Investor relations and analyst meeting

Komatsu mining business

September 2021
Cautionary statement
The information set forth herein contains forward-looking statements which reflect management's current views
with respect to certain future events, including expected financial position, operating results, and business
strategies. These statements can be identified by the use of terms such as "will," "believes," "should," "projects"
and similar terms and expressions that identify future events or expectations. Actual results may differ materially
from those projected, and the events and results of such forward-looking assumptions cannot be assured.

Factors that may cause actual results to differ materially from those predicted by such forward-looking statements
include, but are not limited to, unanticipated changes in demand for the Company's principal products, owing to
changes in the economic conditions in the Company’s principal markets; changes in exchange rates or the impact
of increased competition; unanticipated cost or delays encountered in achieving the Company's objectives with
respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the
Company's research and development efforts and its ability to access and protect certain intellectual property
rights; and, the impact of regulatory changes and accounting principles and practices.

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Featured executive leaders
Presenting:

Rod Schrader Jeffrey Dawes

Chairman and CEO Vice President
Komatsu North America Mining Business Division, KLTD
President and CEO
Komatsu Mining Corp.

Participating in the
chat and Q&A:

Max Moriyama Peter Salditt John Koetz Jorge Mascena Shingo Hori
President President President Sr Vice President Sr Vice President
Mining Business Komatsu Underground Komatsu Surface Mining Mining Technology Mining
Division Mining Solutions Technology
President and CEO Solutions
Modular Mining
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Snapshot
Komatsuof Komatsu
at a glance
Industrial Retail
Middle East & Equipment & Finance,
China, Africa, 5.6% Others, 7.8% 2.7%
7.7%
$22.3 Billion Europe
Americas,
Sales by
36.5%
(last twelve months) & CIS, Sales by
14.1% geography segment

62,800 employees Japan,

17.6% Construction & Mining
65 countries Asia (Ex-Japan & Equipment and
China), 18.5% Vehicles, 89.6%

Full line of mining solutions in surface and underground applications

Creating value together

Mergers and acquisitions

Alliances and strategic
partnerships

Integrations
Formation of Mining Technology Solutions team

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Komatsu global sales of mining equipment

Annual sales of mining equipment Quarterly sales of mining equipment

(including parts and service) (including parts and service)
YoY % ∆
150% YoY % ∆
115% 100%
100%
Billions of ¥ Billions of ¥ 60%
33% 46%
15% 11% 13% 17% 50% 14% 23% 10%
0% ¥300 7% 1% 1% 20%
¥1,200 -1% -10% -3% -9%
-18% -9% -17% -13%
-50% -20%
¥1,000 ¥250 -15% -15%
-100% -31% -24%
¥200 -60%
¥800

¥600 ¥150

¥400 ¥100

¥200 ¥50

¥0 ¥0

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KLTD Outline of projection for FY2021
Billions ¥ Net sales Billions ¥ Operating income
¥2,500 ¥2,469
¥250 ¥225
¥2,400 ¥200 ¥167
¥2,300 ¥150 +34.5
¥2,190 +12.8 %
¥2,200 % ¥100 (+57.6
(+279. ¥)
¥2,100 ¥50
4¥)
¥2,000 ¥0
2020 2021 (projected) 2020 2021 (projected)

Profit ratio Return on equity (ROE)

% of Sales % of Sales
10% 8% 7.6%
9.1%
9% 5.8%
6% +1.8
points
8% 7.6%
+1.5 4%
points
7%
2%
6%
0%
2020 2021 (projected)
2020 2021 (projected)

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Market trends in the mining industry

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Global mining industry trends
Commodity price index Capex vs. commodity price movements
2.50 2010 – 2012 mining boom
1H 2005 =
2.00 7.00 2.50
1.00
Commodity 6.00
1.50 2.00
prices 5.00
1.00 recovering 4.00 1.50
0.50 2012 – 2016 3.00 1.00
market downturn Coronavirus pandemic 2.00
0.00 0.50
1.00 Capex Index {LHS} Commodity Price Index
Nov-08 Jan-12 Mar-15 May-18 Jul-21
2: Thermal Coal, Copper, Iron Ore, Oil (WTI) 0.00 0.00
1: 47 Mining Company Sample 2H 2005 2H 2009 2H 2013 2H 2017 2H 2021

Capex / D&A reinvestment rate Capex long-term trends

350% 315.3%
$200
300%
250% $160
200% Historical $120
150% average: 192.3% $80
100% $40
50% 103.1%
1 for 1 Capex reinvestment rate with D&A: 100.0% $0
0% 2007 2009 2011 2013 2015 2017 2019 2021e
1H 2005 1H 2009 1H 2013 1H 2017 1H 2021
Source: Bloomberg, Company Data, IHS Markit Insight

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Trends shaping the mining industry
Embracing a more Adopting smart
Driving to zero harm
sustainable future mining practices

Electrification and
Improving air quality alternative energy

Real-time Connected
data, analytics infrastructure

Automating and Increased demand for Integrated

Interoperability
remote operations hard rock minerals operations

Sources:
‘Tracking the Trends 2021’, Deloitte Insights
‘Mine 2021 Great expectations, seizing tomorrow’, PWC
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Vision and strategic initiatives

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Komatsu strategic initiatives
Sustainability

Carbon
Safety neutrality

Digitalization Automation

Productivity Reliability

Value drivers

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 Digitalization

Using data to transform the way tasks, processes and operations are run

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Digitalization roadmap
Discrete Connected Data Integrated
technologies data intelligence operations

Best-in-class Intellimine Synergy Cloud AI

applications open-technology computing —
platform — Minewide
Proprietary, — Analytics optimization
closed, and Quality data — —
non-common — Insights
infrastructure Integrated, — Autonomous,
collaborative Simulation interoperable
ecosystem tools supervisory
— — systems
Real-time edge Digital twins
computing

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Our smart mining vision

A connected, interoperable mining

ecosystem designed to:
● empower rapid innovation through collaboration
● enable integration of the customer's
chosen technology and equipment
● accelerate value delivery to mines

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Intellimine Synergy enabling rapid innovation
An open-technology platform
designed to collect, integrate and
process data in real time

Visit the Modular booth #7671 for a sneak peek

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Data intelligence delivering value
Payload Remote health Truck cycle
management management optimization

Results demonstrated Results demonstrated

at customer site Results achieved during at customer site
6-month program

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 Sustainability

Supporting the drive for more sustainable mining methods

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Sustainability: power source diversification

Hybrid
Fossil fuel
SR/KESS

Expanding
the scope of
power options

Electric
Battery Fuel cell
Trolley assist

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Expanding use of SR and KESS
SR + Kinetic Energy Storage Komatsu Switched Reluctance (SR) system
System (KESS) advantages scalable, simple, efficient

Hybrid Large hybrid Hybrid

versus a LHDs wheel loader shovel
diesel drive

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Greenhouse Gas Alliance

Engine Trolley

Battery Fuel cell

Power Management

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Power agnostic truck development platform

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Underground: leveraging electricity and batteries
Next-generation battery solutions: Lithium-ion
Can power a hauler up to

vs. Charge
time
for lead-acid batteries

Battery-electric Fully electric

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 Automation

Increasing the use of advanced capabilities

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Automation roadmap

The journey of automation

1 2 3 4 5 6

Manual Operator Partial Conditional High Fully

guidance automation automation automation autonomous

Full operator responsibility Full vehicle responsibility

Note: Adapted from SAE J3016 25

Autonomous Haulage System (AHS)

Frontrunner AHS
13 sites
4 countries
―
4+ billion tons
of surface material
moved
―
400+ autonomous
trucks deployed
globally

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Teleoperations
Teleoperation for excavators
live from our proving
grounds in Tucson, Arizona

Demo features
PC7000 and autonomous
haulage vehicles

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Growing with our customers’ drill automation capabilities

Expanding the Komatsu drill

product line

320XPC ZR122 ZR77 ZT44

Accelerating drill automation

development

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Advancing underground automation
Room and pillar Longwall
Cut – haul – crush
process cycles

of the time

in customer
cycle times

Results demonstrated
in a case study
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Automated cutting across the spectrum

Salt Potash Sandstone Polyhalite Volcanics Monzonite

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Our commitment to hard rock
Innovative products and solutions Global sales and service

WX03 WX04 WX07 WX18H WX22

HX07 HX16 ZJ21 ZJ32 ZB21

ZS01 ZS02 ZM01 MC51

State of the art manufacturing
center in Longview, TX
Retrofit solutions for existing fleets

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The future of mining

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Questions

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 Thank You
Visit komatsuevents.com
to continue your MINExpo experience virtually

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