Presentation Materials
for the Fiscal Year Ended February 2024
April 22, 2024

TAKEUCHI MFG. CO., LTD.
(Securities code: 6432)© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

▶ FY2023 Consolidated Results▶ FY2024 Consolidated Forecast▶ Progress of the Third Medium-TermBusiness Plan
▶ Reference Materials

1© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Summary of FY2023 Earnings Results(1) Sales volume growth in both the US and Europe

 North American sales volume increased +6.1% (1st H: +3.6%, 2nd H: +8.8%, YoY)

Although the housing market entered an adjustment phase due to continued high interest rates
and housing prices, latent demand for housing remained strong.
Demand for products remained strong due to firm demand for water and gas pipeline
infrastructure projects.
 European sales volume increased +5.3% (1st H: +7.0%, 2nd H: +3.5%, YoY)
Rising mortgage rates and energy prices pushed down housing demand.
Demand was firm for non-housing-related construction such as infrastructure work andconstruction investment.

 Total sales volume increased +5.7% (1st H: +5.5%, 2nd H: +6.0%, YoY)

(2) Record-high net sales and profits (net sales +18.8%, operating profit +66.3%, YoY)
(Billions of yen)

FY2022

2

FY2023

1Q

2Q

3Q

4Q

Full year

1Q

2Q

3Q

4Q

Full year

Net sales

42.4

43.6

46.8

46.0

178.9

53.0

52.1

53.6

53.7

212.6

Gross profit

9.8

10.1

11.1

11.9

43.0

12.9

12.5

12.9

13.6

52.1

SG&A expenses

4.4

6.1

6.4

4.7

21.8

4.4

4.1

4.3

3.9

16.8

of these,transportation costs

2.6

4.1

4.3

2.7

13.8

2.1

1.5

1.7

1.7

7.1

Operating profit

5.3

3.9

4.6

7.2

21.2

8.5

8.4

8.6

9.6

35.2

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Summary of FY2023 Earnings Results(3) Net Sales, Orders Received, and Order Backlogs by Half Year
■ Net sales (bn)■ Orders received (bn)■ Order backlogs (bn)Orders exceedingproduction capacity>> backlogs increase

105

86

92.9

87.3

105.1
63.4

130.8

107.4

66.6
116.7
Declinedue to COVID-19

74.2
113.1
83.7

41.8 53.1
31.5
End of
Feb.
2020

59

172.8

133.8

128.8

83.7
20.1
End of
Aug.
2020

44.8
End ofFeb.
2021

FY2022

FY2021
End ofAug.
2021

 Order adjustments by both customers and Takeuchi tonormalize accumulated backlogs>> Normal level of order backlogs: 3 to 4 months of sales>> Reduce order backlogs by expanding production
volume and sales volume with new factories

3

190.7

178.6

Normalization oforder backlogs

FY2023End ofFeb.
2024

End of
Aug.
2023

End ofFeb.
2023

End of
Aug.
2022

End ofFeb.
2022

FY2022

FY2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Net sales

42.4

43.6

46.8

46.0

53.0

52.1

53.6

53.7

Orders received

66.5

64.2

47.0

57.9

47.6

39.6

38.2

25.2

Order backlogs

158.0 178.6 178.8 190.7 185.3 172.8 157.4 128.8(Billions of yen)

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Consolidated Financial Highlights for FY2023
FY2022(Millions of yen)

FY2023Full year

Sales ratio

1st half

2nd half

Full year

Sales
ratio

Change(%)

212,627-+33,661+18.8%■

Operating profit

21,221

11.9%

16,96918,32735,29616.6%+14,075+66.3%■

Ordinary profit

21,37911.9%

17,072

18,38235,45516.7%+14,076+65.8%■

Profit attributable to ownersof parent

15,9798.9%

12,67013,47926,14912.3%+10,169+63.6%

Capital investment

8,629

4.8%

4,798

3,272

8,070

3.8%

(558)

(6.5)%

Depreciation

2,039

1.1%

1,285

2,036

3,321

1.6%

+1,282+62.9%

Orders received

235,864-

87,30963,468150,777-(85,086)(36.1)%

Order backlog

190,747-

172,880

128,897

128,897-(61,850)(32.4)%

FY
2020

15,979FY
2019

13,3489,765

10,000

9,091

FY
2020

26,14935,455(Millions of yen)

21,379FY
201918,080FY
2020

21,221FY
201913,29815,00012,40320,00013,20730,00017,76435,00025,000

5,000
FY
2019

FY
2020

FY
2021

FY
2022

Net sales

440,00012,649250,000
225,000
200,000
175,000
150,000
125,000
100,000
75,00050,00025,000035,296

107,451

212,627

105,176

178,966-

140,892

178,966

112,254

Net sales

115,913

■

FY
2023

0

FY
2021

FY
2022

Operating profit

FY
2023

FY
2021

FY
2022

Ordinary profit© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

FY
2023

FY
2021

FY
2022

FY
2023

Profit attributable to owners ofparentQuarterly Net Sales and Operating Profit(Millions of yen)

50,000Net sales

40,00040,89633,332

32,67433,9893Q

4Q

42,414

43,6191Q

2Q

46,892

46,0393Q

4Q

53,03952,13753,65553,795

1Q

2Q

3Q

4Q

8,542

8,426

8,652

1Q

2Q

3Q

4Q

30,00020,00010,0000

1Q

Operatingprofit2Q

10,000
8,000
6,000
4,000

4,202

5,755

4,201

3,604

3Q

4Q

5,355

7,268
3,972

4,623

2Q

3Q

9,674

2,000
0

1Q

Exchange rates

5

2Q

1Q

FY20214Q

FY2022

FY2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

JPY/USD

108.89109.96110.66114.70121.43133.43143.54134.12134.74140.48148.62145.93

JPY/GBP151.26

153.60152.21154.07157.87163.51

166.55163.00165.80179.25183.10185.38JPY/EUR

130.43131.70130.56129.41133.83138.77142.85142.51

146.10154.14158.55

159.56

JPY/RMB

16.45

17.07

17.08

17.90

18.56

19.70

20.11

19.60

19.43

19.66

20.08

20.31

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Earnings by Region for FY2023
FY2022+(Millions of yen)

FY2023■ Japan

2,036

1.1%

1,094

1,015

2,109

1.0%

+73

+3.6%

■ North America

98,50655.0%

56,61058,554

115,16454.2%+16,658+16.9%■ Europe

73,90641.3%

44,31845,12989,44842.1%+15,541+21.0%■ Asia

495

0.3%

60

128

188

0.1%

(307)

(61.9)%■ Others

4,020

2.2%

3,092

2,623

5,715

2.7%

+1,695+42.2%

Total net sales

178,966

100.0%

105,176

107,451

212,627100.0%+33,661+18.8%Net sales overseas

176,93098.9%

104,082

106,435

210,518

99.0%+33,587+19.0%

Full year

89,44873,90665,749

Sales ratio

Change(%)(Millions of yen)

Units sold+5.3%

（from the previous period）

54,988FY
2020

68,706FY
2019

2nd half

Units sold
+6.1%

60,31360,00052,24880,00053,222100,000

1st half

115,164

Sales ratio

98,506

Full year（from the previous period）

6

FY
2020

FY
2021

Europe

FY
2022

FY
2023

5,715

FY
2019

4,020

North America

FY
2023

3,449

FY
2022

2,327

Japan

FY
2021

1,179

FY
2023

188

FY
2022

495

FY
2021

153

2,109

FY
2020

181

2,036

FY
2019

384

2,832

0

2,508

20,000813

40,000

FY
2019

FY
2020

FY
2021

FY
2022

FY
2023

FY
2019

FY
2020

FY
2021

FY
2022

FY
2023

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Asia

OthersGeographic Segment Information and Results for FY2023(Millions of yen)
Japan
USA
UK
FranceChina

FY2022

FY2023Full year

Profit ratio

Net sales

60,658－Segment profit

13,209Net sales

1st half

2nd half

Full year

Profit ratio

Change(%)

36,16639,23875,404－+14,745+24.3%

21.8%

12,45818,26630,724

40.7%+17,514+132.6%

98,506－

56,61858,565

115,183－+16,677+16.9%

Segment profit

9,895

10.0%

5,167

5,703

10,870

9.4%

+974

+9.8%

Net sales

12,130

－

7,488

4,642

12,131

－

+1

+0.0%

Segment profit

1,101

9.1%

842

69

912

7.5%

(189)

(17.2)%Net sales

7,523

－

4,867

4,926

9,794

－

+2,271+30.2%

Segment profit

682

9.1%

520

452

972

9.9%

+290

+42.5%Net sales

147

－

35

78

113

－

(34)

(23.1)%

Segment profit

20

13.8%

26

112

139

123.1%+119+587.4%

̶Japan Segment: (TAKEUCHI MFG. CO., LTD.)• Development and manufacture of construction machinery• Sales of construction machinery in Japan / Sales of construction machinery to distributors in Europe and Asia/Oceania
̶

US Segment: (Takeuchi Mfg. (U.S.), Ltd.)• Sales of construction machinery in the US and Canada• Manufacture of construction machinery in the US̶UK Segment: (Takeuchi Mfg. (U.K.) Ltd.)• Sales of construction machinery in the UK̶France Segment (Takeuchi France S.A.S.)• Sales of construction machinery in France

7̶

China Segment: (Takeuchi Qingdao Mfg. Co., Ltd.)• Sales of construction machinery in China• Manufacture of construction machinery for China and otherparts of Asia
• Manufacture, procurement, and sales of construction
machinery components for the Japan segment© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Factors of Increase/Decrease in Operating Profit (FY2023 Full year)(Millions of yen)
45,000Exchange rates considering unrealized profits*
USD 128.17 yen →138.98 yen
GBP 161.56 yen →167.65 yen
EUR 138.85 yen →153.73 yen

40,000+4,626 (3,474 )

35,000+4,80330,000+7,128
Effect ofincreasedsales

25,00020,00015,00010,0005,000

Priceincreases

Increasein cost(Rawmaterial
price)

Cost of sales +2,256M- Other than US : +1,369M- US +886M
SG&A expenses +406M(2,355 )Start-upof new
factories
(US,
Aoki)

(2,662 )Investment inhuman
capitalEffects of
FOREX
rates

21,221

Transportation costs: -7,118M└ Decrease in unit price: -6,971M└ Increase in shipping volume: +756M└Transfer to COS: -903M+6,100 +812
Others(903 )
Transporta Decreasetion costs in SG&A
for SKD expenses
produc (Excludingtion (COS) effects of

35,296

FOREX
rates rates
and Invest
ment in
Humancapital)Transportation costs└ WIP for SKD production in the U.S.: Inventory→Cost of Sales└ Finished goods for sale to customers: SG&A expenses

FY2022(Full year)
Operating profit+14,075 million yen

FY2023(Full year)
Operating profit*Exchange rates considering unrealized profits: Rates take into account transportation and inventory periods
from Japan to sales subsidiaries in the US, UK, and France.

8© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Consolidated Balance Sheets (As of February 29, 2024)
As of Feb. 28, 2023

Assets(Millions of yen)

Liabilities and Net assets

Composition
ratio

BalanceComposition
ratio

Change(%)

Cash and deposits

43,99527.7%

55,175

27.8%+11,180+25.4%

Notes and accounts receivable - trade35,73922.5%

44,572

22.5%+8,832+24.7%

Inventories

47,72330.1%

58,263

29.4%+10,540+22.1%

Other

3,001

1.9%

3,908

2.0%

+907

+30.2%

Current assets

130,459

82.2%

161,920

81.7%+31,460+24.1%

Non-current assets

28,32617.8%

36,23318.3%+7,907+27.9%

Total

158,785

100.0%

198,153

100.0%+39,367+24.8%

26,75516.9%

36,381

18.4%+9,625+36.0%

9,620

6.1%

13,4906.8%+3,869+40.2%

36,37622.9%

49,872

25.2%+13,495+37.1%

606

0.4%

655

0.3%

+49

+8.1%

Total Liabilities

36,98323.3%

50,52725.5%+13,544+36.6%

Total net assets

121,802

76.7%

147,625

74.5%+25,822+21.2%

Total

158,785

100.0%

198,153

100.0%+39,367+24.8%

Notes and accounts payable - trade

9

Balance

As of Feb. 29, 2024

Other current liabilities
Current liabilities
Non-current liabilities© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Consolidated Statements of Cash Flows (FY2023, Results)(Millions of yen)

(7,771 )Cash and cash
equivalents at end of
period(4,714 )+24,640

54,68243,519As of February 28,
2023
Cash flows from operating activities(991 )+11,162 million yen
Operating CF
ChangeInvestment CF

Financial CF

Cash flows from investing activities

Effect of exchange
rate changes
Change35,455

Net (increase) decrease in term deposits

Depreciation

3,321

Purchase of property, plant andequipment(7,537)

Decrease (increase) in inventories(8,506)

Acquisition of intangible assets(325)

Decrease in working capital

1,612

Proceeds from redemption of securities

100

Income taxes paid

(6,923)
(318)
Total

10

+24,640

Others

(18)

9
Total

As of February 29,2024(Millions of yen)

Cash flows from financing activities

Profit before income taxes

OthersCash and cash
equivalents at end of
periodDividends paid

(4,679)Others(7,771)© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Change(35)
Total(4,714)

▶ FY2023 Consolidated Results▶ FY2024 Consolidated Forecast▶ Progress of the Third Medium-TermBusiness Plan
▶ Reference Materials

11© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

FY2024 Earnings Forecasts (Full Year)(1)

Net sales forecast… Increase
Despite a decline in Europe, performance will remain strong in North America
 North American sales volume increased +17.2% (1st H: +15.6%, 2nd H: +18.9%, YoY) The housing market has softened temporarily, but housing demand is still strong
 Aging infrastructure requires ongoing maintenance work Sales increases expected for compact excavators, hydraulic excavators and track loaders,backed by expanded production capacity from new factories

 European sales volume decreased -10.2% (1st H: -11.0%, 2nd H: -9.4%, YoY) Housing demand will decline due to inflation and interest rate hikes, but infrastructure
work will remain firm Decline in sales volume of compact excavators used in housing construction
 Solid demand projected for hydraulic excavators weighing 6 tonnes or more used ininfrastructure work

 Total sales volume increased +1.0% (1st H: -0.2%, 2nd H: +2.2%, YoY)

(2) Profit forecast … Increase((Operating profit, ordinary profit and net profit)

Factors that could increase profits: Price increases (Europe and North America), sales growth, forex
impact (unrealized profit)
Factors that could reduce profits: Continued rise in raw material prices, investment in human capital(increase in personnel and labor costs), Aoki Factory expenses for full year, ocean freight rates hikes
12© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Expected Consolidated Financial Highlights for FY2024
FY2023Full year
Sales ratio(Millions of yen)

1st half

2nd half

FY2024 (forecast)
Full year
Sales ratio

Change(%)■

Net sales

212,627-

112,000

112,000

224,000-+11,372+5.3%■

Operating profit

35,296

16.6%

21,00017,50038,50017.2%+3,203+9.1%■

Ordinary profit

35,455

16.7%

20,80017,70038,50017.2%+3,044+8.6%■

Profit attributable toowners of parent

26,14912.3%

14,80012,70027,50012.3%+1,350+5.2%

Capital investment

8,070

3.8%

1,794

3,458

5,253

2.3%

(2,817)(34.9)%

Depreciation

3,321

1.6%

1,809

2,196

4,005

1.8%

+683

+20.6%

548.58Dividend
payout
ratio
28.8%

-

-

576.91+28.33

+5.2%

-

-

200.00

Dividend
payout ratio
34.7%+42.00+26.6%

Earnings per share(yen)
Dividends per share(yen)

158.0060,00040,00020,0000

13

Net sales
1st H
2nd H
FY2023

1st H
2nd H
FY2024

1st H
2nd H
FY2023

1st H
2nd H
FY2024

Ordinary profit
1st H
2nd H
FY2023

1st H
2nd H
FY2024© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

12,70014,80013,47917,70020,80018,382

17,072

17,50021,000Operatingprofit(Millions of yen)

12,67080,00018,327100,000

22,50020,00017,50015,00012,50010,000
7,500
5,000
2,500
0

16,969112,000

112,000

107,451

120,000

105,176

Including a commemorative dividend of 5 yen for the60th anniversary of the company's founding

Profit attributableto owners of parent
1st H
2nd H
FY2023

1st H
2nd H
FY2024

Earnings Forecast by Region for FY2024
FY2023Full year
Sales ratio(Millions of yen)

2nd half

Change

(%)

680

620

1,300

0.6%

(809)

(38.4)%■ North America

115,16454.2%

64,58066,240130,820

58.4%+15,655+13.6%■ Europe

89,44842.1%

44,03042,75086,78038.7%(2,668)(3.0)%■ Asia

188

0.1%

70

60

130

0.1%

(58)

(31.2)%■ Others

5,715

2.7%

2,640

2,330

4,970

2.2%

(745)

(13.0)%

Total net sales

212,627100.0%

112,000

112,000

224,000

100.0%+11,372+5.3%

JPY/USD

143.25-140.00140.00140.00-(3.25)-

JPY/GBP

177.55-180.00180.00180.00

-

+2.45

-

JPY/EUR

155.05-153.00153.00153.00-(2.05)-

JPY/RMB

19.87

-

19.50

19.50

19.50

-

(0.37)-+/-1 yen/USD±414 million yen+/-1 yen/GBP±28 million yen+/-1 yen/EUR±10 million yen*Profit increase with yen depreciation

14

1st H
2nd H
FY2023

1st H
2nd H
FY2024

1st H 2nd H
FY2023

1st H 2nd H
FY2024（from the previous period）
1st H
2nd H
FY2023

1st H
2nd H
FY2024

1st H
2nd H
FY2023© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

1st H
2nd H
FY2024

1st H 2nd H
FY2023

2,330（from the previous period）

3,092

Units sold(10.2)%

Others60

Units sold+17.2%

Asia

70

Europe

128

620

680

0

1,015

10,0001,094

20,000

North America

60

Japan

30,0002,640

40,0002,623

42,75044,03050,00045,12960,000Foreign exchange sensitivity(operating profit/12 months)
44,31856,610(Millions of yen)

66,2401.0%

64,5802,109

58,554■ Japan

1st half

FY2024 (forecast)
Full year
Sales ratio

1st H 2nd H
FY2024

Factors of Increase/Decrease in Operating Profit (FY2024 Full Year Forecast)(Millions of yen)

50,000Exchange rates considering unrealized profits*
USD 138.98 yen →142.88 yen
GBP 167.65 yen →185.01 yen
EUR 153.73 yen →156.07 yen+4,21745,000+3,55540,000+1,963

Effect ofincreased
Effects of
sales
FOREX
rates

35,00030,000Price
increases(944)
Increasein cost(Rawmaterial
price)

Cost of sales +671M- Other than US : +461M- US +210M
SG&A expenses +418M

Investment inhuman
capital35,29615,000

Product warranty costs: +847M

Transportationcosts for Increase in
SG&A
SKD
expenses
produc(Excludingtioneffects of
(COS)
FOREX
rates andInvestment in
Humancapital)(642)
Others38,500Transportation costs

10,0005,000└ Increase in unit price: +2,100M└ Transfer to COS : -500M(487) (1,089)(500) (2,870)

Depreciation ofAoki
factory,
etc.

25,00020,000Transportation costs: +1,641M└ WIP for SKD production in the U.S.: Inventory→Cost of Sales└ Finished goods for sale to customers: SG&A expenses

FY2023(Full year)
Operating profit+3,203 million yen

FY2024(Full year)
Operating profit*Exchange rates considering unrealized profits: Rates take into account transportation and inventory periods
from Japan to sales subsidiaries in the US, UK, and France.

15© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

▶ FY2023 Consolidated Results▶ FY2024 Consolidated Forecast▶ Progress of the Third Medium-TermBusiness Plan
▶ Reference Materials

16© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Slogans, numerical targets
Net sales（left）
Operating profit (right)

Increase Sales by 100 billion Yen
by Power Up, Speed Up, and Scale Up

250.0(Increase consolidated net sales from
140.8 billion yen to 240.0 billion yen)

Forecast

MTP targets
April 12, 2024

Change(16.0) bn

Operating profit

38.5 bn24.0 bn+14.5 bn

+7.2 pts

576.91377.00+199.91

17~18％

14.0％-

JPY/USD

140.00115.00+25.00JPY/GBP

180.00152.00+28.00JPY/EUR

153.00127.00+26.00JPY/RMB

19.50

18.00

+1.50

Earnings per share (yen)ROE

Note: Based on the following CAPM formula, we recognize a cost of equity of 8%.
Risk free rate (1%) + beta (1.2) × Market risk premium (6%)

17

40.0

35.2

178.9

240.0 bn
10.0%

240.0

38.5bn200.0

224.0 bn
17.2%

(Average growth rate)

212.6

Net sales└ ratio+59.0%+16.7%

224.0bn

Consolidated Financial results for
FY2024
April 12, 2024

Net sales
CAGR

150.0

30.0

140.8
24.0
21.2

100.0

Operatingprofit ratio

17.7

20.0

16.6% 17.2%

12.6% 11.9%

10.0%
10.0

50.0

3rd MTP
0.0

FY2021 FY2022 FY2023 FY2024(Forecast)© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

FY2024(MTP)

0.0

Our Position in the Marketplace
Track Loaders

6 tonnes

15 tonnes

20 tonnes

30 tonnes
Volume zone for large
construction machinery

Sales zone for our products

Typical applications of our products
Urban and small-scale civil engineering work
(mainly in residential areas)

Strengths of Takeuchi’s products

Deeply involved innecessities of life Housing (foundation work) Transportation infrastructure (community roads)
 Lifelines (water, sewer, gas, electricity) Construction investment (factories, commercial facilities, hotels)
 Urban greening (landscaping, tree planting, gardening) Disaster recovery (earthquakes, typhoons, hurricanes, wildfires)
 Other (agriculture, forestry, demolition)

Creating and expanding Takeuchi fans withunique added value
18

Product weight

Hydraulic excavators

Compact excavators© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Safety First

Medium- to Long-Term Outlook (Existing Solid Product Demand)
Housing

Electricity

Gas

Sewer

Communication networks

Transportation

Infrastructure is aging in many countries,
and maintenance work is required.

Infrastructure (Lifelines)
 US

Faced the aging problem in the 1980s, as infrastructuredevelopment took place under the New Deal of the 1930s.

 Europe

In Europe, which has many historical towns, infrastructure is
aging in the majority of EU countries. Notably, there is a
rapidly increasing need for sewer repairs, which have been
financially neglected.

19

Our products arean essential part of everyday life.

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

US Housing Starts
Source: U.S. Census Bureau, Department of Commerce
Annualized averages(Thousand units)

1,606

1,342

928

900

1,001

1,205

1,177

1,107

1,247

1,292

US housing still strong
despite slowdown
in 2023586

612

COVID-19
pandemic

Start of financial crisis in Sept.
2008 led to housing demandbottoming out in 2009-2011
2008

2009

2010

2011

2012

2013

Even minor cuts to mortgage rates draw apositive response. If the rate reduction is more
substantial, housing starts will probably turnback upward due to pent-up demand.

2014

1,750
1,500

--From comment by chairman of National Association ofHome Builders (NAHB)

1,250

Housing demand is strong

1,000(Only postponed → Will eventually recover)

750

20

1,423

1,397

784
554

2007

1,551

2015

2016

2017

2018

2019

2020

2021

2022

2023

Monthly Figures for Jan. 2023 to Mar. 2024 (Thousand units)
1,583
1,436

1,340

2023

1,348

1,380

1,418

1,460
1,560

1,372
1,283
1,447
1,358

2023 average＝1,423 thousand units

1,521
1,321

1,331

2024

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Medium- to Long-Term Outlook (Projected Product Demand)
 Green Transformation (GX)
(Social and economic transformation toward decarbonization)

 From fossil fuel-derived energy to renewable energy(Innovation of power generation infrastructure)

Increasing demand forinfrastructure construction
New construction
machinery demand21

 Expansion of electric power demand(expansion of power transmission andcharging infrastructure)e.g., EVs and electric construction machinery© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Power Up

Investment in Human Capital

Basic Policy: ̶ Human capital is the source of corporate strength, anddistributing to human capital is an investment in the future.
̶ Securing the human resources necessary to achieve the goalof the Medium-Term Business Planin labor costs in FY2024 compared to FY2021
 Investment amount in Human Capital *Increase(Manufacturing costs, SG&A expenses)

The 3rd MTP(April 12, 2022)

Increasing workforce: 3.4 bn (MTP: 2.3 bn)

Expected amountFor business growth
To create excess workforce capacity(April 12, 2024)

3.8 bn 5.6 bn(allow a margin for education and work-life balance)

Raising wages and salaries: 1.5 bn (MTP: 1.5 bn)
Exchange rates: 0.7 bn

As of February 28, 2022
Employees

Temp staff*

Takeuchi MFG

557

386

Takeuchi US

125

OthersTotal

As of February 29, 2024

Total

Employees

Temp staff*

Total

Change

943

674

495

1,169

+226

2

127

272

4

276

+149

235

39

274

252

22

274

0

917

426

1,343

1,198

521

1,719

+376

*Temp staff: permanent part-timers, part-timers, temporary employees from staffing agencies, seasonal employees, etc.

22

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Speed Up

Speed Up Product Development

 Connected Improving customer satisfaction by adding features to TFM and Takeuchi Connect
 Autonomous Implementation of “a feature to perform some tasks automatically”
 Sharing & Services
 Electric
Expansion of battery powered excavator lineup
Development of battery powered track loaders

Open Innovation

Track loaders

1. Electrification of compact excavators
2. Hydraulic excavators and track loaders to follow

Compact excavators

Hydraulic excavators

6 tonnes

15 tonnes

Aim to have a range of under-6-tonne battery powered excavators
23© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Product weight

In research and development of advanced technologies forelectrification and automation, we will work with other companies andcollaborate with Academia

Speed Up

Acceleration of Product Development

 Expanding lineup of battery-powered compact excavators
1-tonne class and 3.5-tonnes class→ Demonstrations with prototype models have begun in Japan/Europe/North America
Note: Start of sales is yet to be determined

1 tonne2 tonnes

3.5 tonnes

TB10e

TB20e

TB35e

(Demonstration
under way)

(On sale)(Demonstration
under way)

 Remote operation of construction machinery
Started demonstrations in Japan/Europe/North America
INTERMAT Paris 2024
(April 24-27)

 Demand exists for work in hazardous areas(tunnel construction, work on cliff edges,
disaster recovery, etc.)

24

TB20e

Remote operation at construction sites within view© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

TB20e Among First Certified GX Construction Machines (MLIT) Challenges in electrifying construction machinery
1.
2.
3.
4.

Battery cost reduction – More expensive than diesel (generally 2-3 times)
Battery performance improvement – Longer operating time, shorter charging time
Charging infrastructure development – Insufficient in urban areas, virtually nonexistent in mountainous regions
Creating low-GHG power infrastructure – Current infrastructure leads to indirect emissions (Scope 2) whencharging Decarbonization Promotion Project (Ministry of the Environment) Project to promote electrification of construction machinery(cooperative project between METI and MLIT)
Project Goal:
Provide assistance for electrification of construction machinery, createmodel cases for construction with electric machinery at various sites,
and gain the knowledge necessary for promoting the widespread use ofelectric construction machinery.

Project Description:

Assist businesses that introduce GX construction machinery certified by the
Ministry of Land, Infrastructure, Transport and Tourism (MLIT) by subsidizing
part of the cost of introducing such machinery and charging equipment, andcreate model cases for use of electric construction machinery at various sites.

TB20e lithium-ion batterypowered compact excavator

Subsidy Rate:
2/3 of the cost difference compared with diesel-powered equipmentin the same weight class
Source: Ministry of the Environment https://www.env.go.jp/content/000182713.pdf#page=5 (Japanese)25© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Certification label

Scale Up

Expansion of Production Capacity and Sales Volume

 Production Capacity■ Track loaders■ Excavators (compact, hydraulic)

100%

100%

100%

100%

138%
125%

148%
140%

Track loaders
US Factory started production of track loaders
using SKD* method in September 2022.
* Semi knock down: a production method inwhich the product is assembled at Home
Office Factory until ready for driving. Finishingis completed at US Factory.

◇ August 2024

Production capacity of US Factory will reach target

140%
100%

FY2021

FY2022

FY2022100.0%
26

109.1%

Excavators (compact, hydraulic)
Aoki Factory began production of mediumweight class excavators (4-9 tonnes) in
September 2023.

100%

 Sales Volume
FY2021150%

FY2023

FY2024(MTBP target)

FY2023

FY2024115.3%

116.5%

Consolidated sales volume withFY2021 as 100%

◇ August 2024

Production capacity of Aoki Factory will reach target

Softening of markets in UK and Europe
We are necessarily cautious in our sales volume projection
for FY2024 due to slumping personal consumption (housing
market).

→ Expand sales by fully utilizing production capacity© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Initiatives in the US and Europe
Dealer Summit at Takeuchi US (held in Texas)◇ When: March 25-26, 2024
◇ Number of participants: 52 companies (85 people) + 25 Takeuchi US staff

Dealer of the year

INTERMAT Paris 2024

Held once every 3 years; cancelled in 2021 due to pandemic◇ When: April 24-27, 2024
◇ Exhibiting companies: Approx. 1,000 (2024, est.)◇ Visitors: 173,300 people (2018, actual)

Takeuchi France◇ Exhibiting 20 models (nearly all models handled by TFR)
(including battery-powered excavators and track loaders)◇ Demonstration of remote operation with TB20e→ Showcasing the high performance and enhanced valueof our products27© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Takeuchi France exhibit

Capital Investment Plan
(Millions of yen)

Capital investment

10,000Depreciation

8,629
8,000

8,070

6,000

5,253
4,420

1,676

1,586

2,039

FY2020

FY2021

FY2022

4,005

3,321

FY2023◇ FY2023 Capital Investment Breakdown

Jigs, molds, and equipment maintenanceand renewal
1.3 bnHome office parts center renewal & expansion 1.0 bn
Factory expansion & production streamlining 0.8 bn
Safety reinforcement, workplace improvements 0.4 bn

Employeedormitories¥0.7 bn

One building in Ueda, Nagano Prefecture

Takeuchi US¥0.5 bn

Expansion of US Factory, sales promotion, IT investment

Other¥0.5 bn

Total¥5.2 bn

Jan. 2020

Mar. 2021

FY2024Home Office¥1.1 bnJigs, molds, prototypes, and equipment
maintenance and renewal

Aoki Factory¥5.0 bn

This fiscal year: ¥5.0 bn
Until previous fiscal year: ¥6.0 bn

Employeedormitories¥0.9 bn

Two buildings on land adjacent to Home
Office Factory and Aoki Factory

US Factory¥1.0 bn

Solar panels (Takeuchi US home office and
US Factory); Production facilities andpainting facilities (US Factory)

Total¥8.0 bn28¥3.5 bn

FY2021
Takeuchi US warehouse extension (¥0.54 bn) US Training Center (¥0.5 bn)

1,734

0

Home Office
Aoki Factory

FY2020

4,000

2,000

◇ FY2024 Capital Investment Plan Breakdown

FY2022
US Factory (approx. ¥4.7 bn)
Sep. 2022© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

FY2023 【New】
Aoki Factory (approx. ¥11.0 bn)
Sep. 2023

Management with Cost of Capital and Stock Price in Mind
Cost of Equity① Roughly capture the return (%) expected by shareholders/investors

We recognize cost of equity to be 8%

CAPM

Risk-freerate

Beta valueMarket risk
premium

1%

1.2

6%

② Set cost of equity at the hurdle rate of ROE (ROE＞Cost of equity)
22.0%

(ROE)

Future Tasks

19.4%

20.0%

① Quantitatively explain our growth strategy

18.0%
16.0%

12.0%

Approx.
forecast

13.8% 14.1%

14.0%

11.3% 11.3%→ Disclosure of cash allocation policy②

Share our management vision with stakeholders to help
them understand the sustainability of business growth

Cost of Equity 8%

8.0%

29

returns, internal reserves)

17-18%

10.0%

6.0%

├ Sales targets, profit targets, capital efficiency, etc.
└ Profit distribution (growth investment, shareholder

FY2019FY2020

FY2021

FY2022

FY2023

FY2024

Cost of equity will decline as a resultof high-quality information disclosure.

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Shareholder Return and Dividend Payout Ratio
Strive to maintain a stable dividend payout with a target consolidated dividend payout
ratio of 30% in mind, while securing the internal reserves necessary to strengthen the
management structure and develop future businesses
Share buybacks: Implement share buybacks as appropriate, taking into consideration stock price levels,
capital efficiency, and other factors.

Basic Policy:

225
 Dividend per share and consolidated dividend payout ratio
60th Anniversary
Commemorative
dividend

200
175

5

150

25

Consolidated
dividend payout
ratio

98

100

50

158
153

125

75

200

68

50

53

26.2%

25.9%

24.3%

FY2019FY2020

FY2021

40.0%

29.2%

28.8%

FY2022

FY2023

34.7%

20.0%

0

30

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

30.0%

FY2024(Forecast)

10.0%

▶ FY2023 Consolidated Results▶ FY2024 Consolidated Forecast▶ Progress of the Third Medium-TermBusiness Plan
▶ Reference Materials

31© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Corporate Policies and Business Philosophy

Corporate
Policies

CreationWith deep sensitivity, we will develop products thatmeet or exceed needs.

Challenge

With dreams and youthful drive, we will take bold
action toward higher goals.

Cooperation

With a commitment to harmony and compassion, we
will strive for well-balanced coexistence with society.

Business Philosophy

From World First to World Leader,
We will pursue manufacturing excellence by working hard in the spirit of Creation,
Challenge, and Cooperation.
With a global perspective and awareness, we will provide products and services that are
trusted by our customers.
Leveraging the abilities of every employee, we will help to create an environmentallyfriendly, prosperous society.
32© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Corporate Profile
Name

TAKEUCHI MFG. CO., LTD.

Representative

Toshiya Takeuchi
President and Representative Director

Home Office

205, Uwadaira, Sakaki-machi,
Hanishina-gun, Nagano Japan

Established

August 21, 1963

Accounting Period

February

Capital3,632 million yen（As of February 29, 2024)

Sales (Consolidated)

212,627 million yen（FY2023）

Employees (Consolidated) 1,198（As of February 29, 2024)
Listed Market
Subsidiaries

33

Tokyo Stock Exchange, Prime Market,
Securities code: 6432
US

Takeuchi Mfg. (U.S.), Ltd.
(Established February 1979）

UK

Takeuchi Mfg. (U.K.) Ltd.
(Established October 1996）

FranceTakeuchi France S.A.S.
(Established May 2000）

China

Takeuchi Qingdao Mfg. Co., Ltd.
(Established April 2005）

Main ProductsCompact excavators and hydraulicexcavators
̶ We developed and began production of theworld’s first compact excavator (September
1971)̶ Compact excavators: Products weighing lessthan 6 tonnes
̶ Hydraulic excavators: Products weighing 6
tonnes or more
Main applications
̶ Foundation work for housing construction
̶ Piping work for water, gas and other supplies
̶ Landscaping work to plant trees in parks andgardens̶ Demolition and renovations of dilapidated
buildings

Track Loaders̶ We developed and began production of theworld’s first track loader (September 1986)̶ Faster traveling speed thancompact/hydraulic excavators, suitable fortransportation work̶ Demand and sales mostly in North America

Main applications
̶ Transportation of earth and sand excavatedby compact excavators
̶ Excavating and leveling the ground̶ Various operations are possible by changing
the bucket© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Business Performances(Millions of yen)

FY2021

FY2022

FY2023

Forecast
FY2024
Change1,300(809)
130,820+15,655
86,780(2,668)
130
(58)
4,970
(745)
224,000+11,372
38,500+3,20338,500+3,044FY2019FY2020

Japan
North America
EuropeAsia
Others
Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent
Earnings per share (yen)Dividends per share (yen)JPY/USD1 (yen)JPY/GBP1(yen)JPY/EUR1(yen)JPY/RMB1(yen)813
53,22260,313384
1,179
115,913
12,64912,403

2,508
52,24854,988181
2,327
112,254
13,207
13,2982,832
68,70665,749153
3,449
140,892
17,76418,0802,036
98,50673,906495
4,020
178,966
21,221
21,3792,109
115,164
89,448
188
5,715
212,627
35,29635,455

9,091

9,765

13,34815,97926,14927,500+1,350190.6450.00
109.21139.49121.4615.82

204.7853.00
106.13137.88122.91
15.41

279.91
68.00
111.72153.06130.5717.12

335.1998.00
133.12
162.58139.81
19.49

548.58158.00143.25177.55155.0519.87

576.91200.00140.00180.00153.0019.50+28.33+42.00(3.25)+2.45(2.05)(0.37)Net assets
Total assets
Equity ratio
ROE2
ROA3

83,683
108,982
76.8%
11.3%
11.7%

89,908
115,525
77.8%
11.3%
11.8%

104,083
137,201
75.9%
13.8%
14.3%

121,802
158,785
76.7%
14.1%
14.4%

147,625
198,153
74.5%
19.4%
19.9%

*1 Exchange rates are the average rates for the 12-month period.
*2 ROE (Return on Equity) = Net profit / Net assets × 100 (Net assets are the average of the beginning and the end of the period)*3 ROA (Return on Assets) = Ordinary profit / Total assets × 100 (Total assets are the average of the beginning and the end of the period)34© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Product Lineup
2

3

4

5

Compact excavators andhydraulic excavators

Compact excavators

Battery operated

TB20e

Standard models

TB219

TB235-2

TB250-2

TB240

TB260

TB257FR
TB325RTB217R

TL6R

Launched
March 2023
TL10V-2

TL8R-2

TL12R-2
TL12V-2

35

Launched
March 2023
TB280FR

TB350R

TB335RTB2150R

TB395W
TB370

FR series & Short tail swing models

Crawler Dumper

15 (tonnes)

TB290-2

TB230

Track Loaders

9

TB290

Launched
October 2023

TB215R

8

Hydraulic excavators

TB225
TB320

TB210R

7

TB2150

TB216[From now on] Priority will begiven to electrification ofcompact excavators (weighing
less than 6 tonnes)

6

～
～

1

TCR50-2© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

TB320(2 tonnes)

NewMarket Outlook
350

S&P/Case-Shiller Home Price Index<20-city composite Jan. 2000=100>
300

250

200

150

Jan.
Mar.
May
July
Sept.
Nov.
Jan.
Mar.
May
July
Sept.
Nov.
Jan.
Mar.
May
July
Sept.
Nov.
Jan.
Mar.
May
July
Sept.
Nov.
Jan.
Mar.
May
July
Sept.
Nov.
Jan.
Mar.
May.
Jul.
Sep.
Nov.
Jan.
Mar.

*seasonally adjusted

2018

2019

2020

2021

2022

2023

2024
(source) S&P

36© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

Market Outlook̶̶̶From February to April 2020, housing demand plummeted due to the COVID-19 pandemic.
Since May 2020, economic activity has resumed, achieving a V-shaped recovery and maintaining a high level after that.
Since March 2022, demand for housing had been weak due to US interest rate hikes, but the demand remains firm andrecovered gradually in 2023.

(10,000 houses)(10,000 houses)

US Building Permits(seasonally adjusted)

200
180

180

160

160

140

140

120

120

100

100

80

80
2020

60

37

2021

Jan Feb Mar Apr May Jun

2022

US Housing Starts(seasonally adjusted)

200

2023

2020

2024

Jul Aug Sep Oct Nov Dec

60

2021

Jan Feb Mar Apr May Jun© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

2022

2023

2024

Jul Aug Sep Oct Nov Dec

Production Volume Trends
By Month

By Fiscal Year
Decrease in operatingdays due to Golden
Week holidays

125%

Mar
104%

Apr
91%

May
82%

Jun
102%

Decrease inoperating days due
to summer vacation
Jul
93%

Aug
82%

Sep
97%

Oct
110%

Decrease inoperating days due
to year-end vacation

Nov
113%

Dec
106%

Jan
90%

Feb
99%

120%
100%

100%

111%
100%

99%

FY2021

FY202280%

March 2021
＝100％

60%

75%

40%
20%

50%

Mar Apr May Jun
FY202138

Jul

Aug Sep Oct Nov Dec Jan Feb
FY2022

FY2023© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

0%

FY2021=100%

FY2023

List of Material Issues
#

E

1

○

S

G

SDGs

13

2

○

13
7

Social Issues

Mitigate climate change

13

3

○

4

○

12

5

○

12 13

6

○

7

○

8

Theme

6

Realizing a circular economy

12
12

1

Reducing GHG emissions at factories

2

Improving factory energy efficiency
Expanding the use of renewable energy

2

3R factory initiatives
Develop, manufacture and sell construction machinery with reduced environmental impact

1

Reducing our environmental
Reducing chemical emissions and wastewater from factories
impactPreventing pollution
Managing chemical substances Complying with SDSs, REACH regulations, and RoHS Directive

8

○

Goal

Develop, manufacture, and sell battery-powered compact excavators

Sustainable urban development

Improving productivity and work efficiency at sites where construction machinery is operated, by developing products that precisely meetmarket needs.

9

○

11

10

○

8

11

○

10 16

12

○

10 16

13

○

3

Occupational health and safety
Elimination of work-related accidents and promotion of health management
Employees' health

3

14

○

4

Human resources

Promotion of human resources development

4

15

○

16

○

17

Developing, manufacturing, and selling construction machinery that contributes to building and maintaining resilient cities and infrastructure
Dealing responsibly withcustomers
Respect for human rights
Effective labor practices

Strengthening connections with end users by increasing the amount of information on products and services
Eliminating employment discrimination (employment of handicapped person, etc.)
Prevention of harassment (harassment prevention education)

5

8

Promoting work-life balance

Encouraging the use of internal systems, such as childcare and nursing care leave, and shorter working hours

5

5

8

Promoting female participation

Diversity (promotion of women and foreigners)

7

○

4

16

Developing the next generation
Factory tours at Takeuchi (nonconsolidated), sending out lecturers, and cooperating with special needs schools
in the community

12

6

12

Establishing and implementing a CSR procurement policy
Establishing an environmentallyand socially conscious supply
Asking suppliers to agree to our CSR procurement policy
chain
Dismantling, collecting, and recycling at the stage of product disposal

4

○

18

○

○

8

19

○

○

8

20

○

12

21

○

16

Compliance

Compliance with laws and regulations, and the exclusion of Organized Crime (implementation of education)

22

○

16

Corporate Governance

Strengthening global governance

23

○

16

Risk management

Crisis management systems, BCPs, and information security（IT-BCP）

39

4© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

6

Climate Change Initiatives (Response Measures)
Risk Items
Impact classification(Large, Medium)

Assumptions
and background for2030年の想定・背景
scenario)
2030(2℃（２℃シナリオ）

Influencing Factor(Parameters):Direction of Change

Large
influence

Business Impact/Financial Impact
Rise in steel
pricesIntroduce &expand carbon tax

Carbon price

Carbon price(Material prices)

Rise in rubber
pricesRise in costof salesMediuminfluence

Smallinfluence

Measures

L

Pass-through to
price

Rise in glass raw
material prices

Electricity
shortage
International carbon
emission targets/policies

Strengthening
decarbonization
policies

Transition to low
GHG emission
technologies

Transition to
low- GHG
technology•Stricter emission
regulations• Changes incustomer interests

Stricter emission
regulations for our
products
Demand shift to
low-GHG
products

Investors' trends
Direct link between
climate actions andcorporate reputations
Public reputation

40

Tighter GHG
regulations in the
shipping industry

Low-GHG products(EV, VCV,
Clean-diesel)

Electricity charges

Fuel price
Emission offset

Rise in electricity
usage fee

Rise in costs andSG&A

L

Rise in shipping
costs

Rise in SG&A

R&D expenses
Capital investment

Rise in fixed
costs

Rise in cost of
sales

Sales ratio of lowGHG products

Decrease insales of diesel
products

Decrease inrevenue

Increase in salesof low-GHG
products

Increase inrevenue

Cost of new lowGHG vessels

Stock priceInvestment
selection by
climate actions

N/A

Employment
selection by
climate actions

N/A

Debt cost
Acquisition of
excellent HR© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

S

Increase in costof capital

Decline incompetitivens

Energy saving
Energy creation
Renewable Energy

Local production,
Local
consumption

M

LL◇ Electrification◇ Low GHG fuel◇ Fuel economy
improvement

M

M

Enhancing climate
actions andinformation disclosure

TAKEUCHI MFG. CO., LTD.

Corporate Planning Section and ESG Promotion Section,
Business Management Dept.
TEL: +81-(0)268-81-1200
FAX: +81-(0)268-81-1127
E-mail: ir@takeuchi-mfg.com
Forecasts are based on information that was available when this document was
prepared. The forecast is vulnerable to many uncertainties including, but not limited to,changes in demand and other aspects of market conditions and foreign exchange rate
fluctuations.
Consequently, the actual results of operations could differ significantly from thisforecast because of changes in a variety of factors.

41© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.

© 2024 Takeuchi Manufacturing [JAPAN], Ltd. All Rights Reserved.