MINExpo 2016

Rod Schrader, Chairman and CEO

Komatsu America Corp
Komatsu Confidential 1
 Komatsu Business Results 1Q 2016 (April – June)
% : Profit ratio
Sales and Profit [ ]: Sales after elimination of inter-segment transactions

1Q FY2015 1Q FY2016 Vs. 1Q FY2015

• Consolidated net US $M Billions of yen ¥121.3/USD ¥109.8/USD Increase
sales declined by ¥133.0/EUR ¥124.3/EUR (decrease) %Change

12.7% from the 3,677.7 446.1 3,544.6 389.2 (133.0) (56.8) (3.6)% (12.7)%
corresponding period Construction, Mining & utility equipment [388.9] 392.3 [343.4] 345.1 [(45.5)] (47.2) [(11.7%)] (12.0)%
Net
a year ago, to Sales
Retail finance [13.0] 13.8 [11.3] 11.8 [(1.7)] (1.9) [(13.4%)] (14.1)%
Industrial machinery & others [44.1] 44.7 [34.5] 34.7 [(9.5)] (9.9) [(21.7%)] (22.3)%
JPY389.2 billion.
Elimination (4.8) (2.5) +2.2 -

• Operating income Segment profit 11.1% 49.6 7.5% 29.0 (20.6) (41.5)%

dropped 40.1% to 10.8% 42.4 7.6% 26.3 (16.0) (37.8)%

Construction, Mining & utility equipment
JPY29.7 billion. Retail finance 27.3% 3.7 15.9% 1.8 (1.8) (49.9)%
Industrial machinery & others 7.3% 3.2 4.9% 1.7 (1.5) (47.8)%
Operating income
Corporate & elimination 0.1 (0.9) (1.1) -
ratio was 7.7%, down
3.4 percentage Other operating income (expenses) 0.1 0.7 +0.6 -

points. Operating income 409.7 49.7 270.5 29.7 (139.2) (19.9) (34.0)% (40.1)%
Profit ratio 11.1% 7.7% (3.4) pts. -
• Net income 1.2 (5.5) (6.8) -
Other income (expenses)
attributable to 50.9 24.2 (26.7) (52.5)%
Net income before income taxes
Komatsu Ltd.
Net income * 267.9 32.5 141.2 15.5 (126.7) (16.9) (52.7)% (52.1)%
dropped 52.1% to
* Upon adoption of ASC 810, “Net income” is equivalent to “Net income attributable to Komatsu Ltd.”
JPY15.5 billion
Komatsu Confidential 2
 Construction, Mining & Utility Equipment Sales by Region
1Q 2016 (April – June)
• Sales to outside
Apr.- Vs. April - June, 2015 customers declined
Jun., Billions of yen
2015 by 11.7% from the
388.9 Plus 400 388.9
Minus
corresponding period
Africa 6%
(7.9) (0.2) +4.0 (12.3) Middle
343.4 a year ago, to
350 East 4%
(11.7)% (0.3)% (1.7) +34.9% (23.5)%
Oceania
Africa 5% JPY343.4 billion.
(4.5)% (45.5) 7% Middle 3%
+0.0 East
(9.4) +0.5%
(11.7)%
300 Asia
Strategic Oceania 7% • Except for CIS and
(1.6) Markets
(16.1)% (6.3)% (8.0) 14% 54% Asia
Strategic China, sales declined
(46.8)% 12% Markets
250
China 5%
50% in all regions. Sales
(8.3) CIS 3% China 5%
(35.0)% Latin CIS 5% dropped sharply in
America Latin
Apr.-
200 America
Strategic Markets,
Jun., 15%
2016
14% such as Asia and
343.4 Europe Europe Latin America,
150 10%
10%
Billions
of yen
Japan
North
America
Europe
Latin
America
CIS China Asia Oceania
Middle
East
Africa Total North
increasing the share
North
Apr.-Jun.,
67.5 75.8 37.5 58.4 11.5 18.6 52.6 25.6 17.2 23.7 388.9 100
America
Traditional America Traditional
of Traditional Markets
2015 19%
Apr.-Jun.,
Markets
46%
22% Markets
50%
in total sales to 50%.
2016 59.6 75.6 35.8 49.0 15.6 18.7 40.2 24.0 9.1 15.4 343.4
50
Japan Japan
Traditional Markets Strategic Markets 17% 17%
0
Apr.-Jun., 2015 Apr.-Jun., 2016
Komatsu Confidential 3
 Projection for FY2016
No change from our announcement of April 27, 2016

• Consolidated net FY2016

FY2015 Change
sales will decrease (Projection)
Billions of yen 120.8/USD 105/USD
by 9.2% from 132.4/EUR
19.0/RMB
119/EUR
16.2/RMB
Increase
(decrease) % Change
FY2015, to
Net sales 1,854.9 1,685.0 (169.9) (9.2)%
JPY1,685.0 billion.
Segment profit 202.0 155.0 (47.0) (23.3)%
• Operating income Other operating income
6.5 (5.0) (11.5) -
(expenses)
will decline by
28.1% to JPY150.0 Operating income 208.5 150.0 (58.5) (28.1)%
billion. Operating Profit ratio 11.2% 8.9% (2.3)pts. -
income ratio will Other income (expenses) (3.6) (5.0) (1.3) -
translate into 8.9%, Net income before income
taxes
204.8 145.0 (59.8) (29.2)%
down 2.3 points.
Net income * 137.4 92.0 (45.4) (33.1)%
• Net income will drop
by 33.1% to JPY92.0 ROE 9.0% 6.2% (2.8)pts.
billion. Cash dividends per share 58yen 58yen +/- 0 yen

Consolidated payout ratio 39.8% 59.4%

* Upon adoption of ASC 810, "Net income" is equivalent to "Net income attributable to Komatsu Ltd."
Komatsu Confidential 4
 Construction and Mining Equipment Demand and Outlook
• In the first 3-Month period Annual demand for 7 major products Quarterly demand for 7 major products
of FY2016, global demand
declined by 11% from the
corresponding period a
year ago. Units
FY15: -14% Growth rate Units Growth rate
FY16: -5%～-10% (Initial projection) 150,000 120%
600,000 60%

• While demand was steady +45% 90%

in some regions, global
500,000 40%
120,000 60%
demand was especially Index：FY07 = 100

affected by a drop in +16% +8%+7%

30%
400,000 +15% 20% +2%
Japan, North America, +13%
90,000
-1% -2%
-10%-15%
-3% -5% -4%
-9% -12%
-9%
-11% 0%
97 -19%-16%
-18%
China, the Middle East 100
92 90
93
-30%
and Indonesia. 300,000
80
+5%
+3%
84 0%
72
64 60,000 -60%
• We project that global -7% -9%
200,000 -14% -20%
demand should remain as -20% -20%
-90%

we projected at the start 30,000 -120%

of the fiscal year, even 100,000 -40%

-150%
though there will be some
ups and downs in some 0 -60%
0 -180%

FY12/1Q

FY12/2Q

FY12/3Q

FY12/4Q

FY13/1Q

FY13/2Q

FY13/3Q

FY13/4Q

FY14/1Q

FY14/2Q

FY14/3Q

FY14/4Q

FY15/1Q

FY15/2Q

FY15/3Q

FY15/4Q

FY16/1Q
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
regions. Initial
projection

Note: Estimated by Komatsu Komatsu Confidential 5

 Demand for Mining Equipment and Outlook
Annual demand for Mining equipment Quarterly demand for Mining equipment
• In the first 3-Month
FY16：-15%～-20% (Initial projection) period of FY2016,
Units Y-o-Y change
global demand for
Units

10,000
Y-o-Y change
3,000 100% Mining equipment
+39% +51% dropped 35% from
50%
+6% +15% 50%
-25%
-16%
0%
2,500 +25% the corresponding
8,000 -5% +5%
-2%
-50%
-11%
-22%
-15% -12% 0%
period a year ago.
-34% 2,000 -32%
-51% -45%
6,000
-100% -54%
-33% -26%
-25% -24%
-50%
• With respect to full-
-35%
-150% 1,500 -55% -49% year demand, we
-200%
-100% are not changing
4,000
1,000 our projection
-250% -150%
made at the start of
-300%
2,000
500
-200%
the fiscal year.
-350%

0 -400% 0 FY12/1Q -250%

2Q
3Q
4Q
FY13/1Q
2Q
3Q
4Q
FY14/1Q
2Q
3Q
4Q
FY15/1Q
2Q
3Q
4Q
FY16/1Q
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Initial
projection

・Dump trucks: 75 tons (HD785) and larger

・Bulldozers: 525HP (D375) and larger
・Excavators: 200 tons (PC2000) and larger
・Wheel loaders: 810HP (WA800) and larger
・Motor graders: 280HP (GD825) and larger

Note: Demand estimated by Komatsu Komatsu Confidential 6

 Sales of Mining Equipment
Annual sales of Mining equipment Quarterly sales of Mining equipment
(incl. Parts and service) (incl. Parts and service)
• For the first 3-Month
period of FY2016,
sales declined by
Billions
15% from the Billions
of yen
Y-o-Y change of yen Y-o-Y change

corresponding 800
+22%
+33% 50% 250
+24%
+20%
50%

+18% +15% +11% +20%

period a year ago, -1% +4%
-3% -4% -4%
-18% 0% -1% -4% -7% 0%
to JPY98.3 billion, 200
-15%
-14% 614.5 -10% -12% -12% -12%
as affected by the 600 -17%
-27%
-23% -19%
554.0 -50% -50%
Japanese yen’s 506.3 163.4
499.3 155.2 157.0
appreciation and 447.3 -100%
150
139.1
150.5
-100%
422.0 417.0 128.8
reduced sales of

Equipment
129.6

206.8
394.1 120.9

Equipment
400 119.2 130.8
118.7 115.9 113.7

140.6
361.5
Parts. 356.5 110.1 107.5

115.6
-150% 107.2 -150%

37.5 23.5
98.3

33.6 23.2
100

34.4 22.9

33.2
91.7

35.0 22.1
96.3

Service, etc
84.2

Service, etc
-200% -200%
200

19.4 45.7
50

214.9

56.9
54.9
-250%

194.3
-250%

52.7
196.1

50.4
Parts

Parts
0 -300% 0 -300%

FY12/1Q
2Q
3Q
4Q
FY13/1Q
2Q
3Q
4Q
FY14/1Q
2Q
3Q
4Q
FY15/1Q
2Q
3Q
4Q
FY16/1Q

FY15/1Q
2Q
3Q
4Q
FY16/1Q
FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY14

FY15

FY16

Initial Initial
projection projection Komatsu Confidential 7
 Sales of Parts
Annual sales of Parts Quarterly sales of Parts
• For the first 3-
Month period of
Billions
of yen
Y-o-Y change
(%)
Billions
of yen
Y-o-Y change
(%)
FY2016, sales of
600
140 Parts declined by
+18% +18% +19%
20%
+13% +14% +11%
+11%+12%
+14%
20% 14% from the
+6% +8%
500
+2% +1% +3% 120
-1%
+3% +4% +5% +7%
+1% corresponding
0% -3% -3%
-8%
102.9
-7% 0% period a year ago.
100.0 102.1 101.3 -14%
397.5 100
400
-10%
387.2
364.7
-20% 94.4
88.8 92.4
92.8 98.8 95.3
87.8
-20% • Sales declined
91.6

49.8
363.7 88.1
85.2 mainly due to the

49.2

47.2
80.3
317.0319.5 80

46.1
46.4
182.6

-40% 79.7 Japanese yen’s

44.9
45.7
45.2
191.1

-40%

45.1
74.3

44.4
170.4

300
176.3

42.1
44.2
280.0

40.0
259.5 265.0

37.3

41.8
appreciation and

36.0
148.0
159.0

238.0

34.7
-60% 60
the rate of increase
141.5

-60%
152.0
154.5

120.0

200
in hours of

54.9

56.9
53.1
-80% 40

50.8

52.7
-80%
machine operation

50.4
46.4
47.3
214.9

45.8

45.7
196.1

46.3
194.3
187.4

49.2
171.5

45.2

44.6
43.7 becoming smaller.
158.0

100
138.5

43.0

39.6
-100%
118.0

20
113.0
105.0

-100%

0 -120% 0 -120%
FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY12/1Q
2Q
3Q
4Q
FY13/1Q
2Q
3Q
4Q
FY14/1Q
2Q
3Q
4Q
FY15/1Q
2Q
3Q
4Q
FY16/1Q
Initial
projection Komatsu Confidential 8
 Global Production by Commodity and YOY Change
Mt YOY % change Mt YOY % change

40 Coking Coal 40% 120

Thermal Coal
40%

35 20% 20%
100
30 0% 0%
80
25 -20% -20%

20 -40% 60 -40%

15 -60% -60%
40
10 -80% -80%
20
5 -100% -100%

0 -120% 0 -120%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016
Calendar Year Calendar Year
Mt YOY % change ‘000 t YOY % change
400 40%
Iron ore 1,600 40%
350 20%
Copper
1,400 20%
300 0%
1,200 0%
250 -20%
1,000 -20%
200 -40%
800 -40%
150 -60%
600 -60%
100 -80%
400 -80%
50 -100%
200 -100%
0 -120%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 0 -120%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2010 2011 2012 2013 2014 2015 2016
2010 2011 2012 2013 2014 2015 2016
Calendar Year
Calendar Year Komatsu Confidential 9
 Mining Commodity Prices Source: AME Group

Coking Coal / Iron Ore (US$/ton) Copper (US$/ton)

9,000
290

8,000
240 Coking Coal
Iron Ore
190 7,000

140 6,000

90 5,000

40 4,000
2010
2011
2012
2013
2014
Jan
May
Sep
Jan
Feb
Mar
Apr
May
Jun
Jul
1
3
5
10
12
15
17
19
22
23
24
25
26
29
30
31

2010
2011
2012
2013
2014
Jan
May
Sep
Jan
Feb
Mar
Apr
May
Jun
Jul
1
3
5
10
12
15
17
19
22
23
24
25
26
29
30
31
August August
2015 2016 2015 2016

1,800
Gold (US$/oz) Thermal Coal (US$/ton)
135
1,700
125

1,600 115

1,500 105

1,400 95

85
1,300
75
1,200
65
1,100
55
1,000
45
2010
2011
2012
2013
2014
Jan
May
Sep
Jan
Feb
Mar
Apr
May
Jun
Jul
1
3
5
10
12
15
17
19
22
23
24
25
26
29
30
31

2010
2011
2012
2013
2014
Jan
May
Sep
Jan
Feb
Mar
Apr
May
Jun
Jul
1
3
5
10
12
15
17
19
22
23
24
25
26
29
30
31
August August
2015 2016 2015 2016

Commodity prices appear to have bottomed out in 2Q 2016, showing signs of slight recovery, though
far from peak levels of 2010-2011. Commodity prices are expected to show gradual improvement.
Komatsu Confidential 10
 Mining Equipment Demand Outlook
While the industry is currently facing challenges, mining equipment demand is expected to recover
in the mid to long term.

Commodity Price and Mining Equipment Demand

Comm odity
Units
10000 15
Price I n d ex
CY2 0 0 0 = 1 .0
Demand of
Price Forecast Source:
8000 ME I r on Ore World Bank 10
Thermal Coal
Copper
6000 5

4000 0

2000 (5)

0 (10)

Komatsu Confidential 11
 Komatsu’s Mid-Range Management Plan
Komatsu Group employees worldwide will team up with distributors, suppliers and other partners, innovate customers’
GEMBA (workplace) together with them, and provide innovation designed to create new values, thereby working for
growth of our core businesses of construction and mining equipment as well as industrial machinery toward our 100th
anniversary and beyond.

Integrated power of Customers, Distributors, Everything begins Our GEMBA is found

Suppliers and Komatsu Group employees with GEMBA all around the world

Growing towards our 100th

anniversary and beyond

Komatsu Confidential 12
 Basic Strategies of our Mid-Range Management Plan
In response to our surrounding environment and tasks, we will work to achieve sustainable growth by focusing efforts and through
open innovation, when applicable, in 1) Growth strategies based on innovation, 2) Growth strategies of existing businesses, and
3) Structural reforms designed to reinforce the business foundation, centering on DANTOTSU products, service and solutions.

1. Growth Strategies Based on Innovation

• Development of next-generation construction and mining equipment as well as next-generation components
• Deployment of SMARTCONSTRUCTION and development of next-generation KOMTRAX
• Deployment of AHS*1 and reinforcement of platform for mining solutions
• Development of DANTOTSU industrial machinery by promoting in-house production of key components
• Gigaphoton’s development of EUV*2 and new products
*1: AHS stands for Autonomous Haulage System and means a system to operate unmanned dump trucks.
*2: EUV stands for Extreme Ultraviolet, and EUV light source is a next-generation semiconductor manufacturing technology.

2. Growth Strategies of Existing Businesses

• Contributions to expanding sales by developing new products, incl. DANTOTSU products
• Expansion of earnings in the value chain
• Expansion of the mining equipment business
DANTOTSU
• Expansion of the construction equipment business (DANTOTSU No. 1 in Asia, enhancement of global
Products presence in quarrying and cement production companies, expansion of application –specific models, etc.)
• Expansion of the industrial machinery business
• Expansion of the forest machinery business
• M&A

IoT at Komatsu IoT enables connection and sharing of

real-time information concerning all
processes from production to sales.
Production being connected Plants being connected to
market information
3. Structural Reforms Designed to Reinforce the Business Foundation
• Production reforms through connected plants
• Continuous reduction of costs (production and fixed costs)
• Reforms of spare parts operation
• Lean and powerful development
• Development of human resources with global perspective and framework to promote diversity for
sustainable growth Komatsu Confidential 13
 Growth Toward our 100th Anniversary and Beyond
Although we assume that demand will remain sluggish for the time being, we will achieve our growth above the industry’s
average by promoting growth based on innovation and of existing businesses.

Komatsu Confidential 14
 Targets of Mid-range Management Plan
• In addition to our conventional top-level profitability and financial position in the industry, we will work for growth above the
industry’s average, even while demand will remain sluggish.
• We will place more importance on redistribution of profits to shareholders, and set the goal of a consolidated payout ratio of
40% or higher, and maintain the policy of not decreasing dividends as long as the ratio does not surpass 60%.
• By segmenting the retail finance business, we will enhance transparency of profitability and financial position of consolidated
and retail finance business performance. The retail finance business will set up its own target figures.
Stance on Targets Targets
Growth • Aim at a growth rate above the industry’s average.

Profitability • Aim at an Industry’s top-level operating income ratio.

Efficiency • Aim at 10%-level ROE.

• Keep a fair balance between investment for growth and shareholder

return (incl. stock buyback), while placing main priority on
Shareholder investment.
return • Set the goal of a consolidated payout ratio of 40% or higher, and
maintain the policy of not decreasing dividends as long as the ratio
does not surpass 60%.
[Use of funds]
Financial
• Aim at industry’s top-level financial position.
position
• ROA: 2.0% or above
Retail finance business
• 5.0 or under for net debt-to-equity ratio

Komatsu Confidential 15
Komatsu at MINExpo 2016

Komatsu Confidential 16
 Komatsu at MINExpo 2016
D375Ai-8 WA600-8
• Intelligent machine control • Meets Tier 4 Final regulation with up
dramatically increases to 9% less fuel consumption
production and operating
efficiency with remote control • New Komatsu bucket design and
option available. auto digging system increases
• More productive & faster productivity by up to 7%
cycle times with 20% more
horsepower in reverse
PC4000
• Highly durable structural
components provide confidence
for life of machine, highest hour
PC4000 has over 140,000 service
hours.
• Komatsu bucket design and front
end geometry provides highest
digging forces in size class.
Komatsu Confidential 17
 Komatsu at MINExpo 2016
930E-5 Innovative Autonomous
• New ergonomically designed operator cab
Haulage Vehicle
• Tier 4 Final engine integrated with fuel-saver
technology for 3-5% less fuel consumed • Haulage vehicle designed to optimize
FrontRunner® Autonomous Haulage System
• Innovative cab-less design showcases
Komatsu’s commitment to inventing the future

Komatsu Confidential 18
 Komatsu at MINExpo 2016

MineAlertTM Guided Spotting

A major source of
Collision Awareness lost productivity is
due to inefficient
• Dynamically provides
operators with
• GPS-based proximity truck spotting guidance to optimum
during loading
detection load location
and dumping
• Uses predictive path • High-precision GPS-
technologies based navigation
• Peer-to-peer • Facilitates double-
communication sided loading
Peer-to-peer • Limited false positives • Increases shovel
communication
productivity potential
• Increases situational up to 34%
awareness
• Patent approved
• Over 3 years of field
Vehicle collisions are one of the top
high-risk incidents in mines
testing • Field trials conducted
• Launching at • Previewing at
MINExpo2016 MINExpo 2016
Komatsu Confidential 19
Acquisition of Joy Global

P&H is one of
Joy Global’s brands

Komatsu Confidential 20
 News Release on September 26, 2016
News Release Komatsu and Joy Global CEOs Talk Commitment
Date: September 26, 2016
to Mining Innovation at MINExpo INTERNATIONAL®2016
Tetsuji (Ted) Ohashi, President and CEO of Komatsu Ltd. (TYO: 6301), and Ted Doheny, President and CEO of Joy Global Inc. (NYSE: JOY), met today at MINExpo INTERNATIONAL® 2016 in
Las Vegas. Both companies have a major presence at this year’s show, the premier exposition of mining equipment and services in the world.
Komatsu and Joy Global in July announced an agreement in which Komatsu will acquire Joy Global. During their meeting Monday, Ohashi and Doheny reaffirmed their commitment to pursue new
innovations that drive customer benefits after the acquisition is complete. The companies are working to finalize the transaction by mid-2017.
“Our customers are sharing very positive feedback about the agreement. Some have approached us at MINExpo to congratulate us on our decision,” Ohashi said. “We are working closely with Joy
Global and relevant authorities to move the process forward.”
Doheny agreed, noting industry recognition of the complementary nature of the two companies’ product and service offerings.
“Many of our customers and other business partners see the benefit of combining companies: a broader offering of products, systems and solutions across a wider scope of mining and construction
applications,” Doheny said. “Both companies believe in having the best products, direct service, being operationally excellent, and having the best people in the world.”
Joining Joy Global with the Komatsu Group will offer several benefits to customers, including:
 A broader line of industry-leading mining and construction equipment for drilling, earthmoving, loading and hauling systems and solutions for both underground and surface mining. Joy
Global’s best in class rope shovels, for example, pair well with Komatsu’s best in class large electric dump trucks.
 Enhanced global customer support through the companies’ mutual commitment and expertise in direct sales and service directly connected via embedded personnel in the mines, and
electronically connected with world class fleet management systems.

“The synergistic collaboration between the companies will drive our innovation and enhance our capacity to provide quality products and
solutions that improve the safety and productivity of mining operations,” Ohashi said. “We will together strive to become an even better, more
invaluable partner for our customers.”
“The combination of two world-class companies offers exciting opportunities to enhance and expand the solutions and services we provide
customers,” Doheny said. “With strengthened capabilities and a continued focus on solving our customers’ toughest challenges, we look
forward to working together to advance the mining industry.”
Caution concerning forward-looking statements: This press release and other statements by Komatsu and Joy Global may include “forward-looking statements” within the meaning of applicable securities laws and regulations. Forward-looking
statements in this release include without limitation statements regarding the expected timing of the completion of the transaction described in the press release, operation of Joy Global’s business following completion of the Acquisition, and statements
regarding the future operation, direction and success of the business. Such statements are qualified by known and unknown risks and uncertainties surrounding future business performance, development and financial standing of Komatsu and Joy
Global, and actual results could differ materially from those currently anticipated. Forward-looking statements may be identified by the use of words such as “believe”, “anticipate”, “expect”, “plan”, “intent”, “may” “will”, “estimate” and “future” and Contact info
other similar expressions, or in particular in the form of discussions of strategies, plans or intentions. Factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to: (i)
uncertainties as to whether or when the transaction will be consummated, (ii) uncertainties as to the approval of Joy Global’s shareholders required in connection with the Acquisition, (iii) the possibility that competing offers will be made, (iv) the
possibility that various closing conditions for the transaction may not be satisfied, (v) the effects of disruption caused by the announcement of this transaction making it difficult to maintain relationships with employees, customers, suppliers and other Komatsu Ltd.
business partners and the potential inability to retain existing Joy Global management upon whom Komatsu will rely, (vi) the risk that stockholder litigation in connection with the transaction may affect the timing of the transaction or result in significant Joy Global Inc.
Akira Satou
costs of defense, indemnification and liability, (vii) other business effects, including the effects of legal systems, accounting principles or other changes in business environment outside of the control of Komatsu or Joy Global, (viii) the risk that anticipated Caley Clinton
PR Manager
synergies and other benefits of the acquisition will not materialize, (ix) financial instability and other changes in economy in general or industry, (x) transaction costs, (xi) costs and availability of financing on favorable terms and future capital needs, (xii) Advertising & PR Manager
2-3-6 Akasaka, Minato-ku,
changes in costs of supplies and raw materials, customer preferences, exchange rates and other national, regional or global economic and financial conditions, (xiii) marketing, regulatory, product liability, supply, competitive, political and other risks, (xiv) caley.clinton@joyglobal.com
actual or contingent liabilities, (xv) changes in and ability to comply with environmental, tax, labor and employment, and other laws and regulations, and (xvi) other risks including but not limited to those set forth under the “risk factor” section in Joy Tokyo 107-8414, Japan
01 414 670 5955
Global’s Annual Report on Form 10–K which was filed with the U.S. Securities and Exchange Commission (the “SEC”) and other material submitted to the SEC (as available from the SEC website free of charge at http://www.sec.gov). TEL:+81-(0)3-5561-2616
http://www.komatsu.com/ www.joyglobal.com
Unless legally required, Komatsu and Joy Global disclaim any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events or otherwise. All forward-looking statements in this
announcement are qualified in their entirety by this cautionary statement.
Information in the news releases is current on the date of the announcement and is subject to change without notice.

Komatsu Confidential 21
 Transaction Rationale
• While the industry is currently facing challenges, Mining equipment demand is expected to recover in the mid to long term as
production and consumption of major commodities increase.
• In surface Mining, demand for larger dump trucks is increasing to improve productivity, and Joy Global, which manufactures larger loaders
that match larger dump trucks, is attractive to Komatsu.
• In hard rock Mining (e.g., gold, copper), we expect a shift from surface to underground Mining, and we can enter into underground Mining
business through acquisition of Joy Global.
Consumption
(Units) Mining Equipment Demand and Index of Major Commodity Consumption (Indexed)

10,000
6.1% 250
鉱山機械需要
Mining Equipment Demand *1 0.0%
8,000 主要鉱物消費量指数(2000年＝100）
Indexed Major Commodity Consumption 6.9% 200
(Production in 2000 indexed to 100) *2
Annual Growth Rate of Indexed
2.2%
6,000 Major Commodity Consumption *3 150
3.0%
4,000 100

2,000 50

0 0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*1: For Komatsu’s mining product lines only *2: Major Commodity＝Thermal coal, met coal, iron ore, copper *3: Average of annual growth rate over the period

200t 240-280t Commodity Production by Mining Type

Demand of Dump Truck by Size 320-345t 345-400t

Commodity Production [indexed]

Underground Mid- / Small-size Players
100% Underground Majors (Super Cave)
Underground Majors (excl. Super Cave)
80%
Surface
60% Increase in Size
40%
20% More Production from
0% Underground Mining Source: Komatsu Estimate
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: Komatsu estimate (dump truck demand) Komatsu Confidential 22

 Overview of Joy Global
• Providing a broad range of mining equipment for both surface and underground mining
Surface Mining Underground Mining (Soft Rock)

Continuous Miner
Continuously mine soft rocks
Dragline
Super-size Loading Machine
Sheerer
Used with Roof
Support;
Roof Support Continuously
Prevent mine mine soft rocks
collapse

Rope Shovel Conveyer

Super-size Loading Machine
Blasthole Drills (Max. Bucket: 70m3)
Open hole for entry Underground Mining (Hard Rock)

Jumbo Drills
Open hole for entry
LHD
(Load, Haul,
Dump Machine)

Hydraulic Breaker
Wheel Loader (Also available for
(Max. Bucket: 40m3) Surface Mining)
Komatsu Confidential 23
 Post-transaction Vision
• Komatsu considers the mining equipment business to be an area with high growth potential in the mid to long term
• Among mining equipment manufacturers, Komatsu and Joy Global share common values and strategies
• Together with Joy Global, Komatsu will strengthen our commitment to customer safety and productivity

Shared Values
Safety, Productivity ($/Ton reduction)
Customer Focus

Super-size Common Strategies Rope Shovel

Hydraulic Excavator 1 1
Direct sales and service model (Surface Mining)
(Surface Mining)
Innovation (ICT, Hybrid products, in- Super-size Wheel
Super-size dump house production of key components) 2 Loader (Surface
truck (Surface 2
Mining)
Mining)
3 Blasthole Drills
Support FY2015 Sales FY2015 Sales (Surface Mining)
Equipment 3 JPY 450 Billion JPY 330 Billion*
(Surface Mining) 4 Longwall Sheerer
(Underground Mining)
Mine Management 4 5 LHD
System (Underground Mining)

Komatsu will further promote innovation at mining jobsites (GEMBA) under a strengthened direct sales and
service model, thereby further contributing to our customers’ safety and productivity.

*Fiscal year ended 2015/10; U$ = JPY 105

Komatsu Confidential 24
 Synergy Example (1): Full Line Offering of Mining Equipment
• Through acquisition of Joy Global,
Komatsu enters the underground
Mining equipment business.
Komatsu Mining
• We will have a broad product Equipment
line-up for surface and
underground Mining customers,
acquiring new products such as
super-size loaders and drills.
Integration of both companies’
technologies will further promote
“Dantotsu” Solution (e.g., ICT,
Automation).

Surface Mining Underground Mining

Equipment Equipment
Hydraulic Wheel Loader Wheel Loader Continuous
Bulldozer dump truck (Mechanical drive) (Electric drive) Rope Shovel Blasthole Drill Dragline Haulage Roof Support Road Header Sheerer LHD
Excavator Miner

✓ ✓ ✓ ✓
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Source: Joy Global’s Website

Komatsu Confidential 25
 Synergy Example (2): Strong Combination of Surface Mining Products

Dump truck / Shovel Process: Excellent Complementation (based on material density of 1.8, 90% fill factor)
• In surface Mining,
Joy Global Joy
Komatsu
Global
manufactures rope WA900-3E0 WA1200-6 L-1850 L-2350
shovels and wheel Wheel
loaders that best Loader
match Komatsu’s Bucket Bucket: Bucket: Bucket:
Loading 11.5/13m3 20/18m3 30/28m3 40.3/37.8m3
super-size dump Possible/Matching Class
(Mechanical drive) (Electric drive)
trucks
complementing HD785-7 HD1500-7 730E-8 830E-1AC 860E-1K 930E-4(SE) 960E-2(K) 980E

Komatsu's existing Komatsu

Dump Truck
product line-up. Payload: Payload: Payload: Payload: Payload: Payload: Payload: Payload:
Best matching 91tonne 144tonne 181tonne 221.6tonne 254tonne 291.7tonne 327tonne 363tonne
4 pass loading

Komatsu Joy
Global
PC3000- PC4000- PC5500- PC700 PC8000- 4100C
4100C 4100XPC 4800XPC
6 6 6 0 6 BOSS

Hydraulic Shovel
Rope Shovel
Bucket: Bucket: Bucket: Bucket: Bucket: Bucket: Bucket: Bucket: Bucket:
15/15m3 22/22m3 29/29m3 34/36m3 42/42m3 45.3m3 50.3m3 60.5m3 68.1m3

(Hydraulic Shovel) (Rope Shovel)

Komatsu Confidential 26
 Synergy Example (3): Innovation at Mining Jobsites
• Collaboration with Joy Global will accelerate our innovation at Mining jobsites: enhanced capabilities to
improve safety and productivity of customer operations and to advance tele-operation and semi / full
automation processes
Integration and Sharing of Information / Data between Trucks and Shovels Autonomous Haulage System (AHS )

Combination of Komatsu trucks and Joy Global shovels would enable tele-operation and automation in Mining operations

Promotion of Customer Benefit

2nd Step：Improved Productivity 3rd Step：Remote Control / Automation

1st Step：Improved Safety
• Operator assistance such as • Teleoperation
• Collision Avoidance optimal loading position control, • Automated Operation
etc.

Komatsu Confidential 27
 Post-Acquisition Policy
• Optimize management structure to better support our customers.
• Joy Global’s highly recognized brands will be maintained.
• Cultural similarities such as commitment to safety and customer productivity will facilitate collaboration
between Komatsu and Joy Global to accelerate growth through innovation.

1 1 Maintain Joy
5 Commit to Safety, Environment, Global’s Brands
Compliance, and Customer Productivity

Culture Brands

Management 2 Promote Collaborative

Policy Product Development
Product
Solution
Development

Sales
4 Pursue Growth Driven by /Service
Innovation Network
3 Maintain and Strengthen Direct
Sales and Service Model

Komatsu Confidential 28
 Summary
The acquisition of Joy Global is a key milestone to accelerate our growth
toward the 100th anniversary of Komatsu.

1. Komatsu and Joy Global share common values and strategies, and we see great fit as to management, business,
technologies, and employees.
2. The combination supported by mutual respect for culture, technology, and expertise will enable Komatsu to further
promote innovation at Mining jobsites (GEMBA) under a strengthened direct sales and service model, thereby making
further contribution to our customers’ safety and productivity.
3. The acquisition of Joy Global demonstrates our strong commitment to growth toward the 100th anniversary to provide
better products and service for our customers.

【Cautionary Statement】

This cautionary statement by Komatsu may include “forward-looking statements” within the meaning of applicable securities laws and regulations. Forward-looking statements in this release include without limitation statements regarding the expected timing of the completion of the transaction described in the press release,
operation of Joy Global’s business following completion of the Acquisition, and statements regarding the future operation, direction and success of the business. Such statements are qualified by known and unknown risks and uncertainties surrounding future business performance, development and financial standing of the
Company and Joy Global, and actual results could differ materially from those currently anticipated. Forward-looking statements may be identified by the use of words such as “believe”, “anticipate”, “expect”, “plan”, “intent”, “may” “will”, “estimate” and “future” and other similar expressions, or in particular in the form of discussions
of strategies, plans or intentions. Factors that could cause our actual results to differ materially from those described in forward-looking statements include, but are not limited to: (i) uncertainties as to whether or when the transaction will be consummated, (ii) uncertainties as to the approval of Joy Global’s shareholders required in
connection with the Acquisition, (iii) the possibility that competing offers will be made, (iv) the possibility that various closing conditions for the transaction may not be satisfied, (v) the effects of disruption caused by the announcement of this transaction making it difficult to maintain relationships with employees, customers, suppliers
and other business partners and the potential inability to retain existing Joy Global management upon whom Komatsu will rely, (vi) the risk that stockholder litigation in connection with the transaction may affect the timing of the transaction or result in significant costs of defense, indemnification and liability, (vii) other business effects,
including the effects of legal systems, accounting principles or other changes in business environment outside of the control of Komatsu or Joy Global, (viii) the risk that anticipated synergies and other benefits of the acquisition will not materialize,; (ix) financial instability and other changes in economy in general or industry, (x)
transaction costs, (xi) costs and availability of financing on favorable terms and future capital needs, (xii) changes in costs of supplies and raw materials, customer preferences, exchange rates and other national, regional or global economic and financial conditions,; (xiii) marketing, regulatory, product liability, supply, competitive,
political and other risks,; (xiv) actual or contingent liabilities, (xv) changes in and ability to comply with environmental, tax, labor and employment, and other laws and regulations,; and (xvi) other risks including but not limited to those set forth under the “risk factor” section in Joy Global’s Annual Report on Form 10–K which was
filed with the U.S. Securities and Exchange Commission (the “SEC”) and other material submitted to SEC (as available from the SEC website free of charge at http://www.sec.gov ) . Unless legally required, Komatsu disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of
new information, future events or otherwise. All forward-looking statements in this announcement are qualified in their entirety by this cautionary statement.

Komatsu TEL: 03-5561-2687

Business Coordination Department FAX: 03-3582-8332
http://www.komatsu.co.jp/

Komatsu Confidential 29
Questions

Komatsu Confidential 30