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: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: So this is Sasaki speaking. I have 2 questions. First is about the mining equipment. So you have not changed your projection. If you look at the sales,
it is about -- JPY 200 billion has recovered. So quarter-over-quarter, it has recovered about 10%. So I would like to know the situation by minerals,
by region. Specifically -- so specifically for minerals, coal and noncoal minerals, can you divide that? So can you explain why the mining equipment
recovered in the third quarter? So Indonesia and KMC, I think the business is struggling. Can you give you some more color about this?
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: So if you can, can you give me the ratio of how much machines are idle in Indonesia?
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: So for the parts for the mining equipment, it tends to be struggling because overhaul of Indonesia and KMC is impacting this business?
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JANUARY 29, 2021 / NTS, 6301.T - Q3 2021 Komatsu Ltd Earnings Call
Unidentified Company Representative
Yes. That's the correct understanding. Specifically in Indonesia, the overhaul business -- because the CapEx appetite of the customers is not high,
they're very, very cautious about that.
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: So if you compare the mining equipment, the construction equipment, I would like to hear about the breakdown between these 2. I assume that
the mining equipment have a double-digit margin, meaning that the construction equipment should be about 5%. And on top of that, the
construction equipment margins has been recovering at the major markets. But compared to the previous level, maybe it has not recovered to
that level. You talked about the inventory. So the 7.5% margin, what is the breakdown of that? And I assume that the construction equipment
margin is still low. Could you explain about the reason behind this?
Question: Tsubasa Sasaki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Research Division - Analyst
: So the reason for the low margin of construction machinery even with some recovery will be, first, inventory is controlled and utilization is low.
And as you mentioned, the volume in strategic markets such as Indonesia has not yet fully recovered. And due to the regional mix, margin of
construction machinery remains still low. Is my understanding correct?
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