Financial Results for the Third Quarter
Fiscal Year Ending December 31, 2021

Investor Relations Presentation Materials

ISEKI & CO., LTD.
November 12, 2021
President Shiro Tomiyasu

Index
1. Outline of Financial Results for the Third Quarter
Fiscal Year Ending December 31, 2021
2. Domestic and Overseas Markets

3. Performance Forecast for the Fiscal Year Ending
December 31, 2021
4. Topics
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

2

1. Outline of Financial Results for theThird Quarter Fiscal Year Ending
December 31, 2021

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

Key Points on Financial Results for the Third Quarter<Third Quarter Financial Results>

YoY increases to both sales and profit

Net Sales (3Q Cumulative)(JPY bn)(Results Breakdown)
Domestic:

Overseas:

Earnings:

Recovery from the reactionary decline after the consumption tax hike
Demand stimulated by government subsidies for agricultural business continuity,and a rebound since May
Decreased willingness to buy due to falling rice prices

Increased demand in North America and Europe in line with lifestyle changes, but ashortage of containers for marine transportation led to unfulfilled shipments andexpansions of other backorders.
In Asia, positive impact seen from making a Thai distributor a consolidated
subsidiary at the end of the previous fiscal year and increased sales of production
parts to China

120.5 119.1 120.9

111.6

123.4
Domestic

21.7% 21.2% 20.7% 21.7%

26.3%

Overseas

FY2017/12 FY2018/12 FY2019/12 FY2020/12 FY2021/12
3Q
3Q
3Q
3Q
3Q

Operating Income (3Q Cumulative)(JPY bn)

Gross profit buoyed by increased sales, but soaring raw material prices put
pressure on earnings

4.6
3.5

<Full-year Forecast>

5.8

4.5
3.1

Upwardly revised sales and profit, resumed dividends (30 yen)・Upwardly revised from the previous forecast (February) despite emergence of expectedrisks in Japan and overseas

FY2017/12 FY2018/12 FY2019/12 FY2020/12 FY2021/12
3Q
3Q
3Q
3Q
3Q

・Plan to resume dividend payment of 30 yen
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

4

Business Environment
✓
✓

YoY

Current Quarter(FY2020/12 3Q)(FY2021/12 3Q)

Reactionary decline after consumption tax hikeSelf restraint on sales activities due to COVID-19

Domestic

✓
✓
✓
✓

✓

North
America

Robust demand owing to growing demand resulting from consumers
staying at home
Delays in shipments of parts led to decreased shipments of tractors(temporary factors of the Company)✓✓

Increased demand due to lifestyle changes
A shortage of containers for marine transportation led to unfulfilledshipments and expansions of other backorders

Temporary closure of local retail outlets due to lockdowns⇒theCompany adjusted shipments
Partial recovery seen after store operations gradually resumed fromMay onwards✓

Robust demand for consumer goods newly uncovered owing to lifestylechanges
Local distributors continued operations as essential retail
Sales activities gradually returned to normal as vaccination progressed

China・Demand for agricultural machinery stimulated by government policies tosecure food and travel restrictions✓ ASEAN (Thailand)
・Drought affected farmers’ household income and demand for agricultural
machinery, but rainfall has generally recovered since September.
✓ South Korea
・ Demand for large agricultural machinery continued✓ Taiwan
・Increased demand due to subsidies for large agricultural machinery✓✓✓

Overseas

Europe✓✓Asia

Recovery from post-consumption tax hike reactionary decline
Impact of self restraint on sales activities due to COVID-19 eased
compared to previous year
Demand stimulated by government subsidies for agricultural business
continuity, and a rebound since May
Decreased willingness to buy due to falling rice prices

✓
✓

China
・Robust market continued, owing to factors including the continuation of
government policies to secure food and stabilization of grain prices✓ ASEAN (Thailand)
・Demand for agricultural machinery was on a recovery track, as thevolume of agricultural produce and crop prices began to recover lastyear
✓ South Korea
・Demand for large agricultural machinery continued✓ Taiwan・A pullback effect with the withdrawal of subsidies

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

5

Outline of Consolidated Business Performance(January 1, 2021 to September 30, 2021)(JPY bn, %)FY2019/12

FY2020/12

FY2021/12

3Q Actual%

3Q Actual%

3Q Actual%

YoY
ChangeNet Sales

120.9

100.0

111.6

100.0

123.4

100.0

11.8

(Domestic)

95.9

79.3

87.4

78.3

90.9

73.7

3.5

(Overseas)

24.9

20.7

24.1

21.7

32.4

26.3

8.2

Operating Income

4.5

3.7

3.1

2.8

5.8

4.7

2.6

Ordinary Income

3.2

2.7

2.8

2.5

6.5

5.3

3.6

Profit (Loss) Attributableto Owners of Parent

2.1

1.8

2.4

2.2

4.7

3.9

2.3

Average
Exchange
Rate (JPY)

US$

109.6

107.7

107.7

0.0

Euro

123.2

120.6

129.6

9.0

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

6

Domestic Sales
With agricultural machinery and farming implements recovering from the reactionary decline
following the consumption tax hike, and demand stimulated by government subsidies for
agricultural business continuity, etc., domestic sales increased overall.

21.3

17.3

18.8

1.4

Planting
Machinery

7.4

8.0

6.4

7.2

0.8

Harvesting &Processing
Machinery

13.7

14.1

11.9

11.7

(0.2)

Subtotal

42.2

43.4

35.7

37.8

2.0

Farming
Implements

16.0

17.1

15.2

17.9

2.6

Spare Parts

11.3

11.8

11.9

11.8

(0.0)

Repair Fees

4.1

4.3

4.4

4.5

0.1

31.5

33.3

31.6

34.3

2.6

73.7

76.7

67.4

72.1

4.7

Construction of Facilities

4.9

4.0

5.6

3.6

(1.9)

Others

15.1

15.2

14.3

15.1

0.7

93.9

95.9

87.4

90.9

3.5

Total

Total

＋13%

(6%)

28.4 25.3 25.0 28.2

35.5 34.5 32.1 34.3 29.9 36.0 30.1
28.3

FY2018Agricultural Machinery

Agricultural Machinery Related

Subtotal＋7%(Compared to FY2020)

1Q

2Q

FY2021

21.0(JPY bn, %)FY2020Cultivating &Mowing Machinery

FY20193Q Actual

FY20183Q Actual

FY2021

3Q Actual

Sales by Quarter

FY2020

3Q Actual

YoY
ChangeFY2019FY2021/12

FY2021

FY2020/12

FY2020FY2019/12

FY2019FY2018/12(JPY bn)

FY2018YoY¥3.5 billion

3Q✓ First half sales increased substantially year on year
・Recovery from reactionary decline following consumption tax hike・Demand stimulated by government subsidies for agriculturalbusiness continuity✓Third quarter sales lower year on year
・A pullback effect with the withdrawal of government subsidies for
agricultural business continuity
・Decreased willingness to buy due to falling rice prices

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

7

Overseas Sales
3Q Actual

3Q Actual

Sales by Quarter(JPY bn, %)

9.2

11.3

＋77%

2.1

Europe

10.8

9.9

9.2

13.3

4.0

Asia

5.5

4.4

5.4

7.3

1.9

12.2

8.4

7.9

6.8
FY202010.1

FY20198.6

FY2018North
America(Compared to FY2020)

＋46%
9.8

9.6

8.1

1Q

Others

0.2

0.3

0.2

0.3

0.0

(8%)

11.8
6.9

7.4

2Q

9.2

8.4
FY2021

3Q Actual

FY2020

3Q Actual

YoY
ChangeFY2019FY2021/12

FY2018FY2020/12

FY2021FY2019/12

FY2020FY2018/12

FY2019(JPY bn)

FY2018¥8.2 billion

Sales in North America and Europe increased owing to rising demand in line with lifestyle changes
In Asia, making a Thai distributor a consolidated subsidiary had a positive impact (at the end of
the previous fiscal year), and sales to China increased

FY2021YoY

3Q✓ First half sales increased substantially year on year

・Increased demand in North America and Europe in line withlifestyle changes

Total Sales

25.2

24.9

24.1

32.4

8.2

✓Third quarter sales lower year on year
・Orders remained robust・Container shortage hampered shipments

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

8

Operating Income
In addition to increased gross profit buoyed by higher sales, operating income
YoY
increased owing to special factors, including the absence of a loss on valuation
parts inventory recorded in the previous fiscal year, but soaring raw material¥2.6 billion ofprices are putting pressure on earnings
FY2018/12

FY2019/12

FY2020/12

FY2021/12

3Q Actual

3Q Actual

3Q Actual

3Q Actual

Net Sales

119.1

120.9

111.6

123.4

11.8

Gross Profit

35.3

35.8

33.1

37.2

4.0

29.7%

29.6%

29.7%

30.1%

0.4%

(JPY bn, %)GrossProfitMargin
SG&A
Expenses

YoY
Change

31.7

31.2

29.9

31.3

1.4

Personnel
Expenses

18.7

18.3

17.9

18.5

0.5

Other
Expenses

13.0

12.9

11.9

12.8

0.9

3.5

4.5

3.1

5.8

2.6

Operating
Income[Breakdown of YoY Change]
Increase in gross profit: ¥4.0 billion

3.8

(0.4)

0.6

(1.4)
5.8

3.1
FY2020/12
3Q

Increasedgross profit
due tohigherrevenue

Impact fromsoaring raw
materials
pricesSpecialfactors*

Increased
SG&A
expenses due
to higher
revenue

FY2021/12
3Q*Special factors
・Absence of loss on valuation of parts inventory included in the previous fiscal year
・Decline in depreciation in line with posting an impairment loss in the previous fiscal year

0.2
0.4

[Effect of FOREX Fluctuations (JPY bn)]
Net Sales

Cost of Sales

SG&A Expenses

Operating Income

0.8

(0.5)

(0.1)

0.2

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

9

Operating Income by Quarter
Operating Income by Quarter(JPY bn, %)Operating
IncomeMargin 3.7%
3.0%(Compared to FY2020)

＋37%

1.4
(0.5)

(0.7)

2.7

2.3

2.3

3.2

2.8

1.8

1.3

(42%)

4.5

3.5

1.1

4.7%
2.8%

5.8
3.1

(1.1)

FY2018 FY2019 FY2020 FY2021 FY2018 FY2019 FY2020 FY2021 FY2018 FY2019 FY2020 FY2021

2Q

1Q✓Profit in the first half increased
substantially year on year
・Strong sales in Japan and overseas✓Third quarter sales lower year on year
・ YoY decline in Japan and overseas
・ Raw material price hikes in full swing

3Q

FY2018 FY2019 FY2020 FY2021

3Q Cumulative Total✓3Q cumulative・ Due to measures to stimulate demand andother factors, profitability is on an upward
trend, although there are special factors ineach fiscal year.

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 202110

Ordinary Income and Profit
Ordinary
income YoY¥3.6 billion

In addition to favorable shifts in foreign exchange gain (loss) and smaller shareof loss of entities accounted for using the equity method, profit increased due
mainly to one-off posting of non-operating income.
Non-operating Income (YoY Change)

FY2019/12

FY2020/12

FY2021/12

3Q Actual

3Q Actual

3Q Actual

YoY
ChangeOperating Income

4.5

3.1

5.8

Balance of Financial Income

(0.5)

(0.5)

Other Non-operating Income(0.6)

Ordinary Income

3.2(JPY bn)

Extraordinary Income

0.1

Foreign exchange gain (loss)¥0.3 billion

2.6

Share of loss of entities accounted forusing the equity method¥0.1 billion

(0.4)

0.0

Settlement received¥0.4 billion

0.1

1.1

2.8

6.5

0.9 (Reference) Related to equity method
3.6
FY2020/12
FY2021/12

0.6

0.0

(JPY bn)(0.6)

Extraordinary Losses

(0.2)

(0.0)

(0.2)

(0.1)

Income Before Income Taxes

3.1

3.4

6.3

2.9

Income Taxes - Deferred

(1.0)

(1.0)

(1.5)

(0.5)

Profit (Loss) Attributable to
Owners of Parent

2.1

2.4

4.7

2.3

3Q Actual

Change3Q Actual

Share of profit (loss) ofentities accounted forusing the equity method(non-operating)(0.25)(0.12)

0.13

Gain (loss) on change inequity (extraordinary)

0.65

–

(0.65)*Entities accounted for using the equity method
Previous fiscal year: Dongfeng Iseki, IST
Current fiscal year: Dongfeng Iseki

2 companies
1 company

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

11

Balance Sheet (Consolidated)
YoY Change:

Higher sales and lower inventories this year led to improved balance of income ⇒ Cash & deposits increased
Non-current assets decreased ⇔ Interest-bearing liabilities and capital decreased

As ofSep. 30,
2020

As of
Sep. 30,
2021

YoY
ChangeAs ofSep. 30,
2020

As of
Sep. 30,
2021

YoY
Change

7.5

12.5

4.9

Accounts Payable - Trade

35.8

37.1

1.3

Accounts Receivable – Trade

33.2

31.3

(1.8)

Interest-bearing Liabilities

80.6

69.7

(10.9)

Inventories

53.4

48.2

(5.1)

(Loans Payable)

72.7

62.2

（10.4）(Merchandise & Finished Goods)

45.6

39.9

（5.7）

Other Liabilities

19.1

18.8

(0.3)

Other Current Assets

4.2

4.2

0.0

(Deferred Tax Liabilities for Land Revaluation)

5.7

4.0

（1.6）

Total Current Assets

98.4

96.4

(2.0)

Total Liabilities

135.6

125.6

(9.9)

Property, Plant and Equipment

96.6

85.0

(11.6)Net Assets

Intangible Assets

1.5

2.2

0.7

70.5

67.7

(2.7)

Investments and Other Assets

9.5

9.6

0.1

(Retained Earnings)

18.7

19.2

0.5

Total Non-current Assets

107.7

97.0

(10.6)(Revaluation Reserve for Land)

12.6

8.8

（3.7）

Total Assets

206.1

193.4

(12.7) Total Liabilities and Net Assets

206.1

193.4

(12.7)(JPY bn)
Cash & Deposits

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

12

Equity Ratio / Interest-bearing Liabilities
Interest-bearing
liabilities, D/E ratio

A decrease in loans payable led to a decrease in interest-bearing liabilities
D/E ratio improved to 1.03

Balance of Interest-bearing Liabilities (JPY bn)
100

80

33.0

32.0

30.8

78.1

75.1

74.1

32.2

33.4

79.5

80.6

34.1

Equity Ratio (%)
35
30

69.7

25
20

60

15
10

40

5
20

0

16/9

17/9

18/9

19/9

20/9

21/9

Loans payable,
corporate bonds

69.6

67.0

68.8

72.3

72.7

62.2

Lease obligations

8.4

7.0

6.3

7.1

7.9

7.4

Total

78.1

74.1

75.1

79.5

80.6

69.7

D/E Ratio

1.19

1.05

1.05

1.14

1.14

1.03

Note: D/E Ratio = Interest-bearing liabilities (incl. Lease liabilities) / Net assets
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

13

2. Domestic and Overseas Markets

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

Domestic Agricultural Machinery Market Trends
Despite a boost in demand from government subsidies for agriculturalbusiness continuity, the pace of recovery was moderate due to the prolonged
impact of COVID-19 and the falling price of rice.

Domestic
Agricultural
Machine Demand■ Agricultural machinery demand (shipments in the industry)
Oct. 2019
Consumption tax increase(9 principal machinery, moving annual total)(JPY bn)(JPY bn)

280.0
260.0
240.0
220.0
200.0

Mar.

Jun.

Sep.

2017

Dec.

Mar.

Jun.

Sep.

2018

Dec.

Mar.

Jun.

Sep.

2019

Dec.

Mar.

Jun.

Sep.

2020

Dec.

Mar.

Jun.

Sep.

2021

*9 principal machinery: Tractors, combine harvesters, rice transplanters, tillers, drying machines, rice huskers, binders, harvesters, treatment
Source: Estimated by ISEKI from statistics provided by the Japan Agricultural Machinery Manufacturers Association
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

15

Domestic Agricultural Machinery Shipments and ISEKI’s Performance
ISEKI’s Sales
Performance

ISEKI’s performance trended above that of the rest of the industry, owing tosales factors including the effect of offering new rice transplanter products

YoY growth rate for 9 principal machinery categories (moving annual total)
Oct. 2018Sep. 2019

Oct. 2019Sep. 2020(%)

Oct. 2020Sep. 2021

Industry(Amount ofshipment)

115%

75%

107%

ISEKI

(Sales amount)

105%

77%

111%

*ISEKI estimates*9 principal machinery: Tractors, combine harvesters, rice transplanters, tillers, drying machines, rice
huskers, binders, harvesters, treatment

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

16

Trends in Agricultural Administration■FY2022 Budget Estimates for Agriculture, Forestry and Fisheries
General Program to Support Smart Agriculture Measures

Figures in parentheses indicate
the initial budget for FY2021.

¥3.2 billion (¥1.4 billion)

Support labor saving through an integrated mechanization system, in order to accelerate thesocial implementation of smart agriculture.
Project for Development and Demonstration of Technologies
to Realize a Sustainable Food Systems Strategy MeaDRI¥6.5 billion yen (–)
Promote the introduction and demonstration of superior technologies in smart agriculture.

Sustainable Management Support Subsidy¥12.0 billion (–)

Support the introduction of agricultural machinery and facilities necessary for efforts toimprove production efficiency for sustainable agriculture.
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

17Market Trends (North America, Europe)
EuropeNorth America
1. Market Trends(1000 units, %)Jan. to Sep. cumulative
Category (PTO HP)

2019

2020

2021

YoY

40HP and lower(Compact tractors)

142

167

187

112%

40HP - 100HP(Utility tractors)

48

54

61

114%

100HP and above

15

15

19

128%

(Source: statistics provided by AEM)

2. Situation of AGCO (OEM partner)
Unit sales (Jan.-Sep. 2021)➢ Compact tractors: YoY 112%

1. Market Trends
・Robust demand for consumer goods continues owing tolifestyle changes
・With the gradual cessation of the spread of COVID-19,
demand for pro goods is also expected to gradually
recover.

2. Local Sales
Unit sales (Jan.-Sep. 2021)➢ Local distributors: YoY 129%

3. Shipments and Orders at ISEKI

3. Shipments and Orders at ISEKI
Shipments and Orders(Jan.-Dec. 2021): YoY 162%
・A shortage of containers for marine transportation led to unfulfilled shipments, etc.

Shipments and Orders(Jan.-Dec. 2021): YoY 235%
・A shortage of containers for marine transportation led to unfulfilled shipments, etc.

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

18

Market Trends (Asia)
Thailand

1. Market Trends

1. Market Trends
Demand for agricultural machinery was on a recovery
track, as the volume of agricultural produce and crop
prices began to recover last year

2. Situation of Local Distributor, IST Farm Machinery
Number of Units Sold (Jan.-Sep. 2021)➢ ASEAN Strategy Tractor: YoY 99%

3. Shipments and Orders at ISEKI
Shipments and Orders(Jan.-Dec. 2021):

Indonesia, Myanmar<Indonesia> Government tenders were lower than the initial forecast, asbudget was partially allocated to COVID-19 countermeasures<Myanmar> Sales activities of sales outlets were affected by a chaotic
domestic situation due to the coup d'état

2. Orders at ISEKI (Jan.-Dec. 2021)<Indonesia> YoY increase owing to government tenders and strengthening of general
sales
Further promotion of sales centering on local brand power<Myanmar> YoY decline on the impact of the coup d'état
Sales activities stagnated as the chaos became prolonged

3. PT. ISEKI Indonesia (Manufacturing Subsidiary)(Units, JPY bn)

2020

2021

2020 Actual

Jan.-Sep.
Actual

Production Volume

10,7607,550

14,63011,300Operating Income

0.3

0.2

0.4

0.2

Significant YoY increase

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

2021 Plan

Jan.-Sep.
Actual19

Market Trends (Asia)
South Korea, Taiwan

China
1. Market Trends
Trends in the Chinese Agricultural Machinery Industry by Product Type(YoY Change in Units, %)Jan.-Sep.
2019

Jan.-Sep.
2020

Jan.-Sep.
2021

Rice Transplanters (Riding)

89%

137%

133%

Combine Harvesters (Allpurpose, Auto-threshing)

82%

110%

89%

Tractors (Medium- toLarge-sized)

106%

133%

109%

Source: China Association of Agricultural Machinery Manufacturers

2. National Government Subsidy(RMB bn)

2015

2016

2017

2018

2019

2020

202１

23.8

23.7

18.6

18.6

18.0

17.0

19.0

3. Situation of Dongfeng Iseki (Number of Units Sold, Jan.-Sep. 2021)➢ Rice transplanters (riding): YoY 100%
➢ Tractors, combine harvesters: YoY 123%

1. Market Trends<South Korea> In line with moves toward large-scale farming,
demand for large-sized, high-performance
agricultural machinery heightened amidst a
declining and aging farming population<Taiwan>Demand for large-sized agricultural machinery
continued; a pullback effect with the withdrawal ofsubsidies

２．Shipments and Orders at ISEKI
Shipments and Orders (Jan.-Dec.2021): YoY 86%<South Korea> In line with market trends, large-sized, highefficiency combine harvesters performed well.
Shipments of tractors fell due to inventory
adjustments at distributors<Taiwan>
Shipments decreased YoY due to the impact of areactionary decline with the withdrawal of subsidies
and the COVID 19 pandemic, but remained almost
as planned

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

20

3. Performance Forecast for the
Fiscal Year Ending
December 31, 2021

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

Assumptions for Consolidated Performance Forecast<Predictions on the business environment>✓ The spread of COVID 19 is coming under control, but economic activity remains disrupted, and weneed to be wary of a sixth wave of infections.
✓ Demand will be stimulated by government subsidies for agricultural business continuity but there
will be decreased willingness to buy due to the falling price of rice
✓ Raw material price hikes will be in full swing
Incorporated Risks

Domestic✓ Reactionary pullback after demand stimulated by government subsidies for
agricultural business continuity, etc.
✓ Decreased willingness to purchase due to lower price of rice
✓ Production delays due to delays in delivery of parts

Overseas✓ Shortage of containers leads to unfulfilled shipments and expansions of otherbackorders

Cost aspect✓ Raw material price hikes are in full swing
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

22

Forecast of Consolidated Financial Results for the Fiscal
Year Ending December 31, 2021
Consolidated
Financial Results
Forecasts

Upward revision of both sales and profits
Resumption of dividend payment of 30 yen*2 Announced Nov. 12, 2021

FY2018/12

FY2019/12

FY2020/12

FY2021/12

FY2021/12

ActualActualActualForecast*1

Forecast*2(JPY bn)

Net Sales*1 Announced Feb. 15, 2021

YoY Change

Change fromprevious forecast

155.9

149.8

149.3

153.5

159.0

9.6

5.5

(Domestic)

122.8

117.7

115.9

117.9

117.9

1.9

0.0

(Overseas)

33.1

32.1

33.3

35.6

41.1

7.7

5.5

Operating Income

3.1

2.7

2.0

3.6

4.0

1.9

0.4

Operating Income Margin

2.0%

1.8%

1.4%

2.3%

2.5%

1.1%

0.2%

Ordinary Income

2.6

1.1

1.7

3.5

4.7

2.9

1.2

Profit Attributable to
Owners of Parent

1.0

0.7

(5.6)

2.4

3.4

9.0

1.0

Average
Exchange Rate
(JPY)

US$

110.2

109.3

107.0

105.0

108.0

1.0

3.0

Euro

130.9

121.6

121.5

123.0

130.0

8.5

7.0

Year-end Dividend (JPY)

30.0

30.0

0.0

Undetermined

30.0

30.0

–

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

23

Quarterly Performance Forecast
Domestic Sales

Overseas Sales(JPY bn, %)(JPY bn, %)(Compared to FY2020)+7%(Compared to FY2020)

+46%

+77%

+13%

(6%)

(6%)

(6%)

(8%)

1Q

12.2

2Q

3Q

4Q

1Q

2Q

8.4

7.8

7.1

3Q

9.1

8.6

FY2021

9.2

FY20207.4

FY20196.9FY20188.1

6.8

FY2021

7.9

FY20208.4

9.6

FY201911.8
9.8

FY2018FY2020FY2019FY2018FY2021

FY2020FY2019FY2018FY2021

FY2020FY2019FY201821.7

26.9

FY202028.5

FY201928.9FY201828.3

FY202130.1

FY202136.0
29.9

FY202034.3

FY201932.1

FY201828.2

FY202125.0

FY202025.3

FY2019FY201828.4

34.5

FY2021

35.5

4Q✓Sales in the fourth quarter are expected to be lower year on year both in Japan and overseas
・ Reactionary decline with the withdrawal of government subsidies for agricultural business continuity
・ Decreased willingness to buy due to lower price of rice・ Stagnant shipments due to the container shortage
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

24

Quarterly Financial Results Forecast
Operating Income by Quarter
Operating
IncomeMargin
2.0% 1.8%(JPY bn, %)(Compared to FY2020)

+37%

1.4
(0.5)

(0.7)

2.7

2.3

2.3

1.4%

3.2
1.3

2.8

1.8 (42%)
1.1

3.1

(69%)
(0.4)

(1.1)

2Q

3Q

2.7

4.0

2.0

(1.7) (1.0) (1.8)

FY2018 FY2019 FY2020 FY2021 FY2018 FY2019 FY2020 FY2021 FY2018 FY2019 FY2020 FY2021 FY2018 FY2019 FY2020 FY2021

1Q

2.5%

4Q

FY2018 FY2019 FY2020 FY2021

Full Year
4Q Cumulative Total✓YoY decline in sales in the fourth quarter✓ Full-year targets for the first year of the Mid-Term Management Plan are
expected to be achieved.
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

25

4. Topics

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

Mid-Term Plan Basic Strategy:
ESG

Topics■ Application for Selection in the New "Prime Market" Segment✓ISEKI was confirmed to satisfy the criteria for listing on the Prime Market according to the results of the initial assessmentof compliance with the listing maintenance criteria for the new market segments by the Tokyo Stock Exchange.
✓At a meeting of the Board of Directors held on August 31, 2021, it was resolved to select the "Prime Market" from among
the new market segments. ISEKI’s application for selection in the new market segment is currently pending.

■ Formulation of the Iseki Group Health Management Declaration (Oct. 2021)✓Maintain and improve the health of each and every employee by implementing measures based on the three pillars ofhealth below.
Promote health management to improve engagement and achieve sustainable growth for the Group.
✓ Basic Health Policy
1. Physical health (individual guidance based on health examination results, implementation and dissemination of healthpromotion measures, thorough safety education and prevention of occupational accidents)
2. Mental health (reinforcement of line care and self-care, encouragement of communication among employees,
establishment of external consultation services)
3. Lifestyle health (maintaining work-life balance, promoting use of paid leave system)*For details, please refer to the News page on ISEKI’s website (in Japanese only). https://www.iseki.co.jp/news/
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

27

Mid-Term Plan Basic Strategy:
Selection & Concentration

Topics■ Received the “2021 Special Development Award” from The Japanese Society ofAgricultural Machinery and Food Engineers<Award Details>

Development of Sanae PRJ and PR Rice Transplanters (Riding)Equipped with the industry's first"Operesta Turn" function
ISEKI’s unique straight-travel and turningassistance system provides straight-travel andturning assistance operations during planting.
This enables both skilled and inexperienced
farmers alike to work efficiently.
In this way ISEKI is supporting large-scale
agriculture!

Sanae PRJ8 flagship model in ISEKI’s All Japan series

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

28

New Product Announcement✓ Smart agricultural machinery utilizing robot, ICT andother technology✓ Field and vegetable cropping machinery for large-scale
production that is expanding✓ Strengthening services that contribute to the resolutionof issues facing agricultural managers

Making an appeal to a broad audience through video streaming
Release date

Wednesday, December 8, 2021(to be confirmed)

Release theme

Providing the best solutions for realizing the agriculture of our dreams

Format・Video streaming (of domestic products) on the official ISEKI YouTube site
・Releases on the Company website and in the media
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021

29

Notes on the Future Forecast• The objective of this presentation document is to provide information and never intends to induce any action.
• The document was created by ISEKI with currently available information and it involves potential risks anduncertainties. The forecast may not be consistent with actual results depending on fluctuation of the economic
situation and market trends.
• In using this information, investors are expected to depend on their own judgment. ISEKI is not liable for any
losses incurred by investment decision made utilizing the business forecast or targets given in this document.

ISEKI Group joins the nationwide action called “COOL CHOICE”
run by the Ministry of the Environment Government of Japan,
which promotes to make ”smart choices” for the global warming.
As a proposal of “smart choices”, we develop and deliverenvironmental-friendly products like “eco products”.

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 202130