##### Table of Contents



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, 2011
 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.
  (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*
 *
    
    21,937,535 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
  þ o
  Large accelerated filer þ   
    Accelerated filer o
    Non-accelerated filer o
  þ o o
  o o
  o þ




---



##### Table of Contents








---



##### Table of Contents



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
    
    
    3C. Reasons for the Offer and Use of Proceeds
    
    
    3D. Risk Factors
    
    
    3Item 4. Information on the Company
    
    
    7A. History and Development of the Company
    
    
    7B. Business Overview
    
    
    11C. Organizational Structure
    
    
    28D. Property, Plants and Equipment
    
    
    29Item 4A. Unresolved Staff Comments
    
    
    31Item 5. Operating and Financial Review and Prospects
    
    
    32A. Operating Results
    
    
    32B. Liquidity and Capital Resources
    
    
    63C. Research and Development, Patents and Licenses, etc.
    
    
    68D. Trend Information
    
    
    70E. Off-Balance Sheet Arrangements
    
    
    72F. Tabular Disclosure of Contractual Obligations
    
    
    74G. Safe Harbor
    
    
    75Item 6. Directors, Senior Management and Employees
    
    
    76A. Directors and Senior Management
    
    
    76B. Compensation
    
    
    86C. Board Practices
    
    
    90D. Employees
    
    
    91E. Share ownership
    
    
    92Item 7. Major Shareholders and Related Party Transactions
    
    
    94A. Major Shareholders
    
    
    94B. Related Party Transactions
    
    
    95C. Interests of Experts and Counsel
    
    
    95Item 8. Financial Information
    
    
    96A. Consolidated Statements and Other Financial Information
    
    
    96B. Significant Changes
    
    
    96Item 9. The Offer and Listing
    
    
    97A. Offer and Listing Details
    
    
    97




---



##### Table of Contents



B. Plan of Distribution
    
    
    98C. Markets
    
    
    98D. Selling Shareholders
    
    
    98E. Dilution
    
    
    98F. Expenses of the Issue
    
    
    98Item 10. Additional Information
    
    
    99A. Share Capital
    
    
    99B. Memorandum and Articles of Association
    
    
    99C. Material Contracts
    
    
    110D. Exchange Controls
    
    
    110E. Taxation
    
    
    113F. Dividends and Paying Agents
    
    
    119G. Statement by Experts
    
    
    119H. Documents on Display
    
    
    119I. Subsidiary Information
    
    
    120Item 11. Quantitative and Qualitative Disclosures About Market Risk
    
    
    120Item 12. Description of Securities Other than Equity Securities
    
    
    125A. Debt Securities
    
    
    125B. Warrants and Rights
    
    
    125C. Other Securities
    
    
    125D. American Depositary Shares
    
    
    125PART IIItem 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    126Item 14. Material Modifications to the Rights of Security Holders and
Use of Proceeds
    
    
    126Item 15. Controls and Procedures
    
    
    126Item 16. [Reserved]
    
    
    128A. Audit Committee Financial Experts
    
    
    128B. Code of Ethics
    
    
    128C. Principal Accountant Fees and Services
    
    
    128D. Exemptions from the Listing Standards for Audit Committees
    
    
    130E. Purchases of Equity Securities by the Issuer
and Affiliated Purchasers
    
    
    130F. Change in Registrants Certifying Accountant
    
    
    130G. Corporate Governance
    
    
    130PART IIIItem 17. Financial Statements
    
    
    130Item 18. Financial Statements
    
    
    130Item 19. Exhibits
    
    
    131Exhibit 1.1Exhibit 1.2Exhibit 2Exhibit 11Exhibit 12 aExhibit 12 bExhibit 13 aExhibit 13 b




---



##### Table of Contents



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)2011
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007Income Statement Data:Net sales 1)
    
    
    1,843,127
    
    
    
    1,431,564
    
    
    
    2,021,743
    
    
    
    2,243,023
    
    
    
    1,893,343Operating income 1)
    
    
    222,929
    
    
    
    67,035
    
    
    
    151,948
    
    
    
    332,850
    
    
    
    244,741Income from continuing operations before income taxes and equity in earnings of affiliated companies 1)
    
    
    219,809
    
    
    
    64,979
    
    
    
    128,782
    
    
    
    322,210
    
    
    
    236,491Income taxes 1)
    
    
    64,706
    
    
    
    25,364
    
    
    
    42,293
    
    
    
    115,794
    
    
    
    79,745Income from continuing operations attributable to Komatsu Ltd. less applicable income taxes 1)
    
    
    150,752
    
    
    
    33,559
    
    
    
    78,797
    
    
    
    203,826
    
    
    
    153,264Income from discontinued operations attributable to Komatsu Ltd. less applicable income taxes 1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,967
    
    
    
    11,374Net income attributable to
Komatsu Ltd.
    
    
    150,752
    
    
    
    33,559
    
    
    
    78,797
    
    
    
    208,793
    
    
    
    164,638Per Share Data:Income from continuing
operations attributable to
Komatsu Ltd. less
applicable income taxes- Basic
    
    
    155.77
    
    
    
    34.67
    
    
    
    79.95
    
    
    
    204.88
    
    
    
    154.25- Diluted
    
    
    155.66
    
    
    
    34.65
    
    
    
    79.89
    
    
    
    204.61
    
    
    
    153.97Net income attributable to
Komatsu Ltd.- Basic
    
    
    155.77
    
    
    
    34.67
    
    
    
    79.95
    
    
    
    209.87
    
    
    
    165.70- Diluted
    
    
    155.66
    
    
    
    34.65
    
    
    
    79.89
    
    
    
    209.59
    
    
    
    165.40Cash dividendsYen
    
    
    26.00
    
    
    
    26.00
    
    
    
    44.00
    
    
    
    38.00
    
    
    
    23.00U.S. cents 2)
    
    
    31.33
    
    
    
    27.96
    
    
    
    44.44
    
    
    
    38.00Depreciation and amortization
    
    
    89,467
    
    
    
    91,319
    
    
    
    98,354
    
    
    
    75,664
    
    
    
    72,709Capital Investment1) 3)
    
    
    97,738
    
    
    
    96,191
    
    
    
    162,512
    
    
    
    145,730
    
    
    
    129,680Research and development
expenses1)
    
    
    49,005
    
    
    
    46,449
    
    
    
    53,736
    
    
    
    49,673
    
    
    
    46,306
 (Millions of yen)Balance Sheet Data:Total assets
    
    
    2,149,137
    
    
    
    1,959,055
    
    
    
    1,969,059
    
    
    
    2,105,146
    
    
    
    1,843,982Komatsu Ltd. shareholders equity
    
    
    923,843
    
    
    
    833,975
    
    
    
    814,941
    
    
    
    887,126
    
    
    
    776,717Capital 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
    
    
    967,902,641
    
    
    
    968,039,976
    
    
    
    967,822,292
    
    
    
    995,103,847
    
    
    
    993,786,759
  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.
 1




---



##### Table of Contents



2)
    
    The conversion rate between the Japanese yen to the U.S. dollar for the fiscal year
ended March 31, 2011 is ¥83 to U.S.$1.00, the approximate buying rate of Japanese yen as
of noon on March 31, 2011 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 reflect
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 312007
    
    
    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
    
    
    
    93.402011
    
    
    85.00
    
    
    
    78.74
    
    
    
    94.68
    
    
    
    82.76
 High
    
    
    Low
    
    
    Period-End2010December
    
    
    81.67
    
    
    
    84.23
    
    
    
    81.672011January
    
    
    81.56
    
    
    
    83.36
    
    
    
    81.97February
    
    
    81.48
    
    
    
    83.79
    
    
    
    81.94March
    
    
    78.74
    
    
    
    82.98
    
    
    
    82.76April
    
    
    81.31
    
    
    
    85.26
    
    
    
    81.31May
    
    
    80.12
    
    
    
    82.12
    
    
    
    81.29
 2




---



##### Table of Contents



B. Capitalization and Indebtedness
  
 C. Reasons for the Offer and Use of Proceeds
  
 D. Risk Factors
  (1) Economic and market conditions
   3




---



##### Table of Contents



(2) Foreign currency exchange rate fluctuations
  4




---



##### Table of Contents



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




---



##### Table of Contents



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




---



##### Table of Contents



(10) Natural calamities, wars, terrorism, accidents and other matters
  
 Item 4. Information on the Company
 
 A. History and Development of the Company
     7




---



##### Table of Contents



8




---



##### Table of Contents



Capital Investment by Operating Segment
 Percentage Change asMillions of Yen
    
    
    compared to theFiscal Year ended
    
    
    Fiscal Year endedMarch 31, 2011
    
    
    March 31, 2010Construction, Mining and Utility Equipment
    
    ¥
    92,049
    
    
    
    -1.0
    %Industrial Machinery and Others
    
    
    5,689
    
    
    
    77.1
    %Total
    
    ¥
    97,738
    
    
    
    1.6
    %
  1)
    
    Amounts include certain leased machinery and equipment accounted for as capital
leases in accordance with Financial Accounting Standards Board Accounting Standards
Codification 840. 9




---



##### Table of Contents



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 reflect 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.    Main facilities completed in the fiscal year ended March 31, 2011
 Operating segment
    
    Main facilitiesConstruction, Mining and Utility Equipment
    
    Komatsu Manufacturing Rus, LLC: Construction of a new plant    Products: Medium-sized hydraulic excavators
        Location: Yaroslavl, RussiaKomatsu Castex Ltd.: Expansion of manufacturing facilities
for key components (iron castings)    Products: Cylinder blocks, etc.
        Location: Himi City, Toyama, Japan
 New constructions, expansions and overhauls of main facilities in progress during the fiscal
year ended March 31, 2011
 Operating segment
    
    Main facilitiesConstruction,
Mining and Utility
Equipment
    
    Komatsu (Changzhou) Construction Machinery Corp.: Relocation (and expansion) of
existing plant    Products: Hydraulic excavators, wheel loaders, dump trucks, etc.
    Location: Changzhou, Jiangsu, China
 10




---



##### Table of Contents



B. Business Overview
      Net Sales by Operating Segments
 (Millions of Yen)Fiscal Year
    
    
    Fiscal Year
    
    
    Fiscal YearEnded March 31,
    
    
    Ended March 31,
    
    
    Ended March 31,2011
    
    
    2010
    
    
    2009Construction,
Mining and Utility
Equipment
    
    ¥
    1,615,689
    
    
    
    87.7
    %
    
    ¥
    1,268,575
    
    
    
    88.6
    %
    
    ¥
    1,744,733
    
    
    
    86.3
    %Industrial
Machinery and
Others
    
    
    227,438
    
    
    
    12.3
    %
    
    
    162,989
    
    
    
    11.4
    %
    
    
    277,010
    
    
    
    13.7
    %Total
    
    ¥
    1,843,127
    
    
    
    100.0
    %
    
    ¥
    1,431,564
    
    
    
    100.0
    %
    
    ¥
    2,021,743
    
    
    
    100.0
    %
 11




---



##### Table of Contents



(1)

    Construction, Mining and Utility Equipment   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
    
    Transportation, warehousing and packing
   12




---



##### Table of Contents



Company
    
    Product
    
    ModelKomatsu Ltd.
    
    Hydraulic Excavators
    
    PC160LC-8, PC190LC-8, PC190NLC-8, HB205-1,
HB215LC-1, PC228US-8,
PC228USLC-8,
PC800-8E0,
PC800LC-8E0, PC850-8E0,
PC800-8R,
PC800LC-8R, PC850-8RBulldozers
    
    D65-12, D68ESS-12Wheel Loader
    
    WA100-6, WA150-6,
WA150PZ-6, WA1200-6Komatsu Utility Co., Ltd.
    
    Hydraulic Excavators
    
    PC70-8
 
 (2)

    Industrial Machinery and Others  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
    13




---



##### Table of Contents



(Millions of Yen)Fiscal Year
    
    
    Fiscal Year
    
    
    Fiscal YearEnded March 31,
    
    
    Ended March 31,
    
    
    Ended March 31,2011
    
    
    2010
    
    
    2009Japan
    
    ¥
    349,184
    
    
    
    18.9
    %
    
    ¥
    323,813
    
    
    
    22.6
    %
    
    ¥
    452,172
    
    
    
    22.4
    %Americas
    
    
    397,427
    
    
    
    21.6
    %
    
    
    323,984
    
    
    
    22.7
    %
    
    
    503,450
    
    
    
    24.9
    %Europe and CIS
    
    
    165,418
    
    
    
    9.0
    %
    
    
    127,377
    
    
    
    8.9
    %
    
    
    284,029
    
    
    
    14.0
    %China
    
    
    428,208
    
    
    
    23.2
    %
    
    
    270,870
    
    
    
    18.9
    %
    
    
    236,226
    
    
    
    11.7
    %Asia (excluding Japan
and China) and
Oceania
    
    
    398,366
    
    
    
    21.6
    %
    
    
    299,864
    
    
    
    20.9
    %
    
    
    335,574
    
    
    
    16.6
    %Middle East and Africa
    
    
    104,524
    
    
    
    5.7
    %
    
    
    85,656
    
    
    
    6.0
    %
    
    
    210,292
    
    
    
    10.4
    %Total
    
    ¥
    1,843,127
    
    
    
    100.0
    %
    
    ¥
    1,431,564
    
    
    
    100.0
    %
    
    ¥
    2,021,743
    
    
    
    100.0
    %
    14




---



##### Table of Contents



15




---



##### Table of Contents



Construction, Mining and Utility Equipment
   16




---



##### Table of Contents



17




---



##### Table of Contents



DANTOTSU products
 2
 KOMTRAX (Komatsu Machine Tracking System)
  AHS (Autonomous Haulage System)
  Hybrid
 2 2
 18




---



##### Table of Contents



Industrial Machinery and Others
  (1) Metal Forging and Stamping Presses
    19




---



##### Table of Contents



(2) Sheet Metal Machines
    (3) Machine Tools
   20




---



##### Table of Contents



Regulations regarding engine emissions
  21




---



##### Table of Contents



Regulations regarding noise and vibration
  22




---



##### Table of Contents



Regulations regarding hazardous substances
   23




---



##### Table of Contents



Regulations regarding Safety
     Basic Management Policy
 24




---



##### Table of Contents



Mid to Long-Range Management Plan and Issues Ahead
     25




---



##### Table of Contents



1) Promotion of ICT Applications to Products and Parts
  2) Further Advancement of Environmental Friendliness and Safety in Machine Performance
 2
 3) Expansion of Sales and Service Operations in Strategic Markets
  26




---



##### Table of Contents



4) Promotion of Continuous Kaizen (Improvement) by Strengthening Workplace Capability
   * The KOMATSU Way:
   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)
 27




---



##### Table of Contents



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
  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 Ltd.
    
    Japan
    
    
    79.0Komatsu Forklift Japan Ltd.
    
    Japan
    
    
    100.0Komatsu Logistics Corp.
    
    Japan
    
    
    100.0Komatsu Industries 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 Cummins Chile Arrienda S.A.
    
    Chile
    
    
    81.8 (100.0
    )Komatsu 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 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 Marketing Support Australia Pty. Ltd.
    
    Australia
    
    
    60.0Komatsu Australia Pty. Ltd.
    
    Australia
    
    
    60.0 (100.0
    )Komatsu 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
  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.
 28




---



##### Table of Contents



D. Property, Plants and Equipment
   29




---



##### Table of Contents



Floor SpaceThousand
    
    ThousandName and Location
    
    sq. meter
    
    sq. ft
    
    Principal productsJapanAwazu Plant 
Komatsu, Ishikawa
    
    
    248
    
    
    
    2,669
    
    
    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
    
    
    156
    
    
    
    1,679
    
    
    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
    
    
    63
    
    
    
    678
    
    
    Large-sized wheel loaders, dump
trucksKoriyama Plant 
Koriyama, Fukushima
    
    
    34
    
    
    
    366
    
    
    Hydraulic equipmentShonan Plant 
Shonan, Kanagawa
    
    
    9
    
    
    
    97
    
    
    Controllers, monitors, KOMTRAX
terminals, hybrid
componentsKomatsu 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 machinesThe AmericasKomatsu America Corp.
Tennessee, U.S.A.
    
    
    31
    
    
    
    334
    
    
    Medium-sized hydraulic
excavators, articulated dump
trucks, forestry equipment
(crawler type)South Carolina, U.S.A.
    
    
    18
    
    
    
    194
    
    
    Wheel loaders, forklift trucksIllinois, U.S.A.
    
    
    61
    
    
    
    657
    
    
    Large-sized dump trucksHensley Industries, Inc.
Texas, U.S.A.
    
    
    19
    
    
    
    205
    
    
    Buckets, teeth, edges, adaptersKomatsu do Brasil Ltda.
São Paulo, Brazil
    
    
    67
    
    
    
    721
    
    
    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
    
    
    15
    
    
    
    161
    
    
    Forestry equipment (wheel type)Komatsu Mining Germany GmbH 
Düsseldorf, Germany
    
    
    27
    
    
    
    291
    
    
    Super-large hydraulic excavatorsKomatsu Utility Europe S.p.A.
Este, Italy
    
    
    43
    
    
    
    463
    
    
    Mini excavators, backhoe
loaders, skid steer loadersKomatsu Manufacturing Rus, LLC 
Yaroslavl, Russia
    
    
    39
    
    
    
    420
    
    
    Medium-sized hydraulic
excavatorsAsia (excluding Japan) and OceaniaPT Komatsu Indonesia 
Jakarta, Indonesia
    
    
    139
    
    
    
    1,496
    
    
    Medium- and large-sized
hydraulic excavators, small-
and medium-sized bulldozers,
motor graders, dump trucks and
hydraulic equipmentPT Komatsu Undercarriage
Indonesia 
Bekasi, Indonesia
    
    
    14
    
    
    
    151
    
    
    Undercarriage components and
spare partsKomatsu (Changzhou)
Construction Machinery Corp.
Jiangsu, China
    
    
    16
    
    
    
    172
    
    
    Medium-sized hydraulic
excavators, medium-sized wheel
loaders, dump trucksKomatsu Shantui Construction
Machinery Co., Ltd.
Shandong, China
    
    
    65
    
    
    
    700
    
    
    Small- and medium-sized
hydraulic excavatorsKomatsu Undercarriage China
Corp.
Shandong, China
    
    
    18
    
    
    
    194
    
    
    Crawler componentsKomatsu (Shandong)
Construction Machinery Corp.
Shandong, China
    
    
    13
    
    
    
    140
    
    
    Mini excavators, forklift
trucks, hydraulic equipment,
steel castingsBangkok Komatsu Co., Ltd.
Chonburi, Thailand
    
    
    24
    
    
    
    258
    
    
    Medium-sized hydraulic
excavators
  1)
    
    Komatsu Cummins Engine Co., Ltd, is located at the Oyama Plant.
 30




---



##### Table of Contents



Approximate expectedcapital investment amountin the fiscal year endingMarch 31, 2012
    
    Principal investmentOperating Segment
    
    (Millions of Yen)
    
    objectives
    
    Sources of fundingConstruction,
Mining and Utility
Equipment
    
    
    111,800
    
    
    To expand
production
capacity, etc.
    
    Funds on hand, bank
borrowings, etc.Industrial
Machinery and
Others
    
    
    4,800
    
    
    To expand
production
capacity, renew
obsolete equipment
and streamline
production, etc.
    
    Funds on hand, bank
borrowings, etc.Total
    
    
    116,600
    
 Item 4A. Unresolved Staff Comments
  31




---



##### Table of Contents



Item 5. Operating and Financial Review and Prospects
 
 A. Operating Results
 Overview
  Komatsus Business
    32




---



##### Table of Contents



General Overview
      33




---



##### Table of Contents



Operations and Business Results
   2 2
 34




---



##### Table of Contents



35




---



##### Table of Contents



Summary of Operating Results
     Key Management Indices
  36




---



##### Table of Contents





Million of yen
    
    
    Millions of U.S. dollars2011
    
    
    2010
    
    
    2011Consolidated Segment Profit
    
    ¥
    234,972
    
    
    ¥
    80,719
    
    
    $
    2,831Impairment loss on long-lived assets
    
    
    (5,142
    )
    
    
    (3,332
    )
    
    
    (62
    )Other operating income (expenses),
net
    
    
    (6,901
    )
    
    
    (10,352
    )
    
    
    (83
    )Consolidated Operating Income
    
    ¥
    222,929
    
    
    ¥
    67,035
    
    
    $
    2,686
 Results for Fiscal Year Ended March 31,
    
    
    Percentage ChangeManagement Indices
    
    2011
    
    
    2010
    
    
    2011 vs. 2010Consolidated Net Sales
    
    ¥
    1,843,127 million
    

    
    ¥
    1,431,564 million
    

    
    
    28.7
    %Consolidated Segment Profit
    
    ¥
    234,972 million
    
    
    ¥
    80,719 million
    
    
    
    191.1
    %Consolidated Operating Income
    
    ¥
    222,929 million
    
    
    ¥
    67,035 million
    
    
    
    232.6
    %Consolidated Operating Margin 1)
    
    
    12.1
    %
    
    
    4.7
    %
    
    

    7.4 pointsROE 2)
    
    
    17.2
    %
    
    
    4.1
    %
    
    

    13.1 pointsNet DER 3)
    
    
    0.50
    
    
    
    0.60
    
    
    
    -0.10
  1)
    
    Operating Margin = Operating Income/Net Sales2)
    
    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}3)
    
    Net Debt-to-Equity Ratio = (Interest-bearing Debt - Cash and Cash Equivalents -
Time Deposits)/Komatsu Ltd. Shareholders Equity 37




---



##### Table of Contents



Consolidated Net Sales
  Consolidated Segment Profit
  Consolidated Operating Income, Consolidated Operating Margin
  38




---



##### Table of Contents



ROE
  Net DER
   Critical Accounting Policies
   39




---



##### Table of Contents



40
    Table of Contents        41
    Table of Contents         42




---



##### Table of Contents



Pension obligations
    
    Net periodic pension costsChange in assumption
    
    (Billions of Yen)
    
    (Billions of Yen)0.5% increase/ decrease
in Discount rate
    
    -11.4 /+12.3
    
    -1,0 /+1.00.5% increase/ decrease
in expected long-term
rate of return
    
    
    
    -0.5 / +0.5
 Recent Accounting Standards Not Yet Adopted
  43




---



##### Table of Contents



Comparison of the Fiscal Years Ended March 31, 2011 and 2010
  Consolidated Statements of Income Data
 Millions of Yen
    
    
    Percentage
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    change
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011 vs. 2010
    
    
    2011Net sales
    
    ¥
    1,843,127
    
    
    
    100.0
    %
    
    ¥
    1,431,564
    
    
    
    100.0
    %
    
    
    28.7
    %
    
    $
    22,206Cost of sales
    
    
    1,343,464
    
    
    
    72.9
    %
    
    
    1,101,559
    
    
    
    76.9
    %
    
    
    22.0
    %
    
    
    16,186Selling, general and administrative
expenses
    
    
    264,691
    
    
    
    14.4
    %
    
    
    249,286
    
    
    
    17.4
    %
    
    
    6.2
    %
    
    
    3,189Impairment losses on long-lived
assets
    
    
    5,142
    
    
    
    0.3
    %
    
    
    3,332
    
    
    
    0.2
    %
    
    
    54.3
    %
    
    
    62Other operating expenses, net
    
    
    (6,901
    )
    
    
    -0.4
    %
    
    
    (10,352
    )
    
    
    -0.7
    %
    
    
    -33.3
    %
    
    
    (83
    )Operating income
    
    
    222,929
    
    
    
    12.1
    %
    
    
    67,035
    
    
    
    4.7
    %
    
    
    232.6
    %
    
    
    2,686Other income (expenses), net
    
    
    (3,120
    )
    
    
    
    
    
    
    (2,056
    )
    
    
    
    
    
    
    51.8
    %
    
    
    (38
    )Interest and
dividend income
    
    
    4,493
    
    
    
    
    
    
    
    6,158
    
    
    
    
    
    
    
    -27.0
    %
    
    
    54Interest expense
    
    
    (6,475
    )
    
    
    
    
    
    
    (8,502
    )
    
    
    
    
    
    
    -23.8
    %
    
    
    (78
    )Other, net
    
    
    (1,138
    )
    
    
    
    
    
    
    288
    
    
    
    
    
    
    
    495.1
    %
    
    
    (14
    )Income before income taxes and
equity in earnings of affiliated
companies
    
    
    219,809
    
    
    
    11.9
    %
    
    
    64,979
    
    
    
    4.5
    %
    
    
    238.3
    %
    
    
    2,648Income taxesCurrent
    
    
    57,923
    
    
    
    
    
    
    
    32,722
    
    
    
    
    
    
    
    
    
    
    
    698Deferred
    
    
    6,783
    
    
    
    
    
    
    
    (7,358
    )
    
    
    
    
    
    
    
    
    
    
    82Total
    
    
    64,706
    
    
    
    3.5
    %
    
    
    25,364
    
    
    
    1.8
    %
    
    
    155.1
    %
    
    
    780Income before equity in earnings of
affiliated companies
    
    
    155,103
    
    
    
    8.4
    %
    
    
    39,615
    
    
    
    2.8
    %
    
    
    291.5
    %
    
    
    1,869Equity in earnings of affiliated
companies
    
    
    2,724
    
    
    
    0.1
    %
    
    
    1,588
    
    
    
    0.1
    %
    
    
    71.5
    %
    
    
    33Net income
    
    
    157,827
    
    
    
    8.6
    %
    
    
    41,203
    
    
    
    2.9
    %
    
    
    283.0
    %
    
    
    1,902Less net income attributable to
noncontrolling interests
    
    
    (7,075
    )
    
    
    -0.4
    %
    
    
    (7,644
    )
    
    
    -0.5
    %
    
    
    -7.4
    %
    
    
    (85
    )Net income attributable to Komatsu
Ltd.
    
    ¥
    150,752
    
    
    
    8.2
    %
    
    ¥
    33,559
    
    
    
    2.3
    %
    
    
    349.2
    %
    
    $
    1,816Yen
    
    
    U.S. centsPer share dataNet income attributable to Komatsu
Ltd.:Basic
    
    
    155.77
    
    
    
    
    
    
    
    34.67
    
    
    
    
    
    
    
    
    
    
    
    187.67Diluted
    
    
    155.66
    
    
    
    
    
    
    
    34.65
    
    
    
    
    
    
    
    
    
    
    
    187.54Cash dividends per share
    
    ¥
    26.00
    
    
    
    
    
    
    ¥
    26.00
    
    
    
    
    
    
    
    
    
    
    ¢
    31.33
 44




---



##### Table of Contents



Net Sales
  2
  45




---



##### Table of Contents



Cost of Sales
  Selling, General and Administrative Expenses
  Impairment Losses on Long-Lived Assets
  46




---



##### Table of Contents



Other Operating Expenses, net
  Operating Income
   Other Income (Expenses), net
  47




---



##### Table of Contents



Income Before Income Taxes and Equity in Earnings of Affiliated Companies
  Income Taxes
   Income Before Equity in Earnings of Affiliated Companies
  Equity in Earnings of Affiliated Companies
  48




---



##### Table of Contents



Net income
  Net Income Attributable to Noncontrolling Interests
  Net Income Attributable to Komatsu Ltd.
  Performance by Operating Segments
  49




---



##### Table of Contents



Performance by Operating Segments
 Millions of YenFiscal Years Ended
    
    
    Percentage
    
    
    Millions ofMarch 31,
    
    
    Change
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011 vs. 2010
    
    
    2011Net sales:Construction, Mining and Utility EquipmentExternal Customers
    
    ¥
    1,615,689
    
    
    ¥
    1,268,575
    
    
    
    27.4
    %
    
    $
    19,466Japan
    
    
    251,597
    
    
    
    228,505
    
    
    
    10.1
    %
    
    
    3,031The Americas
    
    
    386,758
    
    
    
    306,135
    
    
    
    26.3
    %
    
    
    4,660Europe and CIS
    
    
    164,007
    
    
    
    122,018
    
    
    
    34.4
    %
    
    
    1,976China
    
    
    334,270
    
    
    
    244,509
    
    
    
    36.7
    %
    
    
    4,027Asia (excluding
Japan, China) and
Oceania
    
    
    374,577
    
    
    
    281,878
    
    
    
    32.9
    %
    
    
    4,513Middle East and Africa
    
    
    104,480
    
    
    
    85,530
    
    
    
    22.2
    %
    
    
    1,259Intersegment
    
    
    2,392
    
    
    
    2,690
    
    
    
    -11.1
    %
    
    
    29Total
    
    
    1,618,081
    
    
    
    1,271,265
    
    
    
    27.3
    %
    
    
    19,495Industrial Machinery and OthersExternal Customers
    
    
    227,438
    
    
    
    162,989
    
    
    
    39.5
    %
    
    
    2,740Intersegment
    
    
    10,916
    
    
    
    15,619
    
    
    
    -30.1
    %
    
    
    132Total
    
    
    238,354
    
    
    
    178,608
    
    
    
    33.5
    %
    
    
    2,872Elimination
    
    
    (13,308
    )
    
    
    (18,309
    )
    
    
    -27.3
    %
    
    
    (160
    )Consolidated Net Sales
    
    ¥
    1,843,127
    
    
    ¥
    1,431,564
    
    
    
    28.7
    %
    
    $
    22,206Segment Profit:Construction, Mining and Utility Equipment
    
    ¥
    220,830
    
    
    ¥
    83,061
    
    
    
    165.9
    %
    
    $
    2,661Industrial Machinery and Others
    
    
    20,965
    
    
    
    2,998
    
    
    
    599.3
    %
    
    
    253Total
    
    
    241,795
    
    
    
    86,059
    
    
    
    181.0
    %
    
    
    2,913
  1)
    
    Transfers between segments are made at estimated arms-length prices.
 50




---



##### Table of Contents



Construction, Mining and Utility Equipment
 Net sales
    51




---



##### Table of Contents



52




---



##### Table of Contents



Segment Profit
  Industrial Machinery and Others
 Net Sales
  Segment Profit
  53




---



##### Table of Contents



Comparison of the Fiscal Years ended March 31, 2010 and 2009
  Consolidated Statements of Income Data
 Millions of Yen
    
    
    PercentageFiscal Years Ended March 31,
    
    
    change2010
    
    
    2009
    
    
    2010 vs. 2009Net sales
    
    ¥
    1,431,564
    
    
    
    100.0
    %
    
    ¥
    2,021,743
    
    
    
    100.0
    %
    
    
    -29.2
    %Cost of sales
    
    
    1,101,559
    
    
    
    76.9
    %
    
    
    1,510,408
    
    
    
    74.7
    %
    
    
    -27.1
    %Selling, general and administrative
expenses
    
    
    249,286
    
    
    
    17.4
    %
    
    
    322,677
    
    
    
    16.0
    %
    
    
    -22.7
    %Impairment losses on long-lived
assets
    
    
    3,332
    
    
    
    0.2
    %
    
    
    16,414
    
    
    
    0.8
    %
    
    
    -79.7
    %Impairment loss on goodwill
    
    
    
    
    
    
    
    
    
    
    2,003
    
    
    
    0.1
    %
    
    
    -100.0
    %Other operating expenses, net
    
    
    (10,352
    )
    
    
    -0.7
    %
    
    
    (18,293
    )
    
    
    -0.9
    %
    
    
    -43.4
    %Operating income
    
    
    67,035
    
    
    
    4.7
    %
    
    
    151,948
    
    
    
    7.5
    %
    
    
    -55.9
    %Other income (expenses), net
    
    
    (2,056
    )
    
    
    
    
    
    
    (23,166
    )
    
    
    
    
    
    
    -91.1
    %Interest and
dividend income
    
    
    6,158
    
    
    
    
    
    
    
    8,621
    
    
    
    
    
    
    
    -28.6
    %Interest expense
    
    
    (8,502
    )
    
    
    
    
    
    
    (14,576
    )
    
    
    
    
    
    
    -41.7
    %Other, net
    
    
    288
    
    
    
    
    
    
    
    (17,211
    )
    
    
    
    
    
    
    -101.7
    %Income from continuing operations
before income taxes and equity in
earnings of affiliated companies
    
    
    64,979
    
    
    
    4.5
    %
    
    
    128,782
    
    
    
    6.4
    %
    
    
    -49.5
    %Income taxesCurrent
    
    
    32,722
    
    
    
    
    
    
    
    60,511Deferred
    
    
    (7,358
    )
    
    
    
    
    
    
    (18,218
    )Total
    
    
    25,364
    
    
    
    1.8
    %
    
    
    42,293
    
    
    
    2.1
    %
    
    
    -40.0
    %Income from continuing operations
before equity in earnings of
affiliated companies
    
    
    39,615
    
    
    
    2.8
    %
    
    
    86,489
    
    
    
    4.3
    %
    
    
    -54.2
    %Equity in earnings of affiliated
companies
    
    
    1,588
    
    
    
    0.1
    %
    
    
    396
    
    
    
    0.0
    %
    
    
    301.0
    %Net income
    
    
    41,203
    
    
    
    2.9
    %
    
    
    86,885
    
    
    
    4.3
    %
    
    
    -52.6
    %Less net income attributable to
noncontrolling interests
    
    
    (7,644
    )
    
    
    -0.5
    %
    
    
    (8,088
    )
    
    
    -0.4
    %
    
    
    -5.5
    %Net income attributable to Komatsu
Ltd.
    
    ¥
    33,559
    
    
    
    2.3
    %
    
    ¥
    78,797
    
    
    
    3.9
    %
    
    
    -57.4
    %YenPer share dataNet income attributable to Komatsu
Ltd.:Basic
    
    
    34.67
    
    
    
    
    
    
    
    79.95Diluted
    
    
    34.65
    
    
    
    
    
    
    
    79.89Cash dividends per share
    
    ¥
    26.00
    
    
    
    
    
    
    ¥
    44.00
 54




---



##### Table of Contents



Net Sales
    Cost of Sales
  Selling, General and Administrative Expenses
  55




---



##### Table of Contents



Impairment Losses on Long-Lived Assets
  Other Operating Expenses, net
  Operating Income
   56




---



##### Table of Contents



Other Income (Expenses), net
  Income from Continuing Operations Before Income Taxes and Equity in Earnings of Affiliated
Companies
  Income Taxes
   57




---



##### Table of Contents



Income from Continuing Operations Before Equity in Earnings of Affiliated Companies
  Equity in Earnings of Affiliated Companies
  Net income
  Net Income Attributable to Noncontrolling Interests
  Net Income Attributable to Komatsu Ltd.
  58




---



##### Table of Contents



Performance by Operating Segments
  Millions of YenFiscal Years Ended
    
    
    PercentageMarch 31,
    
    
    Change2010
    
    
    2009
    
    
    2010 vs. 2009Net sales:Construction, Mining and Utility EquipmentExternal Customers
    
    ¥
    1,268,575
    
    
    ¥
    1,744,733
    
    
    
    -27.3
    %Japan
    
    
    228,505
    
    
    
    309,895
    
    
    
    -26.3
    %Americas
    
    
    306,135
    
    
    
    462,405
    
    
    
    -33.8
    %Europe and CIS
    
    
    122,018
    
    
    
    273,259
    
    
    
    -55.3
    %China
    
    
    244,509
    
    
    
    179,221
    
    
    
    36.4
    %Asia (excluding
Japan, China) and
Oceania
    
    
    281,878
    
    
    
    309,721
    
    
    
    -9.0
    %Middle East and Africa
    
    
    85,530
    
    
    
    210,232
    
    
    
    -59.3
    %Intersegment
    
    
    2,690
    
    
    
    4,653
    
    
    
    -42.2
    %Total
    
    
    1,271,265
    
    
    
    1,749,386
    
    
    
    -27.3
    %Industrial Machinery and OthersExternal Customers
    
    
    162,989
    
    
    
    277,010
    
    
    
    -41.2
    %Intersegment
    
    
    15,619
    
    
    
    26,389
    
    
    
    -40.8
    %Total
    
    
    178,608
    
    
    
    303,399
    
    
    
    -41.1
    %Elimination
    
    
    (18,309
    )
    
    
    (31,042
    )
    
    
    -41.0
    %Consolidated Net Sales
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    
    -29.2
    %Segment Profit:Construction, Mining and Utility Equipment
    
    ¥
    83,061
    
    
    ¥
    180,455
    
    
    
    -54.0
    %Industrial Machinery and Others
    
    
    2,998
    
    
    
    12,891
    
    
    
    -76.7
    %Total
    
    
    86,059
    
    
    
    193,346
    
    
    
    -55.5
    %
  1)
    
    Transfers between segments are made at estimated arms-length prices.
 59




---



##### Table of Contents



Construction, Mining and Utility Equipment
 Net sales
    60




---



##### Table of Contents



61




---



##### Table of Contents



Segment Profit
   62




---



##### Table of Contents



Industrial Machinery and Others
 Net Sales
  Segment Profit
  
 B. Liquidity and Capital Resources
 Cash Flow
  Condensed Consolidated Statements of Cash Flows Information
 Millions of yen
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Net cash provided by operating activities
    
    ¥
    150,402
    
    
    ¥
    182,161
    
    
    ¥
    78,775
    
    
    $
    1,812Net cash used in investing activities
    
    
    (88,509
    )
    
    
    (72,967
    )
    
    
    (145,368
    )
    
    
    (1,066
    )Net cash provided by (used in) financing activities
    
    
    (56,365
    )
    
    
    (116,363
    )
    
    
    57,219
    
    
    
    (679
    )Effect of exchange rate change on cash and cash
equivalents
    
    
    (3,733
    )
    
    
    ( 965
    )
    
    
    (2,073
    )
    
    
    (45
    )Net increase (decrease) in cash and cash equivalents
    
    
    1,795
    
    
    
    (8,134
    )
    
    
    (11,447
    )
    
    
    22Cash and cash equivalents, beginning of year
    
    
    82,429
    
    
    
    90,563
    
    
    
    102,010
    
    
    
    993Cash and cash equivalents, end of year
    
    ¥
    84,224
    
    
    ¥
    82,429
    
    
    ¥
    90,563
    
    
    $
    1,015
 63




---



##### Table of Contents



64




---



##### Table of Contents



Capital Investment
    Source of Funds and Liquidity Management
  65




---



##### Table of Contents



Fiscal 2011 Financial Position
  66




---



##### Table of Contents



67




---



##### Table of Contents



Credit Ratings
  
 
 C. Research and Development, Patents and Licenses, etc.
   Millions of yen
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    U.S. dollarsR&D expenses
    
    2011
    
    
    2010
    
    
    2009
    
    
    2011Construction, Mining and
Utility Equipment
    
    ¥
    40,241
    
    
    ¥
    40,359
    
    
    ¥
    47,036
    
    
    $
    485Industrial Machinery and Others
    
    
    8,764
    
    
    
    6,090
    
    
    
    6,700
    
    
    
    105Total
    
    ¥
    49,005
    
    
    ¥
    46,449
    
    
    ¥
    53,736
    
    
    $
    590
  68




---



##### Table of Contents



2 2
 69




---



##### Table of Contents



D. Trend Information
  70




---



##### Table of Contents



Forward looking statements
   71




---



##### Table of Contents



E. Off-Balance Sheet Arrangements
      Millions of yenFiscal Years Ended
    
    
    Millions ofMarch 31,
    
    
    U.S. Dollars2011
    
    
    2010
    
    
    2011Total amount of trade receivables that are managed and securitized
    
    ¥
    731,735
    
    
    ¥
    635,610
    
    
    $
    8,816Assets transferred
    
    
    
    
    
    
    (22,004
    )
    
    
    Total amount of trade receivables on balance sheet
    
    ¥
    731,735
    
    
    ¥
    613,606
    
    
    $
    8,816
   72




---



##### Table of Contents



Commitments and Contingent Liabilities
        73




---



##### Table of Contents



Millions of yen
    
    
    Millions ofFiscal Years Ended March 31,
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Balance at beginning of year
    
    ¥
    23,758
    
    
    ¥
    28,256
    
    
    $
    286Addition
    
    
    27,091
    
    
    
    21,149
    
    
    
    326Utilization
    
    
    (21,352
    )
    
    
    (25,477
    )
    
    
    (257
    )Other
    
    
    (966
    )
    
    
    (170
    )
    
    
    (12
    )Balance at end of year
    
    ¥
    28,531
    
    
    ¥
    23,758
    
    
    $
    344
 
 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
    
    ¥
    130,308
    
    
    ¥
    130,308
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    Long-term debt obligations (excluding Capital lease obligations)
    
    
    356,912
    
    
    
    91,116
    
    
    
    193,894
    
    
    
    71,575
    
    
    
    327Capital (Finance) lease obligations
    
    
    48,526
    
    
    
    24,583
    
    
    
    21,571
    
    
    
    2,215
    
    
    
    157Operating lease obligations
    
    
    10,036
    
    
    
    3,240
    
    
    
    3,633
    
    
    
    1,613
    
    
    
    1,550Interest on interest-bearing debt (including Capital lease obligations)
    
    
    16,911
    
    
    
    10,948
    
    
    
    4,984
    
    
    
    975
    
    
    
    4Pension and other postretirement obligations
    
    
    4,661
    
    
    
    4,661
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    567,354
    
    
    ¥
    264,856
    
    
    ¥
    224,082
    
    
    ¥
    76,378
    
    
    ¥
    2,038
      74




---



##### Table of Contents



G. Safe Harbor
   75




---



##### 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 LimitedOutside Director of Asahi Glass Company, Limited
  76




---



##### Table of Contents



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
 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
  77




---



##### Table of Contents



Mamoru Hironaka*
 Date of Birth:
    
    Sept. 27, 1950Director Since:
    
    Jun. 2011Current Positions:
    
    Director (since Jun. 2011)President of Utility Equipment Division (since Apr. 2011) Senior Executive Officer (Senmu) (since Apr. 2009)Prior Positions:Apr. 2010
    
    Executive Vice President and Representative Director of Komatsu Utility Co., Ltd.Apr. 2007
    
    Senior Executive Officer (Joumu)Apr. 2004
    
    Vice President of Construction & Mining Equipment Marketing DivisionJun. 2001
    
    Executive OfficerJun. 2000
    
    General Manager of Product Planning Department, Development DivisionApr. 1974
    
    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) Supervising Environment (since Apr. 2011) Senior Executive Officer (Joumu) (since Apr. 2008) President of Production Division (since Apr. 2007) Supervising Production and
Information Strategy (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
 Mikio Fujitsuka*
 Date of Birth:
    
    Mar. 13, 1955Director Since:
    
    Jun. 2011Current Positions:
    
    Director (since Jun. 2011) Chief Financial Officer (CFO) (since Apr. 2011) Supervising Investor Relations (since Apr. 2011) Senior Executive Officer (Joumu) (since Apr. 2010)Prior Positions:Feb. 2009
    
    General Manager of Corporate Planning Department and President of Global Retail Finance Business DivisionApr. 2008
    
    President of Global Retail Finance Business DivisionApr. 2005
    
    Executive OfficerJun. 2001
    
    General Manager of Corporate Controlling DepartmentApr. 1977
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
  78




---



##### Table of Contents



Fujitoshi Takamura*
 Date of Birth:
    
    Dec 21, 1954Director Since:
    
    Jun. 2011Current Positions:
    
    Director (since Jun. 2011) Supervising Research (since Apr. 2011) Senior Executive Officer (Joumu) (since Apr. 2010)
      President of Development Division (since Apr. 2010)Prior Positions:Apr. 2009
    
    Vice President of Development DivisionApr. 2006
    
    Executive OfficerApr. 2004
    
    General Manager of Construction Equipment Technical Center 1, Development DivisionApr. 1977
    
    Joined the CompanyPrincipal Business Activities outside the Company:None
 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.
  79




---



##### Table of Contents



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
 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
  80




---



##### Table of Contents



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
 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
  81




---



##### Table of Contents



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
 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
  82




---



##### Table of Contents



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.
  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
23, 2011, the Company has 35 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.
  83




---



##### Table of Contents



Corporate Governance
 Basic Stance on Corporate Governance
  Current State of Progress Concerning Corporate Governance
  a. Organizational Framework
     84




---



##### Table of Contents



b. Support for Outside Directors (and Outside Corporate Auditors)
  c. Collaboration between Corporate Auditors and Independent Public Accounting Firm
   d. Collaboration between Corporate Auditors and the Internal Audit Department
   85




---



##### Table of Contents



e. Collaboration between the Internal Audit Department and Independent Public Accounting Firm
     
 B. Compensation
   86




---



##### Table of Contents



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
    
    
    
    87




---



##### Table of Contents



Amount ofNumber of
    
    
    Remuneration paidRemuneration
    
    Persons Paid
    
    
    (Millions of Yen)
    
    
    ReferenceDirectors
    
    
    11
    
    
    
    807
    
    
    Including 
cash bonuses and stock acquisition rights(Outside Directors included above)
    
    
    (4
    )
    
    
    (52
    )Corporate Auditors
    
    
    5
    
    
    
    110
    
    

    (Outside Corporate Auditors included above)
    
    
    (3
    )
    
    
    (40
    )Total
    
    
    16
    
    
    ¥
    916
    
    


    (Outside Directors and Outside Corporate Auditors included above)
    
    
    (7
    )
    
    ¥
    (92
    )
   Non-MonetaryMonetary Remuneration
    
    
    Remuneration, Etc.
    
    
    Total Amount ofName and Title
    
    Salary
    
    
    Cash Bonus
    
    
    Total
    
    
    Stock Acquisition Rights
    
    
    Remuneration PaidKunio Noji, President 

Representative
Director and 
Chief
Executive Officer
    
    
    86
    
    
    
    80
    
    
    
    166
    
    
    
    8
    
    
    
    174Masahiro Sakane,
Chairman of the
Board and Director
    
    
    79
    
    
    
    73
    
    
    
    151
    
    
    
    8
    
    
    
    159Yoshinori Komamura,
Executive Vice
President and
Representative
Director
    
    
    50
    
    
    
    48
    
    
    
    98
    
    
    
    5
    
    
    
    102
 Notes:1)
    
    The remuneration value for stock acquisition rights 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, 2011. More specifically, Kunio Noji and Masahiro Sakane have each been granted the
right to acquire 4,300 shares of the common stock of the Company and Yoshinori Komamura has
been granted the right to acquire 2,600 shares of the common stock of the Company (all at
an exercise price per share of ¥1). In accordance with the Accounting Standards Board of
Japan Statement No. 8 Accounting Standard for Share-based Payment, the remuneration value
for stock acquisition rights that has been recorded by the Company from an accounting
perspective for the fiscal year ended March 31, 2011 has been calculated by multiplying the
fair value per share (¥1,785 per share) as of the grant date (August 2, 2010) 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.
 88




---



##### Table of Contents



Cash Bonuses
  Retirement Allowance
  Stock-Based Remuneration
   89




---



##### Table of Contents



C. Board Practices
       90




---



##### Table of Contents



D. Employees
  Number of employees by operating segment
 As of March 31,2011
    
    
    2010
    
    
    2009Construction, Mining and Utility Equipment
    
    
    36,470
    
    
    
    33,766
    
    
    
    34,986(4,950
    )
    
    
    (3,926
    )
    
    
    (7,354
    )Industrial Machinery and Others
    
    
    3,924
    
    
    
    4,180
    
    
    
    4,340(904
    )
    
    
    (901
    )
    
    
    (1,395
    )Corporate
    
    
    665
    
    
    
    572
    
    
    
    529(110
    )
    
    
    (113
    )
    
    
    (92
    )Total
    
    
    41,059
    
    
    
    38,518
    
    
    
    39,855(5,964
    )
    
    
    (4,940
    )
    
    
    (8,841
    )
 Notes: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, 2011 increased by 2,541 as compared to the
number as of March 31, 2010. This increase was due primarily to the increase in hiring,
including recruitment of non-permanent employees as permanent employees.
   91




---



##### Table of Contents



E. Share Ownership
  Number ofshares heldName
    
    Position
    
    (in thousands)Masahiro Sakane
    
    Chairman of the Board, Director
    
    
    106Kunio Noji
    
    President, Representative Director
    
    
    77Yoshinori Komamura
    
    Executive Vice President, Representative Director
    
    
    29Mamoru Hironaka
    
    Director
    
    
    19Tetsuji Ohashi
    
    Director
    
    
    21Mikio Fujitsuka
    
    Director
    
    
    16Fujitoshi Takamura
    
    Director
    
    
    17Kensuke Hotta
    
    Director
    
    
    1Noriaki Kano
    
    Director
    
    
    6Kouichi Ikeda
    
    Director
    
    
    Masaji Kitamura
    
    Corporate Auditor (Full time)
    
    
    10Kyoji Torii
    
    Corporate Auditor (Full time)
    
    
    18Makoto Okitsu
    
    Corporate Auditor
    
    
    Hiroyuki Kamano
    
    Corporate Auditor
    
    
    3Kunihiro Matsuo
    
    Corporate Auditor
    
    
    Total
    
    
    
    
    325
 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.
  92




---



##### Table of Contents



Number of Stock
    
    Exercise PriceName
    
    Grant Date
    
    Acquisition Rights
    
    (Yen per Share)
    
    
    Vesting Date
    
    Expiration DateKunio Noji
    
    08/01/2006
    
    37
    
    
    2,325
    
    
    08/01/2007
    
    07/31/201409/03/2007
    
    44
    
    
    3,661
    
    
    09/03/2008
    
    08/31/201509/01/2008
    
    34
    
    
    2,499
    
    
    09/01/2009
    
    08/31/201609/01/2009
    
    44
    
    
    1,729
    
    
    09/01/2010
    
    08/31/201708/02/2010
    
    43
    
    
    1
    
    
    08/02/2013
    
    07/31/2018Masahiro Sakane
    
    08/01/2006
    
    64
    
    
    2,325
    
    
    08/01/2007
    
    07/31/201409/03/2007
    
    44
    
    
    3,661
    
    
    09/03/2008
    
    08/31/201509/01/2008
    
    34
    
    
    2,499
    
    
    09/01/2009
    
    08/31/201609/01/2009
    
    44
    
    
    1,729
    
    
    09/01/2010
    
    08/31/201708/02/2010
    
    43
    
    
    1
    
    
    08/02/2013
    
    07/31/2018Yoshinori Komamura
    
    08/01/2006
    
    27
    
    
    2,325
    
    
    08/01/2007
    
    07/31/201409/03/2007
    
    25
    
    
    3,661
    
    
    09/03/2008
    
    08/31/201509/01/2008
    
    20
    
    
    2,499
    
    
    09/01/2009
    
    08/31/201609/01/2009
    
    25
    
    
    1,729
    
    
    09/01/2010
    
    08/31/201708/02/2010
    
    26
    
    
    1
    
    
    08/02/2013
    
    07/31/2018
 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 granted by the Company
through the fiscal year ended March 31, 2010 is 1,000 shares. The number of shares of
common stock that can be subscribed for or purchased with one stock acquisition right
granted by the Company starting with the fiscal year ended March 31, 2011 is 100
shares.
   93




---



##### Table of Contents



Item 7. Major Shareholders and Related Party Transactions
 
 A. Major Shareholders
  Major Shareholders as of March 31, 2011
 Number of Shares Held
    
    
    PercentageName of Major Shareholders
    
    (in thousands)
    
    
    (%)Japan Trustee Services Bank, Ltd. (Trust Account)
    
    
    48,073
    
    
    
    4.81JPMorgan Chase Bank 380055
    
    
    41,614
    
    
    
    4.16The Master Trust Bank of Japan, Ltd. (Trust Account)
    
    
    40,978
    
    
    
    4.10Taiyo Life Insurance Company
    
    
    38,000
    
    
    
    3.80State Street Bank and Trust Company
    
    
    33,290
    
    
    
    3.33Nippon Life Insurance Co.
    
    
    33,283
    
    
    
    3.33The Bank of New York Mellon as Depositary Bank
for Depositary Receipt Holders
    
    
    21,937
    
    
    
    2.19SSBT OD05 OMNIBUS ACCOUNT  TREATY CLIENTS
    
    
    19,294
    
    
    
    1.93Sumitomo Mitsui Banking Corporation
    
    
    17,835
    
    
    
    1.78State Street Bank and Trust Company 505223
    
    
    17,582
    
    
    
    1.76Total of Top 10 Shareholders
    
    
    311,889
    
    
    
    31.22
 Notes: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)
    
    30,289 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.
 94




---



##### Table of Contents



B. Related Party Transactions
   
 C. Interests of Experts and Counsel
  95




---



##### Table of Contents



Item 8. Financial Information
 
 A. Consolidated Statements and Other Financial Information
        
 B. Significant Changes
  96




---



##### Table of Contents



Item 9. The Offer and Listing
 
 A. Offer and Listing Details
     97




---



##### Table of Contents



TSE
    
    
    ADS(Japanese Yen)
    
    
    (U.S. dollars)Period
    
    High
    
    
    Low
    
    
    High
    
    
    LowAnnual highs and lowsThe 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
    
    
    
    11.25The fiscal year ended
March 31, 2011
    
    
    2,858
    
    
    
    1,571
    
    
    
    35.00
    
    
    
    17.47Quarterly highs and lowsThe 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
    
    
    
    19.13The fiscal year ended
March 31, 20111st quarter
    
    
    2,023
    
    
    
    1,580
    
    
    
    21.53
    
    
    
    17.472nd quarter
    
    
    1,963
    
    
    
    1,571
    
    
    
    23.50
    
    
    
    17.983rd quarter
    
    
    2,515
    
    
    
    1,880
    
    
    
    30.50
    
    
    
    22.744th quarter
    
    
    2,858
    
    
    
    2,060
    
    
    
    35.00
    
    
    
    28.61Monthly highs and lowsDecember 2010
    
    
    2,515
    
    
    
    2,322
    
    
    
    30.50
    
    
    
    27.75January 2011
    
    
    2,610
    
    
    
    2,342
    
    
    
    31.40
    
    
    
    28.61February 2011
    
    
    2,613
    
    
    
    2,388
    
    
    
    31.44
    
    
    
    29.24March 2011
    
    
    2,858
    
    
    
    2,060
    
    
    
    35.00
    
    
    
    29.50April 2011
    
    
    2,849
    
    
    
    2,658
    
    
    
    35.53
    
    
    
    31.68May 2011
    
    
    2,926
    
    
    
    2,347
    
    
    
    36.18
    
    
    
    28.78
 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.
 
 B. Plan of Distribution
  
 C. Markets
  
 D. Selling Shareholders
  
 E. Dilution
  
 F. Expenses of the Issue
  98




---



##### Table of Contents



Item 10. Additional Information
 
 A. Share Capital
  
 B. Memorandum and Articles of Association
  kabushiki kaisha Shogyo Tokibo
   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.
 99




---



##### Table of Contents



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.
      100




---



##### Table of Contents



101




---



##### Table of Contents



Dividends from Surplus
    102




---



##### Table of Contents



(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;
 (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) additional amounts - (C) subtractive amounts, where(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
 103




---



##### Table of Contents



(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
  Stock Splits
   Japanese Unit Share System
  Transferability of Shares Representing Less than One Unit.
 104




---



##### 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.
  105




---



##### Table of Contents



Voting Rights of a Holder of Shares Representing Less than One Unit.
    
    
    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
  106




---



##### Table of Contents



Voting Rights
 Japanese Unit Share System
  
    
    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
Rights of Shareholders Stock Splits and Rights of Shareholders 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.
 107




---



##### Table of Contents



Share Acquisition Rights
    Liquidation Rights
  Liability to Further Calls or Assessments
  108




---



##### Table of Contents



Transfer Agent
  Record Date
   Acquisition of Own Shares
 Dividends from Surplus
  109




---



##### Table of Contents



Japanese Unit Share System
 Holding of Shares by Foreign Investors
 
Japanese Unit Share System
 
 C. Material Contracts
  
 D. Exchange Controls
     110




---



##### Table of Contents



post facto
  post facto
 post facto
 post facto
  111




---



##### Table of Contents



post facto
  post facto
     112




---



##### Table of Contents



E. Taxation
      113




---



##### Table of Contents



114




---



##### Table of Contents



115




---



##### Table of Contents



116




---



##### Table of Contents



117




---



##### Table of Contents



118




---



##### 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
 119




---



##### Table of Contents



I. Subsidiary Information
  
 Item 11. Quantitative and Qualitative Disclosures About Market Risk
     Forward Exchange Contracts
 Forwards to sell foreign
    
    Millions of yen (except average contractual rates)currencies:
    
    US$/Yen
    
    
    EUR/Yen
    
    
    CLP/US$
    
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    62,749
    
    
    ¥
    10,252
    
    
    ¥
    10,152
    
    
    ¥
    5,104
    
    
    ¥
    6,247
    
    
    ¥
    94,504Average contractual rates
    
    82.26Yen/US$
    
    
    110.87Yen/EUR
    
    
    0.0021US$/CLP
    
    
    0.73EUR/US$
    
    
    
    
    
    
    
    Fair value
    
    ¥
    (561
    )
    
    ¥
    (463
    )
    
    ¥
    38
    
    
    ¥
    155
    
    
    ¥
    84
    
    
    ¥
    (747
    )
 120




---



##### Table of Contents



Forwards to buy foreign
    
    Millions of yen (except average contractual rates)currencies:
    
    Yen/Yuan
    
    
    US$/ZAR
    
    
    GBP/EUR
    
    
    Yen/ZAR
    
    
    US$/RUB
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    38,704
    
    
    ¥
    6,940
    
    
    ¥
    6,235
    
    
    ¥
    5,197
    
    
    ¥
    4,977
    
    
    ¥
    25,552
    
    
    ¥
    87,605Average contractual rates
    
    12.50Yen/Yuan
    
    
    0.13US$/ZAR
    
    
    0.88GBP/EUR
    
    
    11.30Yen/ZAR
    
    
    0.03US$/RUB
    
    
    
    
    
    
    
    Fair value
    
    ¥
    (888
    )
    
    ¥
    577
    
    
    ¥
    (40
    )
    
    ¥
    306
    
    
    ¥
    (72
    )
    
    ¥
    (250
    )
    
    ¥
    (367
    )
  Currency Option
 Millions of yen (except average contractual rates)Purchase to sell foreign currencies:
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    249
    
    
    
    
    
    
    ¥
    249Average contractual rates
    
    1.405US$/EUR
    
    
    
    
    
    
    
    Fair value
    
    
    5
    
    
    
    
    
    
    
    5
 Millions of yen (except average contractual rates)Purchase to buy foreign currencies:
    
    GBP/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    ¥
    241
    
    
    
    
    
    
    ¥
    241Average contractual rates
    

    0.875EUR/GBP
    
    
    
    
    
    
    
    Fair value
    
    
    2
    
    
    
    
    
    
    
    2
   121




---



##### Table of Contents



Forward Exchange Contracts
 Forwards to sell foreign
    
    Thousands of U.S. dollarscurrencies:
    
    US$/Yen
    
    
    EUR/Yen
    
    
    CLP/US$
    
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    $
    756,012
    
    
    $
    123,518
    
    
    $
    122,313
    
    
    $
    61,494
    
    
    $
    75,265
    
    
    $
    1,138,602Fair value
    
    $
    (6,759
    )
    
    $
    (5,578
    )
    
    $
    458
    
    
    $
    1,867
    
    
    $
    1,012
    
    
    $
    (9,000
    )
 Forwards to buy foreign
    
    Thousands of U.S. dollarscurrencies:
    
    Yen/Yuan
    
    
    US$/ZAR
    
    
    GBP/EUR
    
    
    Yen/ZAR
    
    
    US$/RUB
    
    
    Others
    
    
    TotalContract amounts
    
    $
    466,313
    
    
    $
    83,614
    
    
    $
    75,120
    
    
    $
    62,614
    
    
    $
    59,964
    
    
    $
    307,855
    
    
    $
    1,055,482Fair value
    
    $
    (10,699
    )
    
    $
    6,952
    
    
    $
    (482
    )
    
    $
    3,687
    
    
    $
    (867
    )
    
    $
    (3,012
    )
    
    $
    (4,422
    )
 Currency Option
 Thousands of U.S. dollarsPurchase to sell foreign currencies:
    
    US$/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    $
    3,000
    
    
    
    
    
    
    $
    3,000Fair value
    
    
    60
    
    
    
    
    
    
    
    60
 Thousands of U.S. dollarsPurchase to buy foreign currencies:
    
    GBP/EUR
    
    
    Others
    
    
    TotalContract amounts
    
    $
    2,904
    
    
    
    
    
    
    $
    2,904Fair value
    
    
    24
    
    
    
    
    
    
    
    24
    122




---



##### Table of Contents



Long-term debt excluding capital lease obligations (including due within one year)
 Millions of yenAverage
    
    
    
    
    
    
    
    
    
    
    Expected maturity dateinterest rate
    
    
    Fair value
    
    
    Total
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    2016
    
    
    ThereafterJapanese yen bonds
    
    
    1.37
    %
    
    ¥
    89,155
    
    
    ¥
    90,000
    
    
    ¥
    
    
    
    ¥
    30,000
    
    
    ¥
    30,000
    
    
    ¥
    30,000
    
    
    ¥
    
    
    
    ¥
    Euro medium-term
notes (relating to
variable interest
rate)
    
    
    1.00
    %
    
    
    55,167
    
    
    
    46,845
    
    
    
    21,598
    
    
    
    9,146
    
    
    
    3,504
    
    
    
    313
    
    
    
    12,284
    
    
    
    Loans, principally
from banks
(relating to
variable interest
rate)
    
    
    4.69
    %
    
    
    76,749
    
    
    
    76,749
    
    
    
    19,683
    
    
    
    29,056
    
    
    
    25,081
    
    
    
    2,555
    
    
    
    212
    
    
    
    162Loans, principally
from banks
(relating to fixed
interest rate)
    
    
    2.71
    %
    
    
    142,779
    
    
    
    143,318
    
    
    
    49,835
    
    
    
    39,801
    
    
    
    27,306
    
    
    
    21,539
    
    
    
    4,672
    
    
    
    165Total
    
    
    
    
    
    ¥
    363,850
    
    
    ¥
    356,912
    
    
    ¥
    91,116
    
    
    ¥
    108,003
    
    
    ¥
    85,891
    
    
    ¥
    54,407
    
    
    ¥
    17,168
    
    
    ¥
    327
 Interest rate swaps and cross-currency swaps
 Average
    
    
    
    
    
    
    
    
    
    
    Millions of yeninterest rate
    
    
    
    
    
    
    
    
    
    
    Expected maturity dateReceive
    
    
    Pay
    
    
    Fair value
    
    
    Total
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    2016
    
    
    ThereafterU.S. dollar
interest rate swap
    
    
    0.45
    %
    
    
    2.53
    %
    
    ¥
    (292
    )
    
    ¥
    25,013
    
    
    ¥
    16,246
    
    
    ¥
    6,587
    
    
    ¥
    1,311
    
    
    ¥
    747
    
    
    ¥
    122
    
    
    ¥
    Yen/US$ cross-currency swap
    
    
    1.07
    %
    
    
    0.61
    %
    
    
    7,606
    
    
    
    30,100
    
    
    
    22,500
    
    
    
    7,600
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Yen/EUR cross-currency swap
    
    
    0.71
    %
    
    
    1.30
    %
    
    
    2,803
    
    
    
    12,922
    
    
    
    10,922
    
    
    
    
    
    
    
    2,000
    
    
    
    
    
    
    
    
    
    
    
    Euro interest rate
swap
    
    
    1.25
    %
    
    
    3.59
    %
    
    
    (201
    )
    
    
    17,690
    
    
    
    7,894
    
    
    
    5,578
    
    
    
    2,696
    
    
    
    1,070
    
    
    
    390
    
    
    
    62AUD interest rate
swap
    
    
    4.90
    %
    
    
    5.75
    %
    
    
    (260
    )
    
    
    36,032
    
    
    
    9,819
    
    
    
    9,818
    
    
    
    7,192
    
    
    
    3,904
    
    
    
    2,490
    
    
    
    2,809Others
    
    
    
    
    
    
    
    
    
    
    (56
    )
    
    
    1,667
    
    
    
    259
    
    
    
    147
    
    
    
    726
    
    
    
    451
    
    
    
    84
    
    
    
    Total
    
    
    
    
    
    
    
    
    
    ¥
    9,600
    
    
    ¥
    123,424
    
    
    ¥
    67,640
    
    
    ¥
    29,730
    
    
    ¥
    13,925
    
    
    ¥
    6,172
    
    
    ¥
    3,086
    
    
    ¥
    2,871
  123




---



##### Table of Contents



Long-term debt excluding capital lease obligations (including due within one year)
 Thousands of U.S. dollarsAverage
    
    
    
    
    
    
    
    
    
    
    Expected maturity dateinterest rate
    
    
    Fair value
    
    
    Total
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    2016
    
    
    ThereafterJapanese yen bonds
    
    
    1.37
    %
    
    $
    1,074,157
    
    
    $
    1,084,338
    
    
    $
    
    
    
    $
    361,446
    
    
    $
    361,446
    
    
    $
    361,446
    
    
    $
    
    
    
    $
    Euro medium-term
notes (relating to
variable interest
rate)
    
    
    1.00
    %
    
    
    664,663
    
    
    
    564,398
    
    
    
    260,217
    
    
    
    110,193
    
    
    
    42,217
    
    
    
    3,771
    
    
    
    148,000
    
    
    
    Loans, principally
from banks
(relating to
variable interest
rate)
    
    
    4.69
    %
    
    
    924,687
    
    
    
    924,687
    
    
    
    237,145
    
    
    
    350,072
    
    
    
    302,181
    
    
    
    30,783
    
    
    
    2,554
    
    
    
    1,952Loans, principally
from banks
(relating to fixed
interest rate)
    
    
    2.71
    %
    
    
    1,720,229
    
    
    
    1,726,723
    
    
    
    600,422
    
    
    
    479,530
    
    
    
    328,988
    
    
    
    259,506
    
    
    
    56,289
    
    
    
    1,988Total
    
    
    
    
    
    $
    4,383,736
    
    
    $
    4,300,146
    
    
    $
    1,097,784
    
    
    $
    1,301,241
    
    
    $
    1,034,832
    
    
    $
    655,506
    
    
    $
    206,843
    
    
    $
    3,940
 Interest rate swaps and cross-currency swaps
 Average
    
    
    
    
    
    
    
    
    
    
    Thousands of U.S. dollarsinterest rate
    
    
    
    
    
    
    
    
    
    
    Expected maturity dateReceive
    
    
    Pay
    
    
    Fair value
    
    
    Total
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    2016
    
    
    ThereafterU.S. dollar
interest rate swap
    
    
    0.45
    %
    
    
    2.53
    %
    
    $
    (3,518
    )
    
    $
    301,361
    
    
    $
    195,735
    
    
    $
    79,361
    
    
    $
    15,795
    
    
    $
    9,000
    
    
    $
    1,470
    
    
    $
    Yen/US$
cross-currency swap
    
    
    1.07
    %
    
    
    0.61
    %
    
    
    91,639
    
    
    
    362,650
    
    
    
    271,084
    
    
    
    91,566
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Yen/EUR
cross-currency swap
    
    
    0.71
    %
    
    
    1.30
    %
    
    
    33,771
    
    
    
    155,686
    
    
    
    131,590
    
    
    
    
    
    
    
    24,096
    
    
    
    
    
    
    
    
    
    
    
    EUR interest c rate
swap
    
    
    1.25
    %
    
    
    3.59
    %
    
    
    (2,422
    )
    
    
    213,133
    
    
    
    95,108
    
    
    
    67,205
    
    
    
    32,482
    
    
    
    12,892
    
    
    
    4,699
    
    
    
    747AUD interest rate
swap
    
    
    4.90
    %
    
    
    5.75
    %
    
    
    (3,133
    )
    
    
    434,120
    
    
    
    118,301
    
    
    
    118,289
    
    
    
    86,651
    
    
    
    47,036
    
    
    
    30,000
    
    
    
    33,843Others
    
    
    
    
    
    
    
    
    
    
    (674
    )
    
    
    20,086
    
    
    
    3,122
    
    
    
    1,772
    
    
    
    8,747
    
    
    
    5,433
    
    
    
    1,012
    
    
    
    Total
    
    
    
    
    
    
    
    
    
    $
    115,663
    
    
    $
    1,487,036
    
    
    $
    814,940
    
    
    $
    358,193
    
    
    $
    167,771
    
    
    $
    74,361
    
    
    $
    37,181
    
    
    $
    34,590
  124




---



##### Table of Contents



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
   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
 125




---



##### Table of Contents



Fees to be Paid in the Future
  
 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
  126




---



##### Table of Contents



Managements annual report on internal control over financial reporting
     Changes in internal control over financial reporting
  127




---



##### 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
   128




---



##### Table of Contents



(Millions of Yen)Fiscal Year ended March 31,2011
    
    
    2010Audit fees
    
    ¥
    1,689
    
    
    ¥
    1,687Audit-related fees
    
    
    6
    
    
    
    23Tax fees
    
    
    28
    
    
    
    32All other fees
    
    
    11
    
    
    
    3Total
    
    ¥
    1,734
    
    
    ¥
    1,745
         129




---



##### 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
 Not applicable.
 
 Item 16G. Corporate Governance
  
 PART III
 
 Item 17. Financial Statements
  
 Item 18. Financial Statements
  130




---



##### Table of Contents



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, 2011 (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.
 131




---



##### Table of Contents



SIGNATURES
  KOMATSU LTD.Date: June 28, 2011
    By:
    /s/ Mikio FujitsukaName:
    MIKIO FUJITSUKAPosition:
    Director and Senior Executive Officer, Chief Financial Officer 132




---



##### 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, 2011 and 2010
    
    F-4Consolidated Statements of Income
for the Years Ended March 31, 2011, 2010 and 2009
    
    F-5Consolidated Statements of Equity
for the Years Ended March 31, 2011, 2010 and 2009
    
    F-6Consolidated Statements of Cash Flows
for the Years Ended March 31, 2011, 2010 and 2009
    
    F-7Notes to Consolidated Financial Statements
    
    F-8 to F-58
 F-1




---



##### 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
    
    2011
    
    
    2010
    
    
    2011Current assetsCash and cash equivalents (Note 9)
    
    ¥
    84,224
    
    
    ¥
    82,429
    
    
    $
    1,014,747Time deposits
    
    
    734
    
    
    
    1,132
    
    
    
    8,844Trade notes and accounts receivable (Notes 1, 4 and 25)
    
    
    532,757
    
    
    
    447,693
    
    
    
    6,418,759Inventories (Notes 1 and 5)
    
    
    473,876
    
    
    
    396,416
    
    
    
    5,709,349Deferred
income taxes and other current assets (Notes 1, 9, 15, 19,
20, 21, 23 and 25)
    
    
    152,781
    
    
    
    112,451
    
    
    
    1,840,735Total current assets
    
    
    1,244,372
    
    
    
    1,040,121
    
    
    
    14,992,434Long-term trade receivables (Notes 4 and 25)
    
    
    183,270
    
    
    
    150,972
    
    
    
    2,208,072InvestmentsInvestments in and advances to affiliated companies (Notes 1 and 7)
    
    
    25,115
    
    
    
    24,002
    
    
    
    302,590Investment securities (Notes 1, 6, 20 and 21)
    
    
    60,855
    
    
    
    60,467
    
    
    
    733,193Other
    
    
    3,124
    
    
    
    2,399
    
    
    
    37,639Total investments
    
    
    89,094
    
    
    
    86,868
    
    
    
    1,073,422Property,
plant and equipment  less accumulated depreciation
(Notes 1, 8, 9 and 16)
    
    
    508,387
    
    
    
    525,100
    
    
    
    6,125,144Goodwill (Notes 1 and 10)
    
    
    29,321
    
    
    
    29,570
    
    
    
    353,265Other intangible assets (Notes 1 and 10)
    
    
    53,971
    
    
    
    61,729
    
    
    
    650,253Deferred income taxes and other assets (Notes 1, 15, 19, 20, 21 and 25)
    
    
    40,722
    
    
    
    64,695
    
    
    
    490,627¥
    2,149,137
    
    
    ¥
    1,959,055
    
    
    $
    25,893,217
 Thousands ofU.S. dollarsMillions of yen
    
    
    (Note 1)Liabilities and Equity
    
    2011
    
    
    2010
    
    
    2011Current liabilitiesShort-term debt (Note 11)
    
    ¥
    130,308
    
    
    ¥
    123,438
    
    
    $
    1,569,976Current maturities of long-term debt (Notes 9, 11, 16 and 20)
    
    
    122,608
    
    
    
    105,956
    
    
    
    1,477,205Trade notes, bills and accounts payable
    
    
    308,975
    
    
    
    207,024
    
    
    
    3,722,591Income taxes payable (Note 15)
    
    
    38,829
    
    
    
    22,004
    
    
    
    467,819Deferred income taxes and other current liabilities (Notes 1, 15, 19, 20, 21 and 23)
    
    
    199,268
    
    
    
    183,324
    
    
    
    2,400,819Total current liabilities
    
    
    799,988
    
    
    
    641,746
    
    
    
    9,638,410Long-term liabilitiesLong-term debt (Notes 9, 11, 16 and 20)
    
    
    291,152
    
    
    
    356,985
    
    
    
    3,507,855Liability for pension and retirement benefits (Notes 1 and 12)
    
    
    48,027
    
    
    
    46,354
    
    
    
    578,639Deferred income taxes and other liabilities (Notes 1, 15, 19, 20 and 21)
    
    
    37,290
    
    
    
    37,171
    
    
    
    449,277Total long-term liabilities
    
    
    376,469
    
    
    
    440,510
    
    
    
    4,535,771Total liabilities
    
    
    1,176,457
    
    
    
    1,082,256
    
    
    
    14,174,181Commitments and contingent liabilities (Note 18)EquityKomatsu Ltd. shareholders equity (Notes 1 and 13)Common stock:Authorized 3,955,000,000 shares
Issued 998,744,060 shares
Outstanding 967,902,641 shares in 2011 and
968,039,976 shares in 2010
    
    
    67,870
    
    
    
    67,870
    
    
    
    817,711Capital surplus
    
    
    140,523
    
    
    
    140,421
    
    
    
    1,693,048Retained earnings:Appropriated for legal reserve
    
    
    34,494
    
    
    
    31,983
    
    
    
    415,590Unappropriated
    
    
    847,153
    
    
    
    724,090
    
    
    
    10,206,663Accumulated other comprehensive loss (Notes 1, 6, 12 and 14)
    
    
    (131,059
    )
    
    
    (95,634
    )
    
    
    (1,579,024
    )Treasury stock at cost, 30,841,419 shares in 2011
and 30,704,084 shares in 2010 (Note 13)
    
    
    (35,138
    )
    
    
    (34,755
    )
    
    
    (423,349
    )Total Komatsu Ltd. shareholders equity
    
    
    923,843
    
    
    
    833,975
    
    
    
    11,130,639Noncontrolling interests
    
    
    48,837
    
    
    
    42,824
    
    
    
    588,397Total equity
    
    
    972,680
    
    
    
    876,799
    
    
    
    11,719,036¥
    2,149,137
    
    
    ¥
    1,959,055
    
    
    $
    25,893,217
  F-4




---



##### Table of Contents



Consolidated Statements of Income
 
 Thousands ofU.S. dollarsMillions of yen
    
    
    (Note 1)2011
    
    
    2010
    
    
    2009
    
    
    2011Net sales (Notes 1 and 7)
    
    ¥
    1,843,127
    
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    $
    22,206,349Cost of sales (Notes 16 and 24)
    
    
    1,343,464
    
    
    
    1,101,559
    
    
    
    1,510,408
    
    
    
    16,186,313Selling, general and administrative expenses (Notes 16 and 24)
    
    
    264,691
    
    
    
    249,286
    
    
    
    322,677
    
    
    
    3,189,048Impairment loss on long-lived assets (Notes 1,8,10 and 24)
    
    
    5,142
    
    
    
    3,332
    
    
    
    16,414
    
    
    
    61,952Impairment loss on goodwill (Notes 1 and 10)
    
    
    
    
    
    
    
    
    
    
    2,003
    
    
    
    Other operating expenses, net (Note 24)
    
    
    (6,901
    )
    
    
    (10,352
    )
    
    
    (18,293
    )
    
    
    (83,145
    )Operating income
    
    
    222,929
    
    
    
    67,035
    
    
    
    151,948
    
    
    
    2,685,891Other expenses, net(Note 24)
    
    
    (3,120
    )
    
    
    (2,056
    )
    
    
    (23,166
    )
    
    
    (37,590
    )Interest and dividend income
    
    
    4,493
    
    
    
    6,158
    
    
    
    8,621
    
    
    
    54,133Interest expense
    
    
    (6,475
    )
    
    
    (8,502
    )
    
    
    (14,576
    )
    
    
    (78,012
    )Other,net
    
    
    (1,138
    )
    
    
    288
    
    
    
    (17,211
    )
    
    
    (13,711
    )Income before income taxes and equity in
earnings of affiliated companies
    
    
    219,809
    
    
    
    64,979
    
    
    
    128,782
    
    
    
    2,648,301Income taxes(Notes 1 and 15)Current
    
    
    57,923
    
    
    
    32,722
    
    
    
    60,511
    
    
    
    697,867Deferred
    
    
    6,783
    
    
    
    (7,358
    )
    
    
    (18,218
    )
    
    
    81,723Total
    
    
    64,706
    
    
    
    25,364
    
    
    
    42,293
    
    
    
    779,590Income before equity in earnings of affiliated companies
    
    
    155,103
    
    
    
    39,615
    
    
    
    86,489
    
    
    
    1,868,711Equity in earnings of affiliated companies
    
    
    2,724
    
    
    
    1,588
    
    
    
    396
    
    
    
    32,819Net income
    
    
    157,827
    
    
    
    41,203
    
    
    
    86,885
    
    
    
    1,901,530Less net income attributable to noncontrolling intersets
    
    
    (7,075
    )
    
    
    (7,644
    )
    
    
    (8,088
    )
    
    
    (85,241
    )Net income attributable to Komatsu Ltd.
    
    ¥
    150,752
    
    
    ¥
    33,559
    
    
    ¥
    78,797
    
    
    $
    1,816,289
 Yen
    
    
    U.S. centsPer share data(Notes 1 and 17):Net income attributable to Komatsu Ltd.:Basic
    
    
    155.77
    
    
    
    34.67
    
    
    
    79.95
    
    
    ¢
    187.67Diluted
    
    
    155.66
    
    
    
    34.65
    
    
    
    79.89
    
    
    
    187.54Cash dividends per share (Note 1)
    
    
    26.00
    
    
    
    26.00
    
    
    
    44.00
    
    
    
    31.33
  F-5




---



##### 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
    
    
    loss
    
    
    stock
    
    
    equity
    
    
    interests
    
    
    Total equityBalance 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
(Note 14)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 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 13)
    
    
    
    
    
    
    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
(Note 14)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 13)
    
    
    
    
    
    
    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
    
    
    ¥
    876,799Cash
dividends (Note 13)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25,178
    )
    
    
    
    
    
    
    
    
    
    
    (25,178
    )
    
    
    (994
    )
    
    
    (26,172
    )Transfer to retained earnings appropriated for legal reserve
    
    
    
    
    
    
    
    
    
    
    2,511
    
    
    
    (2,511
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other changes
    
    
    
    
    
    
    (51
    )
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    (44
    )
    
    
    2,168
    
    
    
    2,124Comprehensive income(loss)Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    150,752
    
    
    
    
    
    
    
    
    
    
    
    150,752
    
    
    
    7,075
    
    
    
    157,827Other comprehensive income (loss), for the period, net of tax
(Note 14)Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (37,237
    )
    
    
    
    
    
    
    (37,237
    )
    
    
    (2,292
    )
    
    
    (39,529
    )Net unrealized holding gains on securities available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,978
    
    
    
    
    
    
    
    1,978
    
    
    
    
    
    
    
    1,978Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (91
    )
    
    
    
    
    
    
    (91
    )
    
    
    
    
    
    
    (91
    )Net unrealized holding gains(losses) on derivative instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (82
    )
    
    
    
    
    
    
    (82
    )
    
    
    56
    
    
    
    (26
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    115,320
    
    
    
    4,839
    
    
    
    120,159Issuance and exercise of stock acquisition rights (Notes 1 and 13)
    
    
    
    
    
    
    109
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    109
    
    
    
    
    
    
    
    109Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (583
    )
    
    
    (583
    )
    
    
    
    
    
    
    (583
    )Sales of treasury stock
    
    
    
    
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    200
    
    
    
    244
    
    
    
    
    
    
    
    244Balance at March 31, 2011
    
    ¥
    67,870
    
    
    ¥
    140,523
    
    
    ¥
    34,494
    
    
    ¥
    847,153
    
    
    ¥
    (131,059
    )
    
    ¥
    (35,138
    )
    
    ¥
    923,843
    
    
    ¥
    48,837
    
    
    ¥
    972,680Thousands 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
    
    
    loss
    
    
    stock
    
    
    equity
    
    
    interests
    
    
    Total equityBalance at March 31, 2010
    
    $
    817,711
    
    
    $
    1,691,819
    
    
    $
    385,337
    
    
    $
    8,723,976
    
    
    $
    (1,152,217
    )
    
    $
    (418,735
    )
    
    $
    10,047,891
    
    
    $
    515,952
    
    
    $
    10,563,843Cash
dividends (Note 13)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (303,349
    )
    
    
    
    
    
    
    
    
    
    
    (303,349
    )
    
    
    (11,976
    )
    
    
    (315,325
    )Transfer to retained earnings
appropriated for legal reserve
    
    
    
    
    
    
    
    
    
    
    30,253
    
    
    
    (30,253
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other changes
    
    
    
    
    
    
    (614
    )
    
    
    
    
    
    
    
    
    
    
    84
    
    
    
    
    
    
    
    (530
    )
    
    
    26,120
    
    
    
    25,590Comprehensive income(loss)Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,816,289
    
    
    
    
    
    
    
    
    
    
    
    1,816,289
    
    
    
    85,241
    
    
    
    1,901,530Other comprehensive income(loss), for the period, net of tax
(Note 14)Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (448,639
    )
    
    
    
    
    
    
    (448,639
    )
    
    
    (27,615
    )
    
    
    (476,254
    )Net unrealized holding gains on securities available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,831
    
    
    
    
    
    
    
    23,831
    
    
    
    
    
    
    
    23,831Pension liability adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,095
    )
    
    
    
    
    
    
    (1,095
    )
    
    
    
    
    
    
    (1,095
    )Net unrealized holding gains(losses) on derivative instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (988
    )
    
    
    
    
    
    
    (988
    )
    
    
    675
    
    
    
    (313
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,389,398
    
    
    
    58,301
    
    
    
    1,447,699Issuance and exercise of stock acquisition rights (Notes 1 and 13)
    
    
    
    
    
    
    1,313
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,313
    
    
    
    
    
    
    
    1,313Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,024
    )
    
    
    (7,024
    )
    
    
    
    
    
    
    (7,024
    )Sales of treasury stock
    
    
    
    
    
    
    530
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,410
    
    
    
    2,940
    
    
    
    
    
    
    
    2,940Balance at March 31, 2011
    
    $
    817,711
    
    
    $
    1,693,048
    
    
    $
    415,590
    
    
    $
    10,206,663
    
    
    $
    (1,579,024
    )
    
    $
    (423,349
    )
    
    $
    11,130,639
    
    
    $
    588,397
    
    
    $
    11,719,036
  F-6




---



##### Table of Contents



Consolidated Statements of Cash Flows
 
 Thousands ofU.S. dollarsMillions of yen
    
    
    (Note 1)2011
    
    
    2010
    
    
    2009
    
    
    2011Operating activitiesNet income
    
    ¥
    157,827
    
    
    ¥
    41,203
    
    
    ¥
    86,885
    
    
    $
    1,901,530Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization
    
    
    89,467
    
    
    
    91,319
    
    
    
    98,354
    
    
    
    1,077,916Deferred income taxes
    
    
    6,783
    
    
    
    (7,358
    )
    
    
    (18,218
    )
    
    
    81,723Net loss (gain) from sale of investment securities and subsidiaries
    
    
    54
    
    
    
    (679
    )
    
    
    3,543
    
    
    
    650Net gain on sale of property
    
    
    (2,807
    )
    
    
    (373
    )
    
    
    (269
    )
    
    
    (33,819
    )Loss on disposal of fixed assets
    
    
    1,928
    
    
    
    2,244
    
    
    
    5,561
    
    
    
    23,229Impairment loss on long-lived assets
    
    
    5,142
    
    
    
    3,332
    
    
    
    16,414
    
    
    
    61,952Impairment loss on goodwill
    
    
    
    
    
    
    
    
    
    
    2,003
    
    
    
    Pension and retirement benefits, net
    
    
    (3,795
    )
    
    
    (55
    )
    
    
    3,378
    
    
    
    (45,723
    )Changes in assets and liabilities:Decrease (increase) in trade receivables
    
    
    (147,477
    )
    
    
    (71,459
    )
    
    
    103,355
    
    
    
    (1,776,831
    )Decrease (increase) in inventories
    
    
    (97,790
    )
    
    
    117,707
    
    
    
    (22,307
    )
    
    
    (1,178,193
    )Increase (decrease) in trade payables
    
    
    101,595
    
    
    
    (8,354
    )
    
    
    (148,655
    )
    
    
    1,224,036Increase (decrease) in income taxes payable
    
    
    17,876
    
    
    
    11,311
    
    
    
    (40,507
    )
    
    
    215,373Other, net
    
    
    21,599
    
    
    
    3,323
    
    
    
    (10,762
    )
    
    
    260,229Net cash provided by operating activities
    
    
    150,402
    
    
    
    182,161
    
    
    
    78,775
    
    
    
    1,812,072Investing activitiesCapital expenditures
    
    
    (100,820
    )
    
    
    (92,401
    )
    
    
    (145,670
    )
    
    
    (1,214,699
    )Proceeds from sale of property
    
    
    9,605
    
    
    
    11,212
    
    
    
    6,414
    
    
    
    115,723Proceeds from sale of available for sale investment securities
    
    
    2,132
    
    
    
    1,005
    
    
    
    703
    
    
    
    25,687Purchases of available for sale investment securities
    
    
    (1,379
    )
    
    
    (4,826
    )
    
    
    (6,785
    )
    
    
    (16,614
    )Proceeds from sale of subsidiaries, net of cash disposed
    
    
    
    
    
    
    661
    
    
    
    
    
    
    
    Acquisition of subsidiaries and equity investees, net of cash acquired
    
    
    976
    
    
    
    1,107
    
    
    
    (223
    )
    
    
    11,759Collection of loan receivables
    
    
    1,926
    
    
    
    11,559
    
    
    
    7,736
    
    
    
    23,205Disbursement of loan receivables
    
    
    (1,236
    )
    
    
    (667
    )
    
    
    (6,381
    )
    
    
    (14,892
    )Decrease (increase) in time deposits, net
    
    
    287
    
    
    
    (617
    )
    
    
    (1,162
    )
    
    
    3,458Net cash used in investing activities
    
    
    (88,509
    )
    
    
    (72,967
    )
    
    
    (145,368
    )
    
    
    (1,066,373
    )Financing activitiesProceeds from long-term debt
    
    
    72,681
    
    
    
    155,641
    
    
    
    129,327
    
    
    
    875,675Repayments on long-term debt
    
    
    (89,941
    )
    
    
    (73,052
    )
    
    
    (88,058
    )
    
    
    (1,083,627
    )Increase (decrease) in short-term debt, net
    
    
    11,592
    
    
    
    (139,067
    )
    
    
    127,589
    
    
    
    139,663Repayments of capital lease obligations
    
    
    (28,637
    )
    
    
    (31,240
    )
    
    
    (30,770
    )
    
    
    (345,024
    )Sale (purchase) of treasury stock, net
    
    
    175
    
    
    
    132
    
    
    
    (32,685
    )
    
    
    2,108Dividends paid
    
    
    (25,178
    )
    
    
    (25,180
    )
    
    
    (43,803
    )
    
    
    (303,349
    )Other, net
    
    
    2,943
    
    
    
    (3,597
    )
    
    
    (4,381
    )
    
    
    35,458Net cash provided by (used in) financing activities
    
    
    (56,365
    )
    
    
    (116,363
    )
    
    
    57,219
    
    
    
    (679,096
    )Effect of exchange rate change on cash and cash equivalents
    
    
    (3,733
    )
    
    
    (965
    )
    
    
    (2,073
    )
    
    
    (44,976
    )Net increase (decrease) in cash and cash equivalents
    
    
    1,795
    
    
    
    (8,134
    )
    
    
    (11,447
    )
    
    
    21,627Cash and cash equivalents, beginning of year
    
    
    82,429
    
    
    
    90,563
    
    
    
    102,010
    
    
    
    993,120Cash and cash equivalents, end of year
    
    ¥
    84,224
    
    
    ¥
    82,429
    
    
    ¥
    90,563
    
    
    $
    1,014,747
  F-7




---



##### Table of Contents



1. Description of Business, Basis of Financial Statement Presentation and Summary of
Significant Accounting Policies
 Description of Business
     Basis of Financial Statement Presentation
   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
  F-8




---



##### Table of Contents



(4) Inventories
  (5) Investment Securities
    (6) Property, Plant and Equipment, and Related Depreciation
  2011
    
    
    2010
    
    
    2009Buildings
    
    
    9
    %
    
    
    9
    %
    
    
    9
    %Machinery and equipment
    
    
    23
    %
    
    
    23
    %
    
    
    25
    %
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Aggregate cost
    
    ¥
    83,436
    
    
    ¥
    136,171
    
    
    $
    1,005,253Accumulated amortization
    
    
    36,331
    
    
    
    49,512
    
    
    
    437,723
  (7) Goodwill and Other Intangible Assets
  F-9




---



##### Table of Contents



(8) Revenue Recognition
      (9) Income Taxes
    (10) Product Warranties
  (11) Pension and Retirement Benefits
    F-10




---



##### Table of Contents



(12) Share-Based Compensation
  (13) Per Share Data
   (14) Cash and Cash Equivalents
  ¥39,729
 (15) Derivative Financial Instruments
   (16) Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of
  (17) Use of Estimates
   (18) Recently Adopted Accounting Standards
    F-11




---



##### Table of Contents



2. Supplemental Cash Flow Information
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Additional cash flow information:Interest paid
    
    ¥
    6,367
    
    
    ¥
    8,533
    
    
    ¥
    14,403
    
    
    $
    76,711Income taxes paid
    
    
    46,227
    
    
    
    9,797
    
    
    
    111,508
    
    
    
    556,952Noncash investing and financing activities:Capital lease obligations incurred
    
    ¥
    2,244
    
    
    ¥
    14,285
    
    
    ¥
    29,762
    
    
    $
    27,036
 F-12




---



##### Table of Contents



3. Acquisition
 Komatsu Australia Corporate Finance Pty. Ltd.
     Millions of yenConsiderationCash and cash equivalents
    
    ¥
    1,684Fair value of total consideration transferred
    
    
    1,684Fair value of Komatsus equity interest in KACF held before the business combination
    
    
    696¥
    2,380Recognized amounts of identifiable assets and liabilities assumed
Current assets
    
    ¥
    34,478Property, plant and equipment
    
    
    15,692Intangible assets
    
    
    2Other assets
    
    
    232Total assets acquired
    
    
    50,404Current liabilities
    
    
    (33,174
    )Long-term liabilities
    
    
    (13,999
    )Total liabilities assumed
    
    
    (47,173
    )Net assets acquired
    
    
    3,231Noncontrolling interest
    
    
    (1,587
    )Goodwill
    
    
    736¥
    2,380
    F-13




---



##### Table of Contents



4. Trade Notes and Accounts Receivable
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Trade notes
    
    ¥
    84,372
    
    
    ¥
    82,954
    
    
    $
    1,016,530Accounts receivable
    
    
    461,132
    
    
    
    379,680
    
    
    
    5,555,807Total
    
    
    545,504
    
    
    
    462,634
    
    
    
    6,572,337Long-term trade receivables
    
    
    186,316
    
    
    
    150,972
    
    
    
    2,244,771Total trade receivables
    
    
    731,820
    
    
    
    613,606
    
    
    
    8,817,108Less: total allowance
    
    
    (15,793
    )
    
    
    (14,941
    )
    
    
    (190,277
    )Net trade receivables
    
    ¥
    716,027
    
    
    ¥
    598,665
    
    
    $
    8,626,831
   Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2011Balance at March 31, 2010
    
    ¥
    7,550
    
    
    $
    90,964Provision
    
    
    2,277
    
    
    
    27,433Charge-offs
    
    
    (1,855
    )
    
    
    (22,349
    )Other
    
    
    (498
    )
    
    
    (6,000
    )Balance at March 31, 2011
    
    ¥
    7,474
    
    
    $
    90,048
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Minimum lease payments receivable
    
    ¥
    209,723
    
    
    ¥
    166,983
    
    
    $
    2,526,783Unearned income
    
    
    (20,035
    )
    
    
    (16,078
    )
    
    
    (241,385
    )Net lease receivables
    
    ¥
    189,688
    
    
    ¥
    150,905
    
    
    
    2,285,398
     Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Total amount of trade
receivables that are
managed and securitized
    
    ¥
    731,820
    
    
    ¥
    635,610
    
    
    $
    8,817,108Assets transferred
    
    
    
    
    
    
    (22,004
    )
    
    
    Total amount of trade
receivable on balance sheet
    
    ¥
    731,820
    
    
    ¥
    613,606
    
    
    $
    8,817,108
   2010Weighted-average life
    
    23 monthsPrepayment speed over the life
    
    
    0.6
    %Expected credit losses over the life
    
    
    5.6
    %
  F-14




---



##### Table of Contents



5. Inventories
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Finished products,
including finished
parts held for sale
    
    ¥
    294,807
    
    
    ¥
    254,157
    
    
    $
    3,551,891Work in process
    
    
    135,167
    
    
    
    102,096
    
    
    
    1,628,518Materials and supplies
    
    
    43,902
    
    
    
    40,163
    
    
    
    528,940Total
    
    ¥
    473,876
    
    
    ¥
    396,416
    
    
    $
    5,709,349
 F-15




---



##### Table of Contents



6. Investment Securities
    Millions of yenGross unrealized holdingCost
    
    
    Gains
    
    
    Losses
    
    
    Fair valueAt March 31, 2011Investment securities:Marketable equity securities available for sale
    
    ¥
    23,887
    
    
    ¥
    25,599
    
    
    ¥
    114
    
    
    ¥
    49,372Other investment securities at cost
    
    
    11,483¥
    35,370At March 31, 2010Investment securities:Marketable equity securities available for sale
    
    ¥
    24,988
    
    
    ¥
    22,235
    
    
    ¥
    45
    
    
    ¥
    47,178Other investment securities at cost
    
    
    13,289¥
    38,277
 Thousands of U.S. dollarsGross unrealized holdingCost
    
    
    Gains
    
    
    Losses
    
    
    Fair valueAt March 31, 2011Investment securities:Marketable equity securities available for sale
    
    $
    287,795
    
    
    $
    308,422
    
    
    $
    1,373
    
    
    $
    594,844Other investment securities at cost
    
    $
    138,349$
    426,144
      F-16




---



##### Table of Contents



7. Investments in and Advances to Affiliated Companies
  Thousands ofMillions of yen
    
    
    U. S. dollars2011
    
    
    2010
    
    
    2011Investments in capital stock
    
    ¥
    23,206
    
    
    ¥
    21,688
    
    
    $
    279,590Advances
    
    
    1,909
    
    
    
    2,314
    
    
    
    23,000Total
    
    ¥
    25,115
    
    
    ¥
    24,002
    
    
    $
    302,590
          Thousands ofMillions of yen
    
    
    U. S. dollars2011
    
    
    2010
    
    
    2011Current assets
    
    
    
    
    
    ¥
    118,206
    
    
    ¥
    107,097
    
    
    $
    1,424,169Net property, plant and equipmentless accumulated depreciation
    
    
    40,068
    
    
    
    42,207
    
    
    
    482,747Investments and other assets
    
    
    
    
    
    
    27,672
    
    
    
    22,246
    
    
    
    333,397Total assets
    
    
    
    
    
    ¥
    185,946
    
    
    ¥
    171,550
    
    
    $
    2,240,313Current liabilities
    
    
    
    
    
    ¥
    87,471
    
    
    ¥
    79,894
    
    
    $
    1,053,867Noncurrent liabilities
    
    
    
    
    
    
    38,923
    
    
    
    35,156
    
    
    
    468,952Equity
    
    
    
    
    
    
    59,552
    
    
    
    56,500
    
    
    
    717,494Total liabilities and equity
    
    
    
    
    
    ¥
    185,946
    
    
    ¥
    171,550
    
    
    $
    2,240,313
 Thousands ofMillions of yen
    
    
    U. S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Net sales
    
    ¥
    208,959
    
    
    ¥
    168,418
    
    
    ¥
    205,798
    
    
    $
    2,517,578Net income
    
    ¥
    5,602
    
    
    ¥
    3,229
    
    
    ¥
    1,300
    
    
    $
    67,494
 F-17




---



##### Table of Contents



8. Property, Plant and Equipment
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Land
    
    ¥
    95,409
    
    
    ¥
    92,355
    
    
    $
    1,149,506Buildings
    
    
    337,619
    
    
    
    329,554
    
    
    
    4,067,699Machinery and equipment
    
    
    694,507
    
    
    
    710,511
    
    
    
    8,367,554Construction in progress
    
    
    20,220
    
    
    
    24,653
    
    
    
    243,614Total
    
    
    1,147,755
    
    
    
    1,157,073
    
    
    
    13,828,373Less: accumulated depreciation
    
    
    (639,368
    )
    
    
    (631,973
    )
    
    
    (7,703,229
    )Net property, plant and equipment
    
    ¥
    508,387
    
    
    ¥
    525,100
    
    
    $
    6,125,144
  F-18




---



##### Table of Contents



9. Pledged Assets
  Thousands ofMillions of yen
    
    
    U.S. dollarsCash and cash equivalents
    
    ¥
    2
    
    
    $
    24Other current assets
    
    
    2,574
    
    
    
    31,012Total
    
    ¥
    2,576
    
    
    $
    31,036
  Thousands ofMillions of yen
    
    
    U.S. dollarsGuarantees for debt
    
    ¥
    2,576
    
    
    $
    31,036Total
    
    ¥
    2,576
    
    
    $
    31,036
 F-19




---



##### Table of Contents



10. Goodwill and Other Intangible Assets
  Millions of yen
    
    
    Thousands of U.S. dollars2011
    
    
    2010
    
    
    2011Gross
    
    
    
    
    
    
    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
    
    ¥
    33,367
    
    
    ¥
    (17,531
    )
    
    ¥
    15,836
    
    
    ¥
    34,699
    
    
    ¥
    (13,280
    )
    
    ¥
    21,419
    
    
    $
    402,012
    
    
    $
    (211,217
    )
    
    $
    190,795Leasehold
    
    
    8,926
    
    
    
    (1,585
    )
    
    
    7,341
    
    
    
    9,076
    
    
    
    (1,586
    )
    
    
    7,490
    
    
    
    107,542
    
    
    
    (19,096
    )
    
    
    88,446Other
    
    
    30,199
    
    
    
    (12,392
    )
    
    
    17,807
    
    
    
    30,166
    
    
    
    (10,043
    )
    
    
    20,123
    
    
    
    363,843
    
    
    
    (149,301
    )
    
    
    214,542Total
    
    
    72,492
    
    
    
    (31,508
    )
    
    
    40,984
    
    
    
    73,941
    
    
    
    (24,909
    )
    
    
    49,032
    
    
    
    873,397
    
    
    
    (379,614
    )
    
    
    493,783Other intangible assets not
subject to amortization
    
    
    
    
    
    
    
    
    
    
    12,987
    
    
    
    
    
    
    
    
    
    
    
    12,697
    
    
    
    
    
    
    
    
    
    
    
    156,470Total other intangible assets
    
    
    
    
    
    
    
    
    
    ¥
    53,971
    
    
    
    
    
    
    
    
    
    
    ¥
    61,729
    
    
    
    
    
    
    
    
    
    
    $
    650,253
     Year ending March 31
    
    Millions of yen2012
    
    ¥
    7,8912013
    
    
    6,7022014
    
    
    4,7232015
    
    
    3,4612016
    
    
    2,167
 F-20




---



##### Table of Contents



Millions of yenConstruction, Mining
    
    
    Industrial Machineryand Utility Equipment
    
    
    and Otherssegment
    
    
    segment
    
    
    TotalBalance 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
    
    
    ¥
    29,570Goodwill acquired during the year
    
    
    578
    
    
    
    
    
    
    
    578Foreign exchange impact
    
    
    (826
    )
    
    
    (1
    )
    
    
    (827
    )Balance at March 31, 2011Goodwill
    
    
    24,098
    
    
    
    13,942
    
    
    
    38,040Accumulated impairment losses
    
    
    (8,179
    )
    
    
    (540
    )
    
    
    (8,719
    )¥
    15,919
    
    
    ¥
    13,402
    
    
    ¥
    29,321
 Thousands of U.S. dollarsConstruction, Mining
    
    
    Industrial Machineryand Utility Equipment
    
    
    and Otherssegment
    
    
    segment
    
    
    TotalBalance at March 31, 2010Goodwill
    
    $
    293,325
    
    
    $
    167,988
    
    
    $
    461,313Accumulated impairment losses
    
    
    (98,542
    )
    
    
    (6,506
    )
    
    
    (105,048
    )$
    194,783
    
    
    $
    161,482
    
    
    $
    356,265Goodwill acquired during the year
    
    
    6,964
    
    
    
    
    
    
    
    6,964Foreign exchange impact
    
    
    (9,952
    )
    
    
    (12
    )
    
    
    (9,964
    )Balance at March 31, 2011Goodwill
    
    
    290,337
    
    
    
    167,976
    
    
    
    458,313Accumulated impairment losses
    
    
    (98,542
    )
    
    
    (6,506
    )
    
    
    (105,048
    )$
    191,795
    
    
    $
    161,470
    
    
    $
    353,265
  F-21




---



##### Table of Contents



11. Short-Term and Long-Term Debt
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Banks, insurance companies and other financial institutions
    
    ¥
    130,308
    
    
    ¥
    92,438
    
    
    $
    1,569,976Commercial paper
    
    
    
    
    
    
    31,000
    
    
    
    Short-term debt
    
    ¥
    130,308
    
    
    ¥
    123,438
    
    
    $
    1,569,976
  Millions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Long-term debt with collateral (Note 9):Banks, insurance companies and other financial institutions,
    
    ¥
    
    
    
    ¥
    50
    
    
    $
    Long-term debt without collateral:Banks, insurance companies and other financial institutions,
maturing serially through 2011-2025, weighted-average rate 3.3%
    
    
    217,554
    
    
    
    228,311
    
    
    
    2,621,132Euro Medium-Term Notes
maturing serially through 2011-2015, weighted-average rate 1.0%
    
    
    55,167
    
    
    
    68,142
    
    
    
    664,6631.66% Unsecured Bonds due 2012
    
    
    20,000
    
    
    
    20,000
    
    
    
    240,9640.85% Unsecured Bonds due 2012
    
    
    10,000
    
    
    
    10,000
    
    
    
    120,4821.53% Unsecured Bonds due 2013
    
    
    30,000
    
    
    
    30,000
    
    
    
    361,4461.19% Unsecured Bonds due 2014
    
    
    30,000
    
    
    
    30,000
    
    
    
    361,446Capital lease obligations (Note 16)
    
    
    48,526
    
    
    
    72,951
    
    
    
    584,650Other
    
    
    2,513
    
    
    
    3,487
    
    
    
    30,277Total
    
    
    413,760
    
    
    
    462,941
    
    
    
    4,985,060Less: current maturities
    
    
    (122,608
    )
    
    
    (105,956
    )
    
    
    (1,477,205
    )Long-term debt
    
    ¥
    291,152
    
    
    ¥
    356,985
    
    
    $
    3,507,855
      Year ending March 31
    
    Millions of yen2012
    
    ¥
    115,6992013
    
    
    121,9552014
    
    
    93,5102015
    
    
    55,5262016
    
    
    18,2642017 and thereafter
    
    
    484Total
    
    ¥
    405,438
 F-22




---



##### Table of Contents



12. Liability for Pension and Other Retirement Benefits
     Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Change in benefit obligation:Benefit obligation, beginning of year
    
    ¥
    137,452
    
    
    ¥
    139,569
    
    
    $
    1,656,048Service cost
    
    
    6,630
    
    
    
    7,224
    
    
    
    79,880Interest cost
    
    
    3,585
    
    
    
    3,745
    
    
    
    43,193Actuarial loss
    
    
    1,854
    
    
    
    4,048
    
    
    
    22,337Plan participants contributions
    
    
    55
    
    
    
    49
    
    
    
    663Acquisition
    
    
    125
    
    
    
    
    
    
    
    1,506Plan amendment
    
    
    
    
    
    
    208
    
    
    
    Benefits paid
    
    
    (13,505
    )
    
    
    (17,446
    )
    
    
    (162,711
    )Foreign currency exchange rate change
    
    
    (1,836
    )
    
    
    55
    
    
    
    (22,121
    )Benefit obligation, end of year
    
    ¥
    134,360
    
    
    ¥
    137,452
    
    
    $
    1,618,795Change in plan assets:Fair value of plan assets, beginning of year
    
    ¥
    94,403
    
    
    ¥
    88,252
    
    
    $
    1,137,386Actual return on plan assets
    
    
    251
    
    
    
    10,329
    
    
    
    3,024Employer contributions
    
    
    7,318
    
    
    
    6,465
    
    
    
    88,169Plan participants contributions
    
    
    55
    
    
    
    49
    
    
    
    663Acquisition
    
    
    55
    
    
    
    
    
    
    
    663Benefits paid
    
    
    (8,381
    )
    
    
    (10,788
    )
    
    
    (100,976
    )Foreign currency exchange rate change
    
    
    (1,410
    )
    
    
    96
    
    
    
    (16,989
    )Fair value of plan assets, end of year
    
    ¥
    92,291
    
    
    ¥
    94,403
    
    
    $
    1,111,940Funded status, end of year
    
    ¥
    (42,069
    )
    
    ¥
    (43,049
    )
    
    $
    (506,855
    )Prepaid benefit cost
    
    ¥
    2,000
    
    
    ¥
    22
    
    
    $
    24,096Other current liability
    
    
    (49
    )
    
    
    (89
    )
    
    
    (590
    )Accrued benefit liability
    
    
    (44,020
    )
    
    
    (42,982
    )
    
    
    (530,361
    )¥
    (42,069
    )
    
    ¥
    (43,049
    )
    
    $
    (506,855
    )Amounts recognized in accumulated other
comprehensive income (loss):Actuarial loss
    
    ¥
    36,922
    
    
    ¥
    34,979
    
    
    $
    444,843Prior service cost
    
    
    1,491
    
    
    
    1,370
    
    
    
    17,964¥
    38,413
    
    
    ¥
    36,349
    
    
    $
    462,807
 F-23




---



##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Plans with accumulated benefit obligations in excess of plan assets:Accumulated benefit obligations
    
    ¥
    109,556
    
    
    ¥
    119,363
    
    
    $
    1,319,952Plan assets
    
    
    73,171
    
    
    
    82,806
    
    
    
    881,578Plans with projected benefit obligations in excess of plan assets:Projected benefit obligations
    
    ¥
    126,307
    
    
    ¥
    134,348
    
    
    $
    1,521,771Plan assets
    
    
    82,238
    
    
    
    91,255
    
    
    
    990,819
 Components of net periodic pension cost
  2011
    
    
    2010
    
    
    2009
    
    
    2011Service
cost - Benefits earned during the year
    
    ¥
    6,630
    
    
    ¥
    7,224
    
    
    ¥
    8,460
    
    
    $
    79,880Interest cost on projected benefit obligation
    
    
    3,585
    
    
    
    3,745
    
    
    
    3,885
    
    
    
    43,193Expected return on plan assets
    
    
    (2,961
    )
    
    
    (2,452
    )
    
    
    (3,029
    )
    
    
    (35,675
    )Amortization of actuarial loss
    
    
    2,285
    
    
    
    2,478
    
    
    
    1,622
    
    
    
    27,530Amortization of prior service cost
    
    
    227
    
    
    
    179
    
    
    
    535
    
    
    
    2,735Curtailment and settlement loss (gain)
    
    
    (12
    )
    
    
    (28
    )
    
    
    475
    
    
    
    (145
    )Net periodic cost
    
    ¥
    9,754
    
    
    ¥
    11,146
    
    
    ¥
    11,948
    
    
    $
    117,518
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Current year actuarial loss (gain)
    
    ¥
    4,216
    
    
    ¥
    (3,829
    )
    
    $
    50,795Amortization of actuarial loss
    
    
    (2,273
    )
    
    
    (2,450
    )
    
    
    (27,386
    )Current year prior service cost
    
    
    348
    
    
    
    208
    
    
    
    4,193Amortization of prior service cost
    
    
    (227
    )
    
    
    (179
    )
    
    
    (2,735
    )¥
    2,064
    
    
    ¥
    (6,250
    )
    
    $
    24,867
  Thousands ofMillions of yen
    
    
    U.S. dollarsActuarial loss
    
    ¥
    2,440
    
    
    $
    29,398Prior service cost
    
    
    189
    
    
    
    2,277
  F-24




---



##### Table of Contents



Assumptions
  Domestic plans
    
    
    Foreign plans2011
    
    
    2010
    
    
    2011
    
    
    2010Discount rate
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    6.0
    %
    
    
    6.0
    %Assumed rate of increase in future compensation levels (Point-based benefit system)
    
    
    3.9
    %
    
    
    3.8
    %
    
    
    
    
    
    
    Assumed rate of increase in future compensation levels
    
    
    2.6
    %
    
    
    2.6
    %
    
    
    4.6
    %
    
    
    4.4
    %
  Domestic plans
    
    
    Foreign plans2011
    
    
    2010
    
    
    2009
    
    
    2011
    
    
    2010
    
    
    2009Discount rate
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    6.0
    %
    
    
    6.9
    %
    
    
    6.7
    %Assumed rate of increase in future compensation levels (Point-based benefit system)
    
    
    3.8
    %
    
    
    3.9
    %
    
    
    3.9
    %
    
    
    
    
    
    
    
    
    
    
    Assumed rate of increase in future compensation levels
    
    
    2.6
    %
    
    
    2.4
    %
    
    
    2.0
    %
    
    
    4.4
    %
    
    
    4.1
    %
    
    
    4.4
    %Expected long-term rate of return on plan assets
    
    
    1.9
    %
    
    
    1.9
    %
    
    
    1.9
    %
    
    
    7.2
    %
    
    
    7.6
    %
    
    
    7.5
    %
   Plan assets
     F-25




---



##### Table of Contents



Millions of yenAt March 31, 2011
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalPlan assetsCash
    
    ¥
    4,822
    
    
    
    
    
    
    
    
    
    
    ¥
    4,822Equity securitiesJapanese equities
    
    
    7,569
    
    
    
    386
    
    
    
    
    
    
    
    7,955Foreign equities
    
    
    15,223
    
    
    
    4,375
    
    
    
    
    
    
    
    19,598Pooled funds
    
    
    4,252
    
    
    
    571
    
    
    
    
    
    
    
    4,823Debt securitiesGovernment bonds and municipal bonds
    
    
    16,293
    
    
    
    3,706
    
    
    
    
    
    
    
    19,999Corporate bonds
    
    
    
    
    
    
    5,025
    
    
    
    
    
    
    
    5,025Other assetsLife insurance company general accounts
    
    
    
    
    
    
    28,932
    
    
    
    
    
    
    
    28,932Other
    
    
    38
    
    
    
    653
    
    
    
    446
    
    
    
    1,137Total
    
    ¥
    48,197
    
    
    ¥
    43,648
    
    
    ¥
    446
    
    
    ¥
    92,291
 Millions of yenAt March 31, 2010
    
    Level 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
 F-26




---



##### Table of Contents



Thousands of U.S. dollarsAt March 31, 2011

    
    Level 1
    
    Level 2
    
    Level 3
    
    TotalPlan assetsCash
    
    $
    58,097
    
    
    
    
    
    
    
    
    
    
    $
    58,097Equity securitiesJapanese equities
    
    
    91,193
    
    
    
    4,651
    
    
    
    
    
    
    
    95,844Foreign equities
    
    
    183,409
    
    
    
    52,711
    
    
    
    
    
    
    
    236,120Pooled funds
    
    
    51,229
    
    
    
    6,879
    
    
    
    
    
    
    
    58,108Debt securitiesGovernment bonds and municipal bonds
    
    
    196,301
    
    
    
    44,651
    
    
    
    
    
    
    
    240,952Corporate bonds
    
    
    
    
    
    
    60,543
    
    
    
    
    
    
    
    60,543Other assetsLife insurance company general accounts
    
    
    
    
    
    
    348,578
    
    
    
    
    
    
    
    348,578Other
    
    
    458
    
    
    
    7,867
    
    
    
    5,373
    
    
    
    13,698Total
    
    $
    580,687
    
    
    $
    525,880
    
    
    $
    5,373
    
    
    $
    1,111,940
 
 (1)
    
    The plans equity securities include common stock of the Company in the amount of ¥41 million
($494 thousand) (0.07% of the Companys total plan assets) and ¥48 million (0.08% of the Companys
total plan assets) at March 31, 2011 and 2010, respectively.(2)
    
    The plans pooled funds which are primarily held 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.    F-27




---



##### Table of Contents



Cash flows
 (1) Contributions
  (2) Estimated future benefit payments
  Year ending March 31
    
    Millions of yen2012
    
    ¥
    13,4822013
    
    
    11,4772014
    
    
    7,6052015
    
    
    8,4952016
    
    
    9,323Through 2017-2021
    
    ¥
    41,663
 Other postretirement benefit plan
   F-28




---



##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Change in accumulated postretirement benefit obligation:Accumulated postretirement benefit obligation, beginning of year
    
    ¥
    9,416
    
    
    ¥
    9,069
    
    
    $
    113,446Service cost
    
    
    227
    
    
    
    231
    
    
    
    2,735Interest cost
    
    
    452
    
    
    
    528
    
    
    
    5,446Actuarial loss (gain)
    
    
    (134
    )
    
    
    979
    
    
    
    (1,615
    )Curtailment
    
    
    
    
    
    
    (456
    )
    
    
    Plan participants contributions
    
    
    2
    
    
    
    2
    
    
    
    24Medicare Part D
    
    
    55
    
    
    
    68
    
    
    
    663Benefits paid
    
    
    (728
    )
    
    
    (659
    )
    
    
    (8,771
    )Foreign currency exchange rate change
    
    
    (981
    )
    
    
    (346
    )
    
    
    (11,820
    )Accumulated postretirement benefit obligation, end of year
    
    ¥
    8,309
    
    
    ¥
    9,416
    
    
    $
    100,108Change in plan assets:Fair value of plan assets, beginning of year
    
    ¥
    6,152
    
    
    ¥
    6,579
    
    
    $
    74,120Actual return on plan assets
    
    
    424
    
    
    
    1,156
    
    
    
    5,108Employer contributions
    
    
    726
    
    
    
    657
    
    
    
    8,747Plan participants contributions
    
    
    2
    
    
    
    2
    
    
    
    24Benefits paid
    
    
    (1,303
    )
    
    
    (1,894
    )
    
    
    (15,698
    )Foreign currency exchange rate change
    
    
    (650
    )
    
    
    (348
    )
    
    
    (7,831
    )Fair value of plan assets, end of year
    
    ¥
    5,351
    
    
    ¥
    6,152
    
    
    $
    64,470Funded status, end of year
    
    ¥
    (2,958
    )
    
    ¥
    (3,264
    )
    
    $
    (35,638
    )Prepaid benefit cost
    
    ¥
    719
    
    
    ¥
    700
    
    
    $
    8,663Other current liabilities
    
    
    (38
    )
    
    
    (38
    )
    
    
    (458
    )Accrued benefit liability
    
    
    (3,639
    )
    
    
    (3,926
    )
    
    
    (43,843
    )¥
    (2,958
    )
    
    ¥
    (3,264
    )
    
    $
    (35,638
    )Amounts recognized in accumulated other comprehensive income (loss):Actuarial loss
    
    ¥
    3,050
    
    
    ¥
    3,502
    
    
    $
    36,747Prior service cost
    
    
    551
    
    
    
    616
    
    
    
    6,639¥
    3,601
    
    
    ¥
    4,118
    
    
    $
    43,386
  Components of net periodic postretirement benefit cost
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Service cost
- Benefits earned during the year
    
    ¥
    227
    
    
    ¥
    231
    
    
    ¥
    311
    
    
    $
    2,735Interest cost on projected benefit obligation
    
    
    452
    
    
    
    528
    
    
    
    575
    
    
    
    5,446Expected return on plan assets
    
    
    (302
    )
    
    
    (324
    )
    
    
    (400
    )
    
    
    (3,639
    )Amortization of actuarial loss
    
    
    196
    
    
    
    250
    
    
    
    201
    
    
    
    2,362Amortization of prior service cost
    
    
    65
    
    
    
    70
    
    
    
    128
    
    
    
    783Curtailment and settlement gain
    
    
    
    
    
    
    (116
    )
    
    
    
    
    
    
    Net periodic cost
    
    ¥
    638
    
    
    ¥
    639
    
    
    ¥
    815
    
    
    $
    7,687
 F-29




---



##### Table of Contents



Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Current year actuarial gain
    
    ¥
    (256
    )
    
    ¥
    (309
    )
    
    $
    (3,084
    )Amortization of actuarial loss
    
    
    (196
    )
    
    
    (134
    )
    
    
    (2,362
    )Current year prior service cost
    
    
    
    
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    (65
    )
    
    
    (70
    )
    
    
    (783
    )¥
    (517
    )
    
    ¥
    (513
    )
    
    $
    (6,229
    )
  Thousands ofMillions of yen
    
    
    U.S. dollarsActuarial loss
    
    ¥
    174
    
    
    $
    2,096Prior service cost
    
    
    65
    
    
    
    783
  Assumptions
  2011
    
    
    2010Discount rate
    
    
    5.6
    %
    
    
    5.4
    %Assumed rate of increase in future compensation levels
    
    
    4.0
    %
    
    
    4.0
    %Current healthcare cost trend rate
    
    
    7.9
    %
    
    
    7.8
    %Ultimate healthcare cost trend rate
    
    
    4.8
    %
    
    
    4.8
    %Number of years to ultimate healthcare cost trend rate
    
    
    5
    
    
    
    7
  2011
    
    
    2010
    
    
    2009Discount rate
    
    
    5.4
    %
    
    
    6.4
    %
    
    
    5.9
    %Assumed rate of increase in future compensation levels
    
    
    4.0
    %
    
    
    4.0
    %
    
    
    4.0
    %Expected long-term rate of return on plan assets
    
    
    5.6
    %
    
    
    5.5
    %
    
    
    5.5
    %Current healthcare cost trend rate
    
    
    7.8
    %
    
    
    7.8
    %
    
    
    7.7
    %Ultimate healthcare cost trend rate
    
    
    4.8
    %
    
    
    4.8
    %
    
    
    4.8
    %Number of years to ultimate healthcare cost trend rate
    
    
    7
    
    
    
    7
    
    
    
    6
  F-30




---



##### Table of Contents



Plan assets
      Millions of yenAt March 31, 2011
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalPlan assetsCash
    
    ¥
    283
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    283Equity securitiesForeign equities
    
    
    650
    
    
    
    
    
    
    
    
    
    
    
    650Pooled funds
    
    
    1,101
    
    
    
    
    
    
    
    
    
    
    
    1,101Debt securitiesGovernment bonds and municipal bonds
    
    
    
    
    
    
    2,276
    
    
    
    
    
    
    
    2,276Corporate bonds
    
    
    
    
    
    
    1,041
    
    
    
    
    
    
    
    1,041Total
    
    ¥
    2,034
    
    
    ¥
    3,317
    
    
    ¥
    
    
    
    ¥
    5,351
 Millions of yenAt March 31, 2010
    
    Level 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
 F-31




---



##### Table of Contents



Thousands of U.S. dollarsAt March 31, 2011
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalPlan assetsCash
    
    $
    3,410
    
    
    $
    
    
    
    $
    
    
    
    $
    3,410Equity securitiesForeign equities
    
    
    7,831
    
    
    
    
    
    
    
    
    
    
    
    7,831Pooled funds
    
    
    13,265
    
    
    
    
    
    
    
    
    
    
    
    13,265Debt securitiesGovernment bonds and municipal bonds
    
    
    
    
    
    
    27,422
    
    
    
    
    
    
    
    27,422Corporate bonds
    
    
    
    
    
    
    12,542
    
    
    
    
    
    
    
    12,542Total
    
    $
    24,506
    
    
    $
    39,964
    
    
    $
    
    
    
    $
    64,470
 
 (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.   Cash flows
     Year ending March 31
    
    Millions of yen2012
    
    ¥
    6792013
    
    
    7022014
    
    
    7242015
    
    
    7382016
    
    
    759Through 2017-2021
    
    ¥
    4,132
   F-32




---



##### Table of Contents



13. Komatsu Ltd. Shareholders Equity
 (1) Common Stock and Capital Surplus
    (2) Retained Earnings Appropriated for Legal Reserve
   (3) Retained Earnings and Dividends
    F-33




---



##### Table of Contents



(4) Share-Based Compensation
  The stock option plans resolved by the Board of Directors meetings held in and before June 2010.
   The stock option plans resolved by the Board of Directors meetings held in July 2010.
     2011
    
    
    2010
    
    
    2009Number 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
    
    
    3,333,000
    
    
    ¥
    2,051
    
    
    $
    24.71
    
    
    
    2,891,000
    
    
    ¥
    2,022
    
    
    
    2,844,000
    
    
    ¥
    1,784Granted
    
    
    76,800
    
    
    
    1
    
    
    
    0.01
    
    
    
    642,000
    
    
    
    1,729
    
    
    
    463,000
    
    
    
    2,499Exercised
    
    
    (174,000
    )
    
    
    1,238
    
    
    
    14.92
    
    
    
    (200,000
    )
    
    
    595
    
    
    
    (416,000
    )
    
    
    926Outstanding at end of year
    
    
    3,235,800
    
    
    
    2,047
    
    
    
    24.66
    
    
    
    3,333,000
    
    
    
    2,051
    
    
    
    2,891,000
    
    
    
    2,022Exercisable at end of year
    
    
    3,159,000
    
    
    
    2,096
    
    
    
    25.25
    
    
    
    2,691,000
    
    
    
    2,128
    
    
    
    2,428,000
    
    
    
    1,931
   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¥1 - 650
    
    
    76,800
    
    
    ¥
    1
    
    
    $
    0.01
    
    
    ¥
    216
    
    
    $
    2,602
    
    
    
    7.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    ¥651 - 900
    
    
    300,000
    
    
    
    673
    
    
    
    8.11
    
    
    
    646
    
    
    
    7,783
    
    
    
    1.3
    
    
    
    300,000
    
    
    ¥
    673
    
    
    $
    8.11
    
    
    ¥
    646
    
    
    $
    7,783
    
    
    
    1.3¥901 - 1,350
    
    
    575,000
    
    
    
    1,126
    
    
    
    13.57
    
    
    
    977
    
    
    
    11,771
    
    
    
    2.3
    
    
    
    575,000
    
    
    
    1,126
    
    
    
    13.57
    
    
    
    977
    
    
    
    11,771
    
    
    
    2.3¥1,351 - 2,325
    
    
    1,259,000
    
    
    
    2,032
    
    
    
    24.48
    
    
    
    998
    
    
    
    12,025
    
    
    
    4.8
    
    
    
    1,259,000
    
    
    
    2,032
    
    
    
    24.48
    
    
    
    998
    
    
    
    12,025
    
    
    
    4.8¥2,326 - 3,700
    
    
    1,025,000
    
    
    
    3,136
    
    
    
    37.78
    
    
    
    151
    
    
    
    1,819
    
    
    
    4.9
    
    
    
    1,025,000
    
    
    
    3,136
    
    
    
    37.78
    
    
    
    151
    
    
    
    1,819
    
    
    
    4.9¥1 - 3,700
    
    
    3,235,800
    
    
    
    2,047
    
    
    
    24.66
    
    
    
    2,988
    
    
    
    36,000
    
    
    
    4.1
    
    
    
    3,159,000
    
    
    
    2,096
    
    
    
    25.25
    
    
    
    2,772
    
    
    
    33,398
    
    
    
    4.1
   2011
    
    
    2010
    
    
    2009Grant-date fair value
    
    ¥
    1,785 ($21.51
    )
    
    ¥
    643
    
    
    ¥
    813Expected term
    
    5 years
    
    
    7 years
    
    
    7 yearsRisk-free rate
    
    
    0.13%1.11
    %
    
    
    0.17%1.35
    %
    
    
    0.60%1.48
    %Expected volatility
    
    
    54.00
    %
    
    
    44.00
    %
    
    
    39.00
    %Expected dividend yield
    
    
    0.96
    %
    
    
    2.07
    %
    
    
    1.32
    %
 
 *
    
    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 years2009
    
    
    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
    %2011
    
    
    0.13
    %
    
    
    0.14
    %
    
    
    0.18
    %
    
    
    0.25
    %
    
    
    0.36
    %
    
    
    0.47
    %
    
    
    0.59
    %
    
    
    0.76
    %
    
    
    0.94
    %
    
    
    1.11
    %
 F-34




---



##### Table of Contents



14. Other Comprehensive Income (Loss)
   Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Foreign currency translation adjustments:Balance, beginning of year
    
    ¥
    (85,056
    )
    
    ¥
    (84,152
    )
    
    ¥
    (34,457
    )
    
    $
    (1,024,771
    )Adjustment for the year
    
    
    (37,230
    )
    
    
    (904
    )
    
    
    (49,695
    )
    
    
    (448,555
    )Balance, end of year
    
    ¥
    (122,286
    )
    
    ¥
    (85,056
    )
    
    ¥
    (84,152
    )
    
    $
    (1,473,326
    )Net unrealized holding gains on securities available
for sale:Balance, beginning of year
    
    ¥
    14,126
    
    
    ¥
    8,646
    
    
    ¥
    24,736
    
    
    $
    170,193Net increase (decrease)
    
    
    1,978
    
    
    
    5,480
    
    
    
    (16,090
    )
    
    
    23,831Balance, end of year
    
    ¥
    16,104
    
    
    ¥
    14,126
    
    
    ¥
    8,646
    
    
    $
    194,024Pension liability adjustments:Balance, beginning of year
    
    ¥
    (24,315
    )
    
    ¥
    (29,235
    )
    
    ¥
    (19,208
    )
    
    $
    (292,952
    )Adjustment for the year
    
    
    (91
    )
    
    
    4,920
    
    
    
    (10,027
    )
    
    
    (1,095
    )Balance, end of year
    
    ¥
    (24,406
    )
    
    ¥
    (24,315
    )
    
    ¥
    (29,235
    )
    
    $
    (294,047
    )Net unrealized holding gains (losses) on derivative instruments:Balance, beginning of year
    
    ¥
    (389
    )
    
    ¥
    (1,003
    )
    
    ¥
    150
    
    
    $
    (4,687
    )Net increase (decrease)
    
    
    (82
    )
    
    
    614
    
    
    
    (1,153
    )
    
    
    (988
    )Balance, end of year
    
    ¥
    (471
    )
    
    ¥
    (389
    )
    
    ¥
    (1,003
    )
    
    $
    (5,675
    )Total accumulated other comprehensive loss;Balance, beginning of year
    
    ¥
    (95,634
    )
    
    ¥
    (105,744
    )
    
    ¥
    (28,779
    )
    
    $
    (1,152,217
    )Other comprehensive income (loss) for the year, net of tax
    
    
    (35,425
    )
    
    
    10,110
    
    
    
    (76,965
    )
    
    
    (426,807
    )Balance, end of year
    
    ¥
    (131,059
    )
    
    ¥
    (95,634
    )
    
    ¥
    (105,744
    )
    
    $
    (1,579,024
    )
  F-35




---



##### Table of Contents



Millions of yenPretax
    
    
    Tax (expense)
    
    
    Net of taxamount
    
    
    or benefit
    
    
    amount2011:Foreign currency translation adjustments
    
    ¥
    (37,730
    )
    
    ¥
    493
    
    
    ¥
    (37,237
    )Net unrealized holding gains on securities available for sale:Unrealized holding gains arising during the year
    
    
    4,172
    
    
    
    (1,678
    )
    
    
    2,494Less: reclassification adjustment for gains included in net income attributable to Komatsu Ltd.
    
    
    (871
    )
    
    
    355
    
    
    
    (516
    )Net unrealized gains
    
    
    3,301
    
    
    
    (1,323
    )
    
    
    1,978Pension liability adjustmentsUnrealized holding losses arising during the year
    
    
    (4,308
    )
    
    
    2,706
    
    
    
    (1,602
    )Less: reclassification adjustment for losses included in net income attributable to Komatsu Ltd.
    
    
    2,761
    
    
    
    (1,250
    )
    
    
    1,511Net unrealized losses
    
    
    (1,547
    )
    
    
    1,456
    
    
    
    (91
    )Net unrealized holding losses on derivative instruments:Changes in fair value of derivatives
    
    
    7,315
    
    
    
    (2,971
    )
    
    
    4,344Net gains reclassified into earnings
    
    
    (7,475
    )
    
    
    3,049
    
    
    
    (4,426
    )Net unrealized losses
    
    
    (160
    )
    
    
    78
    
    
    
    (82
    )Other comprehensive loss
    
    ¥
    (36,136
    )
    
    ¥
    704
    
    
    ¥
    (35,432
    )2010:Foreign currency translation adjustments
    
    ¥
    (1,196
    )
    
    ¥
    292
    
    
    ¥
    (904
    )Net unrealized holding gains on securities available for sale:Unrealized holding gains arising
during the year
    
    
    9,124
    
    
    
    (3,843
    )
    
    
    5,281Less: reclassification adjustment for losses included in net income attributable to Komatsu Ltd.
    
    
    336
    
    
    
    (137
    )
    
    
    199Net unrealized gains
    
    
    9,460
    
    
    
    (3,980
    )
    
    
    5,480Pension liability adjustmentsUnrealized holding gains arising during the year
    
    
    3,930
    
    
    
    (1,224
    )
    
    
    2,706Less: reclassification adjustment for losses included in net income attributable to Komatsu Ltd.
    
    
    2,833
    
    
    
    (619
    )
    
    
    2,214Net unrealized gains
    
    
    6,763
    
    
    
    (1,843
    )
    
    
    4,920Net unrealized holding gains on derivative instruments:Changes in fair value of derivatives
    
    
    2,121
    
    
    
    (1,138
    )
    
    
    983Net gains reclassified into earnings
    
    
    (621
    )
    
    
    252
    
    
    
    (369
    )Net unrealized gains
    
    
    1,500
    
    
    
    (886
    )
    
    
    614Other comprehensive income
    
    ¥
    16,527
    
    
    ¥
    (6,417
    )
    
    ¥
    10,1102009:Foreign currency translation adjustments
    
    ¥
    (50,243
    )
    
    ¥
    548
    
    
    ¥
    (49,695
    )Net unrealized holding losses on securities available for sale:Unrealized holding losses arising during the year
    
    
    (29,333
    )
    
    
    11,432
    
    
    
    (17,901
    )Less: reclassification adjustment for losses included in net income attributable to Komatsu Ltd.
    
    
    3,058
    
    
    
    (1,247
    )
    
    
    1,811Net unrealized losses
    
    
    (26,275
    )
    
    
    10,185
    
    
    
    (16,090
    )Pension liability adjustmentsUnrealized holding losses arising during the year
    
    
    (16,843
    )
    
    
    4,420
    
    
    
    (12,423
    )Less: reclassification adjustment for losses included in net income attributable to Komatsu Ltd.
    
    
    2,961
    
    
    
    (565
    )
    
    
    2,396Net unrealized losses
    
    
    (13,882
    )
    
    
    3,855
    
    
    
    (10,027
    )Net unrealized holding losses on derivative instruments:Changes in fair value of derivatives
    
    
    855
    
    
    
    (306
    )
    
    
    549Net gains reclassified into earnings
    
    
    (2,892
    )
    
    
    1,190
    
    
    
    (1,702
    )Net unrealized losses
    
    
    (2,037
    )
    
    
    884
    
    
    
    (1,153
    )Other comprehensive loss
    
    ¥
    (92,437
    )
    
    ¥
    15,472
    
    
    ¥
    (76,965
    )
 F-36




---



##### Table of Contents



Thousands of U.S. dollarsPretax
    
    
    Tax (expense)
    
    
    Net of taxamount
    
    
    or benefit
    
    
    amount2011:Foreign currency translation adjustments
    
    $
    (454,579
    )
    
    $
    5,940
    
    
    $
    (448,639
    )Net unrealized holding gains on securities available for sale:Unrealized holding gains arising during the year
    
    
    50,265
    
    
    
    (20,217
    )
    
    
    30,048Less: reclassification adjustment for gains included in
net income attributable to Komatsu Ltd.
    
    
    (10,494
    )
    
    
    4,277
    
    
    
    (6,217
    )Net unrealized gains
    
    
    39,771
    
    
    
    (15,940
    )
    
    
    23,831Pension liability adjustmentsUnrealized holding losses arising during the year
    
    
    (51,903
    )
    
    
    32,602
    
    
    
    (19,301
    )Less: reclassification adjustment for losses included in
net income attributable to Komatsu Ltd.
    
    
    33,266
    
    
    
    (15,060
    )
    
    
    18,206Net unrealized losses
    
    
    (18,637
    )
    
    
    17,542
    
    
    
    (1,095
    )Net unrealized holding losses on derivative instruments:Changes in fair value of derivatives
    
    
    88,132
    
    
    
    (35,795
    )
    
    
    52,337Net gains reclassified into earnings
    
    
    (90,060
    )
    
    
    36,735
    
    
    
    (53,325
    )Net unrealized losses
    
    
    (1,928
    )
    
    
    940
    
    
    
    (988
    )Other comprehensive loss
    
    $
    (435,373
    )
    
    $
    8,482
    
    
    $
    (426,891
    )
 F-37




---



##### Table of Contents



15. Income Taxes
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Income (loss) before income taxes and equity in earnings
of affiliated companies:Domestic
    
    ¥
    68,682
    
    
    ¥
    (35,965
    )
    
    ¥
    5,426
    
    
    $
    827,494Foreign
    
    
    151,127
    
    
    
    100,944
    
    
    
    123,356
    
    
    
    1,820,807¥
    219,809
    
    
    ¥
    64,979
    
    
    ¥
    128,782
    
    
    $
    2,648,301Income taxes:CurrentDomestic
    
    ¥
    15,391
    
    
    ¥
    5,254
    
    
    ¥
    22,854
    
    
    $
    185,434Foreign
    
    
    42,532
    
    
    
    27,468
    
    
    
    37,657
    
    
    
    512,43357,923
    
    
    
    32,722
    
    
    
    60,511
    
    
    
    697,867DeferredDomestic
    
    
    4,885
    
    
    
    (6,272
    )
    
    
    (17,008
    )
    
    
    58,856Foreign
    
    
    1,898
    
    
    
    (1,086
    )
    
    
    (1,210
    )
    
    
    22,8676,783
    
    
    
    (7,358
    )
    
    
    (18,218
    )
    
    
    81,723Total
    
    ¥
    64,706
    
    
    ¥
    25,364
    
    
    ¥
    42,293
    
    
    $
    779,590
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Income before income taxes and equity in earnings
of affiliated companies
    
    ¥
    64,706
    
    
    ¥
    25,364
    
    
    ¥
    42,293
    
    
    $
    779,590Other comprehensive income(loss):Foreign currency translation adjustments
    
    
    (493
    )
    
    
    (292
    )
    
    
    (548
    )
    
    
    (5,940
    )Net unrealized holding gains(losses) on securities available for sale
    
    
    1,323
    
    
    
    3,980
    
    
    
    (10,185
    )
    
    
    15,940Pension liability adjustments
    
    
    (1,456
    )
    
    
    1,843
    
    
    
    (3,855
    )
    
    
    (17,542
    )Net unrealized holding gains(losses) on derivative instruments
    
    
    (78
    )
    
    
    886
    
    
    
    (884
    )
    
    
    (940
    )Total income taxes
    
    ¥
    64,002
    
    
    ¥
    31,781
    
    
    ¥
    26,821
    
    
    $
    771,108
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Deffered tax assets:Allowances provided, not yet recognized for tax
    
    ¥
    3,944
    
    
    ¥
    3,332
    
    
    $
    47,518Accrued expenses
    
    
    48,737
    
    
    
    43,835
    
    
    
    587,193Property, plant and equipment
    
    
    13,402
    
    
    
    13,289
    
    
    
    161,470Inventories
    
    
    7,517
    
    
    
    8,551
    
    
    
    90,566Net operating loss carryforwards
    
    
    37,095
    
    
    
    51,543
    
    
    
    446,928Research and development expenses
    
    
    557
    
    
    
    690
    
    
    
    6,711Other
    
    
    24,044
    
    
    
    31,536
    
    
    
    289,687Total gross deffered tax assets
    
    
    135,296
    
    
    
    152,776
    
    
    
    1,630,073Less valuation allowance
    
    
    (36,690
    )
    
    
    (49,081
    )
    
    
    (442,048
    )Total deffered tax assets
    
    ¥
    98,606
    
    
    ¥
    103,695
    
    
    $
    1,188,025Deffered tax liabilities:Unrealized holding gains on securities available for sale
    
    ¥
    9,972
    
    
    ¥
    7,829
    
    
    $
    120,145Deferral of profit from installment sales
    
    
    27
    
    
    
    104
    
    
    
    325Property, plant and equipment
    
    
    12,917
    
    
    
    11,519
    
    
    
    155,627Intangible assets
    
    
    17,503
    
    
    
    17,503
    
    
    
    210,880Undistributed earnings of foreign subsidiaries and
affiliated companies accounted for by the equity method
    
    
    5,092
    
    
    
    3,847
    
    
    
    61,349Total deffered tax liabilities
    
    ¥
    45,511
    
    
    ¥
    40,802
    
    
    $
    548,326Total deffered tax assets
    
    ¥
    53,095
    
    
    ¥
    62,893
    
    
    $
    639,699
 F-38




---



##### Table of Contents



Thousand ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Deferred income taxes and other current assets
    
    ¥
    55,953
    
    
    ¥
    43,390
    
    
    $
    674,132Deferred income taxes and other assets
    
    
    15,117
    
    
    
    36,467
    
    
    
    182,133Deferred income taxes and other current liabilities
    
    
    (380
    )
    
    
    (128
    )
    
    
    (4,578
    )Deferred income taxes and other liabilities
    
    
    (17,595
    )
    
    
    (16,836
    )
    
    
    (211,988
    )¥
    53,095
    
    
    ¥
    62,893
    
    
    $
    639,699
     2011
    
    
    2010
    
    
    2009Japanese statutory tax rate
    
    
    40.8
    %
    
    
    40.8
    %
    
    
    40.8
    %Increase (decrease) in tax rates resulting from:Change in valuation allowance
    
    
    (4.5
    )
    
    
    25.2
    
    
    
    7.1Expenses not deductible for tax purposes
    
    
    1.5
    
    
    
    6.8
    
    
    
    2.9Realization of tax benefits on operating losses of subsidiaries
    
    
    (0.4
    )
    
    
    (0.8
    )
    
    
    (1.4
    )Income of foreign subsidiaries taxed at lower than Japanese normal rate
    
    
    (8.3
    )
    
    
    (22.6
    )
    
    
    (11.3
    )Tax credit for research and development expenses
    
    
    (1.3
    )
    
    
    
    
    
    
    (0.7
    )Realization of loss for investment in a subsidiary
    
    
    
    
    
    
    (10.2
    )
    
    
    Other, net
    
    
    1.6
    
    
    
    (0.2
    )
    
    
    (4.6
    )Effective tax rate
    
    
    29.4
    %
    
    
    39.0
    %
    
    
    32.8
    %
  Year ending March 31, 2011
    
    Millions of yenWithin 5 years
    
    ¥
    43,4156 to 20 years
    
    
    36,632Indefinite periods
    
    
    14,550Total
    
    ¥
    94,597
   F-39




---



##### Table of Contents



16. Rent Expenses
  Millions of yenCapital
    
    
    Operating leaseYear ending March 31
    
    leases
    
    
    commitments
    
    
    Total2012
    
    ¥
    25,474
    
    
    ¥
    3,240
    
    
    ¥
    28,7142013
    
    
    14,557
    
    
    
    2,129
    
    
    
    16,6862014
    
    
    7,859
    
    
    
    1,504
    
    
    
    9,3632015
    
    
    1,189
    
    
    
    1,000
    
    
    
    2,1892016
    
    
    1,117
    
    
    
    613
    
    
    
    1,730Thereafter
    
    
    159
    
    
    
    1,550
    
    
    
    1,709Total minimum lease payments
    
    ¥
    50,355
    
    
    ¥
    10,036
    
    
    ¥
    60,391Less: amounts representing interest
    
    
    (1,829
    )Present value of net minimum capital lease payments
    
    ¥
    48,526
 F-40




---



##### Table of Contents



17. Net Income Attributable to Komatsu Ltd. per Share
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Net income attributable to Komatsu Ltd.
    
    ¥
    150,752
    
    
    ¥
    33,559
    
    
    ¥
    78,797
    
    
    $
    1,816,289Number of shares2011
    
    
    2010
    
    
    2009Weighted average common shares outstanding, less treasury stock
    
    
    967,803,446
    
    
    
    968,013,328
    
    
    
    985,585,385Dilutive effect of:Stock options
    
    
    671,477
    
    
    
    449,531
    
    
    
    731,973Weighted average diluted common shares outstanding
    
    
    968,474,923
    
    
    
    968,462,859
    
    
    
    986,317,358Yen
    
    
    U.S. cents2011
    
    
    2010
    
    
    2009
    
    
    2011Net income attributable to Komatsu Ltd. per share:Basic
    
    ¥
    155.77
    
    
    ¥
    34.67
    
    
    ¥
    79.95
    
    
    ¢
    187.67Diluted
    
    
    155.66
    
    
    
    34.65
    
    
    
    79.89
    
    
    
    187.54
 F-41




---



##### Table of Contents



18. Commitments and Contingent Liabilities
         2011
    
    
    2010
    
    
    2011Balance at beginning of year
    
    ¥
    23,758
    
    
    ¥
    28,256
    
    
    $
    286,241Addition
    
    
    27,091
    
    
    
    21,149
    
    
    
    326,398Utilization
    
    
    (21,352
    )
    
    
    (25,477
    )
    
    
    (257,253
    )Other
    
    
    (966
    )
    
    
    (170
    )
    
    
    (11,639
    )Balance at end of year
    
    ¥
    28,531
    
    
    ¥
    23,758
    
    
    $
    343,747
 F-42




---



##### Table of Contents



19. Derivative Financial Instruments
 Risk Management Policy
     Fair Value Hedges
  Cash Flow Hedges
  F-43




---



##### Table of Contents



Undesignated Derivative Instruments
  Notional Principal Amounts of Derivative Financial Instruments
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Forwards and options:Sale of foreign currencies
    
    ¥
    94,504
    
    
    ¥
    40,209
    
    
    $
    1,138,602Purchase of foreign currencies
    
    
    87,605
    
    
    
    48,809
    
    
    
    1,055,482Option contracts (purchased)
    
    
    490
    
    
    
    949
    
    
    
    5,904Interest rate swaps, cross-currency swaps
and interest rate cap agreements
    
    
    123,424
    
    
    
    184,487
    
    
    
    1,487,036
  Millions of yen2011Derivative 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
    
    ¥
    11
    
    
    Deferred income taxes and other current liabilities
    
    ¥
    817Deferred income taxes and other assets
    
    
    2
    
    
    Deferred income taxes and other liabilities
    
    
    Interest rate swaps,
cross-currency swaps and interest
rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    126
    
    
    Deferred income taxes and other current liabilities
    
    
    471Deferred income taxes and other assets
    
    
    
    
    
    Deferred income taxes and other liabilities
    
    
    Total
    
    
    
    ¥
    139
    
    
    
    
    ¥
    1,288Derivative 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
    
    ¥
    403
    
    
    Deferred income taxes and other current liabilities
    
    ¥
    2,025Deferred income taxes and other assets
    
    
    
    
    
    Deferred income taxes and other liabilities
    
    
    126Option contracts
    
    Deferred income taxes and other current assets
    
    
    7
    
    
    Deferred income taxes and other current liabilities
    
    
    Interest rate swaps,
cross-currency swaps and interest
rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    6,967
    
    
    Deferred income taxes and other current liabilities
    
    
    382Deferred income taxes and other assets
    
    
    3,515
    
    
    Deferred income taxes and other liabilities
    
    
    155Total
    
    
    
    ¥
    10,892
    
    
    
    
    ¥
    2,688Total Derivative Instruments
    
    
    
    ¥
    11,031
    
    
    
    
    ¥
    3,976
 F-44




---



##### Table of Contents



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
swaps 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
    
    
    
    
    ¥
    1,564Derivative 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
swaps 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
    
    
    
    
    ¥
    4,628Thousands of U.S. dollars2011Derivative 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
    
    $
    133
    
    
    Deferred income taxes and other current liabilities
    
    $
    9,843Deferred income taxes and other assets
    
    
    24
    
    
    Deferred income taxes and other liabilities
    
    
    Interest rate swaps,
cross-currency swaps and interest
rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    1,518
    
    
    Deferred income taxes and other current liabilities
    
    
    5,675Deferred income taxes and other assets
    
    
    
    
    
    Deferred income taxes and other liabilities
    
    
    Total
    
    
    
    $
    1,675
    
    
    
    
    $
    15,518Derivative 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
    
    $
    4,855
    
    
    Deferred income taxes and other current liabilities
    
    $
    24,398Deferred income taxes and other assets
    
    
    
    
    
    Deferred income taxes and other liabilities
    
    
    1,518Option contracts
    
    Deferred income taxes and other current assets
    
    
    84
    
    
    Deferred income taxes and other current liabilities
    
    
    Interest rate swaps,
cross-currency swaps and interest
rate cap agreements
    
    Deferred income taxes and other current assets
    
    
    83,940
    
    
    Deferred income taxes and other current liabilities
    
    
    4,602Deferred income taxes and other assets
    
    
    42,350
    
    
    Deferred income taxes and other liabilities
    
    
    1,868Total
    
    
    
    $
    131,229
    
    
    
    
    $
    32,386Total Derivative Instruments
    
    
    
    $
    132,904
    
    
    
    
    $
    47,904
 F-45




---



##### Table of Contents



Derivative instruments designated as fair value hedging relationships
 Millions of yen2011Location 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
swaps and interest
rate cap agreements
    
    Other income (expenses), net: 
Other, net
    
    ¥
    
    
    
    Other income (expenses), net: Other, net
    
    ¥
    Total
    
    
    
    ¥
    
    
    
    
    
    ¥
    
 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
swaps and interest
rate cap agreements
    
    Other income (expenses), net: 
Other, net
    
    ¥
    (270
    )
    
    Other income (expenses), net: Other, net
    
    ¥
    355Total
    
    
    
    ¥
    (270
    )
    
    
    
    ¥
    355
 Millions 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
swaps 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. dollars2011Location 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
swaps and interest
rate cap agreements
    
    Other income (expenses), net: 
Other, net
    
    $
    
    
    
    Other income (expenses), net: Other, net
    
    $
    Total
    
    
    
    $
    
    
    
    
    
    $
    
 F-46




---



##### Table of Contents



Derivative instruments designated as cash flow hedging relationships
 Millions of yen2011Ineffective 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
    
    ¥
    7,195
    
    
    Other income (expenses), net: 
Other, net
    
    ¥
    7,475
    
    
    
    
    
    ¥
    Interest rate
swaps,
cross-currency
swaps and interest
rate cap agreements
    
    
    120
    
    
    Other income (expenses), net: Other, net
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    7,315
    
    
    
    
    ¥
    7,475
    
    
    
    
    
    
    ¥
    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
swaps and interest
rate cap agreements
    
    
    1,758
    
    
    Other income (expenses), net: Other, net
    
    
    89
    
    
    
    
    
    
    Total
    
    ¥
    2,121
    
    
    
    
    ¥
    621
    
    
    
    
    
    
    ¥
    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
swaps and interest
rate cap agreements
    
    
    65
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    855
    
    
    
    
    ¥
    2,892
    
    
    
    
    
    
    ¥
    Thousands of U.S. dollars2011Ineffective 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
    
    $
    86,687
    
    
    Other income (expenses), net: Other, net
    
    $
    90,060
    
    
    
    
    
    $
    Interest rate
swaps,
cross-currency
swaps and interest
rate cap agreements
    
    
    1,446
    
    
    Other income (expenses), net: Other, net
    
    
    
    
    
    
    
    
    
    Total
    
    $
    88,133
    
    
    
    
    $
    90,060
    
    
    
    
    
    
    $
    
 *
    
    OCI stands for other comprehensive income (loss).
 F-47




---



##### Table of Contents



Derivative instruments not designated as hedging instruments relationships
 Millions of yen2011Location of gains (losses) recognized
    
    Amount of gains (losses)in income on derivatives
    
    recognizedForwards contracts
    
    Other income (expenses), net: Other, net
    
    ¥
    (1,411
    )Option contracts
    
    Other income (expenses), net: Other, net
    
    
    (9
    )Interest
rate swaps, cross-currency swaps
and interest rate cap agreements
    
    Cost of sales
    
    
    (455
    )Other income (expenses), net: Other, net
    
    
    2,816Total
    
    
    
    ¥
    941
 Millions of yen2010Location of gains (losses) recognized
    
    Amount of gains (losses)in income on derivatives
    
    recognizedForwards contracts
    
    Other income (expenses), net: Other, net
    
    ¥
    (972
    )Option contracts
    
    Other income (expenses), net: Other, net
    
    
    3Interest
rate swaps, cross-currency swaps
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)in income on derivatives
    
    recognizedForwards 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
    )
 Thousands of U.S. dollars2011Location of gains (losses) recognized
    
    Amount of gains (losses)in income on derivatives
    
    recognizedForwards contracts
    
    Other income (expenses), net: Other, net
    
    $
    (17,000
    )Option contracts
    
    Other income (expenses), net: Other, net
    
    
    (109
    )Interest
rate swaps, cross-currency swaps
and interest rate cap agreements
    
    Cost of sales
    
    
    (5,482
    )Other income (expenses), net: Other, net
    
    
    33,928Total
    
    
    
    $
    11,337
 F-48




---



##### Table of Contents



20. Fair Values 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
   Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    Estimatedamount
    
    
    fair value
    
    
    amount
    
    
    fair value
    
    
    amount
    
    
    fair valueInvestment securities, marketable equity securities
    
    ¥
    49,372
    
    
    ¥
    49,372
    
    
    ¥
    47,178
    
    
    ¥
    47,178
    
    
    $
    594,843
    
    
    $
    594,843Long-term debt, including current portion
    
    
    413,760
    
    
    
    412,375
    
    
    
    462,941
    
    
    
    460,916
    
    
    
    4,985,060
    
    
    
    4,968,373Derivatives:Forward and optionsAssets
    
    
    423
    
    
    
    423
    
    
    
    181
    
    
    
    181
    
    
    
    5,096
    
    
    
    5,096Liabilities
    
    
    2,968
    
    
    
    2,968
    
    
    
    2,078
    
    
    
    2,078
    
    
    
    35,759
    
    
    
    35,759Interest rate swaps, cross-currency swap and
interest rate cap agreementsAssets
    
    
    10,608
    
    
    
    10,608
    
    
    
    9,172
    
    
    
    9,172
    
    
    
    127,808
    
    
    
    127,808Liabilities
    
    
    1,008
    
    
    
    1,008
    
    
    
    2,550
    
    
    
    2,550
    
    
    
    12,145
    
    
    
    12,145
 Limitations
  F-49




---



##### Table of Contents



21.
    
    Fair value measurements
  Level 1
    
    Quoted prices in active markets for identical assets or liabilities
 Level 2
    
    Inputs other than quoted prices included within Level 1 that are observable for
the assets or liabilities, either directly or indirectly
 Level 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, 2011
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalAssetsInvestment securities available for saleManufacturing industry
    
    ¥
    30,219
    
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    30,219Financial
service industry
    
    
    16,439
    
    
    
    
    
    
    
    
    
    
    
    16,439Other
    
    
    2,714
    
    
    
    
    
    
    
    
    
    
    
    2,714DerivativesForward contracts
    
    
    
    
    
    
    416
    
    
    
    
    
    
    
    416Option contracts
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    7Interest rate swaps,
cross currency swap and
interest rate cap
agreements
    
    
    
    
    
    
    10,608
    
    
    
    
    
    
    
    10,608Total Assets
    
    ¥
    49,372
    
    
    ¥
    11,031
    
    
    ¥
    
    
    
    ¥
    60,403LiabilitiesDerivativesForward contracts
    
    ¥
    
    
    
    ¥
    2,968
    
    
    ¥
    
    
    
    ¥
    2,968Interest rate swaps,
cross currency swap and
interest rate cap
agreements
    
    
    
    
    
    
    1,008
    
    
    
    
    
    
    
    1,008Other
    
    
    
    
    
    
    26,665
    
    
    
    859
    
    
    
    27,524Total Liabilities
    
    ¥
    
    
    
    ¥
    30,641
    
    
    ¥
    859
    
    
    ¥
    31,500
 F-50




---



##### Table of Contents



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
    
    
    
    
    
    
    
    9,172Total 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
 Thousands of U.S. dollarsAt March 31, 2011
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalAssetsInvestment securities available for saleManufacturing industry
    
    $
    364,084
    
    
    $
    
    
    
    $
    
    
    
    $
    364,084Financial service industry
    
    
    198,060
    
    
    
    
    
    
    
    
    
    
    
    198,060Other
    
    
    32,699
    
    
    
    
    
    
    
    
    
    
    
    32,699DerivativesForward contracts
    
    
    
    
    
    
    5,012
    
    
    
    
    
    
    
    5,012Option contracts
    
    
    
    
    
    
    84
    
    
    
    
    
    
    
    84Interest rate swaps,
cross currency swap and
interest rate cap
agreement
    
    
    
    
    
    
    127,808
    
    
    
    
    
    
    
    127,808Total Assets
    
    $
    594,843
    
    
    $
    132,904
    
    
    $
    
    
    
    $
    727,747LiabilitiesDerivativesForward contracts
    
    $
    
    
    
    $
    35,759
    
    
    $
    
    
    
    $
    35,759Interest rate swaps,
cross currency swap and
interest rate cap
agreement
    
    
    
    
    
    
    12,145
    
    
    
    
    
    
    
    12,145Other
    
    
    
    
    
    
    321,265
    
    
    
    10,349
    
    
    
    331,614Total Liabilities
    
    $
    
    
    
    $
    369,169
    
    
    $
    10,349
    
    
    $
    379,518
 Investment securities available for sale
  Derivatives (Notes 19 and 20)
  F-51




---



##### Table of Contents



Other
   Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Balance at beginning of year
    
    ¥
    (2,280
    )
    
    ¥
    919
    
    
    ¥
    3,015
    
    
    $
    (27,470
    )Total gains or losses (realized/unrealized)
    
    
    219
    
    
    
    1,543
    
    
    
    355
    
    
    
    2,639Included in earnings
    
    
    6
    
    
    
    1,605
    
    
    
    349
    
    
    
    73Included in other comprehensive income (loss)
    
    
    213
    
    
    
    (62
    )
    
    
    6
    
    
    
    2,566Purchases, issuance and settlements
    
    
    1,202
    
    
    
    (4,742
    )
    
    
    (2,451
    )
    
    
    14,482Balance at end of year
    
    ¥
    (859
    )
    
    ¥
    (2,280
    )
    
    ¥
    919
    
    
    $
    (10,349
    )
  Assets and liabilities that are measured at fair value on a non-recurring basis
   F-52




---



##### Table of Contents



22. Business Segment and Geographic Information
    Thousands ofMillions of yen
    
    
    U.S. dollarsOperating segments:
    
    2011
    
    
    2010
    
    
    2009
    
    
    2011Net sales:Construction, Mining and Utility EquipmentExternal customers
    
    ¥
    1,615,689
    
    
    ¥
    1,268,575
    
    
    ¥
    1,744,733
    
    
    $
    19,466,132Intersegment
    
    
    2,392
    
    
    
    2,690
    
    
    
    4,653
    
    
    
    28,819Total
    
    
    1,618,081
    
    
    
    1,271,265
    
    
    
    1,749,386
    
    
    
    19,494,951Industrial Machinery and OthersExternal customers
    
    
    227,438
    
    
    
    162,989
    
    
    
    277,010
    
    
    
    2,740,217Intersegment
    
    
    10,916
    
    
    
    15,619
    
    
    
    26,389
    
    
    
    131,518Total
    
    
    238,354
    
    
    
    178,608
    
    
    
    303,399
    
    
    
    2,871,735Elimination
    
    
    (13,308
    )
    
    
    (18,309
    )
    
    
    (31,042
    )
    
    
    (160,337
    )Consolidated
    
    ¥
    1,843,127
    
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    $
    22,206,349Segment profit:Construction, Mining and Utility Equipment
    
    ¥
    220,830
    
    
    ¥
    83,061
    
    
    ¥
    180,455
    
    
    $
    2,660,603Industrial Machinery and Others
    
    
    20,965
    
    
    
    2,998
    
    
    
    12,891
    
    
    
    252,590Total segment profit
    
    
    241,795
    
    
    
    86,059
    
    
    
    193,346
    
    
    
    2,913,193Corporate expenses and elimination
    
    
    (6,823
    )
    
    
    (5,340
    )
    
    
    (4,688
    )
    
    
    (82,205
    )Total
    
    
    234,972
    
    
    
    80,719
    
    
    
    188,658
    
    
    
    2,830,988Impairment loss on long-lived assets
    
    
    5,142
    
    
    
    3,332
    
    
    
    16,414
    
    
    
    61,952Impairment loss on goodwill
    
    
    
    
    
    
    
    
    
    
    2,003
    
    
    
    Other operating income (expenses)
    
    
    (6,901
    )
    
    
    (10,352
    )
    
    
    (18,293
    )
    
    
    (83,145
    )Operating income
    
    
    222,929
    
    
    
    67,035
    
    
    
    151,948
    
    
    
    2,685,891Interest and dividend income
    
    
    4,493
    
    
    
    6,158
    
    
    
    8,621
    
    
    
    54,133Interest expense
    
    
    (6,475
    )
    
    
    (8,502
    )
    
    
    (14,576
    )
    
    
    (78,012
    )Other-net
    
    
    (1,138
    )
    
    
    288
    
    
    
    (17,211
    )
    
    
    (13,711
    )Consolidated income before income taxes and equity
in earnings of affiliated companies
    
    ¥
    219,809
    
    
    ¥
    64,979
    
    
    ¥
    128,782
    
    
    $
    2,648,301Segment assets:Construction, Mining and Utility Equipment
    
    ¥
    1,859,004
    
    
    ¥
    1,682,542
    
    
    ¥
    1,639,720
    
    
    $
    22,397,638Industrial Machinery and Others
    
    
    270,736
    
    
    
    207,551
    
    
    
    254,200
    
    
    
    3,261,880Corporate assets and elimination
    
    
    19,397
    
    
    
    68,962
    
    
    
    75,139
    
    
    
    233,699Consolidated
    
    ¥
    2,149,137
    
    
    ¥
    1,959,055
    
    
    ¥
    1,969,059
    
    
    $
    25,893,217Depreciation and amortization:Construction, Mining and Utility Equipment
    
    ¥
    80,780
    
    
    ¥
    82,508
    
    
    ¥
    87,260
    
    
    $
    973,253Industrial Machinery and Others
    
    
    7,662
    
    
    
    7,707
    
    
    
    9,981
    
    
    
    92,313Consolidated
    
    ¥
    88,442
    
    
    ¥
    90,215
    
    
    ¥
    97,241
    
    
    $
    1,065,566Capital investment:Construction, Mining and Utility Equipment
    
    ¥
    92,049
    
    
    ¥
    92,979
    
    
    ¥
    152,803
    
    
    $
    1,109,024Industrial Machinery and Others
    
    
    5,689
    
    
    
    3,212
    
    
    
    9,709
    
    
    
    68,542Consolidated
    
    ¥
    97,738
    
    
    ¥
    96,191
    
    
    ¥
    162,512
    
    
    $
    1,177,566
 F-53




---



##### 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 logisticsb)
    
    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. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Impairment
loss on long-lived assetsConstruction, Mining and Utility Equipment
    
    ¥
    4,969
    
    
    ¥
    3,063
    
    
    ¥
    13,998
    
    
    $
    59,868Industrial Machinery and Others
    
    
    173
    
    
    
    269
    
    
    
    2,416
    
    
    
    2,084Total
    
    ¥
    5,142
    
    
    ¥
    3,332
    
    
    ¥
    16,414
    
    
    $
    61,952Impairment loss on goodwillConstruction, Mining and Utility Equipment
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    2,003
    
    
    $
    Industrial Machinery and Others
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    
    
    
    ¥
    
    
    
    ¥
    2,003
    
    
    $
    
 F-54




---



##### Table of Contents



Geographic information:
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Net sales to external customers:Japan
    
    ¥
    349,184
    
    
    ¥
    323,813
    
    
    ¥
    452,172
    
    
    $
    4,207,036The Americas
    
    
    397,427
    
    
    
    323,984
    
    
    
    503,450
    
    
    
    4,788,277Europe and CIS
    
    
    165,418
    
    
    
    127,377
    
    
    
    284,029
    
    
    
    1,992,988China
    
    
    428,208
    
    
    
    270,870
    
    
    
    236,226
    
    
    
    5,159,133Asia (excluding Japan, China) and Oceania
    
    
    398,366
    
    
    
    299,864
    
    
    
    335,574
    
    
    
    4,799,590Middle East and Africa
    
    
    104,524
    
    
    
    85,656
    
    
    
    210,292
    
    
    
    1,259,325Consolidated net sales
    
    ¥
    1,843,127
    
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    $
    22,206,349
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Net sales to external customers:Japan
    
    ¥
    641,502
    
    
    ¥
    498,568
    
    
    ¥
    831,569
    
    
    $
    7,728,939U.S.A.
    
    
    391,380
    
    
    
    311,170
    
    
    
    469,047
    
    
    
    4,715,422Europe and CIS
    
    
    175,217
    
    
    
    141,510
    
    
    
    269,139
    
    
    
    2,111,048China
    
    
    332,581
    
    
    
    238,102
    
    
    
    174,466
    
    
    
    4,007,000Others
    
    
    302,447
    
    
    
    242,214
    
    
    
    277,522
    
    
    
    3,643,940Total
    
    ¥
    1,843,127
    
    
    ¥
    1,431,564
    
    
    ¥
    2,021,743
    
    
    $
    22,206,349Property, plant and equipment:Japan
    
    ¥
    354,797
    
    
    ¥
    380,592
    
    
    ¥
    400,554
    
    
    $
    4,274,663U.S.A.
    
    
    63,972
    
    
    
    62,637
    
    
    
    68,170
    
    
    
    770,747Europe and CIS
    
    
    29,868
    
    
    
    35,811
    
    
    
    28,207
    
    
    
    359,855Others
    
    
    59,750
    
    
    
    46,060
    
    
    
    28,531
    
    
    
    719,879Total
    
    ¥
    508,387
    
    
    ¥
    525,100
    
    
    ¥
    525,462
    
    
    $
    6,125,144
   F-55




---



##### Table of Contents



23. Supplementary Information to Balance Sheets
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Prepaid expenses
    
    ¥
    4,318
    
    
    ¥
    3,804
    
    
    $
    52,024Short-term loans receivable:Affiliated companies
    
    
    723
    
    
    
    2,222
    
    
    
    8,711Other
    
    
    1,427
    
    
    
    914
    
    
    
    17,193Total
    
    ¥
    2,150
    
    
    ¥
    3,136
    
    
    $
    25,904Deferred income taxes
    
    
    55,953
    
    
    
    43,390
    
    
    
    674,132Other
    
    
    90,360
    
    
    
    62,121
    
    
    
    1,088,675Total
    
    ¥
    152,781
    
    
    ¥
    112,451
    
    
    $
    1,840,735
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2011Accrued expenses
    
    ¥
    80,195
    
    
    ¥
    82,449
    
    
    $
    966,205Deferred income taxes
    
    
    380
    
    
    
    128
    
    
    
    4,578Other
    
    
    118,693
    
    
    
    100,747
    
    
    
    1,430,036Total
    
    ¥
    199,268
    
    
    ¥
    183,324
    
    
    $
    2,400,819
 F-56




---



##### Table of Contents



24. Supplementary Information to Statements of Income
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Research and development expenses
    
    ¥
    49,005
    
    
    ¥
    46,449
    
    
    ¥
    53,736
    
    
    $
    590,422Advertising costs
    
    
    2,627
    
    
    
    2,417
    
    
    
    4,678
    
    
    
    31,651
  Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Shipping and handling costs
    
    ¥
    37,706
    
    
    ¥
    25,697
    
    
    ¥
    46,264
    
    
    $
    454,289
   Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Gain on sale of property
    
    ¥
    2,432
    
    
    ¥
    1,036
    
    
    ¥
    630
    
    
    $
    29,301Loss on disposal or sale of fixed assets*
    
    
    (1,553
    )
    
    
    (2,907
    )
    
    
    (5,922
    )
    
    
    (18,711
    )Other*
    
    
    (7,780
    )
    
    
    (8,481
    )
    
    
    (13,001
    )
    
    
    (93,735
    )Total
    
    ¥
    (6,901
    )
    
    ¥
    (10,352
    )
    
    ¥
    (18,293
    )
    
    $
    (83,145
    )
 
 *
    
    For the fiscal year ended March 31, 2011, Loss on disposal or sale of fixed assets and Other
included losses of ¥73 million ($880 thousand), ¥2,787 million ($33,578 thousand) respectively
resulted from the Great East Japan Earthquake.   Thousands ofMillions of yen
    
    
    U.S. dollars2011
    
    
    2010
    
    
    2009
    
    
    2011Interest income-Installment receivables
    
    ¥
    503
    
    
    ¥
    1,206
    
    
    ¥
    1,843
    
    
    $
    6,060Other
    
    
    2,670
    
    
    
    3,785
    
    
    
    5,242
    
    
    
    32,169Dividends
    
    
    1,320
    
    
    
    1,167
    
    
    
    1,536
    
    
    
    15,904Interest expense
    
    
    (6,475
    )
    
    
    (8,502
    )
    
    
    (14,576
    )
    
    
    (78,012
    )Net gain (loss) from sale of investment securities
    
    
    (54
    )
    
    
    679
    
    
    
    (3,543
    )
    
    
    (651
    )Exchange gain (loss), net
    
    
    (4,193
    )
    
    
    1,066
    
    
    
    (11,802
    )
    
    
    (50,518
    )Other
    
    
    3,109
    
    
    
    (1,457
    )
    
    
    (1,866
    )
    
    
    37,458Total
    
    ¥
    (3,120
    )
    
    ¥
    (2,056
    )
    
    ¥
    (23,166
    )
    
    $
    (37,590
    )
 F-57




---



##### Table of Contents



25. Valuation and Qualifying Accounts
  Thousands ofMillions of yen
    
    
    U.S. dollarsAllowance for doubtful receivables
    
    2011
    
    
    2010
    
    
    2009
    
    
    2011Balance at beginning of fiscal
period
    
    ¥
    14,941
    
    
    ¥
    15,330
    
    
    ¥
    11,470
    
    
    $
    180,012AdditionsCharged to costs and expenses
    
    
    5,307
    
    
    
    7,457
    
    
    
    7,091
    
    
    
    63,940Charged to other accounts
    
    
    1,068
    
    
    
    957
    
    
    
    23
    
    
    
    12,867Deductions
    
    
    5,523
    
    
    
    8,803
    
    
    
    3,254
    
    
    
    66,542Balance at end of fiscal period
    
    ¥
    15,793
    
    
    ¥
    14,941
    
    
    ¥
    15,330
    
    
    $
    190,277
  Thousands ofMillions of yen
    
    
    U.S. dollarsValuation allowance for deferred tax assets
    
    2011
    
    
    2010
    
    
    2009
    
    
    2011Balance at beginning of fiscal period
    
    ¥
    49,081
    
    
    ¥
    31,420
    
    
    ¥
    22,435
    
    
    $
    591,337AdditionsCharged to costs and expenses
    
    
    7,596
    
    
    
    21,784
    
    
    
    19,784
    
    
    
    91,518Charged to other accounts
    
    
    
    
    
    
    8
    
    
    
    587
    
    
    
    Deductions
    
    
    19,987
    
    
    
    4,131
    
    
    
    11,386
    
    
    
    240,807Balance at end of fiscal period
    
    ¥
    36,690
    
    
    ¥
    49,081
    
    
    ¥
    31,420
    
    
    $
    442,048
  F-58




---



##### 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)
    
    
    9Exhibit (8)
    
    Significant subsidiaries of Komatsu
Ltd., including
additional subsidiaries that management has deemed to be
significant, as of March 31, 2011: Incorporated by
reference to Organizational Structure in Item 4.
Information on the CompanyExhibit (11)
    
    Code of Ethics for Senior Officers (Translation)
    
    
    15Exhibit (12) a.
    
    Certification of the CEO of the Company required pursuant to
Rule 15d-14(a)
    
    
    19Exhibit (12) b.
    
    Certification of the CFO of the Company required pursuant to
Rule 15d-14(a)
    
    
    20Exhibit (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.
    
    
    21Exhibit (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.
    
    
    22