FY2026 Six months

Corporate Communications Dept. Sustainability Promotion Division Tel: +81-(0)3-6849-9703

Date: October 29, 2026

URL: https://www.komatsu.jp/en

1. Results for Six Months Ended September 30, 2026

   (Amounts are rounded to the nearest million yen)

   1. Consolidated Financial Highlights

      Millions of yen except per share amounts

      	Six Months ended September 30, 2026	Six Months ended September 30, 2025	Changes Increase (Decrease)
      	[A]	[B]	[A-B]	[(A-B)/B]
      Net sales	2,158,639	1,891,587	267,052	14.1%
      Operating income	286,625	277,061	9,564	3.5%
      Income before income taxes and equity in earnings of affiliated companies	271,037	258,385	12,652	4.9%
      Net income attributable to Komatsu Ltd.	191,916	175,701	16,215	9.2%
      Net income attributable to Komatsu Ltd. per share (Yen) Basic	¥215.06	¥191.80 ¥191.80	¥23.26 ¥23.26
      Diluted ¥215.06

      Note: Comprehensive income for six months ended September 30, 2026 and 2025 2026: 154,857 millions of yen, down 31.9% from 2025

      2025: 227,551 millions of yen, up 124.3% from 2024

   2. Consolidated Financial Position

   Millions of yen except per share amounts

   	As of September 30, 2026	As of March 31, 2026
   Total assets	6,527,174	6,423,941
   Total equity	3,666,262	3,708,427
   Komatsu Ltd. shareholders' equity	3,469,999	3,510,768
   Komatsu Ltd. shareholders' equity ratio	53.2%	54.7%
   Komatsu Ltd. shareholders' equity per share (Yen)	¥3,917.09	¥3,896.10

2. Dividends

   (For the fiscal years ended March 31, 2026 and ending March 31, 2027)

   Yen

   	The entire FY ending March 31, 2027		The entire FY ended March 31, 2026
   	Results	2027 Projections
   First quarter period
   Second quarter period	95.00		95.00
   Third quarter period
   Year-end		95.00	95.00
   Total		190.00	190.00

   Note: Changes in the latest projected cash dividend as of October 29, 2026: None

3. Projections for the Fiscal Year Ending March 31, 2027

   (From April 1, 2026 to March 31, 2027)

   Millions of yen except per share amounts

   	2027
   		Changes Increase (Decrease)
   Net sales	4,450,000	7.7%
   Operating income	585,000	3.1%
   Income before income taxes and equity in earnings of affiliated companies	548,000	2.0%
   Net income attributable to Komatsu Ltd.	382,000	1.5%
   Net income attributable to Komatsu Ltd. per share - Basic (Yen)	¥429.63

   Notes: 1) Changes in the latest projected consolidated business results as of October 29, 2026: Applicable

   2) Percentages shown above represent the rates of change compared with the results for the previous fiscal year.

4. Others

1. Changes in important subsidiaries during the six-month period under review: None

2. Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of interim consolidated financial statements: None

3. Changes in significant accounting rules, procedures and presentation and changes in significant accounting policies and estimates

   1. Changes resulting from revisions in accounting standards, etc.: None

   2. Changes in other matters except for 1) above: None Note: See (4) Others on page 12 for more details.

4. Number of common shares outstanding

   1. The number of common shares issued (including treasury stock) were as follows: As of September 30, 2026: 930,340,620 shares

      As of March 31, 2026: 930,340,620 shares

   2. The number of treasury stock were as follows: As of September 30, 2026: 44,479,326 shares

      As of March 31, 2026: 29,242,594 shares

   3. The weighted average number of common shares outstanding were as follows: Six months ended September 30, 2026: 892,090,811 shares

Six months ended September 30, 2025: 915,432,616 shares

Notes:

• The number of treasury stock as of September 30, 2026 and March 31, 2026, includes 1,368,121 shares and 1,439,823 shares, respectively, held in the Board Incentive Plan Trust and the Employee Stock Ownership Plan Trust. These shares are excluded in the calculation of the weighted average number of common shares outstanding.

• This report is not subject to quarterly review by CPA or an audit firm.

• Explanations concerning the appropriate use of the forecasts for results of operations and other special matters. The aforementioned forecasts, plans and projections for results of operations in this report are determined by top management of the Company to be reasonable, based on the currently available information. Please be advised that actual results may differ significantly from the forecasts, plans or projections in this report, due to a variety of changing factors. Such factors may include economic conditions and changes in demand for products in major markets, fluctuations on the foreign exchange market, and changes in regulations, accounting standards and practices in Japan and abroad.

Results for Three Months ended September 30, 2026

Millions of yen except per share amounts

(Amounts are rounded to the nearest million yen)

Management Performance and Financial Conditions

1. Outline of Operations and Business Results P.5

2. Financial Conditions ……………………………………………..…………….. P.10

3. Projection for the Fiscal Year Ending March 31, 2027 ……………………….... P.11

4. Others ……….………………………..……………………………………….... P.12

1. Consolidated Balance Sheets …………………………………………………… P.13

2. Consolidated Statements of Income and

   Consolidated Statements of Comprehensive Income ...………………………… P.15

3. Consolidated Statements of Cash Flows ……………………………………….. P.19

4. Note to the Going Concern Assumption ……………………………………….. P.20

5. Business Segment Information ………………………………………………… P.20

6. Note in Case of Notable Changes in the Amount of Shareholders' Equity ……. P.23

1. Outline of Operations and Business Results

   Komatsu Ltd. ("Company") and its consolidated subsidiaries (together "Komatsu") launched a three-year medium-term management plan - the Strategic Growth Plan - titled "Driving value with ambition", which covers the period up to the fiscal year ending March 2028. Under the plan, Komatsu upholds three pillars of growth strategies: 1) Create customer value through innovation; 2) Drive growth and profitability; and 3) Transform our business foundation. And, we are working to further evolve the value of our products and solutions with an aim of realizing its redefined vision of becoming a collaborative partner committed to optimizing safe, productive, and clean workplaces.

   For the first six-month period (April 1- September 30, 2026) of the fiscal year ending March 31, 2027, the second year of the Strategic Growth Plan, consolidated net sales totaled JPY 2,158.6 billion, an increase of 14.1% from the corresponding period a year ago. In the construction, mining and utility equipment business, sales increased from the corresponding period a year ago, supported by the depreciation of the Japanese yen compared to the corresponding period a year ago, increased sales volume and improved selling prices. In the industrial machinery and others business, sales increased from the corresponding period a year ago, mainly supported by increased sales for the semiconductor industry.

   With respect to profits for the first six-month period under review in the construction, mining and utility equipment business, despite factors such as increased costs, profits increased primarily due to the Japanese yen's depreciation, improved selling prices and an increase in sales volume. In the retail finance and industrial machinery and others business, profits increased. As a result, operating income totaled JPY 286.6 billion, an increase of 3.5% from the corresponding period a year ago and the operating income ratio decreased by 1.3 percentage points from the corresponding period a year ago to 13.3%. Income before income taxes and equity in earnings of affiliated companies increased by 4.9% from the corresponding period a year ago to JPY 271.0 billion. Net income attributable to Komatsu Ltd. increased by 9.2% from the corresponding period a year ago to JPY 191.9 billion.

   In September this year, Komatsu issued the integrated report, "Komatsu Report 2026." This report reviews the first year of the Strategic Growth Plan, titled "Driving value with ambition", which covers the period up to the fiscal year ending March 2028, and introduces initiatives aimed at enhancing corporate value over the medium to long term, including automation and remote operation, AI utilization, human capital, and natural capital.

   [Consolidated Financial Highlights]

   Millions of yen

   	Six Months ended September 30, 2026 1USD=JPY159.0 1EUR=JPY184.2 1AUD=JPY112.4	Six Months ended September 30, 2025 1USD=JPY146.4 1EUR=JPY166.9 1AUD=JPY94.3	Changes Increase (Decrease)
   	[A]	[B]	[(A-B)/B]
   Net sales	2,158,639	1,891,587	14.1%
   Construction, Mining and Utility Equipment	1,999,563	1,742,195	14.8%
   Retail Finance	65,437	60,990	7.3%
   Industrial Machinery and Others	114,495	106,921	7.1%
   Elimination	(20,856)	(18,519)	-
   Segment profit	286,831	277,668	3.3%
   Construction, Mining and Utility Equipment	244,472	241,963	1.0%
   Retail Finance	17,372	16,887	2.9%
   Industrial Machinery and Others	21,074	16,600	27.0%
   Corporate & elimination	3,913	2,218	-
   Operating income	286,625	277,061	3.5%
   Income before income taxes and equity in earnings of affiliated companies	271,037	258,385	4.9%
   Net income attributable to Komatsu Ltd.	191,916	175,701	9.2%

   Note: Unless otherwise noted, all sales by segment in this report indicate the amounts before elimination of intersegment transactions.

   Business results by operation are described below.

   Construction, Mining and Utility Equipment

   For the first six-month period under review, sales of the construction, mining, and utility equipment business increased by 14.8% from the corresponding period a year ago, to JPY 1,999.6 billion. Segment profit increased by 1.0% to JPY 244.5 billion.

   During the period under review, Komatsu steadily promoted Smart Construction, a digital solution for construction sites and the "rate of ICT machine adoption," which indicates the sales ratio of ICT construction equipment in Japan, the U.S., Europe, and Australia, marked 30.1%. With respect to mining equipment, the cumulative total number of Autonomous Haulage System (AHS) mining trucks reached 1,089 units as of the end of September, 2026.

   In July this year, Komatsu announced that it had entered into a strategic partnership with AIM Intelligent Machines (AIM), a U.S. developer of autonomous operation technology for bulldozers and hydraulic excavators, to deliver autonomous construction at jobsites. By integrating Smart Construction with autonomous operation technology, Komatsu will accelerate autonomous construction.

   In addition, Komatsu promoted the market introduction of the PC75-10M0, a 7-ton-class hydraulic excavator for Southeast Asian markets and the first hydraulic excavator developed under the leadership of Komatsu India Private Limited, as well as the PC200-11M2 and PC210-11M2 hydraulic excavators for emerging markets, thereby strengthening its product lineup to meet the needs of customers in each region.

   [Sales to Outside Customers of Construction, Mining and Utility Equipment by Region]

   Millions of yen

   		Six Months ended September 30, 2026	Six Months ended September 30, 2025	Changes Increase (Decrease)
   		[A]	[B]	[A-B]	[(A-B)/B]
   	North America	573,664	459,507	114,157	24.8%
   	Latin America	454,535	339,557	114,978	33.9%
   Americas		1,028,199	799,064	229,135	28.7%
   	Europe*¹	190,230	170,951	19,279	11.3%
   	Africa	152,972	116,116	36,856	31.7%
   	Middle East*¹	32,962	52,490	(19,528)	(37.2%)
   Europe, Africa & Middle East		376,164	339,557	36,607	10.8%
   	Oceania	233,489	221,038	12,451	5.6%
   	Asia*²	145,590	171,526	(25,936)	(15.1%)
   	China	40,331	37,028	3,303	8.9%
   	CIS	33,977	27,446	6,531	23.8%
   Oceania, Asia*³ & CIS		453,387	457,038	(3,651)	(0.8%)
   Japan		136,050	141,583	(5,533)	(3.9%)
   Total		1,993,800	1,737,242	256,558	14.8%

   Note: *¹Following a revision to the destination region classifications, certain regions, including Turkey, have been reclassified from the Middle East to Europe. Figures for the previous fiscal year have been restated accordingly.

   *²Excluding Japan and China

   *³Excluding Japan

   Komatsu's operations by region are described below.

   Americas

   In North America, sales increased by 24.8% from the corresponding period a year ago, supported by increased sales of construction equipment driven by steady demand, particularly from the infrastructure and rental sectors, as well as increased sales of mining equipment and the depreciation of the Japanese yen.

   In Latin America, sales increased by 33.9% from the corresponding period a year ago, primarily due to increased sales of mining equipment in countries such as Chile, against the backdrop of steady demand for copper, as well as the depreciation of the Japanese yen.

   Europe, Africa and Middle East

   In Europe, sales increased by 11.3% from the corresponding period a year ago, supported by steady demand against the backdrop of progress in infrastructure investment plans in Germany and the U.K., as well as the Japanese yen's depreciation.

   In Africa, sales increased by 31.7% from the corresponding period a year ago, driven by increased sales of mining equipment and construction equipment amid steady demand for gold and growing demand for infrastructure projects, as well as by the Japanese yen's depreciation.

   In the Middle East, sales of construction equipment and mining equipment decreased due to the situation in the Middle East. As a result, sales decreased by 37.2% from the corresponding period a year ago.

   Oceania, Asia and CIS

   In Oceania, despite decreased sales of mining equipment, sales increased by 5.6% from the corresponding period a year ago, supported by the Japanese yen's depreciation.

   In Asia, sales decreased by 15.1% from the corresponding period a year ago, mainly due to sluggish demand for mining equipment in Indonesia, reflecting restrictions on coal production.

   In China, sales increased by 8.9% from the corresponding period a year ago, supported by the Japanese yen's depreciation.

   In CIS, sales increased by 23.8% from the corresponding period a year ago, supported by the Japanese yen's depreciation.

   Japan

   In Japan, demand for both rental and non-rental use remained weak against the backdrop of rising labor costs, higher material prices, and labor shortages. As a result, sales decreased by 3.9% from the corresponding period a year ago.

   Retail Finance

   For the first six-month period under review, revenues increased by 7.3% from the corresponding period a year ago, to JPY 65.4 billion, and segment profit increased by 2.9%, to JPY 17.4 billion, mainly supported by the depreciation of the Japanese yen and growth in assets.

   Industrial Machinery and Others

   For the first six-month period under review, sales increased by 7.1% from the corresponding period a year ago, to JPY 114.5 billion, mainly supported by increased sales for the semiconductor industry. Segment profit amounted to JPY 21.1 billion, an increase of 27.0%.

2. Financial Conditions

   As of September 30, 2026, total assets increased by JPY 103.2 billion from the previous fiscal year-end, to JPY 6,527.2 billion, mainly due to an increase in inventories and other factors, despite the Japanese yen's appreciation against the U.S. dollar and other currencies from the previous fiscal year-end. Interest-bearing debt increased by JPY 105.3 billion from the previous fiscal year-end, to JPY 1,446.3 billion. Komatsu Ltd. shareholders' equity decreased by JPY 40.8 billion from the previous fiscal year-end, to JPY 3,470.0 billion. As a result, Komatsu Ltd. shareholders' equity ratio decreased by 1.5 percentage points from the previous fiscal year-end, to 53.2%.

   For the first six-month period under review, although inventories increased, net cash provided in operating activities totaled JPY 139.3 billion, an increase of JPY 11.7 billion from the corresponding period a year ago, mainly due to net income for the period. Net cash used in investing activities amounted to JPY 119.0 billion, an increase of JPY 24.9 billion, mainly due to the purchase of fixed assets. Net cash used in financing activities amounted to JPY 78.0 billion (as compared to JPY 71.5 billion used for the corresponding period a year ago), due to buyback of common stock and payment of dividends. After adding the effects of foreign exchange fluctuations to the total amount of each cash flow, as of September 30, 2026, cash and cash equivalents totaled JPY 381.3 billion, a decrease of JPY 58.4 billion from the previous fiscal year-end.

3. Projection for the Fiscal Year Ending March 31, 2027

   (From April 1, 2026 to March 31, 2027)

   Komatsu has made upward revisions to its projected consolidated sales and profits for the fiscal year ending March 31, 2027 from those announced on July 29. These revisions reflect stronger-than-expected demand across many regions in the construction, mining, and utility equipment business during the first six-month period, with demand expected to remain above initial expectations for the full year, as well as the greater-than-expected depreciation of the Japanese yen during the second quarter.

   The average exchange rates assumed in the projection for the second six-month period remain unchanged from those announced on July 29, 2026 (USD 1=JPY 150.0, EUR 1=JPY 174.0, and AUD 1=JPY 106.0). With respect to average exchange rates for the full year, Komatsu now estimates them at USD 1=JPY 154.5, EUR 1=JPY 179.1, and AUD 1=JPY 109.2 (previous projections: USD 1=JPY 152.1, EUR 1=JPY 176.6, and AUD 1=JPY 107.6).

   Projection for Consolidated Business Results for FY2026 (April 1, 2026 - March 31, 2027)

   Millions of yen except per share amounts

   	Current projection	Earlier projection	Changes
   	[A]	[B]	[A-B]	[(A-B)/B]
   Net sales	4,450,000	4,302,000	148,000	3.4%
   Operating income	585,000	555,000	30,000	5.4%
   Income before income taxes and equity in earnings of affiliated companies	548,000	508,000	40,000	7.9%
   Net income attributable to Komatsu Ltd.	382,000	349,000	33,000	9.5%
   Net income attributable to Komatsu Ltd. per share - Basic (Yen)	429.63	390.87	-	-

   Results for FY ended March 31, 2026

   4,132,751

   567,323

   537,258

   376,391

   413.90

4. Others

1. Changes in important subsidiaries during the six-month period under review: None

2. Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of interim consolidated financial statements: None

3. Changes in significant accounting rules, procedures and presentation and changes in significant accounting policies and estimates

   1. Changes resulting from revisions in accounting standards, etc.: None

   2. Changes in other accounting policy except for a) above: None

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

Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company's principal products, owing to changes in the economic conditions in the Company's principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company's objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company's research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.

1. Consolidated Balance Sheets Assets

   Millions of yen

   	As of September 30, 2026		As of March 31, 2026
   		Ratio (%)		Ratio (%)
   Current assets
   Cash and cash equivalents	¥ 381,338		¥ 439,701
   Trade notes and accounts receivable, net	1,422,645		1,406,411
   Inventories	1,694,678		1,601,883
   Other current assets	284,376		240,203
   Total current assets	3,783,037	58.0	3,688,198	57.4
   Long-term trade receivables, net	906,786	13.9	930,412	14.5
   Investments
   Investments in and advances to affiliated companies	90,232		91,349
   Investment securities	17,629		12,906
   Other	92		60
   Total investments	107,953	1.6	104,315	1.6
   Property, plant and equipment - less accumulated depreciation	986,473	15.1	982,429	15.3
   Operating lease right-of-use assets	84,596	1.3	75,566	1.2
   Goodwill	270,220	4.1	272,823	4.3
   Other intangible assets - less accumulated amortization	161,384	2.5	169,345	2.6
   Deferred income taxes and other assets	226,725	3.5	200,853	3.1
   Total assets	¥ 6,527,174	100.0	¥ 6,423,941	100.0

   Liabilities and Equity

   Millions of yen

   	As of September 30, 2026		As of March 31, 2026
   		Ratio (%)		Ratio (%)
   Current liabilities
   Short-term debt	¥ 530,912		¥ 553,550
   Current maturities of long-term debt	177,721		136,050
   Trade notes, bills and accounts payable	353,286		355,475
   Income taxes payable	75,942		62,229
   Current operating lease liabilities	23,305		22,563
   Other current liabilities	639,707		617,550
   Total current liabilities	1,800,873	27.6	1,747,417	27.2
   Long-term liabilities
   Long-term debt	737,678		651,431
   Liability for pension and retirement benefits	61,964		62,766
   Long-term operating lease liabilities	64,159		55,959
   Deferred income taxes and other liabilities	196,238		197,941
   Total long-term liabilities	1,060,039	16.2	968,097	15.1
   Total liabilities	2,860,912	43.8	2,715,514	42.3
   Komatsu Ltd. shareholders' equity
   Common stock	70,317		70,317
   Capital surplus	137,550		137,424
   Retained earnings:
   Appropriated for legal reserve	49,882		49,711
   Unappropriated	2,791,699		2,685,736
   Accumulated other comprehensive income (loss)	630,966		678,310
   Treasury stock, at cost	(210,415)		(110,730)
   Total Komatsu Ltd. shareholders' equity	3,469,999	53.2	3,510,768	54.7
   Noncontrolling interests	196,263	3.0	197,659	3.0
   Total equity	3,666,262	56.2	3,708,427	57.7
   Total liabilities and equity	¥ 6,527,174	100.0	¥ 6,423,941	100.0

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

   Six months ended September 30, 2026 and 2025

   Consolidated Statements of Income

   Millions of yen except per share amounts

   	Six Months ended September 30, 2026		Six Months ended September 30, 2025
   		Ratio (%)		Ratio (%)
   Net sales	¥ 2,158,639	100.0	¥ 1,891,587	100.0
   Cost of sales	1,494,899	69.3	1,287,865	68.1
   Selling, general and administrative expenses	376,909	17.5	326,054	17.2
   Other operating income (expenses), net	(206)	(0.0)	(607)	(0.0)
   Operating income	286,625	13.3	277,061	14.6
   Other income (expenses), net
   Interest and dividend income	13,845	0.6	12,031	0.6
   Interest expense	(29,266)	(1.4)	(26,035)	(1.4)
   Other, net	(167)	(0.0)	(4,672)	(0.2)
   Total	(15,588)	(0.7)	(18,676)	(1.0)
   Income before income taxes and equity in earnings of affiliated companies	271,037	12.6	258,385	13.7
   Income taxes	72,687	3.4	75,431	4.0
   Income before equity in earnings of affiliated companies	198,350	9.2	182,954	9.7
   Equity in earnings of affiliated companies	5,246	0.2	4,576	0.2
   Net income	203,596	9.4	187,530	9.9
   Less: Net income attributable to noncontrolling interests	11,680	0.5	11,829	0.6
   Net income attributable to Komatsu Ltd.	¥ 191,916	8.9	¥ 175,701	9.3
   Net income attributable to Komatsu Ltd.
   per share (Yen)
   Basic	¥ 215.06		¥ 191.80
   Diluted	¥ 215.06		¥ 191.80

   Consolidated Statements of Comprehensive Income

   Millions of yen

   	Six Months ended September 30, 2026		Six Months ended September 30, 2025
   Net income	¥	203,596	¥	187,530
   Other comprehensive income (loss), for the period, net of tax
   Foreign currency translation adjustments		(51,004)		40,943
   Pension liability adjustments		473		199
   Net unrealized holding gains (losses) on derivative instruments		1,792		(1,121)
   Total	(48,739)		40,021
   Comprehensive income	154,857		227,551
   Less: Comprehensive income attributable to noncontrolling interests	10,285		14,678
   Comprehensive income attributable to Komatsu Ltd.	¥	144,572	¥	212,873

   Three months ended September 30, 2026 and 2025

   Consolidated Statements of Income

   Millions of yen except per share amounts

   	Three Months ended September 30, 2026			Three Months ended September 30, 2025
   			Ratio (%)			Ratio (%)
   Net sales	¥	1,115,496	100.0	¥	982,063	100.0
   Cost of sales		785,885	70.5		675,851	68.8
   Selling, general and administrative expenses		193,590	17.4		168,554	17.2
   Other operating income (expenses), net		(949)	(0.1)		(988)	(0.1)
   Operating income	135,072		12.1	136,670		13.9
   Other income (expenses), net
   Interest and dividend income	6,884		0.6	5,789		0.6
   Interest expense	(15,003)		(1.3)	(13,250)		(1.3)
   Other, net	4,048		0.4	(2,119)		(0.2)
   Total	(4,071)		(0.4)	(9,580)		(1.0)
   Income before income taxes and equity in earnings of affiliated companies	131,001		11.7	127,090		12.9
   Income taxes	30,804		2.8	38,800		4.0
   Income before equity in earnings of affiliated companies	100,197		9.0	88,290		9.0
   Equity in earnings of affiliated companies	2,723		0.2	2,447		0.2
   Net income	102,920		9.2	90,737		9.2
   Less: Net income attributable to noncontrolling interests	7,157		0.6	6,230		0.6
   Net income attributable to Komatsu Ltd.	¥	95,763	8.6	¥	84,507	8.6
   Net income attributable to Komatsu Ltd.
   per share (Yen)
   Basic	¥	107.86		¥	92.69
   Diluted	¥	107.86		¥	92.69

   Consolidated Statements of Comprehensive Income

   Millions of yen

   	Three Months ended September 30, 2026		Three Months ended September 30, 2025
   Net income	¥	102,920	¥	90,737
   Other comprehensive income (loss), for the period, net of tax
   Foreign currency translation adjustments		(108,749)		72,605
   Pension liability adjustments		259		207
   Net unrealized holding gains (losses) on derivative instruments		1,912		(334)
   Total	(106,578)		72,478
   Comprehensive income (loss)	(3,658)		163,215
   Less: Comprehensive income attributable to noncontrolling interests	2,337		11,195
   Comprehensive income (loss) attributable to Komatsu Ltd.	¥	(5,995)	¥	152,020

3. Consolidated Statements of Cash Flows

   Millions of yen

   	Six Months ended September 30, 2026		Six Months ended September 30, 2025
   Operating activities
   Net income	¥	203,596	¥	187,530
   Adjustments to reconcile net income to net cash provided by
   operating activities:
   Depreciation and amortization		83,406		78,385
   Deferred income taxes		(10,929)		1,084
   Impairment loss and net gain on valuation of investment securities, net		(4,570)		(103)
   Net gain on sale of fixed assets		(1,140)		(447)
   Loss on disposal of fixed assets		1,475		927
   Pension and retirement benefits, net		(1,204)		(154)
   Changes in assets and liabilities:
   Decrease (increase) in trade receivables		(28,593)		37,767
   Increase in inventories		(112,545)		(144,199)
   Increase (decrease) in trade payables		700		(37,457)
   Increase (decrease) in income taxes payable		14,125		(22,246)
   Other, net		(5,009)		26,570
   Net cash provided by operating activities	139,312		127,657
   Investing activities
   Capital expenditures	(130,368)		(102,612)
   Proceeds from sale of fixed assets	14,212		8,329
   Purchases of investment securities	(783)		(282)
   Acquisition of subsidiaries and businesses, net of cash acquired	(2,792)		(8,118)
   Other, net	725		8,529
   Net cash used in investing activities	(119,006)		(94,154)
   Financing activities
   Proceeds from debt issued (Original maturities greater than three months)	546,562		472,182
   Payment on debt (Original maturities greater than three months)	(462,694)		(437,425)
   Short-term debt, net (Original maturities three months or less)	36,516		80,458
   Sale (purchase) of treasury stock, net	(99,671)		(70,009)
   Dividends paid	(85,782)		(98,823)
   Other, net	(12,935)		(17,876)
   Net cash used in financing activities	(78,004)		(71,493)
   Effect of exchange rate change on cash and cash equivalents	(665)		(2,380)
   Net decrease in cash and cash equivalents	(58,363)		(40,370)
   Cash and cash equivalents, beginning of year	439,701		385,569
   Cash and cash equivalents, end of period	¥	381,338	¥	345,199

4. Note to the Going Concern Assumption

   None

5. Business Segment Information

   1. Information by Operating Segments

      Six Months ended September 30, 2026 and 2025

      (For Six Months ended September 30, 2026)

      Millions of yen

      	Construction, Mining and Utility Equipment	Retail Finance	Industrial Machinery and Others	Subtotal	Corporate & elimination	Total
      Net sales:
      External customers	1,993,800	51,689	113,150	2,158,639	-	2,158,639
      Intersegment	5,763	13,748	1,345	20,856	(20,856)	-
      Total	1,999,563	65,437	114,495	2,179,495	(20,856)	2,158,639
      Segment expenses: Cost of sales Selling, general and administrative expenses Research and development expenses Others	1,405,282	41,709	72,133	1,519,124	(24,225)	1,494,899
      	57,761	-	5,345	63,106	-	63,106
      	292,048	6,356	15,943	314,347	(544)	313,803
      Total	1,755,091	48,065	93,421	1,896,577	(24,769)	1,871,808
      Segment profit	244,472	17,372	21,074	282,918	3,913	286,831
      Segment profit ratio (%)	12.2%	26.5%	18.4%	-	-	13.3%

      (For Six Months ended September 30, 2025)

      Millions of yen

      	Construction, Mining and Utility Equipment	Retail Finance	Industrial Machinery and Others	Subtotal	Corporate & elimination	Total
      Net sales:
      External customers	1,737,242	48,372	105,973	1,891,587	-	1,891,587
      Intersegment	4,953	12,618	948	18,519	(18,519)	-
      Total	1,742,195	60,990	106,921	1,910,106	(18,519)	1,891,587
      Segment expenses: Cost of sales Selling, general and administrative expenses Research and development expenses Others	1,199,715	38,484	70,885	1,309,084	(21,219)	1,287,865
      	49,272	-	4,845	54,117	-	54,117
      	251,245	5,619	14,591	271,455	482	271,937
      Total	1,500,232	44,103	90,321	1,634,656	(20,737)	1,613,919
      Segment profit	241,963	16,887	16,600	275,450	2,218	277,668
      Segment profit ratio (%)	13.9%	27.7%	15.5%	-	-	14.7%

      Three Months ended September 30, 2026 and 2025 (For Three Months ended September 30, 2026)

      Millions of yen

      	Construction, Mining and Utility Equipment	Retail Finance	Industrial Machinery and Others	Subtotal	Corporate & elimination	Total
      Net sales:
      External customers	1,028,763	25,915	60,818	1,115,496	-	1,115,496
      Intersegment	3,866	6,827	782	11,475	(11,475)	-
      Total	1,032,629	32,742	61,600	1,126,971	(11,475)	1,115,496
      Segment expenses: Cost of sales Selling, general and administrative expenses Research and development expenses Others	738,900	21,151	39,017	799,068	(13,183)	785,885
      	27,712	-	2,593	30,305	-	30,305
      	151,668	3,843	7,926	163,437	(152)	163,285
      Total	918,280	24,994	49,536	992,810	(13,335)	979,475
      Segment profit	114,349	7,748	12,064	134,161	1,860	136,021
      Segment profit ratio (%)	11.1%	23.7%	19.6%	-	-	12.2%

      (For Three Months ended September 30, 2025)

      Millions of yen

      	Construction, Mining and Utility Equipment	Retail Finance	Industrial Machinery and Others	Subtotal	Corporate & elimination	Total
      Net sales:
      External customers	894,982	24,168	62,913	982,063	-	982,063
      Intersegment	2,302	6,378	555	9,235	(9,235)	-
      Total	897,284	30,546	63,468	991,298	(9,235)	982,063
      Segment expenses: Cost of sales Selling, general and administrative expenses Research and development expenses Others	622,748	19,493	44,218	686,459	(10,608)	675,851
      	26,354	-	2,504	28,858	-	28,858
      	128,469	3,530	7,349	139,348	348	139,696
      Total	777,571	23,023	54,071	854,665	(10,260)	844,405
      Segment profit	119,713	7,523	9,397	136,633	1,025	137,658
      Segment profit ratio (%)	13.3%	24.6%	14.8%	-	-	14.0%

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

      1. Construction, Mining and Utility Equipment

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

      2. Retail Finance

         Financing

      3. Industrial Machinery and Others

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

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

   2) Geographic Information

   Net sales determined by customer location are as follows:

   (For Six Months ended September 30, 2026 and 2025)

   Millions of yen

   	Americas	Europe, Africa & Middle East	Oceania, Asia* & CIS	Japan	Total
   FY2026	1,080,280	392,399	499,903	186,057	2,158,639
   FY2025	853,908	352,436	500,071	185,172	1,891,587

   Note: * Excluding Japan

   (For Three Months ended September 30, 2026 and 2025)

   Millions of yen

   	Americas	Europe, Africa & Middle East	Oceania, Asia* & CIS	Japan	Total
   FY2026	548,800	204,957	256,721	105,018	1,115,496
   FY2025	451,654	179,703	254,954	95,752	982,063

   Note: * Excluding Japan

6. Note in Case of Notable Changes in the Amount of Shareholders' Equity

None

(end)