Komatsu Ltd S/Adr (KMTUY) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you. I am Horiko Shi, the CFO. Let me present the business results for FY2024. Page 4 shows the highlights of FY2024 business results. Exchange rates were ¥152.8 to the dollar, ¥163.5 to the euro, ¥99.5 to the Australian dollar. Yen has weakened against these three currencies year on year. Net sales grew 6.2% year-on-year to 4,104.4 billion yen. Operating income grew 8.2% to 655.1 billion yen. Operating income ratio went up by 0.3 points to 16%. Positive FX impact, improved selling prices, and others led to higher sales and profits. Net income increased by 11.7% and reached 439.6 billion yen. Net sales, segment profit, profit ratio, and operating income and its ratio, net income, all of them were record high numbers. Also, net sales, segment profit, operating income, and net income were record high three years in a row since FY2022. ROE increased by 0.1 point year-on-year to 14.2%. We plan to increase the dividend per share for FY24 from 167 yen per share that we announced in October to 190 yen. Consolidated payout ratio will be 40.1%. Including the 100 billion share buyback that we implemented in 2024, the total shareholder return will be 62.7%. Page 5 shows the net sales of construction, mining, and utility equipment. The sales were 3,798.2 bn up 5.1% year-on-year. Segment profit was 598.9 bn up 4.3% year-on-year. The retail finance net sales were 123.2 bn up 19% year-on-year. Segment profit was 29.4 bn up 21.4% year-on-year. Net sales of the industrial machinery and others were ¥223.6 billion, up 14.3% year-on-year. Segment profit grew about 2.7 times year-on-year to ¥27.4 billion. I will explain the causes of the differences by segment later on. Page 6 shows the net sales of construction mining utility equipment by region. Net sales were ¥3,787.5 billion, u...