IN THIS REPORT:                                         REPORT OVERVIEW:

EXECUTIVE SUMMARY

OPERATING RESULTS

   First Quarter 2007 Results
   Fiscal Year 2006
   Manufacturing
   Marketing and Distribution
   Corporate Leadership

CORPORATE STRATEGY

PRODUCT ANALYSIS

North American Machinery Sales

North American Machinery Production

   Articulated Haulers (Dump Trucks)
   Backhoe Loaders
   Rigid Haulers
   Compact Track Loaders
   Hydraulic Excavators
   Industrial Lift Trucks
   Mini Excavators
   Crawler Dozers | Loaders
   Motor Graders
   Skid Steer Loaders
   Wheel Dozers
   Wheel Loaders
   Crawler Carriers

The Komatsu Group consists of Komatsu Ltd. plus 141 consolidated subsidiaries and forty-six companies, accounted for by the equity method. The majority of the company’s sales and employees are those related to its construction and mining equipment segment. Operations for the company’s North American construction and mining and utility equipment segments are overseen by Komatsu America Corporation, based in Vernon Hills, Illinois. The company has thirty-five facilities and subsidiaries producing construction and mining equipment and related components worldwide. Manufacturing facilities in North America are located in Candiac, QC, Canada; Chattanooga, Tennessee; Peoria, Illinois; and Newberry, South Carolina. Hydraulic excavators, rigid haulers, backhoe loaders, skid steer loaders and wheel loaders are produced at these North American facilties.