Mitigating Business Risks Associated with COVID-19

At Komatsu, we’re working diligently to minimise supply chain and customer disruptions related to the 2019-novel coronavirus (COVID-19). While our chief concern related to this global health issue has been for the safety of our employees, customers, and global partners, we acknowledge that there is also a need to have a clear, effective plan to ensure business continuity. We are taking the following steps to mitigate the business risk associated with COVID-19:

Planning Team: We are constantly monitoring the situation with the virus. We have established a Planning team who are enacting actions that will mitigate risks to our business and providing customers with the continued support expected from Komatsu.

Supply Chain: We are working closely with external suppliers to monitor impacts to our businesses, disruption to transport routes and or import / export controls.

o While many of our suppliers are not experiencing disruptions currently, there are some who we are currently working with on a more active basis to identify contingency options.

Manufacturing: We are also monitoring and addressing risks related to our Komatsu manufacturing facilities:

o Supply Chain risks/concerns related to COVID-19 from 85 worldwide Komatsu manufacturing operations have been gathered/centralized in our Production Division at Komatsu Ltd. (KLTD), so that we can view global impacts, and identify global solutions.

o Since February 5th, the Production and Procurement Divisions of KLTD have been monitoring temporary regulations of local government, workforce (attendance ratio), daily production status, transportation/customs (road regulation, port), inventory, alternative sources.

o China-sourced aftermarket parts have been prioritized for expediting purposes (e.g. machine down, emergency situations, etc.)

Travel restrictions: Komatsu employees international business travel has been stopped. Domestic travel is only on a business-critical basis. Our FIFO teams and technical support we see as critical in supporting our customers.

Work restrictions: Komatsu employees cannot return to work if they or anyone living within their household has:

o Travelled overseas for business or personal travel, in line with the mandatory 14 days isolation as per government announcements

o experienced close contact with a confirmed case of COVID-19 in the last 14 days (mandatory isolation for 14 days after the date of last contact with the confirmed case)

Hygiene Measures: We have asked Komatsu employees to use recommended hygiene measures to reduce the chance for infection including:

o Washing hands often with soap and running water for at least 20 seconds. Use an alcohol-based hand sanitizer if soap and water are not available.

o Avoid touching eyes, nose, and mouth with unwashed hands.

o Avoid close contact with people who are sick and keep a safe distance (approx. 1.5 metres) between yourself and others, where possible.

o If employees feel unwell, they should stay at home, and NOT attend work.

o Cover cough or sneeze with a tissue, then throw the tissue in the nearest bin and wash hands with soap and water.

o Clean and disinfect frequently touched objects and surfaces in the home and work environment.

o Maintain and healthy well-balanced diet

o Avoid handshakes. Use alternatives to a handshake, such as:  courteous nod

 elbow touch/bump

 phantom fist bump (not touching hands)

 “namaste” greeting: one prayerfully clasps one’s own hands together and bows

 put your hand over your heart and smile/nod at whomever you are greeting

Customer Support: Our FIFO teams, technical and parts support for our customers will continue as normal. When coming onto a customer site we will always observe our customers guidelines and will prioritise supporting our customer operations with parts, technical, and maintenance support.

Our Customer Support Centre’s are just part of our solution in supporting our customers and we are lucky to have over 50 sites distributed around Australia and New Zealand. This total support model gives us significant resources to support your operations. We can quickly switch between branches and even states seamlessly as required to continue our support to customers. While we can do this in normal times, we have taken additional steps within our business to secure our ongoing support for customers during these difficult times.

Warehouses: Similar to our call centre’s across the country our warehouses are taking actions to off-set shifts, reducing communal contacts and isolating warehouse operational people. We are confident these actions will reduce the risk to fulfilling orders through warehouses.

Visitors to Komatsu sites: For the moment we would prefer to meet via teleconference rather than a face to face meeting. This will ensure we take precautions for everyone’s benefit. There may be some business critical need to meet on our premises. If this is needed you will be asked a series of questions before entering our sites. Please don’t be offended if we request you to postpone your meeting due to answers to our visitor questions or you appear to have ‘flu like’ symptoms. It’s in all our best interests to be careful in these times.

Contacting Komatsu: Our customers are always welcome to talk with us, in fact we encourage communication. If you would still like us to attend your site, we are more than happy to help you out. We both need to make sure our communication protocols are good by asking the standard questions about overseas travel and contact with someone who has been confirmed with having the virus. Komatsu will not send anyone to a customer’s site if we have any doubt about transferring the virus.