Komatsu has demonstrated strong stability, with ROE of 14.1% and more than 90% of sales from overseas, and has led the industry through digitalisation and decarbonisation. The third installment of the feature explains the company’s foresight, 2 key strengths and one more secret.
Komatsu has maintained sales of more than ¥3.8 trillion and an operating margin of over 10% for an extended period, while ROE has remained high at 14.1%. These metrics are solid even compared with the manufacturing industry as a whole, indicating that the company has continued to grow steadily.
One of the company’s strengths is its historical foresight. In 1955, as domestic demand was entering a period of strong growth, it began expanding overseas early. Today, roughly 90% of sales come from overseas, and about two-thirds of its employees are foreign nationals, reflecting its progress in globalisation.
The company has also led in digitalisation and environmental initiatives. In 2001, it made Komtrax, which remotely monitors operating conditions, standard equipment, and in 2008 it commercialised the world’s first hybrid hydraulic excavator. The low proportion of independent companies in Japan gives it an advantage in terms of agile decision-making.
The feature says that the next page will examine Komatsu’s “brain” and “two arms,” its 2 other strengths, and also touches on the background to a structure in which acquired companies generate part of the sales.