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19 Apr 2021

Komatsu's response

Komatsu is concerned about the ongoing situation in Myanmar since the state of emergency on February 1.

We have conducted sales of equipment and parts to the Myanmar market through our distributor for over 10 years, and we believe that Komatsu has contributed to the development of Myanmar’s social infrastructure as well as the maintenance and improvement of its economy and employment.

We are aware that there are potential risks from a human rights perspective in Myanmar. Since 2019, we have conducted due diligence in the region with the support of external experts, to identify the issues and discuss how we approach those issues. As a result, we made a decision in 2019 to terminate sales of mining equipment to the jade mining market in Myanmar. We also terminated the operations of "Komatsu Manufacturing Myanmar", our subsidiary engaging in mining equipment maintenance. We have since been in the process of liquidating the company.

In September 2019, we established our Human Rights Policy and declared that we endeavor to conduct our business respecting human rights in compliance with international standards within our global operations.
We place top priority on the safety of our customers, distributor and employees in Myanmar, and will take measures to prevent and mitigate negative impacts on human rights in accordance with the United Nations Guiding Principles on Business and Human Rights. We are establishing a process to remedy any negative impacts that may have occurred or were found to be involved.

We will further engage with our distributor UMW, and external experts, in order to better understand the current situation and discuss and define the most effective measures to support the respect for human rights in business operations.

KOMATSU Human Rights Policy : https://komatsu.disclosure.site/en/themes/192
Business and Human Rights : https://komatsu.disclosure.site/en/themes/193