Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.
In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Financial Highlights Material
for the Period Ending May 2023
Sakata Seed Corporation
July 27, 2023

🄫 SAKATA SEED CORPORATION 2022

Table of Contents

Ⅰ

Overview of Period Ending May 2023

....

3～15

Ⅱ

Forecast for Period Ending May 2024 and ....
Dividend Policy

16～22

Ⅲ

Action for Global Growth

.....

23～45

Ⅳ

Appendix

.....

46～49

🄫 SAKATA SEED CORPORATION 2023

2

Ⅰ

Overview of Period Ended May 2023
Figures in the document are rounded for fractions less than the unit.
Please be advised that some figures may differ from the summary of financial results.

🄫 SAKATA SEED CORPORATION 2023

3

Performance overview for period ended May 2023 (Consolidated)

Sales increased YoY; income fell YoY
Forcast for

Unit:100 million yen

2022

2023

Difference Difference(%)

2023*1

Sales

730

773

42

5.8%

780(-7)Gross profit

439

475

36

8.2%

-

60.1%

61.5%

-

-

-

81

91

9

11.5%

-

11.1%

11.7%

-

-

-

Other SGA expenses

246

275

29

11.9%

-

Operating income

112

109

-3

-2.4%
△2.4%

113(-4)

Ordinary income

121

123

2

1.6%

118(+5)

Net income

123

95

-28

-22.6%△22.6%

85(+10)

122
137

134
146

+11
+9

Impact of FX+40

133(+1)140(+6)Gross profit margin (%)

R&D expenses
Ratio against sales (%)*2

Yen/USD(\)
Yen/Euro(\)

Unit:100million yen*1 Announced July 2022 *2 Exchange rates for overseas subsidiaries (Period ended March)
🄫 SAKATA SEED CORPORATION 2023

4

Results for period ended May 2023 (Net income)Decrease in income due to fall in gain on sales of
non-current assets
Unit: 100 million yen
0

Period 2022
Net income

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

Main factors causing change
in net income

76
123

Gross profit

Increase due to increase in sales and+36 improvement of profit margin

SGA
expenses-39

Increase in expenses for
personnel, R&D and travel
Increase due to foreign exchange rate

Non-operating
income+5

Increase in interest received andforeign exchange gains

Extraordinary
income-43 Fall in gain on sales of non-current assets＋14

Corporatetax, etc.

Period 2023
Net income

41
95
123

🄫 SAKATA SEED CORPORATION 2023

-28
5

Results for period ended May 2023 (By business segment)

Overseas wholesale has been a driver
Unit: 100 million yen

2022

2023

Difference

Difference(%)

2022

2023

128

123

-5

-4.0%

49

wholesale

520

563

42

8.1%

Retail sales

52

53

2

Other

31

34

Subtotal

730

Difference

Difference(%)

49

-0

-0.4%

163

168

5

3.4%

3.7%

0

-1

-1

ー

3

10.3%

1

1

0

4.0%

773

42

5.8%

213

218

4

2.0%

－

－

－

－

-101

-108

-7

ー

730

773

42

5.8%

112

109

-3

-2.4%

Domestic
wholesale
Overseas

Elimination
Total

🄫 SAKATA SEED CORPORATION 2023

6

Results for period ended May 2023 (Sales by product）
Significant increase in vegetable seeds
Unit: 100 million yen
700

Period 2022
Sales

710

720

730

740

750

760

770

780

790

Main factors causing change
in sales

730

Vegetable
seeds

+38

Flowerseeds+0Seedlings

-1

Bulbs

-0

Materials+2

Others+3

Period 2023
Sales

773

🄫 SAKATA SEED CORPORATION 2023

Increase due to the impact offoreign exchange rates
Increase in peppr, squash and lettuce
Decrease in sunflower
but Increase in lisianthus
Decrease due to factors such as
calming of home gardening demand

The increased orders fromvolume retailers+42
7

Results for period ended May 2023 (Sales by customers’ region）

Increase in all overseas regions due to foreign exchange fluctuations
Unit: 100 million yen
690

Period 2022
Sales

710

770

790

Main factors causingchange in sales-0

North &
CentralAmerica
Europe &Middle East

+17

Decrease in vegetable and flower seeds
Increase in materials and landscaping
Increase in vegetable seeds(FX impact +15）+8
(FX impact +10 ）

+5

South
America(FX impact +1）

+8

Asia

(FX impact +11）

Slight decrease in both vegetables andflowers
in terms of local currencies
Increase in both vegetable and flower
seeds
Decrease in local currency basis due to a shift
in sales/expenses related to carrots to adifferent settlement period anda reactionary decline in sunflowers+4

Others🄫 SAKATA SEED CORPORATION 2023

750

730

Japan

Period 2023
Sales

730

(FX impact +3）

773

+42

Impact of FX+40

8

Sales by region for period ended May 2023 (1)【 Japan 】

While decrease in vegetable and flower seeds,
increase in materials and landscape business in Other
Unit: 100 million yen

Period2021

254
Change in accounting standards

Period
2022

-5

+0

-9 +0

-31

-44
210（-17.5%）+0Period2023-0210 （-0%）-2-1 -1 -0 +1+3■Vegetable seeds■Flower seeds■Seedlings■Bulbs■Materials■Landscaping& garden construction
■野菜種子
■花種子
■苗木
■球根
■資材
■造園緑花
2020/6-2021/5
変動額上位品目
2019/6-2020/5
Products whose
sales changed most2021/6-2022/5

2021/6-2022/5
変動額上位品目
2022/6-2023/5
Products
sales
2020/6-2021/5
Products whose
whose
sales changed
changed most
most

Vegetable seeds:

Vegetable seeds:

Flower seeds:
🄫 SAKATA SEED CORPORATION 2023

Broccoli+0.8Bunching Onion- 0.8

Tomato- 0.7

Spinach- 0.8

Lettuce+0.6

Carrot

- 0.7

Pansy

+0.5

Pansy

- 0.1

Flower seeds:

9Sales by region for period ended May 2023 (2)[North and Central America]

Increase in sales due to good sales of vegetable seeds
Unit: million dollars

99

Period
21/5月期
2021

19

118

22/5月期

Period
2022

110

25

135

+18
（+14.9%）Period
23/5月期
2023

113

24

137

+2
（+1.2%）■Vegetable seeds
2021/6-2022/5 Products whose sales changed most

Vegetable seeds:

Flower seeds:
🄫 SAKATA SEED CORPORATION 2023

Broccoli+5.1

Carrot■Flower seeds and others

2022/6-2023/5 Products whose sales changed most

Vegetable seeds:

Broccoli

- 2.6

+1.6

Pepper+2.3

Tomato+1.5

Spinach+1.8

Sunflower+2.1

Lisianthus+0.7

Flower seeds:

10Sales by region for period ended May 2023 (3)[Europe and Middle East]
Slight decrease in both vegetable and flower seeds in terms of local currencies
Unit: million euros

Period
21/5月期
2021

79

23

102

Period22/5月期
2022

82

27

109

Period
23/5月期
2023

82

26

■Vegetable seeds
2021/6-2022/5 Products whose sales changed most

Vegetable seeds:

Flower seeds:
🄫 SAKATA SEED CORPORATION 2023

Broccoli+1.5

Tomato＋7（+7.2%）-1
108 （-1.0%）■Flower seeds and others

2022/6-2023/5 Products whose sales changed most

Vegetable seeds:

Tomato

- 3.0

+1.5

Squash+2.0

Pepper

+0.9

Broccoli+0.9

Lisianthus+1.6

Platycodon- 0.4

Flower seeds:

11Sales by region for period ended May 2023 (4)[South America]

Good sales in both vegetable and flower seeds
Unit: million Real

Period
21/5月期
2021

160

Period22/5月期
2022

171

Period
23/5月期
2023

180

Vegetable seeds:

Flower seeds:
🄫 SAKATA SEED CORPORATION 2023

Squash

+2.9

Melon

+10
174 （+6.3%）

3

10 191+16（+9.4%）■Vegetable seeds
2021/6-2022/5 Products whose sales changed most

164

4

■Flower seeds and others

2022/6-2023/5 Products whose sales changed most

Vegetable seeds:

Squash

+7.3

+2.2

Melon

- 4.9

Lettuce+2.1

Pepper

+4.8

Sunflower+1.2

Lisianthus+0.5

Flower seeds:

12Sales by region for period ended May 2023 (5)[Asia]

Increase due to the impact of foreign exchange rates
Unit: 100 million yen

Period
21/5月期
2021

101

Period22/5月期
2022

110

Period
23/5月期
2023

119

18
24

23

■Vegetable seeds
2021/6-2022/5 Products whose sales changed most

Vegetable seeds:

Flower seeds:
🄫 SAKATA SEED CORPORATION 2023

Carrot+7.5

Pepper

119
135

+16
（+13.3%）+8
142（+5.7%）■Flower seeds and others

2022/6-2023/5 Products whose sales changed most

Vegetable seeds:

Carrot

- 5.3

+3.3

Bunching Onion+5.2

Spinach+1.2

Broccoli+5.0

Sunflower+5.5

Lisianthus+2.9

Flower seeds:

13Sales by region for period ended May 2023 (6)[Other regions (Africa and Oceania)]

Increase in vegetable seeds
Unit: 100 million yen

Period
21/5月期
2021

23

Period22/5月期
2022

25

Period
23/5月期
2023

28

２

Vegetable seeds:

Flower seeds:
🄫 SAKATA SEED CORPORATION 2023

Onion

- 1.2

Bunching Onion+2
27（+6.1%）

2■Vegetable seeds
2021/6-2022/5 Products whose sales changed most

25

2

30

＋4
（＋14.3%）■Flower seeds and others

2022/6-2023/5 Products whose sales changed most

Vegetable seeds:

Bunching Onion

- 0.9

+0.9

Broccoli+0.4

Squash+0.8

Squash- 0.4

Primula+0.1

14Main selling, general and administrative (SGA) expenses
for period ended May 2023

Increase in expenses for personnel, travel and R&D
Unit: 100 million yen(Breakdowns given on the basis of locations of head office and major subsidiaries)

Breakdown

SGA expenses

Personnel
expenses

Travelexpenses

R&D expenses*

Depreciation

Results
2018年5月
for period
実績
2023

366

188

12

28

91

Results
2017年5月
for period
実績
2022

327

172

7

26

81

Difference YoY

39

16

6

3

9

Impact of foreign exchange out of the above

16

7

1

1

3

Japan

9

-0

2

1

5

North & Central America

14

6

1

1

4

Europe & Middle East

14

6

2

1

2

South America

3

1

0

0

1

Asia

3

2

0

-0

0

Others + consolidation adjustment

-4

1

0

-0

-2

*R&D expenses are the total expenses related to research activities,
which may also be included as personnel expenses and depreciation.
🄫 SAKATA SEED CORPORATION 2023

15

Ⅱ Forecast for Period Ending May 2024
and Dividend Policy

🄫 SAKATA SEED CORPORATION 2023

16

Forecast for period ending May 2024 (Consolidated bases)
Expecting increase in sales and Operating income
but decrease in ordinary income and net income
Period 2022

Period 2023

Period 2024
forcast

Sales

730

773

840

67

8.7%

Gross profit

439

475

521

46

9.6%

60.1%

61.5%

62.0%

-

-

81

91

99

9

9.6%

Ratio against sales (%)

11.1%

11.7%

11.8%

-

-

Other SGA expenses

246

275

311

36

13.1%

Operating income

112

109

110

1

0.7%

Ordinary income

121

123

110

-13

-10.6%Net income

123

95

80

-15

-15.7%

122
137

134
146

135
145

Unit:100 million yen

Gross profit margin (%)

R&D expenses

Y en/USD (y en)
Y en/Euro (y en)

Difference Difference(%)

Estimate of exchangesensitivity*(million yen)

USD
Euro

97
13

* Estimated amount of affect from currency fluctuation of 1 yen on revised expected amount for operating income
🄫 SAKATA SEED CORPORATION 2023

17

Forecast for period ending May 2024 (Sales by product)

Expecting significant increase in vegetables
Unit: 100 million yen
720

Period 2023
Actual sales

740

760

780

800

820

840

860

Major factors likely tocause change in sales

773

Vegetable
seeds

+62

Expecting an increase in all regions

Flowerseeds+1

Expecting decreased sales in
Europe & Middle Eastand increased sales in other regions

Seedlings

+0

Bulbs

+0

Expecting a slight increase

Materials+1

Expecting a slight increase

Others+3

Expecting increasein landscape business

Period 2024
Expected sales

840

🄫 SAKATA SEED CORPORATION 2023

Expecting a slight increase+67
18

Forecast for period ending May 2024 (Sales by region)

Expecting increased sales in all regions
Unit: 100 million yen
730

Period 2023
Actual sales

740

750

760

780

790

800

810

820

830

840

Major factors likely tocause change in sales

850

773
+5

Japan

+8

North &
Central America(FX impact +2)

Europe &Middle East

Increase in both vegetableand flower seeds
Increase in vegetable seeds,
decrease in flower seeds+20

Increase in both vegetableand flower seeds(FX impact +9)

+18

Asia

Expecting increased sales
in landscape business
Expecting a slight increasein flowers, vegetables, and materials+16(FX impact -1)

South America(FX impact +6)

Increase in both vegetableand flower seeds+0

OthersPeriod 2024
Expected sales

770(FX impact -2)

840

🄫 SAKATA SEED CORPORATION 2023

+67

Impact of FX+14
19

Forecast for period ending May 2024
(Main selling, general and administrative (SGA) expenses)

Increase due to plan for enhancement of intellectual property
and human resources contributing to future growth
Unit: 100 million yen(Breakdowns given on the basis of locations of head office and major subsidiaries)
Personnel

Travelexpenses

expenses

expenses

R&D
Depreciation

expenses*

Results
2018年5月
for period実績
2024

411

205

17

31

99

Results
2017年5月
for period実績
2023

366

188

12

28

91

Difference YoY

45

18

4

3

9

7

3

0

0

1

Japan

20

2

3

1

3

North & Central America

9

4

0

0

1

Europe & Middle East

13

5

0

1

2

South America

8

4

0

1

1

Asia

5

2

1

-0

1

-10

0

0

0

-0

Impact of foreign exchange out of the above

Breakdown

SGA

Others + consolidation adjustment*R&D expenses are the total expenses related to research activities,
which may also be included as personnel expenses and depreciation.
🄫 SAKATA SEED CORPORATION 2023

20

Capital investment (Results for past 7 periods and forecast)

Increase in total capital expenditure
Unit: 100 million yen;consolidated basis

80

55

60
40
20
0

62
50
36

26

43

19

7
17/5
16/5
17/5

12
18/5
17/5
18/5

33

23

53
33

62
40

68

48

国内
Domestic

14
25

19

19/5
18/5
19/5

20/5
19/5
20/5

27
21/5
20/5
21/5

海外
Overseas

20

22

22/5
21/5
22/5

23/5
22/5
23/5

20
24/5（予）23/5（予）24/5（Est.）*2017/5-2023/5: Actual capital expenditure amounts for each period (including acquisition of intangible fixed assets)
2024/5: Including amounts of investment for periods after period 2024

We will actively use cash obtained from business activities, etc.,
in strategic investment (including corporate acquisitions) for future growth,
while at the same time providing stable and continuous returns to shareholders
🄫 SAKATA SEED CORPORATION 2023

21

Dividend policy

Year-end dividends for period 2023 is ¥35 (¥55 per year),For period 2024, ¥55 is expected.
Our company considers the return of profits to shareholders to be an importantmanagement issue, and has adopted a basic policy of ensuring a stable and continuous
distribution of profits¥55

1) The year-end dividend for period2023 is ¥35 (¥55 per year).
（Increase of ¥5 from forecast 2023）
2) For period 2024, ¥55 is expected.
Interim dividend: ¥25
Year-end dividend: ¥30＊ Amount per share

¥45
¥38

¥30
20

10
18/5

🄫 SAKATA SEED CORPORATION 2023

¥55

¥33

¥33

18

18

30

35
27

23

15

15

15

18

19/5

20/5

21/5

22/5

20

23/5

25

24/5(Est)■中間配当
期末配当 dividend■特別配当■Interim
dividend■■Year-end

22

Ⅲ Action for Global Growth

🄫 SAKATA SEED CORPORATION 2023

23

Table of contents

Growth in Indian Market and R&D for Tropics

1 Growth strategy of SAKATA Group
2 Investment and growth in Indian market
3 R&D for tropics

🄫 SAKATA SEED CORPORATION 2023

24

1. Growth Strategy of SAKATA group

R&D Dept.
Sales & Marketing Dept.
Establishment of a profitablebusiness model

Establishment of healthy
profit structure andpromoting key strategies ineach region

Development of a global
supply chain to boost supply
reliability and efficiency

Internal structuraldevelopment to foster global
enterprise growth

Administration Dept.

Supply Chain Dept.
Development of global IT
infrastructure to improve theefficiency of management

Corporate
Management Dept.
🄫 SAKATA SEED CORPORATION 2023

25

Table of contents

Growth in Indian Market and R&D for Tropics

1 Growth strategy of SAKATA Group
2 Investment and growth in Indian market
3 R&D for tropics

🄫 SAKATA SEED CORPORATION 2023

26

2 Investment and growth in Indian market
Market potential of India: Increasing population
Population (millions of people)
10,000
9,000
8,000
7,000

Others

6,000
5,000

Brazil

4,000

Indonesia

3,000

United States ofUnited…
America

2,000

India

1,000

China

0

1990

2022

2050(forecast)

United Nations Department of Economic and Social Affairs
World Population Prospects 2022

Largest population in the world, further growth expected per 2050 forecast
🄫 SAKATA SEED CORPORATION 2023

27

2 Investment and growth in Indian market
Market potential of India: Dietary culture focused on vegetables

Vegetable shop in market

Indian food with large amounts of vegetables

India is a huge consumer of vegetables, with 60% of citizens said to be vegetarians*(*) Source: Ministry of Land, Infrastructure, Transport and Tourism
https://www.mlit.go.jp/common/000116966.pdf
🄫 SAKATA SEED CORPORATION 2023

28

2 Investment and growth in Indian market
Market potential of India: Lifestyle and culture using large amounts of flowers

Flower shop in market

Flowers are essential for celebrations and ceremonies

Large amounts of flowers are used at homes and temples
🄫 SAKATA SEED CORPORATION 2023

29

2 Investment and growth in Indian market
Market potential of India: Status of vegetable crop area and seed market
Major vegetable crop area ratio in India

Onion

OthersPeppers

TomatoBeans

Cauliflower

GourdsCabbage🄫 SAKATA SEED CORPORATION 2023

Okra

Market scale of vegetables and flowers in India
Vegetables[Monetary amount of seed wholesales]
Approx. 700 million USD[Crop area]
10.96 million hectares[Production amount]
202 million tons
[Monetary amount of fruit & vegetable wholesales]
Approx. 9.850 billion USD
Flowers[Crop area]
280 thousand hectares[Production amount]
28 million tons
[Monetary amount of flower wholesales]
Approx. 2.9 billion USD(the above figures are tabulated by
SAKATA SEED CORPORATION)

Eggplant

30

2 Investment and growth in Indian market
Overview of local subsidiary in India: Establishment of R&D stations and sales/marketing network
through India
Sakata Seed India Pvt. Ltd.
2008: Established in suburb of New Delhi
2010: Established a research station in Bengaluru[No. of employees] 164[Customers/agents] Approx. 500 companies throughout
India(Construction of sales network that covers the entire
country)[Trial cultivated land] Large number throughout India
Current headquarters
location (Bengaluru)
Mainsales/marketingand productdevelopment
bases

Celebrating our 15th anniversary and growing into a major seed company in India

🄫 SAKATA SEED CORPORATION 2023

31

2 Investment and growth in Indian market
Market strategy in India: Three basic strategies

Strategy (1): Differentiation from other companies
・Concentration in highly-profitable products
・Development of new vegetable markets
・Take on the challenge of new products of flowers

Strategy (2): Strengthening of R&D
・Enhancement of R&D functions and expansionof local breeding

🄫 SAKATA SEED CORPORATION 2023

Strategy (3): Strengthening of governance・Relocation of headquarters andaggregation of functions32

2 Investment and growth in Indian market
Market strategy in India: Differentiation from other companies—Concentration in highly-profitable products
Toward a lineup focused on original F1 varieties

TomatoesOkra

Hot peppers

Cucurbits

Package of seeds sold in India

Cauliflower

Cabbage

We have been also significantly increasing
the ratio of other original F1 varieties such as
beets, broccoli, and squash

Establish a product lineup different from other companies
🄫 SAKATA SEED CORPORATION 2023

33

2 Investment and growth in Indian market
Market strategy in India: Differentiation from other companies—Development of new vegetable markets
Provide cultivation information to producers

Tour of broccoli field

Provide recipes to consumers

Website: Broccoli Lovers

https://broccolilovers.com/hi/

Infrastructure development
・Growth of cold chain logistics market in India
CAGR 14% from 2020 to 2025 (Source: Mordor Intelligence)

Detailed dissemination activities from production to consumption;
also driven by infrastructure development
🄫 SAKATA SEED CORPORATION 2023

34

2 Investment and growth in Indian market
Market strategy in India: Differentiation from other companies—Take on the challenge of new products of flowers
Propose Sunflowers as decorations for temples

・Proposes the 'Vincent's series of Sunflowers for cut flowers, which have been sold worldwide
・Collaborate with historic temples to determine marketability

Innovative approach to create a new flower culture
🄫 SAKATA SEED CORPORATION 2023

35

2 Investment and growth in Indian market
Market strategy in India: Strengthening of R&D—Enhancement of R&D functions and expansion of local breeding
Breeding

・Local research stations (Tomatoes, Hot Peppers, Okra, Gourds, etc.)
・Research expenses CAGR approx. 23% (2011 to 2023)

Expand research facilities

Disease-resistant F1 Okra : Simba
Diseases resistance against two typesof viruses. Highly evaluated in India.
Sales are steadily increasing and it is a
hit product. As an essential ingredientin curries and soups, okra is an
important item in the Indian market.

Biotechnology research facility

Pathology research facility

Sales driven by the development of distinctive original varieties
🄫 SAKATA SEED CORPORATION 2023

36

2 Investment and growth in Indian market
Market strategy in India: Strengthening of governance—Relocation of headquarters and aggregation of functions
2019

2023

Established the Bengaluru Innovation Center (BIC)
A new comprehensive base centered on logistics functions

Website renewal for 15th anniversary

Moved headquarters to the BIC
Accelerate decision-making by integrating management,
administration, research, production, logistics, quality control,
sales, and marketing

In 2023, Sakata Seed India renewed its website on
the occasion of its 15th anniversary.
https://sakata.co.in/

Bengaluru Innovation Center

Bengaluru Research Station

Cultivating teamwork together with pursuing efficiency
🄫 SAKATA SEED CORPORATION 2023

37

2 Investment and growth in Indian market
Market prospects in India: Toward further increase of sales

Sales Development of Sakata Seed India
1,000 Indian rupees

2,500,000

2,000,000

1,500,000

1,000,000

500,000

02011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2026

Sales goal (2026) 2.2 billion rupees
🄫 SAKATA SEED CORPORATION 2023

38

Table of contents

Growth in Indian Market and R&D for Tropics

1 Growth strategy of SAKATA Group
2 Investment and growth in Indian market
3 R&D for tropics

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3 R&D for tropics
Potential of tropics: Account for 36% of the world’s land

Tropic ofCancerEquator

Tropic ofCapricorn

Kottek, M.,
J. Grieser, C. Beck,
B. Rudolf, and F. Rubel,
2006: World Map of Köppen –Geiger Climate Classification
updated. Meteorol. Z., 15, 259-263.

Tropics = Region between the Tropic of Cancer and Tropic of Capricorn
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3 R&D for tropics
Potential of tropics: Increasing population
Population (millions of people)

10,000Europe and Northern America

9,000

Oceania＊

8,000

Australia/New Zealand

7,000

Latin America and the Caribbean

6,000

Eastern and South-Eastern Asia

5,000

Central and Southern Asia

4,000
3,000

Northern Africa and Western Asia
2,000

Sub-Saharan Africa

1,000
0

2022

2030

2050
*Excludes Australia and New ZealandUnited Nations Department of Economic and Social Affairs
World Population Prospects 2022

By 2050, the tropics will be home to half of the world’s population and will be a giant seed market
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3 R&D for tropics
Characteristics and themes of tropics
Regional characteristics
Climate and environment
・Severe natural environment except for highlands→High temperatures, dry, heavy rain, high humidity
・High level of biodiversity→Many types of diseases and pests
・Barren land
→Outflow due to high temperatures and rain

Cultivation
・Mainly open field cultivation→Unable to control growing environment

・Hardy and robust varieties
・Disease and pests resistant varieties
・Low fertilizer demand varieties
・Easy growing varieties

Varieties that have a wide range ofadaptability and can be harvested even inharsh cultivation environments

Technology and human resources
・Agricultural technology and cultivation
methods are underdeveloped

Difficult to meet demand through breeding or introducing varieties
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3 R&D for tropics
SAKATA’s strengths in R&D

Extensive genetic resources that can beused in the tropics
・Many years of breeding in the harsh Japanese climate
・Genetic resources from Brazil and other South American countries are also useful

Utilize existing bases in the tropics(India, Thailand, and Brazil)

・Enhanced trial cultivated land in each country
・Easy prototyping of varieties developed in other regions

Breeding by teams
Global cooperation in R&D

・Thorough team system rather than individual breeding
・Promotion of breeding programs between bases

Use genetic resources and global networks to actively take on challenges
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3 R&D for tropics
Prospects in Africa

India as a foothold• India and Sub-Saharan Africa are in the same climate classification• Almost entirely open field cultivation• Structure of farming villages is similar

Competitive advantages in developing theAfrican market
・Shared food culture, high possibility of using thesame varieties
・Results in sales of varieties bred in Thailand andBrazilKottek, M., J. Grieser, C. Beck, B. Rudolf, and F. Rubel,
2006: World Map of Köppen – Geiger Climate Classification updated.
Meteorol. Z., 15, 259-263.

Quickly respond to future growth of African market by expanding Indian varieties
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Vegetables nourish the body and flowers nourish the soul
We aim for sustainable development of the environment,
society,
and agriculture and horticulture
🄫 SAKATA SEED CORPORATION 2023

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Ⅳ

🄫 SAKATA SEED CORPORATION 2023

Appendix46

Results for period ended May 2023: Breakdown of external sales (1)OthersBulbs 1%
6%
Materials
Seedlings 3%
6%

Others4%

Domestic
27％

Asia 18%
South
America7%

By region

Europe &Middle East
20％

🄫 SAKATA SEED CORPORATION 2022

North & Central
America24％

Flower12%

By product

Vegetables
72%

47

Results for period ended May 2023: Breakdown of external sales (2)Difference of sales YoY by product and region(after eliminating internal transactions)
Unit: 100 million yen

Vegetables

Flow ers

Seedlings

Bulbs

Materials

Others

Total

16.0

1.0

0.0

－

0.3

-0.1

17.2

Europe & Middle East

6.8

-0.1

－

－

－

1.5

8.2

South America

5.1

0.4

－

－

－

-0.2

5.3

Asia

9.1

0.4

-0.0

-0.0

-0.0

-1.7

7.7

Other regions

3.4

-0.0

－

－

－

0.4

3.8

Ov erseas subtotal

40.4

1.5

-0.0

－

0.3

-0.1

42.2

Domestic subtotal

-2.4

-1.2

-1.1

-0.1

1.3

3.3

-0.1

Total

38.1

0.4

-1.1

-0.1

1.6

3.2

42.1

North & Central America

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Results for period ended May 2023:
External sales by customers’ region (Quarterly change)
Overseas sales (by customers’ region)
1st Qtr

QoQ

QoQ (%) 2nd Qtr

QoQ

QoQ (%) 3rd Qtr

QoQ

QoQ (%) 4th Qtr

QoQ

QoQ (%)

Total

22,491

2,248

11.1%

33,446

-795

-2.3%

33,788-3,528-9.5%

26,032-1,886-6.8%

24,522

-818

-3.2%

23,885-92

44,156

1,542

3.6%

49,376

8,159

19.8%

39,463

3,006

142

5.0%

5,700

1,597

38.9%

2,420

-93

-3.7%

6,697

-662

-9.0%

6,557

192

3.0%

4,258

-295

340

38

12.5%

479

105

28.0%

180

635

117

22.6%

838

176

26.5%

776

YoY

YoY (%)

47,287

3,698

8.5%

137,011

1,623

1.2%

-0.4%

33,382

1,747

5.5%

107,821-1,049-1.0%-4,810 -10.9%

57,594

11,42024.7%

190,589

16,311

9.4%

3,107

-879 -22.0%

14,233

768

5.7%

-6.5%

9,827

1,378

16.3%

27,339

612

2.3%

-7

-3.9%

164

53

48.2%

1,162

189

19.4%

87

12.7%

787

1

0.1%

3,036

381

14.4%

North & Central America(1,000US$)
Europe & Middle East
(1,000EUR)
South America(1,000BRL)
Asia(Million Yen)
Korea included in Asia
(Million WON)
India included in Asia
(Million INR)
Others(Africa, Oceania)(Million Yen)🄫 SAKATA SEED CORPORATION 2022

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Attention regarding forecasts

This presentation document includes descriptions and materials on
forecasts regarding performance, strategies and business plans of Sakata
Seed Corporation. Those descriptions and materials are the Company’s
estimates based on information available at the time of announcement, notfacts in the past.
Also, they include potential risks and uncertain elements such as economic
circumstances, conditions of competition with other companies, andforeign exchange rates. Therefore, please acknowledge that the Company’s
actual performance, business development or financial conditions may turnout very different to the forecasts given herein due to various economic,
social and political factors, including economic circumstances, competitionin the industry, market demand and foreign exchange rates in the future.

Please refer to the annual securities report, the summary of consolidated
earnings report and the like for details on general uncertainty andfluctuating elements.

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IR Information
https://corporate.sakataseed.co.jp/en/ir/

News Release
https://corporate.sakataseed.co.jp/en/news/

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