For the first six-month period, sales and profits increased in both businesses of Construction, Mining & Utility Equipment and Industrial Machinery & Others. Operating income surpassed 100 billion yen, and operating income ratio improved to 12.1%.

In the construction, mining and utility equipment business, Komatsu can look forward to further improving productivity against the backdrop of expanding sales volume as market demand remains strong in regions. In the industrial machinery and others business, sales of wire saws have been accelerating, particularly since the start of the current fiscal year. So, although we are anticipating the negative factor of the Japanese currency appreciating against the U.S. dollar and Renminbi, we are expecting that both sales and profits will surpass the respective figures we projected in July 2010. As preconditions for our current projections, we are assuming the foreign exchange rates in the third and fourth quarters to be as follows: