls
      post facto
  123




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##### Table of Contents



post facto
 post facto
 post facto
   post facto
  124




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##### Table of Contents



post facto
     
 E. Taxation
     125




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##### Table of Contents



126




---



##### Table of Contents



127




---



##### Table of Contents



128




---



##### Table of Contents



129




---



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130




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131




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##### Table of Contents



The preceding summary of certain U.S. federal income tax considerations is for general
information only and is not intended to be construed as tax advice. Accordingly, prospective
investors should consult their own tax advisors as to the particular tax consequences to them
of the acquisition, ownership and disposition of shares of common stock and ADSs, including the
applicability and effect of any U.S. federal, state, local or foreign tax laws, and of any
proposed changes in applicable law.
 
 F. Dividends and Paying Agents
  
 G. Statements by Experts
  
 H. Documents on Display
 http://www.sec.gov
 
 I. Subsidiary Information
  
 Item 11. Quantitative and Qualitative Disclosures About Market Risk
    132




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##### Table of Contents



Forward Exchange Contracts
 Forwards to sell foreign
    
    Millions of yen (except average contractual rates)currencies:
    
    US$/Yen
    
    
    EUR/Yen
    
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    32,530
    
    
    ¥
    3,227
    
    
    ¥
    1,813
    
    
    ¥
    2,639
    
    
    ¥
    40,209Average contractual rates
    
    90.50Yen/US$
    
    
    127.51Yen/EUR
    
    
    0.72EUR/US$
    
    
    
    
    
    
    
    Fair value
    
    
    (851
    )
    
    
    70
    
    
    

    (40
    )
    
    
    19
    
    
    
    (802
    )
 Forwards to buy foreign
    
    Millions of yen (except average contractual rates)currencies:
    
    Yen/Yuan
    
    
    GBP/EUR
    
    
    US$/CLP
    
    
    US$/Yuan
    
    
    US$/ZAR
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    17,668
    
    
    ¥
    6,069
    
    
    ¥
    4,407
    
    
    ¥
    3,019
    
    
    ¥
    2,593
    
    
    ¥
    15,053
    
    
    ¥
    48,809Average contractual rates
    
    13.26Yen/Yuan
    
    
    0.89GBP/EUR
    
    
    0.0019US$/CLP
    
    
    0.14US$/Yuan
    
    
    0.13US$/ZAR
    
    
    
    
    
    
    
    Fair value
    
    
    (478
    )
    
    
    7
    
    
    
    (42
    )
    
    
    4
    
    
    
    (95
    )
    
    
    (509
    )
    
    
    (1,113
    )
   133




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Currency Option
 Millions of yen (except average contractual rates)Purchase to sell foreign currencies:
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    233
    
    
    
    
    
    
    ¥
    233Average contractual rates
    
    1.335US$/EUR

        
    
    
    
    
    
    Fair value
    
    
    5
    
    
    
    
    
    
    
    5
 Millions of yen (except average contractual rates)Purchase to buy foreign currencies:
    
    GBP/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    716
    
    
    
    
    
    
    ¥
    716Average contractual rates
    
    0.897EUR/GBP
    
    
    
    
    
    
    
    Fair value
    
    
    12
    
    
    
    
    
    
    
    12
   Forward Exchange Contracts
 Forwards to sell foreign
    
    Thousands of U.S. dollarscurrencies:
    
    US$/Yen
    
    
    EUR/Yen
    
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    $
    349,785
    
    
    $
    34,699
    
    
    $
    19,495
    
    
    $
    28,376
    
    
    $
    432,355Fair value
    
    
    (9,151
    )
    
    
    753
    
    
    
    (430
    )
    
    
    204
    
    
    
    (8,624
    )
 Forwards to buy foreign
    
    Thousands of U.S. dollarscurrencies:
    
    Yen/Yuan
    
    
    GBP/EUR
    
    
    US$/CLP
    
    
    US$/Yuan
    
    
    US$/ZAR
    
    
    Others
    
    
    TotalContract amounts
    
    $
    189,978
    
    
    $
    65,258
    
    
    $
    47,387
    
    
    $
    32,462
    
    
    $
    27,882
    
    
    $
    161,861
    
    
    $
    524,828Fair value
    
    
    (5,140)
    
    
    
    75
    
    
    
    (452
    )
    
    
    43
    
    
    
    (1,022
    )
    
    

    (5,472)
    
    
    
    (11,968
    )
  134




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Currency Option
 Thousands of U.S. dollarsPurchase to sell foreign currencies:
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    $
    2,505
    
    
    
    
    
    
    $
    2,505Fair value
    
    
    54
    
    
    
    
    
    
    
    54
 Thousands of U.S. dollarsPurchase to buy foreign currencies:
    
    GBP/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    $
    7,699
    
    
    
    
    
    
    $
    7,699Fair value
    
    
    129
    
    
    
    
    
    
    
    129
    Long-term debt excluding capital lease obligations (including due within one year)
 Millions of yenAverage
    
    
    
    
    
    
    
    
    
    
    Expected maturity dateinterest rate
    
    
    Fair value
    
    
    Total
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    ThereafterJapanese yen bonds
    
    
    1.45
    %
    
    ¥
    88,974
    
    
    ¥
    90,000
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    30,000
    
    
    ¥
    30,000
    
    
    ¥
    30,000
    
    
    ¥
    Euro medium-term notes (relating to variable interest rate)
    
    
    0.72
    %
    
    
    68,142
    
    
    
    60,971
    
    
    
    25,073
    
    
    
    23,489
    
    
    
    10,630
    
    
    
    1,779
    
    
    
    
    
    
    
    Loans, principally from banks (relating to variable interest
rate)
    
    
    2.81
    %
    
    
    65,950
    
    
    
    65,950
    
    
    
    15,425
    
    
    
    22,028
    
    
    
    24,513
    
    
    
    3,098
    
    
    
    28
    
    
    
    858Loans, principally from banks (relating to fixed interest rate)
    
    
    2.05
    %
    
    
    164,899
    
    
    
    165,898
    
    
    
    42,023
    
    
    
    48,101
    
    
    
    39,397
    
    
    
    15,362
    
    
    
    20,798
    
    
    
    217Total
    
    
    
    
    
    ¥
    387,965
    
    
    ¥
    382,819
    
    
    ¥
    82,521
    
    
    ¥
    93,618
    
    
    ¥
    104,540
    
    
    ¥
    50,239
    
    
    ¥
    50,826
    
    
    ¥
    1,075
  135




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Interest rate swaps, cross-currency swaps and interest caps
 Average
    
    
    
    
    
    
    
    
    
    
    Millions of yeninterest rate
    
    
    
    
    
    
    
    
    
    Expected maturity dateReceive
    
    
    Pay
    
    

Fair value
    
    
    Total
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    ThereafterU.S. dollar interest rate swap
    
    
    0.30
    %
    
    
    3.01
    %
    
    ¥
    (1,176
    )
    
    ¥
    61,821
    
    
    ¥
    34,050
    
    
    ¥
    18,443
    
    
    ¥
    8,629
    
    
    ¥
    227
    
    
    ¥
    75
    
    
    ¥
    397Yen/US$ cross-currency swap
    
    
    1.00
    %
    
    
    0.58
    %
    
    
    6,926
    
    
    
    49,251
    
    
    
    18,500
    
    
    
    22,686
    
    
    
    8,065
    
    
    
    
    
    
    
    
    
    
    
    EUR interest rate swap
    
    
    0.98
    %
    
    
    3.93
    %
    
    
    (774
    )
    
    
    22,772
    
    
    
    10,006
    
    
    
    7,078
    
    
    
    4,144
    
    
    
    1,223
    
    
    
    321
    
    
    
    Yen/EUR cross-currency swap
    
    
    0.84
    %
    
    
    1.04
    %
    
    
    2,050
    
    
    
    12,922
    
    
    
    
    
    
    
    10,922
    
    
    
    
    
    
    
    2,000
    
    
    
    
    
    
    
    EUR interest cap
    
    
    
    
    
    
    5.00
    %
    
    
    0
    
    
    
    6,246
    
    
    
    6,246
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AUD interest rate swap
    
    
    4.13
    %
    
    
    6.08
    %
    
    
    (358
    )
    
    
    30,471
    
    
    
    7,366
    
    
    
    7,436
    
    
    
    7,221
    
    
    
    4,714
    
    
    
    1,904
    
    
    
    1,830Others
    
    
    
    
    
    
    
    
    
    
    (46
    )
    
    
    1,004
    
    
    
    664
    
    
    
    137
    
    
    
    66
    
    
    
    18
    
    
    
    119
    
    
    
    Total
    
    
    
    
    
    
    
    
    
    ¥
    6,622
    
    
    ¥
    184,487
    
    
    ¥
    76,832
    
    
    ¥
    66,702
    
    
    ¥
    28,125
    
    
    ¥
    8,182
    
    
    ¥
    2,419
    
    
    ¥
    2,227
  Long-term debt excluding capital lease obligations (including due within one year)
 Thousands of U.S. dollarsAverage
    
    
    
    
    
    
    
    
    
    
    Expected maturity dateinterest rate
    
    
    Fair value
    
    
    Total
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    ThereafterJapanese yen bonds
    
    
    1.45
    %
    
    $
    956,710
    
    
    $
    967,743
    
    
    $
    
    
    
    $
    
    
    
    $
    322,581
    
    
    $
    322,581
    
    
    $
    322,581
    
    
    $
    Euro medium-term notes (relating to variable interest rate)
    
    
    0.72
    %
    
    
    732,710
    
    
    
    655,602
    
    
    
    269,602
    
    
    
    252,570
    
    
    
    114,301
    
    
    
    19,129
    
    
    
    
    
    
    
    Loans, principally from banks (relating to variable interest
rate)
    
    
    2.81
    %
    
    
    709,140
    
    
    
    709,140
    
    
    
    165,860
    
    
    
    236,860
    
    
    
    263,581
    
    
    
    33,312
    
    
    
    301
    
    
    
    9,226Loans, principally from banks (relating to fixed interest rate)
    
    
    2.05
    %
    
    
    1,773,108
    
    
    
    1,783,849
    
    
    
    451,860
    
    
    
    517,215
    
    
    
    423,624
    
    
    
    165,183
    
    
    
    223,634
    
    
    
    2,333Total
    
    
    
    
    
    $
    4,171,668
    
    
    $
    4,116,334
    
    
    $
    887,322
    
    
    $
    1,006,645
    
    
    $
    1,124,087
    
    
    $
    540,205
    
    
    $
    546,516
    
    
    $
    11,559
  136




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Interest rate swaps, cross-currency swaps and interest caps
 Average
    
    
    
    
    
    
    
    
    
    
    Thousands of U.S. dollarsinterest rate
    
    
    
    
    
    
    
    
    
    
    Expected maturity dateReceive
    
    
    Pay
    
    
    Fair value
    
    
    Total
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    ThereafterU.S. dollar interest rate swap
    
    
    0.30
    %
    
    
    3.01
    %
    
    $
    (12,645
    )
    
    $
    664,742
    
    
    $
    366,129
    
    
    $
    198,312
    
    
    $
    92,785
    
    
    $
    2,441
    
    
    $
    806
    
    
    $
    4,269Yen/US$
cross-currency swap
    
    
    1.00
    %
    
    
    0.58
    %
    
    
    74,473
    
    
    
    529,581
    
    
    
    198,926
    
    
    
    243,935
    
    
    
    86,720
    
    
    
    
    
    
    
    
    
    
    
    EUR interest rate swap
    
    
    0.98
    %
    
    
    3.93
    %
    
    
    (8,323
    )
    
    
    244,860
    
    
    
    107,590
    
    
    
    76,108
    
    
    
    44,559
    
    
    
    13,151
    
    
    
    3,452
    
    
    
    Yen/EUR cross-currency swap
    
    
    0.84
    %
    
    
    1.04
    %
    
    
    22,043
    
    
    
    138,946
    
    
    
    
    
    
    
    117,441
    
    
    
    
    
    
    
    21,505
    
    
    
    
    
    
    
    EUR interest cap
    
    
    
    
    
    
    5.00
    %
    
    
    0
    
    
    
    67,161
    
    
    
    67,161
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AUD interest rate swap
    
    
    4.13
    %
    
    
    6.08
    %
    
    
    (3,849
    )
    
    
    327,645
    
    
    
    79,205
    
    
    
    79,957
    
    
    
    77,645
    
    
    
    50,688
    
    
    
    20,473
    
    
    
    19,677Others
    
    
    
    
    
    
    
    
    
    
    (495
    )
    
    
    10,796
    
    
    
    7,139
    
    
    
    1,473
    
    
    
    710
    
    
    
    194
    
    
    
    1,280
    
    
    
    Total
    
    
    
    
    
    
    
    
    
    $
    71,204
    
    
    $
    1,983,731
    
    
    $
    826,150
    
    
    $
    717,226
    
    
    $
    302,419
    
    
    $
    87,979
    
    
    $
    26,011
    
    
    $
    23,946
  
 Item 12. Description of Securities Other than Equity Securities
 
 A. Debt Securities
  
 B. Warrants and Rights
  
 C. Other Securities
  
 D. American Depositary Shares
 Fees and Charges for Holders of American Depositary Receipts
  137




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##### Table of Contents



Investor depositing or withdrawing shares must pay:
    
    For:$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)
    
    Issuance of ADSs, including issuances resulting from a distribution, sale or exercise of shares or rights or other property 

Cancellation of ADSs for the purpose of withdrawal including if the depositary agreement is terminated$0.02 (or less) per ADS
    
    Any cash distribution to ADS registered holdersA fee equivalent to the fee that would be payable if securities distributed had been shares and the shares had been deposited for issuance of ADSs
    
    Distribution of securities distributed to holders of deposited securities which are distributed by the Depositary to ADS registered holdersRegistration fees
    
    Registration of transfer of shares on Komatsus share register to the name of the depositary or its nominee or the custodian or its nominee when shares are deposited or withdrawnExpenses of the Depositary
    
    Cable, telex, and facsimile transmissions (when expressly provided in the depositary agreement) 

Converting foreign currency to US dollarsTaxes and other governmental charges the Depositary or custodian must pay on any ADSs or shares underlying ADSs
    
    As necessary
  Fees to be Paid in the Future
   138




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##### Table of Contents



PART II
 
 Item 13. Defaults, Dividend Arrearages and Delinquencies
  
 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
  
 Item 15. Controls and Procedures
 Evaluation of disclosure controls and procedures
  Managements report on internal control over financial reporting
   139




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##### Table of Contents



Changes in internal control over financial reporting
   140




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##### Table of Contents



Item 16. [ Reserved]
 
 Item 16A. Audit Committee Financial Expert
   
 Item 16B. Code of Ethics
  http://www.komatsu.com/CompanyInfo/profile/conduct/
  
 Item 16C. Principal Accountant Fees and Services
    141




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##### Table of Contents



(Millions of Yen)Fiscal Year ended March 31,2010
    
    
    2009Audit fees
    
    ¥
    1,687
    
    
    ¥
    1,812Audit-related fees
    
    
    23
    
    
    
    27Tax fees
    
    
    32
    
    
    
    48All other fees
    
    
    3
    
    
    
    4Total
    
    ¥
    1,745
    
    
    ¥
    1,891
          142




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##### Table of Contents



Item 16D. Exemptions from the Listing Standards for Audit Committees
  
 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
  
 Item 16F. Change in Registrants Certifying Accountant
  
 Item 16G. Corporate Governance
   143




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##### Table of Contents



PART III
 
 Item 17. Financial Statements
  
 Item 18. Financial Statements
  
 Item 19. Exhibits
 1.1
    
    
    Articles of Incorporation of Komatsu Ltd., as amended (Translation)1.2
    
    
    Regulations of The Board of Directors (Translation)2
    
    
    Share Handling Regulations, as amended (Translation)8
    
    
    Significant subsidiaries of Komatsu Ltd., including additional subsidiaries
that management has deemed to be significant, as of March 31, 2010 (See
Item 4. Information on the Company  Organizational Structure)11
    
    
    Code of Ethics for Senior Officers (Translation)12 a.
    
    
    Certification of the CEO of the Company required pursuant to Rule 15d-14(a).12 b.
    
    
    Certification of the CFO of the Company required pursuant to Rule 15d-14(a).13 a.
    
    
    Certification of the CEO of the Company required pursuant to Rule 15d-14(b)
and Section 1350 of Chapter 63 of Title 18 of the United States Code.13 b.
    
    
    Certification of the CFO of the Company required pursuant to Rule 15d-14(b)
and Section 1350 of Chapter 63 of Title 18 of the United States Code.
  144




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##### Table of Contents



SIGNATURES
  KOMATSU LTD.Date: June 29, 2010
    By:
    /s/ Kenji KinoshitaName:
    KENJI KINOSHITAPosition:
    Director and Senior Executive Officer,
Chief Financial Officer  145




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##### Table of Contents



KOMATSU LTD. AND CONSOLIDATED SUBSIDIARIES
 CONSOLIDATED FINANCIAL STATEMENTS
 Reports of Independent Registered Public Accounting Firm
    
    F-2 and F-3Consolidated Balance Sheets as of March 31, 2010 and 2009
    
    F-4 and F-5Consolidated
Statements of Income for the Years Ended March 31, 2010, 2009 and 2008
    
    
    F-6Consolidated
Statements of Equity for the Years Ended March 31, 2010, 2009 and 2008
    
    
    F-7 and F-8Consolidated
Statements of Cash Flows for the Years Ended March 31, 2010, 2009 and 2008
    
    
    F-9Notes to Consolidated Financial Statements
    
    F-10 to F-53
  F-1




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
        
  F-2




---



##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
        
  F-3




---



##### Table of Contents



Consolidated Balance Sheets
 
 Thousands ofU.S. dollarsMillions of yen
    
    
    (Note 1)Assets
    
    2010
    
    
    2009
    
    
    2010Current assetsCash and cash equivalents (Note 10)
    
    ¥
    82,429
    
    
    ¥
    90,563
    
    
    $
    886,333Time deposits
    
    
    1,132
    
    
    
    44
    
    
    
    12,172Trade notes and accounts receivable, less allowance
for doubtful receivables of ¥14,941 million ($160,656 thousand)
in 2010 and ¥15,330 million in 2009 (Notes 1, 5 and 26)
    
    
    447,693
    
    
    
    373,901
    
    
    
    4,813,903Inventories (Notes 1 and 6)
    
    
    396,416
    
    
    
    507,357
    
    
    
    4,262,538Deferred income taxes and other current assets (Notes 1, 7, 10, 16, 20, 21, 22, 24 and 26)
    
    
    112,451
    
    
    
    131,374
    
    
    
    1,209,151Total current assets
    
    
    1,040,121
    
    
    
    1,103,239
    
    
    
    11,184,097Long-term trade receivables (Note 5)
    
    
    150,972
    
    
    
    102,969
    
    
    
    1,623,355InvestmentsInvestments in and advances to affiliated companies (Notes 1 and 8)
    
    
    24,002
    
    
    
    19,249
    
    
    
    258,086Investment securities (Notes 1, 7, 21 and 22)
    
    
    60,467
    
    
    
    53,854
    
    
    
    650,183Other
    
    
    2,399
    
    
    
    12,017
    
    
    
    25,795Total investments
    
    
    86,868
    
    
    
    85,120
    
    
    
    934,064Property, plant and equipmentless accumulated depreciation
(Notes 1, 9, 10 and 17)
    
    
    525,100
    
    
    
    525,462
    
    
    
    5,646,237Goodwill (Notes 1 and 11)
    
    
    29,570
    
    
    
    28,661
    
    
    
    317,957Other intangible assets (Notes 1 and 11)
    
    
    61,729
    
    
    
    60,346
    
    
    
    663,753Deferred income taxes and other assets (Notes 1, 16, 20, 21, 22 and 26)
    
    
    64,695
    
    
    
    63,262
    
    
    
    695,645¥
    1,959,055
    
    
    ¥
    1,969,059
    
    
    $
    21,065,108
   F-4




---



##### Table of Contents



Thousands ofU.S. dollarsMillions of yen
    
    
    (Note 1)Liabilities and Equity
    
    2010
    
    
    2009
    
    
    2010Current liabilitiesShort-term debt (Note 12)
    
    ¥
    123,438
    
    
    ¥
    220,087
    
    
    $
    1,327,290Current maturities of long-term debt (Notes 10, 12, 17 and 21)
    
    
    105,956
    
    
    
    87,662
    
    
    
    1,139,312Trade notes, bills and accounts payable
    
    
    207,024
    
    
    
    214,375
    
    
    
    2,226,065Income taxes payable (Note 16)
    
    
    22,004
    
    
    
    10,818
    
    
    
    236,602Deferred income taxes and other current liabilities (Notes 1, 16, 20, 21, 22 and 24)
    
    
    183,324
    
    
    
    199,345
    
    
    
    1,971,226Total current liabilities
    
    
    641,746
    
    
    
    732,287
    
    
    
    6,900,495Long-term liabilitiesLong-term debt (Notes 10, 12, 17 and 21)
    
    
    356,985
    
    
    
    292,106
    
    
    
    3,838,548Liability for pension and retirement benefits (Notes 1 and 13)
    
    
    46,354
    
    
    
    53,822
    
    
    
    498,430Deferred income taxes and other liabilities (Notes 1, 16, 20, 21 and 22)
    
    
    37,171
    
    
    
    42,510
    
    
    
    399,689Total long-term liabilities
    
    
    440,510
    
    
    
    388,438
    
    
    
    4,736,667Total liabilities
    
    
    1,082,256
    
    
    
    1,120,725
    
    
    
    11,637,162Commitments and contingent liabilities (Note 19)
    
    
    
    
    
    
    
    
    
    
    EquityKomatsu Ltd. shareholders equity (Notes 1 and 14)Common stock:Authorized 3,955,000,000 shares in 2010 and 2009
Issued 998,744,060 shares in 2010 and 2009
Outstanding 968,039,976 shares in 2010 and
967,822,292 shares in 2009
    
    
    67,870
    
    
    
    67,870
    
    
    
    729,785Capital surplus
    
    
    140,421
    
    
    
    140,092
    
    
    
    1,509,903Retained earnings:Appropriated for legal reserve
    
    
    31,983
    
    
    
    28,472
    
    
    
    343,903Unappropriated
    
    
    724,090
    
    
    
    719,222
    
    
    
    7,785,914Accumulated other comprehensive income (loss) (Notes 1, 7, 13 and 15)
    
    
    (95,634
    )
    
    
    (105,744
    )
    
    
    (1,028,323
    )Treasury stock at cost, 30,704,084 shares in 2010
and 30,921,768 shares in 2009 (Notes 14)
    
    
    (34,755
    )
    
    
    (34,971
    )
    
    
    (373,709
    )Total Komatsu Ltd. shareholders equity
    
    
    833,975
    
    
    
    814,941
    
    
    
    8,967,473Noncontrolling interests
    
    
    42,824
    
    
    
    33,393
    
    
    
    460,473Total equity
    
    
    876,799
    
    
    
    848,334
    
    
    
    9,427,946¥
    1,959,055
    
    
    ¥
    1,969,059
    
    
    $
    21,065,108
  F-5




---



##### Table of Contents



Consolidated Statements of Income
 
 Thousands ofU.S. dollarsMillions of yen
    
    
    (Note 1)2010
    
    
    2009
    
    
    2008
    
    
    2010Net sales (Notes 1 and 8)
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    ¥
    2,243,023
    
    
    $
    15,393,161Cost of sales (Notes 17 and 25)
    
    
    1,101,559
    
    
    
    1,510,408
    
    
    
    1,590,963
    
    
    
    11,844,720Selling, general and administrative expenses (Notes 17 and 25)
    
    
    249,286
    
    
    
    322,677
    
    
    
    317,474
    
    
    
    2,680,495Impairment loss on long-lived assets (Note 1, 9 and 25)
    
    
    3,332
    
    
    
    16,414
    
    
    
    2,447
    
    
    
    35,828Impairment loss on goodwill (Note 1 and 11)
    
    
    
    
    
    
    2,003
    
    
    
    2,870
    
    
    
    Other operating income (expenses), net (Note 25)
    
    
    (10,352
    )
    
    
    (18,293
    )
    
    
    3,581
    
    
    
    (111,312
    )Operating income
    
    
    67,035
    
    
    
    151,948
    
    
    
    332,850
    
    
    
    720,806Other income (expenses), net(Note 25)
    
    
    (2,056
    )
    
    
    (23,166
    )
    
    
    (10,640
    )
    
    
    (22,107
    )Interest and dividend income
    
    
    6,158
    
    
    
    8,621
    
    
    
    10,265
    
    
    
    66,215Interest expense
    
    
    (8,502
    )
    
    
    (14,576
    )
    
    
    (16,699
    )
    
    
    (91,419
    )Other, net
    
    
    288
    
    
    
    (17,211
    )
    
    
    (4,206
    )
    
    
    3,097Income from continuing operations before income taxes
and equity in earnings of affiliated companies
    
    
    64,979
    
    
    
    128,782
    
    
    
    322,210
    
    
    
    698,699Income taxes(Notes 1 and 16)Current
    
    
    32,722
    
    
    
    60,511
    
    
    
    104,142
    
    
    
    351,849Deferred
    
    
    (7,358
    )
    
    
    (18,218
    )
    
    
    11,652
    
    
    
    (79,118
    )Total
    
    
    25,364
    
    
    
    42,293
    
    
    
    115,794
    
    
    
    272,731Income from continuing operations before equity in earnings
of affiliated companies
    
    
    39,615
    
    
    
    86,489
    
    
    
    206,416
    
    
    
    425,968Equity in earnings of affiliated companies
    
    
    1,588
    
    
    
    396
    
    
    
    6,845
    
    
    
    17,075Income from continuing operations
    
    
    41,203
    
    
    
    86,885
    
    
    
    213,261
    
    
    
    443,043Income from discontinued operations less applicable income
taxes(Note 4)
    
    
    
    
    
    
    
    
    
    
    4,967
    
    
    
    Net income
    
    
    41,203
    
    
    
    86,885
    
    
    
    218,228
    
    
    
    443,043Less net income attributable to noncontrolling interests
    
    
    (7,644
    )
    
    
    (8,088
    )
    
    
    (9,435
    )
    
    
    (82,194
    )Net income attributable to Komatsu Ltd.
    
    ¥
    33,559
    
    
    ¥
    78,797
    
    
    ¥
    208,793
    
    
    $
    360,849Yen
    
    
    U.S. centsPer share data(Notes 1 and 18):Income from continuing operations attributable to Komatsu Ltd.:Basic
    
    ¥
    34.67
    
    
    ¥
    79.95
    
    
    ¥
    204.88
    
    
    ¢
    37.28Diluted
    
    
    34.65
    
    
    
    79.89
    
    
    
    204.61
    
    
    
    37.26Income from discontinued operations attributable to Komatsu Ltd.:Basic
    
    
    
    
    
    
    
    
    
    
    4.99
    
    
    
    Diluted
    
    
    
    
    
    
    
    
    
    
    4.98
    
    
    
    Net income attributable to Komatsu Ltd.:Basic
    
    
    34.67
    
    
    
    79.95
    
    
    
    209.87
    
    
    
    37.28Diluted
    
    
    34.65
    
    
    
    79.89
    
    
    
    209.59
    
    
    
    37.26Cash dividends per share (Note 1)
    
    
    26.00
    
    
    
    44.00
    
    
    
    38.00
    
    
    
    27.96
   F-6




---



##### Table of Contents



Consolidated Statements of Equity
 
 Millions of yenRetained earnings
    
    
    Accumulated
    
    
    
    
    
    
    TotalAppropriated
    
    
    
    
    
    
    other
    
    
    
    
    
    
    Komatsu Ltd.
    
    
    Non-Common
    
    
    Capital
    
    
    for legal
    
    
    Unappro-
    
    
    comprehensive
    
    
    Treasury
    
    
    shareholders
    
    
    controllingstock
    
    
    surplus
    
    
    reserve
    
    
    priated
    
    
    income (loss)
    
    
    stock
    
    
    equity
    
    
    interests
    
    
    Total equityBalance at March 31, 2007
    
    ¥
    67,870
    
    
    ¥
    137,155
    
    
    ¥
    24,267
    
    
    ¥
    517,450
    
    
    ¥
    33,501
    
    
    ¥
    (3,526
    )
    
    ¥
    776,717
    
    
    ¥
    19,774
    
    
    ¥
    796,491Cash dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (37,810
    )
    
    
    
    
    
    
    
    
    
    
    (37,810
    )
    
    
    (4,156
    )
    
    
    (41,966
    )Transfer to retained earnings appropriated for legal reserve
    
    
    
    
    
    
    
    
    
    
    2,447
    
    
    
    (2,447
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,416
    
    
    
    7,416Comprehensive income (loss)Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    208,793
    
    
    
    
    
    
    
    
    
    
    
    208,793
    
    
    
    9,435
    
    
    
    218,228Other comprehensive income (loss), for the period, net of tax
(Note 15)Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (43,661
    )
    
    
    
    
    
    
    (43,661
    )
    
    
    (2,225
    )
    
    
    (45,886
    )Net unrealized holding gains (losses) on securities available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,071
    )
    
    
    
    
    
    
    (15,071
    )
    
    
    (7
    )
    
    
    (15,078
    )Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,908
    )
    
    
    
    
    
    
    (3,908
    )
    
    
    2
    
    
    
    (3,906
    )Net unrealized holding gains on derivative instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    360
    
    
    
    
    
    
    
    360
    
    
    
    
    
    
    
    360Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    146,513
    
    
    
    7,205
    
    
    
    153,718Issuance and exercise of stock acquisition rights (Notes 1 and 14)
    
    
    
    
    
    
    598
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    598
    
    
    
    
    
    
    
    598Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (340
    )
    
    
    (340
    )
    
    
    
    
    
    
    (340
    )Sales of treasury stock
    
    
    
    
    
    
    417
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,031
    
    
    
    1,448
    
    
    
    
    
    
    
    1,448Balance at March 31, 2008
    
    ¥
    67,870
    
    
    ¥
    138,170
    
    
    ¥
    26,714
    
    
    ¥
    685,986
    
    
    ¥
    (28,779
    )
    
    ¥
    (2,835
    )
    
    ¥
    887,126
    
    
    ¥
    30,239
    
    
    ¥
    917,365Cash dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (43,803
    )
    
    
    
    
    
    
    
    
    
    
    (43,803
    )
    
    
    (3,939
    )
    
    
    (47,742
    )Transfer to retained earnings appropriated for legal reserve
    
    
    
    
    
    
    
    
    
    
    1,758
    
    
    
    (1,758
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,335
    
    
    
    3,335Comprehensive income (loss)Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    78,797
    
    
    
    
    
    
    
    
    
    
    
    78,797
    
    
    
    8,088
    
    
    
    86,885Other comprehensive income (loss), for the period, net of tax
(Note15)Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (49,695
    )
    
    
    
    
    
    
    (49,695
    )
    
    
    (4,333
    )
    
    
    (54,028
    )Net unrealized holding gains (losses) on securities available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16,090
    )
    
    
    
    
    
    
    (16,090
    )
    
    
    4
    
    
    
    (16,086
    )Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10,027
    )
    
    
    
    
    
    
    (10,027
    )
    
    
    (1
    )
    
    
    (10,028
    )Net unrealized holding gains (losses) on derivative instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,153
    )
    
    
    
    
    
    
    (1,153
    )
    
    
    
    
    
    
    (1,153
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,832
    
    
    
    3,758
    
    
    
    5,590Issuance and exercise of stock acquisition rights (Notes 1 and 14)
    
    
    
    
    
    
    352
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    352
    
    
    
    
    
    
    
    352Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (33,090
    )
    
    
    (33,090
    )
    
    
    
    
    
    
    (33,090
    )Sales of treasury stock
    
    
    
    
    
    
    1,570
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    954
    
    
    
    2,524
    
    
    
    
    
    
    
    2,524Balance at March 31, 2009
    
    ¥
    67,870
    
    
    ¥
    140,092
    
    
    ¥
    28,472
    
    
    ¥
    719,222
    
    
    ¥
    (105,744
    )
    
    ¥
    (34,971
    )
    
    ¥
    814,941
    
    
    ¥
    33,393
    
    
    ¥
    848,334Cash dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25,180
    )
    
    
    
    
    
    
    
    
    
    
    (25,180
    )
    
    
    (3,368
    )
    
    
    (28,548
    )Transfer to retained earnings appropriated for legal reserve
    
    
    
    
    
    
    
    
    
    
    3,511
    
    
    
    (3,511
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,531
    
    
    
    2,531Comprehensive income (loss)Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33,559
    
    
    
    
    
    
    
    
    
    
    
    33,559
    
    
    
    7,644
    
    
    
    41,203Other comprehensive income (loss), for the period, net of tax
(Note15)Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (904
    )
    
    
    
    
    
    
    (904
    )
    
    
    1,897
    
    
    
    993Net unrealized holding gains on securities available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,480
    
    
    
    
    
    
    
    5,480
    
    
    
    
    
    
    
    5,480Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,920
    
    
    
    
    
    
    
    4,920
    
    
    
    2
    
    
    
    4,922Net unrealized holding gains on derivative instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    614
    
    
    
    
    
    
    
    614
    
    
    
    725
    
    
    
    1,339Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,669
    
    
    
    10,268
    
    
    
    53,937Issuance and exercise of stock acquisition rights (Notes 1 and 14)
    
    
    
    
    
    
    413
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    413
    
    
    
    
    
    
    
    413Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (40
    )
    
    
    (40
    )
    
    
    
    
    
    
    (40
    )Sales of treasury stock
    
    
    
    
    
    
    (84
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    256
    
    
    
    172
    
    
    
    
    
    
    
    172Balance at March 31, 2010
    
    ¥
    67,870
    
    
    ¥
    140,421
    
    
    ¥
    31,983
    
    
    ¥
    724,090
    
    
    ¥
    (95,634
    )
    
    ¥
    (34,755
    )
    
    ¥
    833,975
    
    
    ¥
    42,824
    
    
    ¥
    876,799
  F-7




---



##### Table of Contents



Thousands of U.S. dollars (Note 1)Retained earnings
    
    
    Accumulated
    
    
    
    
    
    
    TotalAppropriated
    
    
    
    
    
    
    other
    
    
    
    
    
    
    Komatsu Ltd.
    
    
    Non-Common
    
    
    Capital
    
    
    for legal
    
    
    Unappro-
    
    
    comprehensive
    
    
    Treasury
    
    
    shareholders
    
    
    controllingstock
    
    
    surplus
    
    
    reserve
    
    
    priated
    
    
    income (loss)
    
    
    stock
    
    
    equity
    
    
    interests
    
    
    Total equityBalance at March 31, 2009
    
    $
    729,785
    
    
    $
    1,506,366
    
    
    $
    306,151
    
    
    $
    7,733,570
    
    
    $
    (1,137,033
    )
    
    $
    (376,032
    )
    
    $
    8,762,807
    
    
    $
    359,065
    
    
    $
    9,121,872Cash dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (270,753
    )
    
    
    
    
    
    
    
    
    
    
    (270,753
    )
    
    
    (36,216
    )
    
    
    (306,969
    )Transfer to retained earnings appropriated for legal reserve
    
    
    
    
    
    
    
    
    
    
    37,752
    
    
    
    (37,752
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,214
    
    
    
    27,214Comprehensive income (loss)Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    360,849
    
    
    
    
    
    
    
    
    
    
    
    360,849
    
    
    
    82,194
    
    
    
    443,043Other comprehensive income (loss), for the period, net of tax
(Note15)Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,720
    )
    
    
    
    
    
    
    (9,720
    )
    
    
    20,398
    
    
    
    10,678Net unrealized holding gains on securities available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    58,925
    
    
    
    
    
    
    
    58,925
    
    
    
    
    
    
    
    58,925Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,903
    
    
    
    
    
    
    
    52,903
    
    
    
    22
    
    
    
    52,925Net unrealized holding gains on derivative instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,602
    
    
    
    
    
    
    
    6,602
    
    
    
    7,796
    
    
    
    14,398Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    469,559
    
    
    
    110,410
    
    
    
    579,969Issuance and exercise of stock acquisition rights (Notes 1 and 14)
    
    
    
    
    
    
    4,441
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,441
    
    
    
    
    
    
    
    4,441Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (430
    )
    
    
    (430
    )
    
    
    
    
    
    
    (430
    )Sales of treasury stock
    
    
    
    
    
    
    (904
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,753
    
    
    
    1,849
    
    
    
    
    
    
    
    1,849Balance at March 31, 2010
    
    $
    729,785
    
    
    $
    1,509,903
    
    
    $
    343,903
    
    
    $
    7,785,914
    
    
    $
    (1,028,323
    )
    
    $
    (373,709
    )
    
    $
    8,967,473
    
    
    $
    460,473
    
    
    $
    9,427,946
  F-8




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##### Table of Contents



Consolidated Statements of Cash Flows
 
 Thousands ofU.S. dollarsMillions of yen
    
    
    (Note 1)2010
    
    
    2009
    
    
    2008
    
    
    2010Operating activitiesNet income
    
    ¥
    41,203
    
    
    ¥
    86,885
    
    
    ¥
    218,228
    
    
    $
    443,043Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization
    
    
    91,319
    
    
    
    98,354
    
    
    
    75,664
    
    
    
    981,925Deferred income taxes
    
    
    (7,358
    )
    
    
    (18,218
    )
    
    
    15,016
    
    
    
    (79,118
    )Net loss (gain) from sale of investment securities and subsidiaries
    
    
    (679
    )
    
    
    3,543
    
    
    
    (8,045
    )
    
    
    (7,301
    )Net gain on sale of property
    
    
    (373
    )
    
    
    (269
    )
    
    
    (3,169
    )
    
    
    (4,011
    )Loss on disposal of fixed assets
    
    
    2,244
    
    
    
    5,561
    
    
    
    3,313
    
    
    
    24,129Impairment loss on long-lived assets
    
    
    3,332
    
    
    
    16,414
    
    
    
    2,447
    
    
    
    35,828Impairment loss on goodwill
    
    
    
    
    
    
    2,003
    
    
    
    2,870
    
    
    
    Pension and retirement benefits, net
    
    
    (55
    )
    
    
    3,378
    
    
    
    (10,782
    )
    
    
    (592
    )Changes in assets and liabilities:Decrease (increase) in trade receivables
    
    
    (71,459
    )
    
    
    103,355
    
    
    
    (83,855
    )
    
    
    (768,376
    )Decrease (increase) in inventories
    
    
    117,707
    
    
    
    (22,307
    )
    
    
    (65,884
    )
    
    
    1,265,666Increase (decrease) in trade payables
    
    
    (8,354
    )
    
    
    (148,655
    )
    
    
    12,586
    
    
    
    (89,828
    )Increase (decrease) in income taxes payable
    
    
    11,311
    
    
    
    (40,507
    )
    
    
    (2,913
    )
    
    
    121,624Other, net
    
    
    3,323
    
    
    
    (10,762
    )
    
    
    5,509
    
    
    
    35,731Net cash provided by operating activities
    
    
    182,161
    
    
    
    78,775
    
    
    
    160,985
    
    
    
    1,958,720Investing activitiesCapital expenditures
    
    
    (92,401
    )
    
    
    (145,670
    )
    
    
    (117,571
    )
    
    
    (993,559
    )Proceeds from sale of property
    
    
    11,212
    
    
    
    6,414
    
    
    
    19,425
    
    
    
    120,559Proceeds from sale of available for sale investment securities
    
    
    1,005
    
    
    
    703
    
    
    
    601
    
    
    
    10,806Purchases of available for sale investment securities
    
    
    (4,826
    )
    
    
    (6,785
    )
    
    
    (4,663
    )
    
    
    (51,892
    )Proceeds from sale of subsidiaries, net of cash disposed
    
    
    661
    
    
    
    
    
    
    
    16,372
    
    
    
    7,108Acquisition of subsidiaries and equity investees, net of cash acquired
    
    
    1,107
    
    
    
    (223
    )
    
    
    (42,717
    )
    
    
    11,903Collection of loan receivables
    
    
    11,559
    
    
    
    7,736
    
    
    
    7,778
    
    
    
    124,290Disbursement of loan receivables
    
    
    (667
    )
    
    
    (6,381
    )
    
    
    (6,315
    )
    
    
    (7,172
    )Decrease in time deposits, net
    
    
    (617
    )
    
    
    (1,162
    )
    
    
    (1,092
    )
    
    
    (6,634
    )Net cash used in investing activities
    
    
    (72,967
    )
    
    
    (145,368
    )
    
    
    (128,182
    )
    
    
    (784,591
    )Financing activitiesProceeds from long-term debt
    
    
    155,641
    
    
    
    129,327
    
    
    
    82,791
    
    
    
    1,673,559Repayments on long-term debt
    
    
    (73,052
    )
    
    
    (88,058
    )
    
    
    (48,868
    )
    
    
    (785,505
    )Increase (decrease) in short-term debt, net
    
    
    (139,067
    )
    
    
    127,589
    
    
    
    634
    
    
    
    (1,495,344
    )Repayments of capital lease obligations
    
    
    (31,240
    )
    
    
    (30,770
    )
    
    
    (15,168
    )
    
    
    (335,914
    )Sale (purchase) of treasury stock, net
    
    
    132
    
    
    
    (32,685
    )
    
    
    691
    
    
    
    1,419Dividends paid
    
    
    (25,180
    )
    
    
    (43,803
    )
    
    
    (37,810
    )
    
    
    (270,753
    )Other, net
    
    
    (3,597
    )
    
    
    (4,381
    )
    
    
    308
    
    
    
    (38,677
    )Net cash provided by (used in) financing activities
    
    
    (116,363
    )
    
    
    57,219
    
    
    
    (17,422
    )
    
    
    (1,251,215
    )Effect of exchange rate change on cash and cash equivalents
    
    
    (965
    )
    
    
    (2,073
    )
    
    
    (5,570
    )
    
    
    (10,376
    )Net increase (decrease) in cash and cash equivalents
    
    
    (8,134
    )
    
    
    (11,447
    )
    
    
    9,811
    
    
    
    (87,462
    )Cash and cash equivalents, beginning of year
    
    
    90,563
    
    
    
    102,010
    
    
    
    92,199
    
    
    
    973,795Cash and cash equivalents, end of year
    
    ¥
    82,429
    
    
    ¥
    90,563
    
    
    ¥
    102,010
    
    
    $
    886,333
   F-9




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##### Table of Contents



Notes to Consolidated Financial Statements
  1. Description of Business, Basis of Financial Statement Presentation and Summary of Significant
Accounting Policies
 Description of Business
     Basis of Financial Statement Presentation
    F-10




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##### Table of Contents



Summary of Significant Accounting Policies
 (1) Consolidation and Investments in Affiliated Companies
  TM
  (2) Foreign Currency Translation and Transactions
  (3) Allowance for Doubtful Trade Receivables
  (4) Inventories
  (5) Investment Securities
   F-11




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##### Table of Contents



(6) Property, Plant and Equipment, and Related Depreciation
  2010
    
    
    2009
    
    
    2008Buildings
    
    
    9
    %
    
    
    9
    %
    
    
    9
    %Machinery and equipment
    
    
    23
    %
    
    
    25
    %
    
    
    26
    %
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Aggregate cost
    
    ¥
    136,171
    
    
    ¥
    124,198
    
    
    $
    1,464,204Accumulated amortization
    
    
    49,512
    
    
    
    37,417
    
    
    
    532,387
   (7) Goodwill and Other Intangible Assets
  (8) Revenue Recognition
       F-12




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##### Table of Contents



(9) Income Taxes
    (10) Product Warranties
  (11) Pension and Retirement Benefits
    (12) Share-Based Compensation
  (13) Per Share Data
   (14) Cash and Cash Equivalents
  (15) Derivative Financial Instruments
   (16) Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of
   F-13




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##### Table of Contents



(17) Use of Estimates
   (18) Recently Adopted Accounting Standards
   2. Supplemental Cash Flow Information
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Additional cash flow information:Interest paid
    
    ¥
    8,533
    
    
    ¥
    14,403
    
    
    ¥
    16,639
    
    
    $
    91,753Income taxes paid
    
    
    9,797
    
    
    
    111,508
    
    
    
    110,674
    
    
    
    105,344Noncash investing and financing activities:Capital lease obligations incurred
    
    ¥
    14,285
    
    
    ¥
    29,762
    
    
    ¥
    28,159
    
    
    $
    153,602
  F-14




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##### Table of Contents



3. Acquisition and Divestiture
 (1) Komatsu NTC Ltd.
    Millions of yenCurrent assets
    
    ¥
    59,831Property, plant and equipment
    
    
    22,861Intangible assets
    
    
    29,219Goodwill
    
    
    12,815Other assets
    
    
    5,123Total assets acquired
    
    
    129,849Current liabilities
    
    
    (53,882
    )Long-term liabilities
    
    
    (17,291
    )Noncontrolling interests
    
    
    (2,479
    )Total liabilities assumed
    
    
    (73,652
    )Net assets acquired
    
    ¥
    56,197
      Millions of yen2008Sales
    
    ¥
    2,317,784Net income attributable to Komatsu Ltd.
    
    ¥
    211,975
 Yen2008Net income attributable to Komatsu Ltd. per shareBasic
    
    ¥
    213.07Diluted
    
    ¥
    212.792008
   F-15




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##### Table of Contents



(2) BIGRENTAL Co., Ltd.
     Millions of yenCurrent assets
    
    ¥
    9,423Property, plant and equipment
    
    
    39,260Intangible assets
    
    
    3,133Goodwill
    
    
    1,533Other assets
    
    
    922Total assets acquired
    
    
    54,271Current liabilities
    
    
    (12,191
    )Long-term liabilities
    
    
    (31,807
    )Noncontrolling interest
    
    
    (1,709
    )Total liabilities assumed
    
    
    (45,707
    )Net assets acquired
    
    ¥
    8,564
       F-16




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##### Table of Contents



(3) Komatsu Australia Corporate Finance Pty. Ltd.
     Thousands ofMillions of yen
    
    
    U.S. dollarsConsiderationCash and cash equivalents
    
    ¥
    1,684
    
    
    $
    18,107Fair value of total consideration
transferred
    
    
    1,684
    
    
    
    18,107Fair value of Komatsus equity
interest in KACF held before the
business combination
    
    
    696
    
    
    
    7,484¥
    2,380
    
    
    $
    25,591Recognized amounts of identifiable
assets and liabilities assumed
Current assets
    
    ¥
    34,478
    
    
    $
    370,731Property, plant and equipment
    
    
    15,692
    
    
    
    168,731Intangible assets
    
    
    2
    
    
    
    22Other assets
    
    
    232
    
    
    
    2,495Total assets acquired
    
    
    50,404
    
    
    
    541,979Current liabilities
    
    
    (33,174
    )
    
    
    (356,710
    )Long-term liabilities
    
    
    (13,999
    )
    
    
    (150,527
    )Total liabilities assumed
    
    
    (47,173
    )
    
    
    (507,237
    )Net assets acquired
    
    
    3,231
    
    
    
    34,742Noncontrolling interest
    
    
    (1,587
    )
    
    
    (17,065
    )Goodwill
    
    
    736
    
    
    
    7,914¥
    2,380
    
    
    $
    25,591
     F-17




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##### Table of Contents



4. Discontinued Operations
   Millions of yen2008Net sales
    
    ¥
    Income before income taxes, and equity in earnings of affiliated companies
(only gain on sale of the OPE business of Komatsu Zenoah Co.)
    
    
    8,331Income taxes
    
    
    3,364Income from discontinued operations less applicable income taxes
    
    ¥
    4,967
 5. Trade Notes and Accounts Receivable
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Trade notes
    
    ¥
    82,954
    
    
    ¥
    70,807
    
    
    $
    891,978Accounts receivable
    
    
    379,680
    
    
    
    318,424
    
    
    
    4,082,581Total
    
    
    462,634
    
    
    
    389,231
    
    
    
    4,974,559Less: allowance
    
    
    (14,941
    )
    
    
    (15,330
    )
    
    
    (160,656
    )Net trade receivables-current
    
    ¥
    447,693
    
    
    ¥
    373,901
    
    
    $
    4,813,903Long-term trade receivables
    
    ¥
    150,972
    
    
    ¥
    102,969
    
    
    $
    1,623,355
    Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Minimum lease payments
receivable
    
    ¥
    166,983
    
    
    ¥
    111,158
    
    
    $
    1,795,516Unearned income
    
    
    (16,078
    )
    
    
    (9,979
    )
    
    
    (172,882
    )Net lease receivables
    
    ¥
    150,905
    
    
    ¥
    101,179
    
    
    $
    1,622,634
     Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Total amount of trade
receivables that are
managed and securitized
    
    ¥
    635,610
    
    
    ¥
    595,968
    
    
    $
    6,834,516Assets transferred
    
    
    (22,004
    )
    
    
    (103,768
    )
    
    
    (236,602
    )Total amount of trade
receivable on balance sheet
    
    ¥
    613,606
    
    
    ¥
    492,200
    
    
    $
    6,597,914
  F-18




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##### Table of Contents



2010
    
    
    2009Weighted-average life
    
    23 months
    
    
    28 monthsPrepayment speed over the life
    
    
    0.6
    %
    
    
    0.6
    %Expected credit losses over the life
    
    
    5.6
    %
    
    
    2.4
    %
  6. Inventories
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Finished products, including finished parts held for sale
    
    ¥
    254,157
    
    
    ¥
    328,643
    
    
    $
    2,732,871Work in process
    
    
    102,096
    
    
    
    128,345
    
    
    
    1,097,807Materials and supplies
    
    
    40,163
    
    
    
    50,369
    
    
    
    431,860Total
    
    ¥
    396,416
    
    
    ¥
    507,357
    
    
    $
    4,262,538
 7. Investment Securities
   Millions of yenGross unrealized holdingCost
    
    
    Gains
    
    
    Losses
    
    
    Fair valueAt March 31, 2010Investment securities:Marketable equity securities available for sale
    
    ¥
    24,988
    
    
    ¥
    22,235
    
    
    ¥
    45
    
    
    ¥
    47,178Other investment securities at cost
    
    
    13,289Other
    
    
    ¥
    38,277At March 31, 2009Investment securities:Marketable equity securities available for sale
    
    ¥
    24,112
    
    
    ¥
    13,419
    
    
    ¥
    465
    
    
    ¥
    37,066Other investment securities at cost
    
    
    16,788Other
    
    
    101¥
    41,001
 Thousands of U.S. dollarsGross unrealized holdingCost
    
    
    Gains
    
    
    Losses
    
    
    Fair valueAt March 31, 2010Investment securities:Marketable equity securities available for sale
    
    $
    268,688
    
    
    $
    239,086
    
    
    $
    484
    
    
    $
    507,290Other investment securities at cost
    
    
    142,893Other
    
    
    $
    411,581
  F-19




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##### Table of Contents



8. Investments in and Advances to Affiliated Companies
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Investments in capital stock
    
    ¥
    21,688
    
    
    ¥
    16,348
    
    
    $
    233,204Advances
    
    
    2,314
    
    
    
    2,901
    
    
    
    24,882Total
    
    ¥
    24,002
    
    
    ¥
    19,249
    
    
    $
    258,086
            F-20




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##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Current assets
    
    ¥
    107,097
    
    
    ¥
    142,366
    
    
    $
    1,151,581Net property, plant and equipmentless accumulated depreciation
    
    
    42,207
    
    
    
    40,403
    
    
    
    453,839Investments and other assets
    
    
    22,246
    
    
    
    21,991
    
    
    
    239,204Total assets
    
    ¥
    171,550
    
    
    ¥
    204,760
    
    
    $
    1,844,624Current liabilities
    
    ¥
    79,894
    
    
    ¥
    104,734
    
    
    $
    859,075Noncurrent liabilities
    
    
    35,156
    
    
    
    48,161
    
    
    
    378,022Equity
    
    
    56,500
    
    
    
    51,865
    
    
    
    607,527Total liabilities and equity
    
    ¥
    171,550
    
    
    ¥
    204,760
    
    
    $
    1,844,624
 Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Net sales
    
    ¥
    168,418
    
    
    ¥
    205,798
    
    
    ¥
    333,505
    
    
    $
    1,810,946Net income
    
    ¥
    3,229
    
    
    ¥
    1,300
    
    
    ¥
    16,731
    
    
    $
    34,720
 9. Property, Plant and Equipment
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Land
    
    ¥
    92,355
    
    
    ¥
    93,864
    
    
    $
    993,065Buildings
    
    
    329,554
    
    
    
    315,518
    
    
    
    3,543,591Machinery and equipment
    
    
    710,511
    
    
    
    682,241
    
    
    
    7,639,903Construction in progress
    
    
    24,653
    
    
    
    23,468
    
    
    
    265,086Total
    
    
    1,157,073
    
    
    
    1,115,091
    
    
    
    12,441,645Less: accumulated depreciation
    
    
    (631,973
    )
    
    
    (589,629
    )
    
    
    (6,795,408
    )Net property, plant and equipment
    
    ¥
    525,100
    
    
    ¥
    525,462
    
    
    $
    5,646,237
  10. Pledged Assets
  Thousands ofMillions of yen
    
    
    U.S. dollarsCash and cash equivalents
    
    ¥
    2
    
    
    $
    21Other current assets
    
    
    1,887
    
    
    
    20,290Property, plant and equipmentless accumulated depreciation
    
    
    4,660
    
    
    
    50,108Total
    
    ¥
    6,549
    
    
    $
    70,419
  Thousands ofMillions of yen
    
    
    U.S. dollarsAppearing in the consolidated balance sheets as:Long-term debt
    
    ¥
    4,660
    
    
    $
    50,107Guarantees for debt
    
    
    1,889
    
    
    
    20,312Total
    
    ¥
    6,549
    
    
    $
    70,419
  F-21




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##### Table of Contents



11. Goodwill and Other Intangible Assets
  Millions of yen
    
    
    Thousands of U.S. dollars2010
    
    
    2009
    
    
    2010Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    Netcarrying
    
    
    Accumulated
    
    
    carrying
    
    
    carrying
    
    
    Accumulated
    
    
    carrying
    
    
    carrying
    
    
    Accumulated
    
    
    carryingamount
    
    
    amortization
    
    
    amount
    
    
    amount
    
    
    amortization
    
    
    amount
    
    
    amount
    
    
    amortization
    
    
    amountOther intangible assets
subject to amortization:Software
    
    ¥
    26,059
    
    
    ¥
    (4,640
    )
    
    ¥
    21,419
    
    
    ¥
    23,386
    
    
    ¥
    (3,031
    )
    
    ¥
    20,355
    
    
    $
    280,204
    
    
    $
    (49,892
    )
    
    $
    230,312Other
    
    
    39,242
    
    
    
    (11,629
    )
    
    
    27,613
    
    
    
    36,262
    
    
    
    (9,179
    )
    
    
    27,083
    
    
    
    421,957
    
    
    
    (125,043
    )
    
    
    296,914Total
    
    
    65,301
    
    
    
    (16,269
    )
    
    
    49,032
    
    
    
    59,648
    
    
    
    (12,210
    )
    
    
    47,438
    
    
    
    702,161
    
    
    
    (174,935
    )
    
    
    527,226Other intangible assets not
subject to amortization
    
    
    
    
    
    
    
    
    
    
    12,697
    
    
    
    
    
    
    
    
    
    
    
    12,908
    
    
    
    
    
    
    
    
    
    
    
    136,527Total other intangible assets
    
    
    
    
    
    
    
    
    
    ¥
    61,729
    
    
    
    
    
    
    
    
    
    
    ¥
    60,346
    
    
    
    
    
    
    
    
    
    
    $
    663,753
    Thousands ofYear ending March 31
    
    Millions of yen
    
    
    U.S. dollars2011
    
    ¥
    8,358
    
    
    $
    89,8712012
    
    
    7,883
    
    
    
    84,7632013
    
    
    6,782
    
    
    
    72,9252014
    
    
    4,538
    
    
    
    48,7962015
    
    
    3,143
    
    
    
    33,796
  Millions of yenConstruction, Mining
    
    
    Industrial Machineryand Utility Equipment
    
    
    and Otherssegment
    
    
    segment
    
    
    TotalBalance at March 31, 2008Goodwill
    
    ¥
    25,194
    
    
    ¥
    13,355
    
    
    ¥
    38,549Accumulated impairment losses
    
    
    (6,176
    )
    
    
    (540
    )
    
    
    (6,716
    )¥
    19,018
    
    
    ¥
    12,815
    
    
    ¥
    31,833Goodwill acquired during the year
    
    
    628
    
    
    
    588
    
    
    
    1,216Impairment losses
    
    
    (2,003
    )
    
    
    
    
    
    
    (2,003
    )Foreign exchange impact
    
    
    (2,318
    )
    
    
    
    
    
    
    (2,318
    )Other
    
    
    (67
    )
    
    
    
    
    
    
    (67
    )Balance at March 31, 2009Goodwill
    
    
    23,437
    
    
    
    13,943
    
    
    
    37,380Accumulated impairment losses
    
    
    (8,179
    )
    
    
    (540
    )
    
    
    (8,719
    )¥
    15,258
    
    
    ¥
    13,403
    
    
    ¥
    28,661Goodwill acquired during the year
    
    
    736
    
    
    
    
    
    
    
    736Foreign exchange impact
    
    
    173
    
    
    
    
    
    
    
    173Balance at March 31, 2010Goodwill
    
    
    24,346
    
    
    
    13,943
    
    
    
    38,289Accumulated impairment losses
    
    
    (8,179
    )
    
    
    (540
    )
    
    
    (8,719
    )¥
    16,167
    
    
    ¥
    13,403
    
    
    ¥
    29,570
  F-22




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##### Table of Contents



Thousands of U.S. dollarsConstruction, Mining
    
    
    Industrial Machineryand Utility Equipment
    
    
    and Otherssegment
    
    
    segment
    
    
    TotalBalance at March 31, 2009Goodwill
    
    $
    252,011
    
    
    $
    149,925
    
    
    $
    401,936Accumulated impairment losses
    
    
    (87,946
    )
    
    
    (5,807
    )
    
    
    (93,753
    )$
    164,065
    
    
    $
    144,118
    
    
    $
    308,183Goodwill acquired during the year
    
    
    7,914
    
    
    
    
    
    
    
    7,914Foreign exchange impact
    
    
    1,860
    
    
    
    
    
    
    
    1,860Balance at March 31, 2010Goodwill
    
    
    261,785
    
    
    
    149,925
    
    
    
    411,710Accumulated impairment losses
    
    
    (87,946
    )
    
    
    (5,807
    )
    
    
    (93,753
    )$
    173,839
    
    
    $
    144,118
    
    
    $
    317,957
   12. Short-Term and Long-Term Debt
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Banks, insurance companies and other financial institutions
    
    ¥
    92,438
    
    
    ¥
    125,087
    
    
    $
    993,957Commercial paper
    
    
    31,000
    
    
    
    95,000
    
    
    
    333,333Short-term debt
    
    ¥
    123,438
    
    
    ¥
    220,087
    
    
    $
    1,327,290
  F-23




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##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Long-term debt with collateral (Note 10):Banks, insurance companies and other financial institutions,
maturing in 2010, weighted-average rate 1.8%
    
    ¥
    50
    
    
    ¥
    1,400
    
    
    $
    538Long-term debt without collateral:Banks, insurance companies and other financial institutions,
maturing serially through 2010-2025, weighted-average rate 2.3%
    
    
    228,311
    
    
    
    162,261
    
    
    
    2,454,957Euro Medium-Term Notesmaturing serially through 2010-2013, weighted-average rate 0.7%
    
    
    68,142
    
    
    
    63,332
    
    
    
    732,7101.45% Unsecured Bonds due 2009
    
    
    
    
    
    
    10,000
    
    
    
    0.98% Unsecured Bonds due 2010
    
    
    
    
    
    
    200
    
    
    
    1.66% Unsecured Bonds due 2012
    
    
    20,000
    
    
    
    20,000
    
    
    
    215,0540.85% Unsecured Bonds due 2012
    
    
    10,000
    
    
    
    
    
    
    
    107,5271.53% Unsecured Bonds due 2013
    
    
    30,000
    
    
    
    30,000
    
    
    
    322,5801.19% Unsecured Bonds due 2014
    
    
    30,000
    
    
    
    
    
    
    
    322,580Capital lease obligations (Note 17)
    
    
    72,951
    
    
    
    86,399
    
    
    
    784,419Other
    
    
    3,487
    
    
    
    6,176
    
    
    
    37,495Total
    
    
    462,941
    
    
    
    379,768
    
    
    
    4,977,860Less: current maturities
    
    
    (105,956
    )
    
    
    (87,662
    )
    
    
    (1,139,312
    )Long-term debt
    
    ¥
    356,985
    
    
    ¥
    292,106
    
    
    $
    3,838,548
       Thousands ofYear ending March 31
    
    Millions of yen
    
    
    U.S. dollars2011
    
    ¥
    104,111
    
    
    $
    1,119,4732012
    
    
    120,638
    
    
    
    1,297,1832013
    
    
    118,775
    
    
    
    1,277,1502014
    
    
    57,678
    
    
    
    620,1942015
    
    
    52,247
    
    
    
    561,7962016 and thereafter
    
    
    2,321
    
    
    
    24,957Total
    
    ¥
    455,770
    
    
    $
    4,900,753
  F-24




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##### Table of Contents



13. Liability for Pension and Other Retirement Benefits
     Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Change in benefit obligation:Benefit obligation, beginning of year
    
    ¥
    139,569
    
    
    ¥
    143,214
    
    
    $
    1,500,742Service cost
    
    
    7,224
    
    
    
    8,460
    
    
    
    77,677Interest cost
    
    
    3,745
    
    
    
    3,885
    
    
    
    40,269Actuarial loss (gain)
    
    
    4,048
    
    
    
    462
    
    
    
    43,527Plan participants contributions
    
    
    49
    
    
    
    98
    
    
    
    527Acquisition
    
    
    
    
    
    
    348
    
    
    
    Plan amendment
    
    
    208
    
    
    
    
    
    
    
    2,236Curtailment
    
    
    
    
    
    
    330
    
    
    
    Benefits paid
    
    
    (17,446
    )
    
    
    (13,234
    )
    
    
    (187,591
    )Foreign currency exchange rate change
    
    
    55
    
    
    
    (3,994
    )
    
    
    591Benefit obligation, end of year
    
    ¥
    137,452
    
    
    ¥
    139,569
    
    
    $
    1,477,978Change in plan assets:Fair value of plan assets, beginning of year
    
    ¥
    88,252
    
    
    ¥
    107,183
    
    
    $
    948,946Actual return on plan assets
    
    
    10,329
    
    
    
    (12,044
    )
    
    
    111,065Employer contributions
    
    
    6,465
    
    
    
    4,549
    
    
    
    69,516Plan participants contributions
    
    
    49
    
    
    
    98
    
    
    
    527Acquisition
    
    
    
    
    
    
    66
    
    
    
    Benefits paid
    
    
    (10,788
    )
    
    
    (8,496
    )
    
    
    (116,000
    )Foreign currency exchange rate change
    
    
    96
    
    
    
    (3,104
    )
    
    
    1,032Fair value of plan assets, end of year
    
    ¥
    94,403
    
    
    ¥
    88,252
    
    
    $
    1,015,086Funded status, end of year
    
    ¥
    (43,049
    )
    
    ¥
    (51,317
    )
    
    $
    (462,892
    )Prepaid benefit cost
    
    ¥
    22
    
    
    ¥
    184
    
    
    $
    237Other current liability
    
    
    (89
    )
    
    
    (623
    )
    
    
    (957
    )Accrued benefit liability
    
    
    (42,982
    )
    
    
    (50,878
    )
    
    
    (462,172
    )¥
    (43,049
    )
    
    ¥
    (51,317
    )
    
    $
    (462,892
    )Amounts recognized in accumulated other comprehensive income (loss):Actuarial loss
    
    ¥
    34,979
    
    
    ¥
    41,258
    
    
    $
    376,118Prior service cost
    
    
    1,370
    
    
    
    1,341
    
    
    
    14,731¥
    36,349
    
    
    ¥
    42,599
    
    
    $
    390,849
   F-25




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##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Plans with accumulated benefit obligations in excess of plan assets:Accumulated benefit obligations
    
    ¥
    119,363
    
    
    ¥
    127,171
    
    
    $
    1,283,473Plan assets
    
    
    82,806
    
    
    
    82,868
    
    
    
    890,387Plans with projected benefit obligations in excess of plan assets:Projected benefit obligations
    
    ¥
    134,348
    
    
    ¥
    139,506
    
    
    $
    1,444,602Plan assets
    
    
    91,255
    
    
    
    88,182
    
    
    
    981,237
 Components of net periodic pension cost
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Service cost - Benefits earned during the year
    
    ¥
    7,224
    
    
    ¥
    8,460
    
    
    ¥
    6,390
    
    
    $
    77,677Interest cost on projected benefit obligation
    
    
    3,745
    
    
    
    3,885
    
    
    
    3,776
    
    
    
    40,269Expected return on plan assets
    
    
    (2,452
    )
    
    
    (3,029
    )
    
    
    (3,210
    )
    
    
    (26,366
    )Amortization of actuarial loss
    
    
    2,478
    
    
    
    1,622
    
    
    
    570
    
    
    
    26,645Amortization of prior service cost
    
    
    179
    
    
    
    535
    
    
    
    825
    
    
    
    1,925Curtailment and settlement loss (gain)
    
    
    (28
    )
    
    
    475
    
    
    
    
    
    
    
    (301
    )Net periodic cost
    
    ¥
    11,146
    
    
    ¥
    11,948
    
    
    ¥
    8,351
    
    
    $
    119,849
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Current year actuarial loss
    
    ¥
    (3,829
    )
    
    ¥
    15,870
    
    
    $
    (41,172
    )Amortization of actuarial loss
    
    
    (2,450
    )
    
    
    (2,031
    )
    
    
    (26,344
    )Current year prior service cost
    
    
    208
    
    
    
    (5
    )
    
    
    2,237Amortization of prior service cost
    
    
    (179
    )
    
    
    (601
    )
    
    
    (1,925
    )¥
    (6,250
    )
    
    ¥
    13,233
    
    
    $
    (67,204
    )
  Thousands ofMillions of yen
    
    
    U.S. dollarsActuarial loss
    
    ¥
    2,203
    
    
    $
    23,688Prior service cost
    
    
    182
    
    
    
    1,957
  Assumptions
  Domestic plans
    
    
    Foreign plans2010
    
    
    2009
    
    
    2010
    
    
    2009Discount rate
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    6.0
    %
    
    
    6.9
    %Assumed rate of increase in future compensation levels (Point-based benefit system)
    
    
    3.8
    %
    
    
    3.9
    %
    
    
    
    
    
    
    Assumed rate of increase in future compensation levels
    
    
    2.6
    %
    
    
    2.4
    %
    
    
    4.4
    %
    
    
    4.1
    %
  F-26




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##### Table of Contents



Domestic plans
    
    
    Foreign plans2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008Discount rate
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    1.9
    %
    
    
    6.9
    %
    
    
    6.7
    %
    
    
    5.6
    %Assumed rate of increase in future compensation levels (Point-based benefit system)
    
    
    3.9
    %
    
    
    3.9
    %
    
    
    3.7
    %
    
    
    
    
    
    
    
    
    
    
    Assumed rate of increase in future compensation levels
    
    
    2.4
    %
    
    
    2.0
    %
    
    
    2.3
    %
    
    
    4.1
    %
    
    
    4.4
    %
    
    
    4.1
    %Expected long-term rate of return on plan assets
    
    
    1.9
    %
    
    
    1.9
    %
    
    
    1.9
    %
    
    
    7.6
    %
    
    
    7.5
    %
    
    
    7.6
    %
   Plan assets
       F-27




---



##### Table of Contents



Millions of yen2010Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalPlan assetsCash
    
    ¥
    4,486
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    4,486Equity securitiesJapanese equities
    
    
    13,730
    
    
    
    
    
    
    
    
    
    
    
    13,730Foreign equities
    
    
    17,358
    
    
    
    
    
    
    
    
    
    
    
    17,358Pooled funds
    
    
    2,650
    
    
    
    
    
    
    
    
    
    
    
    2,650Debt securitiesGovernment bonds and municipal bonds
    
    
    20,030
    
    
    
    1,245
    
    
    
    
    
    
    
    21,275Corporate bonds
    
    
    
    
    
    
    4,698
    
    
    
    
    
    
    
    4,698Other assetsLife insurance company general
accounts
    
    
    
    
    
    
    29,638
    
    
    
    
    
    
    
    29,638Other
    
    
    145
    
    
    
    
    
    
    
    423
    
    
    
    568Total
    
    ¥
    58,399
    
    
    ¥
    35,581
    
    
    ¥
    423
    
    
    ¥
    94,403
 Thousands of U.S. dollars2010Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalPlan assetsCash
    
    $
    48,237
    
    
    $
    
    
    
    $
    
    
    
    $
    48,237Equity securitiesJapanese equities
    
    
    147,634
    
    
    
    
    
    
    
    
    
    
    
    147,634Foreign equities
    
    
    186,645
    
    
    
    
    
    
    
    
    
    
    
    186,645Pooled funds
    
    
    28,495
    
    
    
    
    
    
    
    
    
    
    
    28,495Debt securitiesGovernment bonds and municipal bonds
    
    
    215,376
    
    
    
    13,387
    
    
    
    
    
    
    
    228,763Corporate bonds
    
    
    
    
    
    
    50,516
    
    
    
    
    
    
    
    50,516Other assetsLife insurance company
general accounts
    
    
    
    
    
    
    318,688
    
    
    
    
    
    
    
    318,688Other
    
    
    1,559
    
    
    
    
    
    
    
    4,549
    
    
    
    6,108Total
    
    $
    627,946
    
    
    $
    382,591
    
    
    $
    4,549
    
    
    $
    1,015,086
 (1)
    
    The plans equity securities include common stock of the Company in the amount of ¥48
million ($516 thousand) (0.08% of the Companys total plan assets) and ¥21 million (0.03% of the
Companys total plan assets) at March 31, 2010 and 2009, respectively.(2)
    
    The plans pooled funds which are primarily hold by the U.S. subsidiaries include listed
foreign equity securities primarily consisting U.S. equity.(3)
    
    The plans government bonds and
municipal bonds include approximately 50% Japanese bonds and 50% foreign bonds.    Cash flows
 (1) Contributions
   F-28




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##### Table of Contents



(2) Estimated future benefit payments
  Thousands ofYear ending March 31
    
    Millions of yen
    
    
    U.S. dollars2011
    
    ¥
    13,379
    
    
    $
    143,8602012
    
    
    14,039
    
    
    
    150,9572013
    
    
    11,998
    
    
    
    129,0112014
    
    
    7,863
    
    
    
    84,5482015
    
    
    8,805
    
    
    
    94,677Through 2016-2020
    
    ¥
    44,270
    
    
    $
    476,022
 Other postretirement benefit plan
   Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Change in accumulated postretirement benefit obligation:Accumulated postretirement benefit obligation, beginning of year
    
    ¥
    9,069
    
    
    ¥
    9,555
    
    
    $
    97,516Service cost
    
    
    231
    
    
    
    311
    
    
    
    2,484Interest cost
    
    
    528
    
    
    
    575
    
    
    
    5,677Actuarial loss (gain)
    
    
    979
    
    
    
    150
    
    
    
    10,527Plan amendment
    
    
    
    
    
    
    (393
    )
    
    
    Curtailment
    
    
    (456
    )
    
    
    
    
    
    
    (4,903
    )Plan participants contributions
    
    
    2
    
    
    
    
    
    
    
    22Medicare Part D
    
    
    68
    
    
    
    74
    
    
    
    731Benefits paid
    
    
    (659
    )
    
    
    (839
    )
    
    
    (7,086
    )Foreign currency exchange rate change
    
    
    (346
    )
    
    
    (364
    )
    
    
    (3,721
    )Accumulated postretirement benefit obligation, end of year
    
    ¥
    9,416
    
    
    ¥
    9,069
    
    
    $
    101,247Change in plan assets:Fair value of plan assets, beginning of year
    
    ¥
    6,579
    
    
    ¥
    7,521
    
    
    $
    70,742Actual return on plan assets
    
    
    1,156
    
    
    
    (821
    )
    
    
    12,430Employer contributions
    
    
    657
    
    
    
    837
    
    
    
    7,065Plan participants contributions
    
    
    2
    
    
    
    
    
    
    
    22Benefits paid
    
    
    (1,894
    )
    
    
    (839
    )
    
    
    (20,366
    )Foreign currency exchange rate change
    
    
    (348
    )
    
    
    (119
    )
    
    
    (3,742
    )Fair value of plan assets, end of year
    
    ¥
    6,152
    
    
    ¥
    6,579
    
    
    $
    66,151Funded status, end of year
    
    ¥
    (3,264
    )
    
    ¥
    (2,490
    )
    
    $
    (35,096
    )Prepaid benefit cost
    
    ¥
    700
    
    
    ¥
    677
    
    
    $
    7,527Other current liabilities
    
    
    (38
    )
    
    
    (37
    )
    
    
    (408
    )Accrued benefit liability
    
    
    (3,926
    )
    
    
    (3,130
    )
    
    
    (42,215
    )¥
    (3,264
    )
    
    ¥
    (2,490
    )
    
    $
    (35,096
    )Amounts recognized in accumulated other comprehensive income (loss):Actuarial loss
    
    ¥
    3,502
    
    
    ¥
    3,945
    
    
    $
    37,656Prior service cost
    
    
    616
    
    
    
    686
    
    
    
    6,624¥
    4,118
    
    
    ¥
    4,631
    
    
    $
    44,280
   F-29




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##### Table of Contents



Components of net periodic postretirement benefit cost
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Service cost
    
    ¥
    231
    
    
    ¥
    311
    
    
    ¥
    340
    
    
    $
    2,484Interest cost
    
    
    528
    
    
    
    575
    
    
    
    597
    
    
    
    5,677Expected return on plan assets
    
    
    (324
    )
    
    
    (400
    )
    
    
    (232
    )
    
    
    (3,484
    )Amortization of actuarial loss
    
    
    250
    
    
    
    201
    
    
    
    160
    
    
    
    2,688Amortization of prior service cost
    
    
    70
    
    
    
    128
    
    
    
    144
    
    
    
    753Curtailment and settlement loss (gain)
    
    
    (116
    )
    
    
    
    
    
    
    
    
    
    
    (1,247
    )Net periodic postretirement benefit cost
    
    ¥
    639
    
    
    ¥
    815
    
    
    ¥
    1,009
    
    
    $
    6,871
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Current year actuarial (gain) loss
    
    ¥
    (309
    )


    
    ¥
    1,371
    
    
    $
    (3,322
    )Amortization of actuarial loss
    
    
    (134
    )


    
    
    (201
    )
    
    
    (1,441
    )Current year prior service cost
    
    
    
    



    
    
    (393
    )
    
    
    Amortization of prior service cost
    
    
    (70
    )
    



  
    (128
    )
    
    
    (753
    )¥
    (513
    )
    
    ¥


   649
    
    
    $
    (5,516
    )
  Thousands ofMillions of yen
    
    
    U.S. dollarsActuarial loss
    
    ¥
    234
    
    
    $
    2,516Prior service cost
    
    
    70
    
    
    
    753
  Assumptions
  2010
    
    
    2009Discount rate
    
    
    5.4
    %
    
    
    6.4
    %Assumed rate of increase in future compensation levels
    
    
    4.0
    %
    
    
    4.0
    %Current healthcare cost trend rate
    
    
    7.8
    %
    
    
    7.8
    %Ultimate healthcare cost trend rate
    
    
    4.8
    %
    
    
    4.8
    %Number of years to ultimate healthcare cost trend rate
    
    
    7
    
    
    
    7
  2010
    
    
    2009
    
    
    2008Discount rate
    
    
    6.4
    %
    
    
    5.9
    %
    
    
    5.5
    %Assumed rate of increase in future compensation levels
    
    
    4.0
    %
    
    
    4.0
    %
    
    
    4.0
    %Expected long-term rate of return on plan assets
    
    
    5.5
    %
    
    
    5.5
    %
    
    
    5.5
    %Current healthcare cost trend rate
    
    
    7.8
    %
    
    
    7.7
    %
    
    
    9.0
    %Ultimate healthcare cost trend rate
    
    
    4.8
    %
    
    
    4.8
    %
    
    
    5.0
    %Number of years to ultimate healthcare cost trend rate
    
    
    7
    
    
    
    6
    
    
    
    5
   F-30




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##### Table of Contents



Plan assets
      Millions of yen2010Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalPlan assetsCash
    
    ¥
    155
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    155Equity securitiesForeign equities
    
    
    959
    
    
    
    
    
    
    
    
    
    
    
    959Pooled funds
    
    
    1,113
    
    
    
    
    
    
    
    
    
    
    
    1,113Debt securitiesGovernment bonds
    
    
    
    
    
    
    2,936
    
    
    
    
    
    
    
    2,936Corporate bonds
    
    
    
    
    
    
    989
    
    
    
    
    
    
    
    989Total
    
    ¥
    2,227
    
    
    ¥
    3,925
    
    
    ¥
    
    
    
    ¥
    6,152
 Thousands of U.S. dollars2010Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalPlan assetsCash
    
    $
    1,667
    
    
    $
    
    
    
    $
    
    
    
    $
    1,667Equity securitiesForeign equities
    
    
    10,312
    
    
    
    
    
    
    
    
    
    
    
    10,312Pooled funds
    
    
    11,968
    
    
    
    
    
    
    
    
    
    
    
    11,968Debt securitiesGovernment bonds
    
    
    
    
    
    
    31,570
    
    
    
    
    
    
    
    31,570Corporate bonds
    
    
    
    
    
    
    10,634
    
    
    
    
    
    
    
    10,634Total
    
    $
    23,947
    
    
    $
    42,204
    
    
    $
    
    
    
    $
    66,151
 (1)
    
    The plans pooled funds include listed foreign equity securities primarily consisting U.S. equity.(2)
    
    The plans government bonds are U.S. government bonds.    F-31




---



##### Table of Contents



Cash flows
     Thousands ofYear ending March 31
    
    Millions of yen
    
    
    U.S. dollars2011
    
    ¥
    738
    
    
    $
    7,9352012
    
    
    765
    
    
    
    8,2262013
    
    
    786
    
    
    
    8,4522014
    
    
    807
    
    
    
    8,6772015
    
    
    825
    
    
    
    8,871Through 2016-2020
    
    ¥
    4,481
    
    
    $
    48,183
   14. Komatsu Ltd. Shareholders Equity



(1) Common Stock and Capital Surplus
    (2) Retained Earnings Appropriated for Legal Reserve
   (3) Retained Earnings and Dividends
   F-32




---



##### Table of Contents



(4) Stock Option Plan
    F-33




---



##### Table of Contents



2010
    
    
    2009
    
    
    2008Number of
    
    
    Weighted average
    
    
    Number of
    
    
    Weighted average
    
    
    Number of
    
    
    Weighted averageshares
    
    
    exercise price
    
    
    shares
    
    
    exercise price
    
    
    shares
    
    
    exercise priceYen
    
    
    U.S. dollars
    
    
    
    
    
    
    Yen
    
    
    
    
    
    
    YenOutstanding at beginning of year
    
    
    2,891,000
    
    
    ¥
    2,022
    
    
    $
    21.74
    
    
    
    2,844,000
    
    
    ¥
    1,784
    
    
    
    3,648,000
    
    
    ¥
    1,182Granted
    
    
    642,000
    
    
    
    1,729
    
    
    
    18.59
    
    
    
    463,000
    
    
    
    2,499
    
    
    
    562,000
    
    
    
    3,661Exercised
    
    
    (200,000
    )
    
    
    595
    
    
    
    6.40
    
    
    
    (416,000
    )
    
    
    926
    
    
    
    (1,366,000
    )
    
    
    947Outstanding at end of year
    
    
    3,333,000
    
    
    
    2,051
    
    
    
    22.05
    
    
    
    2,891,000
    
    
    
    2,022
    
    
    
    2,844,000
    
    
    
    1,784Exercisable at end of year
    
    
    2,691,000
    
    
    
    2,128
    
    
    
    22.88
    
    
    
    2,428,000
    
    
    
    1,931
    
    
    
    2,282,000
    
    
    
    1,322
   Outstanding
    
    
    Options ExercisableWeighted average
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Weighted averageWeighted average
    
    
    Intrinsic value
    
    
    remaining
    
    
    
    
    
    
    Weighted average
    
    
    Intrinsic value
    
    
    remainingNumber of
    
    
    exercise price
    
    
    Millions of
    
    
    Thousands of
    
    
    contractual life
    
    
    Number of
    
    
    exercise price
    
    
    Millions of
    
    
    Thousands of
    
    
    contractual lifeExercise Prices
    
    shares
    
    
    Yen
    
    
    U.S. dollars
    
    
    yen
    
    
    U.S. dollars
    
    
    years
    
    
    Shares
    
    
    Yen
    
    
    U.S. dollars
    
    
    yen
    
    
    U.S. dollars
    
    
    years¥651 - 900
    
    
    330,000
    
    
    ¥
    673
    
    
    $
    7.24
    
    
    ¥
    425
    
    
    $
    4,570
    
    
    
    2.3
    
    
    
    330,000
    
    
    ¥
    673
    
    
    $
    7.24
    
    
    ¥
    425
    
    
    $
    4,570
    
    
    
    2.3¥901 - 1,350
    
    
    680,000
    
    
    
    1,126
    
    
    
    12.11
    
    
    
    567
    
    
    
    6,097
    
    
    
    3.3
    
    
    
    680,000
    
    
    
    1,126
    
    
    
    12.11
    
    
    
    567
    
    
    
    6,097
    
    
    
    3.3¥1,351 - 2,325
    
    
    1,298,000
    
    
    
    2,030
    
    
    
    21.83
    
    
    
    148
    
    
    
    1,591
    
    
    
    5.9
    
    
    
    656,000
    
    
    
    2,325
    
    
    
    25.00
    
    
    
    
    
    
    
    
    
    
    
    2.2¥2,326 - 3,700
    
    
    1,025,000
    
    
    
    3,136
    
    
    
    33.72
    
    
    
    
    
    
    
    
    
    
    
    5.9
    
    
    
    1,025,000
    
    
    
    3,136
    
    
    
    33.72
    
    
    
    
    
    
    
    
    
    
    
    5.9¥651 - 3,700
    
    
    3,333,000
    
    
    
    2,051
    
    
    
    22.05
    
    
    
    1,140
    
    
    
    12,258
    
    
    
    5.0
    
    
    
    2,691,000
    
    
    
    2,128
    
    
    
    22.88
    
    
    
    992
    
    
    
    10,667
    
    
    
    4.4
   F-34




---



##### Table of Contents



2010
    
    
    2009
    
    
    2008Grant-date fair value
    
    ¥
    643 ($6.91
    )
    
    ¥
    813
    
    
    ¥
    1,266Expected term
    
    7 years
    
    
    7 years
    
    
    7 yearsRisk-free rate
    
    
    0.17%1.35
    %*
    
    
    0.60%1.48
    %*
    
    
    0.76%1.66
    %*Expected volatility
    
    
    44.00
    %
    
    
    39.00
    %
    
    
    38.00
    %Expected dividend yield
    
    
    2.07
    %
    
    
    1.32
    %
    
    
    1.36
    %
 *
    
    Interest rate corresponding to discount periods is applied to risk-free rate, that is as follows: 1 year
    
    
    2 years
    
    
    3 years
    
    
    4 years
    
    
    5 years
    
    
    6 years
    
    
    7 years
    
    
    8 years
    
    
    9 years
    
    
    10 years2008
    
    
    0.76
    %
    
    
    0.87
    %
    
    
    0.98
    %
    
    
    1.08
    %
    
    
    1.19
    %
    
    
    1.29
    %
    
    
    1.39
    %
    
    
    1.48
    %
    
    
    1.57
    %
    
    
    1.66
    %2009
    
    
    0.60
    %
    
    
    0.71
    %
    
    
    0.82
    %
    
    
    0.94
    %
    
    
    1.02
    %
    
    
    1.07
    %
    
    
    1.07
    %
    
    
    1.16
    %
    
    
    1.33
    %
    
    
    1.48
    %2010
    
    
    0.17
    %
    
    
    0.24
    %
    
    
    0.32
    %
    
    
    0.48
    %
    
    
    0.63
    %
    
    
    0.74
    %
    
    
    0.88
    %
    
    
    1.03
    %
    
    
    1.19
    %
    
    
    1.35
    %
 15. Other Comprehensive Income (Loss)
   Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Foreign currency translation adjustments:Balance, beginning of year
    
    ¥
    (84,152
    )
    
    ¥
    (34,457
    )
    
    ¥
    9,204
    
    
    $
    (904,861
    )Adjustment for the year
    
    
    (904
    )
    
    
    (49,695
    )
    
    
    (43,661
    )
    
    
    (9,720
    )Balance, end of year
    
    ¥
    (85,056
    )
    
    ¥
    (84,152
    )
    
    ¥
    (34,457
    )
    
    $
    (914,581
    )Net unrealized holding gains (losses) on securities available for sale:Balance, beginning of year
    
    ¥
    8,646
    
    
    ¥
    24,736
    
    
    ¥
    39,807
    
    
    $
    92,967Net increase (decrease)
    
    
    5,480
    
    
    
    (16,090
    )
    
    
    (15,071
    )
    
    
    58,925Balance, end of year
    
    ¥
    14,126
    
    
    ¥
    8,646
    
    
    ¥
    24,736
    
    
    $
    151,892Pension liability adjustments:Balance, beginning of year
    
    ¥
    (29,235
    )
    
    ¥
    (19,208
    )
    
    ¥
    (15,300
    )
    
    $
    (314,355
    )Adjustment for the year
    
    
    4,920
    
    
    
    (10,027
    )
    
    
    (3,908
    )
    
    
    52,903Balance, end of year
    
    ¥
    (24,315
    )
    
    ¥
    (29,235
    )
    
    ¥
    (19,208
    )
    
    $
    (261,452
    )Net unrealized holding gains (losses) on derivative instruments:Balance, beginning of year
    
    ¥
    (1,003
    )
    
    ¥
    150
    
    
    ¥
    (210
    )
    
    $
    (10,785
    )Net increase (decrease)
    
    
    614
    
    
    
    (1,153
    )
    
    
    360
    
    
    
    6,602Balance, end of year
    
    ¥
    (389
    )
    
    ¥
    (1,003
    )
    
    ¥
    150
    
    
    $
    (4,183
    )Total accumulated other comprehensive income (loss)Balance, beginning of year
    
    ¥
    (105,744
    )
    
    ¥
    (28,779
    )
    
    ¥
    33,501
    
    
    $
    (1,137,033
    )Other comprehensive income (loss) for the year, net of tax
    
    
    10,110
    
    
    
    (76,965
    )
    
    
    (62,280
    )
    
    
    108,710Balance, end of year
    
    ¥
    (95,634
    )
    
    ¥
    (105,744
    )
    
    ¥
    (28,779
    )
    
    $
    (1,028,323
    )
  F-35




---



##### Table of Contents



Millions of yenPretax
    
    
    Tax (expense)
    
    
    Net of taxamount
    
    
    or benefit
    
    
    amount2010:Foreign currency translation adjustments
    
    ¥
    (1,196
    )
    
    ¥
    292
    
    
    ¥
    (904
    )Net unrealized holding gains (losses) on securities available for sale:Unrealized holding gains or (losses) arising during the year
    
    
    9,124
    
    
    
    (3,843
    )
    
    
    5,281Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    336
    
    
    
    (137
    )
    
    
    199Net unrealized gains (losses)
    
    
    9,460
    
    
    
    (3,980
    )
    
    
    5,480Pension liability adjustmentsUnrealized holding gains or (losses) arising during the year
    
    
    3,930
    
    
    
    (1,224
    )
    
    
    2,706Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    2,833
    
    
    
    (619
    )
    
    
    2,214Net unrealized gains (losses)
    
    
    6,763
    
    
    
    (1,843
    )
    
    
    4,920Net unrealized holding gains (losses) on derivative instruments:Changes in fair value of derivatives
    
    
    2,121
    
    
    
    (1,138
    )
    
    
    983Net (gains) or losses reclassified into earnings
    
    
    (621
    )
    
    
    252
    
    
    
    (369
    )Net unrealized gains (losses)
    
    
    1,500
    
    
    
    (886
    )
    
    
    614Other comprehensive income
    
    ¥
    16,527
    
    
    ¥
    (6,417
    )
    
    ¥
    10,1102009:Foreign currency translation adjustments
    
    ¥
    (50,243
    )
    
    ¥
    548
    
    
    ¥
    (49,695
    )Net unrealized holding gains (losses) on securities available for sale:Unrealized holding gains or (losses) arising during the year
    
    
    (29,333
    )
    
    
    11,432
    
    
    
    (17,901
    )Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    3,058
    
    
    
    (1,247
    )
    
    
    1,811Net unrealized gains (losses)
    
    
    (26,275
    )
    
    
    10,185
    
    
    
    (16,090
    )Pension liability adjustmentsUnrealized holding gains or (losses) arising during the year
    
    
    (16,843
    )
    
    
    4,420
    
    
    
    (12,423
    )Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    2,961
    
    
    
    (565
    )
    
    
    2,396Net unrealized gains (losses)
    
    
    (13,882
    )
    
    
    3,855
    
    
    
    (10,027
    )Net unrealized holding gains (losses) on derivative instruments:Changes in fair value of derivatives
    
    
    855
    
    
    
    (306
    )
    
    
    549Net (gains) or losses reclassified into earnings
    
    
    (2,892
    )
    
    
    1,190
    
    
    
    (1,702
    )Net unrealized gains (losses)
    
    
    (2,037
    )
    
    
    884
    
    
    
    (1,153
    )Other comprehensive loss
    
    ¥
    (92,437
    )
    
    ¥
    15,472
    
    
    ¥
    (76,965
    )2008:Foreign currency translation adjustments
    
    ¥
    (43,661
    )
    
    ¥
    
    
    
    ¥
    (43,661
    )Net unrealized holding gains (losses) on securities available for sale:Unrealized holding gains or (losses) arising during the year
    
    
    (30,182
    )
    
    
    15,098
    
    
    
    (15,084
    )Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    22
    
    
    
    (9
    )
    
    
    13Net unrealized gains (losses)
    
    
    (30,160
    )
    
    
    15,089
    
    
    
    (15,071
    )Pension liability adjustmentsUnrealized holding gains or (losses) arising during the year
    
    
    (8,254
    )
    
    
    3,337
    
    
    
    (4,917
    )Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    1,699
    
    
    
    (690
    )
    
    
    1,009Net unrealized gains (losses)
    
    
    (6,555
    )
    
    
    2,647
    
    
    
    (3,908
    )Net unrealized holding gains (losses) on derivative instruments:Changes in fair value of derivatives
    
    
    1,726
    
    
    
    (704
    )
    
    
    1,022Net (gains) or losses reclassified into earnings
    
    
    (1,118
    )
    
    
    456
    
    
    
    (662
    )Net unrealized gains (losses)
    
    
    608
    
    
    
    (248
    )
    
    
    360Other comprehensive loss
    
    ¥
    (79,768
    )
    
    ¥
    17,488
    
    
    ¥
    (62,280
    )
  F-36




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##### Table of Contents



Thousands of U.S. dollarsPretax
    
    
    Tax (expense)
    
    
    Net of taxamount
    
    
    or benefit
    
    
    amount2010:Foreign currency translation adjustments
    
    $
    (12,860
    )
    
    $
    3,140
    
    
    $
    (9,720
    )Net unrealized holding gains (losses) on securities available for sale:Unrealized holding gains or (losses) arising during the year
    
    
    98,108
    
    
    
    (41,323
    )
    
    
    56,785Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    3,613
    
    
    
    (1,473
    )
    
    
    2,140Net unrealized gains (losses)
    
    
    101,721
    
    
    
    (42,796
    )
    
    
    58,925Pension liability adjustmentsUnrealized holding gains or (losses) arising during the year
    
    
    42,258
    
    
    
    (13,161
    )
    
    
    29,097Less: reclassification adjustment for (gains) or losses included in net income
attributable to Komatsu Ltd.
    
    
    30,462
    
    
    
    (6,656
    )
    
    
    23,806Net unrealized gains (losses)
    
    
    72,720
    
    
    
    (19,817
    )
    
    
    52,903Net unrealized holding gains (losses) on derivative instruments:Changes in fair value of derivatives
    
    
    22,806
    
    
    
    (12,236
    )
    
    
    10,570Net (gains) or losses reclassified into earnings
    
    
    (6,677
    )
    
    
    2,709
    
    
    
    (3,968
    )Net unrealized gains (losses)
    
    
    16,129
    
    
    
    (9,527
    )
    
    
    6,602Other comprehensive income
    
    $
    177,710
    
    
    $
    (69,000
    )
    
    $
    108,710
 16. Income Taxes
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Income (loss) from continuing operations before income taxes
and equity in earnings of affiliated companies:Domestic
    
    ¥
    (35,965
    )
    
    ¥
    5,426
    
    
    ¥
    151,878
    
    
    $
    (386,720
    )Foreign
    
    
    100,944
    
    
    
    123,356
    
    
    
    170,332
    
    
    
    1,085,419¥
    64,979
    
    
    ¥
    128,782
    
    
    ¥
    322,210
    
    
    $
    698,699Income taxes:CurrentDomestic
    
    ¥
    5,254
    
    
    ¥
    22,854
    
    
    ¥
    53,954
    
    
    $
    56,495Foreign
    
    
    27,468
    
    
    
    37,657
    
    
    
    50,188
    
    
    
    295,35432,722
    
    
    
    60,511
    
    
    
    104,142
    
    
    
    351,849DeferredDomestic
    
    
    (6,272
    )
    
    
    (17,008
    )
    
    
    7,779
    
    
    
    (67,441
    )Foreign
    
    
    (1,086
    )
    
    
    (1,210
    )
    
    
    3,873
    
    
    
    (11,677
    )(7,358
    )
    
    
    (18,218
    )
    
    
    11,652
    
    
    
    (79,118
    )Total
    
    ¥
    25,364
    
    
    ¥
    42,293
    
    
    ¥
    115,794
    
    
    $
    272,731
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Income from continuing operations
    
    ¥
    25,364
    
    
    ¥
    42,293
    
    
    ¥
    115,794
    
    
    $
    272,731Income from discontinued operations
    
    
    
    
    
    
    
    
    
    
    3,364
    
    
    
    Other comprehensive income (loss):Foreign currency translation adjustments
    
    
    (292
    )
    
    
    (548
    )
    
    
    
    
    
    
    (3,140
    )Net unrealized holding gains (losses) on securities available for sale
    
    
    3,980
    
    
    
    (10,185
    )
    
    
    (15,089
    )
    
    
    42,796Pension liability adjustments
    
    
    1,843
    
    
    
    (3,855
    )
    
    
    (2,647
    )
    
    
    19,817Net unrealized holding gains (losses) on derivative instruments
    
    
    886
    
    
    
    (884
    )
    
    
    248
    
    
    
    9,527Total income taxes
    
    ¥
    31,781
    
    
    ¥
    26,821
    
    
    ¥
    101,670
    
    
    $
    341,731
  F-37




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##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Deferred tax assets:Allowances provided, not yet recognized for tax
    
    ¥
    3,332
    
    
    ¥
    1,587
    
    
    $
    35,828Accrued expenses
    
    
    43,835
    
    
    
    52,054
    
    
    
    471,345Property, plant and equipment
    
    
    13,289
    
    
    
    14,117
    
    
    
    142,892Inventories
    
    
    8,551
    
    
    
    8,902
    
    
    
    91,946Net operating loss carryforwards
    
    
    51,543
    
    
    
    26,618
    
    
    
    554,226Research and development expenses
    
    
    690
    
    
    
    461
    
    
    
    7,419Other
    
    
    31,536
    
    
    
    21,854
    
    
    
    339,097Total gross deferred tax assets
    
    
    152,776
    
    
    
    125,593
    
    
    
    1,642,753Less valuation allowance
    
    
    (49,081
    )
    
    
    (31,420
    )
    
    
    (527,753
    )Total deferred tax assets
    
    ¥
    103,695
    
    
    ¥
    94,173
    
    
    $
    1,115,000Deferred tax liabilities:Unrealized holding gains on securities available for sale
    
    ¥
    7,829
    
    
    ¥
    4,213
    
    
    $
    84,183Deferral of profit from installment sales
    
    
    104
    
    
    
    213
    
    
    
    1,118Property, plant and equipment
    
    
    11,519
    
    
    
    11,807
    
    
    
    123,860Intangible assets
    
    
    17,503
    
    
    
    17,544
    
    
    
    188,204Undistributed earnings of foreign subsidiaries and
affiliated companies accounted for by the equity method
    
    
    3,847
    
    
    
    3,080
    
    
    
    41,366Total deferred tax liabilities
    
    ¥
    40,802
    
    
    ¥
    36,857
    
    
    $
    438,731Net deferred tax assets
    
    ¥
    62,893
    
    
    ¥
    57,316
    
    
    $
    676,269
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Deferred income taxes and other current assets
    
    ¥
    43,390
    
    
    ¥
    37,749
    
    
    $
    466,559Deferred income taxes and other assets
    
    
    36,467
    
    
    
    36,397
    
    
    
    392,118Deferred income taxes and other current liabilities
    
    
    (128
    )
    
    
    (228
    )
    
    
    (1,376
    )Deferred income taxes and other liabilities
    
    
    (16,836
    )
    
    
    (16,602
    )
    
    
    (181,032
    )¥
    62,893
    
    
    ¥
    57,316
    
    
    $
    676,269
     F-38




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##### Table of Contents



2010
    
    
    2009
    
    
    2008Japanese statutory tax rate
    
    
    40.8
    %
    
    
    40.8
    %
    
    
    40.8
    %Increase (decrease) in tax rates resulting from:Increase in valuation allowance
    
    
    25.2
    
    
    
    7.1
    
    
    
    0.8Expenses not deductible for tax purposes
    
    
    6.8
    
    
    
    2.9
    
    
    
    2.0Realization of tax benefits on operating losses of subsidiaries
    
    
    (0.8
    )
    
    
    (1.4
    )
    
    
    (1.5
    )Income of foreign subsidiaries taxed at lower than Japanese normal rate
    
    
    (22.6
    )
    
    
    (11.3
    )
    
    
    (5.1
    )Tax credit for research and development expenses
    
    
    
    
    
    
    (0.7
    )
    
    
    (0.8
    )Realization of loss for investment in a subsidiary
    
    
    (10.2
    )
    
    
    
    
    
    
    Other, net
    
    
    (0.2
    )
    
    
    (4.6
    )
    
    
    (0.3
    )Effective tax rate
    
    
    39.0
    %
    
    
    32.8
    %
    
    
    35.9
    %
  Thousands ofYear ending March 31, 2010
    
    Millions of yen
    
    
    U.S. dollarsWithin 5 years
    
    ¥
    9,476
    
    
    $
    101,8936 to 20 years
    
    
    121,267
    
    
    
    1,303,946Indefinite periods
    
    
    3,055
    
    
    
    32,849Total
    
    ¥
    133,798
    
    
    $
    1,438,688
    F-39




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##### Table of Contents



17. Rent Expenses
  Millions of yen
    
    
    Thousands of U.S. dollarsCapital
    
    
    Operating lease
    
    
    
    
    
    
    Capital
    
    
    Operating leaseYear ending March 31
    
    leases
    
    
    commitments
    
    
    Total
    
    
    leases
    
    
    commitments
    
    
    Total2011
    
    ¥
    23,307
    
    
    ¥
    4,783
    
    
    ¥
    28,090
    
    
    $
    250,613
    
    
    $
    51,430
    
    
    $
    302,0432012
    
    
    28,149
    
    
    
    2,994
    
    
    
    31,143
    
    
    
    302,677
    
    
    
    32,194
    
    
    
    334,8712013
    
    
    14,746
    
    
    
    1,853
    
    
    
    16,599
    
    
    
    158,559
    
    
    
    19,925
    
    
    
    178,4842014
    
    
    7,627
    
    
    
    1,022
    
    
    
    8,649
    
    
    
    82,011
    
    
    
    10,989
    
    
    
    93,0002015
    
    
    1,476
    
    
    
    697
    
    
    
    2,173
    
    
    
    15,871
    
    
    
    7,495
    
    
    
    23,366Thereafter
    
    
    1,264
    
    
    
    2,077
    
    
    
    3,341
    
    
    
    13,591
    
    
    
    22,333
    
    
    
    35,924Total minimum lease payments
    
    ¥
    76,569
    
    
    ¥
    13,426
    
    
    ¥
    89,995
    
    
    $
    823,322
    
    
    $
    144,366
    
    
    $
    967,688Less: amounts representing interest
    
    
    (3,618
    )
    
    
    
    
    
    
    
    
    
    
    (38,903
    )Present value of net minimum capital lease payments
    
    ¥
    72,951
    
    
    
    
    
    
    
    
    
    
    $
    784,419
 18. Net Income attributable to Komatsu Ltd. per Share
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Income from continuing operations attributable to Komatsu Ltd.
    
    ¥
    33,559
    
    
    ¥
    78,797
    
    
    ¥
    203,826
    
    
    $
    360,849Income from discontinued operations attributable to Komatsu Ltd.
    
    
    
    
    
    
    
    
    
    
    4,967
    
    
    
    Net income attributable to Komatsu Ltd.
    
    ¥
    33,559
    
    
    ¥
    78,797
    
    
    ¥
    208,793
    
    
    $
    360,849
 Number of shares2010
    
    
    2009
    
    
    2008Weighted average common shares outstanding, less treasury stock
    
    
    968,013,328
    
    
    
    985,585,385
    
    
    
    994,844,955Dilutive effect of:Stock options
    
    
    449,531
    
    
    
    731,973
    
    
    
    1,335,586Weighted average diluted common shares outstanding
    
    
    968,462,859
    
    
    
    986,317,358
    
    
    
    996,180,541
 Yen
    
    
    U.S. cents2010
    
    
    2009
    
    
    2008
    
    
    2010Income from continuing operations attributable to Komatsu Ltd.:Basic
    
    ¥
    34.67
    
    
    ¥
    79.95
    
    
    ¥
    204.88
    
    
    ¢
    37.28Diluted
    
    
    34.65
    
    
    
    79.89
    
    
    
    204.61
    
    
    
    37.26Income from discontinued operations attributable to Komatsu Ltd.:Basic
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    4.99
    
    
    ¢
    Diluted
    
    
    
    
    
    
    
    
    
    
    4.98
    
    
    
    Net income attributable to Komatsu Ltd.:Basic
    
    ¥
    34.67
    
    
    ¥
    79.95
    
    
    ¥
    209.87
    
    
    ¢
    37.28Diluted
    
    
    34.65
    
    
    
    79.89
    
    
    
    209.59
    
    
    
    37.26
 19. Commitments and Contingent Liabilities
    F-40




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##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Balance at beginning of year
    
    ¥
    28,256
    
    
    ¥
    31,890
    
    
    $
    303,828Addition
    
    
    21,149
    
    
    
    25,288
    
    
    
    227,409Utilization
    
    
    (25,477
    )
    
    
    (26,369
    )
    
    
    (273,946
    )Other
    
    
    (170
    )
    
    
    (2,553
    )
    
    
    (1,829
    )Balance at end of year
    
    ¥
    23,758
    
    
    ¥
    28,256
    
    
    $
    255,462
 20. Derivative Financial Instruments
 Risk Management Policy
     Fair Value Hedges
  Cash Flow Hedges
   F-41




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##### Table of Contents



Undesignated Derivative Instruments
  Notional Principal Amounts of Derivative Financial
Instruments
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Forwards and options:Sale of foreign currencies
    
    ¥
    40,209
    
    
    ¥
    30,868
    
    
    $
    432,355Purchase of foreign
currencies
    
    
    48,809
    
    
    
    48,424
    
    
    
    524,828Option contracts (purchased)
    
    
    949
    
    
    
    1,011
    
    
    
    10,204Interest rate swap, cross-
currency swap and interest
rate cap agreements
    
    
    184,487
    
    
    
    226,754
    
    
    
    1,983,731
  Millions of yen2010Derivative Assets
    
    
    Derivative LiabilitiesDerivative instruments designated
    
    Location on the consolidated
    
    Estimated
    
    
    Location on the consolidated
    
    Estimatedas hedging instruments
    
    Balance Sheets
    
    fair value
    
    
    Balance Sheets
    
    fair valueForwards contracts
    
    Deferred income taxes and other current assets
    
    ¥
    73
    
    
    Deferred income taxes and other current liabilities
    
    ¥
    830Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    354
    
    
    Deferred income taxes and other current liabilities
    
    
    734Deferred income taxes and other assets
    
    
    99
    
    
    Deferred income taxes and other liabilities
    
    
    Total
    
    
    
    ¥
    526
    
    
    
    
    ¥
    1,564
 Derivative Assets
    
    
    Derivative LiabilitiesLocation on the consolidated
    
    Estimated
    
    
    Location on the consolidated
    
    EstimatedUndesignated derivative instruments
    
    Balance Sheets
    
    fair value
    
    
    Balance Sheets
    
    fair valueForwards contracts
    
    Deferred income taxes and other current assets
    
    ¥
    90
    
    
    Deferred income taxes and other current liabilities
    
    ¥
    1,248Option contracts
    
    Deferred income taxes and other current assets
    
    
    18
    
    
    Deferred income taxes and other current liabilities
    
    
    Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    1,730
    
    
    Deferred income taxes and other current liabilities
    
    
    915Deferred income taxes and other assets
    
    
    6,989
    
    
    Deferred income taxes and other liabilities
    
    
    901Total
    
    
    
    ¥
    8,827
    
    
    
    
    ¥
    3,064Total Derivative Instruments
    
    
    
    ¥
    9,353
    
    
    
    
    ¥
    4,628
  F-42




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##### Table of Contents



Millions of yen2009Derivative Assets
    
    
    Derivative LiabilitiesDerivative instruments designated
    
    Location on the consolidated
    
    Estimated
    
    
    Location on the consolidated
    
    Estimatedas hedging instruments
    
    Balance Sheets
    
    fair value
    
    
    Balance Sheets
    
    fair valueForwards contracts
    
    Deferred income taxes and other current assets
    
    ¥
    278
    
    
    Deferred income taxes and other current liabilities
    
    ¥
    430Deferred income taxes and other assets
    
    
    8
    
    
    Deferred income taxes and other liabilities
    
    
    Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    2,351
    
    
    Deferred income taxes and other current liabilities
    
    
    Deferred income taxes and other assets
    
    
    5,709
    
    
    Deferred income taxes and other liabilities
    
    
    Total
    
    
    
    ¥
    8,346
    
    
    
    
    ¥
    430Derivative Assets
    
    
    Derivative LiabilitiesLocation on the consolidated
    
    Estimated
    
    
    Location on the consolidated
    
    EstimatedUndesignated derivative instruments
    
    Balance Sheets
    
    fair value
    
    
    Balance Sheets
    
    fair valueForwards contracts
    
    Deferred income taxes and other current assets
    
    ¥
    1,016
    
    
    Deferred income taxes and other current liabilities
    
    ¥
    1,387Option contracts
    
    Deferred income taxes and other current assets
    
    
    19
    
    
    Deferred income taxes and other current liabilities
    
    
    Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    766
    
    
    Deferred income taxes and other current liabilities
    
    
    980Deferred income taxes and other assets
    
    
    1,704
    
    
    Deferred income taxes and other liabilities
    
    
    3,058Total
    
    
    
    ¥
    3,505
    
    
    
    
    ¥
    5,425Total Derivative Instruments
    
    
    
    ¥
    11,851
    
    
    
    
    ¥
    5,855Thousands of U.S. dollars2010Derivative Assets
    
    
    Derivative LiabilitiesDerivative instruments designated
    
    Location on the consolidated
    
    Estimated
    
    
    Location on the consolidated
    
    Estimatedas hedging instruments
    
    Balance Sheets
    
    fair value
    
    
    Balance Sheets
    
    fair valueForwards contracts
    
    Deferred income taxes and other current assets
    
    $
    785
    
    
    Deferred income taxes and other current liabilities
    
    $
    8,925Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    3,806
    
    
    Deferred income taxes and other current liabilities
    
    
    7,892Deferred income taxes and other assets
    
    
    1,065
    
    
    Deferred income taxes and other liabilities
    
    
    Total
    
    
    
    $
    5,656
    
    
    
    
    $
    16,817Derivative Assets
    
    
    Derivative LiabilitiesLocation on the consolidated
    
    Estimated
    
    
    Location on the consolidated
    
    EstimatedUndesignated derivative instruments
    
    Balance Sheets
    
    fair value
    
    
    Balance Sheets
    
    fair valueForwards contracts
    
    Deferred income taxes and other current assets
    
    $
    968
    
    
    Deferred income taxes and other current liabilities
    
    $
    13,419Option contracts
    
    Deferred income taxes and other current assets
    
    
    194
    
    
    Deferred income taxes and other current liabilities
    
    
    Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    18,602
    
    
    Deferred income taxes and other current liabilities
    
    
    9,839Deferred income taxes and other assets
    
    
    75,150
    
    
    Deferred income taxes and other liabilities
    
    
    9,688Total
    
    
    
    $
    94,914
    
    
    
    
    $
    32,946Total Derivative Instruments
    
    
    
    $
    100,570
    
    
    
    
    $
    49,763
  F-43




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##### Table of Contents



Derivative instruments designated as fair value hedging relationships
 Millions of yen2010Location of
    
    Amount of
    
    
    Location of
    
    Amount ofgains (losses)
    
    gains (losses)
    
    
    gains (losses)
    
    gains (losses)recognized in income
    
    recognized in income
    
    
    recognized in income
    
    recognized in incomeon derivatives
    
    on derivatives
    
    
    on hedged items
    
    on hedged itemsInterest rate swaps, cross-currency swap and interest rate cap agreements
    
    Other income (expenses), net:
Other, net
    
    ¥
    (270
    )
    
    Other income (expenses), net: 
Other, net
    
    ¥
    355Total
    
    
    
    ¥
    (270
    )
    
    
    
    ¥
    355Millions of yen2009Location of
    
    Amount of
    
    
    Location of
    
    Amount ofgains (losses)
    
    gains (losses)
    
    
    gains (losses)
    
    gains (losses)recognized in income
    
    recognized in income
    
    
    recognized in income
    
    recognized in incomeon derivatives
    
    on derivatives
    
    
    on hedged items
    
    on hedged itemsInterest rate swaps, cross-currency swap and interest rate cap agreements
    
    Other income (expenses), net: 
Other, net
    
    ¥
    7,910
    
    
    Other income (expenses), net: 
Other, net
    
    ¥
    (6,958
    )Total
    
    
    
    ¥
    7,910
    
    
    
    
    ¥
    (6,958
    )Thousands of U.S. dollars2010Location of
    
    Amount of
    
    
    Location of
    
    Amount ofgains (losses)
    
    gains (losses)
    
    
    gains (losses)
    
    gains (losses)recognized in income
    
    recognized in income
    
    
    recognized in income
    
    recognized in incomeon derivatives
    
    on derivatives
    
    
    on hedged items
    
    on hedged itemsInterest rate swaps, cross-currency swap
and interest rate cap agreements
    
    Other income (expenses), net: 
Other, net
    
    $
    (2,903
    )
    
    Other income (expenses), net: 
Other, net
    
    $
    3,817Total
    
    
    
    $
    (2,903
    )
    
    
    
    $
    3,817
 Derivative instruments designated as cash flow hedging relationships
 Millions of yen2010Ineffective portion and amountEffective portion
    
    
    excluded from effectiveness testingAmount of
    
    
    Location of
    
    Amount of
    
    
    Location of
    
    
    Amount ofgains (losses)
    
    
    gains (losses) reclassified
    
    gains (losses) reclassified
    
    
    gains (losses)
    
    
    gains (losses)recognized in
    
    
    from accumulated
    
    from accumulated
    
    
    recognized in income
    
    
    recognized in incomeOCI on derivatives
    
    
    OCI into income
    
    OCI into income
    
    
    on derivatives
    
    
    on derivativesForwards contracts
    
    ¥
    363
    
    
    Other income (expenses), net: 
Other, net
    
    ¥
    532
    
    
    
    
    
    
    ¥
    Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    
    1,758
    
    
    Other income (expenses), net: 
Other, net
    
    
    89
    
    
    
    
    
    
    
    Total
    
    ¥
    2,121
    
    
    
    
    ¥
    621
    
    
    
    
    
    
    ¥
    
  F-44




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##### Table of Contents



Millions of yen2009Ineffective portion and amountEffective portion
    
    
    excluded from effectiveness testingAmount of
    
    
    Location of
    
    Amount of
    
    
    Location of
    
    
    Amount ofgains (losses)
    
    
    gains (losses) reclassified
    
    gains (losses) reclassified
    
    
    gains (losses)
    
    
    gains (losses)recognized in
    
    
    from accumulated
    
    from accumulated
    
    
    recognized in income
    
    
    recognized in incomeOCI on derivatives
    
    
    OCI into income
    
    OCI into income
    
    
    on derivatives
    
    
    on derivativesForwards contracts
    
    ¥
    790
    
    
    Other income (expenses), net: 
Other, net
    
    ¥
    2,892
    
    
    
    
    
    
    ¥
    Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    
    65
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    855
    
    
    
    
    ¥
    2,892
    
    
    
    
    
    
    ¥
    Thousands of U.S. dollars2010Ineffective portion and amountEffective portion
    
    
    excluded from effectiveness testingAmount of
    
    
    Location of
    
    Amount of
    
    
    Location of
    
    
    Amount ofgains (losses)
    
    
    gains (losses) reclassified
    
    gains (losses) reclassified
    
    
    gains (losses)
    
    
    gains (losses)recognized in
    
    
    from accumulated
    
    from accumulated
    
    
    recognized in income
    
    
    recognized in incomeOCI on derivatives
    
    
    OCI into income
    
    OCI into income
    
    
    on derivatives
    
    
    on derivativesForwards contracts
    
    $
    3,903
    
    
    Other income (expenses), net: 
Other, net
    
    $
    5,720
    
    
    
    
    
    
    $
    Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    
    18,903
    
    
    Other income (expenses), net: 
Other, net
    
    
    957
    
    
    
    
    
    
    
    Total
    
    $
    22,806
    
    
    
    
    $
    6,677
    
    
    
    
    
    
    $
    
 *
    
    OCI stands for other comprehensive income (loss). Derivative instruments not designated as hedging instruments relationships
 Millions of yen2010Location of gains (losses) recognized
    
    Amount of gains (losses) recognizedin income on derivatives
    
    in income on derivativesForwards contracts
    
    Other income (expenses), net: 
Other, net
    
    ¥
    (972
    )Option contracts
    
    Other income (expenses), net: 
Other, net
    
    
    3Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Cost of sales
    
    
    (580
    )Other income (expenses), net: 
Other, net
    
    
    1,900Total
    
    
    
    ¥
    351
 Millions of yen2009Location of gains (losses) recognized
    
    Amount of gains (losses) recognizedin income on derivatives
    
    in income on derivativesForwards contracts
    
    Other income (expenses), net: 
Other, net
    
    ¥
    846Option contracts
    
    Other income (expenses), net: 
Other, net
    
    
    (7
    )Interest rate swaps, cross-currency swap and interest rate cap agreements
    
    Cost of sales
    
    
    94Other income (expenses), net: 
Other, net
    
    
    (2,771
    )Total
    
    
    
    ¥
    (1,838
    )
  F-45




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##### Table of Contents



Thousands of U.S. dollars2010Location of gains (losses) recognized
    
    Amount of gains (losses) recognizedin income on derivatives
    
    in income on derivativesForwards contracts
    
    Other income (expenses), net: Other, net
    
    $
    (10,452
    )Option contracts
    
    Other income (expenses), net: Other, net
    
    
    32Interest
rate swaps, cross-currency swap and interest rate cap agreements
    
    Cost of sales
    
    
    (6,236
    )Other income (expenses), net: Other, net
    
    
    20,430Total
    
    
    
    $
    3,774
 21. The Fair Value of Financial Instruments
 (1) Cash and Cash Equivalents, Time Deposits, Trade Notes
and Accounts Receivable, Other Current Assets, Short-Term
Debt, Trade Notes, Bills and Accounts Payables, and Other
Current Liabilities
  (2) Investment
Securities, Marketable Equity Securities
  (3) Long-Term
Trade Receivables, Including Current Portion
  (4) Long-Term
Debt, Including Current Portion
  (5) Derivatives
   Millions of yen
    
    
    Thousands of U.S. dollars2010
    
    
    2009
    
    
    2010Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    Estimatedamount
    
    
    fair value
    
    
    amount
    
    
    fair value
    
    
    amount
    
    
    fair valueInvestment securities, marketable equity securities
    
    ¥
    47,178
    
    
    ¥
    47,178
    
    
    ¥
    37,066
    
    
    ¥
    37,066
    
    
    $
    507,290
    
    
    $
    507,290Long-term debt, including current portion
    
    
    462,941
    
    
    
    460,916
    
    
    
    379,768
    
    
    
    376,108
    
    
    
    4,977,860
    
    
    
    4,956,086Derivatives:Forwards and optionsAssets
    
    
    181
    
    
    
    181
    
    
    
    1,321
    
    
    
    1,321
    
    
    
    1,947
    
    
    
    1,947Liabilities
    
    
    2,078
    
    
    
    2,078
    
    
    
    1,817
    
    
    
    1,817
    
    
    
    22,344
    
    
    
    22,344Interest rate swap, cross-currency swap and
interest rate cap agreementsAssets
    
    
    9,172
    
    
    
    9,172
    
    
    
    10,530
    
    
    
    10,530
    
    
    
    98,623
    
    
    
    98,623Liabilities
    
    
    2,550
    
    
    
    2,550
    
    
    
    4,038
    
    
    
    4,038
    
    
    
    27,419
    
    
    
    27,419
 Limitations
   F-46




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##### Table of Contents



22. Fair value measurements
  Level 1
    
    
    
    Quoted prices in active markets for identical assets or liabilitiesLevel 2
    
    
    
    Inputs other than quoted prices included within Level 1 that are observable for the
assets or liabilities, either directly or indirectlyLevel 3
    
    
    
    Unobservable inputs for the assets or liabilities
 Assets and liabilities that are measured at fair value on a recurring basis
  Millions of yenAt March 31, 2010
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalAssetsInvestment securities available for saleManufacturing industry
    
    ¥
    26,147
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    26,147Financial service industry
    
    
    18,935
    
    
    
    
    
    
    
    
    
    
    
    18,935Other
    
    
    2,096
    
    
    
    
    
    
    
    
    
    
    
    2,096DerivativesForward contracts
    
    
    
    
    
    
    163
    
    
    
    
    
    
    
    163Option contracts
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    18Interest rate swaps, cross currency swap
and interest rate cap agreements
    
    
    
    
    
    
    9,172
    
    
    
    
    
    
    
    9,172Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Assets
    
    ¥
    47,178
    
    
    ¥
    9,353
    
    
    ¥
    
    
    
    ¥
    56,531LiabilitiesDerivativesForward contracts
    
    ¥
    
    
    
    ¥
    2,078
    
    
    ¥
    
    
    
    ¥
    2,078Interest rate swaps, cross currency swap
and interest rate cap agreements
    
    
    
    
    
    
    2,550
    
    
    
    
    
    
    
    2,550Other
    
    
    
    
    
    
    22,839
    
    
    
    2,280
    
    
    
    25,119Total Liabilities
    
    ¥
    
    
    
    ¥
    27,467
    
    
    ¥
    2,280
    
    
    ¥
    29,747
 Millions of yenAt March 31, 2009
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalAssetsInvestment securities available for sale
    
    ¥
    37,066
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    37,066Derivatives
    
    
    
    
    
    
    11,851
    
    
    
    
    
    
    
    11,851Other
    
    
    
    
    
    
    
    
    
    
    919
    
    
    
    919Total Assets
    
    ¥
    37,066
    
    
    ¥
    11,851
    
    
    ¥
    919
    
    
    ¥
    49,836LiabilitiesDerivatives
    
    ¥
    
    
    
    ¥
    5,855
    
    
    ¥
    
    
    
    ¥
    5,855Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Liabilities
    
    ¥
    
    
    
    ¥
    5,855
    
    
    ¥
    
    
    
    ¥
    5,855
  F-47




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##### Table of Contents



Thousands of U.S. dollarsLevel 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalAssetsInvestment securities available for saleManufacturing industry
    
    $
    281,150
    
    
    $
    
    
    
    $
    
    
    
    $
    281,150Financial service industry
    
    
    203,602
    
    
    
    
    
    
    
    
    
    
    
    203,602Other
    
    
    22,538
    
    
    
    
    
    
    
    
    
    
    
    22,538DerivativesForward contracts
    
    
    
    
    
    
    1,753
    
    
    
    
    
    
    
    1,753Option contracts
    
    
    
    
    
    
    194
    
    
    
    
    
    
    
    194Interest rate swaps, cross currency swap
and interest rate cap agreements
    
    
    
    
    
    
    98,623
    
    
    
    
    
    
    
    98,623Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Assets
    
    $
    507,290
    
    
    $
    100,570
    
    
    $
    
    
    
    $
    607,860LiabilitiesDerivativesForward contracts
    
    $
    
    
    
    $
    22,344
    
    
    $
    
    
    
    $
    22,344Interest rate swaps, cross currency swap
and interest rate cap agreements
    
    
    
    
    
    
    27,419
    
    
    
    
    
    
    
    27,419Other
    
    
    
    
    
    
    245,581
    
    
    
    24,516
    
    
    
    270,097Total Liabilities
    
    $
    
    
    
    $
    295,344
    
    
    $
    24,516
    
    
    $
    319,860
 Investment securities available for sale
  Derivatives
  Other
   Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Balance at beginning of year
    
    ¥
    919
    
    
    ¥
    3,015
    
    
    $
    9,882Total gains or losses (realized/unrealized)
    
    
    1,543
    
    
    
    355
    
    
    
    16,591Included in earnings
    
    
    1,605
    
    
    
    349
    
    
    
    17,258Included in other comprehensive income (loss)
    
    
    (62
    )
    
    
    6
    
    
    
    (667
    )Purchases, issuances and settlements
    
    
    (4,742
    )
    
    
    (2,451
    )
    
    
    (50,989
    )Balance at end of year
    
    ¥
    (2,280
    )
    
    ¥
    919
    
    
    $
    (24,516
    )
  Assets and liabilities that are measured at fair value on a non-recurring basis
   F-48




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##### Table of Contents



23. Business Segment Information
    Thousands ofMillions of yen
    
    
    U.S. dollarsOperating segments:
    
    2010
    
    
    2009
    
    
    2008
    
    
    2010Net sales:Construction, Mining and Utility EquipmentCustomers
    
    ¥
    1,268,575
    
    
    ¥
    1,744,733
    
    
    ¥
    2,048,711
    
    
    $
    13,640,591Intersegment
    
    
    2,690
    
    
    
    4,653
    
    
    
    6,127
    
    
    
    28,925Total
    
    
    1,271,265
    
    
    
    1,749,386
    
    
    
    2,054,838
    
    
    
    13,669,516Industrial Machinery and OthersCustomers
    
    
    162,989
    
    
    
    277,010
    
    
    
    194,312
    
    
    
    1,752,570Intersegment
    
    
    15,619
    
    
    
    26,389
    
    
    
    23,376
    
    
    
    167,946Total
    
    
    178,608
    
    
    
    303,399
    
    
    
    217,688
    
    
    
    1,920,516Elimination
    
    
    (18,309
    )
    
    
    (31,042
    )
    
    
    (29,503
    )
    
    
    (196,871
    )Consolidated
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    ¥
    2,243,023
    
    
    $
    15,393,161Segment profit:Construction, Mining and Utility Equipment
    
    ¥
    83,061
    
    
    ¥
    180,455
    
    
    ¥
    317,895
    
    
    $
    893,129Industrial Machinery and Others
    
    
    2,998
    
    
    
    12,891
    
    
    
    19,947
    
    
    
    32,237Total
    
    
    86,059
    
    
    
    193,346
    
    
    
    337,842
    
    
    
    925,366Corporate expenses and elimination
    
    
    (5,340
    )
    
    
    (4,688
    )
    
    
    (3,256
    )
    
    
    (57,420
    )Consolidated segment profit
    
    
    80,719
    
    
    
    188,658
    
    
    
    334,586
    
    
    
    867,946Impairment loss on long-lived assets
    
    
    3,332
    
    
    
    16,414
    
    
    
    2,447
    
    
    
    35,828Impairment loss on goodwill
    
    
    
    
    
    
    2,003
    
    
    
    2,870
    
    
    
    Other operating income (expenses)
    
    
    (10,352
    )
    
    
    (18,293
    )
    
    
    3,581
    
    
    
    (111,312
    )Operating income
    
    
    67,035
    
    
    
    151,948
    
    
    
    332,850
    
    
    
    720,806Interest and dividend income
    
    
    6,158
    
    
    
    8,621
    
    
    
    10,265
    
    
    
    66,215Interest expense
    
    
    (8,502
    )
    
    
    (14,576
    )
    
    
    (16,699
    )
    
    
    (91,419
    )Other, net
    
    
    288
    
    
    
    (17,211
    )
    
    
    (4,206
    )
    
    
    3,097Consolidated income from continuing operations before income taxes
and equity in earnings of affiliated companies
    
    ¥
    64,979
    
    
    ¥
    128,782
    
    
    ¥
    322,210
    
    
    $
    698,699Segment assets:Construction, Mining and Utility Equipment
    
    ¥
    1,682,542
    
    
    ¥
    1,639,720
    
    
    ¥
    1,738,481
    
    
    $
    18,091,850Industrial Machinery and Others
    
    
    207,551
    
    
    
    254,200
    
    
    
    283,427
    
    
    
    2,231,731Corporate assets and elimination
    
    
    68,962
    
    
    
    75,139
    
    
    
    83,238
    
    
    
    741,527Consolidated
    
    ¥
    1,959,055
    
    
    ¥
    1,969,059
    
    
    ¥
    2,105,146
    
    
    $
    21,065,108Depreciation and amortization:Construction, Mining and Utility Equipment
    
    ¥
    82,508
    
    
    ¥
    87,260
    
    
    ¥
    69,738
    
    
    $
    887,183Industrial Machinery and Others
    
    
    7,707
    
    
    
    9,981
    
    
    
    4,890
    
    
    
    82,871Consolidated
    
    ¥
    90,215
    
    
    ¥
    97,241
    
    
    ¥
    74,628
    
    
    $
    970,054Capital investment:Construction, Mining and Utility Equipment
    
    ¥
    92,979
    
    
    ¥
    152,803
    
    
    ¥
    141,184
    
    
    $
    999,774Industrial Machinery and Others
    
    
    3,212
    
    
    
    9,709
    
    
    
    4,546
    
    
    
    34,538Consolidated
    
    ¥
    96,191
    
    
    ¥
    162,512
    
    
    ¥
    145,730
    
    
    $
    1,034,312
  F-49




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##### Table of Contents



a)
    
    Construction, Mining and Utility Equipment Excavating equipment, loading equipment, grading
and roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines,
recycling equipment, industrial vehicles, other equipment, engines and components, casting
products and logistics
 b)
    
    Industrial Machinery and Others Metal forging and stamping presses, sheet-metal machines,
machine tools, defense systems, temperature-control equipment and others
     Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Impairment loss on long-lived assetsConstruction, Mining and Utility Equipment
    
    ¥
    3,063
    
    
    ¥
    13,998
    
    
    ¥
    1,282
    
    
    $
    32,936Industrial Machinery and Others
    
    
    269
    
    
    
    2,416
    
    
    
    1,165
    
    
    
    2,892Total
    
    ¥
    3,332
    
    
    ¥
    16,414
    
    
    ¥
    2,447
    
    
    $
    35,828Impairment loss on goodwillConstruction, Mining and Utility Equipment
    
    ¥
    
    
    
    ¥
    2,003
    
    
    ¥
    2,870
    
    
    $
    Industrial Machinery and Others
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    
    
    
    ¥
    2,003
    
    
    ¥
    2,870
    
    
    $
    
 Geographic information:
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Net sales to customers:Japan
    
    ¥
    323,813
    
    
    ¥
    452,172
    
    
    ¥
    505,185
    
    
    $
    3,481,860The Americas
    
    
    323,984
    
    
    
    503,450
    
    
    
    541,160
    
    
    
    3,483,699Europe and CIS
    
    
    127,377
    
    
    
    284,029
    
    
    
    427,679
    
    
    
    1,369,645China
    
    
    270,870
    
    
    
    236,226
    
    
    
    189,902
    
    
    
    2,912,581Asia (excluding Japan, China) and Oceania
    
    
    299,864
    
    
    
    335,574
    
    
    
    348,462
    
    
    
    3,224,344Middle East and Africa
    
    
    85,656
    
    
    
    210,292
    
    
    
    230,635
    
    
    
    921,032Consolidated net sales
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    ¥
    2,243,023
    
    
    $
    15,393,161
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Net sales to customers:Japan
    
    ¥
    498,568
    
    
    ¥
    831,569
    
    
    ¥
    813,198
    
    
    $
    5,360,946U.S.A.
    
    
    311,170
    
    
    
    469,047
    
    
    
    526,821
    
    
    
    3,345,914Europe and CIS
    
    
    141,510
    
    
    
    269,139
    
    
    
    420,778
    
    
    
    1,521,613Others
    
    
    480,316
    
    
    
    451,988
    
    
    
    482,226
    
    
    
    5,164,688Total
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    ¥
    2,243,023
    
    
    $
    15,393,161Property, plant and equipment:Japan
    
    ¥
    380,592
    
    
    ¥
    400,554
    
    
    ¥
    363,646
    
    
    $
    4,092,387U.S.A.
    
    
    62,637
    
    
    
    68,170
    
    
    
    65,225
    
    
    
    673,516Europe and CIS
    
    
    35,811
    
    
    
    28,207
    
    
    
    36,664
    
    
    
    385,065Others
    
    
    46,060
    
    
    
    28,531
    
    
    
    25,611
    
    
    
    495,269Total
    
    ¥
    525,100
    
    
    ¥
    525,462
    
    
    ¥
    491,146
    
    
    $
    5,646,237
  F-50




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##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Net sales:JapanCustomers
    
    ¥
    498,568
    
    
    ¥
    831,569
    
    
    ¥
    813,198
    
    
    $
    5,360,946Intersegment
    
    
    218,151
    
    
    
    380,880
    
    
    
    479,116
    
    
    
    2,345,710Total
    
    
    716,719
    
    
    
    1,212,449
    
    
    
    1,292,314
    
    
    
    7,706,656The AmericasCustomers
    
    
    311,170
    
    
    
    469,047
    
    
    
    526,821
    
    
    
    3,345,914Intersegment
    
    
    36,547
    
    
    
    42,774
    
    
    
    40,422
    
    
    
    392,978Total
    
    
    347,717
    
    
    
    511,821
    
    
    
    567,243
    
    
    
    3,738,892Europe and CISCustomers
    
    
    141,510
    
    
    
    269,139
    
    
    
    420,778
    
    
    
    1,521,613Intersegment
    
    
    21,100
    
    
    
    25,259
    
    
    
    31,444
    
    
    
    226,882Total
    
    
    162,610
    
    
    
    294,398
    
    
    
    452,222
    
    
    
    1,748,495OthersCustomers
    
    
    480,316
    
    
    
    451,988
    
    
    
    482,226
    
    
    
    5,164,688Intersegment
    
    
    9,940
    
    
    
    29,262
    
    
    
    35,661
    
    
    
    106,882Total
    
    
    490,256
    
    
    
    481,250
    
    
    
    517,887
    
    
    
    5,271,570Elimination
    
    
    (285,738
    )
    
    
    (478,175
    )
    
    
    (586,643
    )
    
    
    (3,072,452
    )Consolidated
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    ¥
    2,243,023
    
    
    $
    15,393,161Segment profit (loss):Japan
    
    ¥
    (19,783
    )
    
    ¥
    37,876
    
    
    ¥
    173,063
    
    
    $
    (212,721
    )The Americas
    
    
    33,982
    
    
    
    52,133
    
    
    
    56,667
    
    
    
    365,398Europe and CIS
    
    
    10,460
    
    
    
    22,279
    
    
    
    44,088
    
    
    
    112,473Others
    
    
    60,151
    
    
    
    61,008
    
    
    
    68,204
    
    
    
    646,785Corporate and elimination
    
    
    (4,091
    )
    
    
    15,362
    
    
    
    (7,436
    )
    
    
    (43,989
    )Consolidated
    
    ¥
    80,719
    
    
    ¥
    188,658
    
    
    ¥
    334,586
    
    
    $
    867,946Segment assets:Japan
    
    ¥
    1,129,391
    
    
    ¥
    1,194,694
    
    
    ¥
    1,282,182
    
    
    $
    12,143,989The Americas
    
    
    417,423
    
    
    
    426,772
    
    
    
    441,499
    
    
    
    4,488,420Europe and CIS
    
    
    196,469
    
    
    
    206,955
    
    
    
    290,008
    
    
    
    2,112,570Others
    
    
    482,424
    
    
    
    350,822
    
    
    
    328,741
    
    
    
    5,187,355Corporate assets and elimination
    
    
    (266,652
    )
    
    
    (210,184
    )
    
    
    (237,284
    )
    
    
    (2,867,226
    )Consolidated
    
    ¥
    1,959,055
    
    
    ¥
    1,969,059
    
    
    ¥
    2,105,146
    
    
    $
    21,065,108Overseas sales:The Americas
    
    ¥
    323,984
    
    
    ¥
    503,450
    
    
    ¥
    541,160
    
    
    $
    3,483,699Europe and CIS
    
    
    127,377
    
    
    
    284,029
    
    
    
    427,679
    
    
    
    1,369,645Others
    
    
    656,390
    
    
    
    782,092
    
    
    
    768,999
    
    
    
    7,057,957Total
    
    ¥
    1,107,751
    
    
    ¥
    1,569,571
    
    
    ¥
    1,737,838
    
    
    $
    11,911,301
   F-51




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##### Table of Contents



24. Supplementary Information to Balance Sheets
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Prepaid expenses
    
    ¥
    3,804
    
    
    ¥
    4,253
    
    
    $
    40,904Short-term loans receivable:Affiliated companies
    
    
    2,222
    
    
    
    2,994
    
    
    
    23,892Other
    
    
    914
    
    
    
    766
    
    
    
    9,828Total
    
    ¥
    3,136
    
    
    ¥
    3,760
    
    
    $
    33,720Deferred income taxes
    
    
    43,390
    
    
    
    37,749
    
    
    
    466,559Other
    
    
    62,121
    
    
    
    85,612
    
    
    
    667,968Total
    
    ¥
    112,451
    
    
    ¥
    131,374
    
    
    $
    1,209,151
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2010Accrued expenses
    
    ¥
    82,449
    
    
    ¥
    81,133
    
    
    $
    886,548Deferred income taxes
    
    
    128
    
    
    
    228
    
    
    
    1,376Other
    
    
    100,747
    
    
    
    117,984
    
    
    
    1,083,302Total
    
    ¥
    183,324
    
    
    ¥
    199,345
    
    
    $
    1,971,226
 25. Supplementary Information to Statements of Income
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Research and development expenses
    
    ¥
    46,449
    
    
    ¥
    53,736
    
    
    ¥
    49,673
    
    
    $
    499,452Advertising costs
    
    
    2,417
    
    
    
    4,678
    
    
    
    4,410
    
    
    
    25,989
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Shipping and handling costs
    
    ¥
    25,697
    
    
    ¥
    46,264
    
    
    ¥
    51,827
    
    
    $
    276,312
   F-52




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##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Gain on sale of property
    
    ¥
    1,036
    
    
    ¥
    630
    
    
    ¥
    3,169
    
    
    $
    11,140Loss on disposal or sale of fixed assets
    
    
    (2,907
    )
    
    
    (5,922
    )
    
    
    (3,313
    )
    
    
    (31,258
    )Other*
    
    
    (8,481
    )
    
    
    (13,001
    )
    
    
    3,725
    
    
    
    (91,194
    )Total
    
    ¥
    (10,352
    )
    
    ¥
    (18,293
    )
    
    ¥
    3,581
    
    
    $
    (111,312
    )
 *
    
    For the fiscal year ended March 31, 2010 and 2009, the Company and certain subsidiaries
recognized expenses associated with structural reforms of production and sales operations. Out
of the expenses, reorganization costs of ¥8,883 million ($95,516 thousand) and 13,926 million
such as wind down and relocation costs related to the integration of facilities were included
in other, except the expenses included in impairment loss on long-lived assets and impairment
loss on goodwill of the consolidated statements of income.
  Thousands ofMillions of yen
    
    
    U.S. dollars2010
    
    
    2009
    
    
    2008
    
    
    2010Interest income-Installment receivables
    
    ¥
    1,206
    
    
    ¥
    1,843
    
    
    ¥
    2,107
    
    
    $
    12,968Other
    
    
    3,785
    
    
    
    5,242
    
    
    
    6,659
    
    
    
    40,699Dividends
    
    
    1,167
    
    
    
    1,536
    
    
    
    1,499
    
    
    
    12,548Interest expense
    
    
    (8,502
    )
    
    
    (14,576
    )
    
    
    (16,699
    )
    
    
    (91,419
    )Net gain (loss) from sale of investment securities
    
    
    679
    
    
    
    (3,543
    )
    
    
    (289
    )
    
    
    7,301Exchange gain (loss), net
    
    
    1,066
    
    
    
    (11,802
    )
    
    
    (3,467
    )
    
    
    11,462Other
    
    
    (1,457
    )
    
    
    (1,866
    )
    
    
    (450
    )
    
    
    (15,666
    )Total
    
    ¥
    (2,056
    )
    
    ¥
    (23,166
    )
    
    ¥
    (10,640
    )
    
    $
    (22,107
    )
 26. Valuation and Qualifying Accounts
  Thousands ofMillions of yen
    
    
    U.S. dollarsAllowance for doubtful receivables
    
    2010
    
    
    2009
    
    
    2008
    
    
    2010Balance at beginning of fiscal period
    
    ¥
    15,330
    
    
    ¥
    11,470
    
    
    ¥
    11,808
    
    
    $
    164,839AdditionsCharged to costs and expenses
    
    
    7,457
    
    
    
    7,091
    
    
    
    3,003
    
    
    
    80,183Charged to other accounts
    
    
    957
    
    
    
    23
    
    
    
    208
    
    
    
    10,290Deductions
    
    
    8,803
    
    
    
    3,254
    
    
    
    3,549
    
    
    
    94,656Balance at end of fiscal period
    
    ¥
    14,941
    
    
    ¥
    15,330
    
    
    ¥
    11,470
    
    
    $
    160,656
  Thousands ofMillions of yen
    
    
    U.S. dollarsValuation allowance for deferred tax assets
    
    2010
    
    
    2009
    
    
    2008
    
    
    2010Balance at beginning of fiscal period
    
    ¥
    31,420
    
    
    ¥
    22,435
    
    
    ¥
    30,879
    
    
    $
    337,849AdditionsCharged to costs and expenses
    
    
    21,784
    
    
    
    19,784
    
    
    
    2,743
    
    
    
    234,237Charged to other accounts
    
    
    8
    
    
    
    587
    
    
    
    945
    
    
    
    86Deductions
    
    
    4,131
    
    
    
    11,386
    
    
    
    12,132
    
    
    
    44,419Balance at end of fiscal period
    
    ¥
    49,081
    
    
    ¥
    31,420
    
    
    ¥
    22,435
    
    
    $
    527,753
   F-53




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##### Table of Contents



EXHIBIT INDEX
 SubsequentlyExhibit number
    
    Title
    
    Numbered PageExhibit (1.1)
    
    Articles of Incorporation of Komatsu Ltd., as
amended (Translation)
    
    
    1Exhibit (1.2)
    
    Regulations of The Board of Directors
(Translation)
    
    
    7Exhibit (2)
    
    Share Handling Regulations, as amended
(Translation)
    
    
    10Exhibit (8)
    
    Significant subsidiaries of Komatsu Ltd.
including additional subsidiaries that
management has deemed to be significant, as of
March 31, 2010 (See Organizational Structure
in Item 4. Information on the Company)Exhibit (11)
    
    Code of Ethics for Senior Officers (Translation)
    
    
    16Exhibit (12) a.
    
    Certification of the CEO of the Company
required pursuant to
Rule 15d-14(a)
    
    
    20Exhibit (12) b.
    
    Certification of the CFO of the Company
required pursuant to
Rule 15d-14(a)
    
    
    21Exhibit (13) a.
    
    Certification of the CEO of the Company
required pursuant to
Rule 15d-14(b) and Section 1350 of Chapter 63
of Title 18 of
the United States Code
    
    
    22Exhibit (13) b.
    
    Certification of the CFO of the Company
required pursuant to
Rule 15d-14(b) and Section 1350 of Chapter 63
of Title 18 of
the United States Code
    
    
    23