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 under

~~Pursuant~~the toSecurities ~~Rule~~Exchange ~~13a-16~~Act orof ~~15d-16~~1934 ~~under~~

For the ~~Securities~~month ~~Exchange Act~~ of ~~1934~~February, 2014

~~For~~COMMISSION ~~the~~FILE ~~month~~NUMBER: of1-7239 ~~January, 2014~~

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

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

~~(Translation~~3-6 ofAkasaka 2-chome, ~~registrant’s~~Minato-ku, ~~name~~Tokyo, ~~into~~107-8414, ~~English)~~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-FT 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 Third Quarter of ~~Contents~~the 145th Fiscal Year filed on February 12, 2014

~~INFORMATION~~On ~~INCLUDED~~February 12, IN2014, ~~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 nine months ended December 31, 2013 and the three months ended December 31, 2013.

1.Material ~~English~~information ~~translation~~in ofthe areport, ~~company~~other ~~announcement~~than ~~made~~the onQuarterly ~~January~~Consolidated 29Financial Statements, ~~2014~~has ~~regarding~~already been reported by the registrant ~~Consolidated~~in ~~Business~~its ~~Results~~press ~~for~~release ~~the~~dated ~~Nine~~January 29, ~~Months~~2014, a copy of ~~the~~which ~~Fiscal~~was ~~Year~~submitted ~~Ending~~under ~~March~~cover 31of Form 6-K on January 30, 2014 ~~(U.S.~~by ~~GAAP)~~the registrant.

2.Attached is an English translation of athe ~~company announcement made on January 29, 2014 regarding Komatsu~~registrant’s ~~plan~~Quarterly toConsolidated ~~apply~~Financial Statements for ~~termination~~the ofnine ~~its~~months ~~registration~~ended ~~with~~December 31, 2013 and the ~~U.S.~~three ~~Securities~~months ~~and~~ended ~~Exchange~~December 31, ~~Commission~~2013.

~~Table~~SIGNATURES ~~of Contents~~

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

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


		KOMATSU LTD.
		(Registrant)

Date: February 13, 2014	By:	/s/ Mikio Fujitsuka
		Mikio Fujitsuka
		Director and Senior Executive Officer
		Chief Financial Officer

3[Quarterly Consolidated Financial Statements]

~~Table~~Consolidated ofBalance ~~Contents~~Sheets (Unaudited)

Komatsu Ltd. and ~~Corporate~~Consolidated ~~Communications~~Subsidiaries ~~Dept. Tel: +81-(0)3-5561-2616 Date: January 29, 2014 URL: http://www.komatsu.com/~~

~~Consolidated~~December 31, ~~Business~~2013 ~~Results~~and ~~for~~March 31, ~~Nine~~2013 ~~Months of the Fiscal Year Ending~~

March 31, 2014 (U.S. GAAP)


	December 31, 2013				March 31, 2013
	Millions of yen		Component ratio (%)		Millions of yen		Component ratio (%)
Assets
Current assets
Cash and cash equivalents (Note 11)	¥	110,890			¥	93,620
Time deposits (Note 11)		132				217
Trade notes and accounts receivable, net (Notes 3 and 11)		591,975				606,904
Inventories (Note 4)		728,217				633,647
Deferred income taxes and other current assets (Notes 10, 11 and 12)		171,164				157,668

Total current assets		1,602,378		58.9		1,492,056		59.3

Long-term trade receivables, net (Notes 3 and 11)		251,320		9.2		235,825		9.4

Investments
Investments in and advances to affiliated companies		20,403				19,404
Investment securities (Notes 5, 11 and 12)		69,572				59,279
Other		2,111				2,574

Total investments		92,086		3.4		81,257		3.2

Property, plant and equipment—less accumulated depreciation and amortization of ¥740,534 million at December 31, 2013 and ¥706,297 million at March 31, 2013		645,957		23.7		585,220		23.2

Goodwill		36,124		1.3		34,703		1.4

Other intangible assets — less accumulated amortization		58,798		2.2		58,523		2.3

Deferred income taxes and other assets (Notes 10, 11 and 12)		34,691		1.3		30,273		1.2

	¥	2,721,354		100.0	¥	2,517,857		100.0

~~1. Results~~The ~~for~~accompanying ~~Nine~~Notes ~~Months~~are ~~Ended~~an ~~December 31,~~integral ~~2013~~part of these Quarterly Consolidated Financial Statements.

~~(Amounts~~4 ~~are rounded to the nearest million yen)~~

(1) Consolidated Financial Highlights


	December 31, 2013					March 31, 2013
	Millions of yen			Component ratio (%)		Millions of yen			Component ratio (%)
Liabilities and Equity
Current liabilities
Short-term debt (Note 11)	¥	254,988				¥	205,156
Current maturities of long-term debt (Notes 11 and 12)		108,536					130,793
Trade notes, bills and accounts payable (Note 11)		234,886					226,275
Income taxes payable		25,411					33,227
Deferred income taxes and other current liabilities (Notes 10, 11 and 12)		232,384					232,125

Total current liabilities		856,205			31.5		827,576			32.8

Long-term liabilities
Long-term debt (Notes 11 and 12)		341,133					343,814
Liability for pension and retirement benefits		51,598					49,912
Deferred income taxes and other liabilities (Notes 10, 11 and 12)		54,773					43,860

Total long-term liabilities		447,504			16.4		437,586			17.4

Total liabilities		1,303,709			47.9		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
Outstanding 953,195,700 shares at December 31, 2013 and 952,778,859 shares at March 31, 2013		67,870					67,870
Capital surplus		139,370					138,818
Retained earnings:
Appropriated for legal reserve		39,944					38,230
Unappropriated		1,097,588					1,034,504
Accumulated other comprehensive income (loss) (Notes 5, 6, 10 and 12)		52,021					(43,440	)
Treasury stock at cost, 29,934,560 shares at December 31, 2013 and 30,351,401 shares at March 31, 2013		(42,211	)				(42,788	)

Total Komatsu Ltd. shareholders’ equity		1,354,582			49.8		1,193,194			47.4

Noncontrolling interests		63,063			2.3		59,501			2.4

Total equity		1,417,645			52.1		1,252,695			49.8

	¥	2,721,354			100.0	¥	2,517,857			100.0

~~Millions~~The accompanying Notes are an integral part of ~~yen~~ ~~except~~these ~~per~~Quarterly ~~share~~Consolidated ~~amounts~~Financial Statements.

	Nine Months endedDecember 31, 2013		Nine Months endedDecember 31, 2012		ChangesIncrease (Decrease)
	[A]		[B]		[A-B]		[(A-B)/B]
Net sales		1,389,514		1,350,578		38,936		2.9	%
Operating income		165,632		150,491		15,141		10.1	%
Income before income taxes and equity in earnings of affiliated companies		170,131		145,588		24,543		16.9	%
Net income attributable to Komatsu Ltd.		115,337		91,096		24,241		26.6	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	121.01	¥	95.66	¥	25.35
Diluted	¥	120.88	¥	95.57	¥	25.31

~~Note:~~Consolidated ~~Comprehensive~~Statements ~~income~~of ~~for~~Income ~~nine~~and ~~months~~Consolidated ~~ended~~Statements ~~December 31,~~of ~~2013~~Comprehensive ~~and~~Income ~~2012~~(Unaudited)

2013:		221,155 millions of yen, up		62.3% from 2012
2012:		136,241 millions of yen, up		76.8% from 2011

Komatsu Ltd. and Consolidated Subsidiaries

~~(2)~~Nine ~~Consolidated~~months ~~Financial~~ended December 31, ~~Position~~2013 and 2012

~~Millions~~Consolidated Statements of ~~yen~~Income ~~except per share amounts~~

	As of December 31, 2013			As of March 31, 2013
	Nine months endedDecember 31, 2013						Nine months endedDecember 31, 2012
Total assets		2,721,354			2,517,857
	Millions of yen			Componentratio (%)			Millions of yen			Componentratio (%)
Total equity		1,417,645			1,252,695
Net sales	¥	1,389,514			100.0		¥	1,350,578			100.0
Komatsu Ltd. shareholders’ equity		1,354,582			1,193,194
Cost of sales (Note 10)		991,363			71.3			986,846			73.1
Komatsu Ltd. shareholders’ equity ratio		49.8	%		47.4	%
Selling, general and administrative expenses (Note 7)		234,442			16.9			212,663			15.7
Komatsu Ltd. shareholders’ equity per share (Yen)	¥	1,421.10		¥	1,252.33
Other operating income (expenses), net		1,923			0.1			(578	)		(0.0	)
Operating income		165,632			11.9			150,491			11.1
Other income (expenses), net
Interest and dividend income		3,060			0.2			3,209			0.2
Interest expense		(6,634	)		(0.5	)		(6,155	)		(0.5	)
Other, net (Notes 5, 10 and 12)		8,073			0.6			(1,957	)		(0.1	)
Total		4,499			0.3			(4,903	)		(0.4	)
Income before income taxes and equity in earnings of affiliated companies		170,131			12.2			145,588			10.8
Income taxes
Current		42,946						47,039
Deferred		6,588						1,219
Total		49,534			3.6			48,258			3.6
Income before equity in earnings of affiliated companies		120,597			8.7			97,330			7.2
Equity in earnings of affiliated companies		1,633			0.1			1,007			0.1
Net income		122,230			8.8			98,337			7.3
Less: Net income attributable to noncontrolling interests		6,893			0.5			7,241			0.5
Net income attributable to Komatsu Ltd.	¥	115,337			8.3		¥	91,096			6.7
	Yen
	Nine months endedDecember 31, 2013						Nine months endedDecember 31, 2012
Net income attributable to Komatsu Ltd. per share (Note 8)
Basic	¥	121.01					¥	95.66
Diluted		120.88						95.57
Cash dividends per share (Note 14)		53.00						45.00

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

~~(For~~6 ~~the fiscal years ended March 31, 2013 and ending March 31, 2014) Yen~~

	The entire FY endingMarch 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

Consolidated Statements of Comprehensive Income

Note: Changes in the projected cash dividend as of January 29, 2014: None


	Nine months ended December 31, 2013		Nine months ended December 31, 2012
	Millions of yen		Millions of yen
Net income	¥	122,230	¥	98,337
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments (Note 6)		89,561		36,186
Net unrealized holding gains (losses) on securities available for sale (Notes 5 and 6)		8,171		125
Pension liability adjustments (Note 6)		832		1,611
Net unrealized holding gains (losses) on derivative instruments (Notes 6 and 10)		361		(18	)

Total		98,925		37,904

Comprehensive income (loss)		221,155		136,241
Less: Comprehensive income (loss) attributable to noncontrolling interests		10,378		9,442

Comprehensive income (loss) attributable to Komatsu Ltd.	¥	210,777	¥	126,799

1The accompanying Notes are an integral part of these Quarterly Consolidated Financial Statements.

~~Table~~7 ~~of Contents~~

3.Three ~~Projection~~months ~~for~~ended ~~the Fiscal Year Ending March~~December 31, ~~2014~~2013 and 2012

~~(From~~Consolidated ~~April 1,~~Statements ~~2013~~of toIncome ~~March 31, 2014)~~

Millions of yen except per share amounts


	Three months ended December 31, 2013						Three months ended December 31, 2012
	Millions of yen			Component ratio (%)			Millions of yen			Component ratio (%)
Net sales	¥	464,393			100.0		¥	419,729			100.0
Cost of sales (Note 10)		330,822			71.2			308,761			73.6
Selling, general and administrative expenses (Note 7)		78,955			17.0			71,179			17.0
Other operating income (expenses), net		2,070			0.4			(562	)		(0.1	)

Operating income		56,686			12.2			39,227			9.3

Other income (expenses), net
Interest and dividend income		774			0.2			941			0.2
Interest expense		(2,271	)		(0.5	)		(1,649	)		(0.4	)
Other, net (Notes 5, 10 and 12)		2,481			0.5			1,685			0.4

Total		984			0.2			977			0.2
Income before income taxes and equity in earnings of affiliated companies		57,670			12.4			40,204			9.6

Income taxes
Current		14,202						10,805
Deferred		5,212						2,737

Total		19,414			4.2			13,542			3.2

Income before equity in earnings of affiliated companies		38,256			8.2			26,662			6.4
Equity in earnings of affiliated companies		689			0.1			439			0.1

Net income		38,945			8.4			27,101			6.5

Less: Net income attributable to noncontrolling interests		2,418			0.5			2,117			0.5
Net income attributable to Komatsu Ltd.	¥	36,527			7.9		¥	24,984			6.0


	Yen
	Three months ended December 31, 2013						Three months ended December 31, 2012
Net income attributable to Komatsu Ltd. per share (Note 8)
Basic	¥	38.32					¥	26.23
Diluted		38.28						26.21
Cash dividends per share (Note 14)		29.00						24.00

	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

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

~~Notes:~~8 ~~1) Changes in the projected consolidated business results as of January 29, 2014: None~~

~~2) Percentages~~Consolidated ~~shown~~Statements ~~above represent the rates~~ of ~~change~~Comprehensive ~~compared~~Income ~~with the corresponding period a year ago.~~

4. Others


	Three months ended December 31, 2013			Three months ended December 31, 2012
	Millions of yen			Millions of yen
Net income	¥	38,945		¥	27,101
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments (Note 6)		66,293			80,008
Net unrealized holding gains (losses) on securities available for sale (Notes 5 and 6)		4,378			6,638
Pension liability adjustments (Note 6)		330			409
Net unrealized holding gains (losses) on derivative instruments (Notes 6 and 10)		(423	)		(1,398	)

Total		70,578			85,657

Comprehensive income (loss)		109,523			112,758
Less: Comprehensive income (loss) attributable to noncontrolling interests		6,060			7,250

Comprehensive income (loss) attributable to Komatsu Ltd.	¥	103,463		¥	105,508

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

~~(2)~~9 ~~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~~Equity ~~Accounting~~(Unaudited) ~~Rules, Procedures and Presentation and Changes in Significant Accounting Policies and Estimates~~

1)Komatsu ~~Changes~~Ltd. ~~resulting~~and ~~from~~Consolidated ~~revisions~~Subsidiaries ~~in accounting standards, etc: Applicable~~

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


Nine months ended December 31, 2013																	Millions of yen

	Common stock		Capital surplus			Retained earnings					Accumulated other comprehensive income (loss)			Treasury stock			Total Komatsu Ltd. shareholders’ equity			Noncontrolling interests			Total equity
	Common stock		Capital surplus			Appropriated for legal reserve		Unappropriated			Accumulated other comprehensive income (loss)			Treasury stock			Total 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)									(50,539	)								(50,539	)		(5,574	)		(56,113	)
Transfer to retained earnings appropriated for legal reserve							1,714		(1,714	)								—						—
Other changes				(112	)							21						(91	)		(1,242	)		(1,333	)
Net income									115,337									115,337			6,893			122,230
Other comprehensive income(loss), for the period, net of tax (Note 6)												95,440						95,440			3,485			98,925
Issuance and exercise of stock acquisition rights (Note 7)				322														322						322
Purchase of treasury stock															(41	)		(41	)					(41	)
Sales of treasury stock				342											618			960						960

Balance at December 31, 2013	¥	67,870	¥	139,370		¥	39,944	¥	1,097,588		¥	52,021		¥	(42,211	)	¥	1,354,582		¥	63,063		¥	1,417,645


Nine months ended December 31, 2012																				Millions of yen

	Common stock		Capital surplus			Retained earnings					Accumulated other comprehensive income (loss)			Treasury stock			Total Komatsu Ltd. shareholders’ equity			Noncontrolling interests			Total equity
	Common stock		Capital surplus			Appropriated for legal reserve		Unappropriated			Accumulated other comprehensive income (loss)			Treasury stock			Total 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)									(42,877	)								(42,877	)		(5,689	)		(48,566	)
Transfer to retained earnings appropriated for legal reserve							268		(268	)								—						—
Other changes																		—			(47	)		(47	)
Net income									91,096									91,096			7,241			98,337
Other comprehensive income(loss), for the period, net of tax (Note 6)												35,703						35,703			2,201			37,904
Issuance and exercise of stock acquisition rights (Note 7)				499														499						499
Purchase of treasury stock															(26	)		(26	)					(26	)
Sales of treasury stock									(54	)					107			53						53

Balance at December 31, 2012	¥	67,870	¥	138,883		¥	38,222	¥	999,292		¥	(106,686	)	¥	(43,437	)	¥	1,094,144		¥	51,467		¥	1,145,611

~~Note:~~The ~~See~~accompanying ~~(4) Others~~Notes onare ~~page~~an ~~9 for~~integral ~~more~~part ~~details~~of these Quarterly Consolidated Financial Statements.

~~(4)~~10 ~~Number of common shares outstanding~~

1)Consolidated ~~The~~Statements ~~numbers~~ of ~~common~~Cash ~~shares~~Flows ~~issued~~ (~~including treasury stock~~Unaudited) ~~were as follows:~~

AsKomatsu ~~of December 31,~~Ltd. ~~2013: 983,130,260~~and ~~shares~~Consolidated Subsidiaries

AsNine ofmonths ~~March~~ended December 31, 2013~~: 983,130,260~~ ~~shares~~and 2012

2) The numbers of shares of treasury were as follows:


	Millions of yen
	Nine months ended December 31, 2013			Nine months ended December 31, 2012
Operating activities
Net income	¥	122,230		¥	98,337
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		64,028			64,597
Deferred income taxes		6,588			1,219
Impairment loss and net loss (gain) from sale of investment securities		(1,605	)		97
Net loss (gain) on sale of property		(4,329	)		(435	)
Loss on disposal of fixed assets		2,271			1,045
Pension and retirement benefits, net		1,645			569
Changes in assets and liabilities:
Decrease (increase) in trade receivables		61,729			59,788
Decrease (increase) in inventories		(36,017	)		(16,669	)
Increase (decrease) in trade payables		(1,570	)		(71,360	)
Increase (decrease) in income taxes payable		(8,579	)		(7,225	)
Other, net		(17,397	)		(875	)

Net cash provided by (used in) operating activities		188,994			129,088

Investing activities
Capital expenditures		(130,987	)		(104,356	)
Proceeds from sale of property		19,776			6,402
Proceeds from sale of available for sale investment securities		4,332			595
Purchases of available for sale investment securities		(35	)		(11	)
Acquisition of subsidiaries and equity investees, net of cash acquired		(4,539	)		(5,752	)
Collection of loan receivables		225			613
Disbursement of loan receivables		(16	)		(50	)
Decrease (increase) in time deposits, net		860			788

Net cash provided by (used in) investing activities		(110,384	)		(101,771	)

Financing activities
Proceeds from debt issued (Original maturities greater than three months) (Note 2)		153,316			286,620
Payment on debt (Original maturities greater than three months) (Note 2)		(167,531	)		(268,534	)
Short-term debt - net (Original maturities three months or less) (Note 2)		10,870			21,914
Repayments of capital lease obligations		(2,552	)		(5,057	)
Sale (purchase) of treasury stock, net		(26	)		44
Dividends paid		(50,539	)		(42,877	)
Other, net		(6,068	)		(7,002	)

Net cash provided by (used in) financing activities		(62,530	)		(14,892	)

Effect of exchange rate change on cash and cash equivalents		1,190			(503	)

Net increase (decrease) in cash and cash equivalents		17,270			11,922
Cash and cash equivalents, beginning of year		93,620			83,079

Cash and cash equivalents, end of period	¥	110,890		¥	95,001

AsThe accompanying Notes are an integral part of ~~December 31, 2013: 29,934,560~~these ~~shares~~Quarterly Consolidated Financial Statements.

As11 ~~of March 31, 2013: 30,351,401 shares~~

3)Notes ~~The~~to ~~weighted~~Quarterly ~~average~~Consolidated ~~numbers~~Financial ofStatements ~~common~~(Unaudited) ~~shares outstanding were as follows:~~

~~Nine~~Komatsu ~~months~~Ltd. ~~period ended~~and ~~December 31,~~Consolidated ~~2013: 953,113,777~~Subsidiaries ~~shares~~

Nine months ~~period~~ ended December 31, ~~2012: 952,321,093~~ ~~shares~~2013 and 2012

21. Basis of Quarterly Financial Statement Presentation and Summary of Significant Accounting Policies

~~Table~~Basis of ~~Contents~~Quarterly Financial Statement Presentation

~~[Reference]~~Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) prepare and present the accompanying quarterly consolidated financial statements in accordance with generally accepted accounting principles in the United States of America.

~~Results~~Summary ~~for~~of ~~Three~~Significant ~~Months~~Accounting Policies ~~Ended December 31, 2013~~

~~Millions~~(1) Adoption of ~~yen~~new ~~except~~accounting ~~per~~standards ~~share amounts~~

	Three Months endedDecember 31, 2013		Three Months endedDecember 31, 2012		ChangesIncrease (Decrease)
	[A]		[B]		[A-B]		[(A-B)/B]
Net sales		464,393		419,729		44,664		10.6	%
Operating income		56,686		39,227		17,459		44.5	%
Income before income taxes and equity in earnings of affiliated companies		57,670		40,204		17,466		43.4	%
Net income attributable to Komatsu Ltd.		36,527		24,984		11,543		46.2	%
Net income attributable to Komatsu Ltd.per share (Yen)
Basic	¥	38.32	¥	26.23	¥	12.09
Diluted	¥	38.28	¥	26.21	¥	12.07

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).

3(2) Change in depreciation method

~~Table~~The Company and some of ~~Contents~~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.

~~Appendix~~Komatsu promotes continuous innovation of technologies by concentrating the production of high-value added and technologically important key components in Japan, and also undertakes integrated development and production under the Mother Plant system. As a general rule, Komatsu engages in local production in different parts of the world where there is sufficient market demand for its products. With respect to mainstay products, however, Komatsu has facilitated effective use of its global production capacities by cross sourcing finished products after producing them at its most cost-effective plants and exporting them in light of changes in market demand and foreign exchange rate. Komatsu is establishing its production efficiency, standardization of production and stable operation of production facilities through renewing its old factory buildings in Japan, reassessing logistics and reforming production process by technology innovation as well as cutting down electric power consumption to 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 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.9
Consolidated Financial Statements
(1) Consolidated Balance Sheets			P.11
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			P.13
(3) Consolidated Statements of Cash Flows			P.17
(4) Note to the Going Concern Assumption			P.18
(5) Business Segment Information			P.18
(6) Note in Case of Notable Changes in the Amount of Shareholders’ Equity			P.19
(7) Others			P.19

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

4The effect of the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification (ASC) 250 “Accounting Changes and Error Corrections”.

~~Table~~As a result of ~~Contents~~the change in depreciation method, depreciation expense for the nine months ended December 31, 2013 decreased by ¥8,651 million. Net Income attributable to Komatsu Ltd. for the nine months ended December 31, 2013 increased by ¥5,355 million. Basic and Diluted net income attributable to Komatsu Ltd. per common share for the nine months ended December 31, 2013 increased by ¥5.62, and ¥5.61, respectively.

~~Management~~Excluding ~~Performance~~the ~~and~~above, ~~Financial~~there ~~Conditions~~is no material change for Summary of Significant Accounting Policies stated in annual report for the year ended March 31, 2013.

~~(1)~~12 ~~Outline of Operations and Business Results~~

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

~~For~~Additional ~~the~~cash ~~nine-month~~flow ~~period~~information ~~(April 1 – December 31, 2013) of the fiscal year ending March 31, 2014, which represents the first year of the mid-range management plan, in the construction, mining~~ and ~~utility~~noncash ~~equipment~~investing ~~business, while demand for mining equipment remained slack, that for construction equipment increased in Japan, China~~ and ~~some~~financing ~~other~~activities regions. In addition, reflecting the Japanese yen’s depreciation, sales increased from the corresponding period a year ago. With respect to the industrial machinery and others business, while sales of machine tools as well as sheet-metal and press machines were firm mainly in the automobile manufacturing industry, total sales declined from the corresponding period a year ago. As a result, consolidated net sales for the nine~~-month~~ ~~period~~months ~~increased~~ended ~~by 2.9% from the corresponding period a year ago~~December 31, to2013 JPY1,389.5 billion (USD13,233 million at USD1=JPY105). Concerning profits, while the loss of write-off of the inventories of wire saws was realized, operating income improved by 10.1% to JPY165.6 billion (USD1,577 million), supported by improved selling prices and ~~production~~2012 ~~costs,~~are ~~continued~~as ~~focus~~follows: on curtailing fixed costs and the Japanese yen’s depreciation. Operating income ratio increased by 0.8 points to 11.9%. Income before income taxes and equity in earnings of affiliated companies improved by 16.9% to JPY170.1 billion (USD1,620 million). Net income attributable to Komatsu Ltd. advanced by 26.6% to JPY115.3 billion (USD1,098 million).

[Consolidated Financial Highlights] Millions of yen


	Millions of yen
	Nine months ended December 31, 2013		Nine months ended December 31, 2012
Additional cash flow information:
Interest paid	¥	7,168	¥	6,824
Income taxes paid		60,280		48,693
Noncash investing and financing activities:
Capital lease obligations incurred	¥	1,340	¥	3,258

	Nine Months endedDecember 31,20131USD=JPY98.51EUR=JPY130.51RMB=JPY16.1			Nine Months endedDecember 31,20121USD=JPY79.81EUR=JPY102.11RMB=JPY12.7			ChangesIncrease(Decrease)
	[A]			[B]			[(A-B)/B]
Net sales		1,389,514			1,350,578			2.9	%
Construction, Mining and Utility Equipment		1,250,795			1,207,614			3.6	%
Industrial Machinery and Others		144,903			150,626			(3.8	)%
Elimination		(6,184	)		(7,662	)		—
Segment profit		163,709			151,069			8.4	%
Construction, Mining and Utility Equipment		164,124			148,381			10.6	%
Industrial Machinery and Others		1,122			3,824			(70.7	)%
Corporate & elimination		(1,537	)		(1,136	)		—
Operating income		165,632			150,491			10.1	%
Income before income taxes and equity in earnings of affiliated companies		170,131			145,588			16.9	%
Net income attributable to Komatsu Ltd.		115,337			91,096			26.6	%

In the consolidated statements of cash flow, Komatsu disclosed its cash flow of short-term debt in financing activities on a net amount basis in the nine months ended December 31, 2012. Komatsu discloses its cash flow on a net amount basis for the debts whose original maturities are three months or less in the nine months ended December 31, 2013. The consolidated statements of cash flow for the nine months ended December 31, 2012 have been re-presented to be consistent with the December 31, 2013 presentation. This change does not have any impact on the reported total cash flow from financing activities.

~~Note:~~13 Sales and profit figures in this report show the respective sums of nine months from April 1 to December 31, 2013. Unless otherwise noted, all sales by segment in this report indicate the amounts before elimination of inter-segment transactions.

53. Allowance for Doubtful Receivables

~~Table~~At ofDecember 31, ~~Contents~~2013 and at March 31, 2013, allowances for doubtful receivables deducted from Trade notes and accounts receivable, net and Long-term trade receivables, net are ¥18,723 million and ¥17,994 million, respectively.

~~Business~~14 ~~results by operation are described below.~~

~~Construction,~~4. ~~Mining~~Inventories ~~and Utility Equipment~~

~~While demand~~At ~~for mining equipment remained slack~~December 31, ~~especially~~2013 ~~in coal mines, that for construction equipment was strong in Japan~~ and ~~steadily~~at ~~increased in China~~March 31, ~~where demand upturned for recovery during the current fiscal year. In addition~~2013, ~~the~~inventories ~~Japanese yen~~comprised ~~depreciated against~~ the ~~U.S.~~following: dollar, euro, renminbi and some other currencies, compared to the corresponding period a year ago. Sales of construction, mining and utility equipment increased by 3.6% from the corresponding period a year ago, to JPY1,250.7 billion (USD11,912 million). Segment profit increased by 10.6% to JPY164.1 billion (USD1,563 million).

Under such an environment, Komatsu steadily launched D61PXi-23 medium-sized Machine Control dozers, which feature the world’s first fully automatic blade control, in North America, Europe and Japan. As a next-generation product playing a vital role of the growth strategies based on innovation, Komatsu also broadened its model range. During the period under review, Komatsu worked to reinforce the aftermarket business, which includes the provision of services and sales expansion of strategic parts by using KOMTRAX (Komatsu Machine Tracking System), which is installed in over 300,000 units worldwide. With respect to models certified for new emission regulations which have become effective in the United States, Europe and Japan since 2011, Komatsu continued aggressive market introduction together with KOMATSU CARE, a new service program designed to reduce the total lifecycle costs of these models and prolong machine life.


	Millions of yen
	December 31, 2013		March 31, 2013
Finished products, including finished parts held for sale	¥	520,137	¥	437,729
Work in process		148,740		141,166
Materials and supplies		59,340		54,752

Total	¥	728,217	¥	633,647

To15 strengthen research and development of operations related to manufacturing engineering, Komatsu began operation of a new manufacturing engineering development center, designed to play an important role of reforming production and improving product performance, in the Osaka Plant in October 2013. Komatsu also facilitated activities to cut down electric power consumption to half at all plants in Japan, including the on-going construction of a new factory which will feature dynamic energy-saving and productivity by means of cutting-edge technologies, at the Awazu Plant in Ishikawa Prefecture.

~~[Sales~~5. toInvestment ~~Outside~~Securities ~~Customers of Construction, Mining and Utility Equipment by Region] Millions of yen~~

	Nine Months endedDecember 31, 2013		Nine Months endedDecember 31, 2012		ChangesIncrease (Decrease)
	[A]		[B]		[A-B]			[(A-B)/B]
Japan		245,700		208,504		37,196			17.8	%
North America		201,589		181,977		19,612			10.8	%
Latin America		183,700		195,726		(12,026	)		(6.1	)%
Americas		385,289		377,703		7,586			2.0	%
Europe		85,308		73,811		11,497			15.6	%
CIS		51,914		65,658		(13,744	)		(20.9	)%
Europe & CIS		137,222		139,469		(2,247	)		(1.6	)%
China		112,322		82,992		29,330			35.3	%
Asia*		135,300		165,681		(30,381	)		(18.3	)%
Oceania		119,301		142,764		(23,463	)		(16.4	)%
Asia* & Oceania		254,601		308,445		(53,844	)		(17.5	)%
Middle East		36,298		18,744		17,554			93.7	%
Africa		77,424		69,798		7,626			10.9	%
Middle East & Africa		113,722		88,542		25,180			28.4	%
Total		1,248,856		1,205,655		43,201			3.6	%

Investment securities at December 31, 2013 and at March 31, 2013, primarily consisted of securities available for sale.

*Unrealized ~~Excluding~~holding ~~Japan~~gains and ~~China~~losses are included as a component of accumulated other comprehensive income (loss) until realized.

6The cost, gross unrealized holding gains and losses, and fair value for such investment securities by major security types at December 31, 2013 and at March 31, 2013, are as follows:


	Millions of yen
			Gross unrealized holding
	Cost		Gains		Losses		Fair value
At December 31, 2013
Investment securities:
Marketable equity securities available for sale	¥	15,667	¥	45,621	¥	1	¥	61,287
Other investment securities at cost		8,285

	¥	23,952

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

~~Komatsu’s~~Other ~~operations~~investment bysecurities ~~region~~primarily ~~are~~include ~~described~~non-marketable ~~below~~equity securities.

~~Japan~~Proceeds from the sales of investment securities available for sale during the nine months ended December 31, 2013 and 2012, amounted to ¥4,332 million and ¥595 million, respectively.

~~During~~Impairment ~~the~~loss ~~period~~and ~~under~~net ~~review,~~gain ~~demand~~(loss) ~~for construction~~from ~~equipment~~sale ~~advanced~~of ~~thanks~~investment tosecurities anavailable ~~increase~~for insale ~~construction~~during ~~investment~~the nine months ended December 31, ~~growth~~2013 ofand ~~demand~~2012, inamounted ~~the~~to ~~regions~~gains ~~destroyed~~of by¥1,605 ~~the~~million ~~Great~~and ~~East~~losses ~~Japan~~of ~~Earthquake~~¥97 ~~through~~million, ~~full-scale~~respectively. ~~civil~~Impairment ~~engineering~~loss ~~works~~and ~~for~~net ~~the~~gain ~~construction~~(loss) ~~and~~from ~~relocation~~sale of ~~residences~~ toinvestment ~~elevated~~securities ~~locations~~available asfor ~~well~~sale asduring ~~redevelopment~~the ofthree ~~communities~~months ended December 31, 2013 and ~~expanded~~2012, ~~purchase~~amounted to gains of ~~equipment~~¥107 bymillion ~~customers~~and ~~who~~losses ~~have~~of ~~looked~~¥16 ~~into~~million, ~~stricter~~respectively. ~~emission~~Such ~~regulations~~gains ~~for~~and ~~the~~losses ~~near~~were ~~future.~~included Asin aother ~~result~~income (expenses), ~~sales~~net ~~improved~~in ~~from~~ the ~~corresponding period~~accompanying aconsolidated ~~year~~statements ~~ago~~of income.

~~With~~The ~~respect~~cost ~~to products, Komatsu launched D37PXi-23 small-sized Machine Control dozers to Komatsu Rental Ltd. and other rental companies~~ of the ~~Komatsu~~investment ~~Group~~securities insold ~~December~~was ~~2013,~~computed ~~following~~based ~~D61PXi-23~~on medium-sized Machine Control dozers launched in September 2013. Concerning new products that are complaint with new emission regulations, which have become effective steadily since 2011, Komatsu has launched over 30 models with an addition of the ~~HB205~~average-2cost ~~medium-sized hybrid hydraulic excavator and worked to expand their sales~~method.

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

In North America, while demand advanced in the housing and energy development sectors, that in the rental sector remained sluggish. While overall demand lacked a growth momentum in the period under review, sales increased from the corresponding period a year ago, reflecting the Japanese yen’s depreciation. In June 2013, Komatsu launched D61EXi/PXi-23 medium-sized Machine Control dozers in the United States by leading other regions of the world, and has since increased the volume of their sales steadily.


	Millions of yen
	Less than 12 months				12 months or longer				Total
	Fair value		Gross unrealized holding losses		Fair value		Gross unrealized holding losses		Fair value		Gross unrealized holding losses
At December 31, 2013
Investment securities:
Marketable equity securities available for sale	¥	28	¥	1	¥	—	¥	—	¥	28	¥	1
At March 31, 2013
Investment securities:
Marketable equity securities available for sale	¥	190	¥	8	¥	—	¥	—	¥	190	¥	8

InKomatsu ~~Latin~~judged ~~America,~~the ~~sales~~decline ~~declined~~in ~~from~~fair ~~the~~value ~~corresponding~~of ~~period~~investment asecurities ~~year~~at ~~ago~~December 31, ~~against~~2013 ~~the~~and ~~backdrop~~at ofMarch 31, ~~declined~~2013, ~~demand~~to ~~for~~be temporary, ~~mining~~by ~~equipment~~considering ~~in copper~~such ~~mines~~factors as financial and operating conditions of issuer, the industry in ~~Chile~~which the issuer operates and ~~Peru~~other relevant factors.

~~Europe &~~16 ~~CIS~~

~~In Europe, demand remained slack in Germany and France, among major markets, as economies remained sluggish against the backdrop of the Eurozone crisis~~6. ~~However,~~ ~~sales~~Other ~~increased~~Comprehensive ~~from~~Income ~~the~~(Loss) ~~corresponding period a year ago, reflecting the Japanese yen’s depreciation.~~

InChanges ~~CIS,~~in ~~sales decreased~~accumulated ~~from~~other ~~the~~comprehensive ~~corresponding~~income ~~period~~(loss) afor ~~year~~the ~~ago,~~nine asmonths ~~sharply~~ended ~~affected~~December 31, by2013 ~~downturned~~and ~~demand~~the ~~for~~three ~~equipment~~months ~~for~~ended ~~use~~December 31, in2013 ~~gold~~are as ~~mines.~~follows:

China


	Millions of yen
	Nine months ended December 31, 2013
	Foreign currency translation adjustments			Net unrealized holding gains (losses) on securities available for sale			Pension liability adjustments			Net unrealized holding gains (losses) on derivative instruments			Total
Balance, beginning of year	¥	(38,833	)	¥	21,519		¥	(24,835	)	¥	(1,291	)	¥	(43,440	)
Other comprehensive income (loss) before reclassifications		91,851			9,079			(185	)		(6,729	)		94,016
Amounts reclassified from accumulated other comprehensive income (loss)		(2,290	)		(908	)		1,017			7,090			4,909

Net current-period other comprehensive income (loss)		89,561			8,171			832			361			98,925
Less: Other comprehensive income (loss) attributable to noncotrolling interests		3,404			—			(5	)		86			3,485

Other comprehensive income (loss) attributable to Komatsu Ltd.		86,157			8,171			837			275			95,440
Equity transactions with noncontrolling interests		21			—			—			—			21

Balance, end of period	¥	47,345		¥	29,690		¥	(23,998	)	¥	(1,016	)	¥	52,021

~~Demand,~~All ~~which~~amounts ~~had~~are ~~been~~net ~~sluggish since FY2011, upturned for recovery in April 2013. Komatsu steadily expanded sales~~ of ~~its flagship 20-ton class hydraulic excavators, especially a new model launched in February 2013, which features improved fuel economy, as well as smaller construction equipment~~tax. ~~Sales of 30-ton class hydraulic excavators also recovered in June 2013. As a result, sales significantly improved from the corresponding period a year ago.~~

In October 2013, Komatsu Shantui Construction Machinery Co., Ltd. a manufacturing subsidiary of medium-sized hydraulic excavators in Shandong Province, received the Deming Prize for 2013 for its proactive TQM (total quality management) efforts. Komatsu Shantui Construction Machinery Co., Ltd. became the first award-winning overseas subsidiary of the Company.


	Millions of yen
	Three months ended December 31, 2013
	Foreign currency translation adjustments			Net unrealized holding gains (losses) on securities available for sale		Pension liability adjustments			Net unrealized holding gains (losses) on derivative instruments			Total
Balance, beginning of period	¥	(15,359	)	¥	25,312	¥	(24,330	)	¥	(538	)	¥	(14,915	)
Other comprehensive income (loss) before reclassifications		66,293			4,378		47			(3,696	)		67,022
Amounts reclassified from accumulated other comprehensive income (loss)		—			—		283			3,273			3,556

Net current-period other comprehensive income (loss)		66,293			4,378		330			(423	)		70,578
Less: Other comprehensive income (loss) attributable to noncotrolling interests		3,589			—		(2	)		55			3,642

Other comprehensive income (loss) attributable to Komatsu Ltd.		62,704			4,378		332			(478	)		66,936
Equity transactions with noncontrolling interests		—			—		—			—			—

Balance, end of period	¥	47,345		¥	29,690	¥	(23,998	)	¥	(1,016	)	¥	52,021

7All amounts are net of tax.

~~Table~~17 ~~of Contents~~

~~Asia~~Reclassifications out of accumulated other comprehensive income (loss) for the nine months ended December &31, ~~Oceania~~2013 and the three months ended December 31, 2013 are as follows:

In Indonesia, the largest market of Southeast Asia, demand for mining and construction equipment dropped, as especially affected by the sluggish international price of thermal coal and the depreciation of the Indonesian rupiah which has accelerated since August 2013. As a result, sales in Asia plunged from the corresponding period a year ago.


	Millions of yen
	Nine months ended December 31, 2013			Affected line items in consolidated statements of income
	Nine months ended December 31, 2013			Affected line items in 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		(1,838	)	*1

		(1,838	)	Total before tax
		821		Income taxes

		(1,017	)	Net of tax

Net unrealized holding gains (losses) on derivative instruments
Forwards contracts		(11,454	)	Other income (expenses), net: Other, net

		(11,454	)	Total before tax
		4,364		Income taxes

		(7,090	)	Net of tax

Total reclassifications for the period	¥	(4,909	)	Net of tax


*1 This amount is included in the computation of net periodic pension cost.

	Millions of yen
	Three months ended December 31, 2013			Affected line items in consolidated statements of income
Pension liability adjustments
Amortization of actuarial loss and prior service cost	¥	(674	)	*1

		(674	)	Total before tax
		391		Income taxes

		(283	)	Net of tax

Net unrealized holding gains (losses) on derivative instruments
Forwards contracts		(5,288	)	Other income (expenses), net: Other, net

		(5,288	)	Total before tax
		2,015		Income taxes

		(3,273	)	Net of tax

Total reclassifications for the period	¥	(3,556	)	Net of tax

In*1 ~~Oceania,~~This asamount ~~demand~~is ~~for~~included ~~mining equipment~~ in ~~iron ore mines and that for construction equipment remained slack, sales declined from~~ the ~~corresponding~~ ~~period~~computation ~~a year ago. In October 2013, Komatsu introduced 30-ton class HB335/365-1 hybrid hydraulic excavators in Australia by leading other regions~~ of ~~the~~net ~~world.~~periodic ~~They~~pension ~~are Komatsu’s second hybrid hydraulic excavators after 20-ton class models~~cost.

~~Middle~~18 ~~East & Africa~~

InTax ~~the Middle~~effects ~~East,~~allocated ~~sales expanded from the corresponding period a year ago, partly due~~ to ~~demand~~each ~~which~~component ~~increased~~of ~~steadily~~other incomprehensive ~~Turkey,~~income ~~the~~(loss) ~~largest~~for ~~market of~~ the ~~region,~~nine ~~and~~months ~~Gulf nations. In Saudi Arabia~~ended December 31, ~~Komatsu~~2013 ~~worked~~and ~~together with a leading local company, with whom it signed~~ the ~~distributorship~~three ~~agreement~~months inended ~~2012~~December 31, to2013 ~~steadfastly~~are ~~reinforce~~as ~~sales~~follows: ~~and product support operations.~~

In Africa, sales increased from the corresponding period a year ago, reflecting demand for equipment for use in coal and iron ore mines.


	Millions of yen
	Nine months ended December 31, 2013
	Before tax amount			Tax (expense) or benefit			Net of tax amount
Foreign currency translation adjustments
Foreign currency translation adjustments arising during period	¥	92,003		¥	(152	)	¥	91,851
Less: Reclassification adjustment for gains included in net income		(2,290	)		—			(2,290	)

Net foreign currency translation adjustments		89,713			(152	)		89,561
Net unrealized holding gains (losses) on securities available for sale
Unrealized holding gains arising during period		14,067			(4,988	)		9,079
Less: Reclassification adjustment for gains included in net income		(1,498	)		590			(908	)

Net unrealized gains		12,569			(4,398	)		8,171
Pension liability adjustments
Pension liability adjustments arising during period		(283	)		98			(185	)
Less: Reclassification adjustment for losses included in net income		1,838			(821	)		1,017

Net pension liability adjustments		1,555			(723	)		832
Net unrealized holding gains (losses) on derivative instruments
Changes in fair value of derivatives		(10,911	)		4,182			(6,729	)
Net losses reclassified into earnings		11,454			(4,364	)		7,090

Net unrealized gains		543			(182	)		361

Other comprehensive income (loss)	¥	104,380		¥	(5,455	)	¥	98,925


	Millions of yen
	Three months ended December 31, 2013
	Before tax amount			Tax (expense) or benefit			Net of tax amount
Foreign currency translation adjustments
Foreign currency translation adjustments arising during period	¥	66,398		¥	(105	)	¥	66,293
Less: Reclassification adjustment for gains included in net income		—			—			—

Net foreign currency translation adjustments		66,398			(105	)		66,293
Net unrealized holding gains (losses) on securities available for sale
Unrealized holding gains arising during period		6,685			(2,307	)		4,378
Less: Reclassification adjustment for gains included in net income		—			—			—

Net unrealized gains		6,685			(2,307	)		4,378
Pension liability adjustments
Pension liability adjustments arising during period		49			(2	)		47
Less: Reclassification adjustment for losses included in net income		674			(391	)		283

Net pension liability adjustments		723			(393	)		330
Net unrealized holding gains (losses) on derivative instruments
Changes in fair value of derivatives		(5,997	)		2,301			(3,696	)
Net losses reclassified into earnings		5,288			(2,015	)		3,273

Net unrealized losses		(709	)		286			(423	)

Other comprehensive income (loss)	¥	73,097		¥	(2,519	)	¥	70,578

~~Industrial~~19 ~~Machinery and Others~~

While sales of machine tools as well as sheet-metal and press machines remained firm centering on the automobile manufacturing industry, sales decreased by 3.8% from the corresponding nine-month period a year ago, to JPY144.9 billion (USD1,380 million). Segment profit dropped by 70.7~~% to JPY1~~.1 ~~billion (USD11 million). In the third quarter of the current fiscal year, the loss of write~~Share-~~off~~Based ofCompensation ~~the inventories of wire saws whose demand have been sluggish was realized in the amount of JPY7.6 billion.~~

InThe ~~the business~~Company ofhas ~~machine~~two ~~tools~~types ~~as well as sheet-metal and press machines, Komatsu aggressively worked to expand sales~~ of ~~strategic~~stock ~~products,~~option ~~such~~plans as ~~NTG~~share-~~4SP~~based ~~grinders,~~compensation ~~H1F-2~~for ~~small~~directors ACand ~~Servo~~certain ~~presses,~~employees and ~~new~~certain ~~KFL~~directors ~~Series~~of ~~fiber laser cutting machines, all designed to enhance customers’ productivity, safety and environmental performance~~subsidiaries.

~~(2)~~The ~~Financial~~stock ~~Conditions~~option plans resolved by the Board of Directors’ meetings held in and before June 2010

AsThe ofright ~~December 31,~~to ~~2013,~~purchase ~~total~~the ~~assets~~Company’s ~~increased~~shares byis ~~JPY203.4~~granted ~~billion~~at ~~from~~a ~~the~~predetermined ~~previous~~price ~~fiscal~~to ~~year-end,~~directors toand ~~JPY2,721.3~~certain ~~billion~~employees ~~(USD25,918~~and ~~million),~~certain ~~mainly~~directors of subsidiaries. ~~due~~The topurchase price is the ~~Japanese~~amount ~~yen’s~~calculated ~~depreciation~~by ~~against~~taking the ~~U.S.~~average ~~dollar,~~of ~~euro~~the ~~and~~closing ~~renminbi.~~prices ~~Interest-bearing~~applicable ~~debt~~to ~~increased~~ordinary bytransactions ~~JPY24.8~~of ~~billion~~shares ~~from~~of the ~~previous~~Company ~~fiscal~~on ~~year-end,~~the toTokyo ~~JPY704.6~~Stock ~~billion~~Exchange ~~(USD6,711~~on ~~million).~~all ~~Komatsu~~days ~~Ltd.~~for ~~shareholders’ equity~~a ~~increased~~month byimmediately ~~JPY161.3~~preceding ~~billion from~~ the ~~previous~~month ~~fiscal~~in ~~year-end,~~which tothe date ~~JPY1,354.5~~of ~~billion~~grant ~~(USD12,901~~of ~~million).~~the Asright afalls ~~result,~~and ~~Komatsu~~multiplying ~~Ltd~~by 1.05, ~~shareholders’~~provided ~~equity~~that ~~ratio~~the ~~increased~~exercise byprice ~~2.4~~shall ~~percentage~~not ~~points~~be ~~from~~less than the ~~previous~~closing ~~fiscal~~price ~~year-end,~~of ~~to 49.8%.~~the ~~Net~~shares ~~debt-to-equity~~of ratio*the ~~was~~Company ~~0.44,~~on ~~compared~~the toTokyo ~~0.49~~Stock asExchange ofon the ~~previous~~date ~~fiscal~~of ~~year-end~~the grant.

*The ~~Net~~stock ~~debt-to-equity~~option ~~ratio~~plans =resolved ~~(Interest-bearing~~by ~~debt~~the –Board ~~Cash~~of ~~and~~Directors’ ~~cash~~meetings ~~equivalents~~held –in ~~Time~~and ~~deposits)~~after /July ~~Komatsu~~2010 ~~Ltd. shareholders’ equity~~

~~For~~The ~~the~~right ~~nine-month~~to ~~period~~purchase ~~under review, net cash provided by operating activities totaled JPY188.9 billion (USD1,800 million), an increase of JPY59.9 billion from~~ the ~~corresponding~~Company’s ~~period~~shares ais ~~year~~granted ~~ago,~~at ~~mainly due to net income of JPY122.2 billion (USD1,164 million) and improved working capital. Net cash used in investing activities amounted to JPY110.3 billion (USD1,051 million),~~ an ~~increase~~ ofexercise ~~JPY8.6~~price ~~billion from the corresponding period a year ago, mainly due to the purchase~~ of ~~fixed~~¥1 ~~assets.~~per ~~Net~~share ~~cash used in financing activities amounted~~ to ~~JPY62.5~~directors ~~billion~~and ~~(USD596~~certain ~~million),~~employees ~~mainly due to the payment of cash dividends, as compared to JPY14.8 billion used for the corresponding period a year ago. After adding the effects of foreign exchange rate fluctuations, cash~~ and ~~cash~~certain ~~equvalents,~~directors ~~totaled JPY110.8 billion (USD1,056 million), an increase~~ of ~~JPY17.2 billion from the~~ ~~previous fiscal year-end~~subsidiaries.

8Based 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 ended March 31, 2013. The options vest 100% on each of the grant dates and are exercisable from August 1, 2015.

~~Table~~In addition, based on the resolutions of ~~Contents~~the shareholders’ meeting on June 23, 2010 and the Board of Directors on July 17, 2013, the Company issued 561 rights of its share acquisition rights to directors. Based on the resolutions of 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.

~~(3)~~The ~~Projection~~number ~~for~~of ~~the~~shares ~~Fiscal~~subject ~~Year~~to ~~Ending~~one ~~March 31,~~share ~~2014~~acquisition rights is 100 shares.

~~(From~~The ~~April~~Company recognizes compensation expense using the fair value method. Compensation expenses during the nine months ended December 131, 2013 toand ~~March~~2012 were ¥564 million and ¥500 million, respectively, and were recorded in selling, general and administrative expenses. Compensation expenses during the three months ended December 31, ~~2014)~~2013 and 2012 were ¥338 million and ¥300 million, respectively, and were recorded in selling, general and administrative expenses.

~~On October 28,~~The ~~2013,~~Company ~~Komatsu~~transfers ~~revised~~treasury ~~its~~stock ~~projections~~without issuance of ~~business~~new ~~results~~stock ~~for~~when the ~~fiscal~~share ~~year~~acquisition ~~ending~~rights ~~March 31, 2014, which~~ are ~~shown on page 2 of this report~~exercised.

~~(4)~~20 ~~Others~~

~~(1)~~8. ~~Changes~~Net inIncome ~~important~~Attributable ~~subsidiaries~~to ~~during~~Komatsu ~~the~~Ltd. ~~nine~~per ~~month~~Share ~~period under review: None~~

~~(2)~~A ~~Use~~reconciliation of ~~simplified~~the ~~accounting~~numerators ~~procedures~~ and ~~adoption~~denominators of ~~specific~~the ~~accounting~~basic ~~procedures~~and ~~for~~diluted ~~the~~net ~~preparation~~income ofattributable ~~consolidated~~to ~~quarterly~~Komatsu ~~financial~~Ltd. ~~statements~~per share computations is as follows: ~~None~~

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


	Millions of yen
	Nine months ended December 31, 2013		Nine months ended December 31, 2012
Net income attributable to Komatsu Ltd.	¥	115,337	¥	91,096

	Number of shares
	Nine months ended December 31, 2013		Nine months ended December 31, 2012
Weighted average common shares outstanding, less treasury stock		953,113,777		952,321,093
Dilutive effect of:
Stock options		1,030,276		843,019

Weighted average diluted common shares outstanding		954,144,053		953,164,112


	Yen
	Nine months ended December 31, 2013		Nine months ended December 31, 2012
Net income attributable to Komatsu Ltd. per share:
Basic	¥	121.01	¥	95.66
Diluted	¥	120.88	¥	95.57

	Millions of yen
	Three months ended December 31, 2013		Three months ended December 31, 2012
Net income attributable to Komatsu Ltd.	¥	36,527	¥	24,984

	Number of shares
	Three months ended December 31, 2013		Three months ended December 31, 2012
Weighted average common shares outstanding, less treasury stock		953,193,946		952,324,598
Dilutive effect of:
Stock options		1,102,548		958,077

Weighted average diluted common shares outstanding		954,296,494		953,282,675


	Yen
	Three months ended December 31, 2013		Three months ended December 31, 2012
Net income attributable to Komatsu Ltd. per share:
Basic	¥	38.32	¥	26.23
Diluted	¥	38.28	¥	26.21

1)21 ~~Changes resulting from revisions in accounting standards, etc.: Applicable~~

~~From 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”~~9. ~~This~~Contingent ~~adoption~~Liabilities ~~did not have any impact on Komatsu’s financial position and results of operations.~~

2)At ~~Changes~~December 31, in2013 ~~other~~and ~~matters~~at ~~except~~March 31, 2013, Komatsu was contingently liable for 1)discounted ~~above:~~and ~~Applicable~~transferred receivables on a recourse basis with the financial institutions of ¥314 million and ¥406 million, respectively.

~~The~~Komatsu ~~company~~provides ~~and~~guarantees ~~some~~to third parties of ~~its~~loans ~~consolidated~~of ~~subsidiaries~~the employees, ~~which~~affiliated ~~had~~companies, ~~adopted~~customers and other companies. The guarantees of loans relating to the ~~declining~~employees ~~balance~~are ~~method~~mainly made for ~~depreciation~~their ofhousing ~~property,~~loans. ~~plant~~The ~~and~~guarantees ~~equipment~~of ~~changed~~loans relating to the ~~depreciation~~affiliated ~~method~~companies, tocustomers ~~the~~and ~~straight-line~~other ~~method~~companies are ~~beginning~~made ~~April~~to 1,enhance ~~2013~~the credit of those companies.

~~Komatsu~~For ~~promotes~~each ~~continuous~~guarantee ~~innovation~~provided, ofKomatsu ~~technologies~~would byhave ~~concentrating~~to ~~the production~~perform ofunder ~~high-value~~a ~~added and technologically important key components in Japan~~guarantee, ~~and~~if ~~also~~the ~~undertakes~~borrower ~~integrated~~defaults on ~~development~~a ~~and~~payment ~~production~~within ~~under~~ the ~~Mother~~contract ~~Plant system~~terms. AsThe acontract ~~general~~terms ~~rule,~~are ~~Komatsu~~from ~~engages~~10 inyears ~~local~~to ~~production~~30 years in ~~different parts of~~ the ~~world~~case ~~where~~of ~~there~~employees iswith ~~sufficient~~housing ~~market~~loans, ~~demand~~and ~~for~~from ~~its~~1 ~~products.~~year ~~With respect~~ to ~~mainstay~~11 ~~products,~~years ~~however,~~in ~~Komatsu~~the ~~has~~case ~~facilitated effective use~~ of ~~its~~loans ~~global~~relating ~~production~~to ~~capacities~~the byaffiliated ~~cross~~companies, ~~sourcing~~customers ~~finished~~and ~~products after producing them at~~other ~~its~~companies. ~~most~~The ~~cost-effective~~maximum ~~plants~~amount ~~and exporting them in light~~ of ~~changes~~undiscounted inpayments ~~market demand and foreign exchange rate.~~ Komatsu iswould ~~establishing~~have ~~its~~had ~~production~~to ~~efficiency,~~make ~~standardization~~in ofthe ~~production~~event ~~and stable operation~~ of ~~production~~default ~~facilities~~was ~~through renewing~~¥78,879 million ~~its~~and ~~old~~¥94,776 ~~factory~~million ~~buildings~~at ~~in Japan~~December 31, ~~reassessing~~2013 ~~logistics~~ and ~~reforming production process by technology innovation as well as cutting down electric power consumption to half~~ at ~~its~~March 31, ~~plants~~2013, ~~in Japan~~respectively. ~~With~~The ~~respect~~fair tovalue ~~capital investment,~~of ~~Komatsu~~the ~~continues~~liabilities torecognized ~~invest~~for inKomatsu’s ~~its~~obligations ~~production~~as ~~facilities~~guarantors ~~for~~under ~~renovation~~those guarantees at aDecember 31, ~~constant~~2013 ~~level~~was insignificant. InCertain ~~light~~ of those ~~activities,~~guarantees ~~Komatsu~~were ~~expects~~secured ~~stable~~by ~~production~~collateral and ~~facility~~insurance ~~utilization~~issued ~~within its production capacity, and is able~~ to ~~receive~~the ~~economic benefits from those facilities at a constant rate throughout their durable periods~~Company.

9Management of Komatsu believes that losses from those contingent liabilities, if any, would not have a material effect on the consolidated financial statements.

~~Table~~Komatsu is involved in certain legal actions and claims arising in the ordinary course of ~~Contents~~its business. It is the opinion of management and legal counsel that such litigation and claims will be resolved without material effect on Komatsu’s financial statements.

AsKomatsu ahas ~~result~~business activities ofwith ~~reviewing~~customers, dealers and associates around the world and its ~~depreciation~~trade ~~method,~~receivables ~~Komatsu~~from ~~concluded~~such ~~that~~parties and the ~~straight-line~~ ~~method~~guarantees ~~would~~for bethem anare ~~appropriate~~well ~~depreciation~~diversified ~~method~~ to ~~reflect~~minimize ~~its~~concentrations ~~usage~~ of ~~property,~~credit ~~plants~~risks. ~~and~~Management ~~equipment~~does ~~and~~not toanticipate ~~allocate~~incurring losses ~~the~~on ~~costs~~its trade receivables in ~~earnings~~excess of established allowances.

~~The~~22 effect of the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification (ASC) 250 “Accounting Changes and Error Corrections”.

~~As a result of the change in depreciation method, depreciation expense for the nine months ended December 31, 2013 decreased by approximately JPY8~~10.6 ~~billion.~~Derivative ~~Net~~Financial ~~Income~~Instruments attributable to Komatsu Ltd. for the nine months ended December 31, 2013 increased by approximately JPY5.3 billion. Basic and Diluted net income attributable to Komatsu Ltd. per common share for the nine months ended December 31, 2013 increased by JPY5.62, and JPY5.61, respectively.

~~Cautionary~~Notional ~~Statement~~principal amounts of derivative financial instruments outstanding at December 31, 2013 and at March 31, 2013 are as follows:

The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.


	Millions of yen
	December 31, 2013		March 31, 2013
Forwards:
Sale of foreign currencies	¥	116,321	¥	130,060
Purchase of foreign currencies		48,048		39,904
Interest rate swaps, cross-currency swaps and interest rate cap agreements		91,305		103,182

~~Factors~~Fair ~~that~~value ~~may~~of ~~cause~~derivative ~~actual~~instruments ~~results~~at ~~to differ materially from those predicted by such forward-looking statements include~~December 31, ~~but~~2013 ~~are~~and ~~not~~at ~~limited to~~March 31, ~~unanticipated~~2013 ~~changes~~on ~~in demand for~~ the ~~Company’s~~consolidated ~~principal~~balance ~~products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange~~sheets ~~rates~~are 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 tofollows ~~the~~(Notes ~~results~~11 ~~of the Company’s research~~ and ~~development~~12): ~~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
	December 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	¥	—	Deferred income taxes and other current liabilities	¥	2,281
	Deferred income taxes and other assets		—	Deferred income taxes and other liabilities		7,590
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		15	Deferred income taxes and other current liabilities		677

Total		¥	15		¥	10,548


	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	¥	938	Deferred income taxes and other current liabilities	¥	2,717
	Deferred income taxes and other assets		1	Deferred income taxes and other liabilities		—
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Deferred income taxes and other current assets		312	Deferred income taxes and other current liabilities		791
	Deferred income taxes and other assets		—	Deferred income taxes and other liabilities		284

Total		¥	1,251		¥	3,792

Total Derivative Instruments		¥	1,266		¥	14,340

~~Table~~23 ~~of Contents~~

Consolidated Financial Statements


	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

~~(1)~~24 ~~Consolidated Balance Sheets~~

~~Assets~~The effects of derivative instruments on the consolidated statements of income and consolidated statements of comprehensive income for the nine months ended December 31, 2013 and 2012 are as follows:

~~Millions~~Derivative ofinstruments ~~yen~~designated as cash flow hedging relationships

	As of December 31, 2013					As of March 31, 2013
	Millions of yen
				Ratio (%)					Ratio (%)
	Nine months endedDecember 31, 2013
Current assets
	Effective portion								Ineffective portion andamount excluded fromeffectiveness testing
Cash and cash equivalents	¥	110,890				¥	93,620
	Amount ofgains (losses)recognizedin OCI onderivatives			Location of gains(losses)reclassifiedfrom accumulatedOCI into income		Amount ofgains (losses)reclassifiedfromaccumulatedOCI into income			Location ofgains (losses)recognized inincome onderivatives		Amount ofgains (losses)recognizedin income onderivatives
Time deposits		132					217
Forwards contracts	¥	(11,218	)		Otherincome(expenses),net: Other,net	¥	(11,454	)		—	¥	—
Trade notes and accounts receivable, net		591,975					606,904
Interest rate swaps, cross-currency swaps and interest rate cap agreements		307			—		—			—		—
Inventories		728,217					633,647
Total	¥	(10,911	)			¥	(11,454	)			¥	—
Deferred income taxes and other current assets		171,164					157,668
	Millions of yen
Total current assets		1,602,378			58.9		1,492,056			59.3
	Nine months endedDecember 31, 2012
Long-term trade receivables, net		251,320			9.2		235,825			9.4
	Effective portion								Ineffective portion andamount excluded fromeffectiveness testing
Investments
	Amount ofgains (losses)recognizedin OCI onderivatives			Location of gains(losses)reclassified fromaccumulated OCIinto income		Amount of gains(losses)reclassifiedfromaccumulatedOCI into income			Location ofgains (losses)recognized inincome onderivatives		Amount ofgains (losses)recognizedin income onderivatives
Investments in and advances to affiliated companies		20,403					19,404
Forwards contracts	¥	(2,317	)		Otherincome(expenses),net: Other,net	¥	(2,923	)		—	¥	—
Investment securities		69,572					59,279
Interest rate swaps, cross-currency swaps and interest rate cap agreements		(558	)		—		—			—		—
Other		2,111					2,574
Total	¥	(2,875	)			¥	(2,923	)			¥	—
Total investments		92,086			3.4		81,257			3.2
Property, plant and equipment
- less accumulated depreciation and amortization		645,957			23.7		585,220			23.2
Goodwill		36,124			1.3		34,703			1.4
Other intangible assets		58,798			2.2		58,523			2.3
- less accumulated amortization
Deferred income taxes and other assets		34,691			1.3		30,273			1.2
Total	¥	2,721,354			100.0	¥	2,517,857			100.0

11OCI stands for other comprehensive income (loss).

~~Table~~25 ~~of Contents~~

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

Millions of yen


	Millions of yen
	Nine months ended December 31, 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	¥	(1,780	)
Option contracts	Other income (expenses), net: Other, net		(0	)
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		172
	Other income (expenses), net: Other, net		170

Total		¥	(1,438	)


	Millions of yen
	Nine months ended December 31, 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	¥	(2,748	)
Option contracts	Other income (expenses), net: Other, net		(4	)
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales		(55	)
	Other income (expenses), net: Other, net		(921	)

Total		¥	(3,728	)

	As of December 31, 2013					As of March 31, 2013
				Ratio (%)					Ratio (%)
Current liabilities
Short-term debt	¥	254,988				¥	205,156
Current maturities of long-term debt		108,536					130,793
Trade notes, bills and accounts payable		234,886					226,275
Income taxes payable		25,411					33,227
Deferred income taxes and other current liabilities		232,384					232,125
Total current liabilities		856,205			31.5		827,576			32.8
Long-term liabilities
Long-term debt		341,133					343,814
Liability for pension and retirement benefits		51,598					49,912
Deferred income taxes and other liabilities		54,773					43,860
Total long-term liabilities		447,504			16.4		437,586			17.4
Total liabilities		1,303,709			47.9		1,265,162			50.2
Komatsu Ltd. shareholders’ equity
Common stock		67,870					67,870
Capital surplus		139,370					138,818
Retained earnings:
Appropriated for legal reserve		39,944					38,230
Unappropriated		1,097,588					1,034,504
Accumulated other comprehensive income (loss)		52,021					(43,440	)
Treasury stock		(42,211	)				(42,788	)
Total Komatsu Ltd. shareholders’ equity		1,354,582			49.8		1,193,194			47.4
Noncontrolling interests		63,063			2.3		59,501			2.4
Total equity		1,417,645			52.1		1,252,695			49.8
Total	¥	2,721,354			100.0	¥	2,517,857			100.0

The effects of derivative instruments on the consolidated statements of income and consolidated statements of comprehensive income for the three months ended December 31, 2013 and 2012 are as follows:

1226

~~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 December 31, 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	¥	(6,194	)		Other income (expenses), net: Other, net	¥	(5,288	)		—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		197			—		—			—		—

Total	¥	(5,997	)			¥	(5,288	)			¥	—


	Millions of yen
	Three months ended December 31, 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	¥	(8,065	)		Other income (expenses), net: Other, net	¥	(5,657	)		—	¥	—
Interest rate swaps, cross-currency swaps and interest rate cap agreements		(363	)		—		—			—		—

Total	¥	(8,428	)			¥	(5,657	)			¥	—

~~Nine~~OCI ~~months~~stands ~~ended~~for ~~December 31,~~other ~~2013~~comprehensive ~~and~~income ~~2012~~(loss).

~~Consolidated~~27 ~~Statements of Income~~

~~Millions~~Derivative ofinstruments ~~yen~~not ~~except~~designated ~~per~~as ~~share~~hedging ~~amounts~~instruments relationships

	Nine Months endedDecember 31, 2013							Nine Months endedDecember 31, 2012
	Millions of yen
					Ratio(%)						Ratio(%)
	Three months ended December 31, 2013
Net sales	¥	1,389,514				100.0		¥	1,350,578			100.0
	Location of gains (losses) recognized in income on derivatives		Amount of gains (losses) recognizedin income on derivatives
Cost of sales		991,363				71.3			986,846			73.1
Forwards contracts	Other income (expenses), net: Other, net		¥	(1,755	)
Selling, general and administrative expenses		234,442				16.9			212,663			15.7
Option contracts	Other income (expenses), net: Other, net			—
Other operating income (expenses), net		1,923				0.1			(578	)		(0.0	)
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales			50
Operating income		165,632				11.9			150,491			11.1
	Other income (expenses), net: Other, net			48
Other income (expenses), net
Total			¥	(1,657	)
Interest and dividend income		3,060				0.2			3,209			0.2
	Millions of yen
Interest expense		(6,634	)			(0.5	)		(6,155	)		(0.5	)
	Three months ended December 31, 2012
Other, net		8,073				0.6			(1,957	)		(0.1	)
	Location of gains (losses) recognized in income on derivatives		Amount of gains (losses) recognizedin income on derivatives
Total other income (expenses)		4,499				0.3			(4,903	)		(0.4	)
Forwards contracts	Other income (expenses), net: Other, net		¥	(3,193	)
Income before income taxes and equity in earnings of affiliated companies		170,131				12.2			145,588			10.8
Option contracts	Other income (expenses), net: Other, net			(3	)
Income taxes		49,534				3.6			48,258			3.6
Interest rate swaps, cross-currency swaps and interest rate cap agreements	Cost of sales			(34	)
Income before equity in earnings of affiliated companies		120,597				8.7			97,330			7.2
	Other income (expenses), net: Other, net			(313	)
Equity in earnings of affiliated companies		1,633				0.1			1,007			0.1
Total			¥	(3,543	)
Net income		122,230				8.8			98,337			7.3
Less: Net income attributable to noncontrolling interests		6,893				0.5			7,241			0.5
Net income attributable to Komatsu Ltd.	¥	115,337				8.3		¥	91,096			6.7
Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	121.01						¥	95.66
Diluted	¥	120.88						¥	95.57

1328

~~Table~~11. Fair Values of ~~Contents~~Financial Instruments

~~Consolidated~~(1) ~~Statements~~Cash ofand ~~Comprehensive~~cash ~~Income~~equivalents, Time deposits, Trade notes and accounts receivable, Other current assets, Short-term debt, Trade notes, bills and accounts payables, and Other current liabilities

~~Millions~~The carrying amount approximates fair value because of ~~yen~~the short maturity of these instruments.

	Nine Months endedDecember 31, 2013		Nine Months endedDecember 31, 2012
Net income	¥	122,230	¥	98,337
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments		89,561		36,186
Net unrealized holding gains (losses) on securities available for sale		8,171		125
Pension liability adjustments		832		1,611
Net unrealized holding gains (losses) on derivative instruments		361		(18	)
Total		98,925		37,904
Comprehensive income (loss)		221,155		136,241
Less: Comprehensive income (loss) attributable to noncontrolling interests		10,378		9,442
Comprehensive income (loss) attributable to Komatsu Ltd.	¥	210,777	¥	126,799

(2) Investment securities, marketable equity securities

14The 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.

~~Table~~(3) ofLong-term ~~Contents~~trade receivables

~~Three~~The ~~months~~fair ~~ended~~values ~~December 31~~of long-term trade receivables are based on the present value of future cash flows through maturity, ~~2013~~discounted ~~and~~using ~~2012~~estimated current interest rates. The fair values computed on such a basis approximate the carrying amounts.

~~Consolidated~~(4) ~~Statements~~Long-term ofdebt, ~~Income~~including current portion (Note 12)

~~Millions~~The fair values of ~~yen~~each ~~except~~of ~~per~~the ~~share~~long-term ~~amounts~~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.

	Three Months endedDecember 31, 2013						Three Months ended December 31, 2012
				Ratio(%)						Ratio(%)
Net sales	¥	464,393			100.0		¥	419,729			100.0
Cost of sales		330,822			71.2			308,761			73.6
Selling, general and administrative expenses		78,955			17.0			71,179			17.0
Other operating income (expenses), net		2,070			0.4			(562	)		(0.1	)
Operating income		56,686			12.2			39,227			9.3
Other income (expenses), net
Interest and dividend income		774			0.2			941			0.2
Interest expense		(2,271	)		(0.5	)		(1,649	)		(0.4	)
Other, net		2,481			0.5			1,685			0.4
Total other income (expenses)		984			0.2			977			0.2
Income before income taxes and equity in earnings of affiliated companies		57,670			12.4			40,204			9.6
Income taxes		19,414			4.2			13,542			3.2
Income before equity in earnings of affiliated companies		38,256			8.2			26,662			6.4
Equity in earnings of affiliated companies		689			0.1			439			0.1
Net income		38,945			8.4			27,101			6.5
Less: Net income attributable to noncontrolling interests		2,418			0.5			2,117			0.5
Net income attributable to Komatsu Ltd.	¥	36,527			7.9		¥	24,984			6.0
Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	38.32					¥	26.23
Diluted	¥	38.28					¥	26.21

(5) Derivatives (Notes 10 and 12)

15The 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.

~~Table~~29 ~~of Contents~~

~~Consolidated~~The ~~Statements~~carrying amounts and the estimated fair values of ~~Comprehensive~~the ~~Income~~financial instruments, including financial instruments not qualifying as hedge, at December 31, 2013 and at March 31, 2013, are summarized as follows:

Millions of yen


	Millions of yen
	December 31, 2013				March 31, 2013
	Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Cash and cash equivalents	¥	110,890	¥	110,890	¥	93,620	¥	93,620
Time deposits		132		132		217		217
Trade notes and accounts receivable, net		591,975		591,975		606,904		606,904
Long-term trade receivables, net		251,320		251,320		235,825		235,825
Investment securities, marketable equity securities		61,287		61,287		50,954		50,954
Short-term debt		254,988		254,988		205,156		205,156
Trade notes, bills and accounts payable		234,886		234,886		226,275		226,275
Long-term debt, including current portion		449,669		440,489		474,607		469,444
Derivatives:
Forwards contracts
Assets		939		939		507		507
Liabilities		12,588		12,588		10,023		10,023
Interest rate swaps, cross-currency swaps and interest rate cap agreements
Assets		327		327		332		332
Liabilities		1,752		1,752		2,126		2,126

	Three Months endedDecember 31, 2013			Three Months endedDecember 31, 2012
Net income	¥	38,945		¥	27,101
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments		66,293			80,008
Net unrealized holding gains (losses) on securities available for sale		4,378			6,638
Pension liability adjustments		330			409
Net unrealized holding gains (losses) on derivative instruments		(423	)		(1,398	)
Total		70,578			85,657
Comprehensive income (loss)		109,523			112,758
Less: Comprehensive income (loss) attributable to noncontrolling interests		6,060			7,250
Comprehensive income (loss) attributable to Komatsu Ltd.	¥	103,463		¥	105,508

Limitations

16Fair 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.

~~Table~~30 ~~of Contents~~

~~(3)~~12. ~~Consolidated~~Fair ~~Statements~~value ofmeasurements ~~Cash Flows~~

~~Millions~~ASC 820, “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 ~~yen~~inputs used to measure fair value are as follows:

	Nine Months endedDecember 31, 2013			Nine Months endedDecember 31, 2012
Level 1 –	Quoted prices in active markets for identical assets or liabilities
Operating activities
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly
Net income	¥	122,230		¥	98,337
Level 3 –	Unobservable inputs for the assets or liabilities
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		64,028			64,597
Deferred income taxes		6,588			1,219
Impairment loss and net loss (gain) from sale of investment securities		(1,605	)		97
Net loss (gain) on sale of property		(4,329	)		(435	)
Loss on disposal of fixed assets		2,271			1,045
Pension and retirement benefits, net		1,645			569
Changes in assets and liabilities:
Decrease (increase) in trade receivables		61,729			59,788
Decrease (increase) in inventories		(36,017	)		(16,669	)
Increase (decrease) in trade payables		(1,570	)		(71,360	)
Increase (decrease) in income taxes payable		(8,579	)		(7,225	)
Other, net		(17,397	)		(875	)
Net cash provided by (used in) operating activities		188,994			129,088
Investing activities
Capital expenditures		(130,987	)		(104,356	)
Proceeds from sale of property		19,776			6,402
Proceeds from sale of available for sale investment securities		4,332			595
Purchases of available for sale investment securities		(35	)		(11	)
Acquisition of subsidiaries and equity investees, net of cash acquired		(4,539	)		(5,752	)
Collection of loan receivables		225			613
Disbursement of loan receivables		(16	)		(50	)
Decrease (increase) in time deposits, net		860			788
Net cash provided by (used in) investing activities		(110,384	)		(101,771	)
Financing activities
Proceeds from debt issued (Original maturities greater than three months)		153,316			286,620
Payment on debt (Original maturities greater than three months)		(167,531	)		(268,534	)
Short-term debt—net (Original maturities three months or less)		10,870			21,914
Repayments of capital lease obligations		(2,552	)		(5,057	)
Sale (purchase) of treasury stock, net		(26	)		44
Dividends paid		(50,539	)		(42,877	)
Other, net		(6,068	)		(7,002	)
Net cash provided by (used in) financing activities		(62,530	)		(14,892	)
Effect of exchange rate change on cash and cash equivalents		1,190			(503	)
Net increase (decrease) in cash and cash equivalents		17,270			11,922
Cash and cash equivalents, beginning of year		93,620			83,079
Cash and cash equivalents, end of period	¥	110,890		¥	95,001

1731

~~Table~~Assets ofand ~~Contents~~liabilities that are measured at fair value on a recurring basis

~~(4)~~The ~~Note~~fair tovalue ~~the~~hierarchy ~~Going~~levels ~~Concern~~of ~~Assumption~~assets and liabilities that are measured at fair value on a recurring basis at December 31, 2013 and at March 31, 2013 are as follows:

None


	Millions of yen
At December 31, 2013	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
Manufacturing industry	¥	31,953	¥	—	¥	—	¥	31,953
Financial service industry		24,769		—		—		24,769
Other		4,565		—		—		4,565
Derivatives
Forward contracts		—		939		—		939
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		327		—		327

Total	¥	61,287	¥	1,266	¥	—	¥	62,553

Liabilities
Derivatives
Forward contracts	¥	—	¥	12,588	¥	—	¥	12,588
Interest rate swaps, cross-currency swaps and interest rate cap agreements		—		1,752		—		1,752
Other		—		116,667		553		117,220

Total	¥	—	¥	131,007	¥	553	¥	131,560


	Millions of yen
At 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

~~(5)~~Investment ~~Business Segment~~securities ~~Information~~available for sale

Marketable equity securities are classified in Level 1) ~~Information~~in bythe ~~Operating~~fair ~~Segments~~value hierarchy. Marketable equity securities are measured using a market approach based on the quoted market prices in active markets.

~~Nine~~32 ~~Months ended December 31, 2013 and 2012~~

Derivatives (~~For~~Notes ~~Nine~~10 ~~Months~~and ~~ended December 31, 2013~~11)

~~Millions~~Derivatives primarily represent foreign exchange contracts and interest rate swap agreements. The fair value of ~~yen~~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.

	Construction,Mining andUtility Equipment		IndustrialMachinery andOthers		Subtotal		Corporate &elimination			Total
Net sales:
Customers		1,248,856		140,658		1,389,514		—			1,389,514
Intersegment		1,939		4,245		6,184		(6,184	)		—
Total		1,250,795		144,903		1,395,698		(6,184	)		1,389,514
Segment profit		164,124		1,122		165,246		(1,537	)		163,709

Other

~~(For~~Other ~~Nine~~primarily ~~Months~~represents ~~ended~~loans ~~December~~which 31are measured at fair value under the Fair Value Option of ASC 825, ~~2012)~~“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		1,205,655		144,923		1,350,578		—			1,350,578
Intersegment		1,959		5,703		7,662		(7,662	)		—
Total		1,207,614		150,626		1,358,240		(7,662	)		1,350,578
Segment profit		148,381		3,824		152,205		(1,136	)		151,069

The following table summarizes information about changes of Level 3 for the nine months ended December 31, 2013 and 2012

Three Months ended December 31, 2013 and 2012


	Millions of yen
	Nine months ended December 31, 2013			Nine months ended December 31, 2012
Balance, beginning of year	¥	(639	)	¥	(752	)
Total gains or losses (realized / unrealized)		86			158
Included in earnings		153			183
Included in other comprehensive income (loss)		(67	)		(25	)

Balance, end of period	¥	(553	)	¥	(594	)

~~(For~~The ~~Three~~amounts ~~Months~~of ~~ended~~unrealized gains on classified in Level 3 liabilities recognized in earnings for the nine months ended December 31, 2013 and 2012 related to liabilities still held at December 31, 2013 and 2012 were gains of ¥153 million and gains of ¥183 million, respectively. These gains were reported in other income (expenses), ~~Millions~~net of ~~yen~~the consolidated statements of income.

	Construction,Mining andUtility Equipment		IndustrialMachinery andOthers			Subtotal		Corporate &elimination			Total
Net sales:
Customers		420,081		44,312			464,393		—			464,393
Intersegment		643		992			1,635		(1,635	)		—
Total		420,724		45,304			466,028		(1,635	)		464,393
Segment profit		58,331		(3,686	)		54,645		(29	)		54,616

The following table summarizes information about changes of Level 3 for the three months ended December 31, 2013 and 2012

(For Three Months ended December 31, 2012) Millions of yen


	Millions of yen
	Three months ended December 31, 2013			Three months ended December 31, 2012
Balance, beginning of period	¥	(572	)	¥	(572	)
Total gains or losses (realized / unrealized)		19			(22	)
Included in earnings		61			40
Included in other comprehensive income (loss)		(42	)		(62	)

Balance, end of period	¥	(553	)	¥	(594	)

	Construction,Mining andUtility Equipment		IndustrialMachinery andOthers		Subtotal		Corporate &elimination			Total
Net sales:
Customers		367,987		51,742		419,729		—			419,729
Intersegment		477		1,685		2,162		(2,162	)		—
Total		368,464		53,427		421,891		(2,162	)		419,729
Segment profit		38,800		523		39,323		466			39,789

The amounts of unrealized gains on classified in Level 3 liabilities recognized in earnings for the three months ended December 31, 2013 and 2012 related to liabilities still held at December 31, 2013 and 2012 were gains of ¥61 million and gains of ¥40 million, respectively. These gains were reported in other income (expenses), net of the consolidated statements of income.

18Assets and liabilities that are measured at fair value on a non-recurring basis

~~Table~~During ofnine ~~Contents~~months ended December 31, 2013 and 2012 assets and liabilities that were measured at fair value on a non-recurring basis were not material.

~~Notes:~~33 ~~1) Business categories and principal products & services included in each operating segment are as follows:~~

a)13. ~~Construction,~~Committed ~~Mining~~Credit ~~and~~lines ~~Utility Equipment~~

~~Excavating~~Certain ~~equipment,~~consolidated ~~loading~~subsidiaries ~~equipment,~~have entered into contract with certain financial institutions for committed credit lines. These total amounts of committed ~~grading &~~credit ~~roadbed~~lines ~~preparation~~at ~~equipment~~December 31, ~~hauling~~2013 ~~equipment,~~and ~~forestry~~at ~~equipment~~March 31, ~~tunneling~~2013 ~~machines~~were ¥39,985 ~~recycling~~million ~~equipment~~and ¥49,997 ~~industrial vehicles~~million, ~~other~~respectively. ~~equipment,~~These ~~engines~~total amounts of unused committed credit lines available for full and immediate borrowings at December &31, 2013 ~~components~~and at March 31, ~~casting~~2013 ~~products~~were ¥16,345 million and ~~logistics~~¥14,738 million, respectively.

b)34 ~~Industrial Machinery and Others~~

~~Metal~~14. ~~forging &~~Dividends ~~stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment, and others~~

2)Nine ~~Transfers~~months ~~between~~ended ~~segments~~December 31, ~~are~~2013 ~~made at estimated arm’s-length prices.~~

2)Payment amount ~~Geographic~~of ~~Information~~ dividends

Net sales determined by customer location were as follows:

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 19, 2013

Common

stock

22,879

Retained

earnings

March 31,
2013

June 20,
2013

Board of Directors held on October 28, 2013

Common

stock

27,658

Retained

earnings

September
30, 2013

November
29, 2013

~~For~~ Nine ~~Months~~months ended December 31, ~~2013 and~~ 2012

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

	Japan		Americas		Europe &CIS		China		Asia* &Oceania		Middle East& Africa		Total
Resolution	Type ofstock		Aggregateamount ofdividends(Millions of yen)		Resource ofdividends		Dividendper share(Yen)		Record date		Effective date
FY2013		310,145		408,234		143,417		130,703		283,272		113,743		1,389,514
Ordinary general meeting of shareholders held on June 20, 2012		Common stock		20,008		Retained earnings		21		March 31,2012		June 21,2012
FY2012		271,095		393,258		149,208		109,331		338,221		89,465		1,350,578
Board of Directors held on October 30, 2012		Common stock		22,868		Retained earnings		24		September30, 2012		November30, 2012

~~For~~The ~~Three~~amount ~~Months~~is ~~ended~~rounded ~~December 31,~~down ~~2013~~to ~~and~~nearest ~~2012~~million yen.

~~Millions~~35 ~~of yen~~

	Japan		Americas		Europe &CIS		China		Asia* &Oceania		Middle East& Africa		Total
FY2013		116,537		135,376		47,238		42,981		84,994		37,267		464,393
FY2012		92,179		124,821		49,636		34,000		91,447		27,646		419,729

15. Business Segment and Geographic Information

*Komatsu ~~Excluding~~has ~~Japan~~two operating segments: 1) Construction, Mining and ~~China~~Utility Equipment, and 2) Industrial Machinery and Others.

~~(6)~~The ~~Note~~accounting inpolicies ~~Case~~used ofby ~~Notable~~the ~~Changes~~segments are the same as those used in the ~~Amount~~preparation of ~~Shareholders’~~ ~~Equity~~the quarterly consolidated financial statements.

~~None~~Segment profit is determined by subtracting the cost of sales and selling, general and administrative expenses from net sales attributed to the operating segment. Segment profit excludes certain general corporate administration and finance expenses, such as costs of executive management, corporate development, corporate finance, human resources, internal audit, investor relations, legal and public relations. Segment profit also excludes certain charges which may otherwise relate to operating segments, including impairments of long lived assets and goodwill.

~~(7)~~Operating ~~Others~~segments:

In the Consolidated Statements of Cash Flow, Komatsu disclosed its cash flow of short-term debt in financing activities on a net amount basis in the nine months ended December 31, 2012. Komatsu discloses its cash flow on a net amount basis for the debts whose original maturities are three months or less in the nine months ended December 31, 2013. The Consolidated Statements of Cash Flow for the nine months ended December 31, 2012 have been re-presented to be consistent with the December 31, 2013 presentation. This change does not have any impact on the reported total cash flow from financing activities.


	Millions of yen
	Nine months ended December 31, 2013			Nine months ended December 31, 2012
Net sales:
Construction, Mining and Utility Equipment—
External customers	¥	1,248,856		¥	1,205,655
Intersegment		1,939			1,959

Total		1,250,795			1,207,614
Industrial Machinery and Others—
External customers		140,658			144,923
Intersegment		4,245			5,703

Total		144,903			150,626
Elimination		(6,184	)		(7,662	)

Consolidated	¥	1,389,514		¥	1,350,578

Segment profit:
Construction, Mining and Utility Equipment	¥	164,124		¥	148,381
Industrial Machinery and Others		1,122			3,824

Total segment profit		165,246			152,205
Corporate expenses and elimination		(1,537	)		(1,136	)

Total		163,709			151,069
Other operating income (expenses), net		1,923			(578	)
Operating income		165,632			150,491
Interest and dividend income		3,060			3,209
Interest expense		(6,634	)		(6,155	)
Other, net		8,073			(1,957	)

Consolidated income before income taxes and equity in earnings of affiliated companies	¥	170,131		¥	145,588

~~(end)~~36


	Millions of yen
	Three months ended December 31, 2013			Three months ended December 31, 2012
Net sales:
Construction, Mining and Utility Equipment—
External customers	¥	420,081		¥	367,987
Intersegment		643			477

Total		420,724			368,464
Industrial Machinery and Others—
External customers		44,312			51,742
Intersegment		992			1,685

Total		45,304			53,427
Elimination		(1,635	)		(2,162	)

Consolidated	¥	464,393		¥	419,729

Segment profit:
Construction, Mining and Utility Equipment	¥	58,331		¥	38,800
Industrial Machinery and Others		(3,686	)		523

Total segment profit		54,645			39,323
Corporate expenses and elimination		(29	)		466

Total		54,616			39,789
Other operating income (expenses), net		2,070			(562	)
Operating income		56,686			39,227
Interest and dividend income		774			941
Interest expense		(2,271	)		(1,649	)
Other, net		2,481			1,685

Consolidated income before income taxes and equity in earnings of affiliated companies	¥	57,670		¥	40,204

~~Table~~Business ofcategories ~~Contents~~and principal products and services included in each operating segment are as follows:

~~For~~a. ~~Immediate~~Construction, ~~Release~~Mining and Utility Equipment:

~~Komatsu~~Excavating ~~Ltd.~~equipment, ~~Corporate~~loading ~~Communications~~equipment, ~~Dept.~~grading ~~Tel:~~and ~~+81-(0)3-5561-2616~~roadbed ~~Date:~~preparation ~~January~~equipment, 29hauling equipment, ~~2014~~forestry ~~URL:~~equipment, ~~http://www.komatsu.com~~tunneling machines, recycling equipment, industrial vehicles, other equipment, engines and components, casting products and logistics

~~Komatsu~~b. toIndustrial ~~apply~~Machinery and ~~for~~Others: ~~termination of registration with the U.S. Securities~~

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

~~Komatsu~~Transfers ~~Ltd. (hereinafter~~between ~~the~~segments ~~“Company”)~~are ~~(President~~made ~~and CEO: Tetsuji Ohashi) hereby announces that~~ at ~~the~~estimated ~~meeting~~arm’s-length ~~of the Board of Directors held today, the Company resolved to apply for a termination of its registration with the U~~prices.S. ~~Securities and Exchange Commission (the “SEC”) and its reporting obligations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as below.~~

1.37 ~~Reason for termination~~

~~The~~Geographic ~~Company issued~~information: ~~convertible bonds in the United States through a public offering registered with the SEC in 1967 for the purpose of raising capital, and has since maintained its registration with the SEC.~~

~~Since~~Net ~~then,~~sales ~~the~~determined ~~Company has diversified its financing methods, such as through the Euro Medium Term Note Program, and enhanced the efficiency of its funding operation~~ by ~~implementing~~customer ~~the~~location ~~Cash~~for ~~Management System. In addition,~~ the ~~external~~nine ~~environment~~months ~~has~~ended ~~changed considerably~~December 31, ~~such~~2013 ~~as an increase in trading of stocks on Japanese stock exchange markets by foreign investors due to the globalization of Japanese financial~~ and ~~capital~~2012 ~~markets,~~are ~~and~~as ~~the~~follows: ~~lessening of disparity in the standards of disclosure and internal controls between the United States and Japan due to a series of amendments to Japanese laws, regulations and accounting standards.~~

The Company has determined that in this environment, there is no need to continue its registration with the SEC. Therefore, the Company has decided to apply for the termination of its registration.


	Millions of yen
	Nine months ended December 31, 2013		Nine months ended December 31, 2012
Japan	¥	310,145	¥	271,095
The Americas		408,234		393,258
Europe and CIS		143,417		149,208
China		130,703		109,331
Asia (excluding Japan and China) and Oceania		283,272		338,221
Middle East and Africa		113,743		89,465

Consolidated net sales	¥	1,389,514	¥	1,350,578

2.Net ~~Schedule~~sales determined by customer location for the three months ended December 31, 2013 and 2012 are as follows:

Early April 2014:	The Company will file the Form 15F with the SEC to terminate its reporting obligations under the Exchange Act. As a result of filing the Form 15F, the Company’s reporting obligations under the Exchange Act will be suspended.
	Millions of yen
Early July 2014:	Deregistration with the SEC will become effective, terminating the Company’s reporting obligations under the Exchange Act. The schedule may be changed upon the SEC’s objection or request for an extended review.
	Three months endedDecember 31, 2013		Three months endedDecember 31, 2012
Japan	¥	116,537	¥	92,179
The Americas		135,376		124,821
Europe and CIS		47,238		49,636
China		42,981		34,000
Asia (excluding Japan and China) and Oceania		84,994		91,447
Middle East and Africa		37,267		27,646
Consolidated net sales	¥	464,393	¥	419,729

1Net sales determined by geographic origin for the nine months ended December 31, 2013 and 2012 are as follows:


	Millions of yen
	Nine months ended December 31, 2013		Nine months ended December 31, 2012
Japan	¥	460,600	¥	445,435
U.S.A.		383,967		377,196
Europe and CIS		153,994		147,681
China		113,777		84,668
Others		277,176		295,598

Consolidated net sales	¥	1,389,514	¥	1,350,578

3.Net ~~Future~~sales ~~plans~~determined by geographic origin for the three months ended December 31, 2013 and 2012 are as follows:

While the Company’s reporting obligations under the Exchange Act (including the obligation to file annual reports on Form 20-F) will be terminated upon deregistration with the SEC, the Company will continue to prepare English consolidated financial statements in accordance with U.S. GAAP and disclose them on its website together with English translations of disclosures made pursuant to Japanese law and other important information, such as news releases in order to ensure comparability with prior disclosures. The Company will continue to make efforts to maintain and enhance its disclosure to all of its stakeholders, including shareholders and investors.


	Millions of yen
	Three months ended December 31, 2013		Three months ended December 31, 2012
Japan	¥	164,901	¥	144,317
U.S.A.		130,698		118,217
Europe and CIS		46,850		50,118
China		37,552		22,938
Others		84,392		84,139

Consolidated net sales	¥	464,393	¥	419,729

~~The~~Other ~~Company~~than ~~intends to maintain its American Depositary Receipt program~~ in ~~the~~Japan, ~~United~~U.S.A. ~~States even~~and ~~after deregistration~~China, ~~and~~no ~~therefore~~individual ~~anticipates~~country ~~that~~had ~~its~~a ~~American~~material ~~Depositary~~impact ~~Shares~~on ~~will~~net ~~continue~~sales to beexternal ~~traded in the United States on the over-the-counter market~~customers.

~~(end)~~There were no sales to a single major external customer for the nine months and three months ended December 31, 2013 and 2012.

238

16. Subsequent Event

There was no significant subsequent event to be disclosed.

KOMATSU LTD.

(Registrant)

Date: January 30, 2014

/S/ Mikio Fujitsuka

Mikio Fujitsuka

Director and Senior Executive Officer

Chief Financial Officer

Filing Compare · KOMATSU LTD