Financial Results for the Third Quarter
Fiscal Year Ending December 31, 2020

Investor Relations Presentation Materials
November 12, 2020

President Shirou Tomiyasu

Index
1. Outline of Financial Results for the Third Quarter
Fiscal Year Ending December 31, 2020
2. Domestic and Overseas Markets
3. Performance Forecast for the Fiscal Year Ending
December 31, 2020
4. Topics
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20202

1. Outline of Financial Results for the Third Quarter
Fiscal Year Ending December 31, 2020

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

Impact of the Novel Coronavirus (COVID-19) and Other Factors on
Consolidated Business Performance<Domestic>
Sales declined due to self-restraints on sales activities including the cancelation of exhibitions owing to the impact
of COVID-19 and the pullback against the last-minute demand ahead of the consumption tax rate increase, etc.

<Overseas>
North America ： Sales declined, impacted by reduced shipments of tractors to OEM partners owing to adelay in receiving engines purchased for installation in the first half, despite the growing
demand for tractors by consumers staying at home as a result of the impact of COVID-19.
Europe： Despite the current recovery trend, stagnant local sales primarily due to the temporary
closure of local distributors’ outlets under the spring lockdown, which continued to impact
shipments from the Company and our French sales subsidiary, leading to a decline in sales.

China： Sales of rice transplanters continued to be robust.

ASEAN： Sales declined due to the decrease in the number of bids in Indonesia.

Asia： Sales in South Korea and Taiwan were strong.

<Impact of COVID-19 (Analysis by the Company)>
Impact on net sales: Japan: ¥(2.8) billion, Overseas: ¥(0.7) billion, Total: ¥(3.5) billion
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20204

Outline of Consolidated Business Performance(January 1, 2020 to September 30, 2020)
FY ended Dec. 2019
(JPY bn, %)3Q Actual%

FY ending Dec. 2020
3Q Actual%YoY Change

Net Sales

121.0

100.0

111.6

100.0

(9.4)

(Domestic)

96.0

79.3

87.4

78.3

(8.6)

(Overseas)

25.0

20.7

24.2

21.7

(0.8)

Operating Income

4.5

3.7

3.2

2.8

(1.3)

Ordinary Income

3.2

2.7

2.8

2.5

(0.4)

Profit (Loss) attributableto owners of parent

2.1

1.8

2.4

2.2

0.3

Averageexchange
rate (yen)

US$

109.6

107.7

(1.9)

Euro

123.2

120.6

(2.6)

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

5

Domestic Sales
YoY-¥8.6 billion

Sales declined overall, as sales of agricultural machinery and farming implements decreased dueto the pullback against the last-minute demand ahead of the consumption tax rate increase andthe impact of COVID-19, despite strong sales of spare parts and revenue from repair fees.
FY ended Dec.
2019

FY endingDec. 2020

3Q Actual

3Q Actual

Cultivating & Mowing
Machinery

21.3

17.3

(4.0)

Tractors: (3.7)

Planting Machinery

8.0

6.4

(1.6)

Rice transplanters: (1.5)

Harvesting &Processing Machinery

14.1

12.0

(2.1)

Combine harvesters: (1.6)

Subtotal

43.4

35.7

(7.7)

Farming Implements

17.2

15.3

(1.9)

Spare Parts

11.8

12.0

0.2

Repair Fees

4.4

4.4

0.0

33.4

31.7

(1.7)

Total

76.8

67.4

(9.4)

Construction of Facilities

4.0

5.6

1.6

Others

15.2

14.4

(0.8)

Total

96.0

87.4

(8.6)

(JPY bn)

Agricultural
Machinery

Agricultural Machinery Related

SubtotalYoY Change

Main factors of YoY changes

Notes

✔

Sales of agricultural machinery decreased ¥7.7
billion due to the pullback against the last-minutedemand ahead of the consumption tax rate increase,and cancelations of exhibitions and self-restraints onsales activities owing to the impact of COVID-19.
Sales of farming implements decreased in tandemwith the decreased agricultural machinery sales.

✔

Sales of spare parts and revenue from repair fees
continued to be strong.

■ Sales of spare parts and revenue from repair fees
(Cumulative from Jan. to Sept., in billions of yen)

15.3

16.2

16.4

15.5

14.8

FY ended Dec.
2016

FY ended Dec.
2017

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

FY ended Dec.
2018

FY ended Dec. FY ending Dec.
2019
2020

6

Overseas Sales
YoY-¥0.8 billion

Sales declined overall due to a decrease in sales to North America, Europe, and ASEAN, despite
an increase in sales to South Korea, Taiwan, and China.
FY ended
Dec. 2019

FY endingDec. 2020

3Q Actual

3Q Actual

North America

9.8

8.7

(1.1)

Tractors: (1.1)

Europe

7.8

7.1

(0.7)

Tractors: (0.1)
Lawn mowers: (0.5)

China

0.1

0.6

0.5

Rice transplanters: 0.5

ASEAN

1.0

0.6

(0.4)

Tractors: (0.3)
Combine harvesters: (0.1)
Tractors: 0.2
Combine harvesters: 0.8(JPY bn)

YoY Change
Notes

Others

3.1

4.1

1.0

Product Sales Total

21.8

21.1

(0.7)

Parts & Others

3.2

3.1

(0.1)

Total Sales

25.0

24.2

Main factors of YoY changes

(0.8)

✔

North America:

Lower sales due to the impact of
decreased shipments, owing to a delay inreceiving engines in the first half, despite
the growing demand for tractors by
consumers staying at home✔

Europe:Decline in sales due to the failure to castaside the impact of the spring lockdown,
despite the current recovery trend✔

China:

Continuing increased sales due toincreased shipments of semi-finished ricetransplanters✔

ASEAN:

Lower sales due to decreased shipmentsof tractors to Indonesia✔

Others:Higher sales due to increased shipments
to South Korea and Taiwan

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20207

Operating Income
YoY-¥1.3 billion

YoY decrease in operating income due to the decrease in gross profit stemming from arevenue decline and the recording of loss on valuation of parts inventory, despite the reductionof selling, general and administrative expenses.
[Breakdown of YoY Change]
FY ended
Dec. 2019

FY endingDec. 2020

3Q Actual

3Q Actual

Net Sales

121.0

111.6

(9.4)

Gross Profit

35.8

33.1

(2.7)

29.6%

29.7%

＋0.1%

(JPY bn, %)Gross Profit Margin
SG&A Expenses

31.3

29.9

(1.4)

Personnel
Expenses

18.4

18.0

(0.4)

Other Expenses

12.9

11.9

(1.0)

4.5

3.2

(1.3)

Operating Income

(2.7)

YoY
Change

(0.2)

1.4

0.2

4.5
3Q of FY
ended
Dec. 2019

3.2
Decreasedgross profit due
to decreased
revenue

Recording ofloss onvaluation ofparts inventory
accompanying
delay inreceiving
enginespurchased

Decreased
SG&A expenses

Others3Q of FY
endingDec. 2020[Effect of forex fluctuations (JPY bn)]
Net Sales

Cost of
Sales

SG&A
Expenses

Operating
Income

(0.2)

(0.2)

(0.0)

0.0

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20208

Ordinary Income and Profit
Ordinary
income YoY-¥0.4 billion

Decreased profit YoY, despite reduced foreign exchange losses and a reduction in the extent of decreased
profits owing to a reduction in the share of loss of entities accounted for using equity method as a result of
the improved revenue of Dongfeng Iseki and a reduction in our investment ratio, among others.

FY ended Dec.
2019

FY endingDec. 2020

3Q Actual

3Q Actual

Operating Income

4.5

Balance of Financial Income

YoY
ChangeNon-operating Income (YoY change)

3.2

(1.3)

Decrease in share of loss of entities
accounted for using equity method

0.7 billion yen

(0.6)

(0.5)

0.1

Decrease in foreign exchange losses

0.2 billion yen

Other Non-operating Income

(0.7)

0.1

0.8

Ordinary Income

3.2

2.8

(0.4)

Extraordinary Income

0.1

0.7

0.6

(JPY bn)

Extraordinary Losses

(0.2)

(0.1)

0.1

Income before Income Taxes

3.1

3.4

0.3

Income Taxes - Deferred

(1.0)

(1.0)

±0.0

Profit (Loss) Attributable to
Owners of Parent

2.1

2.4

0.3

(Reference) Related to equity method(JPY bn)

FY ended Dec.
2019
3Q Actual

FY ending Dec.
2020
3Q Actual

ChangeShare of profit or loss ofentities accounted for using
equity method (non-operating)

(1.0)

(0.3)

0.7

Loss (gain) on change inequity (extraordinary)

-

0.7

0.7

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20209

Balance Sheet (Consolidated)
YoY

Accounts receivable – trade decreased year-on year due to lower domestic and overseas net sales while
Inventories increased due to a reduction of inventories in the previous year resulting from a rise in demand
before consumption tax hike.
As of
Sep. 30, 19

As ofSep. 30, 20

As of
Sep. 30, 19

As ofSep. 30, 20

ChangeCash & Deposits

7.0

7.5

0.5

Accounts Payable - Trade

40.4

35.8

(4.6)

Accounts Receivable – Trade

37.9

33.3

(4.6)

Interest-bearing Liabilities

79.6

80.7

1.1

Inventories

52.6
5.5

53.5
4.2

0.9
(1.3)

(Loans Payable)

72.4

72.8

0.4

(Lease obligations)

7.2

7.9

0.7

2.8

1.5

(1.3)

Other Liabilities

21.9

19.2

(2.7)

Total Current Assets

103.0

98.5

(4.5)

Total Liabilities

141.9

135.7

(6.2)

Property, plant and equipment

97.4

96.7

(0.7）

6.8

7.2

0.4

Net Assets

70.0

70.5

0.5

1.3
10.2

1.5
9.5

0.2
(0.7)

(Retained Earnings)

18.4

18.7

0.3

5.8

5.2

(0.6)

0.2

0.0

(0.2)

Total Non-current Assets

108.9

107.7

(1.2)

(Valuation Difference on Available-forsale Securities)(Foreign Currency Translation
Adjustment)

0.5

1.0

0.5

Total Assets

211.9

206.2

(5.7)

Total Liabilities and Net Assets

211.9

206.2

(5.7)

(JPY bn)

Other Current Assets(Short-term loans receivable)(Lease assets)

Intangible assets
Investments and Other Assets(Investment securities, Capital)

ChangeFinancial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202010

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

Interest-bearing liabilities increased due to a increase in lease obligations.
D/E ratio is in line with the previous year.

Balance of Interest-Bearing Liabilities (JPY bn)

15/9
Loans payable,
corporate bonds
Lease obligations

Equity Ratio (%)

16/9

17/9

18/9

19/9

20/9

63.1

69.7

67.1

68.8

72.4

72.8

9.2

8.5

7.1

6.3

7.2

7.9

Total

72.3

78.2

74.2

75.1

79.6

80.7

D/E Ratio

1.05

1.19

1.05

1.05

1.14

1.14

Note : D/E Ratio=Interest bearing liabilities(incl. Lease liabilities)/Net assets
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202011

2. Domestic and Overseas Markets

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

Domestic Agricultural Machinery Market Trends
Domestic
agricultural
machinery
demandDue to the pullback against the last-minute demand ahead of the consumption tax rate increase in
October 2019, together with the impact of the novel coronavirus (COVID-19), the demand was lower
than it was before the start of the previous last-minute demand in 2018.

■ Agricultural machinery demand (shipments in the industry)(9 principal machinery, moving annual total)

Oct. 2019
Consumption tax
rate increase(JPY bn)

280.0
260.0
240.0
From Oct. 2018
Shipments of tractor models jointly andbulk purchased by the JA-Group

220.0
200.0

Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep.
2016

2017

2018

2019

2020

*9 principal machinery: Tractors, combine harvesters, rice transplanters, tillers, drying machines, rice huskers, binders, harvesters, and treatment
Source: Estimated by ISEKI from statistics provided by the Japan Agricultural Machinery Manufacturers Association

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202013

Domestic Agricultural Machinery Shipments and ISEKI’s Sales Performance

ISEKI’s sales
performance

Our actual sales were showing signs of weakness, but amid the impact of COVID-19,
our figures were above those of the industry.

YoY growth rate for 9 principal machinery categories (moving annual total) *ISEKI estimates(%)

Oct. 2017 –Sep. 2018

Oct. 2018 –Sep. 2019

Oct. 2019 –Sep. 2020

Jan. – Sep.
2020

Industry(Amount ofshipment)

96%

115%

75%

76%

ISEKI

(Salesamount)

98%

105%

77%

82%

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

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202014

Trends in Agricultural Administration■Government subsidy system for business continuity
Subsidy system for adopting machinery and facilities for the recovery/development of sales channels
and business continuity/transformation while preventing the spread of COVID-19 (E.g. Vegetabletransplanters for automating planting work, which had previously been done manually)

FY2020 second supplementary budget
amount (¥20.0 billion)

Additional budget policy＋ (¥44.1 billion)■FY2021 agriculture, forestry and fisheries-related budgetary request
General Program to Support Smart Agriculture Measures (¥5.5 billion)⇒Accelerating the social implementation and practice of Smart Agriculture
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202015

Overseas Product Sales
Overseas
sales

Expected to be mostly in line with the announced forecast(JPY bn)

35.0

Sales
(forecast)

30.0
25.0

FY2019/12
Results

20.0¥28.2 billion

15.0

FY2020/12
Forecast(announced on
August 6)¥26.9 billion

10.0
5.0
0.0
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

*Based on finished products. “Parts & Others” is not included.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202016

Market Trend (North America)
North
America

・In the compact tractor market, sales have been firm since May, thanks to changes in lifestyles due to COVID-19
and sales promotions by each company. AGCO’s actual sales exceeded the market and remained strong.
・Delay in receiving engines impacted our sales in the first half, but sales will increase YoY through the launch of
new products with engines made in-house and market growth in the second half.

1. Trend in the market(1,000 units, %)Category(PTO HP)

40 HP and lower(Compact tractors)

40-100 HP(Utility tractors)

100 HP and aboveJan.-Sep. 2019

141.8

48.4

15.4

Jan.-Sep. 2020

166.3

53.6

14.7

Difference (%)

117%

111%

96%

3. Sales and orders at ISEKI
Shipments/orders (Jan. – Dec. 2020): YoY 92%
Consolidated net sales (ISEKI to AGCO)（JPY bn）

6.0¥12.7 billion

5.0

3.6

4.0

(Source: Statistics provided by AEM)

2. Situation of AGCO (OEM Partner)

3.0¥11.7 billion
4.0

3.4

[3.0]

2.9

2.8

[Forecast]

2.3

2.4

1Q

2Q

2.0

・Unit sales (Jan. – Sep. 2020)
 Compact tractors:
 Utility tractors:

1.0

YoY 129%
YoY 118%

0.0
1Q

2Q

3Q

FY2019/12
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

4Q

3Q

4Q

FY2020/12

17Market Trend (Europe)
EuropeFrom late May onward, store operations gradually resumed as the restrictions of each country were lifted and themarket for consumers has been on a recovery trend. Meanwhile, recovery in demand in the market for
professionals has been delayed in conjunction with movements to cut the local governments’ landscaping budgets.

1. Trend in the market<Landscaping market>

3. Sales and orders at ISEKI

・From mid-March to early May, demand in agricultural
machinery and the landscaping markets was sluggish as aresult of the closure of local retailers due to the lockdown.
・From late May, local retailers gradually resumed operations.
Despite the current developments toward lockdown due toanother round of infections, operations will continue, being
recognized as an essential business.

Shipments/orders (Jan. – Dec. 2020): YoY 68%

Consolidated net sales (Europe)¥10.2 billion¥9.3 billion

2. Local sales[Forecast][2.2]

・Unit sales (Jan. – Sep. 2020)
 Local distributors: YoY 85%
・Local retail sales of the sales subsidiary (ISEKI France) haverecovered to levels comparable to the previous year.
FY2019/12
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

FY2020/12

18Market Trend (ASEAN: Thailand)
ThailandThe drought from the end of last year has impacted the financial situation and agricultural
machinery demand of farmers, but rainfall from September has been generally been on a recovery
trend.
3. Initiatives of ISEKI Thailand

1. Trend in the market
・The drought from the end of last year has impacted the financial
situation and agricultural machinery demand of farmers.
Meanwhile, despite the variance by region, total rainfall has been
recovering from September and a recovery in demand isanticipated.

*ISEKI’s wholly-owned subsidiary

・Reinforced sales/services support for distributors
Focused on sales promotion measures and HR
development of distributors such as technologicalservices, by collaborating with IST

2. Situation of the local distributor “IST Farm Machinery”
・Unit sales (Jan. – Sep. 2020)

4. Sales and orders at ISEKI

 ASEAN strategy tractor: YoY 75%
・New types of sales activities were accelerated and promoted,
including utilization of online sales and the distributors holding
more small-scale exhibitions, amid self-restraints on largescale events.
Also reinforced initiatives to improve services.

Shipments/orders (Jan. – Dec. 2020) ： YoY 55%

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202019

Market Trend (ASEAN and Neighboring Regions)
ASEAN and
Neighboring
Regions・In Indonesia, there will be no government tendering in the second half due to the national budget
being diverted to COVID-19 measures.
・In Myanmar, although sales activities have been restricted due to the impact of COVID-19, local
sales have been strong.

1. Trend in the market

Consolidated net sales (Entire ASEAN)<Indonesia>
・Government tendering decreased year on year in the first
half, and there will be none in the second half.
<Myanmar>・Mechanization is being accelerated on the market, and local
sales have been strong despite COVID-19.

(JPY bn)¥1.7 billion¥0.8 billion[Forecast][0.2]

2. Our situation
 Indonesia: Decreased sales YoY due to a lower
tendering volume.
 Myanmar: Sales expansion through IST Farm Machinery

FY2019/12

FY2020/12[For Myanmar]
・Tractors
・All-purpose combine
harvesters

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202020

PT. ISEKI INDONESIA (Manufacturing Subsidiary)
PT. ISEKI
INDONESIA

Production in Jan.-Sep. fell short of the plan due to a decrease in production for ASEAN and North America,
but profits were secured due to improved productivity.
We will promote further enhancement of profitability of this subsidiary as the base station for earning abroad.
(Units, JPY bn)

Jan. – Sep. 2020

2014
Results

2015
Results

2016
Results

2017
Results

2018
Results

2019
Results

Plan

Results

Production
volume

1,100

3,900

7,300

8,400

9,700

12,60010,0007,550

Operatingincome

(0.3)

(0.4)

(0.3)

0.3

0.1

0.3

0.3

0.2

<< Trend in production volume>>

2014

2015

2016

2017

2018

2019

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202021

Market Trend (China)
Sales of ride-on rice transplanters are robust as the government is strongly promoting grain
production centered on rice to secure food, and restrictions on movement of contractors is
stimulating demand for agricultural machinery in Hubei Province.

China

1. National government subsidy(RMB bn)

2014

2015

2016

2017

2018

2019

2020

23.8

23.8

23.7

18.6

18.6

18.0

18.0

3. Situation of Dongfeng Iseki(Jan. – Sep. 2020,

 Ride-on rice transplanters:
 Tractors:
 Ride-on control machines:

YoY 308%
YoY 112%
YoY large increase

Net sales of Dongfeng Iseki (local currency based)

2. Trends in the agricultural machinery industry(%)

By product type (YoY change, units)

Rice transplanters (ride-on)

Jan. – Sep.
2018

Jan. – Sep.
2019

Jan. – Sep.
2020

81%

95%

137%

Combine harvesters (allpurpose, auto-threshing)74%

Tractors(medium- to large-size)

77%

84%
111%

* Source: China Association of Agricultural Machinery Manufacturers

number of units sold)

110%
133%

(RMB million)

190

200
150
100

104
70

71
44

50

46

40

0
1Q

2Q

3Q

FY2019/12
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

4Q

1Q

2Q

3Q

FY2020/12

22Market Trend (Others)
・South Korea: No signs of impact of COVID-19 were seen on the rice transplanter market in the spring season but there was a slight decrease YoY

East Asia

due to the effects of larger machinery and farmland consolidation. Meanwhile, the demand for larger, high-performance, and Japanese-madeagricultural machinery is growing.
・Taiwan: Large YoY increase due to a subsidy system for purchases of large agricultural machinery.

2. Situation of ISEKI

1. Trend in the market<South Korea>
Despite the absence of the impact of COVID-19, there was aslight decrease YoY due to the effects of larger machinery andfarmland consolidation. Meanwhile, the demand for larger, highperformance, and Japanese-made agricultural machinery is
growing.
<Taiwan>Demand grew for both tractors and combine harvesters due tothe subsidy system for the purchases of large agricultural
machinery, implemented in 2020 as well as in 2019.

 South Korea:
Sales of our brand’s flagship products, TJ series
tractors and HJ series combine harvesters, via the sales
channel of the TYM Group, a major South Korean
agricultural machinery manufacturer, continued from theprevious quarter.
・Shipments/orders (Jan. – Sep. 2020)
YoY 87%
Rice transplanters:
YoY 162%
Combine harvesters:
YoY 200%
Tractors: Taiwan:
Sales of tractors, combine harvesters, and ricetransplanters through local distributors
・Shipments/orders (Jan. – Sep. 2020)
YoY 268%
Tractors:
YoY 187%
Combine harvesters:

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202023

3. Performance Forecast for the
Fiscal Year Ending
December 31, 2020

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

Performance Forecast for the Fiscal Year Ending December 31, 2020
Performance
Forecast

・Although the impact of COVID-19 on the consolidated financial results of the Company has been slowly diminishing in the 3Q ofthe fiscal year ending December 31, 2020, Japan and other countries around the world are seeing the emergence of anotherround of infections and their economic impact continues to be uncertain.
⇒The consolidated financial results forecast, which was announced on August 6, 2020, will remain unchanged and the dividend
forecast will also continue to be undetermined.

1. Consolidated Full-year Performance Forecast
FY ended Dec.
2019

(JPY bn)

ActualNet Sales

FY endingDec. 2020*1

2. Dividend Forecast
YoY Change

FY ended Dec.
2018
ActualFY ended Dec.
2019
ActualFY ending Dec.
2020
*2 Forecast

Year-end
dividend30

30

Undetermined

Forecast

149.9

144.5

(5.4)

(Domestic)

117.7

114.5

(3.2)

(Overseas)

32.2

30.0

(2.2)

Operating Income

2.7

1.1

(1.6)

Ordinary Income

1.1

0.2

(0.9)

Profit (Loss) Attributable to
Owners of Parent

0.7

0.2

(0.5)

US$

109

107

(2)

Euro

122

120

(2)

Foreignexchange rates(yen)(JPY yen)*2: Forecast announced on May 15, 2020.

*1: Forecast announced on August 6, 2020

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202025

4. Topics

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

Strengthening Responsiveness to Agriculture in Japan
Reorganizing wide-area sales companies
Until 2018
10 wide-area companies
Iseki-Hokkaido Co.,Ltd.

Iseki-Tokai Co., Ltd.

Iseki-Tohoku Co., Ltd.

Iseki-Kansai Co., Ltd.

Iseki-Shinetsu Co., Ltd.

Iseki-Chugoku Co., Ltd.

Iseki-Kanto Co., Ltd.

Iseki-Shikoku Co., Ltd.

Iseki-Hokuriku Co., Ltd.

Iseki-Kyushu Co., Ltd.

January 2021
6 wide-area companies

2019 to 2020
7 wide-area companies

ISEKI Kansai Chubu Co., Ltd.,
Iseki-Hokuriku Co., Ltd.

Iseki-Kanto Co., Ltd., Iseki-Shinetsu Co., Ltd.

ISEKI Kansai Chubu Co., Ltd.

ISEKI Kanto Koshinetsu Co., Ltd.

Iseki-Hokkaido
Co., Ltd.

Iseki-Kansai Co., Ltd., Iseki-Tokai Co., Ltd.
Iseki-Tohoku Co.,Ltd.

ISEKI Kansai Chubu Co., Ltd.
Iseki-Chugoku Co., Ltd., Iseki-Shikoku Co., Ltd.

ISEKI Chu Shikoku Co., Ltd.

ISEKI Chu Shikoku
Co., Ltd.
Iseki-Kyushu
Co., Ltd.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2020

ISEKI Kanto Koshinetsu
Co., Ltd.
ISEKI Kansai Chubu
Co., Ltd.

27

Agricultural Innovation
Agri Yamazaki Smart Agriculture Testing Consortium✓An experimental project for environmentally-friendly smart agriculture in the production system forhigh-quality rice for exports through the collaboration of industry, government, and academia andthe implementation of cutting-edge technology such as robots and ICT technology.
※(Members) Graduate School of Agricultural and Life Sciences, The University of Tokyo; HyperAgri, Inc.; ISEKI Kanto
Koshinetsu Co., Ltd.; Ibaraki Agricultural Center; Agriculture and Forestry Office of the Ibaraki Prefectural
Government Western District; Tokyo University of Agriculture; and Agri Yamazaki, Ltd.

Local workshop held in Bando City, Ibaraki Prefecture(September 25, 2020)

Improving work efficiency through the cooperative work of ISEKI’s
yield combine harvester and robot tractor

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202028

Announcement of Product Launches Products with in-house made engines compliant with emissions
regulations
 Smart agricultural machinery utilizing robot, ICT and othertechnology
 Low-priced, simple-spec tractors (Advance release in October 2020)※

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

Wednesday, December 9, 2020, 15:00 (tentative)

Release theme“Environmentally-friendly ISEKI engines”“Smart agricultural machinery/ICT contributing to sustainability”

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 Fiscal Year Ending December 31, 202029

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 and uncertainties. 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 notliable for any losses incurred by investment decision made utilizing the business forecast or targets
given in this document.

ISEKI group is a promotional partner of FOOD ACTION NIPPON

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 202030