MARKETING ORIENTATION

Marketing Orientation

Marketing Orientation

Introduction

Komatsu is a diversified company engaged in manufacturing and selling construction and mining equipment, industrial machinery, and vehicles. In addition, the company has interests in other business areas such as housing, transportation and logistics equipment. The company has global operations spanning four continents: Asia, Americas, Europe, and Africa. It is headquartered in Tokyo, Japan and employs about 39,267 people.

The company recorded revenues of JPY 2,243,023 million (approximately $19,693.7 million) in the financial year (FY) ended March 2008, an increase of 18.5% over 2007. The operating profit of the company was JPY 332,850 million (approximately $2,922.4 million) in the FY2008, an increase of 36% over 2007. The net profit was JPY 208,793 million (approximately $1,833.2 million) in FY 2008, an increase of 26.8% over 2007.

Komatsu is engaged in the manufacturing and sale of construction and mining equipment, industrial machinery and vehicles. It also has interests in housing, transportation and logistics equipment.

Komatsu has operations in 16 countries worldwide. The manufacturing operations of the company and its subsidiaries are conducted primarily at plants in Japan, the US, Germany, the UK, Sweden, Indonesia, Brazil, Italy, China and Taiwan.

Graph: Net Sales, Operating Income and Income from Continuing Operations.

Company's Income Graph Analysis

The company operates through three business segments: construction and mining equipment; industrial machinery, vehicles and other; and electronics.

The construction and mining equipment division is one of the largest manufacturers of construction, mining and utility equipment in the world. It develops, manufactures and sells excavators, loading machinery, leveling machines, transportation equipment, transportation machinery, forestry machines, underground construction machinery, resource recycling machinery, truck maintenance machines and other machinery, as well as engines and molded products. The construction and mining equipment product line also includes a variety of utility equipment, mini to small machines (mini hydraulic excavators, mini wheel loaders, backhoe loaders, skid steer loaders, and other similar products) for landscaping and general construction.

The industrial machinery and vehicle division is engaged in the development, manufacture and sale of forge rolling machines, plating machinery, machine tools, industrial vehicles, defense equipments, and agro forestry machinery. This division operates through four subsidiaries: Komatsu forklift, Komatsu Industries Corporation, Komatsu logistics, and Komatsu Machinery Corporation.

The electronics division develops, manufactures and sells electronic materials and temperature control equipment. The core business of Komatsu's electronics division includes semiconductor materials operations which involves the production of silicon wafers for the semiconductor industry.

Its products are classified into four categories: electronic materials, which consists of silicon wafers, polycrystalline silicon and monosilane gas; semiconductor process equipment, which consists of excimer laser; temperature control equipment, which consist of thermoelectric modules, semiconductor manufacturing related thermoelectric devices, communication equipment; and control equipment, which consists of network information terminals, local area network (LAN) peripheral equipment, mobile tracking, communication terminals, and vehicle controllers

Revenue Analysis

Komatsu The company recorded revenues of JPY 2,243,023 million (approximately $19,693.7 million) in the financial year (FY) ended March 2008, an increase of 18.5% over 2007. For the FY2008, the Americas, Komatsu's largest geographical market, accounted for 24.1% of the total ...