Presentation Materials
for the Fiscal Year Ended February 2023
April 24, 2023

TAKEUCHI MFG. CO., LTD.
(Securities code: 6432)
Copyright© TAKEUCHI MFG. CO., LTD. All rights reserved▶ FY2022 Consolidated Results▶ FY2023 Consolidated Forecast▶ Progress of the Third MediumTerm Business Plan
▶ Reference Materials
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved1Summary of FY2022 Earnings Results(1) Robust product demand drives significant sales volume growth in both the US and Europe⚫ North American sales volume increased +15.5%⚫ European sales volume increased +4.7%⚫ Total sales volume increased + 9.1%

(1st H: +24.1%, 2nd H: +7.5%, YoY)
(1st H : -10.2%, 2nd H : +25.3%, YoY)
(1st H : +2.7%, 2nd H : +16.6%, YoY)

(2) Record-high net sales and profits (net sales +27.0%, operating profit +19.5%, YoY)
⚫ Despite a softened housing market due to rising interest rates and material shortages, productdemand remained strong.
⚫ Demand continued to boom for water and gas pipeline infrastructure projects in both the US andEurope.
⚫ Despite factors that reduced profits, such as rising raw material prices and soaring transportation
costs, significant profit growth was achieved through higher sales, product price increases, and theimpact of foreign exchange (forex) fluctuations.

Transportation costs softened starting in 4Q(Billions of yen)

FY2021
1Q

2Q

3Q

FY2022
4Q

Full

1Q

2Q

3Q

4Q

Full

SG&A expenses

2.9

3.1

3.1

3.3

12.5

4.4

6.1

6.4

4.7

21.8

of these, transportation costs

1.3

1.5

1.5

1.7

6.2

2.6

4.1

4.3

2.7

13.8

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved2Summary of FY2022 Earnings Results(3) Sustained high level of orders received(Billions of yen)

FY2021

1Q

2Q

3Q

FY2022

4Q

Full

1Q

2Q

3Q

4Q

Full

Orders received

60.1

52.9

63.5

53.1

229.8

66.5

64.2

47.0

57.9

235.8

Order backlog

71.7

83.7

114.7

133.8

—

158.0

178.6

178.8

190.7

—

(4) Shortage of electronic components for some models (since August 2021)
Takeuchi

Subsidiaries & Distributors
Sea freight (2-3 months)

Work in process (WIP)(electronic components
not yet installed)

Electronic
components

Dealers↓
End users

Air freight (1-2 weeks)
Finished products(electronic components
installed locally)

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved3Consolidated Financial Highlights for FY2022
FY2021(Millions of yen)

FY2022

Full year

Sales ratio

1st half

2nd half

Full year

Sales
ratio

Change(%)

92,932

178,966—+38,074+27.0%■

Operating profit

17,764

12.6%

9,328

11,892

21,221

11.9%+3,456+19.5%■

Ordinary profit

18,08012.8%

10,33911,03921,37911.9%+3,298+18.2%■

Profit attributable to ownersof parent

13,348

9.5%

7,663

8,316

15,9798.9%+2,631+19.7%

Capital investment

4,420

3.1%

4,959

3,670

8,629

4.8%

+4,209+95.2%

Depreciation

1,586

1.1%

780

1,258

2,039

1.1%

+452

+28.5%

Orders received

229,862—

130,833

105,030

235,864—+6,002+2.6%

Order backlog

133,849—

178,649

190,747

190,747—+56,898+42.5%

FY
2019

FY
2020

15,97913,3489,765

10,0009,091

11,391

21,37921,221

18,08013,298FY
2020

15,496FY
201912,40315,00017,76420,00013,20725,00012,649(Millions of yen)

15,411200,000
175,000
150,000
125,000
100,000
75,00050,00025,0000178,966

86,033140,892—

112,254

140,892

115,913

Net sales

110,175

■

5,000
FY
2018

FY
2019

FY
2020

FY
2021

Net sales

FY
2022

0

FY
2018

FY
2021

Operating profit

FY
2022

FY
2018

FY
2019

FY
2020

FY
2021

Ordinary profit

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

FY
2022

FY
2018

FY
2021

FY
2022

Profit attributable to owners ofparent4

Quarterly Net Sales and Operating Profit(Millions of yen)
50,00040,89640,000Net sales

30,00025,73727,44028,9091Q

2Q

3Q

30,167

4Q

33,332

32,67433,9893Q

4Q

42,414

43,6191Q

2Q

46,892

46,0393Q

4Q

20,00010,000
0

1Q

2Q

7,268

8,000

Operatingprofit

5,755

6,000
4,000

2,976

3,837

3,225

3,167

3Q

4Q

4,202

5,355
4,201

3,972

3,604

4,623

2,000
0

1Q

Exchange rates

2Q

1Q

2Q

FY2020

3Q

4Q

1Q

2Q

FY2021

3Q

4Q

FY2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

JPY/USD

108.44106.90105.19104.01108.89109.96110.66114.70121.43133.43143.54134.12

JPY/GBP

135.64133.65136.89140.48151.26

153.60152.21154.07157.87163.51

166.55163.00JPY/EUR

120.10120.70123.89125.77130.43131.70130.56129.41133.83138.77142.85142.51

JPY/RMB

15.50

15.10

15.28

15.76

16.45

17.07

17.08

17.90

18.56

19.70

20.11

19.60

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

5

Financial Results by Region for FY2022
FY2021+(Millions of yen)

FY2022

Sales ratio

1st half■ Japan

2,832

2.1%

1,156

879

2,036

1.1%

(795)

(28.1%)■ North America

68,70648.8%

47,19251,31398,50655.0%+29,800+43.4%■ Europe

65,74946.7%

35,41838,48873,90641.3%+8,157+12.4%■ Asia

153

0.1%

277

218

495

0.3%

+342

+222.8%■ Others

3,449

2.4%

1,987

2,032

4,020

2.2%

+570

+16.5%

Total net sales

140,892

100.0%

86,03392,932

178,966

100.0%+38,074+27.0%Net sales overseas

138,060

98.0%

84,876

92,053

176,93098.9%+38,870+28.2%

Change(%)

Units sold
+4.7%
73,90665,749FY
2020

Sales ratio(Millions of yen)（from the previous period）

54,988FY
2019

Full year

Units sold
+15.5%

55,561

52,24860,00053,222

50,69680,00068,706

100,000

2nd half

60,31398,506

Full year（from the previous period）

Japan

North America

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

4,020

FY
2022

3,449

FY
2021

2,327

FY
2018

1,179

FY
2022

1,977

FY
2021

495

2,036

FY
2020

153

2,832

FY
2019

181

2,508

FY
2018

384

813

0

940

20,0001,000

40,000

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

EuropeCopyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Asia

Others6

Geographic Segment Information and Results for FY2022(Millions of yen)
Japan

USA

UK

FranceChina

FY2021

FY2022

Full year

Profit ratio

Net sales

48,981—

Segment profit

12,449Net sales

1st half

2nd half

Full year

Profit ratio

Change(%)

29,44831,21060,658—+11,677+23.8%

25.4%

5,739

7,469

13,209

21.8%

+760

+6.1%

68,712—47,19251,31398,506—+29,793+43.4%

Segment profit

6,345

9.2%

4,980

4,915

9,895

10.0%

+3,550+56.0%Net sales

13,923

—

6,022

6,107

12,130—(1,793)(12.9%)

Segment profit

1,256

9.0%

510

591

1,101

9.1%

(155)

(12.3%)Net sales

9,207

—

3,282

4,240

7,523

—

(1,684)(18.3%)

Segment profit

623

6.8%

236

445

682

9.1%

+59

+9.6%

Net sales

66

—

87

60

147

—

+81

+122.7%

Segment profit

85

—

(13)

33

20

13.8%

(64)

(76.1%)

̶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. (US), Ltd.)• Sales of construction machinery in the US and Canada• [NEW] Manufacture of construction machinery in the US̶UK Segment: (Takeuchi Manufacturing UK Ltd.)• Sales of construction machinery in the UK̶France Segment (Takeuchi France S.A.S.)• Sales of construction machinery in France̶

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

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

7Factors of Increase/Decrease in Operating Profit (FY2022 Full year)(Millions of yen)

Depreciation +210M
Labor costs+153M
Others+222M

35,000

Cost of sales+864M
SG&A expenses +605M+7,458 (6,816 )+230

30,000Price
increases+4,33325,00020,000+6,976
Effects of
FOREX
rates

15,00010,000Effect ofincreased
sales

Increasein cost(Rawmaterial
price)

17,764

Transportation cost

+5,388M└ Increase in unit prices└ Increase in units shipped└ Reclassified as COS+5,215M+391M(218)M

Decrease (585 )(1,469 ) (218 )in cost Start-upof U.S. Investm transpo(Rawrtationent
material factory
costs (6,231 )inprice)
human for SKD
capital production
Increase in (221 )(COS)
Others
SG&A
expenses(Excl. effects
of FOREX
rates andinvestment
in humancapital)21,221

Transportation costs└ WIP for SKD production in the U.S.: Inventory (Cost of Sales)└ Finished goods for sale to customers: SG&A expenses

5,000

FY2021(Full year)
Operating profit+3,456 million yen
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

FY2022(Full year)
Operating profit

8Consolidated Balance Sheets (As of February 28, 2023)
As of Feb. 28, 2022

Assets(Millions of yen)

Composition
ratio

BalanceComposition
ratio

Change(%)

Cash and deposits

47,25834.4%

43,99527.7%(3,263)(6.9%)

Notes and accounts receivable - trade25,73718.8%

35,73922.5%+10,002+38.9%

Merchandise and finished goods

41,35330.1%

47,72330.1%+6,369+15.4%

Other

2,356

1.7%

3,001

1.9%

+645

+27.4%

Current assets

116,70585.1%

130,459

82.2%+13,754+11.8%

Non-current assets

20,49614.9%

28,326

17.8%+7,830+38.2%

Total

137,201

100.0%

158,785

100.0%+21,584+15.7%

24,491

17.9%

26,75516.9%+2,263

+9.2%

8,045

5.9%

9,620

6.1%

+1,575+19.6%

32,53723.7%

36,37622.9%+3,838+11.8%

580

0.4%

606

0.4%

+26

+4.6%

Total Liabilities

33,11724.1%

36,98323.3%+3,865+11.7%

Total net assets

104,08375.9%

121,80276.7%+17,718+17.0%

Total

137,201

100.0%

158,785

100.0%+21,584+15.7%

Notes and accounts payable - trade

Liabilities and Net assets

Balance

As of Feb. 28, 2023

Other current liabilities
Current liabilities
Non-current liabilities

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

9Consolidated Statements of Cash Flows (FY2022, Results)
Cash and cash
equivalents at end of
period(Millions of yen)

+8,537(8,863 )(3,320 )46,648+517

43,519(3,128) million yen

As of February 28, Operating CF
2022

Investment CF

Financial CF

Cash and cash
equivalents at
end of period

Effect of
As of February 28,
exchange rate2023
changes(Millions of yen)

Cash flows from operating activities

ChangeCash flows from investing activities

ChangeCash flows from financing activities

Profit before income taxes

21,379Net (increase) decrease in term deposits

Depreciation

2,039

Purchase of property, plant andequipment(8,766)

Decrease (increase) in merchandiseand finished goods(3,205)Acquisition of intangible assets(235)

Increase in working capital(8,797)

Proceeds from redemption of securities

300

Income taxes paid

(7,098)Others

4,220
Total

+8,537

Others

(165)

3
Total

(8,863)Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Dividends paid

Change(3,246)

Others(74)
Total(3,320)10▶ FY2022 Consolidated Results▶ FY2023 Consolidated Forecast▶ Progress of the Third MediumTerm Business Plan
▶ Reference Materials
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

11Summary of FY2023 Earnings Results Forecast(1) Sales volume forecast⚫ North America: +2.4% expected (1st H: +2.1%, 2nd H: +2.7%, YoY)
⚫ Europe: +1.2% expected(1st H: +2.5%, 2nd H: -0.2%, YoY)
⚫ Total: +1.8% expected(1st H: +2.2%, 2nd H: +1.3%, YoY)
We expect the contribution of the US & Aoki factories to be reflected from FY2024.
FY2023
2nd quarter3rd quarter(March to May 2023)(June to August 2023)(September to November 2023)

Accounting period of sales subsidiaries (US, UK, and France)
1st quarter2nd quarter3rd quarter
January to March 2023

Home office
factory
US factory(SKD production of
track loaders)

Aoki factory(4 to 9 tonnes
excavators)

4th quarter

1st quarter

April to June 2023

4th quarter

July to September 2023

(December 2023
to February 2024)

FY2024

October to December 2023

▼ Oct.: Factory production rate reaches 90%▼ May: Switch all loader models to SKD
production
Gradual increase in production volume▼ Completion andshipment of work-inprogress delivered fromthe home office factory▼ Completion andshipment of WIP
delivered from the homeoffice factory▼ Sept.: Start ofoperation▼ After Oct.: Gradual increase in production volume
Products arrive in Europe▼ and the US
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

12Summary of FY2023 Earnings Results Forecast(2) Demand forecast

Strong product demand is expected to continue in FY2023

Qualitative background̶ The housing market has softened, but housing demand is strong (recovery trend)̶ Aging infrastructure requires ongoing maintenance work

Quantitative basis
̶ Orders received in the previous fiscal year (12 months): 235.8 billion yen (record high)̶ Order backlog at the end of the previous fiscal year: 190.7 billion yen (record high)(3) Profit forecast … Factors that could lead to increased profits include:
Despite factors that could reduce profits, such as:◼ Rising raw material prices◼ Product price increases(in both the US and Europe)◼ Investment in human capital (increase in personnel andlabor costs)◼ Softening of ocean freight rates◼ Depreciation expenses for new factories and increasing
expenses◼ Foreign exchange impact(positive in 1st H)◼ Increase in sales

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

13Expected Consolidated Financial Highlights for FY2023
FY2022
Full year
Sales ratio(Millions of yen)

1st half

2nd half

FY2023 (forecast)
Full year
Sales ratio

Change(%)—

96,20092,800

189,000—+10,033+5.6%■

Operating profit

21,221

11.9%

14,5009,500

24,00012.7%+2,778+13.1%■

Ordinary profit

21,37911.9%

14,4009,500

23,90012.6%+2,520+11.8%■

Profit attributable toowners of parent

15,9798.9%10,3006,900

17,2009.1%+1,220+7.6%

Capital investment

8,629

4.8%

1,688

7,362

9,050

4.8%

+420

+4.9%

Depreciation

2,039

1.1%

1,413

2,341

3,754

2.0%

+1,715+84.1%

335.19Dividend
payout
ratio
29.2%

—

—

360.83+25.64

+7.6%

—

—

115.00

Dividend
payoutratio
31.9%+17.00+17.3%

20,0000(Millions of yen)

6,900

7,500
40,00010,300

8,316

7,663

10,00060,000Including a commemorative dividend of 5 yen for the60th anniversary of the company's founding

9,500

12,50080,00010,33915,0009,500

17,50011,89292,80096,20092,932100,000

86,033120,000

98.00

9,328

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

14,400178,966

11,039Net sales

14,500■5,000

Net sales
1st H
2nd H
FY2022

1st H
2nd H
FY20232,500
0Operatingprofit
1st H
2nd H
FY2022

1st H
2nd H
FY2023

Ordinary profit
1st H
2nd H
FY2022

1st H
2nd H
FY2023Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Profit attributable toowners of parent
1st H
2nd H
FY2022

1st H
2nd H
FY202314

Earnings Forecast by Region for FY2023
FY2022
Full year
Sales ratio(Millions of yen)

1st half

2nd half

FY2023 (forecast)
Full year
Sales ratio

Change

(%)

2,460

1.3%

+423

+20.8%■ North America

98,50655.0%

51,51050,570102,08054.0%+3,573+3.6%■ Europe

73,90641.3%

40,90038,68079,58042.1%+5,673+7.7%■ Asia

495

0.3%

90

90

180

0.1%

(315)

(63.7%)■ Others

4,020

2.2%

2,440

2,260

4,700

2.5%

+679

+16.9%

Total net sales

178,966

100.0%

96,20092,800

189,000

100.0%+10,033+5.6%

JPY/USD

133.12—127.00127.00127.00—(6.12)—

JPY/GBP

162.58—154.00154.00154.00—(8.58)—

JPY/EUR139.81—136.00136.00136.00—(3.81)—

JPY/RMB

19.49

—

18.70

18.70

18.70

—

(0.79)—

Units sold
+2.4%

30,000（from the previous period）

Foreign exchange sensitivity(operating profit/12 months)
38,68040,00038,48850,00035,418(Millions of yen)

40,9001,200

50,5701,260

51,5101.1%

51,313

2,036

47,192■ Japan+/-1 yen/USD±334 million yen+/-1 yen/GBP±70 million yen+/-1 yen/EUR±22 million yen*Profit increase with yen depreciation

Units sold+1.2%
（from the previous period）

0

1st H
2nd H
FY2022

1st H
2nd H
FY2023

1st H 2nd H
FY2023

1st H
2nd H
FY2022

1st H
2nd H
FY2023

1st H
2nd H
FY2022

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

1st H
2nd H
FY2023

1st H 2nd H
FY2022

2,260

2,440

2,032

1,987

90

90

277
1st H 2nd H
FY2022OthersAsia
218

Europe1,200

North America
1,260

1,156

10,000879

Japan

20,000

1st H 2nd H
FY202315

Factors of Increase/Decrease in Operating Profit (FY2023 Full year forecast)(Millions of yen)

Depreciation, expenses
US Factory+1,407M
Aoki Factory +1,047M

30,000+4,63725,000+3,420Price
increases

Effect ofincreased
Effects of
sales
FOREX
rates

+1,501
20,00015,000Transportation costs(7,097)M└ decrease in unit prices└ Increase in units shipped└ Reclassified as COS(6,055)M+767M(1,809)M(5,780 )Cost of sales
SG&A expenses

Increasein cost(Rawmaterial
price)+2,229M+463M(2,455 )Start-upof new
factories(US and
Aoki)(259 )
Others(2,693 )Investm
ent
in
human
capital21,221
10,000+6,217(1,809 )transpor Decrease intationSG&A
costs for expenses
SKD(Excl. effects
producti of FOREX
on (COS) rates andinvestment
in humancapital)

24,000Transportation costs└ WIP for SKD production in the U.S.: Inventory (Cost of Sales)└ Finished goods for sale to customers: SG&A expenses

5,000
FY2022(Full year)
Operating profit+ 2,778 million yen
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

FY2023(Full year)
Operating profit
16

▶ FY2022 Consolidated Results▶ FY2023 Consolidated Forecast▶ Progress of the Third Medium-TermBusiness Plan
▶ Reference Materials

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

17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)

Product weight

Hydraulic excavators

Compact excavators

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
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Safety First
18

Market for Compact Construction Machinery
US Housing Starts(10,000 houses)

2,174
1,926 1,864

2,000
1,610
1,500
1,114

1,080

1,328

1,200

1,497 1,549
1,413 1,446

1,674

941

1,000
665
500

734

703

COVID-19 pandemic

September 2008: Lehman Brothers
collapse led to housing demandbottoming out in 2009-2011

0
2006

2007

2008

2009

2010

2011

2012

March 2022: US Federal Reserve ended its
zero-interest rate policy
US housing starts slowdown due to highmortgage rates and inflation

2013

2014

200

2015

2016

177.7

180.5

2017

175

100

(Postponement of timing → Eventual recovery)

75

150.8

171.6
156.2

125

2019

2020

2021

137.7

142.6

146.5

142.0

134.8

141.9

2022
Jan.

2022

(10,000 houses)
Most recent
monthly trend

157.5

150 166.6

Housing demand remains strong

2018

143.2
132.1
2023

Feb. Mar. Apr. May June

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

JulyAug. Sept. Oct. Nov. Dec.

Jan.

Feb.

19

Medium- to Long-Term Outlook

̶ Cities and infrastructure inevitably age,making maintenance work essential.

World Population
10.0

8.55
7.5

5.0

There is a need to address
overcrowding, housing shortages, andaging infrastructure, as well as toimprove public health.

2.5

Social and economic transformation
towards decarbonization

9.77 ｂｎ

7.63

Cities generate employment andwealthGreen Transformation (GX)

Source: DESA, UN (2018)

0.0

4.20

2.54

5.14

6.65 ｂｎ

1.2 times

0.75
1950

5.6 times－

1.6 times
2018

2030

Urban population

̶ Urban population is growing worldwide,with no signs of slowing down.

2050→ Renovating social infrastructure is essential

Rising construction demand andnew construction machinery demand

Renewable energyPowertransmission
infrastructure(underground)Power generation infrastructure
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Charging infrastructure

20Challenge and Numerical Targets
Net sales (left)
Operating profit (right)

(yen)
250

Challenge: Increase Salesby 100 billion Yen
by Power Up, Speed Up, and Scale Up

Net sales
CAGR

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

240.0bn+70.3%+19.5%

40(Average growth rate)

200

189.0
178.9

FY2021

FY2024

Change(%)

Net sales

140.8 bn240.0 bn+70.3％

Operating profit

17.7 bn24.0 bn+35.1％

12.6%

10.0%

Earnings per share (yen)279.91377.00+34.7％

ROE

13.8％

14.0％

－

JPY/USD

111.72115.00+3.28

JPY/GBP

153.06152.00(1.06)

JPY/EUR

130.57127.00(3.57)

JPY/RMB

17.12

18.00

+0.88

└ rateNote: 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%)

30

140.8

150

24.0 24.0bn

115.9 112.2
100

21.2
20

17.7

12.6

13.2
10

50

3rd MTP00
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

21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 Plan

Investment(FY2024)

Increasing workforce: 2.3 bn

3.8 bnFor business growth
To create excess workforce capacity(allow a margin for education, multi-skilling and work-life balance)

Increase in labor costs in FY2024 compared to FY2021(manufacturing costs, SG&A expenses)

Raising wages and salaries: 1.5 bn

As of February 28, 2022
Employees

Temp staff*

Takeuchi MFG

557

386

Takeuchi US

125

Takeuchi UK

As of February 28, 2023
Total

Employees

Temp staff*

Total

943

612

393

1,005

2

127

204

3

207

24

1

25

22

1

23

Takeuchi France

21

1

22

20

2

22

Takeuchi China

190

37

227

195

22

217

917

426

1,343

1,053

419

1,472

*Temp staff: permanent part-timers, part-timers, temporary employees from staffing agencies, seasonal employees, etc.
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

22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

Product weight

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

Aim to have a range of under-6-tonne battery powered excavators
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

23

Scale Up

Production Capacity Expansion

148%■ Track loader■ Excavator (Compact/Hydraulic)
Decrease due toparts and materials
supply shortage

133%

140%
130%

100%
100%

99%

US Factory (started operation on September 23, 2022)
̶ Full operation: Planned for FY2024
̶ Start production of track loaders using the semi knock
down (SKD) method. Home office factory production ends
at ready to drive, then they are finished in the US factory.
̶ Work on building a US supply chain.
̶ Eventually aim for a complete knock down (CKD) method,where all production will be done at the US factory.

95%
Aoki Factory (planned to start operation in September 2023)

FY2021 =100%

100%

135%
100%

150%

̶ Full operation: Planned for FY2024
̶ Transfer production of medium-weight class excavators (4to 9 tonnes) from the home office factory to the Aoki
factory.
Home Office
US
Aoki
Factory
Factory Factory

FY2021 Results

FY2022 Results

At thethe endendof
ofAt
FY2023 Plan
FY2023Plan

Medium-Term
Medium-Term Excavator
Business
Plan
Business
Plan
Target (atTarget(at thetheendendofofFY2024)
FY2024)

Less than 3 tonnes

○

－

－

4 -9 tonnes

－

－

○

9 – 15 tonnes

○

－

－

Semi Knock Down－

Track loader

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

24

Aoki Factory (Construction Progress)
Start operation (plan): Sept. 2023

Sept. 2022̶̶̶

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Site area: approx. 50,000 m2
Building area: approx. 27,800 m2
Total floor space: approx. 31,600 m2

25

Aoki Factory (Construction Progress)
Start operation (plan): Sept. 2023

April 2023

̶̶̶

Site area: approx. 50,000 m2
Building area: approx. 27,800 m2
Total floor space: approx. 31,600 m2

Most of the electricity consumed is generated by solar power, and together with
CO2-free electricity, the factory operates on 100% renewable energy.
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

26

Scale Up

Expansion of Sales Network and Parts Sales

Expand sales, mainly in European and North Americancountries, in response to increased production capacity
North America

MTP Sales Targets

240.0 ｂｎ(yen)

Increase production and expand sales of track loaders by starting operation of
the US Factory

140

North America

128.0 bn

MTP target

Europe100.6 bn

128.0ｂｎJapan

5.7 bnOthers

5.7 bn

North America and Europe
Increase production and expand sales of excavators (compact & hydraulic) bystarting operation of the Aoki Factory
Expand Takeuchi fans and improve customer satisfaction by introducing new
products (including battery powered models)120

MTP target

FY2023100

100.6ｂｎ

102.0bn
102.0 bn
98.5bnAftermarket Parts Sales
Aftermarket parts warehouses already established in the US and Europe
Promote the benefits of genuine parts (branding → peace of mind)
Promote sales of secondary genuine parts (competitive pricing)• Genuine parts: Same parts as those installed in new vehicles• Secondary genuine parts: Different from parts installed in new vehicles, but quality
assured by our company

FY202379.5 bn
79.5bn73.9bn80

60

FY202298.5 bn

FY202273.9 bn40

200European parts center (The Netherlands)

US subsidiary and warehouse
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

North America

Europe27

CONEXPO 2023 (Las Vegas, USA)
▶ From March 14 (Tue.) to 18 (Sat.), 2023

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved28Promotion of Sustainability Management
ESG Issues and Targets
Social Issues

ThemesBy When

What Level

CO2 emissions from product use

FY2030(compared with FY2010)

Reduce by 30%

CO2 emissions at factories

FY2030(compared with FY2015)

Reduce by 50%

Occupational healthand safety
Employees' healthOccupational accidents resulting in absence fromwork for one day or more

Every year

Zero

Human Resource
Development

Training hours per person

Every year

Announce actual results

5

Promoting work-lifebalance

Ratio of employees taking childcare leave (bygender)Every year

Announce actual results

6Child Labor

Collection rate of agreement forms for our CSR
procurement policy

Every year

95% or more

1
E

Mitigate climate change

2

3

4

7

S

G

Diversity

1.
2.
3.

Appointment of a female director*
1.
Ratio of female managers to female staff
2.
Ratio of local staff in management positions
3.
in subsidiaries

1.
FY2023
FY2030Every year2.
3.

Appointment of a female
director
Same as the ratio of malemanagers to male staff
Announce actual results

Note: The target deadline for the appointment of a female director, originally set for FY2024, has been changed to FY2023.

Our Group's business itself

GHG emission reduction and
TCFD initiatives
Goals 1 and 2

Occupational health and safety
Employees' health
Goal: 3, 4, 5 and 6

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Diversity and Inclusion
Goal 729

Climate Change Initiatives (Scenario Analysis and Definition of Measures)
2℃ Scenario (sustainability-oriented)

4℃ Scenario (current transitions)̶ Introduction of carbon tax and increased taxation
̶ Significant tightening of regulations on exhaustgas and GHG emissions
̶ Increase consumer awareness of decarbonization

̶ No significant regulatory tightening
̶ Increased damage due to typhoons, floods,
and other extreme weather events

2℃ Scenario Analysis, Worldview in 2030
Suppliers
Imposition of a carbon
tax on the manufactureof steel, glass, synthetic
rubber, plastics, etc.,
which will be passed on
to the cost of raw
materials and increase
manufacturing costs.

EnergySupply instability due topower shortages will
increase the cost ofelectricity for factories
and increase
manufacturing costs.

Cost Increase

Electrification of Construction Machinery

Counter Development of low-GHG fueled construction machinery
measures Improvement of fuel consumption of engine-powered

New entrants

construction machinery

Customers

Takeuchi Group

Increased demand forconstruction machinerythat implements low
emission technologies
and timely introductionof products that meet
consumer needs will
increase sales.

Capital investment and development costs
will increase in line with government
emission regulations and the resulting shift
in power sources (e.g., electrification).

Substitutes

Not assumed

Logistics (shipping, land transportation)

None in particular

Logistics companies’ cost burden (e.g.,building new low-GHG vessels, acquiring
emission credits, etc.) will be transferred toocean freight rates, increasing costs
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Government &Administration
̶

Carbon tax
̶Tighter
regulations

Investors, etc.
Declining stakeholder
appreciation will leadto higher financing
costs, lower stock
prices, and difficulty insecuring human capital30

Capital Investment Plan
FY2023 Capital Expenditure Plan Breakdown(Millions of yen)

Capital investment

10,000Depreciation

8,629

Aoki Factory

5.0 bn Payment for this fiscal year: 5.0 bn
Payment already made (construction in progress): 6.0 bn

US. Factory

1.5 bn Solar panels (US office and factory): 0.48 bn
Slat conveyor: 0.45 bn
Factory machinery and equipment: 0.4 bn etc.

Employeedormitories

1.5 bn Construction on land adjacent to the home office factoryand Aoki Factory

Others

1.0 bn Jigs, molds, prototypes, and maintenance and renewal
equipment

Total

9.0 bn

9,050

8,000

6,000

4,420
4,000

3,056

FY2020: Takeuchi US warehouse expansion(approx. 0.54 bn)

1,734

2,000

3,754

1,529

1,676

1,586

2,039

FY2019FY2020

FY2021

FY2022

Jan. 2020

FY2021: US training center (approx. 0.5 bn)

Mar. 2021

0
FY2023

FY2022 Capital investment Breakdown
Aoki
Factory

3.0 bn Payment for this fiscal year (construction inprogress): 3.0 bn
Payment already made (construction inprogress): 3.0 bn

US Factory

4.7 bn land/buildings/equipment

Others

1.0 bn Jigs, molds, prototypes, and maintenance andrenewal equipment

Total

8.7 bn[NEW] FY2022: US Factory (approx. 4.7 bn)[NEW] FY2023: Aoki Factory (approx. 11.0 bn)

Sept. 2022

Sept. 2023 (planned)
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved31Shareholder Return and Dividend Payout Ratio
Basic Policy:

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.
(yen)

120

115

Dividend per share and consolidated
dividend payout ratio

98

100

80

110

45

50

53

35.0%

40

26.2%

29.2%
25.9%

20

60th Anniversary
Commemorative
dividend

Consolidated
dividend payout
ratio

68

60

5

31.9%

30.0%
25.0%

24.3%

20.0%

18.8%

15.0%
10.0%

0

FY2018FY2019FY2020

FY2021

FY2022

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

FY2023(forecast)32

▶ FY2022 Consolidated Results▶ FY2023 Consolidated Forecast▶ Progress of the Third MediumTerm Business Plan
▶ Reference Materials
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

33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.
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

34

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 28, 2023)

Sales (Consolidated)

178,966 million yen（FY2022）

Employees (Consolidated) 1,053（As of February 28, 2023)
Listed Market

Subsidiaries

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

Takeuchi Mfg. (US), Ltd.
(Established February 1979）

UK

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

FranceTakeuchi France S.A.S.
(Established June 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

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

35

Business Performances(Millions of yen)Japan

FY2018FY2019FY2020

FY2021

FY2022

Forecast
FY2023
Change
2,460
+423

940

813

2,508

2,832

2,036

North America

50,69653,222

52,24868,706

98,506

102,080+3,573

Europe55,56160,31354,98865,74973,906

79,580+5,673

Asia

1,000

384

181

153

495

180

(315)

Others

1,977

1,179

2,327

3,449

4,020

4,700

+679

Net sales

110,175

115,913112,254

140,892

178,966

189,000+10,033

Operating profit

15,411

12,64913,207

17,764

21,221

24,000+2,778

Ordinary profit
Profit attributable toowners of parent
Earnings per share (yen)15,496

12,403

13,29818,08021,37923,900+2,520

11,391

9,091

9,765

13,34815,97917,200+1,220238.83190.64204.78279.91

335.19360.83+25.64

Dividends per share (yen)

45.00

50.00

53.00

68.00

98.00

115.00+17.00JPY/USD1 (yen)110.06109.21106.13111.72133.12127.00(6.12)

JPY/GBP1(yen)145.91139.49137.88153.06

162.58154.00(8.58)

JPY/EUR1(yen)129.16121.46122.91130.57139.81136.00(3.81)

JPY/RMB1(yen)

16.64

15.82

15.41

17.12

19.49

18.70

(0.79)Net assets
Total assets

77,180103,557

83,683
108,982

89,908
115,525

104,083
137,201

121,802
158,785

Equity ratio

74.5%

76.8%

77.8%

75.9%

76.7%

ROE2

15.7%

11.3%

11.3%

13.8%

14.1%

ROA3

15.9%

11.7%

11.8%

14.3%

14.4%

*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)

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

36Product Lineup
1Compact excavators andhydraulic excavators

2

3

4

5

6

Compact excavators

Battery operated

TB20e

Standard models

TB219

～
～

TB290
TB235-2

TB250-2

TB240

15 (tonnes)

TB260

TB395W

TB257FR
TB325RTB217R

TB280FRNew

TB350R
Launched
March 2023

TB335R

TL6R

Launched
March 2023

TB370

FR series & Short tail swing models

TB2150R

TB290-2

TB230

TB210R

9

Hydraulic excavators

TB225

TB215R

8

TB2150

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

Track Loader

7

TB395W(10 tonnes)

TL10V-2
TL8R-2

TL12R-2
TL12V-2

Crawler Dumper

TCR50-2

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

37Market Outlook
350

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

250

200
*seasonally adjusted

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
July
Sept.
Nov.
Jan.

150

2017

2018

2019

2020

2021

2022

2023

(source) S&P
Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

38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 is currently weak due to US interest rate hikes, but in 2023, future housing demand is
expected to remain firm.

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

US Building Permits(seasonally adjusted)

200

180

180

160

160

140

140

120

120

100

100

80

80
2019

2020

2021

US Housing Starts(seasonally adjusted)

200

2022

2019

2023

60

2020

2021

2022

2023

60
Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

39

Production Volume Trends
By Month
Decrease in operatingdays due to Golden
Week holidays

150%

Aug.
113%

125%

Mar.
132%

June
137%

Apr.
124%

By Fiscal Year

Decrease inoperating days due
to summer vacation

125% 124%
Nov.
138%

Sept.
132%

Dec.
130%

Feb.
Jan.
124%
117%

100%

94%

Oct.
132%
July
123%

100%
May
96%

75%

March 2019=100%
50%

Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.
FY2019FY2020

FY2021

FY2022

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

FY2019FY2020

FY2021

FY2022FY2019=100%40

List of Material Issues
#

E

1

○

S

G

SDGs

13

2

○

13

Social Issues

Mitigate climate change

3

○

4

○

12

5

○

12 13

6

○

7

○

7

6

Realizing a circular economy

12
12

○

8

13

Theme

Goal

Develop, manufacture, and sell battery-powered compact excavators

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
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)

4

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

○

18

○

○

8

19

○

○

8

20

○

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

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）

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

641

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

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

Influencing Factor(Parameters):Direction of Change

Large
influence

Business Impact/Financial Impact

Mediuminfluence

Smallinfluence

Measures

Rise in steel
pricesIntroduce &expand carbon tax

Carbon price

Carbon price(Material prices)

Rise in rubber
pricesRise in costof salesL
Pass-through to
price

Rise in glass raw
material prices
S
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

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

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved

Increase in costof capital

Decline incompetitivens

Energy saving
Energy creation
Renewable Energy

Local production,
Local
consumption

M

L

L

◇ Electrification◇ Low GHG fuel◇ Fuel economy
improvement

M

M

Enhancing climate
actions andinformation disclosure

42

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.

Copyright© TAKEUCHI MFG. CO.,LTD. All rights reserved