Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

~~Table~~UNITED ofSTATES ~~Contents~~

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

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

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

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

~~Report~~Pursuant ofto ~~Foreign~~Rule ~~Private~~13a-16 ~~Issuer~~or 15d-16

~~Pursuant~~under tothe ~~Rule~~Securities ~~13a-16~~Exchange orAct ~~15d-16~~of 1934

~~under~~For the ~~Securities~~month ~~Exchange Act~~ of ~~1934~~November, 2013

~~For~~COMMISSION ~~the~~FILE ~~month~~NUMBER: of1-7239 ~~October, 2013~~

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

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

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

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

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

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

Indicate by check mark if the registrant is submitting the Form 206-~~F x Form~~K 40in paper as permitted by Regulation S-F T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(17): ¨

~~Indicate~~INFORMATION byINCLUDED ~~check~~IN ~~mark~~THIS ifREPORT ~~the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨~~

~~Table~~Quarterly Report for the Second Quarter of ~~Contents~~the 145th Fiscal Year filed on November 11, 2013

~~INFORMATION~~On ~~INCLUDED~~November 11, IN2013, ~~THIS~~the ~~REPORT~~registrant 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 six months ended September 30, 2013 and the three months ended September 30, 2013.

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

2.Attached is an English translation of athe ~~company~~registrant’s ~~announcement~~Quarterly ~~made~~Consolidated onFinancial ~~October~~Statements ~~28,~~for ~~2013 regarding~~ the ~~Revisions~~six tomonths ~~the~~ended ~~Projected~~September 30, ~~Business~~2013 ~~Results for~~ and the ~~Fiscal~~three ~~Year~~months ~~Ending~~ended ~~March 31~~September 30, ~~2014(Consolidated and Non-consolidated)~~2013.

~~SIGNATURES~~2

~~Pursuant~~SIGNATURES ~~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: November 12, 2013	By:	/S/ Mikio Fujitsuka
		Mikio Fujitsuka
		Director and Senior Executive Officer
		Chief Financial Officer

~~Table~~3 ~~of Contents~~

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

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

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

~~Date: October~~September 2830, 2013 and March 31, 2013

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


	September 30, 2013				March 31, 2013
	Millions of yen		Component ratio (%)		Millions of yen		Component ratio (%)
Assets
Current assets
Cash and cash equivalents (Note 11)	¥	91,675			¥	93,620
Time deposits (Note 11)		369				217
Trade notes and accounts receivable, net (Notes 3 and 11)		541,586				606,904
Inventories (Note 4)		679,938				633,647
Deferred income taxes and other current assets (Notes 10, 11 and 12)		162,547				157,668

Total current assets		1,476,115		58.0		1,492,056		59.3

Long-term trade receivables, net (Notes 3 and 11)		245,136		9.6		235,825		9.4
Investments
Investments in and advances to affiliated companies		19,483				19,404
Investment securities (Notes 5, 11 and 12)		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 of ¥716,081 million at September 30, 2013 and ¥706,297 million at March 31, 2013		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 (Notes 10, 11 and 12)		32,326		1.3		30,273		1.2

	¥	2,546,689		100.0	¥	2,517,857		100.0

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

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

1. Results for Six Months Ended September 30, 2013


	September 30, 2013					March 31, 2013
	Millions of yen			Component ratio (%)		Millions of yen			Component ratio (%)
Liabilities and Equity
Current liabilities
Short-term debt (Note 11)	¥	199,509				¥	205,156
Current maturities of long-term debt (Notes 11 and 12)		105,842					130,793
Trade notes, bills and accounts payable (Note 11)		234,508					226,275
Income taxes payable		25,567					33,227
Deferred income taxes and other current liabilities (Notes 10, 11 and 12)		230,991					232,125

Total current liabilities		796,417			31.3		827,576			32.8

Long-term liabilities
Long-term debt (Notes 11 and 12)		315,530					343,814
Liability for pension and retirement benefits		51,013					49,912
Deferred income taxes and other liabilities (Notes 10, 11 and 12)		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

Commitments and contingent liabilities (Note 9)

Equity
Komatsu Ltd. shareholders’ equity
Common stock:
Authorized 3,955,000,000 shares
Issued 983,130,260 shares		67,870					67,870
Outstanding 953,189,000 shares at September 30, 2013 and 952,778,859 shares at March 31, 2013
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) (Notes 5, 6, 10 and 12)		(14,915	)				(43,440	)
Treasury stock at cost, 29,941,260 shares at September 30, 2013 and 30,351,401 shares at March 31, 2013		(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

	¥	2,546,689			100.0	¥	2,517,857			100.0

~~(Amounts~~The accompanying Notes are ~~rounded~~an tointegral ~~the~~part ~~nearest~~of ~~million~~these ~~yen)~~Quarterly Consolidated Financial Statements.

~~(1)~~5 ~~Consolidated Financial Highlights~~

				Millions of yen except per share amounts
	Six Months endedSeptember 30, 2013		Six Months endedSeptember 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

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

~~Note:~~(Unaudited) ~~Comprehensive income for six months ended September 30, 2013 and 2012~~

~~2013: 111,632~~Komatsu ~~millions of yen, up 375~~Ltd.4% ~~from~~and ~~2012~~Consolidated Subsidiaries

~~2012: 23,483~~Six ~~millions~~months ofended ~~yen~~September 30, ~~down~~2013 ~~33.5%~~and ~~from~~2012 ~~2011~~

~~(2)~~ Consolidated ~~Financial~~Statements ~~Position~~of Income

		Millions of yen except per share amounts
	Six months ended						Six months ended
	As of September 30, 2013			As of March 31, 2013
	September 30, 2013						September 30, 2012
Total assets		2,546,689			2,517,857
				Component						Component
Total equity		1,337,738			1,252,695
	Millions of yen			ratio (%)			Millions of yen			ratio (%)
Komatsu Ltd. shareholders’ equity		1,278,449			1,193,194
Net sales	¥	925,121			100.0		¥	930,849			100.0
Komatsu Ltd. shareholders’ equity ratio		50.2	%		47.4	%
Cost of sales (Note 10)		660,541			71.4			678,085			72.8
Komatsu Ltd. shareholders’ equity per share (Yen)	¥	1,341.23		¥	1,252.33
Selling, general and administrative expenses (Note 7)		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 (Notes 5, 10 and 12)		5,592			0.6			(3,642	)		(0.4	)
Total		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
Current		28,744						36,234
Deferred		1,376						(1,518	)
Total		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

2. Dividends


	Yen
	Six months ended		Six months ended
	September 30, 2013		September 30, 2012
Net income attributable to Komatsu Ltd. per share (Note 8)
Basic	¥	82.69	¥	69.42
Diluted		82.60		69.37
Cash dividends per share (Note 14)		24.00		21.00

(For the fiscal years ended March 31, 2013 and ending March 31, 2014)						Yen
	The entire FY ending March 31, 2014				The entire FY endedMarch 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

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

~~Note:~~6 ~~Changes in the projected cash dividend as of October 28, 2013: None~~

1Consolidated Statements of Comprehensive Income


	Six months ended		Six months ended
	September 30, 2013		September 30, 2012
	Millions of yen		Millions of yen
Net income	¥	83,285	¥	71,236
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments (Note 6)		23,268		(43,822	)
Net unrealized holding gains (losses) on securities available for sale (Notes 5 and 6)		3,793		(6,513	)
Pension liability adjustments (Note 6)		502		1,202
Net unrealized holding gains (losses) on derivative instruments (Notes 6 and 10)		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

3.The ~~Projection~~accompanying ~~for~~Notes ~~the~~are ~~Fiscal~~an ~~Year~~integral ~~Ending~~part ~~March 31,~~of ~~2014~~these Quarterly Consolidated Financial Statements.

~~(From~~7 ~~April 1, 2013 to March 31, 2014)~~

		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 September 30, 2013 and 2012

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

2) Percentages shown above represent the rates of change compared with the corresponding period a year ago.


	Three months ended						Three months ended
	September 30, 2013						September 30, 2012
				Component						Component
	Millions of yen			ratio (%)			Millions of yen			ratio (%)
Net sales	¥	469,962			100.0		¥	460,901			100.0
Cost of sales (Note 10)		335,175			71.3			334,930			72.7
Selling, general and administrative expenses (Note 7)		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 (Notes 5, 10 and 12)		5,571			1.2			27			0.0

Total		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
Current		22,167						21,630
Deferred		(4,591	)					(4,058	)

Total		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

4. Others


	Yen
	Three months ended		Three months ended
	September 30, 2013		September 30, 2012
Net income attributable to Komatsu Ltd. per share (Note 8)
Basic	¥	43.56	¥	35.69
Diluted		43.51		35.66
Cash dividends per share		—		—

~~(1)~~The ~~Changes~~accompanying inNotes ~~important~~are ~~subsidiaries~~an ~~during~~integral ~~the~~part ~~six~~of ~~months~~these ~~period~~Quarterly ~~under~~Consolidated ~~review:~~Financial ~~None~~Statements.

~~(2)~~8 ~~Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None~~

~~(3)~~Consolidated ~~Changes~~Statements inof ~~Significant~~Comprehensive ~~Accounting~~Income ~~Rules, Procedures and Presentation and Changes in Significant Accounting Policies and Estimates~~

1) Changes resulting from revisions in accounting standards, etc: Applicable


	Three months ended			Three months ended
	September 30, 2013			September 30, 2012
	Millions of yen			Millions of yen
Net income	¥	43,949		¥	36,908
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments (Note 6)		(5,377	)		(5,022	)
Net unrealized holding gains (losses) on securities available for sale (Notes 5 and 6)		2,122			(2,081	)
Pension liability adjustments (Note 6)		207			638
Net unrealized holding gains (losses) on derivative instruments (Notes 6 and 10)		(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

2)The ~~Changes~~accompanying inNotes ~~other~~are ~~matters~~an ~~except~~integral ~~for~~part 1)of ~~above:~~these ~~Applicable~~Quarterly Consolidated Financial Statements.

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

~~(4)~~Consolidated ~~Number~~Statements of ~~common~~Equity ~~shares~~(Unaudited) ~~outstanding~~

1)Komatsu ~~The~~Ltd. ~~numbers~~and ofConsolidated ~~common~~Subsidiaries ~~shares issued (including treasury stock) were as follows:~~

AsSix of months ended September 30, 2013: ~~983,130,260~~Millions ~~shares~~of yen

As of March 31, 2013: 983,130,260 shares


						Retained earnings					Accumulated						Total
	Common stock		Capital surplus			Appropriated for legal reserve		Unappropria ted			other comprehensive income (loss)			Treasury stock			Komatsu Ltd. shareholders’ equity			Noncontrolling interests			Total equity
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	)		(4,102	)		(26,982	)
Transfer to retained earnings appropriated for legal reserve							1,404		(1,404	)								—						—
Other changes				(112	)							21						(91	)		(428	)		(519	)
Net income									78,810									78,810			4,475			83,285
Other comprehensive income (loss), for the period, net of tax (Note 6)												28,504						28,504			(157	)		28,347
Issuance and exercise of stock acquisition rights (Note 7)				4														4						4
Purchase of treasury stock															(25	)		(25	)					(25	)
Sales of treasury stock				335											598			933						933

Balance at September 30, 2013	¥	67,870	¥	139,045		¥	39,634	¥	1,089,030		¥	(14,915	)	¥	(42,215	)	¥	1,278,449		¥	59,289		¥	1,337,738

2)Six ~~The~~months ~~numbers~~ended ofSeptember ~~shares~~30, of2012 ~~treasury~~Millions ~~were~~of ~~as follows:~~yen

As of September 30, 2013: 29,941,260 shares


					Retained earnings					Accumulated						Total
	Common stock		Capital surplus		Appropriated for legal reserve		Unappropria ted			other comprehensive income (loss)			Treasury stock			Komatsu Ltd. shareholders’ equity			Noncontrolling interests			Total equity
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	)		(5,652	)		(25,661	)
Transfer to retained earnings appropriated for legal reserve						300		(300	)								—						—
Other changes																	—			34			34
Net income								66,112									66,112			5,124			71,236
Other comprehensive income (loss), for the period, net of tax (Note 6)											(44,821	)					(44,821	)		(2,932	)		(47,753	)
Issuance and exercise of stock acquisition rights (Note 7)				199													199						199
Purchase of treasury stock														(15	)		(15	)					(15	)
Sales of treasury stock								(54	)					107			53						53

Balance at September 30, 2012	¥	67,870	¥	138,583	¥	38,254	¥	997,144		¥	(187,210	)	¥	(43,426	)	¥	1,011,215		¥	44,335		¥	1,055,550

AsThe accompanying Notes are an integral part of ~~March 31,~~these ~~2013:~~Quarterly ~~30,351,401~~Consolidated ~~shares~~Financial Statements.

3)10 ~~The weighted average numbers of common shares outstanding were as follows:~~

~~Six~~Consolidated ~~months~~Statements ~~period ended~~of ~~September 30,~~Cash ~~2013:~~Flows ~~953,073,969~~(Unaudited) ~~shares~~

~~Six~~Komatsu ~~months~~Ltd. ~~period~~and ~~ended~~Consolidated ~~September 30,~~Subsidiaries ~~2012: 952,319,152 shares~~

2Six months ended September 30, 2013 and 2012


	Millions of yen
	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) (Note 2)		83,745			176,194
Payment on debt (Original maturities greater than three months) (Note 2)		(111,077	)		(210,272	)
Short-term debt—net (Original maturities three months or less) (Note 2)		(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

~~[Reference]~~The accompanying Notes are an integral part of these Quarterly Consolidated Financial Statements.

~~Results~~11 ~~for Three Months Ended September 30, 2013~~

				Millions of yen except per share amounts
	Three Months endedSeptember 30, 2013		Three Months endedSeptember 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

Komatsu Ltd. and Consolidated Subsidiaries

~~[Reference]~~Six months ended September 30, 2013 and 2012

~~Projection~~Notes ofto ~~the~~Quarterly ~~Company~~Consolidated ~~for~~Financial ~~the~~Statements ~~Fiscal~~(Unaudited) ~~Year Ending March 31, 2014~~

~~(From April~~ 1,. ~~2013~~Basis toof ~~March 31,~~Quarterly ~~2014)~~Financial Statement Presentation and Summary of Significant Accounting Policies

		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

Basis of Quarterly Financial Statement Presentation

~~Notes:~~Komatsu ~~Percentages~~Ltd. ~~shown~~(“Company”) ~~above~~and ~~represent~~its consolidated subsidiaries (together “Komatsu”) prepare and present the ~~rates~~accompanying ofquarterly consolidated ~~change~~financial ~~compared~~statements in accordance with ~~the~~generally ~~corresponding~~accepted ~~period~~accounting aprinciples ~~year~~in ~~ago~~the United States of America.

3Summary of Significant Accounting Policies

~~Table~~(1) Adoption of ~~Contents~~new accounting standards

~~Appendix~~Komatsu adopted the Accounting Standards Update (“ASU”) 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”, starting in the first quarter period of FY2013, ending March 31, 2014. This update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component, and to present, either 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).

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

(2) Change in depreciation method

4The 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.

~~Table~~Komatsu promotes continuous innovation of ~~Contents~~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.

~~Management~~As ~~Performance~~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 ~~Financial~~equipment ~~Conditions~~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 (1ASC) ~~Outline~~250 of“Accounting ~~Operations~~Changes and ~~Business~~Error ~~Results~~Corrections”.

~~Komatsu~~As ~~Ltd.~~a ~~(“Company”)~~result ~~and~~of ~~its~~the ~~consolidated~~change ~~subsidiaries~~in ~~(together~~depreciation ~~“Komatsu”)~~method, ~~embarked~~depreciation onexpense for the ~~“Together~~six Wemonths ~~Innovate~~ended ~~GEMBA Worldwide”~~September 30, ~~three-year~~2013 ~~mid-range~~decreased ~~management~~by ~~plan~~¥5,394 ~~in April 2013~~million. ~~Under~~Net Income ~~this~~attributable ~~plan,~~to Komatsu ~~has~~Ltd. ~~started~~for tothe ~~make~~six ~~focused~~months ~~efforts~~ended onSeptember 30, 1)2013 ~~growth~~increased ~~strategies~~by ~~based~~¥3,339 onmillion. ~~innovation,~~Both 2)Basic ~~growth~~and ~~strategies~~Diluted ofnet ~~existing~~income ~~businesses,~~attributable ~~and~~to 3)Komatsu ~~structural~~Ltd. ~~reforms designed~~per tocommon ~~reinforce~~share for the ~~business~~six ~~foundation~~months ended September 30, 2013 increased by ¥3.50.

~~For~~Excluding the ~~first six-month period (April 1 – September 30~~above, ~~2013)~~there ofis ~~the~~no ~~fiscal~~material ~~year ending~~change ~~March 31, 2014, which represents the first year of the mid-range management plan, overall demand~~ for ~~construction~~Summary 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~~Significant ~~construction,~~Accounting ~~mining~~Policies ~~and~~stated ~~utility~~in ~~equipment~~annual ~~business~~report 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,~~ended ~~to JPY 925.1 billion (USD 9,440~~March ~~million~~31, ~~at USD1=JPY98)~~2013. 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.

[Consolidated Financial Highlights]								Millions of yen
	Six Months endedSeptember 30,20131USD=JPY98.01EUR=JPY128.21RMB=JPY15.9			Six Months endedSeptember 30,20121USD=JPY79.61EUR=JPY101.51RMB=JPY12.6			ChangesIncrease(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	%

~~Note: Sales and profit figures in this report show the respective sums of six months from April 1 to September 30, 2013~~2. ~~Unless~~Supplemental ~~otherwise~~Cash ~~noted,~~Flow ~~all~~Information ~~sales by segment in this report indicate the amounts before elimination of inter-segment transactions.~~

5Additional cash flow information and noncash investing and financing activities for the six months ended September 30, 2013 and 2012 are as follows:


	Millions of yen
	Six months ended September 30, 2013		Six months ended September 30, 2012
Additional cash flow information:
Interest paid	¥	4,817	¥	4,602
Income taxes paid		41,556		37,037
Noncash investing and financing activities:
Capital lease obligations incurred	¥	407	¥	2,625

~~Business~~In ~~results~~the byconsolidated ~~operation~~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 ~~described~~three ~~below~~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 have been re-presented to be consistent with the September 30, 2013 presentation. This change does not have any impact on the reported total cash flow from financing activities.

~~Construction,~~13 ~~Mining and Utility Equipment~~

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% toAllowance ~~JPY 105.7 billion (USD 1,080 million)~~ for ~~the~~Doubtful ~~six-month~~Receivables ~~period under review.~~

~~Under~~At ~~such an environment~~September 30, ~~Komatsu~~ ~~began~~2013 ~~the~~and ~~market~~at ~~introduction~~March 31, ~~of D61EXi/PXi medium-sized Machine Control dozers in North America~~2013, ~~Europe~~allowances ~~and~~for ~~Japan.~~doubtful ~~This~~receivables ~~model~~deducted ~~features~~from ~~the~~Trade ~~world’s~~notes ~~first fully automatic blade control as a next-generation product designed to promote automation of construction~~ and toaccounts ~~lead Komatsu’s strategies based on innovation. Komatsu also worked to strengthen the aftermarket business~~receivable, ~~which~~net ~~includes the provision of services~~ and ~~sales of strategic parts, by using KOMTRAX (Komatsu~~Long-term ~~Machine~~trade ~~Tracking System)~~receivables, ~~which~~net isare ~~installed in over 300~~¥17,~~000~~849 ~~units~~million ~~worldwide.~~and ~~With respect to new emission standards-compliant models~~¥17,994 ~~Komatsu continued their aggressive market introduction together with KOMATSU CARE~~million, ~~a new service program designed to reduce the total lifecycle costs of these models and prolong machine life~~respectively.

~~During~~14 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.

[Sales to Outside Customers of Construction, Mining and Utility Equipment by Region]									Millions of yen
	Six Months endedSeptember 30, 2013		Six Months endedSeptember 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	)%

4. Inventories

*At ~~Excluding~~September 30, ~~Japan~~2013 and ~~China~~at March 31, 2013, inventories comprised the following:


	Millions of yen
	September 30, 2013		March 31, 2013
Finished products, including finished parts held for sale	¥	477,149	¥	437,729
Work in process		147,977		141,166
Materials and supplies		54,812		54,752

Total	¥	679,938	¥	633,647

~~Table~~15 ~~of Contents~~

~~Komatsu’s~~5. ~~operations~~Investment bySecurities ~~region are described below.~~

~~Japan~~Investment securities at September 30, 2013 and at March 31, 2013, primarily consisted of securities available for sale.

~~During~~Unrealized ~~the~~holding ~~six-month~~gains period under review, demand for construction equipment increased, supported by demand in the regions destroyed by the Great East Japan Earthquake through full-scale civil engineering works which began with the construction and ~~relocation~~losses ofare ~~residences~~included ~~for~~as ~~community development in addition to an increase in public investment resulting from fiscal measures. Demand advanced especially in rental companies. As~~ a ~~result,~~component ~~sales~~of ~~increased~~accumulated ~~from~~other ~~the~~comprehensive ~~corresponding~~income ~~period~~(loss) auntil ~~year ago~~realized.

InThe ~~September~~cost, ~~Komatsu~~gross ~~began~~unrealized ~~the~~holding ~~market~~gains ~~introduction~~and ~~of the D61PXi medium-sized Machine Control dozer~~losses, ~~starting with Komatsu Rental Ltd.~~ and ~~Komatsu-affiliated~~ ~~rental~~fair ~~companies,~~value ~~which~~for ~~are~~such ~~very~~investment ~~familiar~~securities ~~with~~by ~~GNSS~~major ~~(Global~~security ~~Navigation~~types ~~Satellite~~at ~~System) technologies~~September 30, ~~such~~2013 ~~as GPS (Global Positioning System)~~ and ~~GLONASS, and management know-how of ICT devices. With respect to new products that~~at ~~are compliant with new emissions standards~~March 31, ~~which have become effective steadily~~2013, ~~Komatsu~~are ~~launched~~as ~~over~~follows: ~~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.~~

Americas


	Millions of yen
			Gross unrealized holding
	Cost		Gains		Losses		Fair value
At September 30, 2013
Investment securities:
Marketable equity securities available for sale	¥	15,664	¥	38,888	¥	—	¥	54,552

Other investment securities at cost		8,038

	¥	23,702

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

~~In North~~Other ~~America,~~investment ~~while~~securities ~~demand~~primarily ~~increased~~include ~~in the housing and energy development sectors, that in the rental sector declined from the corresponding period a year ago. As a result, overall demand lacked a growth momentum in the first six~~non-~~month~~marketable ~~period under~~equity ~~review~~securities. Sales increased from the corresponding period a year ago, supported by the Japanese yen’s depreciation. In June, Komatsu launched D61EXi/PXi medium-sized Machine Control dozers first in North America and has steadily increased their sales.

InProceeds ~~Latin~~from ~~America, while demand for construction equipment advanced in Brazil,~~ the ~~largest~~sales ~~market~~ of ~~the~~investment ~~region,~~securities ~~demand~~available for ~~mining~~ ~~equipment~~sale ~~for~~were ~~use~~¥4,203 inmillion ~~copper mines in Chile~~ and ~~Peru~~¥423 ~~downturned~~million ~~due~~for ~~to a fall of~~ the ~~international~~six ~~price~~months ofended ~~copper~~September 30, 2013 ~~where~~and ~~demand had remained steady in the previous fiscal year. As a result~~2012, ~~sales declined from the corresponding period a year ago~~respectively.

~~Europe~~Impairment loss and net gain (loss) from sale of investment securities available for sale during the six months ended September &30, ~~CIS~~2013 and 2012, amounted to gains of ¥1,498 million and losses of ¥81 million, respectively. Impairment loss and net gain (loss) from sale of investment securities available for sale during the three months ended September 30, 2013 and 2012, amounted to gains of ¥1,491 million and losses of ¥11 million, respectively. Such gains and losses were included in other income (expenses), net in the accompanying consolidated statements of income.

InThe ~~Europe,~~cost ~~demand remained slack in Germany and France, among major markets, as economies slowed down against the backdrop~~ of the ~~Eurozone~~investment ~~crisis.~~securities ~~However,~~sold ~~sales~~was ~~increased~~computed ~~from~~based ~~the~~on ~~corresponding period a year ago, reflecting~~ the ~~Japanese~~average-cost ~~yen’s depreciation~~method.

InGross ~~CIS,~~unrealized ~~sales~~holding ~~declined~~losses ~~from~~and the ~~corresponding~~fair ~~period~~value aof ~~year~~available-for-sale ~~ago~~securities, asaggregated ~~impacted~~ by ~~demand~~length ~~downturned~~of ~~for~~time ~~mining~~that ~~equipment~~individual insecurities ~~gold~~have ~~mines.~~been ~~Based~~in ona ~~the~~continuous ~~mid-~~unrealized toloss ~~long-range~~position ~~perspective~~at ~~and~~March 31, ~~following the agreements with Pacific National University last year~~2013, ~~Komatsu~~are ~~donated~~as ~~hands-on~~follows. ~~training~~Not ~~materials~~applicable ~~for a special course and opened the course taught by Komatsu engineers~~ at ~~Far Eastern Federal University. In collaboration with the University~~September 30, ~~the course is designed to develop human resources for construction, mining and road construction equipment~~2013.

China

Millions of yen

Less than 12 months

12 months or longer

Total

Gross

unrealized

holding

Fair value

losses

Fair value

losses

Fair value

losses

At March 31, 2013

Investment securities:

Marketable equity securities available for sale

190

—

190

~~Demand,~~Komatsu ~~which~~judged ~~had~~the ~~been~~decline ~~sluggish since FY2011, upturned~~ in ~~April~~fair ~~this~~value ~~year. Sales~~ of ~~Komatsu’s~~investment ~~flagship~~securities ~~20-ton~~at ~~class hydraulic excavators~~March 31,2013, ~~which~~to ~~were~~be ~~launched in the previous fiscal year~~temporary, ~~advanced~~by ~~steadily,~~considering such factors as ~~did~~financial ~~smaller~~and ~~models.~~operating ~~Sales~~conditions ~~for~~of ~~30-ton class hydraulic excavators also recovered in June this year. As a result~~issuer, ~~sales improved from~~ the ~~corresponding~~industry ~~period~~in awhich ~~year ago. By maximizing~~ the ~~use~~issuer ofoperates ~~KOMTRAX, Komatsu worked to assess market conditions as quickly as possible~~ and ~~manage~~other ~~its~~relevant ~~inventories at an appropriate level~~factors.

716

~~Table~~6. ofOther ~~Contents~~Comprehensive Income (Loss)

~~Asia~~Changes in accumulated other comprehensive income (loss) for the six months ended September &30, ~~Oceania~~2013 and the three months ended September 30, 2013 are as follows:

In 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. As a result, sales in Asia dropped from the corresponding period a year ago.


	Millions of yen
	Six months ended September 30, 2013
				Net unrealized						Net unrealized
	Foreign			holding						holding
	currency			gains (losses)			Pension			gains (losses)
	translation			on securities			liability			on derivative
	adjustments			available for sale			adjustments			instruments			Total
Balance, beginning of year	¥	(38,833	)	¥	21,519		¥	(24,835	)	¥	(1,291	)	¥	(43,440	)
Other comprehensive income (loss) before reclassifications		25,558			4,701			(232	)		(3,033	)		26,994
Amounts reclassified from accumulated other comprehensive income (loss)		(2,290	)		(908	)		734			3,817			1,353

Net current-period other comprehensive income (loss)		23,268			3,793			502			784			28,347
Less: other comprehensive income (loss) attributable to noncotrolling interests		(185	)		—			(3	)		31			(157	)

Other comprehensive income (loss) attributable to Komatsu Ltd.		23,453			3,793			505			753			28,504
Equity transactions with noncontrolling interests		21			—			—			—			21

Balance, end of period	¥	(15,359	)	¥	25,312		¥	(24,330	)	¥	(538	)	¥	(14,915	)

InAll ~~Oceania,~~amounts asare ~~both~~net ~~demand~~of ~~for mining equipment in iron ore mines and that for construction equipment remained sluggish, sales declined from the corresponding period a year ago~~tax. With respect to the large-scale project to deliver driverless dump trucks in Rio Tinto’s iron ore mines in Australia, Komatsu and Rio Tinto continued to make good progress as one solid team to succeed.

Middle East & Africa


	Millions of yen
	Three months ended September 30, 2013
				Net unrealized						Net unrealized
	Foreign			holding						holding
	currency			gains (losses)			Pension			gains (losses)
	translation			on securities			liability			on derivative
	adjustments			available for sale			adjustments			instruments			Total
Balance, beginning of period	¥	(10,346	)	¥	23,190		¥	(24,539	)	¥	(413	)	¥	(12,108	)
Other comprehensive income (loss) before reclassifications		(3,087	)		3,030			(114	)		(417	)		(588	)
Amounts reclassified from accumulated other comprehensive income (loss)		(2,290	)		(908	)		321			314			(2,563	)

Net current-period other comprehensive income (loss)		(5,377	)		2,122			207			(103	)		(3,151	)
Less: other comprehensive income (loss) attributable to noncotrolling interests		(319	)		—			(2	)		22			(299	)

Other comprehensive income (loss) attributable to Komatsu Ltd.		(5,058	)		2,122			209			(125	)		(2,852	)
Equity transactions with noncontrolling interests		45			—			—			—			45

Balance, end of period	¥	(15,359	)	¥	25,312		¥	(24,330	)	¥	(538	)	¥	(14,915	)

InAll ~~Turkey,~~amounts aare ~~major~~net ~~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 governmenttax. ~~Sales increased in the Middle East from the corresponding period a year ago, partly reflecting the market conditions in Turkey.~~

In17 Africa, demand advanced in coal mines in South Africa and in copper mines in Zambia. As a result, sales 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 part of brand management activities.

~~Industrial~~Reclassifications ~~Machinery~~out of accumulated other comprehensive income (loss) for the six months ended September 30, 2013 and ~~Others~~the three months ended September 30, 2013 are as follows:

While demand for wire saws continued to stay sluggish, the sales volume of machine tools, as well as sheet-metal and press machines, advanced centering on the automobile manufacturing industry. As a result, sales of the industrial machinery and others 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
	Six months ended			Affected line items in
	September 30, 2013			consolidated statements of income
Foreign currency translation adjustments
Liquidation	¥	2,290		Other income (expenses), net: Other, net

		2,290		Total before tax
		—		Income taxes

		2,290		Net of tax

Net unrealized holding gains (losses) on securities available for sale
Gain from sale		1,498		Other income (expenses), net: Other, net

		1,498		Total before tax
		(590	)	Income taxes

		908		Net of tax
Pension liability adjustments
Amortization of actuarial loss and prior service cost		(1,164	)	*1

		(1,164	)	Total before tax
		430		Income taxes

		(734	)	Net of tax

Net unrealized holding gains (losses) on derivative instruments
Forwards contracts		(6,166	)	Other income (expenses), net: Other, net

		(6,166	)	Total before tax
		2,349		Income taxes

		(3,817	)	Net of tax

Total reclassifications for the period	¥	(1,353	)	Net of tax

~~Komatsu~~*1 ~~aggressively~~This ~~worked~~amount tois ~~expand~~included ~~sales~~in ofthe ~~strategic products,~~computation ~~such~~of asnet ~~NTG-4SP~~periodic ~~grinders,~~pension ~~H1F-2 small AC Servo presses, and new KFL Series fiber laser cutting machines, all designed to enhance customers’ productivity, safety and environmental performance~~cost.

~~(2)~~18 ~~Financial Conditions~~

As 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
	Three months ended			Affected line items in
	September 30, 2013			consolidated statements of income
Foreign currency translation adjustments
Liquidation	¥	2,290		Other income (expenses), net: Other, net

		2,290		Total before tax
		—		Income taxes

		2,290		Net of tax

Net unrealized holding gains (losses) on securities available for sale
Gain from sale		1,498		Other income (expenses), net: Other, net

		1,498		Total before tax
		(590	)	Income taxes

		908		Net of tax
Pension liability adjustments
Amortization of actuarial loss and prior service cost		(552	)	*1

		(552	)	Total before tax
		231		Income taxes

		(321	)	Net of tax

Net unrealized holding gains (losses) on derivative instruments
Forwards contracts		(508	)	Other income (expenses), net: Other, net

		(508	)	Total before tax
		194		Income taxes

		(314	)	Net of tax

Total reclassifications for the period	¥	2,563		Net of tax

*1 ~~Net~~This ~~debt-to-equity~~amount ~~ratio~~is =included ~~(Interest-bearing~~in ~~debt~~the –computation ~~Cash~~of ~~and~~net ~~cash~~periodic ~~equivalents~~pension ~~– Time deposits) / Komatsu Ltd~~cost. ~~shareholders’ equity~~

819

~~Table~~Tax effects allocated to each component of ~~Contents~~other comprehensive income (loss) for the six months ended September 30, 2013 and the three months ended September 30, 2013 are as follows:

For the first six-month period under review, net cash provided by operating activities totaled JPY163.6 billion (USD 1,670 million), an increase of JPY67.3 billion from the corresponding period a year ago, mainly due to the collection of notes and accounts receivable, coupled with increased net income. Net cash used in investing activities amounted to JPY76.1 billion (USD 777 million), an increase of JPY12.8 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 corresponding period a year ago. After adding the effects of foreign exchange fluctuations, cash and cash equivalents, as of September 30, 2013, totaled JPY91.6 billion (USD 935 million), a decrease of JPY1.9 billion from the previous fiscal year-end.


	Millions of yen
	Six months ended September 30, 2013
	Before tax amount			Tax (expense) or benefit			Net of tax amount
Foreign currency translation adjustments
Foreign currency translation adjustments arising during period	¥	25,605		¥	(47	)	¥	25,558
Less: reclassification adjustment for gains included in net income		(2,290	)		—			(2,290	)

Net foreign currency translation adjustments		23,315			(47	)		23,268
Net unrealized holding gains (losses) on securities available for sale
Unrealized holding gains arising during period		7,382			(2,681	)		4,701
Less: reclassification adjustment for gains included in net income		(1,498	)		590			(908	)

Net unrealized gains		5,884			(2,091	)		3,793
Pension liability adjustments
Pension liability adjustments arising during period		(332	)		100			(232	)
Less: reclassification adjustment for losses included in net income		1,164			(430	)		734

Net pension liability adjustments		832			(330	)		502
Net unrealized holding gains (losses) on derivative instruments
Changes in fair value of derivatives		(4,914	)		1,881			(3,033	)
Net losses reclassified into earnings		6,166			(2,349	)		3,817

Net unrealized gains		1,252			(468	)		784

Other comprehensive income (loss)	¥	31,283		¥	(2,936	)	¥	28,347

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


	Millions of yen
	Three months ended September 30, 2013
	Before tax amount			Tax (expense) or benefit			Net of tax amount
Foreign currency translation adjustments
Foreign currency translation adjustments arising during period	¥	(3,098	)	¥	11		¥	(3,087	)
Less: reclassification adjustment for gains included in net income		(2,290	)		—			(2,290	)

Net foreign currency translation adjustments		(5,388	)		11			(5,377	)
Net unrealized holding gains (losses) on securities available for sale
Unrealized holding gains arising during period		4,789			(1,759	)		3,030
Less: reclassification adjustment for gains included in net income		(1,498	)		590			(908	)

Net unrealized gains		3,291			(1,169	)		2,122
Pension liability adjustments
Pension liability adjustments arising during period		(64	)		(50	)		(114	)
Less: reclassification adjustment for losses included in net income		552			(231	)		321

Net pension liability adjustments		488			(281	)		207
Net unrealized holding gains (losses) on derivative instruments
Changes in fair value of derivatives		(685	)		268			(417	)
Net losses reclassified into earnings		508			(194	)		314

Net unrealized losses		(177	)		74			(103	)

Other comprehensive income (loss)	¥	(1,786	)	¥	(1,365	)	¥	(3,151	)

~~(From~~20 ~~April 1, 2013 to March 31, 2014)~~

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 recovery7. 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. Share-Based onCompensation ~~these conditions, Komatsu has revised its projections of consolidated sales and profits for the fiscal year, ending March 31, 2014.~~

AsThe ~~preconditions~~Company ~~for~~has ~~its~~two ~~current~~types ~~projection,~~of ~~Komatsu~~stock isoption ~~assuming~~plans ~~the foreign exchange rates~~ as ~~follows:~~share-based ~~USD1=JPY96.5,~~compensation ~~EUR1=JPY125.6~~for directors and ~~RMB1=JPY15.6.~~certain ~~(Preconditions~~employees ~~for~~and ~~its~~certain ~~initial~~directors ~~projection:~~of ~~USD1=JPY95, EUR1=JPY123 and RMB1=JPY15~~subsidiaries.3)

~~Projection~~The ~~for~~stock ~~Consolidated~~option ~~Business~~plans ~~Results~~resolved ~~for~~by the ~~Fiscal~~Board ~~Year~~of ~~Ending~~Directors’ ~~March 31,~~meetings ~~2014~~held in and before June 2010

						Millions of yen except per share amounts
	Earlierprojection		Currentprojection		Changes						Results for FYended March 31,2013
	[A]		[B]		[B-A]			[(B-A)/A]
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

The right to purchase the Company’s shares is granted at a predetermined price to directors and certain employees and certain directors of subsidiaries. The purchase price is the amount calculated by taking the average of the closing prices applicable to ordinary transactions of shares of the Company on the Tokyo Stock Exchange on all days for a month immediately preceding the month in which the date of grant of the right falls and multiplying by 1.05, provided that the exercise price shall not be less than the closing price of the shares of the Company on the Tokyo Stock Exchange on the date of the grant.

9The stock option plans resolved by the Board of Directors’ meetings held in and after July 2010

~~Table~~The right to purchase the Company’s shares is granted at an exercise price of ~~Contents~~¥1 per share to directors and certain employees and certain directors of subsidiaries.

~~[Reference]~~Based on the resolutions of the shareholders’ meeting on June 23, 2010 and the Board of Directors on July 12, 2012, the Company issued 843 rights of its share acquisition rights to directors. Based on the resolutions of the shareholders’ meeting on June 20, 2012 and the Board of Directors on July 12, 2012, the Company also issued 2,555 rights of its share acquisition rights to certain employees and certain directors of subsidiaries during the year ending March 31, 2013. The options vest 100% on each of the grant dates and are exercisable from August 1, 2015.

~~Projection~~In addition, based on the resolutions of the shareholders’ meeting on June 23, 2010 and the Board of Directors on July 17, 2013, the Company issued ~~for~~561 rights of its share acquisition rights to directors. Based on the ~~Fiscal~~resolutions ~~Year~~of ~~Ending~~the shareholders’ meeting on June 19, 2013 and the Board of Directors on July 17, 2013, the Company also issued 2,358 rights of its share acquisition rights to certain employees and certain directors of subsidiaries during the year ending March 31, 2014. The options vest 100% on each of the grant dates and are exercisable from August 1, 2016.

~~Similarly,~~The ~~the~~number ~~Company is also projecting that non-consolidated volume~~ of ~~sales~~shares ofsubject ~~mining~~to ~~equipment~~one ~~will~~share ~~decline~~acquisition inrights ~~the~~is ~~construction,~~100 ~~mining and utility equipment business~~shares. ~~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).~~

~~Projection~~The ofCompany recognizes compensation expense using the ~~Company~~fair ~~for~~value method. Compensation expenses during the ~~Fiscal~~six ~~Year~~months ~~Ending~~ended ~~March~~September 3130, ~~2014~~2013 and 2012 were ¥226 million and ¥200 million, respectively, and were recorded in selling, general and administrative expenses. Compensation expenses during the three months ended September 30, 2013 and 2012 were ¥226 million and ¥200 million, respectively, and were recorded in selling, general and administrative expenses.

						Millions of yen except per share amounts
	Earlierprojection		Currentprojection		Changes						Results for FYended March 31,2013
	[A]		[B]		[B-A]			[(B-A)/A]
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

~~(4)~~8. ~~Others~~Net Income Attributable to Komatsu Ltd. per Share

~~(1)~~A ~~Changes~~reconciliation inof ~~important~~the ~~subsidiaries~~numerators ~~during~~and denominators of the ~~six~~basic ~~month~~and ~~period~~diluted ~~under~~net ~~review~~income attributable to Komatsu Ltd. per share computations is as follows: ~~None~~

(2) Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None


	Millions of yen
	Six months ended September 30, 2013		Six months ended September 30, 2012
Net income attributable to Komatsu Ltd.	¥	78,810	¥	66,112

	Number of shares
	Six months ended September 30, 2013		Six months ended September 30, 2012
Weighted average common shares outstanding, less treasury stock		953,073,969		952,319,152
Dilutive effect of:
Stock options		1,020,440		783,888

Weighted average diluted common shares outstanding		954,094,409		953,103,040


	Yen
	Six months ended September 30, 2013		Six months ended September 30, 2012
Net income attributable to Komatsu Ltd. per share:
Basic	¥	82.69	¥	69.42
Diluted	¥	82.60	¥	69.37

~~(3)~~22 ~~Changes in Significant Accounting Rules, Procedures and Presentation and Changes in Significant Accounting Policies and Estimates~~

1) Changes resulting from revisions in accounting standards, etc.: Applicable


	Millions of yen
	Three months ended September 30, 2013		Three months ended September 30, 2012
Net income attributable to Komatsu Ltd.	¥	41,519	¥	33,988

	Number of shares
	Three months ended September 30, 2013		Three months ended September 30, 2012
Weighted average common shares outstanding, less treasury stock		953,173,320		952,330,361
Dilutive effect of:
Stock options		1,065,012		809,790

Weighted average diluted common shares outstanding		954,238,332		953,140,151


	Yen
	Three months ended September 30, 2013		Three months ended September 30, 2012
Net income attributable to Komatsu Ltd. per share:
Basic	¥	43.56	¥	35.69
Diluted	¥	43.51	¥	35.66

~~From~~23 the fiscal year ending March 31, 2014, Komatsu adopted the Accounting Standards Update (“ASU”) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This adoption did not have any impact on Komatsu’s financial position and results of operations.

2)9. ~~Changes~~Contingent inLiabilities ~~other matters except for 1) above: Applicable~~

~~The~~At ~~Company~~September 30, 2013 and ~~some~~at ofMarch 31, ~~its consolidated~~2013, ~~subsidiaries~~Komatsu ~~which~~was ~~had~~contingently ~~adopted~~liable ~~the~~for ~~declining~~discounted ~~balance~~and ~~method~~transferred ~~for~~receivables ~~depreciation~~on ofa ~~property,~~recourse ~~plant~~basis ~~and~~with ~~equipment changed~~ the financial ~~depreciation~~institutions ~~method~~of to¥365 million ~~the~~and ~~straight-line~~¥406 ~~method beginning April 1~~million, ~~2013~~respectively.

Komatsu ~~promotes~~provides ~~continuous~~guarantees ~~innovation~~to ofthird ~~technologies~~parties byof ~~concentrating~~loans ~~the production~~ of ~~high-value added and technologically~~the ~~important~~employees, ~~key~~affiliated ~~components in Japan~~companies, ~~and~~customers ~~also undertakes integrated development~~ and ~~production~~other ~~under the Mother Plant system~~companies. AsThe aguarantees ~~general~~of ~~rule,~~loans ~~Komatsu~~relating ~~engages~~to ~~in local production in different parts of~~ the ~~world~~employees ~~where~~are ~~there~~mainly ismade ~~sufficient market demand~~ for ~~its~~their ~~products~~housing loans. ~~With~~The ~~respect~~guarantees ~~to mainstay products, however, Komatsu has facilitated effective use~~ of ~~its~~loans ~~global~~relating ~~production~~to ~~capacities~~the byaffiliated 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 efficiencycompanies, ~~standardization~~customers ~~of production~~ and ~~stable~~other ~~operation of production facilities through renewing its old factory buildings in Japan,~~companies ~~reassessing~~are ~~logistics~~made ~~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~~enhance ~~investment,~~the ~~Komatsu~~credit ~~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 periodscompanies.

For each guarantee provided, Komatsu would have to perform under a guarantee, if the borrower defaults on a payment within the contract terms. The contract terms are from 10 years to 30 years in the case of employees with housing loans, and from 1 year to 11 years in the 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 event of default was ¥82,707 million and ¥94,776 million at September 30, 2013 and at March 31, 2013, respectively. The fair value of the liabilities recognized for Komatsu’s obligations as guarantors under those guarantees at September 30, 2013 was insignificant. Certain of those guarantees were secured by collateral and insurance issued to Komatsu.

~~Table~~Management of ~~Contents~~Komatsu believes that losses from those contingent liabilities, if any, would not have a material effect on the consolidated financial statements.

AsKomatsu ais ~~result~~involved ofin ~~reviewing~~certain ~~its~~legal ~~depreciation~~actions ~~method,~~and ~~Komatsu~~claims ~~concluded~~arising ~~that~~in the ~~straight-line~~ ~~method~~ordinary ~~would~~course beof anits ~~appropriate~~business. ~~depreciation~~It ~~method~~is tothe ~~reflect~~opinion ~~its~~of ~~usage~~management ofand legal ~~property,~~counsel ~~plants~~that ~~and~~such ~~equipment~~litigation and toclaims ~~allocate~~will ~~the~~be ~~costs~~resolved inwithout ~~earnings~~material effect on Komatsu’s financial statements.

~~The~~Komatsu ~~effect~~has ofbusiness activities with customers, dealers and associates around the ~~change~~world inand ~~depreciation~~its ~~method~~trade isreceivables ~~recognized~~from ~~prospectively~~such asparties aare ~~change~~well indiversified ~~accounting~~to ~~estimate~~minimize inconcentrations ~~accordance with~~of ~~the~~credit ~~FASB~~risks. ~~Accounting~~Management ~~Standards~~does ~~Codification~~not ~~(ASC)~~anticipate ~~250~~incurring ~~“Accounting~~losses ~~Changes~~on ~~and~~its ~~Error~~trade ~~Corrections”~~receivables in excess of established allowances.

As24 a result of the change in depreciation method, depreciation expense for the six months ended September 30, 2013 decreased by approximately JPY5.3 billion. Net Income attributable to Komatsu Ltd. for the six months ended September 30, 2013 increased by approximately JPY3.3 billion. Both Basic and Diluted net income attributable to Komatsu Ltd. per common share for the six months ended September 30, 2013 increased by JPY3.50.

~~Cautionary~~10. ~~Statement~~Derivative Financial Instruments

~~The~~Notional ~~announcement~~principal ~~set~~amounts ~~forth~~of ~~herein contains~~derivative ~~forward-looking statements which reflect management’s current views with respect to certain future events, including expected~~ financial ~~position,~~instruments ~~operating~~outstanding ~~results,~~at ~~and business strategies. These statements can be identified by the use of terms such as “will~~September 30,” ~~“believes,”~~2013 ~~“should,” “projects”~~ and ~~similar~~at ~~terms and expressions that identify future events or expectations. Actual results may differ materially from those projected~~March 31, ~~and~~2013 ~~the events~~are ~~and~~as ~~results~~follows: ~~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 the Company’s principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or 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.


	Millions of yen
	September 30, 2013		March 31, 2013
Forwards:
Sale of foreign currencies	¥	118,753	¥	130,060
Purchase of foreign currencies		48,100		39,904
Interest rate swaps, cross-currency swaps and interest rate cap agreements		93,755		103,182

Fair value of derivative instruments at September 30, 2013 and March 31, 2013 on the consolidated balance sheets are as follows (Notes 11 and 12):


	Millions of yen
	September 30, 2013
	Derivative Assets			Derivative Liabilities
Derivative instruments designated as hedging instruments	Location on the consolidated Balance Sheets	Estimated fair value		Location on the consolidated Balance Sheets	Estimated fair value
Forwards contracts	Deferred income taxes and other current assets	¥	650	Deferred income taxes and other current liabilities	¥	34
	Deferred income taxes and other assets		—	Deferred income taxes and other liabilities		5,382
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		7	Deferred income taxes and other current liabilities		845

Total		¥	657		¥	6,261


	Derivative Assets			Derivative Liabilities
Undesignated derivative instruments	Location on the consolidated Balance Sheets	Estimated fair value		Location on the consolidated Balance Sheets	Estimated fair value
Forwards contracts	Deferred income taxes and other current assets	¥	788	Deferred income taxes and other current liabilities	¥	2,529
	Deferred income taxes and other assets		—	Deferred income taxes and other liabilities		1
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		172	Deferred income taxes and other current liabilities		656
	Deferred income taxes and other assets		125	Deferred income taxes and other liabilities		518

Total		¥	1,085		¥	3,704

Total Derivative Instruments		¥	1,742		¥	9,965

~~Consolidated~~25 ~~Financial Statements~~

(1) Consolidated Balance Sheets


	Millions of yen
	March 31, 2013
	Derivative Assets			Derivative Liabilities
Derivative instruments designated as hedging instruments	Location on the consolidated Balance Sheets	Estimated fair value		Location on the consolidated Balance Sheets	Estimated fair 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


	Derivative Assets			Derivative Liabilities
Undesignated derivative instruments	Location on the consolidated Balance Sheets	Estimated fair value		Location on the consolidated Balance Sheets	Estimated fair 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

~~Assets~~26

~~Millions~~The effects of ~~yen~~derivative instruments on the consolidated statements of income and consolidated statements of comprehensive income for the six months ended September 30, 2013 and 2012 are as follows:

	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

Derivative instruments designated as cash flow hedging relationships


	Millions of yen
	Six months ended September 30, 2013
	Effective portion							Ineffective portion and amount excluded from effectiveness testing
	Amount of gains (losses) recognized in OCI on derivatives			Location of gains (losses) reclassified from accumulated OCI into income	Amount of gains (losses) reclassified from accumulated OCI into income			Location of gains (losses) recognized in income on derivatives		Amount of gains (losses) recognized in income on derivatives
Forwards contracts	¥	(5,024	)	Other income (expenses), net: Other, net	¥	(6,166	)		—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		110		—		—			—		—

Total	¥	(4,914	)		¥	(6,166	)			¥	—


	Millions of yen
	Six months ended September 30, 2012
	Effective portion							Ineffective portion and amount excluded from effectiveness testing
	Amount of gains (losses) recognized in OCI on derivatives			Location of gains (losses) reclassified from accumulated OCI into income	Amount of gains (losses) reclassified from accumulated OCI into income			Location of gains (losses) recognized in income on derivatives		Amount of gains (losses) recognized in income on derivatives
Forwards contracts	¥	5,748		Other income (expenses), net: Other, net	¥	2,734			—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		(195	)	—		—			—		—

Total	¥	5,553			¥	2,734				¥	—

~~Table~~OCI ofstands ~~Contents~~for other comprehensive income (loss).

~~Liabilities~~Derivative ~~and~~instruments ~~Equity~~not designated as hedging instruments relationships

Millions of yen


	Millions of yen
	Six months ended September 30, 2013
	Location of gains (losses) recognized in income on derivatives	Amount of gains (losses) recognized in income on derivatives
Forwards contracts	Other income (expenses), net: Other, net	¥	(25	)
Option contracts	Other income (expenses), net: Other, net		(0	)
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		122
	Other income (expenses), net: Other, net		122

Total		¥	219


	Millions of yen
	Six months ended September 30, 2012
	Location of gains (losses) recognized in income on derivatives	Amount of gains (losses) recognized in income on derivatives
Forwards contracts	Other income (expenses), net: Other, net	¥	445
Option contracts	Other income (expenses), net: Other, net		(1	)
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		(21	)
	Other income (expenses), net: Other, net		(608	)

Total		¥	(185	)

	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

13The effects of derivative instruments on the consolidated statements of income and consolidated statements of comprehensive income for the three months ended September 30, 2013 and 2012 are as follows:

~~Table~~Derivative ofinstruments ~~Contents~~designated as cash flow hedging relationships

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


	Millions of yen
	Three months ended September 30, 2013
	Effective portion								Ineffective portion and amount excluded from effectiveness testing
	Amount of gains (losses) recognized in OCI on derivatives			Location of gains (losses) reclassified from accumulated OCI into income		Amount of gains (losses) reclassified from accumulated OCI into income			Location of gains (losses) recognized in income on derivatives		Amount of gains (losses) recognized in income on derivatives
Forwards contracts	¥	(762	)		Other income (expenses), net: Other, net	¥	(508	)		—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		77			—		—			—		—

Total	¥	(685	)			¥	(508	)			¥	—


	Millions of yen
	Three months ended September 30, 2012
	Effective portion								Ineffective portion and amount excluded from effectiveness testing
	Amount of gains (losses) recognized in OCI on derivatives			Location of gains (losses) reclassified from accumulated OCI into income		Amount of gains (losses) reclassified from accumulated OCI into income			Location of gains (losses) recognized in income on derivatives		Amount of gains (losses) recognized in income on derivatives
Forwards contracts	¥	1,720			Other income (expenses), net: Other, net	¥	1,464			—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		303			—		—			—		—

Total	¥	2,023				¥	1,464				¥	—

~~Six~~OCI ~~months~~stands ~~ended~~for ~~September 30,~~other ~~2013~~comprehensive ~~and~~income ~~2012~~(loss).

~~Consolidated~~Derivative ~~Statements~~instruments ofnot ~~Income~~designated as hedging instruments relationships

Millions of yen except per share amounts


	Millions of yen
	Three months ended September 30, 2013
	Location of gains (losses) recognized in income on derivatives	Amount of gains (losses) recognized in income on derivatives
Forwards contracts	Other income (expenses), net: Other, net	¥	(245	)
Option contracts	Other income (expenses), net: Other, net		(0	)
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		64
	Other income (expenses), net: Other, net		(14	)

Total		¥	(195	)


	Millions of yen
	Three months ended September 30, 2012
	Location of gains (losses) recognized in income on derivatives	Amount of gains (losses) recognized in income on derivatives
Forwards contracts	Other income (expenses), net: Other, net	¥	(1,460	)
Option contracts	Other income (expenses), net: Other, net		(2	)
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		56
	Other income (expenses), net: Other, net		(915	)

Total		¥	(2,321	)

	Six Months endedSeptember 30, 2013						Six Months endedSeptember 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

1411. Fair Values of Financial Instruments

~~Table~~(1) ofCash ~~Contents~~and cash equivalents, Time deposits, Trade notes and accounts receivable, Other current assets, Short-term debt, Trade notes, bills and accounts payables, and Other current liabilities

~~Consolidated~~The ~~Statements~~carrying amount approximates fair value because of ~~Comprehensive~~the ~~Income~~short maturity of these instruments.

~~Millions~~(2) ofInvestment ~~yen~~securities, marketable equity securities

	Six Months endedSeptember 30, 2013		Six Months endedSeptember 30, 2012
Net income	¥	83,285	¥	71,236
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments		23,268		(43,822	)
Net unrealized holding gains (losses) on securities available for sale		3,793		(6,513	)
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

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.

15(3) Long-term trade receivables

~~Table~~The fair values of ~~Contents~~long-term trade receivables are based on the present value of future cash flows through maturity, discounted using estimated current interest rates. The fair values computed on such a basis approximate the carrying amounts.

~~Three~~(4) ~~months~~Long-term ~~ended September 30~~debt, ~~2013~~including ~~and~~current ~~2012~~portion (Note 12)

~~Consolidated~~The ~~Statements~~fair values of ~~Income~~each of the long-term debts are based on the quoted price in the most active market or the present value of future cash flows associated with each instrument discounted using the current borrowing rate for similar debt of comparable maturity and is classified in Level 2 in the fair value hierarchy.

~~Millions~~(5) ofDerivatives ~~yen~~(Notes ~~except~~10 ~~per~~and ~~share~~12) ~~amounts~~

	Three Months endedSeptember 30, 2013						Three Months endedSeptember 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

The fair values of derivative financial instruments, consisting principally of foreign exchange contracts and interest swap agreements, are estimated by obtaining quotes from brokers and are recognized on the accompanying consolidated balance sheets.

1629

~~Table~~The carrying amounts and the estimated fair values of ~~Contents~~the financial instruments, including financial instruments not qualifying as hedge, at September 30, 2013 and at March 31, 2013, are summarized as follows:

Consolidated Statements of Comprehensive Income


	Millions of yen
	September 30, 2013				March 31, 2013
	Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Cash and cash equivalents	¥	91,675	¥	91,675	¥	93,620	¥	93,620
Time deposits		369		369		217		217
Trade notes and accounts receivable, net		541,586		541,586		606,904		606,904
Long-term trade receivables, net		245,136		245,136		235,825		235,825
Investment securities, marketable equity securities		54,552		54,552		50,954		50,954
Short-term debt		199,509		199,509		205,156		205,156
Trade notes, bills and accounts payable		234,508		234,508		226,275		226,275
Long-term debt, including current portion		421,372		411,752		474,607		469,444
Derivatives:
Forwards and options
Assets		1,438		1,438		507		507
Liabilities		7,946		7,946		10,023		10,023
Interest rate swaps, cross-currency swaps and interest rate cap agreements
Assets		304		304		332		332
Liabilities		2,019		2,019		2,126		2,126

~~Millions of yen~~ Limitations

	Three Months endedSeptember 30, 2013			Three Months endedSeptember 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

Fair 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.

1730

~~Table~~12. ofFair ~~Contents~~value measurements

~~(3)~~ASC ~~Consolidated~~820, ~~Statements~~“Fair Value Measurements and Disclosures” defines that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of ~~Cash~~inputs ~~Flows~~used to measure fair value are as follows:

~~Millions~~Level of1 ~~yen~~– Quoted prices in active markets for identical assets or liabilities

	Six Months endedSeptember 30, 2013			Six Months endedSeptember 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

Level 2

– Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly
or indirectly

18Level 3 – Unobservable inputs for the assets or liabilities

~~Table~~31 ~~of Contents~~

~~(4)~~Assets ~~Note~~and toliabilities ~~the~~that ~~Going~~are ~~Concern~~measured ~~Assumption~~at fair value on a recurring basis

~~None~~The fair value hierarchy levels of assets and liabilities that are measured at fair value on a recurring basis at September 30, 2013 and at March 31, 2013 are as follows:

(5) Business Segment Information


	Millions of yen
September 30, 2013	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
Manufacturing industry	¥	28,480	¥	—	¥	—	¥	28,480
Financial service industry		21,459		—		—		21,459
Other		4,613		—		—		4,613
Derivatives
Forward contracts		—		1,438		—		1,438
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		304		—		304

Total	¥	54,552	¥	1,742	¥	—	¥	56,294

Liabilities
Derivatives
Forward contracts	¥	—	¥	7,946	¥	—	¥	7,946
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		2,019		—		2,019
Other		—		78,820		572		79,392

Total	¥	—	¥	88,785	¥	572	¥	89,357

1) Information by Operating Segments


	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

~~Six~~Investment ~~Months~~securities ~~ended~~available ~~September 30,~~for ~~2013~~sale ~~and 2012~~

~~(For~~Marketable ~~Six~~equity ~~Months~~securities ~~ended~~are ~~September~~classified ~~30,~~in ~~2013)~~Level ~~Millions~~1 ofin ~~yen~~the fair value hierarchy. Marketable equity securities are measured using a market approach based on the quoted market prices in active markets.

	Construction,Mining andUtility Equipment		IndustrialMachinery andOthers		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

Derivatives (~~For~~Notes ~~Six~~10 ~~Months~~and ~~ended September 30, 2012~~11) ~~Millions of yen~~

	Construction,Mining andUtility Equipment		IndustrialMachinery andOthers		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

Derivatives 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.

~~Three~~Other ~~Months ended September 30, 2013 and 2012~~

~~(For~~Other ~~Three~~primarily ~~Months~~represents ~~ended~~loans ~~September~~which 30are measured at fair value under the Fair Value Option of ASC 825, ~~2013)~~“Financial ~~Millions~~Instruments”. The fair value of ~~yen~~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.

	Construction,Mining andUtility Equipment		IndustrialMachinery andOthers		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

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

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


	Millions of yen
	Six months ended September 30, 2013			Six months ended September 30, 2012
Balance, beginning of year	¥	(639	)	¥	(752	)
Total gains or losses (realized / unrealized)		67			180
Included in earnings		92			143
Included in other comprehensive income (loss)		(25	)		37

Balance, end of period	¥	(572	)	¥	(572	)

	Construction,Mining andUtility Equipment		IndustrialMachinery andOthers		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

The amounts of unrealized gains on classified in Level 3 liabilities recognized in earnings for the six months ended September 30, 2013 and 2012 related to liabilities still held at September 30, 2013 and 2012 were gains of ¥92 million and gains of ¥143 million, respectively. These gains were reported in other income (expenses), net of the consolidated statements of income.

19The following table summarizes information about changes of Level 3 for the three months ended September 30, 2013 and 2012


	Millions of yen
	Three months ended September 30, 2013			Three months ended September 30, 2012
Balance, beginning of period	¥	(594	)	¥	(604	)
Total gains or losses (realized / unrealized)		22			32
Included in earnings		17			19
Included in other comprehensive income (loss)		5			13

Balance, end of period	¥	(572	)	¥	(572	)

~~Notes:~~The 1)amounts ~~Business~~of ~~categories~~unrealized gains on classified in Level 3 liabilities recognized in earnings for the three months ended September 30, 2013 and ~~principal~~2012 ~~products~~related to liabilities still held at September &30, ~~services~~2013 ~~included~~and 2012 were gains of ¥17 million and gains of ¥19 million, respectively. These gains were reported in ~~each~~other ~~operating~~income ~~segment~~(expenses), net of the ~~are~~consolidated asstatements ~~follows:~~of income.

a)Assets ~~Construction,~~and ~~Mining~~liabilities ~~and~~that ~~Utility~~are ~~Equipment~~measured at fair value on a non-recurring basis

~~Excavating~~During ~~equipment,~~six ~~loading~~months ~~equipment, grading &~~ended ~~roadbed preparation equipment~~September 30, ~~hauling~~2013 ~~equipment,~~and ~~forestry~~2012 ~~equipment,~~assets ~~tunneling~~and ~~machines,~~liabilities ~~recycling~~that ~~equipment,~~were ~~industrial~~measured ~~vehicles,~~at ~~other~~fair ~~equipment,~~value ~~engines &~~on ~~components,~~a ~~casting~~non-recurring ~~products,~~basis ~~and~~were ~~logistics~~not material.

b)33 ~~Industrial Machinery and Others~~

~~Metal~~13. ~~forging &~~Committed ~~stamping~~Credit ~~presses,~~lines ~~sheet-metal machines, machine tools, defense systems, temperature-control equipment, and others~~

2)Certain ~~Transfers~~consolidated ~~between~~subsidiaries ~~segments~~have ~~are~~entered ~~made~~into contract with certain financial institutions for committed credit lines. These total amounts of committed credit lines at ~~estimated~~September 30, ~~arm’s-length~~2013 ~~prices~~and at March 31, 2013 were ¥42,278 million and ¥49,997 million, respectively. These total amounts of unused committed credit lines available for full and immediate borrowings at September 30, 2013 and March 31, 2013 were ¥15,276 million and ¥14,738 million, respectively.

2)34 ~~Geographic Information~~

~~Net~~14. ~~sales~~Dividends ~~determined by customer location were as follows:~~

~~For~~ Six ~~Months~~months ended September 30, 2013 ~~and 2012~~

~~Millions~~(1) Payment amount of ~~yen~~dividends

	Japan				Americas			Europe &CIS		China			Asia* &Oceania		Middle East& Africa		Total
Resolution	Type of stock		Aggregate amountof dividends(Millions of yen)				Resource ofdividends	Dividendper share(Yen)		Record date		Effective date
FY2013		193,608				272,858			96,179		87,722			198,278		76,476		925,121
Ordinary general meeting of shareholders held on June 19, 2013	Common stock			22,879			Retained earnings		24	March 31, 2013		June 20, 2013
FY2012		178,916				268,437			99,572		75,331			246,774		61,819		930,849

~~For~~(2) ~~Three~~Dividends ~~Months~~to be paid for the six months ended September 30, 2013, ~~and~~of ~~2012~~which effective date is after September 30, 2013

Millions of yen

Resolution

Type of stock

Aggregate amount
of dividends
(Millions of yen)

Resource of
dividends

Dividend
per share
(Yen)

Record date

Effective date

Board of Directors held on October 28, 2013

Common stock

27,658

Retained earnings

September 30, 2013

November 29, 2013

	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

Six months ended September 30, 2012

*(1) ~~Excluding~~Payment ~~Japan~~amount ~~and~~of ~~China~~dividends

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

Resolution

Type of stock

Aggregate amount
of dividends
(Millions of yen)

Resource of
dividends

Dividend
per share
(Yen)

Record date

Effective date

Ordinary general meeting of shareholders held on June 20, 2012

Common stock

20,008

Retained earnings

March 31, 2012

June 21, 2012

~~None~~(2) Dividends to be paid for the six months ended September 30, 2012, of which effective date is after September 30, 2012

(7) Others

Resolution

Type of stock

Aggregate amount
of dividends
(Millions of yen)

Resource of
dividends

Dividend
per share
(Yen)

Record date

Effective date

Board of Directors held on October 30, 2012

Common stock

22,868

Retained earnings

September 30, 2012

November 30, 2012

InThe ~~the Consolidated Statements of Cash Flow, Komatsu disclosed its cash flow of short-term debt in financing activities on a net~~ amount ~~basis~~is inrounded ~~the~~down 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 benearest ~~consistent~~million ~~with September 30, 2013~~yen. ~~This change does not have any impact on the total cash flow from financing activities.~~

~~(end)~~35

2015. Business Segment and Geographic Information

~~Table~~Komatsu ofhas ~~Contents~~two operating segments: 1) Construction, Mining and Utility Equipment, and 2) Industrial Machinery and Others.

~~For~~The ~~Immediate~~accounting ~~Release~~policies used by the segments are the same as those used in the preparation of the quarterly consolidated financial statements.

~~Komatsu~~Segment ~~Ltd~~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.

~~Corporate~~Operating ~~Communications~~segments: ~~Dept.~~

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


	Millions of yen
	Six months ended			Six months ended
	September 30, 2013			September 30, 2012
Net sales:
Construction, Mining and Utility Equipment—
External customers	¥	828,775		¥	837,668
Intersegment		1,296			1,482

Total		830,071			839,150
Industrial Machinery and Others—
External customers		96,346			93,181
Intersegment		3,253			4,018

Total		99,599			97,199
Elimination		(4,549	)		(5,500	)

Consolidated	¥	925,121		¥	930,849

Segment profit:
Construction, Mining and Utility Equipment	¥	105,793		¥	109,581
Industrial Machinery and Others		4,808			3,301

Total segment profit		110,601			112,882
Corporate expenses and elimination		(1,508	)		(1,602	)

Total		109,093			111,280
Other operating income (expenses), net		(147	)		(16	)
Operating income		108,946			111,264
Interest and dividend income		2,286			2,268
Interest expense		(4,363	)		(4,506	)
Other, net		5,592			(3,642	)

Consolidated income before income taxes and equity in earnings of affiliated companies	¥	112,461		¥	105,384

~~Date: October 28,~~36 ~~2013~~

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


	Millions of yen
	Three months ended			Three months ended
	September 30, 2013			September 30, 2012
Net sales:
Construction, Mining and Utility Equipment—
External customers	¥	412,870		¥	408,747
Intersegment		564			627

Total		413,434			409,374
Industrial Machinery and Others—
External customers		57,092			52,154
Intersegment		2,129			1,959

Total		59,221			54,113
Elimination		(2,693	)		(2,586	)

Consolidated	¥	469,962		¥	460,901

Segment profit:
Construction, Mining and Utility Equipment	¥	53,182		¥	55,379
Industrial Machinery and Others		3,985			925

Total segment profit		57,167			56,304
Corporate expenses and elimination		(620	)		(288	)

Total		56,547			56,016
Other operating income (expenses), net		(14	)		(470	)
Operating income		56,533			55,546
Interest and dividend income		884			952
Interest expense		(2,116	)		(2,383	)
Other, net		5,571			27

Consolidated income before income taxes and equity in earnings of affiliated companies	¥	60,872		¥	54,142

~~Announcement~~Business ~~Concerning~~categories ~~the~~and ~~Revision~~principal ofproducts ~~Projected~~and ~~Business~~services ~~Results~~included in each operating segment are as follows:

~~Komatsu Ltd~~a. ~~(hereinafter~~Construction, ~~“Company”)~~Mining ~~(President~~ and ~~CEO:~~Utility ~~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.~~ Equipment:

1.Excavating ~~Projection~~equipment, ~~for~~loading ~~Consolidated~~equipment, ~~Business~~grading ~~Results~~and ~~for~~roadbed ~~the~~preparation ~~Fiscal~~equipment, ~~Year~~hauling ~~Ending~~equipment, ~~March 31~~forestry equipment, ~~2014~~tunneling ~~(U.S.~~machines, ~~GAAP)~~recycling equipment, industrial vehicles, other equipment, engines and components, casting products and logistics

~~Millions~~b. ofIndustrial ~~yen~~Machinery ~~except~~and ~~per share amounts~~ Others:

	Earlierprojection		Currentprojection		Changes						Results for FYended March 31,2013
	[A]		[B]		[B-A]			[(B-A)/A]
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

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

2.Transfers ~~Projection~~between ~~for~~segments ~~Non-consolidated~~are ~~Business~~made ~~Results~~at ~~for~~estimated ~~the~~arm’s-length ~~Fiscal~~prices. ~~Year Ending March 31, 2014~~

~~Millions~~37 ~~of yen except per share amounts~~

	Earlierprojection		Currentprojection		Changes						Results for FYended March 31,2013
	[A]		[B]		[B-A]			[(B-A)/A]
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

Geographic information:

1Net sales determined by customer location for the six months ended September 30, 2013 and 2012 are as follows:


	Millions of yen
	Six months ended		Six months ended
	September 30, 2013		September 30, 2012
Japan	¥	193,608	¥	178,916
The Americas		272,858		268,437
Europe and CIS		96,179		99,572
China		87,722		75,331
Asia (excluding Japan and China) and Oceania		198,278		246,774
Middle East and Africa		76,476		61,819

Consolidated net sales	¥	925,121	¥	930,849

3.Net ~~Reasons~~sales determined by customer location for the ~~Revision~~three months ended September 30, 2013 and 2012 are as follows:

[Projection for Consolidated Business Results]


	Millions of yen
	Three months ended		Three months ended
	September 30, 2013		September 30, 2012
Japan	¥	113,574	¥	98,190
The Americas		140,959		139,347
Europe and CIS		44,692		44,498
China		39,966		28,020
Asia (excluding Japan and China) and Oceania		92,854		116,678
Middle East and Africa		37,917		34,168

Consolidated net sales	¥	469,962	¥	460,901

~~With respect~~Net ~~to the construction, mining and utility equipment business, Komatsu is projecting that~~ sales ~~volume~~determined ~~will~~by ~~outperform~~geographic ~~the~~origin ~~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~~six ofmonths ~~the~~ended ~~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~~September 2530, 2013. ~~Concerning profits, while facing a decline in sales volume in the construction, mining~~ and ~~utility~~ ~~equipment~~2012 ~~business,~~are ~~Komatsu~~as isfollows: 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(April 1, 2013 – March 31, 2014).

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)


	Millions of yen
	Six months ended		Six months ended
	September 30, 2013		September 30, 2012
Japan	¥	295,699	¥	301,118
U.S.A.		253,269		258,979
Europe and CIS		107,144		97,563
China		76,225		61,730
Others		192,784		211,459

Consolidated net sales	¥	925,121	¥	930,849

~~[Projection~~Net sales determined by geographic origin for ~~Non-consolidated~~the ~~Business Results]~~three months ended September 30, 2013 and 2012 are as follows:

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).


	Millions of yen
	Three months ended		Three months ended
	September 30, 2013		September 30, 2012
Japan	¥	165,123	¥	152,663
U.S.A.		129,269		133,990
Europe and CIS		50,906		45,323
China		33,992		24,201
Others		90,672		104,724

Consolidated net sales	¥	469,962	¥	460,901

~~Cautionary~~Other ~~Statement~~than in Japan, U.S.A. and China, no individual country had a material impact on net sales to external customers.

~~The~~There ~~announcement~~were ~~set~~no ~~forth~~sales ~~herein contains forward-looking statements which reflect management’s current views with respect~~ to ~~certain~~a ~~future~~single ~~events,~~major ~~including~~external ~~expected~~customer ~~financial~~for ~~position, operating results, and business strategies. These statements can be identified by~~ the ~~use of~~six ~~terms~~months ~~such as “will,” “believes,” “should,” “projects”~~ and ~~similar~~three ~~terms~~months ~~and~~ended ~~expressions that identify future events or expectations. Actual results may differ materially from those projected~~September 30, ~~and~~2013 ~~the events~~ and ~~results of such forward-looking assumptions cannot be assured~~2012.

~~Factors~~38 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)~~16. Subsequent Event

2There was no significant subsequent event to be disclosed.

KOMATSU LTD.

(Registrant)

Date: October 29, 2013

/S/ Mikio Fujitsuka

Mikio Fujitsuka

Director and Senior Executive Officer

Filing Compare · KOMATSU LTD