UNITEDTable STATESof Contents

1.Table Quarterly Report for the First Quarter of the 145th Fiscal Year filed on August 8, 2013Contents

3Table of Contents

TheTable accompanying Notes are an integral part of these Quarterly Consolidated Financial Statements. Contents

KomatsuTable promotes continuous innovation of technologies by concentrating the production of high-value added and technologically important key components in Japan, and also undertakes integrated development and production under the Mother Plant system. As a general rule, Komatsu engages in local production in different parts of the world where there is sufficient market demand for its products. With respect to mainstay products, however, Komatsu has facilitated effective use of its global production capacities by cross sourcing finished products after producing them at its most cost-effective plants and exporting them in light of changes in market demand and foreign exchange rate. Komatsu is establishing its production efficiency, standardization of production and stable operation of production facilities through renewing its old factory buildings in Japan, reassessing logistics and reforming production process by technology innovation as well as cutting down electric power consumption in half at its plants in Japan. With respect to capital investment, Komatsu continues to invest in its production facilities for renovation at a constant level. In light of those activities, Komatsu expects stable production and facility utilization within its production capacity, and is able to receive economic benefits from those facilities at a constant rate throughout their durable periods. Contents

InTable the consolidated Statements of cash flow, Komatsu disclosed its cash flow of short-term debt in financing activities on a net amount basis in the previous first quarter period ended June 30, 2012. Komatsu discloses its cash flow on a net amount basis for the debts whose original maturities are three months or less in this first quarter period ended June 30, 2013. The consolidated statements of cash flow for the first quarter period ended June 30, 2012 has been re-presented to be consistent with June 30, 2013. This change does not have any impact on the total cash flow from financing activities. Contents

13Table of Contents

OtherTable investment securities primarily include non-marketable equity securities. Proceeds from the sales of investment securities available for sale were ¥449 million and ¥418 million for the three months ended June 30, 2013 and 2012, respectively. Impairment loss and net gain (loss) from sale of investment securities available for sale during the three months ended June 30, 2013 and 2012 amounted to gains of ¥7 million and losses of ¥70 million, respectively. Such gains and losses were included in other income (expenses), net in the accompanying consolidated statements of income. The cost of the investment securities sold was computed based on the average-cost method. Contents

AllTable amounts are net of tax Contents

23Table of Contents

25Table of Contents

FairTable value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could affect the estimates. Contents

AssetsTable andof liabilities that are measured at fair value on a recurring basis Contents

DerivativesTable primarily represent foreign exchange contracts and interest rate swap agreements. The fair value of foreign exchange contracts is based on a valuation model that discounts cash flows resulting from the differential between contract rate and the market-based forward rate and is classified in Level 2 in the fair value hierarchy. The fair value of interest rate swap agreements is based on a valuation model that discounts cash flows based on the terms of the contract and the swap curves and is classified in Level 2 in the fair value hierarchy. Contents

TheTable amounts of unrealized gains on classified in Level 3 liabilities recognized in earnings for the three months ended June 30, 2013 and 2012 related to liabilities still held at June 30, 2013 and 2012 were gains of ¥75 million and gains of ¥124 million, respectively. These gains were reported in other income (expenses), net of the consolidated statements of income. Contents

14.Table Dividendsof Contents

32Table of Contents

b.Table Industrialof Machinery and Others: Contents

~~SECURITIES~~UNITED ~~AND~~STATES ~~EXCHANGE COMMISSION~~

~~Washington,~~SECURITIES ~~D.C.~~AND ~~20549~~EXCHANGE COMMISSION

~~FORM~~Washington, ~~6-K~~ D.C. 20549

~~Report~~FORM ~~of Foreign Private Issuer~~ 6-K

~~Pursuant~~Report toof ~~Rule~~Foreign ~~13a-16~~Private orIssuer ~~15d-16~~

~~under~~Pursuant ~~the~~to ~~Securities~~Rule ~~Exchange~~13a-16 ~~Act~~or ~~of 1934~~15d-16

~~For~~under the ~~month~~Securities ofExchange ~~August,~~Act ~~2013~~of 1934

~~COMMISSION~~For ~~FILE~~the ~~NUMBER:~~month ~~1-7239~~of October, 2013

~~KOMATSU~~COMMISSION ~~LTD.~~ FILE NUMBER: 1-7239

~~(Translation~~KOMATSU ~~of registrant’s name into English)~~ LTD.

~~3-6~~(Translation ~~Akasaka~~of ~~2-chome,~~registrant’s ~~Minato-ku,~~name ~~Tokyo,~~into ~~107-8414,~~English) ~~Japan~~

~~(Address~~3-6 ofAkasaka ~~principal~~2-chome, ~~executive~~Minato-ku, ~~office)~~Tokyo, 107-8414, Japan

~~Indicate~~(Address ~~by check mark whether the registrant files or will file annual reports under cover~~ of ~~Form~~principal ~~20-F~~executive oroffice) ~~Form 40-F.~~

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F x or Form 40-F ¨.

~~Indicate by check mark if the registrant is submitting the~~ Form 620-KF x Form ~~in paper as permitted by Regulation S~~40-~~T Rule 101(b)(1):~~ F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(71): ¨

~~INFORMATION~~Indicate ~~INCLUDED~~by INcheck ~~THIS~~mark ~~REPORT~~if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

OnINFORMATION ~~August 8,~~INCLUDED ~~2013,~~IN ~~the~~THIS ~~registrant~~REPORT filed its Quarterly Report (Shihanki Houkokusho) with the Director of the Kanto Local Finance Bureau of Japan pursuant to the Financial Instruments and Exchange Act of Japan. This Quarterly Report contains, among other information, Quarterly Consolidated Financial Statements for the three month period ended June 30, 2013.

~~Material~~1. ~~information~~English intranslation ~~the~~of ~~report,~~a ~~other~~company ~~than~~announcement ~~the~~made ~~Quarterly Consolidated~~on ~~Financial~~October ~~Statements~~28, ~~has~~2013 ~~already~~regarding ~~been reported by~~ the ~~registrant~~Consolidated inBusiness ~~its~~Results ~~press~~for ~~release~~the ~~dated~~Second ~~July 29,~~Quarter ~~2013, a copy~~ of ~~which~~the ~~was~~Fiscal ~~submitted~~Year ~~under~~Ending ~~cover~~March ~~of Form 6-K on July 30~~31, ~~2013~~2014 ~~by the registrant~~(U.S. GAAP).

~~Attached~~2. ~~is an~~ English translation of a company announcement made on October 28, 2013 regarding the ~~registrant’s~~Revisions ~~Quarterly~~to ~~Consolidated~~the ~~Financial~~Projected ~~Statements~~Business Results for the ~~three month~~Fiscal ~~ended~~Year ~~June 30~~Ending March 31, ~~2013.~~2014(Consolidated and Non-consolidated).

2SIGNATURES

~~SIGNATURES~~Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		KOMATSU LTD.
		(Registrant)

Date: October 29, 2013	By:	/S/ Mikio Fujitsuka
		Mikio Fujitsuka
		Director and Senior Executive Officer

LOGO

~~[Quarterly~~Komatsu ~~Consolidated~~Ltd. ~~Financial Statements]~~

~~Consolidated~~Corporate ~~Balance~~Communications ~~Sheets~~Dept. ~~(Unaudited)~~

~~Komatsu~~Tel: ~~Ltd.~~+81-(0)3-5561-2616 ~~and Consolidated Subsidiaries~~

~~June~~Date: October 3028, 2013 ~~and March 31, 2013~~

	June 30, 2013				March 31, 2013
	Millions of yen		Componentratio (%)		Millions of yen		Componentratio (%)
Assets
Current assets
Cash and cash equivalents (Note 11)	¥	93,557			¥	93,620
Time deposits (Note 11)		222				217
Trade notes and accounts receivable, net (Notes 3 and 11)		580,283				606,904
Inventories (Note 4)		672,293				633,647
Deferred income taxes and other current assets (Notes 10, 11 and 12)		160,589				157,668
Total current assets		1,506,944		58.9		1,492,056		59.3
Long-term trade receivables, net (Notes 3 and 11)		241,283		9.4		235,825		9.4
Investments
Investments in and advances to affiliated companies		19,581				19,404
Investment securities (Notes 5, 11 and 12)		61,594				59,279
Other		2,714				2,574
Total investments		83,889		3.3		81,257		3.2
Property, plant and equipment — less accumulated depreciation and amortization of ¥717,294 million at June 30, 2013 and ¥706,297 million at March 31, 2013		602,210		23.5		585,220		23.2
Goodwill		35,427		1.4		34,703		1.4
Other intangible assets — less accumulated amortization		58,014		2.3		58,523		2.3
Deferred income taxes and other assets (Notes 10, 11 and 12)		32,172		1.2		30,273		1.2
	¥	2,559,939		100.0	¥	2,517,857		100.0

URL: http://www.komatsu.com/

~~The~~Consolidated ~~accompanying~~Business ~~Notes~~Results ~~are~~for anSix ~~integral~~Months ~~part~~ of ~~these~~the ~~Quarterly~~Fiscal ~~Consolidated~~Year ~~Financial~~Ending ~~Statements.~~

4March 31, 2014 (U.S. GAAP)

	June 30, 2013					March 31, 2013
	Millions of yen			Componentratio (%)		Millions of yen			Componentratio (%)
Liabilities and Equity
Current liabilities
Short-term debt (Note 11)	¥	254,192				¥	205,156
Current maturities of long-term debt (Notes 11 and 12)		117,738					130,793
Trade notes, bills and accounts payable (Note 11)		228,908					226,275
Income taxes payable		14,180					33,227
Deferred income taxes and other current liabilities (Notes 10, 11 and 12)		228,048					232,125
Total current liabilities		843,066			32.9		827,576			32.8
Long-term liabilities
Long-term debt (Notes 11 and 12)		321,582					343,814
Liability for pension and retirement benefits		50,082					49,912
Deferred income taxes and other liabilities (Notes 10, 11 and 12)		46,964					43,860
Total long-term liabilities		418,628			16.4		437,586			17.4
Total liabilities		1,261,694			49.3		1,265,162			50.2
Commitments and contingent liabilities (Note 9)		—					—
Equity
Komatsu Ltd. shareholders’ equity
Common stock:
Authorized 3,955,000,000 shares at June 30, 2013 and at March 31, 2013
Issued 983,130,260 shares at June 30, 2013 and at March 31, 2013		67,870					67,870
Outstanding 953,146,985 shares at June 30, 2013 and 952,778,859 shares at March 31, 2013
Capital surplus		138,898					138,818
Retained earnings:
Appropriated for legal reserve		39,624					38,230
Unappropriated		1,047,521					1,034,504
Accumulated other comprehensive income (loss) (Notes 5, 6, 10 and 12)		(12,108	)				(43,440	)
Treasury stock at cost, 29,983,275 shares at June 30, 2013 and 30,351,401 shares at March 31, 2013		(42,267	)				(42,788	)
Total Komatsu Ltd. shareholders’ equity		1,239,538			48.4		1,193,194			47.4
Noncontrolling interests		58,707			2.3		59,501			2.4
Total equity		1,298,245			50.7		1,252,695			49.8
	¥	2,559,939			100.0	¥	2,517,857			100.0

1. Results for Six Months Ended September 30, 2013

~~The~~(Amounts ~~accompanying Notes~~ are anrounded ~~integral~~to ~~part~~the ofnearest ~~these~~million ~~Quarterly~~yen) ~~Consolidated Financial Statements.~~

5(1) Consolidated Financial Highlights

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Unaudited)


				Millions of yen except per share amounts
	Six Months ended September 30, 2013		Six Months ended September 30, 2012		Changes Increase (Decrease)
	[A]		[B]		[A-B]			[(A-B)/ B]
Net sales		925,121		930,849		(5,728	)		(0.6	)%

Operating income		108,946		111,264		(2,318	)		(2.1	)%

Income before income taxes and equity in earnings of affiliated companies		112,461		105,384		7,077			6.7	%

Net income attributable to Komatsu Ltd.		78,810		66,112		12,698			19.2	%

Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	82.69	¥	69.42	¥	13.27

Diluted	¥	82.60	¥	69.37	¥	13.23

~~Komatsu~~Note: ~~Ltd.~~Comprehensive ~~and~~income ~~Consolidated~~for ~~Subsidiaries~~six months ended September 30, 2013 and 2012

~~Three~~2013: 111,632 ~~months~~millions ~~ended~~of ~~June 30~~yen, ~~2013~~up ~~and~~375.4% from 2012

~~Consolidated~~2012: 23,483 ~~Statements~~millions of ~~Income~~ yen, down 33.5% from 2011

	Three months endedJune 30, 2013						Three months endedJune 30, 2012
	Millions of yen			Componentratio (%)			Millions of yen			Componentratio (%)
Net sales	¥	455,159			100.0		¥	469,948			100.0
Cost of sales (Note 10)		325,366			71.5			343,155			73.0
Selling, general and administrative expenses (Note 7)		77,247			17.0			71,529			15.2
Other operating income (expenses), net		(133	)		(0.0	)		454			0.1
Operating income		52,413			11.5			55,718			11.9
Other income (expenses), net
Interest and dividend income		1,402			0.3			1,316			0.3
Interest expense		(2,247	)		(0.5	)		(2,123	)		(0.5	)
Other, net (Notes 5, 10 and 12)		21			0.0			(3,669	)		(0.8	)
Total		(824	)		(0.2	)		(4,476	)		(1.0	)
Income before income taxes and equity in earnings of affiliated companies		51,589			11.3			51,242			10.9
Income taxes
Current		6,577						14,604
Deferred		5,967						2,540
Total		12,544			2.8			17,144			3.6
Income before equity in earnings of affiliated companies		39,045			8.6			34,098			7.3
Equity in earnings of affiliated companies		291			0.1			230			0.0
Net income		39,336			8.6			34,328			7.3
Less: Net income attributable to noncontrolling interests		2,045			0.4			2,204			0.5
Net income attributable to Komatsu Ltd.	¥	37,291			8.2		¥	32,124			6.8

(2) Consolidated Financial Position

	Yen
		Millions of yen except per share amounts
	Three months endedJune 30, 2013			Three months endedJune 30, 2012
	As of September 30, 2013			As of March 31, 2013
Net income attributable to Komatsu Ltd. per share (Note 8)
Total assets		2,546,689			2,517,857
Basic	¥	39.13		¥	33.73
Total equity		1,337,738			1,252,695
Diluted		39.09			33.71
Komatsu Ltd. shareholders’ equity		1,278,449			1,193,194
Cash dividends per share (Note 14)		24.00			21.00
Komatsu Ltd. shareholders’ equity ratio		50.2	%		47.4	%
Komatsu Ltd. shareholders’ equity per share (Yen)	¥	1,341.23		¥	1,252.33

~~The accompanying Notes are an integral part of these Quarterly Consolidated Financial Statements~~2. Dividends

(For the fiscal years ended March 31, 2013 and ending March 31, 2014)

Yen

The entire FY ending March 31, 2014

The entire FY ended
March 31, 2013

Results

Projection

First quarter period

Second quarter period

29.00

—

24.00

Third quarter period

Year-end

—

29.00

24.00

Total

58.00

48.00

~~Consolidated~~Note: ~~Statements~~Changes in the projected cash dividend as of ~~Comprehensive~~October ~~Income~~28, 2013: None

	Three months endedJune 30, 2013		Three months endedJune 30, 2012
	Millions of yen		Millions of yen
Net income	¥	39,336	¥	34,328
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments (Note 6)		28,645		(38,800	)
Net unrealized holding gains (losses) on securities available for sale (Notes 5 and 6)		1,671		(4,432	)
Pension liability adjustments (Note 6)		295		564
Net unrealized holding gains (losses) on derivative instruments (Notes 6 and 10)		887		1,361
Total		31,498		(41,307	)
Comprehensive income (loss)		70,834		(6,979	)
Less: Comprehensive income (loss) attributable to noncontrolling interests		2,187		(568	)
Comprehensive income (loss) attributable to Komatsu Ltd.	¥	68,647	¥	(6,411	)

LOGO

73. Projection for the Fiscal Year Ending March 31, 2014

~~Consolidated~~(From ~~Statements~~April 1, of2013 ~~Equity~~to ~~(Unaudited~~March 31, 2014)

Komatsu Ltd. and Consolidated Subsidiaries


		Millions of yen except per share amounts
	The full fiscal year
			Changes
Net sales		1,860,000		(1.3	)%

Operating income		210,000		(0.8	)%

Income before income taxes and equity in earnings of affiliated companies		209,000		2.1	%

Net income attributable to Komatsu Ltd.		136,000		7.7	%

Net income attributable to Komatsu Ltd. per share—basic (Yen)		¥142.69

Three months ended June 30, 2013																				Millions of yen
						Retained earnings
	Commonstock		Capitalsurplus			Appropriatedfor legalreserve		Unappropriated			Accumulatedothercomprehensiveincome (loss)			Treasurystock			TotalKomatsu Ltd.shareholders’equity			Noncontrollinginterests			Totalequity
Balance at March 31, 2013	¥	67,870	¥	138,818		¥	38,230	¥	1,034,504		¥	(43,440	)	¥	(42,788	)	¥	1,193,194		¥	59,501		¥	1,252,695
Cash dividends (Note 14)									(22,880	)								(22,880	)		(2,920	)		(25,800	)
Transfer to retained earnings appropriated for legal reserve							1,394		(1,394	)								—						—
Other changes				(68	)							(24	)					(92	)		(61	)		(153	)
Net income									37,291									37,291			2,045			39,336
Other comprehensive income(loss), for the period, net of tax (Note 6)												31,356						31,356			142			31,498
Issuance and exercise of stock acquisition rights (Note 7)				(189	)													(189	)					(189	)
Purchase of treasury stock															(9	)		(9	)					(9	)
Sales of treasury stock				337											530			867						867
Balance at June 30, 2013	¥	67,870	¥	138,898		¥	39,624	¥	1,047,521		¥	(12,108	)	¥	(42,267	)	¥	1,239,538		¥	58,707		¥	1,298,245
Three months ended June 30, 2012																				Millions of yen
						Retained earnings
	Commonstock		Capitalsurplus			Appropriatedfor legalreserve		Unappropriated			Accumulatedothercomprehensiveincome (loss)			Treasurystock			TotalKomatsu Ltd.shareholders’equity			Noncontrollinginterests			Totalequity
Balance at March 31, 2012	¥	67,870	¥	138,384		¥	37,954	¥	951,395		¥	(142,389	)	¥	(43,518	)	¥	1,009,696		¥	47,761		¥	1,057,457
Cash dividends (Note 14)									(20,009	)								(20,009	)		(4,760	)		(24,769	)
Transfer to retained earnings appropriated for legal reserve							296		(296	)								—						—
Other changes																		—			34			34
Net income									32,124									32,124			2,204			34,328
Other comprehensive income(loss), for the period, net of tax (Note 6)												(38,535	)					(38,535	)		(2,772	)		(41,307	)
Issuance and exercise of stock acquisition rights (Note 7)																		—						—
Purchase of treasury stock															(5	)		(5	)					(5	)
Sales of treasury stock									(54	)					107			53						53
Balance at June 30, 2012	¥	67,870	¥	138,384		¥	38,250	¥	963,160		¥	(180,924	)	¥	(43,416	)	¥	983,324		¥	42,467		¥	1,025,791

Notes: 1) Changes in the projected consolidated business results as of October 28, 2013: Applicable

~~The~~ 2) ~~accompanying~~Percentages ~~Notes~~shown ~~are~~above anrepresent ~~integral~~the ~~part~~rates of ~~these~~change ~~Quarterly~~compared ~~Consolidated~~with ~~Financial~~the ~~Statements~~corresponding period a year ago.

84. Others

~~Consolidated~~(1) ~~Statements~~Changes ofin ~~Cash~~important ~~Flows~~subsidiaries ~~(Unaudited)~~during the six months period under review: None

~~Komatsu~~(2) ~~Ltd.~~Use of simplified accounting procedures and ~~Consolidated~~adoption ~~Subsidiaries~~of specific accounting procedures for the preparation of consolidated quarterly financial statements: None

~~Three~~(3) ~~months~~Changes ~~ended~~in ~~June 30~~Significant Accounting Rules, ~~2013~~Procedures and ~~2012~~Presentation and Changes in Significant Accounting Policies and Estimates

	Millions of yen
	Three months endedJune 30, 2013			Three months endedJune 30, 2012
Operating activities
Net income	¥	39,336		¥	34,328
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		19,968			21,138
Deferred income taxes		5,967			2,540
Impairment loss and net loss (gain) from sale of investment securities		(7	)		70
Net loss (gain) on sale of property		(103	)		(132	)
Loss on disposal of fixed assets		549			272
Pension and retirement benefits, net		56			359
Changes in assets and liabilities:
Decrease (increase) in trade receivables		41,454			47,612
Decrease (increase) in inventories		(23,164	)		(33,942	)
Increase (decrease) in trade payables		54			(20,090	)
Increase (decrease) in income taxes payable		(19,433	)		(5,868	)
Other, net		(8,832	)		(6,268	)
Net cash provided by (used in) operating activities		55,845			40,019
Investing activities
Capital expenditures		(37,054	)		(32,382	)
Proceeds from sale of property		2,462			2,304
Proceeds from sale of available for sale investment securities		449			418
Purchases of available for sale investment securities		(31	)		(1	)
Acquisition of subsidiaries and equity investees, net of cash acquired		(4,539	)		283
Collection of loan receivables		101			591
Disbursement of loan receivables		(16	)		(206	)
Decrease (increase) in time deposits, net		1			614
Net cash provided by (used in) investing activities		(38,627	)		(28,379	)
Financing activities
Proceeds from debt issued (Original maturities greater than three months) (Note 2)		37,824			110,854
Payment on debt (Original maturities greater than three months) (Note 2)		(59,627	)		(105,434	)
Short-term debt—net (Original maturities three months or less) (Note 2)		28,986			18,448
Repayments of capital lease obligations		(813	)		(2,380	)
Sale (purchase) of treasury stock, net		(8	)		50
Dividends paid		(22,880	)		(20,009	)
Other, net		(2,941	)		(3,244	)
Net cash provided by (used in) financing activities		(19,459	)		(1,715	)
Effect of exchange rate change on cash and cash equivalents		2,178			(3,228	)
Net increase (decrease) in cash and cash equivalents		(63	)		6,697
Cash and cash equivalents, beginning of year		93,620			83,079
Cash and cash equivalents, end of period	¥	93,557		¥	89,776

Changes resulting from revisions in accounting standards, etc: Applicable

~~The~~2) ~~accompanying~~Changes ~~Notes~~in ~~are~~other anmatters ~~integral~~except ~~part~~for of1) ~~these~~above: ~~Quarterly Consolidated Financial Statements.~~ Applicable

9Note: See (4) Others on page 10 for more details.

~~Komatsu~~(4) ~~Ltd.~~Number ~~and~~of ~~Consolidated~~common ~~Subsidiaries~~shares outstanding

~~Three~~1) ~~months~~The ~~ended~~numbers ~~June 30,~~of ~~2013~~common ~~and~~shares ~~2012~~issued (including treasury stock) were as follows:

~~Notes~~As ~~to Quarterly Consolidated~~of ~~Financial~~September 30, ~~Statements~~2013: ~~(Unaudited)~~983,130,260 shares

1.As ~~Basis~~ of ~~Quarterly~~March 31, ~~Financial~~2013: ~~Statement~~983,130,260 ~~Presentation~~shares ~~and Summary of Significant Accounting Policies~~

~~Basis~~2) The numbers of ~~Quarterly~~shares ~~Financial~~of ~~Statement~~treasury ~~Presentation~~were as follows:

~~Komatsu~~As ~~Ltd.~~of ~~(“Company”)~~September 30, ~~and~~2013: ~~consolidated subsidiaries (together “Komatsu”) prepare and present the~~29,941,260 ~~accompanying~~shares ~~quarterly consolidated financial statements in accordance with generally accepted accounting principles in the United States of America.~~

~~Summary~~As of ~~Significant~~March 31, ~~Accounting~~2013: ~~Policies~~30,351,401 shares

(13) ~~Adoption~~The weighted average numbers of ~~new~~common ~~accounting~~shares ~~standards~~outstanding were as follows:

~~Komatsu~~Six ~~adopted~~months ~~the Accounting Standards Update (“ASU”) 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”, starting in the first quarter~~ period ofended ~~FY2013, ending March~~September 3130, ~~2014.~~2013: ~~This Update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component~~953, ~~and to present~~073,969 ~~either~~shares on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. ASU 2013-02 being a disclosure regulation, such adoption did not have any impact on Komatsu’s financial position and results of operations. The disclosures required by ASU2013-02 are provided in Note 6. Other Comprehensive Income (Loss).

~~(2)~~Six ~~Change~~months inperiod ~~depreciation~~ended ~~method~~September 30, 2012: 952,319,152 shares

~~The~~2 company and some of its consolidated subsidiaries which had adopted the declining balance method for depreciation of property, plant and equipment changed the depreciation method to the straight-line method beginning April 1, 2013.

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10[Reference]

AsResults afor ~~result~~Three ofMonths ~~reviewing~~Ended ~~its depreciation method~~September 30, ~~Komatsu~~2013 ~~concluded that the straight-line method would be an appropriate depreciation method to reflect its usage of property, plants and equipment and to allocate the costs in earnings.~~

The effect of the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification (ASC) 250 “Accounting Changes and Error Corrections”.


				Millions of yen except per share amounts
	Three Months ended September 30, 2013		Three Months ended September 30, 2012		Changes
	[A]		[B]		[A-B]		[(A-B)/B]
Net sales		469,962		460,901		9,061		2.0	%

Operating income		56,533		55,546		987		1.8	%

Income before income taxes and equity in earnings of affiliated companies		60,872		54,142		6,730		12.4	%

Net income attributable to Komatsu Ltd.		41,519		33,988		7,531		22.2	%

Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	43.56	¥	35.69	¥	7.87

Diluted	¥	43.51	¥	35.66	¥	7.85

As[Reference] a result of the change in depreciation method, depreciation expense for the three months ended June 30, 2013 decreased by ¥3,042 million. Net Income attributable to Komatsu Ltd. for the three months ended June 30, 2013 increased by ¥1,883 million. Basic and Diluted net income attributable to Komatsu Ltd. per common share and for the three months ended June 30, 2013 increased by ¥1.98, and ¥1.97, respectively.

~~Excluding the~~Projection ~~above, there is no material change for Summary~~ of ~~Significant~~the ~~Accounting~~Company ~~Policies stated in annual report~~ for the ~~year~~Fiscal ~~ended~~Year Ending March 31, ~~2013.~~2014

11(From April 1, 2013 to March 31, 2014)

2. Supplemental Cash Flow Information


		Millions of yen except per share amounts
	The full fiscal year
			Changes
Net sales		700,000		(5.3	)%

Ordinary profit		145,000		69.8	%

Net income		125,000		89.3	%

Net income per share (Yen)		¥131.07

~~Additional~~Notes: ~~cash~~Percentages ~~flow~~shown ~~information~~above ~~and~~represent ~~noncash~~the ~~investing~~rates ~~and~~of ~~financing~~change ~~activities~~compared ~~for~~with the ~~three~~corresponding ~~months~~period ~~ended~~a ~~June 30,~~year ~~2013~~ago. ~~and 2012 are as follows:~~

	Millions of yen
	Three months endedJune 30, 2013		Three months endedJune 30, 2012
Additional cash flow information:
Interest paid	¥	2,898	¥	2,507
Income taxes paid		21,522		22,301
Noncash investing and financing activities:
Capital lease obligations incurred	¥	371	¥	976

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12Appendix

3. Allowance for Doubtful Receivables


Management Performance and Financial Conditions

(1) Outline of Operations and Business Results			P.5

(2) Financial Conditions			P.8

(3) Projection for the Fiscal Year Ending March 31, 2014			P.9

(4) Others			P.10

Consolidated Financial Statements

(1) Consolidated Balance Sheets			P.12

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			P.14

(3) Consolidated Statements of Cash Flows			P.18

(4) Note to the Going Concern Assumption			P.19

(5) Business Segment Information			P.19

(6) Note in Case of Notable Changes in the Amount of Shareholders’ Equity			P.20

(7) Others			P.20

At4 June 30, 2013 and at March 31, 2013, allowances for doubtful receivables deducted from “Trade notes and accounts receivable, net” and “Long-term trade receivables, net” are ¥18,068 million and ¥17,994 million, respectively.

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4.Management ~~Inventories~~Performance and Financial Conditions

At(1) ~~June 30,~~Outline ~~2013~~of Operations and atBusiness ~~March 31,~~Results ~~2013, inventories comprised the following:~~

	Millions of yen
	June 30,2013		March 31,2013
Finished products, including finished parts held for sale	¥	467,830	¥	437,729
Work in process		151,838		141,166
Materials and supplies		52,625		54,752
Total	¥	672,293	¥	633,647

Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) embarked on the “Together We Innovate GEMBA Worldwide” three-year mid-range management plan in April 2013. Under this plan, Komatsu has started to make focused efforts on 1) growth strategies based on innovation, 2) growth strategies of existing businesses, and 3) structural reforms designed to reinforce the business foundation.

14For the first six-month period (April 1 – September 30, 2013) of the fiscal year ending March 31, 2014, which represents the first year of the mid-range management plan, overall demand for construction equipment remained almost flat from the corresponding period a year ago, albeit with regional variances. Meanwhile, demand for mining equipment continued slack, as commodity prices still stayed behind recovery. As a result, sales of the construction, mining and utility equipment business declined from the corresponding period a year ago. With respect to the industrial machinery and others business, sales volume of machine tools as well as sheet-metal and press machines increased, centering on the automobile manufacturing industry. Consolidated net sales for the first six-month period decreased by 0.6% from the corresponding period a year ago, to JPY 925.1 billion (USD 9,440 million, at USD1=JPY98). Concerning profits, while Komatsu continued to make efforts to improve selling prices and production costs in addition to further depreciation of the Japanese yen as an external factor, it faced a sharp drop in sales volume of mining equipment, especially in Indonesia. Operating income declined by 2.1% to JPY108.9 billion (USD 1,112 million), and operating income ratio was 11.8%, down 0.2 percentage points from the corresponding period a year ago. Income before income taxes and equity in earnings of affiliated companies increased by 6.7% to JPY 112.4 billion (USD 1,148 million), and net income attributable to Komatsu Ltd. advanced by 19.2% to JPY 78.8 billion (USD 804 million) for the six-month period under review.

5. Investment Securities


[Consolidated Financial Highlights]								Millions of yen
	Six Months ended September 30, 2013 1USD=JPY98.0 1EUR=JPY128.2 1RMB=JPY15.9			Six Months ended September 30, 2012 1USD=JPY79.6 1EUR=JPY101.5 1RMB=JPY12.6			Changes Increase (Decrease)
	[A]			[B]			[(A-B)/B]
Net sales		925,121			930,849			(0.6	)%

Construction, Mining and Utility Equipment		830,071			839,150			(1.1	)%

Industrial Machinery and Others		99,599			97,199			2.5	%

Elimination		(4,549	)		(5,500	)		—

Segment profit		109,093			111,280			(2.0	)%

Construction, Mining and Utility Equipment		105,793			109,581			(3.5	)%

Industrial Machinery and Others		4,808			3,301			45.7	%

Corporate & elimination		(1,508	)		(1,602	)		—

Operating income		108,946			111,264			(2.1	)%

Income before income taxes and equity in earnings of affiliated companies		112,461			105,384			6.7	%

Net income attributable to Komatsu Ltd.		78,810			66,112			19.2	%

~~Investment~~Note: ~~securities~~Sales ~~at June 30, 2013~~ and atprofit ~~March 31,~~figures ~~2013,~~in ~~primarily~~this ~~consisted~~report ofshow ~~securities~~the ~~available~~respective ~~for~~sums ~~sale. Unrealized holding gains and losses are included as a component~~ of ~~accumulated other~~six ~~comprehensive~~months ~~income~~from ~~(loss)~~April ~~until~~1 ~~realized.~~to ~~The~~September ~~cost~~30, ~~gross~~2013. ~~unrealized~~Unless ~~holding~~otherwise ~~gains and losses~~noted, ~~and~~all ~~fair~~sales ~~value for such investment securities~~ by ~~major~~segment ~~security~~in ~~types~~this atreport ~~June 30,~~indicate ~~2013~~the ~~and~~amounts atbefore ~~March 31,~~elimination ~~2013,~~of ~~are~~inter-segment ~~as follows:~~ transactions.

	Millions of yen
			Gross unrealized holding
	Cost		Gains		Losses		Fair value
At June 30, 2013
Investment securities:
Marketable equity securities available for sale	¥	17,916	¥	35,620	¥	2	¥	53,534
Other investment securities at cost		8,060
	¥	25,976
At March 31, 2013
Investment securities:
Marketable equity securities available for sale	¥	17,915	¥	33,047	¥	8	¥	50,954
Other investment securities at cost		8,325
	¥	26,240

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15Business results by operation are described below.

~~Gross unrealized holding losses and the fair value of available-for-sale securities~~Construction, ~~aggregated~~Mining ~~by length of time that individual securities have been in a continuous unrealized loss position at June 30,2013~~ and ~~March 31,~~Utility ~~2013,~~Equipment ~~are as follows:~~

	Millions of yen
	Less than 12 months				12 months or longer				Total
	Fair value		Grossunrealizedholdinglosses		Fair value		Grossunrealizedholdinglosses		Fair value		Grossunrealizedholdinglosses
At June 30, 2013
Investment securities:
Marketable equity securities available for sale	¥	28	¥	2	¥	—	¥	—	¥	28	¥	2
At March 31, 2013
Investment securities:
Marketable equity securities available for sale	¥	190	¥	8	¥	—	¥	—	¥	190	¥	8

With respect to construction equipment, demand increased in Japan and upturned for recovery in China, while it declined in some other regions in the first six-month period under review. As a result, overall demand remained almost flat from the corresponding period a year ago. With respect to mining equipment, against the backdrop of prolonging sluggish prices of commodities, demand remained slack especially in Indonesia and Komatsu’s sales volume declined. Sales of parts advanced, reflecting an increase in the machine population of Komatsu construction and mining equipment, and the Japanese yen depreciated against the U.S. dollar, euro, renminbi and some other currencies compared to the corresponding period a year ago; however, first six-month sales of construction, mining and utility equipment declined by 1.1% from the corresponding period a year ago, to JPY 830.0 billion (USD 8,470 million), as impacted by a drop in sales volume of mining equipment. Segment profit decreased by 3.5% to JPY 105.7 billion (USD 1,080 million) for the six-month period under review.

Under such an environment, Komatsu ~~judged~~began the ~~decline~~market inintroduction ~~fair~~of ~~value~~D61EXi/PXi ofmedium-sized ~~investment~~Machine ~~securities~~Control atdozers ~~June 30~~in North America, ~~2013~~Europe and atJapan. ~~March 31,2013,~~This model features the world’s first fully automatic blade control as a next-generation product designed to bepromote ~~temporary~~automation of construction and to lead Komatsu’s strategies based on innovation. Komatsu also worked to strengthen the aftermarket business, bywhich ~~considering~~includes ~~such~~the ~~factors~~provision asof ~~financial~~services and ~~operating~~sales ~~conditions~~ of ~~issuer~~strategic parts, ~~the~~by ~~industry~~using inKOMTRAX (Komatsu Machine Tracking System), which is installed in over 300,000 units worldwide. With respect to new emission standards-compliant models, Komatsu continued their aggressive market introduction together with KOMATSU CARE, a new service program designed to reduce the ~~issuer~~total ~~operates~~lifecycle costs of these models and ~~other~~prolong ~~relevant~~machine ~~factors~~life.

16During the six-month period under review, Komatsu completed the construction of a new manufacturing engineering development center in the Osaka Plant in order to strengthen its research and development operations of manufacturing engineering, a key technology to reform production and improve product performance. Komatsu also promoted activities to cut down electric power consumption to half at all plants in Japan, including the construction of new factories which are equipped with cutting-edge energy-saving facilities and are designed to achieve outstanding productivity at the Awazu Plant in Ishikawa Prefecture.

6. Other Comprehensive Income (Loss)


[Sales to Outside Customers of Construction, Mining and Utility Equipment by Region]									Millions of yen
	Six Months ended September 30, 2013		Six Months ended September 30, 2012		Changes Increase (Decrease)
	[A]		[B]		[A-B]			[(A-B)/B]
Japan		150,071		132,425		17,646			13.3	%

North America		136,324		125,878		10,446			8.3	%
Latin America		121,054		132,745		(11,691	)		(8.8	)%

Americas		257,378		258,623		(1,245	)		(0.5	)%

Europe		57,247		50,973		6,274			12.3	%
CIS		35,760		41,183		(5,423	)		(13.2	)%

Europe & CIS		93,007		92,156		851			0.9	%

China		72,758		62,528		10,230			16.4	%

Asia*		91,923		130,928		(39,005	)		(29.8	)%
Oceania		87,177		99,194		(12,017	)		(12.1	)%

Asia* & Oceania		179,100		230,122		(51,022	)		(22.2	)%

Middle East		27,225		14,301		12,924			90.4	%
Africa		49,236		47,513		1,723			3.6	%

Middle East & Africa		76,461		61,814		14,647			23.7	%

Total		828,775		837,668		(8,893	)		(1.1	)%

~~Changes~~* inExcluding ~~accumulated~~Japan ~~other~~and ~~comprehensive income (loss) for the three months ended June 30, 2013 are as follows:~~ China

	Millions of yen
	Three months ended June 30, 2013
	Foreigncurrencytranslationadjustments			Net unrealizedholding gains(losses) onsecuritiesavailable for sale		Pensionliabilityadjustments			Net unrealizedholding gains(losses) onderivativeinstruments			Total
Balance, beginning of year	¥	(38,833	)	¥	21,519	¥	(24,835	)	¥	(1,291	)	¥	(43,440	)
Other comprehensive income (loss) before reclassifications		28,645			1,671		(118	)		(2,616	)		27,582
Amounts reclassified from accumulated other comprehensive income (loss)		—			—		413			3,503			3,916
Net current-period other comprehensive income (loss)		28,645			1,671		295			887			31,498
Less: other comprehensive income (loss) attributable to noncotrolling interests		134			—		(1	)		9			142
Other comprehensive income (loss) attributable to Komatsu Ltd.		28,511			1,671		296			878			31,356
Equity transactions with noncontrolling interests		(24	)		—		—			—			(24	)
Balance, end of period	¥	(10,346	)	¥	23,190	¥	(24,539	)	¥	(413	)	¥	(12,108	)

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~~Reclassifications~~Komatsu’s ~~out~~operations ofby ~~accumulated~~region ~~other comprehensive income (loss) for the three months ended June 30, 2013~~ are asdescribed ~~follows:~~below.

	Millions of yen
	Three months ended			Affected line items in
	June 30, 2013			consolidated statements of income
Pension liability adjustments
Amortization of actuarial loss and prior service cost	¥	(612	)	*2
		(612	)	Total before tax
		199		Income taxes
		(413	)	Net of tax
Net unrealized holding gains (losses) on derivative instruments
Forwards contracts		(5,658	)	Other income (expenses), net: Other, net
		(5,658	)	Total before tax
		2,155		Income taxes
		(3,503	)	Net of tax
Total reclassifications for the period	¥	(3,916	)	Net of tax

Japan

*1During ~~Amounts~~the six-month period under review, demand for construction equipment increased, supported by demand in ~~parentheses~~the ~~indicate~~regions ~~debits~~destroyed by the Great East Japan Earthquake through full-scale civil engineering works which began with the construction and relocation of residences for community development in ~~profit/loss~~addition to an increase in public investment resulting from fiscal measures. Demand advanced especially in rental companies. As a result, sales increased from the corresponding period a year ago.

*2In ~~This~~September, ~~amount~~Komatsu isbegan ~~included~~the inmarket introduction of the ~~computation~~D61PXi medium-sized Machine Control dozer, starting with Komatsu Rental Ltd. and Komatsu-affiliated rental companies, which are very familiar with GNSS (Global Navigation Satellite System) technologies, such as GPS (Global Positioning System) and GLONASS, and management know-how of ~~net~~ICT ~~periodic~~devices. ~~pension~~With ~~cost~~respect to new products that are compliant with new emissions standards, which have become effective steadily, Komatsu launched over 30 models last year and has worked to expand their sales. In October, Komatsu began sales of HB205-2, the new emission standard-compliant model of the hybrid hydraulic excavator.

17Americas

~~Tax~~In North ~~effects~~America, ~~allocated~~while todemand ~~each~~increased ~~component~~in ofthe ~~other~~housing ~~comprehensive~~and ~~income~~energy ~~(loss)~~development ~~for~~sectors, that in the ~~three~~rental ~~months~~sector ~~ended~~declined from the corresponding period a year ago. As a result, overall demand lacked a growth momentum in the first six-month period under review. Sales increased from the corresponding period a year ago, supported by the Japanese yen’s depreciation. In June 30, ~~2013~~Komatsu ~~are~~launched asD61EXi/PXi ~~follows:~~medium-sized Machine Control dozers first in North America and has steadily increased their sales.

	Millions of yen
	Three months ended June 30, 2013
	Before tax			Tax (expense)			Net of tax
	amount			or benefit			amount
Foreign currency translation adjustments
Foreign currency translation adjustments arising during period	¥	28,703		¥	(58	)	¥	28,645
Less: reclassification adjustment for gains included in net income		—			—			—
Net foreign currency translation adjustments		28,703			(58	)		28,645
Net unrealized holding gains (losses) on securities available for sale
Unrealized holding gains arising during period		2,593			(922	)		1,671
Less: reclassification adjustment for gains included in net income		—			—			—
Net unrealized gains		2,593			(922	)		1,671
Pension liability adjustments
Pension liability adjustments arising during period		(268	)		150			(118	)
Less: reclassification adjustment for gains included in net income		612			(199	)		413
Net pension liability adjustments		344			(49	)		295
Net unrealized holding gains (losses) on derivative instruments
Changes in fair value of derivatives		(4,229	)		1,613			(2,616	)
Net gains reclassified into earnings		5,658			(2,155	)		3,503
Net unrealized gains		1,429			(542	)		887
Other comprehensive income (loss)	¥	33,069		¥	(1,571	)	¥	31,498

In Latin America, while demand for construction equipment advanced in Brazil, the largest market of the region, demand for mining equipment for use in copper mines in Chile and Peru downturned due to a fall of the international price of copper, where demand had remained steady in the previous fiscal year. As a result, sales declined from the corresponding period a year ago.

18Europe & CIS

7In Europe, demand remained slack in Germany and France, among major markets, as economies slowed down against the backdrop of the Eurozone crisis. ~~Share-Based~~However, ~~Compensation~~sales increased from the corresponding period a year ago, reflecting the Japanese yen’s depreciation.

~~The~~In ~~Company~~CIS, ~~intends~~sales todeclined ~~transfer~~from the ~~Company’s~~corresponding ~~shares~~period toa ~~directors~~year ~~and~~ago, ~~certain~~as ~~employees~~impacted ~~and~~by ~~certain~~demand ~~directors~~downturned offor ~~subsidiaries~~mining ~~under~~equipment anin ~~agreement~~gold ~~granting~~mines. Based on the ~~right~~mid- ~~for~~to ~~them~~long-range toperspective ~~request~~and ~~such~~following ~~transfers at~~the aagreements ~~predetermined~~with ~~price.~~Pacific National University last year, Komatsu ~~recognizes~~donated ~~compensation~~hands-on ~~expense~~training ~~using~~materials ~~the~~for ~~fair~~a ~~value~~special ~~method.~~course ~~For~~and opened the ~~three~~course ~~months~~taught ~~ended~~by ~~June 30,~~Komatsu ~~2013~~engineers ~~and~~at ~~2012~~Far Eastern Federal University. In collaboration with the University, nothe ~~compensation~~course ~~expense~~is ~~was~~designed ~~recorded~~to asdevelop nohuman ~~right~~resources ~~was~~for ~~granted~~construction, mining and road construction equipment.

19China

8.Demand, ~~Net~~which ~~Income~~had ~~Attributable~~been tosluggish since FY2011, upturned in April this year. Sales of Komatsu’s ~~Ltd~~flagship 20-ton class hydraulic excavators, which were launched in the previous fiscal year, advanced steadily, as did smaller models. ~~per~~Sales ~~Share~~for 30-ton class hydraulic excavators also recovered in June this year. As a result, sales improved from the corresponding period a year ago. By maximizing the use of KOMTRAX, Komatsu worked to assess market conditions as quickly as possible and manage its inventories at an appropriate level.

A7 ~~reconciliation of the numerators and denominators of the basic and diluted net income attributable to Komatsu Ltd. per share computations is as follows:~~

	Millions of yen
	Three months endedJune 30, 2013		Three months endedJune 30, 2012
Net income attributable to Komatsu Ltd.	¥	37,291	¥	32,124
	Number of shares
	Three months endedJune 30, 2013		Three months endedJune 30, 2012
Weighted average common shares outstanding, less treasury stock		952,974,378		952,310,027
Dilutive effect of:
Stock options		969,467		757,193
Weighted average diluted common shares outstanding		953,943,845		953,067,220
	Yen
	Three months endedJune 30, 2013		Three months endedJune 30, 2012
Net income attributable to Komatsu Ltd. per share:
Basic	¥	39.13	¥	33.73
Diluted	¥	39.09	¥	33.71

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20Asia & Oceania

9In Indonesia, the largest market of Southeast Asia, demand for mining and construction equipment dropped, as mainly affected by a plunge in the international price of thermal coals and continuing depreciation of the Indonesian rupiah. ~~Contingent~~As ~~Liabilities~~a result, sales in Asia dropped from the corresponding period a year ago.

AtIn ~~June 30~~Oceania, ~~2013~~as ~~and~~both atdemand ~~March 31, 2013, Komatsu was contingently liable~~ for ~~discounted~~mining ~~and~~equipment ~~transferred~~in ~~receivables~~iron onore amines ~~recourse basis with the financial institutions of ¥309 million~~ and ~~¥406~~that ~~million,~~for ~~respectively.~~construction ~~Komatsu~~equipment ~~provides~~remained ~~guarantees to third parties of loans of the employees~~sluggish, ~~affiliated~~sales ~~companies,~~declined ~~customers and other companies. The guarantees of loans relating to the employees are mainly made for their housing~~from ~~loans. The guarantees of loans relating to~~ the ~~affiliated~~corresponding ~~companies,~~period ~~customers and other companies are made to enhance the credit of those companies. For each guarantee provided, Komatsu would have to perform under~~ a ~~guarantee,~~year ~~if the borrower defaults on a payment within the contract terms~~ago. ~~The~~With ~~contract~~respect ~~terms are from 10 years~~ to ~~30 years in~~ the ~~case~~large-scale ofproject ~~employees with housing loans, and from 1 year~~ to 11deliver ~~years~~driverless indump ~~the~~trucks ~~case of loans relating to the affiliated companies, customers and other companies. The maximum amount of undiscounted payments Komatsu would have had to make~~ in ~~the~~Rio ~~event of default was ¥91,742 million and ¥94,776 million at June 30, 2013 and at March 31, 2013, respectively. The fair value of the liabilities recognized for Komatsu~~Tinto’s ~~obligations~~iron asore ~~guarantors~~mines ~~under~~in ~~those guarantees at June 30~~Australia, ~~2013 was insignificant. Certain of those guarantees were secured by collateral and insurance issued to~~ Komatsu. Management of Komatsu believes that losses from those contingent liabilities, if any, would not have a material effect on the consolidated financial statements. Komatsu is involved in certain legal actions and ~~claims~~Rio ~~arising~~Tinto incontinued ~~the~~to ~~ordinary~~make ~~course~~good ofprogress ~~its~~as ~~business.~~one Itsolid isteam the opinion of management and legal counsel that such litigation and claims will be resolved without material effect on Komatsu’s financial statements. Komatsu has business activities with customers, dealers and associates around the world and its trade receivables from such parties are well diversified to ~~minimize concentrations of credit risks~~succeed. ~~Management does not anticipate incurring losses on its trade receivables in excess of established allowances.~~

21Middle East & Africa

10In Turkey, a major market of the Middle East, while political instability continued to prevail in some aspects, demand for construction equipment remained steady, supported by an increase in public investment driven by the government. ~~Derivative~~Sales ~~Financial~~increased ~~Instruments~~in the Middle East from the corresponding period a year ago, partly reflecting the market conditions in Turkey.

~~Notional~~In ~~principal~~Africa, ~~amounts~~demand ofadvanced ~~derivative~~in ~~financial~~coal ~~instruments~~mines ~~outstanding~~in atSouth Africa ~~June 30,~~and ~~2013~~in ~~and~~copper atmines ~~March 31~~in Zambia. As a result, ~~2013~~sales ~~are~~increased from the corresponding period a year ago. Komatsu advanced its program with mining customers to improve their jobsite productivity by analyzing KOMTRAX information as ~~follows:~~part of brand management activities.

	Millions of yen
	June 30, 2013		March 31, 2013
Forwards:
Sale of foreign currencies	¥	142,402	¥	130,060
Purchase of foreign currencies		53,239		39,904
Interest rate swaps, cross-currency swaps and interest rate cap agreements		95,905		103,182

Industrial Machinery and Others

~~Fair~~While ~~values~~demand offor ~~derivative~~wire ~~instruments~~saws atcontinued ~~June 30~~to stay sluggish, ~~2013~~the sales volume of machine tools, as well as sheet-metal and ~~March 31~~press machines, ~~2013~~advanced centering on the ~~consolidated~~ ~~balance~~automobile ~~sheets~~manufacturing ~~are~~industry. asAs ~~follows~~a ~~(Notes~~result, 11sales of the industrial machinery and 12others business increased by 2.5% from the corresponding period a year ago, to JPY 99.5 billion (USD 1,016 million):. Segment profit also improved by 45.7% to JPY 4.8 billion (USD 49 million) for the first six-month period under review.

	Millions of yen
	June 30, 2013
	Derivative Assets			Derivative Liabilities
Derivative instruments designated as hedging instruments	Location on the consolidated Balance Sheets	Estimatedfair value		Location on the consolidated Balance Sheets	Estimatedfair value
Forwards contracts	Deferred income taxes and other current assets	¥	259	Deferred income taxes and other current liabilities	¥	857
	Deferred income taxes and other assets		—	Deferred income taxes and other liabilities		5,099
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		18	Deferred income taxes and other current liabilities		937
Total		¥	277		¥	6,893

Komatsu aggressively worked to expand sales of strategic products, such as NTG-4SP grinders, H1F-2 small AC Servo presses, and new KFL Series fiber laser cutting machines, all designed to enhance customers’ productivity, safety and environmental performance.

	Derivative Assets			Derivative Liabilities
Undesignated derivative instruments	Location on the consolidated BalanceSheets	Estimatedfair value		Location on the consolidated BalanceSheets	Estimatedfair value
Forwards contracts	Deferred income taxes and other current assets	¥	1,389	Deferred income taxes and other current liabilities	¥	3,867
	Deferred income taxes and other assets		1	Deferred income taxes and other liabilities		5
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		261	Deferred income taxes and other current liabilities		606
	Deferred income taxes and other assets		162	Deferred income taxes and other liabilities		461
Total		¥	1,813		¥	4,939
Total Derivative Instruments		¥	2,090		¥	11,832

(2) Financial Conditions

22As of September 30, 2013, total assets increased by JPY28.8 billion from the previous fiscal year-end, to JPY2,546.6 billion (USD 25,987 million), mainly due to the Japanese yen’s depreciation against U.S. dollar, euro and renminbi from the previous fiscal-year end. Interest-bearing debt declined by JPY58.8 billion from the previous fiscal year-end, to JPY620.8 billion (USD 6,336 million). Komatsu Ltd. shareholders’ equity increased by JPY85.2 billion from the previous fiscal year-end, to JPY1,278.4 billion (USD 13,045 million). As a result, Komatsu Ltd. shareholders’ equity ratio increased by 2.8 percentage points from the previous fiscal year-end, to 50.2%. Net debt-to-equity ratio* was 0.41, compared to 0.49 as of the previous fiscal year-end.

	Millions of yen
	March 31, 2013
	Derivative Assets			Derivative Liabilities
Derivative instruments designated as hedging instruments	Location on the consolidated Balance Sheets	Estimatedfair value		Location on the consolidated Balance Sheets	Estimatedfair value
Forwards contracts	Deferred income taxes and other current assets	¥	43	Deferred income taxes and other current liabilities	¥	2,479
	Deferred income taxes and other assets		—	Deferred income taxes and other liabilities		3,905
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		42	Deferred income taxes and other current liabilities		1,063
Total		¥	85		¥	7,447

*	Net debt-to-equity ratio = (Interest-bearing debt – Cash and cash equivalents – Time deposits) / Komatsu Ltd. shareholders’ equity

	Derivative Assets			Derivative Liabilities
Undesignated derivative instruments	Location on the consolidated Balance Sheets	Estimatedfair value		Location on the consolidated Balance Sheets	Estimatedfair value
Forwards contracts	Deferred income taxes and other current assets	¥	463	Deferred income taxes and other current liabilities	¥	3,628
	Deferred income taxes and other assets		1	Deferred income taxes and other liabilities		11
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		2	Deferred income taxes and other current liabilities		791
	Deferred income taxes and other assets		288	Deferred income taxes and other liabilities		272
Total		¥	754		¥	4,702
Total Derivative Instruments		¥	839		¥	12,149

LOGO

~~The~~For ~~effects~~the first six-month period under review, net cash provided by operating activities totaled JPY163.6 billion (USD 1,670 million), an increase of ~~derivative~~JPY67.3 ~~instruments~~billion onfrom the ~~consolidated~~corresponding ~~statements~~period a year ago, mainly due to the collection of ~~income~~notes and ~~consolidated~~accounts ~~statements~~receivable, coupled with increased net income. Net cash used in investing activities amounted to JPY76.1 billion (USD 777 million), an increase of ~~comprehensive~~JPY12.8 ~~income~~billion from the corresponding period a year ago mainly due to the purchase of fixed assets. Net cash used in financing activities totaled JPY91.9 billion (USD 939 million), mainly due to the repayment of debt, as compared to JPY31.9 billion used for the ~~three~~corresponding ~~months~~period ~~ended~~a ~~June~~year ago. After adding the effects of foreign exchange fluctuations, cash and cash equivalents, as of September 30, 2013, ~~and~~totaled JPY91.6 ~~2012~~billion ~~are~~(USD as935 ~~follows:~~million), a decrease of JPY1.9 billion from the previous fiscal year-end.

~~Derivative~~(3) ~~instruments~~Projection ~~designated~~for ~~as cash~~the ~~flow~~Fiscal ~~hedging~~Year ~~relationships~~Ending March 31, 2014

	Millions of yen
	Three months ended June 30, 2013
	Effective portion							Ineffective portion and amountexcluded from effectiveness testing
	Amount ofgains (losses)recognized inOCI onderivatives			Location of gains (losses) reclassified from accumulated OCI into income	Amount of gains (losses)reclassified from accumulatedOCI into income			Location of gains (losses) recognized inincome on derivatives		Amount of gains (losses) recognized inincome on derivatives
Forwards contracts	¥	(4,262	)	Other income (expenses), net: Other, net	¥	(5,658	)		—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		33		—		—			—		—
Total	¥	(4,229	)		¥	(5,658	)			¥	—

(From April 1, 2013 to March 31, 2014)

	Millions of yen
	Three months ended June 30, 2012
	Effective portion						Ineffective portion and amountexcluded from effectiveness testing
	Amount of gains (losses)recognized inOCI onderivatives			Location of gains (losses)reclassified from accumulated OCIinto income	Amount of gains (losses)reclassified from accumulatedOCI into income		Location of gains (losses) recognized inincome on derivatives		Amount of gains (losses) recognized inincome on derivatives
Forwards contracts	¥	4,028		Other income (expenses), net: Other, net	¥	1,270		—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		(498	)	—		—		—		—
Total	¥	3,530			¥	1,270			¥	—

With respect to the construction, mining and utility equipment business, Komatsu is projecting that sales volume will outperform the amount, which Komatsu anticipated at the beginning of the current fiscal year, in Japan where demand has remained steady, and in China where demand has upturned for recovery. Meanwhile, demand for equipment for use in mines has lingered at a level significantly lower than Komatsu’s estimation made at the start of the fiscal year, mainly in Latin America, Oceania and Asia centering on Indonesia. In this light, Komatsu is assuming that sales of this business will fall short of its projection of April 25, 2013. Concerning profits, while facing a decline in sales volume in the construction, mining and utility equipment business, Komatsu is also assuming some factors of loss, including a future risk on the inventory of wire saws, whose demand has stayed slack in the industrial machinery and others business. Accordingly, Komatsu is estimating that profits will also fall short of its initial projection. Based on these conditions, Komatsu has revised its projections of consolidated sales and profits for the fiscal year, ending March 31, 2014.

*As ~~OCI~~preconditions ~~stands~~ for ~~other~~its ~~comprehensive~~current ~~income~~projection, Komatsu is assuming the foreign exchange rates as follows: USD1=JPY96.5, EUR1=JPY125.6 and RMB1=JPY15.6. (~~loss)~~Preconditions for its initial projection: USD1=JPY95, EUR1=JPY123 and RMB1=JPY15.3)

24Projection for Consolidated Business Results for the Fiscal Year Ending March 31, 2014

Derivative instruments not designated as hedging instruments relationships


						Millions of yen except per share amounts
	Earlier projection		Current projection		Changes						Results for FY ended March 31, 2013
	[A]		[B]		[B-A]			[(B-A)/A]			Results for FY ended March 31, 2013
Net sales		2,050,000		1,860,000		(190,000	)		(9.3	)%		1,884,991

Operating income		305,000		210,000		(95,000	)		(31.1	)%		211,602

Income before income taxes and equity in earnings of affiliated companies		297,000		209,000		(88,000	)		(29.6	)%		204,603

Net income attributable to Komatsu Ltd.		184,000		136,000		(48,000	)		(26.1	)%		126,321

Net income attributable to Komatsu Ltd. per share—basic (Yen)		193.12		142.69		—			—			132.64

	Millions of yen
	Three months ended June 30, 2013
	Location of gains (losses) recognized in income on derivatives	Amount of gains (losses) recognizedin income on derivatives
Forwards contracts	Other income (expenses), net: Other, net	¥	220
Option contracts	Other income (expenses), net: Other, net		0
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		58
	Other income (expenses), net: Other, net		136
Total		¥	414
	Millions of yen
	Three months ended June 30, 2012
	Location of gains (losses) recognized in income on derivatives	Amount of gains (losses) recognizedin income on derivatives
Forwards contracts	Other income (expenses), net: Other, net	¥	1,905
Option contracts	Other income (expenses), net: Other, net		1
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		(77	)
	Other income (expenses), net: Other, net		307
Total		¥	2,136

LOGO

~~11.~~[Reference] ~~Fair Values of Financial Instruments~~

~~(1)~~Projection ~~Cash~~of ~~and~~the ~~cash~~Company ~~equivalents,~~for ~~Time~~the ~~deposits,~~Fiscal ~~Trade~~Year ~~notes~~Ending ~~and accounts receivable~~March 31, ~~Other~~2014 ~~current assets, Short-term debt, Trade notes, bills and accounts payables, and Other current liabilities~~

~~The~~Similarly, ~~carrying~~the ~~amount~~Company ~~approximates~~is ~~fair~~also ~~value~~projecting ~~because~~that non-consolidated volume of sales of mining equipment will decline in the ~~short~~construction, ~~maturity~~mining and utility equipment business. In this light, the Company has revised its projection of ~~these~~April 25, ~~instruments~~2013 for non-consolidated net sales and profits for the fiscal year, ending March 31, 2014(April 1, 2013 – March 31, 2014).

~~(2)~~Projection ~~Investment~~of ~~securities,~~the ~~marketable~~Company ~~equity~~for ~~securities~~the Fiscal Year Ending March 31, 2014

The fair values of investment securities available for sale for which it is practicable to estimate fair value are based on quoted market prices and are recognized on the accompanying consolidated balance sheets.


						Millions of yen except per share amounts
	Earlier projection		Current projection		Changes						Results for FY ended March 31, 2013
	[A]		[B]		[B-A]			[(B-A)/A]			Results for FY ended March 31, 2013
Net sales		790,000		700,000		(90,000	)		(11.4	)%		738,871

Ordinary profit		175,000		145,000		(30,000	)		(17.1	)%		85,390

Net income		137,000		125,000		(12,000	)		(8.8	)%		66,016

Net income per share—basic (Yen)		143.71		131.07		—			—			69.28

(34) ~~Long-term~~Others ~~trade receivables~~

~~The~~(1) ~~fair~~Changes ~~values~~in ofimportant ~~long-term~~subsidiaries ~~trade~~during ~~receivables are based on~~ the ~~present~~six ~~value~~month ofperiod ~~future~~under ~~cash~~review: ~~flows through maturity, discounted using estimated current interest rates. The fair values computed on such a basis approximate the carrying amounts.~~ None

(42) ~~Long-term~~Use ~~debt,~~of ~~including~~simplified ~~current~~accounting ~~portion(Note~~procedures ~~12)~~and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None

~~The~~(3) ~~fair~~Changes ~~values of each of the long-term debts are based on the quoted price~~ in ~~the~~Significant ~~most~~Accounting ~~active~~Rules, ~~market~~Procedures orand ~~the~~Presentation ~~present value of future cash flows associated with each instrument discounted using the current borrowing rate for similar debt of comparable maturity~~ and isChanges ~~classified~~ in ~~Level~~Significant 2Accounting inPolicies ~~the~~and ~~fair value hierarchy.~~ Estimates

(51) ~~Derivatives(Notes~~Changes 10resulting ~~and~~from ~~12)~~revisions in accounting standards, etc.: Applicable

~~The~~From ~~fair~~the ~~values~~fiscal year ofending ~~derivative~~March 31, ~~financial instruments~~2014, ~~consisting~~ ~~principally~~Komatsu ofadopted ~~foreign~~the ~~exchange~~Accounting ~~contracts~~Standards ~~and~~Update ~~interest~~(“ASU”) ~~swap agreements~~2013-02, ~~are~~“Reporting ~~estimated~~of byAmounts ~~obtaining~~Reclassified ~~quotes~~Out ~~from~~of ~~brokers~~Accumulated ~~and~~Other ~~are~~Comprehensive ~~recognized~~Income”. This adoption did not have any impact on Komatsu’s ~~the~~financial ~~accompanying~~position ~~consolidated~~and ~~balance~~results ~~sheets~~of operations.

262) Changes in other matters except for 1) above: Applicable

The ~~carrying~~Company ~~amounts~~ and ~~the~~some ~~estimated~~of ~~fair~~its consolidated ~~values~~subsidiaries ofwhich ~~the~~had ~~financial~~adopted ~~instruments,~~the ~~including financial~~declining ~~instruments~~balance ~~not~~method ~~qualifying~~for asdepreciation ~~hedge,~~of ~~at June 30~~property, ~~2013~~plant and atequipment ~~March 31,~~changed ~~2013,~~the ~~are~~depreciation ~~summarized~~method asto ~~follows:~~the straight-line method beginning April 1, 2013.

	Millions of yen
	June 30, 2013				March 31, 2013
	Carryingamount		Estimatedfair value		Carryingamount		Estimatedfair value
Cash and cash equivalents	¥	93,557	¥	93,557	¥	93,620	¥	93,620
Time deposits		222		222		217		217
Trade notes and accounts receivable		580,283		580,283		606,904		606,904
Long-term trade receivables		241,283		241,283		235,825		235,825
Investment securities, marketable equity securities		53,534		53,534		50,954		50,954
Short-term debt		254,192		254,192		205,156		205,156
Trade notes, bills and accounts payable		228,908		228,908		226,275		226,275
Long-term debt, including current portion		439,320		429,825		474,607		469,444
Derivatives:
Forwards and options
Assets		1,649		1,649		507		507
Liabilities		9,828		9,828		10,023		10,023
Interest rate swaps, cross-currency swaps and interest rate cap agreements
Assets		441		441		332		332
Liabilities		2,004		2,004		2,126		2,126

Komatsu promotes continuous innovation of technologies by concentrating the production of high-value added and technologically important key components in Japan, and also undertakes integrated development and production under the Mother Plant system. As a general rule, Komatsu engages in local production in different parts of the world where there is sufficient market demand for its products. With respect to mainstay products, however, Komatsu has facilitated effective use of its global production capacities by cross sourcing finished products after producing them at its most cost-effective plants and exporting them in light of changes in market demand and foreign exchange rate. Komatsu is establishing its production efficiency, standardization of production and stable operation of production facilities through renewing its old factory buildings in Japan, reassessing logistics and reforming production process by technology innovation as well as cutting down electric power consumption in half at its plants in Japan. With respect to capital investment, Komatsu continues to invest in its production facilities for renovation at a constant level. In light of those activities, Komatsu expects stable production and facility utilization within its production capacity, and is able to receive economic benefits from those facilities at a constant rate throughout their durable periods.

~~Limitations~~ 10

LOGO

27As a result of reviewing its depreciation method, Komatsu concluded that the straight-line method would be an appropriate depreciation method to reflect its usage of property, plants and equipment and to allocate the costs in earnings.

~~12.~~The ~~Fair~~effect ~~value~~of ~~measurements~~the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification (ASC) 250 “Accounting Changes and Error Corrections”.

~~ASC~~As ~~820,~~a result ~~“Fair~~of ~~Value~~the ~~Measurements~~change ~~and~~in ~~Disclosures”~~depreciation ~~defines~~method, ~~that~~depreciation ~~fair~~expense ~~value~~for is the ~~price~~six ~~that~~months ~~would~~ended beSeptember 30, ~~received~~2013 todecreased ~~sell~~by anapproximately ~~asset~~JPY5.3 orbillion. ~~paid~~Net toIncome ~~transfer~~attributable ato ~~liability~~Komatsu inLtd. anfor ~~orderly transaction between market participants at~~ the ~~measurement~~six ~~date.~~months ~~ASC~~ended ~~820~~September 30, ~~establishes~~2013 increased aby ~~three-level~~approximately ~~fair~~JPY3.3 ~~value~~billion. ~~hierarchy~~Both ~~that~~Basic ~~prioritizes~~and ~~the~~Diluted ~~inputs~~net ~~used~~income attributable to ~~measure~~Komatsu ~~fair value~~Ltd. ~~The~~per ~~three~~common ~~levels~~share offor ~~inputs~~the ~~used~~six tomonths ~~measure~~ended ~~fair~~September 30, ~~value~~2013 ~~are~~increased asby ~~follows:~~JPY3.50.

~~Level~~Cautionary 1Statement ~~– Quoted prices in active markets for identical assets or liabilities~~

~~Level~~The 2announcement –set ~~Inputs~~forth ~~other~~herein contains ~~than~~forward-looking ~~quoted~~statements ~~prices~~which ~~included~~reflect ~~within~~management’s ~~Level~~current 1views ~~that~~with ~~are~~respect ~~observable~~to ~~for~~certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the ~~assets~~use of orterms ~~liabilities~~such as “will,” ~~either~~“believes,” ~~directly~~“should,” “projects” and similar terms and expressions that identify future events or ~~indirectly~~expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.

~~Level~~Factors 3that –may ~~Unobservable~~cause ~~inputs~~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 ~~assets~~Company’s principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or ~~liabilities~~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.

2811

LOGO

~~The~~Consolidated ~~fair~~Financial ~~value~~Statements ~~hierarchy levels of assets and liabilities that are measured at fair value on a recurring basis at June 30, 2013 and at March 31, 2013 are as follows:~~

	Millions of yen
June 30, 2013	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
Manufacturing industry	¥	28,051	¥	—	¥	—	¥	28,051
Financial service industry		21,833		—		—		21,833
Other		3,650		—		—		3,650
Derivatives
Forward contracts		—		1,649		—		1,649
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		441		—		441
Total	¥	53,534	¥	2,090	¥	—	¥	55,624
Liabilities
Derivatives
Forward contracts	¥	—	¥	9,828	¥	—	¥	9,828
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		2,004		—		2,004
Other		—		79,524		594		80,118
Total	¥	—	¥	91,356	¥	594	¥	91,950
	Millions of yen
March 31, 2013	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
Manufacturing industry	¥	28,061	¥	—	¥	—	¥	28,061
Financial service industry		19,299		—		—		19,299
Other		3,594		—		—		3,594
Derivatives
Forward contracts		—		507		—		507
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		332		—		332
Total	¥	50,954	¥	839	¥	—	¥	51,793
Liabilities
Derivatives
Forward contracts	¥	—	¥	10,023	¥	—	¥	10,023
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		2,126		—		2,126
Other		—		76,239		639		76,878
Total	¥	—	¥	88,388	¥	639	¥	89,027

(1) Consolidated Balance Sheets

~~Investment~~Assets ~~securities available for sale~~

~~Marketable~~Millions ~~equity~~of ~~securities~~yen ~~are classified in Level 1 in the fair value hierarchy. Marketable equity securities are measured using a market approach based on the quoted market prices in active markets.~~

As of September 30, 2013

As of March 31, 2013

Ratio (%)

Ratio (%)

Current assets

Cash and cash equivalents

91,675

93,620

Time deposits

369

217

Trade notes and accounts receivable, net

541,586

606,904

Inventories

679,938

633,647

Deferred income taxes and other current assets

162,547

157,668

Total current assets

1,476,115

58.0

1,492,056

59.3

Long-term trade receivables, net

245,136

9.6

235,825

9.4

Investments

Investments in and advances to affiliated companies

19,483

19,404

Investment securities

62,590

59,279

Other

2,656

2,574

Total investments

84,729

3.3

81,257

3.2

Property, plant and equipment

- less accumulated depreciation and amortization

616,017

24.2

585,220

23.2

Goodwill

35,132

1.4

34,703

1.4

Other intangible assets

- less accumulated amortization

57,234

2.2

58,523

2.3

Deferred income taxes and other assets

32,326

1.3

30,273

1.2

Total

2,546,689

100.0

2,517,857

100.0

~~Derivatives~~12 ~~(Notes 10 and 11)~~

LOGO

~~Other~~Liabilities and Equity

~~Other~~Millions ~~primarily represents loans which are measured at fair value under the Fair Value Option~~ of ~~FASB~~yen ASC 825, “Financial Instruments”. The fair value of loans is based on a valuation model based on market yield curve data and credit spread data and is classified in Level 2 in the fair value hierarchy. The credit spread data was obtained through use of credit default swaps for each counterparty.

The following table summarizes information about changes of Level 3 for the three months ended June 30, 2013 and 2012

As of September 30, 2013

As of March 31, 2013

Ratio (%)

Ratio (%)

Current liabilities

Short-term debt

199,509

205,156

Current maturities of long-term debt

105,842

130,793

Trade notes, bills and accounts payable

234,508

226,275

Income taxes payable

25,567

33,227

Deferred income taxes and other current liabilities

230,991

232,125

Total current liabilities

796,417

31.3

827,576

32.8

Long-term liabilities

Long-term debt

315,530

343,814

Liability for pension and retirement benefits

51,013

49,912

Deferred income taxes and other liabilities

45,991

43,860

Total long-term liabilities

412,534

16.2

437,586

17.4

Total liabilities

1,208,951

47.5

1,265,162

50.2

Komatsu Ltd. shareholders’ equity

Common stock

67,870

67,870

Capital surplus

139,045

138,818

Retained earnings:

Appropriated for legal reserve

39,634

38,230

Unappropriated

1,089,030

1,034,504

Accumulated other comprehensive income (loss)

(14,915

)

(43,440

)

Treasury stock

(42,215

)

(42,788

)

Total Komatsu Ltd. shareholders’ equity

1,278,449

50.2

1,193,194

47.4

Noncontrolling interests

59,289

2.3

59,501

2.4

Total equity

1,337,738

52.5

1,252,695

49.8

Total

2,546,689

100.0

2,517,857

100.0

	Millions of yen
	Three months endedJune 30, 2013			Three months endedJune 30, 2012
Balance, beginning of year	¥	(639	)	¥	(752	)
Total gains or losses (realized / unrealized)		45			148
Included in earnings		75			124
Included in other comprehensive income (loss)		(30	)		24
Balance, end of period	¥	(594	)	¥	(604	)

LOGO

~~Assets~~(2) ~~and~~Consolidated ~~liabilities~~Statements ~~that~~of ~~are~~Income ~~measured~~and atConsolidated ~~fair~~Statements ~~value~~of Comprehensive onIncome ~~a non-recurring basis~~

~~During~~Six ~~three~~ months ended ~~June~~September 30, 2013 and 2012 ~~assets and liabilities that were measured at fair value on a non-recurring basis were not material.~~

30Consolidated Statements of Income

~~13.~~Millions ~~Committed~~of ~~Credit~~yen ~~Lines~~except per share amounts

Certain consolidated subsidiaries maintain committed credit line agreements totaling ¥46,347 million and ¥49,997 million, respectively, at June 30, 2013 and at March 31, 2013 with financial institutions to secure liquidity. At June 30, 2013 and at March 31, 2013, ¥10,350 million and ¥14,738 million, respectively, were available to be used under such credit line agreements.


	Six Months ended September 30, 2013						Six Months ended September 30, 2012
				Ratio (%)						Ratio (%)
Net sales	¥	925,121			100.0		¥	930,849			100.0
Cost of sales		660,541			71.4			678,085			72.8
Selling, general and administrative expenses		155,487			16.8			141,484			15.2
Other operating income (expenses), net		(147	)		(0.0	)		(16	)		(0.0	)

Operating income		108,946			11.8			111,264			12.0

Other income (expenses), net
Interest and dividend income		2,286			0.2			2,268			0.2
Interest expense		(4,363	)		(0.5	)		(4,506	)		(0.5	)
Other, net		5,592			0.6			(3,642	)		(0.4	)

Total other income (expenses)		3,515			0.4			(5,880	)		(0.6	)

Income before income taxes and equity in earnings of affiliated companies		112,461			12.2			105,384			11.3

Income taxes		30,120			3.3			34,716			3.7
Income before equity in earnings of affiliated companies		82,341			8.9			70,668			7.6
Equity in earnings of affiliated companies		944			0.1			568			0.1
Net income		83,285			9.0			71,236			7.7
Less: Net income attributable to noncontrolling interests		4,475			0.5			5,124			0.6

Net income attributable to Komatsu Ltd.	¥	78,810			8.5		¥	66,112			7.1

Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	82.69					¥	69.42
Diluted	¥	82.60					¥	69.37

3114

LOGO

~~Three~~Consolidated ~~months~~Statements ~~ended~~of ~~June 30,~~Comprehensive ~~2013~~Income

~~Payment~~Millions ~~amount~~ of ~~dividends~~yen

Resolution	Type of stock		Aggregateamount ofdividends(Millions of yen)				Resource of dividends	Dividendper share(Yen)		Record date	Effective date
	Six Months endedSeptember 30, 2013				Six Months endedSeptember 30, 2012
Ordinary general meeting of shareholders held on June 19, 2013	Common stock			22,879			Retained earnings		24	March 31, 2013	June 20, 2013
Net income	¥	83,285			¥	71,236
Note : The amount is rounded down to nearest million yen.
Other comprehensive income (loss), for the period, net of tax
Three months ended June 30, 2012 Payment amount of dividends
Foreign currency translation adjustments		23,268				(43,822	)
Resolution	Type of stock		Aggregateamount ofdividends(Millions of yen)				Resource of dividends	Dividendper share(Yen)		Record date	Effective date
Net unrealized holding gains (losses) on securities available for sale		3,793				(6,513	)
Ordinary general meeting of shareholders held on June 20, 2012	Common stock			20,008			Retained earnings		21	March 31, 2012	June 21, 2012
Pension liability adjustments		502				1,202
Net unrealized holding gains (losses) on derivative instruments		784				1,380
Total		28,347				(47,753	)
Comprehensive income (loss)		111,632				23,483
Less: Comprehensive income (loss) attributable to noncontrolling interests		4,318				2,192
Comprehensive income (loss) attributable to Komatsu Ltd.	¥	107,314			¥	21,291

~~Note~~15 ~~: The amount is rounded down to nearest million yen.~~

LOGO

~~15.~~Three ~~Business~~months ~~Segment~~ended ~~and~~September 30, ~~Geographic~~2013 ~~Information~~and 2012

~~Komatsu~~Consolidated ~~has~~Statements ~~two~~of ~~operating~~Income ~~segments: 1) Construction, Mining and Utility Equipment 2) Industrial Machinery and Others.~~

~~The~~Millions ~~accounting policies used by the segments are the same as those used in the preparation~~ of ~~the~~yen ~~quarterly~~except ~~consolidated~~per ~~financial statements.~~share amounts

Segment profit is determined by subtracting the cost of sales and selling, general and administrative expenses from net sales attributed to the operating segment. Segment profit excludes certain general corporate administration and finance expenses, such as costs of executive management, corporate development, corporate finance, human resources, internal audit, investor relations, legal and public relations. Segment profit also excludes certain charges which may otherwise relate to operating segments, including impairments of long lived assets and goodwill.


	Three Months ended September 30, 2013						Three Months ended September 30, 2012
				Ratio (%)						Ratio (%)
Net sales	¥	469,962			100.0		¥	460,901			100.0
Cost of sales		335,175			71.3			334,930			72.7
Selling, general and administrative expenses		78,240			16.6			69,955			15.2
Other operating income (expenses), net		(14	)		(0.0	)		(470	)		(0.1	)

Operating income		56,533			12.0			55,546			12.1

Other income (expenses), net
Interest and dividend income		884			0.2			952			0.2
Interest expense		(2,116	)		(0.5	)		(2,383	)		(0.5	)
Other, net		5,571			1.2			27			0.0

Total other income (expenses)		4,339			0.9			(1,404	)		(0.3	)

Income before income taxes and equity in earnings of affiliated companies		60,872			13.0			54,142			11.7

Income taxes		17,576			3.7			17,572			3.8
Income before equity in earnings of affiliated companies		43,296			9.2			36,570			7.9
Equity in earnings of affiliated companies		653			0.1			338			0.1
Net income		43,949			9.4			36,908			8.0
Less: Net income attributable to noncontrolling interests		2,430			0.5			2,920			0.6

Net income attributable to Komatsu Ltd.	¥	41,519			8.8		¥	33,988			7.4

Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	43.56					¥	35.69
Diluted	¥	43.51					¥	35.66

~~Operating~~16 ~~segments:~~

	Millions of yen
	Three months endedJune 30, 2013			Three months endedJune 30, 2012
Net sales:
Construction, Mining and Utility Equipment—
External customers	¥	415,905		¥	428,921
Intersegment		732			855
Total		416,637			429,776
Industrial Machinery and Others—
External customers		39,254			41,027
Intersegment		1,124			2,059
Total		40,378			43,086
Elimination		(1,856	)		(2,914	)
Consolidated	¥	455,159		¥	469,948
Segment profit:
Construction, Mining and Utility Equipment	¥	52,611		¥	54,202
Industrial Machinery and Others		823			2,376
Total segment profit		53,434			56,578
Corporate expenses and elimination		(888	)		(1,314	)
Total		52,546			55,264
Other operating income (expenses), net		(133	)		454
Operating income		52,413			55,718
Interest and dividend income		1,402			1,316
Interest expense		(2,247	)		(2,123	)
Other, net		21			(3,669	)
Consolidated income before income taxes and equity in earnings of affiliated companies	¥	51,589		¥	51,242

LOGO

33Consolidated Statements of Comprehensive Income

~~Business~~Millions ~~categories~~of ~~and~~yen ~~principal products and services included in each operating segment are as follows:~~

a. Construction, Mining and Utility Equipment:


	Three Months ended September 30, 2013			Three Months ended September 30, 2012
Net income	¥	43,949		¥	36,908
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments		(5,377	)		(5,022	)
Net unrealized holding gains (losses) on securities available for sale		2,122			(2,081	)
Pension liability adjustments		207			638
Net unrealized holding gains (losses) on derivative instruments		(103	)		19

Total		(3,151	)		(6,446	)

Comprehensive income (loss)		40,798			30,462
Less: Comprehensive income (loss) attributable to noncontrolling interests		2,131			2,760

Comprehensive income (loss) attributable to Komatsu Ltd.	¥	38,667		¥	27,702

~~Excavating~~17 equipment, loading equipment, grading and roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines and components, casting products and logistics

KOMATSU LTD.

(Registrant)

Date: August 9, 2013

/S/ Mikio Fujitsuka

Mikio Fujitsuka

Director and Senior Executive Officer

LOGO

~~Metal~~(3) ~~forging~~Consolidated ~~and~~Statements ~~stamping~~of ~~presses,~~Cash ~~sheet-metal~~Flows ~~machines, machine tools, defense systems, temperature-control equipment and others~~

~~Transfers~~Millions ~~between~~of ~~segments~~yen ~~are made at estimated arm’s-length prices.~~

Geographic information:


	Six Months ended September 30, 2013			Six Months ended September 30, 2012
Operating activities
Net income	¥	83,285		¥	71,236
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		43,231			42,544
Deferred income taxes		1,376			(1,518	)
Impairment loss and net loss (gain) from sale of investment securities		(1,498	)		81
Net loss (gain) on sale of property		(1,346	)		(249	)
Loss on disposal of fixed assets		1,858			800
Pension and retirement benefits, net		1,397			1,077
Changes in assets and liabilities:
Decrease (increase) in trade receivables		73,959			54,536
Decrease (increase) in inventories		(32,488	)		(23,186	)
Increase (decrease) in trade payables		6,829			(47,492	)
Increase (decrease) in income taxes payable		(8,153	)		(4,777	)
Other, net		(4,794	)		3,255

Net cash provided by (used in) operating activities		163,656			96,307

Investing activities
Capital expenditures		(85,134	)		(69,028	)
Proceeds from sale of property		9,311			3,801
Proceeds from sale of available for sale investment securities		4,203			423
Purchases of available for sale investment securities		(33	)		(3	)
Acquisition of subsidiaries and equity investees, net of cash acquired		(4,539	)		283
Collection of loan receivables		201			508
Disbursement of loan receivables		(16	)		—
Decrease (increase) in time deposits, net		(147	)		760

Net cash provided by (used in) investing activities		(76,154	)		(63,256	)

Financing activities
Proceeds from debt issued (Original maturities greater than three months)		83,745			176,194
Payment on debt (Original maturities greater than three months)		(111,077	)		(210,272	)
Short-term debt—net (Original maturities three months or less)		(34,894	)		32,176
Repayments of capital lease obligations		(1,849	)		(3,648	)
Sale (purchase) of treasury stock, net		(16	)		47
Dividends paid		(22,880	)		(20,009	)
Other, net		(5,011	)		(6,438	)

Net cash provided by (used in) financing activities		(91,982	)		(31,950	)

Effect of exchange rate change on cash and cash equivalents		2,535			(4,237	)

Net increase (decrease) in cash and cash equivalents		(1,945	)		(3,136	)

Cash and cash equivalents, beginning of year		93,620			83,079

Cash and cash equivalents, end of period	¥	91,675		¥	79,943

~~Net~~18 ~~sales determined by customer location for the three months ended June 30, 2013 and 2012 are as follows:~~

	Millions of yen
	Three months endedJune 30, 2013		Three months endedJune 30, 2012
Japan	¥	80,034	¥	80,726
The Americas		131,899		129,090
Europe and CIS		51,487		55,074
China		47,756		47,311
Asia (excluding Japan and China) and Oceania		105,424		130,096
Middle East and Africa		38,559		27,651
Consolidated net sales	¥	455,159	¥	469,948

LOGO

~~Net~~(4) ~~sales~~Note ~~determined~~to ~~by geographic origin for~~ the ~~three~~Going ~~months~~Concern ~~ended~~Assumption ~~June 30, 2013 and 2012 are as follows:~~

	Millions of yen
	Three months endedJune 30, 2013		Three months endedJune 30, 2012
Japan	¥	130,576	¥	148,455
U.S.A.		124,000		124,989
Europe and CIS		56,238		52,240
China		42,233		37,529
Others		102,112		106,735
Consolidated net sales	¥	455,159	¥	469,948

None

~~Other~~(5) ~~than in Japan, U.S.A. and China, no individual country had a material impact on net sales to~~Business ~~external~~Segment ~~customers.~~Information

~~There~~1) ~~were~~Information noby ~~sales~~Operating toSegments ~~a single major external customer for the three months ended June 30, 2013 and 2012.~~

34Six Months ended September 30, 2013 and 2012

~~16.~~(For ~~Subsequent~~Six ~~Event~~Months ended September 30, 2013) Millions of yen

There was no significant subsequent event to be disclosed.

Construction,
Mining and
Utility Equipment

Industrial
Machinery and
Others

Subtotal

Corporate &
elimination

Total

Net sales:

Customers

828,775

96,346

925,121

—

925,121

Intersegment

1,296

3,253

4,549

(4,549

)

—

Total

830,071

99,599

929,670

(4,549

)

925,121

Segment profit

105,793

4,808

110,601

(1,508

)

109,093

35(For Six Months ended September 30, 2012) Millions of yen


	Construction, Mining and Utility Equipment		Industrial Machinery and Others		Subtotal		Corporate & elimination			Total
Net sales:
Customers		837,668		93,181		930,849		—			930,849

Intersegment		1,482		4,018		5,500		(5,500	)		—

Total		839,150		97,199		936,349		(5,500	)		930,849

Segment profit		109,581		3,301		112,882		(1,602	)		111,280

Three Months ended September 30, 2013 and 2012


(For Three Months ended September 30, 2013)		Millions of yen

Construction,
Mining and
Utility Equipment

Industrial
Machinery and
Others

Subtotal

Corporate &
elimination

Total

Net sales:

Customers

412,870

57,092

469,962

—

469,962

Intersegment

564

2,129

2,693

(2,693

)

—

Total

413,434

59,221

472,655

(2,693

)

469,962

Segment profit

53,182

3,985

57,167

(620

)

56,547


(For Three Months ended September 30, 2012)		Millions of yen


	Construction, Mining and Utility Equipment		Industrial Machinery and Others		Subtotal		Corporate & elimination			Total
Net sales:
Customers		408,747		52,154		460,901		—			460,901

Intersegment		627		1,959		2,586		(2,586	)		—

Total		409,374		54,113		463,487		(2,586	)		460,901

Segment profit		55,379		925		56,304		(288	)		56,016

LOGO

Notes: 1) Business categories and principal products & services included in each operating segment are as follows:

Construction, Mining and Utility Equipment

Excavating equipment, loading equipment, grading & roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines & components, casting products, and logistics

Industrial Machinery and Others

Metal forging & stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment, and others

Transfers between segments are made at estimated arm’s-length prices.

2) Geographic Information

Net sales determined by customer location were as follows:

For Six Months ended September 30, 2013 and 2012

Millions of yen

Japan

Americas

Europe &
CIS

China

Asia* &
Oceania

Middle East
& Africa

Total

FY2013

193,608

272,858

96,179

87,722

198,278

76,476

925,121

FY2012

178,916

268,437

99,572

75,331

246,774

61,819

930,849

For Three Months ended September 30, 2013 and 2012

Millions of yen

Japan

Americas

Europe &
CIS

China

Asia* &
Oceania

Middle East
& Africa

Total

FY2013

113,574

140,959

44,692

39,966

92,854

37,917

469,962

FY2012

98,190

139,347

44,498

28,020

116,678

34,168

460,901

*	Excluding Japan and China

(6) Note in Case of Notable Changes in the Amount of Shareholders’ Equity

None

(7) Others

In the Consolidated Statements of Cash Flow, Komatsu disclosed its cash flow of short-term debt in financing activities on a net amount basis in the six months ended September 30, 2012. Komatsu discloses its cash flow on a net amount basis for the debts whose original maturities are three months or less in the six months ended September 30, 2013. The Consolidated Statements of Cash Flow for the six months ended September 30, 2012 has been re-presented to be consistent with September 30, 2013. This change does not have any impact on the total cash flow from financing activities.

(end)


For Immediate Release

Komatsu Ltd.

Corporate Communications Dept.

Tel: +81-(0)3-5561-2616

Date: October 28, 2013

URL: http://www.komatsu.com/

Announcement Concerning the Revision of Projected Business Results

Komatsu Ltd. (hereinafter “Company”) (President and CEO: Tetsuji Ohashi) has revised the projections for consolidated and non-consolidated business results for the fiscal year ending March 31, 2014, which the Company announced on April 25, 2013.

1. Projection for Consolidated Business Results for the Fiscal Year Ending March 31, 2014 (U.S. GAAP)

Millions of yen except per share amounts


	Earlier projection		Current projection		Changes						Results for FY ended March 31, 2013
	[A]		[B]		[B-A]			[(B-A)/A]			Results for FY ended March 31, 2013
Net sales		2,050,000		1,860,000		(190,000	)		(9.3	)%		1,884,991

Operating income		305,000		210,000		(95,000	)		(31.1	)%		211,602

Income before income taxes and equity in earnings of affiliated companies		297,000		209,000		(88,000	)		(29.6	)%		204,603

Net income attributable to Komatsu Ltd.		184,000		136,000		(48,000	)		(26.1	)%		126,321

Net income attributable to Komatsu Ltd. per share—basic (Yen)		193.12		142.69		—			—			132.64

2. Projection for Non-consolidated Business Results for the Fiscal Year Ending March 31, 2014

Millions of yen except per share amounts


	Earlier projection		Current projection		Changes						Results for FY ended March 31, 2013
	[A]		[B]		[B-A]			[(B-A)/A]			Results for FY ended March 31, 2013
Net sales		790,000		700,000		(90,000	)		(11.4	)%		738,871

Ordinary profit		175,000		145,000		(30,000	)		(17.1	)%		85,390

Net income		137,000		125,000		(12,000	)		(8.8	)%		66,016

Net income per share—basic (Yen)		143.71		131.07		—			—			69.28

3. Reasons for the Revision

[Projection for Consolidated Business Results]

As preconditions for its current projection, Komatsu is assuming the foreign exchange rates as follows: USD1=JPY96.5, EUR1=JPY125.6 and RMB1=JPY15.6. (Preconditions for its initial projection: USD1=JPY95, EUR1=JPY123 and RMB1=JPY15.3)

[Projection for Non-consolidated Business Results]

Similarly, the Company is also projecting that non-consolidated volume of sales of mining equipment will decline in the construction, mining and utility equipment business. In this light, the Company has revised its projection of April 25, 2013 for non-consolidated net sales and profits for the fiscal year, ending March 31, 2014(April 1, 2013 – March 31, 2014).

Cautionary Statement

The announcement 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 Komatsu principal products, owing to changes in the economic conditions in Komatsu principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving Komatsu objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of Komatsu 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.

(end)

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