Introduction

ISEKI Group’s value creation aims

Business strategies for value creation

Foundation for sustainable growth

Financial and non-financial data

Company information / Stock information

Financial and non-financial data

Financial and non-financial data
Financial highlights (FY2023)

Consolidated financial summary (Millions of yen)

Net sales

Operating income / Operating margin

Net sales came to 169.9 billion yen, up 3.2 billion yen year on year, hitting a record high.
[Japan]Sales rose due to growth in maintenance revenue, a pillar of therevenue-expenditure structural reform, including spare parts and repair/maintenance, as well as construction of facilities.
[Overseas] Despite a decline in sales in North America and Asia, sales increased inEurope due to firm demand even after the price increases, as well as
ISEKI Germany becoming a consolidated subsidiary in the second half ofthe previous fiscal year. Accordingly, overseas sales increased as a whole,hitting a record high for the third consecutive year.
■Japan net sales (100 million yen)■Overseas net sales (100 million yen)

1,581

1,666

1,699333

407

5395681,177

1,159

1,173

1,126

1,130

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023

1,498

1,493321

Ordinary income came to 2.0 billion yen, down 1.6 billion yen year on year.
Profit (loss) attributable to owners of parent decreased by 4.0 billion yen year
on year to 0.03 billion yen due in part to absence of gain on change in equity
and gain on step acquisitions recorded in the same period of the previous year.

■ Ordinary income (100 million yen)
■ Profit attributable to owners of parent (100 million yen)
ROE (%)

114135

1.4%

1.3%
2220

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023

Total assets / Net assets / Equity ratio
Total assets increased by 10.6 billion yen year on year to 217.1 billion yen
due to an increase in inventories resulting from a decrease in demand for
agricultural machinery products in Japan and an increase in local inventories
at overseas subsidiaries.
Net assets came to 74.2 billion yen, up 1.8 billion yen year on year due in partto increases in valuation difference on available-for-sale securities and foreign
currency translation adjustment.

2,064
1,874

2,171

1,876

37 41

34.2%

20

1772.1%
1.8%

1,975

312.6%■ Total assets (100 million yen) ■ Net assets (100 million yen)
Equity ratio (%)

6.2%

461.1%■ Operating income (100 million yen)
Operating margin (%)

27

Ordinary income / Profit attributable to owners of parent / ROE

5.1%

Although gross profit increased mainly due to the effect of price revisions,operating income was 2.2 billion yen, down 1.2 million yen year on year due toan increase in selling, general and administrative expenses. Operating margin
declined by 0.8% year on year to 1.3%.

34.5%

32.4%

32.9%

31.9%

00.0%

692

624

665

723

742

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023-8.8%-56
Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023

Cash flows

Interest-bearing debt / D/E ratio

In the cash flows from operating activities, the net cash outflow was 2.4 billion
yen due in part to an increase in inventories and a decrease in notes andaccounts payable-trade.
In the cash flows from investing activities, the net cash outflow was 5.4 billion
yen mainly due to capital investment. As a result, in the free cash flows, the net
cash outflow was 7.8 billion yen.
In the cash ﬂows from financing activities, the net cash inﬂow was 6.7 billion
yen mainly due to an increase in interest-bearing debt.
■Cash flows from operating activities (100 million yen)
■Cash flows from investing activities (100 million yen)
■Cash flows from financing activities (100 million yen)Free cash flows (100 million yen)105

1.116745

34

20-21-23-71
Dec. 2019

ISEKI Report 2024

-20-33-51-83
Dec. 2020

Dec. 2021

1.04

1.00

12196

Interest-bearing debt came to 76.9 billion yen, up 8.7 billion yen year on year
mainly due to an increase in loans.
D/E ratio, which shows the soundness of finance, was 1.04 times.

■ Loans (100 million yen) ■ Lease obligations (100 million yen)
D/E ratio (times)

142

83

Dec. 2019-29-63

Dec. 2022

-24

693
84

693
77

608

615

0.93

0.94

621
72

681
70
611

549

769
71
698

-54-78Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023Results of Operations
Domestic sales
Overseas sales
Net sales
Gross profit
Operating income
Ordinary income
Profit (loss) attributable to owners of parent

96th FY

97th FY

98th FY

99th FY

100th FY

(Dec. 2019)(Dec. 2020)(Dec. 2021)(Dec. 2022)(Dec. 2023)

117,717
32,181
149,899
44,507
2,745
1,108
723

115,907
33,397
149,304
43,476
2,084
1,702(5,641)

117,396
40,795
158,192
46,841
4,147
4,687
3,196

112,638
53,991
166,629
49,890
3,534
3,762
4,119

113,060
56,855
169,916
50,359
2,253
2,092
29

8,404
19,67554,1794,900
87,15998,346
1,288
10,717110,352
197,51137,752

10,787
21,78051,847
5,564
89,97986,2871,967
9,193
97,449187,428
36,872

14,85021,53749,871
4,843
91,10384,962
2,290
9,328
96,581
187,684
39,27910,74927,57465,331
5,758
109,41483,9192,309
10,84897,076
206,491
45,5009,901
26,917
72,842
5,660
115,32284,553
2,489
14,737
101,780
217,10241,73439,351

37,46030,21040,29140,642

12,63089,735
21,525
3,059
5,759
8,180
38,524128,259
52,84014,641
1,770
69,252
197,511

11,814
86,147
24,114
3,144
4,097
7,504
38,861125,00950,346
10,3101,762
62,419187,428

11,852
81,342
24,728
2,912
4,097
8,042
39,780121,123
53,567
11,201
1,792
66,561
187,684

12,397
98,18920,811
3,244
4,097
7,802
35,956
134,146
57,023
10,978
4,342
72,345
206,491

13,08895,46529,167
6,207
4,097
7,948
47,420142,886
56,367
12,955
4,892
74,215
217,102

Cash flows
Cash flows from operating activities
Cash flows from investing activities
Free cash flows
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents

10,509(7,104)
3,404(2,396)981

9,694(5,167)
4,526(2,179)2,383

14,233(2,039)12,194(8,338)4,048(3,375)(2,984)(6,360)
2,033(4,101)(2,459)(5,416)(7,875)
6,722
(848)

Information Per Share (Yen)Net assets
Profit (loss)
Cash dividends

2,987.2
32.0
30.0

2,683.1(249.6)―2,864.5
141.4
30.0

3,006.7
182.1
30.0

3,065.1
1.3
30.0

34.2
1.10.4
3.4
1.00

32.4
(8.8)
(3.0)
3.4
1.11

34.5
5.1
1.7
2.8
0.93

32.9
6.2
2.0
4.0
0.94

31.9
0.0
0.0
5.0
1.04

Financial Position (at the end of the fiscal year)
Cash and deposits
Notes and accounts receivable – trade
Inventories
Other
Total current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Notes and accounts payable – trade
Short-term loans payable(including current portion of long-term loans payable)
Other
Total current liabilities
Long-term loans payable
Net defined benefit liability
Deferred tax liabilities for land revaluation
Other
Total non-current liabilities
Total liabilities
Shareholders’ equity
Accumulated other comprehensive income
Subscription rights to shares and non-controlling interests
Total net assets
Total liabilities and net assets

Management Indicators
Equity ratio (%)
ROE (%)ROA (%)CCC (months)
D/E ratio (times)

Notes 1 ROE (Return on equity) = Profit/(Equity at the beginning of the fiscal year + Equity at the end of the fiscal year)/22 ROA (Return on assets) = Profit/Total assets
3 CCC (Cash conversion cycle) = Days sales outstanding + Days of inventory outstanding − Days payable outstanding
4 D/E ratio = Interest-bearing debt/Net assets

Dec. 2023

ISEKI Report 2024

84

Introduction

ISEKI Group’s value creation aims

Business strategies for value creation

Financial and non-financial data

Foundation for sustainable growth

Company information / Stock information

Financial and non-financial data

Financial and non-financial data

Company information / Stock information

Non-financial highlights (FY2023)

Company information (As of December 31, 2023)

Volume of energy-generated CO2 emissions in production

Environment

We are working to reduce CO2 emission volumes in our production
activities to create a decarbonized society.

Volume of water used in production

Environment

We are working to reduce volume of water used in production to mitigate
environmental burdens.

Company name:

ISEKI & CO., LTD.

Foundation:

August 1926

Head office:700 Umaki-cho, Matsuyama-shi, Ehime-ken, 799-2692 JAPAN

Paid-in capital:

23,344 million yen

Tokyo headquarters:

5-3-14, Nishi-Nippori, Arakawa-ku, Tokyo, 116-8541 JAPAN

Number of employees:

Consolidated: 5,457
Non-Consolidated: 774■ Total volume of water used in domestic manufacturing bases (10,000 tons)
Sales in Japan (ton/100 million yen)

■ Volume of CO2 emissions in global production bases (t-CO2)

42,13037,110Stock information (As of December 31, 2023)

1836,540
31,68029,400336

1515318273

2019

2020

2021

2022

20192023*Japan: ISEKI-Matsuyama MFG. Co., Ltd., ISEKI-Kumamoto MFG. Co., Ltd., ISEKI-Niigata MFG. Co., Ltd.,ISEKI-Shigenobu MFG. Co., Ltd.
Overseas: PT. ISEKI INDONESIA*The CO2 emission factor for domestic electricity is revised every year based on values published bythe Ministry of the Environment.

Retention rate in three years from joining non-consolidated

Human resources

The retention rate of new graduates in three years is at a high level of above
approximately 90%.

2021

14239254

20222023* Japan: ISEKI-Matsuyama MFG. Co., Ltd., ISEKI-Kumamoto MFG. Co., Ltd., ISEKI-Niigata MFG. Co.,
Ltd., ISEKI-Shigenobu MFG. Co., Ltd.

No. of Directors / Ratio of Outside Directors

Governance

From FY2024, the ratio of Outside Directors and the ratio of female Directors
became respectively 38% and 25%.
■ No. of Internal Directors (persons) ■ No. of Outside Directors (persons)Ratio of Outside Directors (%)■ Retention rate (%)

93.3

2020

14

94.1

90.6

89.2

91.7

Ratio of female
Directors

9 (2)
6 (3)

Joinedin 2017

Joinedin 2018

Joinedin 2019

Joinedin 2020

Joinedin 20212020

KPI

Water(quality) /Air / Soil

Reduction of used volume of chemical
substances subject to PRTR law (per net sales)(Compared with 2013)

45.2%

Reduction of volume of water used (per net sales)(Compared with 2013)

53.4%

Reduction of total material input (per net sales)(Compared with 2013)

34.1%

Reduction of CO2 emissions (Scope 1 & 2) (Total)(Compared with 2014)

44.9%

Resource
efficiency& safety

ClimateInitiatives to reduce CO2 emissions (Scope 3)
Waste

Reduction of final volume of waste (per net sales)(Compared with 2013)

Food

Percentage of invention proposals related
to advanced technologies toward higher
agricultural productivity

2023 Results*See below

69.2%

61.0%

Impacts
Employment

Inclusive and soundeconomy69,000,000 shares

Shares issued and outstanding:

22,872,034 shares(excluding treasury stock of 112,959 shares)

Foreign companies
and individuals

Number of shares per trading unit:

100 shares

Number of shareholders:

19,238

33%

2023

2022

Securities
companies

4.84%

1.56%

Other Japanesecompanies

14.85%

Stock Exchange on which its shares are listed: Prime Market of the Tokyo Stock Exchange
Business year:

From January 1 through December 31

Ordinary general meeting of shareholders:Late March every year

Record date:Ordinary general meeting of shareholders /Year-end dividend: December 31 every year

Shareholding ratioIndividual
shareholders
and other42.83%

Financialinstitutions

35.92%

Shareholder register administrator and Account Sumitomo Mitsui Trust Bank, Limited
management institution for special accounts: 1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Number of shares held (shares)

Shareholding ratio (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

Name of major shareholder

2,211,600

9.66

38%

Mizuho Bank, Ltd.

1,070,800

4.68

Iseki kabushiki hoyukai (Company’s Stockholding Co-op.)

981,554

4.29

The Norinchukin Bank

868,785

3.79

Custody Bank of Japan, Ltd. (Trust Account)

865,800

3.78

Sumitomo Mitsui Trust Bank, Limited

800,000

3.49

Iseki eigyo-hansya group syain mochikabukai (Business-selling Group Holdings)

728,200

3.18

The Iyo Bank, Ltd.

580,042

2.53

Sompo Japan Insurance Inc.

434,500

1.89

The Kyoei Fire and Marine Insurance Company, Limited

352,700

1.54

2024

Progress of activities that would have impacts on achieving SDGs (We have concluded a loan contract “Mizuho Positive Impact Finance” since March 2023)
Impacts

Total number of authorized shares:

5 (3)

30%

2021

Status of distribution of shares held by type of shareholder

6 (3)

33%

18%

6310

Major shareholders (top 10)

25%

7 (3)

Company code:

KPI

2023 Results

Utilization rate of paid leave

66.6%

Ratio of managers hired mid-career

8.5%

Ratio of women hired

19.0%

Ratio of female managers

4.6%(Note) Shareholding ratios are calculated after the deduction of treasury stock. The treasury stock does not include 254,700 shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account) as trust property of astock delivery trust for officers.

Share price trends
Share price (yen)Trading volume (1,000 shares)

2,000

6,000

1,500

4,500

Education / Inclusive
and sound economy/ FoodParticipation in the NOGYOJOSHI(female farmers) project

4 timesResource efficiency &safety / Climate / Air

Eco-product ratio in domestic sales

51.5%

1,000

3,000

90ha

500

1,500

Biodiversity andecological services /FoodLand area organically farmed (rice)*Estimated by
ISEKI & CO.,LTD.

0Jan. 2019

Jul. 2019

Jan. 2020

Jul. 2020

Jan. 2021

Jul. 2021

Jan. 2022

Jul. 2022

Jan. 2023

Jul. 2023

0*Refinement of data in Category 1, and promotion of research and development in Category 1185

ISEKI Report 2024

ISEKI Report 202486