Komatsu Ltd S/Adr (KMTUY) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

I'm Horikoshi, CFO. I will explain the business results for the second quarter FY2023. On page 4, I will explain the highlights for the second quarter FY2023. Exchange rates were 144.2 yen to a dollar, 157.3 yen to euro, and 95.4 yen to Australian dollar, yen depreciated to major currencies of dollar, euro, and Australian dollar year-on-year. Net sales were 923.4 billion yen, up 8% a year. Operating income was 150 billion yen, up 27%. And operating income ratio went up 2.4 points to 16.2%. Both net sales and operating income increased due to the improvement in selling prices and positive effects of foreign exchange rates. Net sales were record high as those of the second quarter, and operating income was a quarterly record high. On page 5, I explained the segment sales and profit. Sales in construction, mining, and utility equipment increased 8.8% a year to 860.7 billion yen. Segment profit increased 36.6% to 142.4 billion yen. And segment profit ratio increased 3.3 points to 16.5%. Sales in retail finance increased 14.2% a year to 24.6 billion yen, and segment profit decreased 7% to 6.6 billion yen. Sales in industrial machinery and others decreased 9.3% a year to 44.6 billion yen, and segment profit decreased 66.6% to 2.5 billion yen. I'll explain the causes of difference of each segment later. Page 6 shows the sales by region of construction mining and utility equipment. Sales of construction mining and utility equipment increased 9.1% year-on-year to 860.6 billion yen. By region, sales in CIS, China, and Asia decreased, but sales in North America and Latin America increased substantially. The ratio of sales in traditional market was 45% and that in strategic market was 55%. Page 7 shows highlights for the first half of FY2023. The actual rates were 140.3 yen to t...