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

Financial Highlights Material
for the Period Ending May 2024
Sakata Seed Corporation
July 24, 2024

🄫 SAKATA SEED CORPORATION 2024

1

Table of contents

Ⅰ

Overview of Period Ending May 2024

....

3～15

Ⅱ

Forecast and Dividend Policy for PeriodEnding May 2025

....

16～22

Ⅲ

The Company’s management policies andinitiatives that is conscious of capital costs
and stock prices

.....

23～52

Ⅳ

Appendix

.....

54～57

🄫 SAKATA SEED CORPORATION 2024

2

I

Overview of Period Ending May 2024
Figures in the document are rounded for fractions less than the unit.
Please be advised that some figures may differ from the financial report.

🄫 SAKATA SEED CORPORATION 20243

Performance overview for period ending
May 2024 (Consolidated)
Compared to the previous year, revenue increased and current net
income increased significantly
24/5月期Forcastfor

Unit:100 million yen

23/5月期
2023

24/5月期
2024

Difference
増減額 Difference(%)
増減率2024 *1 ※1
修正予想

売上高
Sales

773

887

114

14.8%

売上総利益
Gross proft

475

540

65

13.6%

-

61.5%

60.9%

-

-

-

91

104

13

14.6%

-

11.7%

11.7%

-

-

-

その他販管費Other SGA expenses

275

331

56

20.3%

-

営業利益
Operating income

109

105

-4

-3.9

110(-5)

経常利益
Ordinary income

123

111

-12

-9.6

110(＋1)

当期純利益
Net income

95

162

67

70.3%

155(＋7)

134
146

151
163

18
18

Impact of FX+72

140(＋11)
153(＋10)Gross 売上総利益率（％）
proft margin (%)

研究開発費
R&D expenses
売上高比率（％）
Ratio against
sales (%)

840(＋47)※2

米ドルレート(円)Yen / USD (¥)
Yen / EUR (¥)
ユーロレート(円)*1 Announed Feb. 2024 *2 Exchange rates for overseas subsidiaries(Period ending March)
🄫 SAKATA SEED CORPORATION 2024

4

Results for period ending May 2024 (Net income)Significant increase in net income due to sales of non-current assets
Unit:100 million yen

Period 2023
Net income

95

Main factors causing change in net income+65

Gross profit

SGA
expenses-69

Non-operating
income-8＋113

Extraordinary
income🄫 SAKATA SEED CORPORATION 2024

Increase in personnel expenses, travel expenses,
and depreciation expenses
Increase due to currency exchange fluctuations

Loss on net monetary position
Loss from equity method investments

Recorded gain on salesof non-current assets-34

Corporatetax, etc.
Period 2024
Net income

Significant increase in sales

162

＋67
5

Results for period ending May 2024: By business segment

Overseas wholesale has driven a performance
Unit:100 million yen

Sales2023 2024

Operating income

Difference Difference(%)

2023

2024

Difference Difference(%)

Domestic wholesale

123

123

0

0.4%

49

50

1

1.4%

Overseas wholesale

563

680

118

20.9%

168

182

14

8.4%

Retail sales

53

49

-4

-7.9%

-1

-2

-2

ー

Construction etc.）

34

34

0

0.4%

1

1

-0

-40.0%

Subtotal

773

887

114

14.8%

218

231

13

6.1%

－

－

－

－

-108

-125

-17

ー

773

887

114

14.8%

109

105

-4

-3.9%

Other（Landscaping & Garden

Elimination
Total

🄫 SAKATA SEED CORPORATION 2024

6

Results for period ending May 2024: Sales by productSignificant increase in vegetable and flower seeds
Unit:100 million yen
700

Period 2023
Sales

750

800

850

900

Main factors causingchange in sales

773

Vegetable
seeds

+87

Flowerseeds+28

Young plants

-0

Bulbs

-1

Materials-1

Others+1

Period 2024
Sales

887

🄫 SAKATA SEED CORPORATION 2024

Increase in Broccoli, Tomato,
Pepper, Squash etc.

Increase in Sunflower, Lisianthus,
Campanula, Stock etc.

Sluggish sales of covering
materials due to the warm winter+114
7

Results for period ending May 2024:
Sales by customers' region

Significant increase sales in every overseas region
Unit:100 million yen
700

Period 2023
Sales

750

800

850

Main factors causingchange in sales

900

773

Japan

-4

North &
CentralAmerica（FX impact+26）

Europe &Middle East

（FX impact+22）

South
America（FX impact+9）

Increase in both vegetable and flower seeds+23

Significant increase in flower seeds

+35
+33

+21

Asia

（FX impact+13）

Increase in both vegetable and flower seeds

Increase in both vegetable and flower seeds+5

OthersPeriod 2024
Sales

Decrease in retail sales（FX impact＋2）

887

🄫 SAKATA SEED CORPORATION 2024

+114

Impact of FX+72

8

Sales by region for Period ending May 2024 (1)[Japan]

Revenue declined due to extreme heat and warm winter
Unit:100 million yen

22/5月期

Period2022

210

Period
23/5月期-0210 （-0.0% ）

2023

-2

-1

-1 -0

＋1

+3
-4
206 （-1.7% ）Period24/5月期
2024

-0

-0

-1

-1

-1

■Vegetable seeds ■Flower seeds ■Young Plants ■Bulbs＋0■Materials■other2022/6-2023/5 Products whose sales changed most2023/6-2024/5 Products whose sales changed most

Vegetable seeds：

Vegetable seeds：

Flower seeds:

🄫 SAKATA SEED CORPORATION 2024

Tomato

＋1.1

- 0.8

Spinach- 0.3

Carrot- 0.7

Sweet corn

＋0.2

Pansy

- 0.1

Lisianthus- 0.1

Bunching Onion- 0.8

SpinachFlower seeds:

9Sales by region for period ending May 2024 (2)[North and Central America]

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

22/5月期

Period
2022

110

25

135

23/5月期

Period
2023

113

24

137

Period24/5月期
2024

119

25

■Vegetable seeds+2（+1.2%）+7
144 （+5.2%）■Flower seeds and others

2022/6-2023/5 Products whose sales changed most2023/6-2024/5 Products whose sales changed most

Vegetable seeds：

Vegetable seeds：

Flower seeds:

🄫 SAKATA SEED CORPORATION 2024

Broccoli- 2.6

Pepper

Watermelon

＋4.7

＋2.3

Pepper＋2.7

Spinach＋1.8

Broccoli＋1.4

Lisianthus+0.7

Sunflower＋2.4

Flower seeds:

10Sales by region for Period ending May 2024 (3)[Europe and Middle East]

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

Period22/5月期
2022

82

27

109

Period
23/5月期
2023

82

26

108

Period24/5月期
2024

88

28■Vegetable seeds

2022/6-2023/5 Products whose sales changed most
Vegetable seeds：

Flower seeds:

🄫 SAKATA SEED CORPORATION 2024

-1（-1.0%）＋9116 （＋8.0%）■Flower seeds and others

2023/6-2024/5 Products whose sales changed most
Broccoli

＋3.7

＋2.0

Tomato＋0.8

Broccoli＋0.9

Squash- 0.8

balloon flower- 0.4

Lisianthus＋0.4

Tomato- 3.0

SquashBroccoli

Flower seeds:

11Sales by region for period ending May 2024 (4)[South America]

Good sales in both vegetable and flower seeds
Unit: million Real22/5月期

Period2022

171

Period2023

180

23/5月期

174

3

+16

10

191（+9.4%）＋45
13 235（+23.4%）

222

Period2024

24/5月期■Vegetable seeds■Flower seeds and others

2022/6-2023/5 Products whose sales changed most2023/6-2024/5 Products whose sales changed most

Vegetable seeds：

Vegetable seeds：

Flower seeds:

🄫 SAKATA SEED CORPORATION 2024

Tomato

＋7.2

- 4.9

Pepper＋6.1

Pepper

＋4.8

Squash＋3.5

Lisianthus＋0.5

Sunflower＋0.5

Squash

＋7.3

Melon

Flower seeds:

12Sales by region for period ending May 2024 (5)[Asia]

Significant increase in flower seeds
Unit:100 million yen
22/5月期

Period2022

110

Period2023

119

Period24/5月期
2024

127

23/5月期

13524+8
142 （+5.7%）

2338■Vegetable seeds+23
166 （+16.4%）■Flower seeds and others

2022/6-2023/5 Products whose sales changed most2023/6-2024/5 Products whose sales changed most

Vegetable seeds：

Vegetable seeds：

Flower seeds:

🄫 SAKATA SEED CORPORATION 2024

Broccoli

- 6.6

＋5.2

Carrot＋6.5

Broccoli＋5.0

Chinese cabbage＋6.1

Lisianthus＋2.9

Sunflower＋5.6

Carrot- 5.3

Bunching Onion

Flower seeds:

13Sales by region for period ending May 2024 (6)[Other regions (Africa and Oceania )]Increase in vegetable seeds
Unit:100 million yen
22/5月期

Period2022

25

Period
23/5月期

28

2023

27

2
２

33

Period24/5月期
2024

3■Vegetable seeds

30+4（+14.3%）35＋5（＋16.9%）■Flower seeds and others

2022/6-2023/5 Products whose sales changed most2023/6-2024/5 Products whose sales changed most

Vegetable seeds：

Vegetable seeds：

🄫 SAKATA SEED CORPORATION 2024

Bunching Onion- 0.9

Broccoli
SquashSquash＋2.0＋0.4

Cabbage

＋1.0

- 0.4

Pepper＋1.0

14

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

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

Breakdown

SGA
販管費計
expenses

内訳

Repair
Personnel
Outsourcing
Travel
人件費
減価償却費
expenses 業務委託費
expenses 旅費交通費
fees
expenses 修繕費
Depreciation

Experiment and
試験研究費
research expenses※(R&D expenses)*（研究開発費）2024年5月
実績
Results
for period
2024

435

231

17

16

24

33

18(104)

Results
for period
2023
2023年5月
実績

366

192

12

14

20

28

15(91)

Difference
前期比増減YoY

69

39

4

3

3

5

2(13)

FX Impact
うち為替変動による影響額

36

17

1

1

2

2

2(8)

Japan
日本

13

4

1

1

1

1

2(4)

北中米
North & Central America

20

13

1

1

0

1

0(5)

Europe & Middle East
欧州・中近東

26

14

1

1

1

2

1(3)

South America
南米

11

5

0

0

1

1

1(3)

Others + consolidation adjustment
その他+連結調整

-3

3

1

0

0

0

-2(-1)-1* R&D expenses are the total expenses related to research activities,
part of which include personnel expenses and depreciation.

🄫 SAKATA SEED CORPORATION 2024

15

Ⅱ Forecast and Dividend Policy for PeriodEnding May 2025

🄫 SAKATA SEED CORPORATION 2024

16

Forecast for Period Ending May 2025
Expecting increase in sales and gross profit but decreasein ordinary income and net income
Period 2025
予想
forcast

Period2023
23/5月期

Period2024
24/5月期

Sales
売上高

773

887

935

48

5.4%

Gross proft
売上総利益

475

540

579

39

7.3%

61.5%

60.9%

61.9%

-

-

91

104

110

6

5.6%

11.7%

11.7%

11.7%

-

-

Other SGA expenses
その他販管費

275

331

359

28

8.4%

Operating income
営業利益

109

105

110

5

4.8%

Ordinary income
経常利益

123

111

110

-1

- 1.1%

95

162

80

-82

- 50.5%

134
146

151
163

Unit:100 million yen

Grossproft margin (%)
売上総利益率（％）

研究開発費
R&D expenses
Ratio
against sales (%)
売上高比率（％）

Net income
当期純利益
Yen
/ USD (¥)
米ドルレート(円)Yen/ EUR (¥)
ユーロレート(円)* Estimated amount of affect from currency fluctuation of 1 yen on revised expectedamount for operating income
🄫 SAKATA SEED CORPORATION 2024

Difference Difference(%)
増減額
増減率

Estimate of exchange※sensitivity*(million （百万円）
yen)
150 為替の感応度の試算
USD
米ドル
98
160
EUR
ユーロ
14

17

Forecast for period ending May 2025 (Sales by product)

Expecting significant increase in vegetables
Unit:100 million yen
850

Period 2024
Actual sales

860

870

880

890

900

910

920

930

940

950

Main factors likely tocause change in sales

887
+42

Vegetable
seeds

＋3

Flowerseeds

Expecting an increase in all regions

Expecting slight decreased sales in Asiaand increased sales in other regions-1

Expecting slight decrease

Bulbs

-0

Expecting slight decrease

Materials-0

Expecting slight decrease

Young plants+4

OthersPeriod 2025
Expected sales

935

🄫 SAKATA SEED CORPORATION 2024

Expecting increased salesin Landscaping & Garden Construction+48
18

Forecast for period ending May 2025 (Sales by region)

Expecting increased sales in all regions
Unit:100 million yen
830

Period 2024
Actual sales

840

850

860

870

880

890

900

910

920

930

940

950

960

Main factors likely tocause change in sales

887
+6

Japan

+10

North &
Central America（FX impact-2）

Increase in both vegetableand flower seeds+12

Increase in both vegetableand flower seeds

Europe &Middle East

（FX impact-5）

South America

+9

Asia

（FX impact-0）

Increase in both vegetableand flower seeds+10

increase in vegetable seeds（FX impact+2）＋2

OthersPeriod 2025
Expected sales

Increase in sales of vegetable, flower seeds
and Landscaping & Garden Construction（FX impact＋0）935

🄫 SAKATA SEED CORPORATION 2024

+48

Impact of FX-519

Forecast for period ending May 2025
(Main selling, general and administrative (SGA) expenses)
Increase due to plan for enhancement of intellectual property
and human resources contributing to future growth

Breakdown

Unit:100 million yen（Breakdowns given on the basis of locations of head office and major subsidiaries）

内訳

RepairOutsourcing
Travel
減価償却費
修繕費 業務委託費
旅費交通費
fees
expenses expenses
Depreciation

Experiment and
試験研究費
research expenses※(R&D
expenses)*(R&D expenses)*）（研究開発費28

35

18(110)

16

24

33

18(104)

3

△ー 0

ー

4

2

1(6)

-2

△ー 0

△ー 0

△ー 0

△ー 0

11

4

2

ー 0
△

3

1

△0(△1)-0(-1)
1(4)北中米North & Central America

13

5

0

ー 0
△

0

0

0(1)

欧州・中近東Europe & Middle East

11

4

1

1

0

1

南米
South America

5

3

△ー 0

0

1

1

△1(2)
-1(2)
0(0)

-6

2

1

△ー 0

-1

-1

△0(△1)-0(-1)

SGA
販管費計
expenses

Personnel
人件費
expenses

予想2025
2025年5月
Forecast
for period

468

249

20

16

実績
2024年5月
Results
for period
2024

435

231

17

前期比増減
Difference
YoY

34

18

うち為替変動による影響額
FX Impact

-4

日本
Japan

Others + consolidation adjustment
その他+連結調整* R&D expenses are the total expenses related to research activities,
part of which include personnel expenses and depreciation.

🄫 SAKATA SEED CORPORATION 2024

20

Capital investment (Results for past 7 periods and forecast)

Increase in total capital expenditure
Unit:100 million yen

90
80
70
60
50
40
30
20
10
0

80
55

50

43

12
18/5

62

62
36

33

23

41

53
59

33

19/5

19
20/5

27
21/5

Overseas40

Domestic

14
25

80

39
20

22

21

22/5

23/5

24/5

25/5（Est.）
25/5（予）＊2018/5-2024/5: Actual capital investment amounts for each period (including acquisition of intangible fixed assets)
2025/5: Including amounts of investment for periods after period 2025

Major new facilities for the fiscal year ended May 31, 2024
Relocation of Sakata Seed America headquarters; expansion of offices and warehouses:
2.6 billion yen
🄫 SAKATA SEED CORPORATION 2024

21

Proposal of year-end dividend and forecastof current dividend

Year-end dividends for period 2024 is ¥40(¥65 per year),For period 2025, ¥65 is expected① Year-end dividends for period 2024 is ¥40(¥65 per year)(+10 yen compared to forecast)¥45

Interim dividend: ¥30/share＊Amount per share

¥33

¥33

18

18

¥38

40

35

25

30

35

27

23

15

15

15

18

20

19/5

20/5

21/5

22/5

23/5

■ Interim dividend
🄫 SAKATA SEED CORPORATION 2024

¥65

¥55

② For period 2025, ¥65 is expected

Year-end dividend: ¥35/share

¥65

24/5

25/5(Est)■ Year-end dividend
22

Ⅲ The Company’s management
policies and initiatives that is consciousof capital costs and stock prices

🄫 SAKATA SEED CORPORATION 2024

23

Response to achieve management that is consciousof capital costs and stock prices
1

Medium-term trends in results-1 Sales-2 Gross profit/operating profit

…

24～28

2

The Company’s philosophy and management
vision

…

29～31

3

Group policies, strategies and specific initiatives …

32～40

4

Current status, policies and initiatives regarding
capital return indicators

…

41～46

5

Dialogue with shareholders and responses
that is conscious of stock prices

…

47～49

6

Recent topics

…

50～52

🄫 SAKATA SEED CORPORATION 2024

24

1. Medium-term trends in results
1-1 Sales
2015 to 2024
+33 billion yen; increase of approx. 1.5 times（百万円）(millions of yen)

100,000

Changes in accounting
standards for revenue
recognition: Total
decrease of 3.4 billion
yen (domestic)

90,00080,00070,00060,00050,000

Domestic
国内
Overseas
海外

40,00030,00020,00010,000
0
15/5

•
•

16/5

17/5

18/5

19/5

20/5

21/5

22/5

23/5

24/5

Average annual growth rate of approx. 5% (5.5% increase on same revenue recognition basis)
Overseas sales grew significantly

🄫 SAKATA SEED CORPORATION 2024

25

1. Medium-term trends in results
1-2 Sales (trends by product category: vegetables)
2015 to 2024
（百万円）
(millions of yen)

1-2 Annual sales trends by product category (vegetables)

70,00065,00060,00055,00050,000Vegetables
野菜

45,00040,00035,00030,000
15/5

•
•

16/5

17/5

18/5

19/5

20/5

21/5

22/5

23/5

24/5

Average annual growth rate: approx. 7%
In addition to broccoli, fruit vegetables such as Tomatoes and Peppers have also been
increasing in recent years

🄫 SAKATA SEED CORPORATION 2024

26

1. Medium-term trends in results
1-3 Sales (trends by product category: flowers, materials, etc.)
2015年－2024年
2015 to 2024
（百万円）
(millions of yen)

Annual sales trends by product category (other than vegetables)

14,00012,00010,000

Flowers
花
資材Materials
ソリュ*Materials (including※資材（代理人取引含む）※ソリュ(代理人含む）
agent transactions)
Young plants
苗木

8,000

6,000

Bulbs
球根
その他
Other
その他
（造園緑花等）
Landscapebusiness, etc.

4,000

2,000

0

15/5

•

•
•

16/5

17/5

18/5

19/5

20/5

21/5

22/5

23/5

24/5

Flowers have increased by an average of 10% annually, with Sunflowers growing strongly in addition to
Lisianthus
Landscape business is also on the rise
Materials, young plants, and bulbs have decreased due to narrowing down varieties and products

🄫 SAKATA SEED CORPORATION 2024

27

1. Medium-term trends in results
2 Gross profit/operating profit
売上総利益・営業利益などの推移
Trendsin gross profit, operating profit, etc.
60.1%

（百万円）
(millionsof yen)

61.5%

60.9%
53,97350.7%

47,51943,914

Operating profit

28,738Gross profit
Gross profit margin
Operating profit

15.3%
11,181

14.1%
10,91811.8%
10,495

margin

8.4%
4,779

•
•
•

Gross profit margin increased from 50.7% to 60.9% (up 10.2pt) due to improved product mix
Operating profit has more than doubled compared to 9 years ago due to increased sales and improved gross profit
marginOperating profit margin increased by 3.4pt. From the fiscal year ended May 31, 2022 onwards, it decreased due toincreased SG&A expenses in research and human resource investment

🄫 SAKATA SEED CORPORATION 2024

28

Response to achieve management that is consciousof capital costs and stock prices
1

Medium-term trends in results-1 Sales-2 Gross profit/operating profit

…

24～28

2

The Company’s philosophy and management
vision

…

29～31

3

Group policies, strategies and specific initiatives …

32～40

4

Current status, policies and initiatives regarding
capital return indicators

…

41～46

5

Dialogue with Shareholders and responses
that is conscious of stock prices

…

47～49

6

Recent topics

…

50～52

🄫 SAKATA SEED CORPORATION 2024

29

2. The Company’s philosophy and management vision

CompanyMotto

To be : Philosophy and management vision
社
是“Quality, Reliability, Service”
We contribute to the betterment of life and culture of the people around the world and aim tobecome the world’s leading seed company, with values created through our innovative flower &vegetable varieties and through our services

サ
ス
テ
ナ
ビ
リ
テ
ィ
基
本
方
針

Contributing to society
through seeds

Basic Policy on Sustainability

Management
Philosophy

経
営
理
念

Mutual Prosperity, Mutual Interest, Mutual Harmony

We aim for “Mutual Harmony” which consistsof continuous coexistence between the
Earth’s nature, the societies nurtured by thatnature, and the corporations which belong tothose societies
We aim to engage in sustainability
management that contributes to society,agriculture, and gardening, and drives
positive development and growth for bothinternal and external stakeholders through ourseed business and landscaping business

🄫 SAKATA SEED CORPORATION 2024

Seed innovation for people and the earth
Materialities of SAKATA Group

Minimize theimpact of seeds
and seedlings,
and agriculture
and horticulture on
the environment,
adapt to futureenvironmental
changes, andachieve a stablesupply of seeds
and seedlings.

Preserving the
globalenvironment

Contributing tosustainableagriculture andhorticulture

Bring happiness to all
people and regions thatinteract with thecompany, including seedproducers, suppliers,
fresh produce growers,
consumers and citizens,and employees.

Enabling
prosperous
lives

Strengthening our business foundations30

2. The Company’s philosophy and management vision
To be : Philosophy and management vision
Value to be provided tocustomers

We contribute sustainably to the betterment of life andculture of the people around the world, with values
created through our innovative flower & vegetablevarieties and through our services.

Target market position

Business portfolio

A global company with Japanese origin, which has a unique
Only One value appreciated by customers all over the world
for its quality, reliability and service

Vegetable: Growth and profit driver by increasing coreproducts in a well-balanced manner

Leading position in the home field "Asia"

Flower: Profit improvement through well-focused productmanagement and intensive penetration in the emerging
markets, especially Asia.

Top market share in each region from among our key
strategic products, in addition to the crop with which Sakata
has already a leading position

Solution business: Maximization of the values of ourgermplasm

In flower, to retain the global top three position

🄫 SAKATA SEED CORPORATION 2024

31

Response to achieve management that is consciousof capital costs and stock prices
1

Medium-term trends in results-1 Sales-2 Gross profit/operating profit

…

24～28

2

The Company’s philosophy and management
vision

…

29～31

3

Group policies, strategies and specific initiatives …

32～40

4

Current status, policies and initiatives regarding
capital return indicators
Dialogue with Shareholders and responses thatis conscious of stock prices

…

41～46

…

47～49

Recent topics

…

50～52

5
6

🄫 SAKATA SEED CORPORATION 2024

32

3. Group policies, strategies and specific initiative
Policy and Strategy
Five Growth Strategies for the Ideal State
R&D Dept.
Sales & Marketing Dept.

Establishment of a
profitable business model

Establishment of healthy
profit structure andpromoting key strategies ineach region

Establishment of a supply
chain infrastructure toachieve supply reliability
and efficiency

Internal structuraldevelopment to foster
global enterprise growth
Administration Dept.

Supply Chain Dept.

Development of global IT
infrastructure to improve theefficiency of management
Corporate Management
Dept.
🄫 SAKATA SEED CORPORATION 2024

33

3. Group policies, strategies and specific initiative
Past activities
Example of establishing a profitable business model
Results of existing activities

Issues

課題解決のためNext growthstrategy to solveの次の成長戦略
issuesEstablishment of a profitable business model•
Our top-selling varieties of broccoli andlisianthus are performing well•
Increase in consumption of fresh vegetable &flowers due to introduction of new varieties•
Gain trust from production areas and growers
by supporting the expansion of existingproduction areas

Excessive reliance on
high-market shareproducts
In order to further
increase sales, it isnecessary to expand
consumption itself anddevelop emerging
production areas•

Increase in sales of fruit vegetables (Tomatoes,
Peppers, etc.) with large market size•
A new revenue stream other than Broccoli and
Lisianthus is emerging•
Growth of peppers in South America, North
America, Asia, and other regions•

Develop the global market for sunflower•
Rapid growth worldwide, especially in Asia•
Growth into a promising product following
Lisianthus•

🄫 SAKATA SEED CORPORATION 2024••

Intense competition
requires continuous
investment
Needs vary greatly byregion, making it
essential to strengthen
regional responses

Create mechanisms topioneer new fields
Establish a supply system
to meet the rapid increasein demand

Establishment of a
高収益ビジネスprofitable business
モデルの確立model

Promote regional
地域戦略の推進

strategies

サプライ
Supplychain
development
チェーン整備34

3. Group policies, strategies and specific initiative
Recent initiatives and future initiatives
Growth strategies and future challenges
Establishment of a profitable business model
Increased consumption of Broccoli• Broccoli awareness activities in India using theinternet and social media
Website: https://broccolilovers.com/•

Enhancing the dissemination of information on
Broccoli in Japan following its selection as a“designated vegetable”

Website: Broccoli Lovers

Challenge for new crops• Start of F1 seed Strawberry breeding• Currently considering new crops to start breeding
Active investment in growth areas• Emerging countries: Strengthening sales & marketingthrough acquisition of Isla in Brazil• Fruit vegetables: Expansion of Cucumber businessthrough acquisition of Sana Seeds
🄫 SAKATA SEED CORPORATION 2024

F1 seed Strawberry variety under development

35

3. Group policies, strategies and specific initiative

Recent initiatives and future initiatives
Growth strategies and future challenges
Promote regional strategies

As part of business expansion, Sakata Seed America relocated its headquarters
and integrated its supply chain and research functions••••

Relocation will be completed this September and the new structure will
be launched
Strengthen breeding capabilities in areas suitable for fruit vegetable
cultivation
Promote industry-academia collaboration and innovation by relocating toan area with a concentration of agriculture-related companies anduniversities
Consolidate all functions in one place to facilitate smooth communication
between departments and improve efficiency
Woodland Innovation Center

Strategy for tropical regions such as India, South America, Africa, etc.
•
Opening of facilities such as the Bengaluru Innovation Center (India)•
Establishment of Colombian sales company•
Considering the establishment of other sites

Bengaluru Innovation Center
🄫 SAKATA SEED CORPORATION 2024

36

3. Group policies, strategies and specific initiative

Recent initiatives and future initiatives
Growth strategies and future challenges
Supply chain development

Seed storage facilities in major seed production areas around the world→ Chile, South Africa, America, France, etc.

Newly-opened large warehouses in France (left) and Chile (right)

🄫 SAKATA SEED CORPORATION 2024

37

3. Group policies, strategies and specific initiative
Approach to cash allocation
Over the medium to long term, balance cash inflows from operating
cashflow plus divestments from business portfolio changes, with cash
outflows that combine investments and shareholder returns.
Weather impacts performance from year to year, andmany years are required for product development

Cash outflows• Sale of the land of former
Garden Center Yokohama• Sale of breeding programs• Sale of lease assets in the
United States, etc.

Operatingcash flow

Investment amountSale of assets, etc.

Growth investment

Cash inflows

Strategic
investment

PolicyDeveloping areas of non-linear, long-term growth

Investments that lead to growth from a mediumto long-term perspective

Expansion
investment

Investment forstrengthening
foundation

Shareholder returns
🄫 SAKATA SEED CORPORATION 2024

While emphasizing shareholder returns, wewill actively allocate funds to growthinvestment

Expanding scale for growth of existing
businesses

Projects that are essential to the operation of existing
businesses(including projects to improve efficiency throughupdates)

Stable distribution of profits from a medium- tolong-term perspective38

3. Group policies, strategies and specific initiative
Approach to investment
Separate investment into growth investment and investment
for strengthening foundation, and allocate sufficient funds tostrategic investment
Orientation
Strategic investment 20～40%•

Growth investment

Investment amount

Developing areas of non-linear, long-term
growthInvestments that lead to growth from a••

New businesses (new crops/new productsegments)
M&A (genetic resources, new products)
Advanced breeding technology and seeds
production/processing technology

medium- to long-term perspective••

Strengthen profitability by anticipating needs
Build a profit base to support sustainablegrowthExpansion investment 60～80%•

Expanding scale for growth of existing•

Expand sales channels in emerging
markets
Expand logistics warehouses (capacity
expansion)
Purchase of farms and landbusinesses•

Examples• Start Strawberry breeding• Acquisition of Sana Seeds (Netherlands)• Acquisition of Isla (Brazil)• Opening of Woodland Innovation Center(United States)• Tropical breeding system• Expand Chilean raw seed warehouse• Establishment of Colombian sales
company• Relocation of Sakata Seed America
headquarters; expansion of offices andwarehouses

Investment for strengthening foundation•

Projects essential to the operation of existing•••

businesses

🄫 SAKATA SEED CORPORATION 2024

Update and improve aging existing
equipment
Update and improve facilities
Invest to improve operations
Natural disaster countermeasures,
environmental and safety measures• Update the headquarters core system• Renovation of Kakegawa ResearchCenter• Update equipment at the Yaita Logistics
Center39

3. Group policies, strategies and specific initiative

Recent investment projects and asset replacement
Procure necessary funds through asset sales in addition to operating cash flow
Profitable business model
2023
Acquisition of Isla (Brazil) approx. 1.68 billion yen
Acquisition of Sana Seeds (Netherlands)
approx. 630 million yen

Large sales projects
Strategic investment•
Develop areas of long-term
growth•Active investment in growthareas (emerging countries andfruit vegetables business)

2024
Sale of the land of former Garden
Center Yokohama (Japan) approx.
1.23 billion yen

Promote regional strategies
2023
Relocation of Sakata Seed America
headquarters; expansion of offices andwarehouses (United States)
Relocation of headquarters of Sakata Seed India
Pvt. Ltd. (India)

Expansion investment•
For growth of existing
businesses

2022
Sale of farmland of Sakata Seed
America, Inc. approx. 4.7 billion yen

Other asset replacement
2022
Establishment of new warehouse in Chile
Establishment of warehouse in France
🄫 SAKATA SEED CORPORATION 2024

2022
Selling of old sites throughout
Japan, including the Narita Branch40Response to achieve management that is consciousof capital costs and stock prices
1

Medium-term trends in results-1 Sales-2 Gross profit/operating profit

…

24～28

2

The Company’s philosophy and management
vision

…

29～31

3

Group policies, strategies and specific initiatives …

32～40

4

Current status, policies and initiatives regarding
capital return indicators

…

41～46

5

Dialogue with Shareholders and responses
that is conscious of stock prices

…

47～49

6

Recent topics

…

50～52

🄫 SAKATA SEED CORPORATION 2024

41

4. Current status, policies and initiatives regarding capital
return indicators
ROE (evaluation of current situation)
ROE（Net income/capital adequacy）
12.0%
11.0%
10.0%
9.0%
8.0%
7.0%

6.0%

Shareholder capital cost of approx. 6%

5.0%
4.0%
15/5

16/5

Net income margin

•
•

17/5

18/5

19/5

20/5

Total asset turnover rate

21/5

22/5

23/5

24/5

Financial leverage

ROE is increasing due to improved net profit margin
We recognize that it is currently trending higher than the cost of shareholders' equity

🄫 SAKATA SEED CORPORATION 2024

42

4. Current status, policies and initiatives regarding capital
return indicators
ROE (policies and initiatives）
1. Policy- Aim for sustainable improvement in ROE

2. Specific initiatives(1) Increase the net profit margin:→Realize growth strategies to increase sales, improve profit margins, andoptimize expenses(2) Increase the total asset turnover rate:→Increase sales→Achieving optimal inventory levels through advanced inventory management→Focus on optimal levels of fixed assets, cash and deposits, etc.
(3) Optimize our financial leverage:→ Be aware of the balance between net assets and liabilities

🄫 SAKATA SEED CORPORATION 2024

43

4. Current status, policies and initiatives regarding capital
return indicators
Market valuation and shareholder returns ((1) Stock price trends)
Excerpt from materials of Mizuho Securities

Comparison with major indicators(Indexed based on closing stock price as of May 31, 2014)(Stock price: JPY)

Sakatastock price

Nikkei averagestock priceMarch 2020
Stock prices crashworldwide amid spread of
COVID-19

February 24, 2022
Russia launches
military invasion of
UkraineThe green and blue areindicators based on ourstock price 10 years ago
14/6 14/10 15/3•••

15/8 16/1

16/6 16/10 17/3 17/8 18/1

18/6

18/11 19/4

19/8

20/1 20/6 20/11 21/4

21/8

22/1 22/6 22/11 23/4

23/9

24/1 24/5

Our stock price has tripled since 10 years ago
After the outbreak of the Russo-Ukrainian War, the price rose to the 5,000 yen range, but is now in the low
3,000 yen range
Compared to the index, the 10-year cumulative total is roughly the same

🄫 SAKATA SEED CORPORATION 2024

44

4. Current status, policies and initiatives regarding capital
return indicators
Market valuation and shareholder returns ((2) PBR)PBR（株価/1株あたり純資産額）
PBR (price-to-book ratio)
2.0
1.9
1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
1.0

0.9
0.8
15/5

•
•

16/5

17/5

18/5

19/5

20/5

21/5

22/5

23/5

24/5(LE2)PBR increased from the period ended May 31, 2015 to the period ended May 31, 2018, but has been
declining in recent years
Stock prices have not been able to outpace the growth rate of net assets and net profits

🄫 SAKATA SEED CORPORATION 2024

45

4. Current status, policies and initiatives regarding capital
return indicators
Market valuation and shareholder returns((3) Results and policies for shareholder returns)
(yen)
65

65

Dividend per share55+42 yen

45

35
25

23

25

15/5

16/5

28

30

17/5

18/5

33

33

19/5

20/5

38

45

( 65 )

55

15
21/5

22/5

23/5

24/5

25/5

(forecast)

Dividend
payout ratio/total return ratio
配当性向・総還元性向

DOE（純資産配当率）
DOE (dividends on equity)

50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

Stock
buy-back
自己株買1,477 (million
1,477（百万円）
yen)

Stock
自己株買
buy-back
908
908

Stock
自己株買
buy-back
1,824
1,824

15/5 16/5 17/5 18/5 19/5 20/5 21/5 22/5 23/5 24/5

•
•
•
•

Dividend
配当性向
payoutratio

Total
payout ratio
総還元性向

Dividends per share have steadily increased (+42 yen (an increase of approx. three times) compared to the fiscal year ended
May 31, 2015)
Increase in dividend payout ratio, total return ratio, and dividend on equity has been moderate
Stable and continuous strengthening of returns under a long-term stable policy
Flexibly acquire treasury stock, comprehensively considering cash and deposit levels, market trends, etc.

🄫 SAKATA SEED CORPORATION 2024

46

Response to achieve management that is consciousof capital costs and stock prices
1

Medium-term trends in results-1 Sales-2 Gross profit/operating profit

…

24～28

2

The Company’s philosophy and management
vision

…

29～31

3

Group policies, strategies and specific initiatives …

32～40

4

Current status, policies and initiatives regarding
capital return indicators

…

41～46

5

Dialogue with Shareholders and responses
that is conscious of stock prices

…

47～49

6

Recent topics

…

50～52

🄫 SAKATA SEED CORPORATION 2024

47

5. Dialogue with shareholders and responses that is consciousof stock prices
Promote dialogue with shareholders and strengthen the dissemination of information
Policy Expand opportunities for dialogue and strengthen information dissemination
Dialogue with institutional investors
Type

Corresponding party

Period ended May 31, 2024

Information session on financial
results

President Hiroshi Sakata, etc.

2 times

Small meeting

President Hiroshi Sakata, etc.

1 timeIndividual meetings withinstitutional investors

Senior Executive Officer & Manager of General Administration
Division Takenori Hoshi, etc.

Total of 182 times with 68
companies

Information session on R&D
farms

Executive Officer & Manager of Kakegawa Research Center
Manabu Kawamura, etc.

1 timeMain reporting themes for institutional investors• Performance trends (sales by region; selling, general and administrative expenses; etc.)• Growth strategy (basic ideas on investment policy, R&D policy, etc.), shareholder return policy, etc.

Status of implementing feedback
Type

Report contents

Report destination

Number of times
conducted annually

Periodic reporting

Questions, requests, etc., from institutional
investors

Members of the Boardof Directors, etc.

4 timeAfter each announcement ofquarterly financial results

Other thanperiodic reporting

When a significant matter occurs

Related directors, etc.

As necessary

Annual report

Summary of annual IR activities (number ofinterviews conducted, investor attributes,
main questions and requests, etc.)

Members of Board of
Directors, etc.

1 timeShareholder
summary report

Performance and analysis results in regard toshareholder attribute composition andincreases/decreases

Members of the Boardof Directors, etc.

1 time🄫 SAKATA SEED CORPORATION 2024

48

5. Dialogue with Shareholders and responses that is
conscious of stock prices
Enhancing the dissemination of information

Issue the Sustainability Report 2024
Explanation focusing on the relationship between the
Company’s business and sustainability
Disclosed on the Company’s website in May 2024
https://corporate.sakataseed.co.jp/sustainability/

Other responses that is conscious of stock prices

Cancellation of treasury stock•••

The Company will cancel 1,000,000 common stocks on July 26, 2024
Equivalent to approximately 2.1% of the total number of shares issued before
cancellation
The ratio of treasury stock holdings fell from 7.4% to 5.4%

🄫 SAKATA SEED CORPORATION 2024

49

Response to achieve management that is consciousof capital costs and stock prices
1

Medium-term trends in results-1 Sales-2 Gross profit/operating profit

…

24～28

2

The Company’s philosophy and management
vision

…

29～31

3

Group policies, strategies and specific initiatives …

32～40

4

Current status, policies and initiatives regarding
capital return indicators
Dialogue with Shareholders and responses thatis conscious of stock prices

…

41～46

…

47～49

Recent topics

…

50～52

5
6

🄫 SAKATA SEED CORPORATION 202450

6. Recent topics
1. New site in Colombia
Colombia is the third largest vegetable seed market in South America: A major
production/consumption area of fresh produce
One of the world’s largest production areas of cut flowers
The Sakata Group aims to become the top seed company in South America

Current sales products
Vegetables
Squash, Broccoli etc.

Flowers
Sunflower,
Campanulaetc.

Equator

Sakata Colombia S.A.S.
Sakata Seed Sudamerica
Sakata Seed Chile

Isla Sementes
Sakata Seed Argentina

🄫 SAKATA SEED CORPORATION 2024

51

6. Recent topics
2. Collaboration with Arysta LifeScience on BS materials (Solutions Business)
In the context of the shift away from pesticides and chemical fertilizers, attention is being focused on BS(biostimulant) materials globally
Spread against a backdrop of sustainability
Market is expanding globally, primarily in Europe and other developed countries

New product “GAXY”
Made a joint announcement with Arysta LifeScience
regarding exclusive domestic sales and collaboration

🄫 SAKATA SEED CORPORATION 2024

52

Vegetable nourishes the people's body andflower nourishes the people's soul
We aim for sustainable development of the environment, society, andagriculture and horticulture

🄫 SAKATA SEED CORPORATION 2024

53

Ⅳ Appendix

🄫 SAKATA SEED CORPORATION 2024

54

Results for period ending May 2024:
Breakdown of external sales (1)OthersBulbs 1
0%

4%

5%

Young
Domestic

Asia

Materials Others

6%

plants2%

23%

19%

Flower seeds
14%

By
region
地域別South America
8%

By品目別
product
North &
CentralEurope &Middle East

America
25%

Vegetable
seeds
72%

21%

🄫 SAKATA SEED CORPORATION 2024

55

Results for period ending May 2024:
Breakdown of external sales (2)Difference of sales YoY by product and region(after eliminating internal transactions)
Unit:100 million yen

苗木

球根

資材

その他

合計

Vegetable
野菜

花Flower

北中米North & Central America

29.7

6.2

0.0

－

-0.3

-0.3

35.3

欧州・中近東Europe & Middle East

24.7

5.8

－

－

－

2.4

33.0

南米
South America

20.0

0.5

－

－

－

0.7

21.1

アジア
Asia

7.7

16.3

0.8

0.1

0.0

-1.6

23.3

その他地域
Others

4.9

0.1

－

－

－

0.2

5.1

海外小計
Overseas subtotal

87.0

28.8

0.8

－

-0.3

1.4

117.8

Domestic subtotal
国内小計

-0.2

-0.4

-1.2

-0.7

-1.2

0.0

-3.6

Total
合計

86.8

28.5

-0.4

-0.7

-1.5

1.4

114.2

seeds

🄫 SAKATA SEED CORPORATION 2024

seeds

Young plants

Bulbs

Materials

OthersTotal

56

Results for period ending May 2024:
External sales by customers’ region (Quarterly change)
Overseas sales (by customers’ region)
Unit: thousand in（単位未満四捨五入）
local currency/million yen

第1四半期
1st Qtr

YoY(％) 第3四半期
前期比
増減率(%)
前期比 増減率(%)
前期比 増減率(%)
YoY
YoY
YoY(％) 第2四半期
2nd Qtr
3rd Qtr
YoY
YoY(％) 第4四半期
4th Qtr

前期比
YoY

増減率(%)
YoY(％)

累計
Total

前期比
YoY

YoY(％)
増減率(%)

北中米(1,000US$)
North&Central

North & Central America(1,000US＄)
America

21,901-589-2.6% 35,965

2,520

7.5% 35,865

2,078

6.1% 50,413

3,127

6.6%

144,145

7,134

5.2%

26,316284

1.1% 27,695

3,173

12.9% 24,355471

2.0% 38,059

4,677

14.0%

116,425

8,605

8.0%

44,625469

1.1% 56,319

6,943

14.1% 48,321

8,858

22.4% 85,889 28,295

49.1%

235,153

44,564 23.4%

3,676

670

22.3%

5,638

-61

-1.1%

2,510

89

3.7%

4,739

1,632

52.5%

16,5632,330 16.4%

6,524

-173

-2.6%

6,947

390

5.9%

4,347

89

2.1% 10,848

1,021

10.4%

28,667

1,327

381

41

11.9%

443

-36

-7.5%

214

34

18.9%

338

175 106.8%

1,376

214 18.4%

762

127

20.1%

759

-79

-9.4%

1,044

268

34.5%

984

197

3,549

513 16.9%

欧州・中近東(1,000EUR)
Europe & Middle East

(1,000EUR)
Europe&Middle
East

南米(1,000BRL)
South America(1,000BRL)
SouthAmerica

アジア（100万円）
Asia(Million Yen)
Asia

うち韓国(100万WON)
Korea out of the above(Million
WON) in Asia
Korea included

うちインド(100万INR)
India out of the above(Million
INR) in Asia
India included

4.9%

その他(100万円)（アフリカ・オセアニア)
Others (Africa, Oceania)(Million(Africa,Yen) Oceania)
Others🄫 SAKATA SEED CORPORATION 2024

25.1%

57

Attention regarding forecasts

This presentation document includes descriptions and materials on forecasts
regarding performance, strategies and business plans of Sakata Seed
Corporation. Those descriptions and materials are the Company’s estimates
based on information available at the time of announcement, not facts in thepast.
Also, they include potential risks and uncertain elements such as economic
circumstances, conditions of competition with other companies, and foreignexchange rates. Therefore, please acknowledge that the Company’s actual
performance, business development or financial conditions may turn out very
different to the forecasts given herein due to various economic, social andpolitical factors, including economic circumstances, competition in the industry,market demand and foreign exchange rates in the future.
Please refer to the annual securities report, the summary of consolidated
earnings report and the like for details on general uncertainty and fluctuating
elements.

🄫 SAKATA SEED CORPORATION 2024

58

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

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

🄫 SAKATA SEED CORPORATION 2024

59