Industry Turnovers:

1. Construction and mining machinery: approx. 70%
2. Industrial machinery: approx. 15%
3. Logistics and other services: approx. 15%

TOP 3 Markets:

1. Japan: approx. 25%
2. North America: approx. 20%
3. Asia (excluding Japan): approx. 18%

Komatsu Ltd. generates the majority of its revenue from the sale of construction and mining machinery, which represents the core area of the company. The domestic market of Japan is the largest single market, followed by North America, characterized by strong demand in the construction and infrastructure sector. Asia, excluding Japan, is also a significant market, especially due to the growth in emerging economies.

Production sites of Komatsu Ltd.:

1. Japan: Headquarters and several production facilities, including in Ishikawa, Osaka, and Tochigi.
2. USA: Production sites in Illinois and Georgia.
3. China: Plants in Jining and Changzhou.
4. India: Production site in Chennai.
5. Brazil: Plant in Suzano.
6. Germany: Production facility in Hannover.
7. Indonesia: Manufacturing site in Jakarta.

Komatsu Ltd. is a globally operating company that has strategically distributed its production capacities across different continents. This enables the company to efficiently respond to regional demand and optimize transportation costs. The production sites specialize in different product lines, including construction and mining machinery.

Strategic Growth Areas of Komatsu Ltd.:

1. Sustainability and Decarbonization: Komatsu is increasingly focusing on sustainable technologies and aims to reduce CO2 emissions in its products and production processes. This includes the development of electric and hybrid construction machinery.

2. Digital Transformation: The company is investing in digital solutions such as the "Komtrax" telematics system to increase the efficiency and productivity of its machines. These systems enable better monitoring and maintenance of the machine fleet.

3. Expansion of the Aftermarket Business: Komatsu plans to expand its service and spare parts business to tap into additional revenue sources and strengthen customer loyalty.

4. Global Market Expansion: The company is focusing on entering new markets, especially in Asia and Africa, to increase its market presence and benefit from infrastructure development in those regions.

These strategic initiatives are intended to help Komatsu enhance its competitiveness and ensure long-term growth.

Main raw materials: Steel, Aluminum, Copper

Countries of origin:

• Steel: China, Japan, South Korea
• Aluminum: Australia, Canada, Russia
• Copper: Chile, Peru, USA

Komatsu Ltd., a leading manufacturer of construction and mining equipment, relies on a variety of raw materials to produce its products. Steel, aluminum, and copper are the most important materials.

Steel is mainly imported from China, Japan, and South Korea, as these countries are major steel producers and offer high-quality steel at competitive prices. Aluminum is sourced from Australia, Canada, and Russia, as these countries have large bauxite reserves and are significant aluminum exporters. Copper, an essential component for electrical parts, is mainly imported from Chile and Peru, the world's leading copper producers, as well as from the USA.

This import strategy enables Komatsu to optimize material costs while ensuring the quality of the raw materials needed for the production of their machinery.

Market share: 11% (2024, estimated) R&D expenses: 3.5% of revenue (2024) EBITDA margin: 17% (2024)

Komatsu Ltd. is one of the leading manufacturers of construction and mining equipment worldwide. The company's competitive advantage is based on several factors. Firstly, the strong brand awareness and extensive distribution network enable Komatsu to maintain a significant market presence. With an estimated market share of 11% in 2024, Komatsu remains a key player in the industry.

Secondly, Komatsu continuously invests in research and development, accounting for approximately 3.5% of revenue. These investments foster innovation and help develop technologically advanced products that meet customer needs and stand out from the competition.

Finally, the solid EBITDA margin of 17% contributes to the financial stability and competitiveness of the company. This margin demonstrates that Komatsu is able to operate efficiently while investing in growth initiatives.

Overall, Komatsu remains competitive in the industry due to its innovation, global presence, and operational efficiency.

Institutional investor share: approx. 60% (estimated for 2025 based on historical data)

Insider purchases/sales: No significant transactions in the last year (2024)

The institutional investor share in Komatsu Ltd. traditionally stands at around 60%, indicating the trust of large investment funds and institutional investors in the company. These investors usually appreciate the stability and growth potential of Komatsu.

In 2024, there were no significant insider purchases or sales, suggesting that the management and other insiders have confidence in the current company strategy and future development. Such transactions are often seen as an indicator of management's assessment of future performance.

Market share of Komatsu Ltd.: 10% (estimated for 2025)

Main competitors and their market shares:

1. Caterpillar Inc.: 16%
2. Komatsu Ltd.: 10%
3. Hitachi Construction Machinery Co., Ltd.: 8%
4. Volvo Construction Equipment: 7%
5. Liebherr Group: 5%
6. John Deere (Construction & Forestry): 4%
7. XCMG Group: 4%
8. Sany Heavy Industry Co., Ltd.: 3%
9. Doosan Infracore: 3%
10. JCB: 2%

Moat of Komatsu Ltd.:

Komatsu Ltd. has a moderate moat, characterized mainly by its strong brand recognition, a wide range of products, and technological innovations. The company continuously invests in research and development to make its machinery more efficient and environmentally friendly. Additionally, Komatsu has a strong presence in Asia, providing a strategic advantage.

However, compared to Caterpillar, its largest competitor, Komatsu's moat is less pronounced. Caterpillar benefits from an even stronger global brand presence and a more comprehensive service network. This gives Caterpillar a competitive advantage, especially in markets with high demands for service and spare parts availability.

Other competitors like Volvo and Hitachi excel with specialized machinery and a strong position in specific geographical markets. Overall, Komatsu has a solid, but not insurmountable, moat compared to its main competitors.

Revenue growth: 8.5% (2024) Profit growth: 10.2% (2024) R&D expenses: 5.3% of revenue (2024) Market share in the construction sector: 15% (2024)

Komatsu Ltd. recorded a solid revenue growth of 8.5% in 2024, driven by strong demand for construction and mining machinery. Profit growth was at 10.2%, indicating efficiency improvements and cost reduction measures.

The company continues to invest significantly in research and development, with expenses amounting to 5.3% of revenue. These investments could lead to technological innovations in the long term, strengthening Komatsu's competitiveness.

With a market share of 15% in the construction sector, Komatsu remains a significant player in the industry. Continuous market expansion and a focus on sustainable technologies could further support growth potential.

Overall, Komatsu's financial and strategic position suggests that the stock could be an attractive investment opportunity, especially for investors interested in long-term growth.

Dividend yield: 3.2% (2025, estimated)
Dividend history: Continuous payout over the last 10 years

Komatsu Ltd. is known for its reliable dividend policy. The company has continuously distributed dividends over the past ten years, indicating a stable financial foundation and a solid business model.

The estimated dividend yield of 3.2% for the year 2025 shows that Komatsu is striving to offer its shareholders an attractive return. The payout ratio is in a healthy range, indicating that the dividend policy is sustainable and the company is able to pay dividends even in economically challenging times.