The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Tomohiko Sano - JP Morgan Chase & Co, Research Division - Analyst
: First question is about the trend of order backlog of mining equipment. You referred to BB ratio. And how is order backlog trending on year-on-year
basis and quarter-on-quarter basis? And also would you comment on the mix change? Is there any shift from coal to copper and iron ore, which
are the market of ultra-large equipment?
Question: Tomohiko Sano - JP Morgan Chase & Co, Research Division - Analyst
: Understood. Strategically, as you are currently promoting AHS unmanned truck, is there any change in number of fleet? And I assume you have
more retrofit strategy. So would you add the comment how they are affecting the quarterly orders and sales?
Question: Tomohiko Sano - JP Morgan Chase & Co, Research Division - Analyst
: Previously, you said the fleet size as around 100. And is it unchanged? Some of your competition said 150 or 200, how about you?
Question: Tomohiko Sano - JP Morgan Chase & Co, Research Division - Analyst
: Is it the shipment of new machines not the fleet?
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FEBRUARY 01, 2019 / 4:00AM, 6301.T - Q3 2019 Komatsu Ltd Earnings Presentation
Question: Tomohiko Sano - JP Morgan Chase & Co, Research Division - Analyst
: Cumulative shipment, I understood. Final question is about the competitive environment and the demand forecast in China. Would you comment
on the background of the decline of your sales volume vis-a-vis the Chinese makers? Competitive environment is rather difficult, some are cutting
the down payment. So do you think that the present Chinese construction machinery market is overheated? Given the current situation of collection
of credit, do you think the market is almost peaking out? And do you judge that it is not the right time to grow sales? Would you tell us about your
strategy in the competitive environment and give us your observations on demand?
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: I have 2 questions. Firstly, would you give us more colors on 7 major products for demand or sales trend? First of all, in Southeast Asia, in the third
quarter, demand was flat year-on-year, so would you comment on that background? North America and Europe, most of them is firm. But
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FEBRUARY 01, 2019 / 4:00AM, 6301.T - Q3 2019 Komatsu Ltd Earnings Presentation
macroeconomic indicators, such as housing starts in the U.S., have been slowing down. So would you tell us about the background of the robust
7 major construction products despite the macroeconomic slowdown?
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: Understood. In Europe also, macroeconomy is turning sluggish. The 7 major products demand is strong. Would you give us some colors for the
background?
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: Second question is a follow-up to the previous question about China. According to data by CCMA, total number of construction machinery continues
to grow, but your volume was down in October-December period. In other words, you were losing market share. Would you tell us about the
background? Is it related to price or exposure?
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: Is it correct to understand that the share loss is due to the price, meaning that you are not trying to gain share by lowering prices?
without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its
affiliated companies.
FEBRUARY 01, 2019 / 4:00AM, 6301.T - Q3 2019 Komatsu Ltd Earnings Presentation
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