Komatsu Ltd. (President and CEO: Hiroyuki Ogawa) (hereafter “the Company”) does not disclose projections of non-consolidated business results. However, please be informed of the difference between non-consolidated business results for the fiscal year ended March 31, 2019 and those for the previous fiscal year as follows.
Please be also informed that the Board of Directors, in its meeting on April 26, 2019, resolved to propose at the 150th ordinary general shareholders’ meeting that the Company will change the latest projection of retained earnings with the record date of March 31, 2019 and pay dividends.
1. Difference between non-consolidated full-year results for the fiscal year ended March 31, 2019 and those for the previous fiscal year (April 1, 2018 to March 31, 2019）
[Reasons for the difference]
Concerning non-consolidated business results, sales of construction and mining equipment expanded sharply in Asia, and domestic sales were also brisk. As a result, both sales and profits improved from the previous fiscal year. Ordinary profit expanded sharply from the previous fiscal year, because the Company received special dividends from subsidiaries in the fiscal year under review. For the fiscal year under review, the gain on sale of investment securities declined from the previous fiscal year. As a result, the rate of growth of net income for the year was lower than that of ordinary profit.
2. Details of dividend
The Company is building a sound financial position as well as flexible and agile corporate strengths to increase its corporate value. Concerning the policy for cash dividends to shareholders, the Company redistributes profits by considering consolidated business results and continues to pay stable dividends. Specifically, we have set the goal of a consolidated payout ratio of 40% or higher and no reduction of dividends, as long as the consolidated payout ratio does not exceed 60%.
Under this basic policy, the Company plans to pay JPY59 per share for the year-end dividend, up JPY8 from the projection announced on October 29, 2018, after considering the business results for FY2018 and future business operations. As a result, annual cash dividends per share for FY2018 will amount to JPY110, an increase of JPY26 per share from FY2017 ended March 31, 2018. This dividend amount will be proposed to the 150th ordinary general meeting of shareholders scheduled for June 18, 2019.