Acquisition Of Joy Global Home Komatsu-Books Pdf

Acquisition of Joy Global home komatsu
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1 Transaction Overview 2, Komatsu has entered into a definitive agreement to acquire 100 of Joy Global s shares. The purchase price is U 28 3 per share U 2 891MM JPY 303 6B 1 in total equity value. The transaction is expected to close in mid 2017 subject to Joy Global s shareholder approval regulatory approvals and other. customary closing conditions, Transaction Overview Joy Global s Historical Sales and Operating Margin. Company Name Joy Global Inc Average Operating Margin over the Last 10 Years 06 15 17 5. U 28 3 per share U MM, Surface Underground Operating Key Financials. Mining Mining Margin, Acquisition Represents 20 5 premium to1 week average. 10 000 25 FY 2015 10, Price share price 20 9 20 7 U MM.
Total equity value of U 2 891MM JPY 303 6Bn 1 18 4 18 6. 8 000 19 4 U 3 172 MM, 19 8 Sales, Cash merger between Joy Global and a wholly 13 9 JPY 333 Bn 1. Transaction 13 7 15, owned subsidiary of Komatsu America Corp 16 1. Structure 6 000, Komatsu s wholly owned US subsidiary 7 8 Adjusted. 10 U 262 MM, Cash on hand and loans 4 000 4 6 JPY 28 Bn 1. Financing Income 2, No plan for equity finance 5, 0 7 U 1 178 MM.
Joy Global s shareholders Meeting to be held in 0 Net Income. JPY 124 Bn 1, October December 2016, Expected to close in mid 2017 subject to Joy 0 5. Schedule 2 Excluding impairment charges U, Global s shareholder approval and clearance of. 1 338MM and restructuring charge U, necessary regulatory filings and approvals under 33 4MM. competition laws in relevant countries, Joy Global s Share Price Performance. Joy Global s share Price U S P 500, Overview of Joy Global 110 2200.
100 Joy Global s Share Price Left 2000, Year of Foundation 1884 90 1800. 80 S P 500 Right 1600, Headquarters Milwaukee Wisconsin USA 70 1400. Manufacture sale and services of mining 50 1000, Business Description 40 800. equipment for surface and underground mining, Listing Exchange NYSE 20 400. of Employees 13 400 as of 2015 10 0 0, 2001 2002 2003 2004 2005 2007 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016.
1 U JPY 105, 2 Transaction Rationales 3, While the industry is currently facing challenges mining equipment demand is expected to recover in the mid to long term as production and. consumption of major commodities increase, In surface mining demand for larger dump trucks is increasing to improve productivity and Joy Global which manufactures larger loading machines that. match larger dump trucks is attractive to Komatsu, In hard rock mining e g gold copper we expect a shift from surface to underground mining and we can enter into underground mining business. through acquisition of Joy Global, Mining Equipment Demand and Index of Major Commodity Consumption Consumption. Units Indexed, 10 000 Mining Equipment Demand 1 6 1 250.
Indexed Major Commodity Consumption Production in 2000 indexed to 100 2 0 0. 8 000 6 9 200, Annual Growth Rate of Indexed Major Commodity Consumption 3. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020. 1 For Komatsu s mining product lines only 2 Major Commodity Thermal coal met coal iron ore copper 3 Average of annual growth rate over the period. Demand of Dump Truck by Size Commodity Production by Mining Type. 200t 240 280t 320 345t 345 400t Underground Mid Small size Players. Commodity Production indexed, 100 Underground Majors Super Cave. Underground Majors excl Super Cave, 80 Surface, 60 Increase in Size. More Production from, 0 Underground Mining, Source Komatsu estimate dump truck demand Estimate. 3 Overview of Joy Global 1 4, Headquartered in Milwaukee Joy Global is among the leading suppliers of both surface and underground mining equipment.
Strong customer base including Mining Majors, High margin service business c 76 of LTM sales under direct sales and service model has led to steady cash flow. generation even in a challenging environment, History of Joy Global Sales by Segment. 1884 Establishment Original, 1994 Acquired Joy Mining Machinery US underground mining equipment manufacturer 24. 2011 Acquired LeTourneau US strengthening surface mining equipment business. 2012 Acquired IMM China strengthening underground mining equipment business Segment. 2014 Acquired Hard Rock Business of Mining Technologies International Canada. 2015 Acquired Montabert France strengthening hard rock business 76. Sales by Region Sales by Commodity Historical Free Cash Flow. LTM 1 LTM 1 U MM, China Industrial Other Free Cash Flow 3. 8 Minerals 2 9, Africa 600, Eurasia America 400, 38 Gold Zinc LTM.
9 Sales by Sales by, Nickel Commodity, Latin Copper 56. America Australasia 20 0, 18 19 FY10 FY11 FY12 FY13 FY14 FY15 LTM 1. 1 2015 5 2016 4 2 Salt Potash Trona Gypsum 3 Calculated as Operating Cash Flow Investing Cash Flow Adjusted for one time items. in FY2011 and 2012, 3 Overview of Joy Global 2 5, Provide a broad range of mining equipment for both surface and underground mining. Surface Mining Underground Mining, Continuous Miner. Dragline Continuously mine, Super size soft rocks, Loading Machine.
Used with Roof, Support Continuously, mine soft rocks. Roof Support, Prevent mine collapse, Rope Shovel, Blasthole Super size Loading Machine. Drills Max Bucket 70m3, Underground Mining, Open a hole for entry Hard Rock. LHD Jumbo Drills, Load Haul Dump Machine Open a hole for entry. Wheel Loader, Max Bucket 40m3 Hydraulic Breaker, Also available for Surface Mining.
3 Overview of Joy Global 3 6, Size of Joy Global s Products. As high as a 23 story building, 3 1 m height, PC8000 9 4 m length. 19 600 kg weight, 10 7 m height, 18 5 m length, 752 000 kg weight. Dragline Rope Shovel Sheerer, Source Joy Global s Website. 4 Post transaction Vision 7, Komatsu considers the mining equipment business as an area with high growth potential in the mid to long term.
Among mining equipment manufacturers Komatsu and Joy Global share common values and strategies. Together with Joy Global Komatsu will strengthen our commitment to customer safety and productivity. Shared Values, Safety Productivity Ton reduction, Customer Focus. Super size Common Strategies, 1 Rope Shovel, Hydraulic Excavator 1 Surface Mining. Direct sales and service model, Surface Mining, Innovation Super size. Super size ICT Hybrid products 2 Wheel Loader, 2 dump truck in house production of key components Surface Mining. Surface Mining Blasthole Drills, 3 Surface Mining, Support FY2015 Sales FY2015 Sales.
3 Equipment JPY 450 Bn JPY 330 Bn 1 Longwall Sheerer. Surface Mining 4 Underground Mining, 4 Mine Management. System Underground Mining, Komatsu will further promote innovation at mining jobsites GEMBA under a strengthened direct sales and. service model thereby further contributing to our customers safety and productivity. 1 Fiscal year ended 2015 10 U JPY 105, 5 Synergy Example 1 Full Line Offering of Mining Equipment 8. Through acquisition of Joy Global Komatsu enters the underground mining equipment business. We will have a full product line up for surface and underground mining customers acquiring new products such as super size loading machines and drills. Integration of both companies technologies will further promote Dantotsu Solution e g ICT Automation. Mining Equipment, Surface Mining Equipment Underground Mining Equipment. Hydraulic Wheel Loader Wheel Loader Continuous, Bulldozer dump truck Rope Shovel Blasthole Drill Dragline Haulage Roof Support Road Header Sheerer LHD.
Excavator Mechanical drive Electric drive Miner, Source Joy Global s Website. 5 Synergy Example 2 Strong Combination of Surface Mining Products 9. In surface mining Joy Global manufactures rope shovels and wheel loaders that best match. Komatsu s super size dump trucks complementing Komatsu s existing product line up. 1 Dump truck Shovel Process Excellent Complementarity based on material density of 1 8 90 fill factor. WA900 3E0 WA1200 6 L 1850 L 2350, Wheel Loader, Loading Bucket Bucket Bucket Bucket. 11 5 13m3 20 18m3 30 28m3 40 3 37 8m3, Possible Matching Class. Mechanical drive Electric drive, HD785 7 HD1500 7 730E 8 830E 1AC 860E 1K 930E 4 SE 960E 2 K 980E. Dump Truck, Payload Payload Payload Payload Payload Payload Payload Payload.
Best matching 91tonne 144tonne 181tonne 221 6tonne 254tonne 291 7tonne 327tonne 363tonne. 4 pass loading, PC3000 6 PC4000 6 PC5500 6 PC7000 PC8000 6 4100C. 4100C 4100XPC 4800XPC, Hydraulic Shovel, Rope Shovel. Bucket Bucket Bucket Bucket Bucket Bucket Bucket Bucket Bucket. 15 15m3 22 22m3 29 29m3 34 36m3 42 42m3 45 3m3 50 3m3 60 5m3 68 1m3. Hydraulic Shovel Rope Shovel, 5 Synergy Example 3 Innovation at Mining Jobsites 10. Collaboration with A will accelerate our innovation at mining jobsites. Enhanced capabilities to improve safety and productivity of customer operations and to advance. teleoperation and semi full automation processes, Integration and Sharing of Information Data between Trucks and Shovels Autonomous Haulage System AHS. Combination of Komatsu trucks and Joy Global shovels would enable teleoperation and automation in mining operations. Promotion of Customer Benefit, 1st Step Improved Safety 2nd Step Improved Productivity 3rd Step Remote Control Automation.
Collision Avoidance Operator assistance such as optimal Teleoperation. loading position control etc Automated Operation, 6 Post Acquisition Policy 11. Optimize management structure to better support our customers. Joy Global s highly recognized brands will be maintained. Cultural similarities such as commitment to safety and customer productivity will facilitate collaboration between. Komatsu and Joy Global to accelerate growth through innovation. 1 Maintain Joy Global s, 5 Commit to Safety Environment Compliance Brands. and Customer Productivity, Culture Brands, 2 Promote Collaborative Product. Management, Development, Policy Product, Solution Development. Sales Service, 4 Pursue Growth Driven by Innovation Network.
3 Maintain and Strengthen Direct Sales and, Service Model. 7 Acquisition Consistent with Mid Range Management Plan 1. Growth Toward Our 100th Anniversary and Beyond, Although we assume that demand will remain low in the near term we will achieve growth above. the industry s average by promoting growth via innovation and by growing existing businesses. Growth acceleration with the, acquisition of Joy Global. Sales U 3 0 3 5 Bn, Op margin 10 15, 7 Acquisition Consistent with Mid Range Management Plan 2. Targets of Mid Range Management Plan, In addition to our existing industry leading profitability and financial position we will work for growth above the industry s average.
even while demand remains low, We will place more importance on redistribution of profits to shareholders and set the goal of a consolidated payout ratio of 40. or higher and maintain the policy of not decreasing dividends as long as the ratio does not surpass 60. By segmenting the retail finance business we will enhance transparency of profitability and financial position of consolidated and. retail finance business performance The retail finance business will set up its own target figures. Maintain target numbers in the mid range, management plan and dividend policy. Stance on Targets Target, Growth Aim at a growth rate above the industry s average. Profitability Aim at an industry s top level operating income ratio. Efficiency Aim at 10 level ROE, Keep a fair balance between investment for growth and shareholder. return incl stock buyback while placing main priority on investment. Shareholder, return Set the goal of a consolidated payout ratio of 40 or higher and.
maintain the policy of not decreasing dividends as long as the ratio. Use of funds does not surpass 60, Aim at industry s top level financial position. Retail finance ROA 2 0 or above, business 5 0 or under for net debt to equity ratio. 8 Summary 14, The acquisition of Joy Global is a key milestone to accelerate our growth. toward the 100th anniversary of Komatsu, 1 Komatsu and Joy Global share common values and strategies and we see great fit as to management business. technologies and employees, 2 The combination supported by mutual respect for culture technology and expertise will enable Komatsu to further.
promote innovation at mining jobsites GEMBA under a strengthened direct sales and service model thereby making. further contribution to our customers safety and productivity. 3 The acquisition of Joy Global demonstrates our strong commitment to growth toward the 100th anniversary to provide. better products and service for our customers, Cautionary Statement. The announcement set forth herein contains forward looking statements which reflect management s current views with respect to certain future events including expected financial position operating results and business strategies. These statements can be identified by the use of terms such as will believes should projects and similar terms and expressions that identify future events or expectations Actual results may differ materially from those projected. and the events and results of such forward looking assumptions cannot be assured Factors that may cause actual results to differ materially from those predicted by such forward looking statements include but are not limited to. Wheel Loader Komatsu Dump Truck HD785 7 HD1500 7 730E 8 830E 1AC 860E 1K 930E 4 SE 960E 2 K Mechanical drive Electric drive Hydraulic Shovel Rope Shovel 10 Collaboration with A will accelerate our innovation at mining jobsites Enhanced capabilities to improve safety and productivity of customer operations and to advance teleoperation and semi full automation processes

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