Financial Results for the First Quarter
Fiscal Year Ending December 31, 2024

Investor Relations Presentation Materials

ISEKI & CO., LTD.
May 15, 2024

INDEX

OutlineofFinancial
Results
for
the
First
Quarter
１．
Fiscal Year Ending December 31, 2024
２． Domestic and Overseas Markets
３． Performance Forecast for the Fiscal Year Ending
December 31, 2024
４． Progress of Project Z & Topics
５． Appendix
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 20242

1. Outline of Financial Results for the First Quarter
Fiscal Year Ending December 31, 2024

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

3

Key Points<First Quarter Financial Results>

Growth in overseas sales, operating income surplus
Overseas: Continued growth in Europe

Trends in 1Q Net Sales(JPY bn, %)31.9

40.4 38.7 45.8 43.9
Domestic

Net sales reaching a new record high
41.4% 38.4% 44.5%

Domestic: Sales mainly of agricultural machinery decreased

21.6% 30.2%

Earnings:

FY2020 FY2021 FY2022 FY2023 FY2024
1Q
1Q
1Q
1Q
1Q

Secured profit mainly due to the effects of price revisions inJapan and overseas, continued growth in Europe, and the effectof FOREX fluctuations, despite a decrease in gross profit due toa drop in domestic sales and production

Overseas

Trends in 1Q Operating Income(JPY bn, %)

1.6

1.4

0.7

<Full-year Forecast>(0.2)

No revision to the initial forecast(1.1)
FY2020 FY2021 FY2022 FY2023 FY2024
1Q
1Q
1Q
1Q
1Q

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

4

Outline of Consolidated Business Performance(JPY bn, %)FY2020/12

FY2021/12

FY2022/12

FY2023/12

FY2024/12

1Q Actual

1Q Actual

1Q Actual

1Q Actual

1Q Actual

YoY
ChangeNet Sales

31.9

40.4

38.7

45.8

43.9

(1.9)

(Domestic)

25.0

28.2

22.7

28.2

24.3

(3.8)

(Overseas)

6.8

12.2

16.0

17.6

19.5

1.9

Gross Profit

9.0

11.7

10.8

13.7

13.0

(0.7)

Gross Profit Margin

28.2％

29.1％

27.9％

30.0％

29.7％

(0.3)％

Operating Income

(1.1)

1.4

(0.2)

1.6

0.7

(0.9)

Operating Margin(3.5)％

3.7％(0.6)％

3.7％

1.7％(2.0)％

Ordinary Income

(1.2)

2.1

0.0

1.3

0.9

(0.3)

Profit (Loss) Attributable to
Owners of Parent

(0.4)

1.9

0.2

0.7

0.4

(0.2)

(January 1, 2024
to March 31, 2024)

Average
Exchange
Rate (JPY)

US$

109.6

104.4

114.8

132.3

146.9

14.6

Euro

120.8

126.8

130.1

141.9

159.9

18.0

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 20245

Domestic Sales
YoY
JPY3.8 billion
decrease

Sales mainly of agricultural machinery decreased
FY2020/12

FY2021/12

FY2022/12

FY2023/12

FY2024/12

1Q Actual

1Q Actual

1Q Actual

1Q Actual

1Q Actual

5.7

6.6

5.8

7.0

5.8

(1.2)

1.7

2.5

1.6

2.1

1.6

(0.4)

2.0

2.4

2.0

3.9

2.6

(1.2)

Subtotal

9.5

11.6

9.6

13.1

10.1

(2.9)

Farming
Implements

4.1

5.9

4.0

4.7

4.4

(0.2)

Spare Parts

2.9

3.0

2.9

3.3

3.2

(0.1)

Repair Fees

1.1

1.1

1.1

1.1

1.1

0.0

Subtotal

8.2

10.2

8.1

9.2

8.8

(0.3)

Total

17.8

21.8

17.7

22.3

19.0

(3.3)

Construction of Facilities

2.6

1.4

0.7

1.2

0.7

(0.5)

Others

4.6

5.0

4.2

4.6

4.5

0.0

25.0

28.2

22.7

28.2

24.3

(3.8)

Agricultural Machinery

Agricultural Machinery Related(JPY bn)
Cultivating &Mowing
Machinery
Planting
Machinery
Harvesting &Processing
Machinery

Total

YoY Change

Main factors of YoY changes
Agricultural machinery:
Despite a sales increase in the same periodof the previous fiscal year due to the lastminute demand associated with pricerevisions in April, sales decreased in the firstquarter this fiscal year, partly because thetiming of revisions was pushed forward onemonth➢ ISEKI’s revisions of agricultural
machinery prices
TimingPrice increase

Jun. 2022

About 3%Apr. 2023

About 5%Mar. 2024

About 3%Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

6

Overseas Sales
YoY
JPY1.9 billion
increase

Continued growth in Europe
Net sales reaching a new record highFY2020/12

FY2021/12

FY2022/12

FY2023/12

FY2024/12(JPY bn)

YoY Change

Main factors of YoY changes

1Q Actual

1Q Actual

1Q Actual

1Q Actual

1Q ActualNorth
America

2.3

3.9

4.6

3.8

3.3

(0.5)

North
America:

Adjustment phase continued in thecompact tractor market, which led todecreased sales

Europe

2.4

5.9

7.8

11.0

14.0

3.0

Europe:Expansion of product procurement
and capturing of pre-season demand
led to sales growth

Asia

2.0

2.2

3.5

2.1

1.9

(0.2)

Asia:

Others

0.0

0.0

0.1

0.5

0.2

(0.2)

Despite a recovery after a pullback indemand due to emission standards in
China, weakening demand in ASEAN
and Korea led to a decline in orders
and a decrease in sales

Total sales

6.8

12.2

16.0

17.6

19.5

1.9

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

7

Main Factors of YoY Changes in Operating Income
YoY
JPY0.9 billion
decrease

Secured profit mainly due to the effect of price revisions in Japan and overseas,
continued growth in Europe, and effect of FOREX fluctuations, despite a decrease ingross profit due to a drop in domestic sales and production
FY2020/12

FY2021/12

FY2022/12

FY2023/12

FY2024/12

1Q Actual

1Q Actual

1Q Actual

1Q Actual

1Q Actual[Breakdown of YoY Change]
YoY Change(JPY bn, %)Decrease in gross profit: ¥0.7 billion

Net Sales

31.9

40.4

38.7

45.8

43.9

(1.9)
(1.5)

Gross Profit

9.0

11.7

10.8

13.7

13.0

(0.7)

Gross Profit
Margin

28.2%

29.1%

27.9%

30.0%

29.7%

(0.3)%

10.1

10.3

11.0

12.0

12.3

0.2

SG&A Expenses
Personnel
Expenses

6.0

6.0

6.4

6.7

6.9

0.2

Other Expenses

4.0

4.2

4.6

5.3

5.3

0.0

0.9

(0.1)

0.4

(0.4)

(0.2)

1.6
0.7
FY2023
1Q

Drop indomestic
sales andproduction

Effect ofpricerevisionsin Japanandoverseas

Impactofsoaringrawmaterial
prices

Effect of
FOREX
fluctuations(grossprofit)Other(grossprofit)Increased
SG&A
expenses

FY2024
1Q[Effect of FOREX Fluctuations (JPY bn)]
Operating Income
OperatingMargin(1.1)(3.5)%

1.4
3.7%

(0.2)
(0.6)%

1.6
3.7%

0.7
1.7%

(0.9)
(2.0)%Net Sales

Cost of
Sales

SG&A
Expenses

Operating
Income

1.7

(1.3)

(0.2)

0.2

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 20248

Ordinary Income & Profit
Ordinary income
YoY
JPY0.3 billion
decrease

Profit decreased to a lesser extent than operating income did mainly due to improved
balance of financial income and increased foreign exchange gains
FY2020/12

FY2021/12

FY2022/12

FY2023/12

FY2024/12

1Q Actual

1Q Actual

1Q Actual

1Q Actual

1Q Actual

Operating Income

(1.1)

1.4

(0.2)

1.6

0.7

(0.9)

Balance of Financial
IncomeOther Non-operating
Income

(0.1)

(0.1)

(0.1)

(0.5)

(0.3)

0.2

0.0

0.8

0.4

0.1

0.5

0.3

Ordinary Income

(1.2)

2.1

0.0

1.3

0.9

(0.3)

Extraordinary Income

0.1

0.0

0.0

0.0

0.0

0.0

Extraordinary Losses

0.0

0.0

0.0

0.0

0.0

0.0

Income Before Income
Taxes
Income Taxes Deferred

(1.1)

2.0

0.0

1.2

0.8

(0.3)

0.7

(0.1)

0.2

(0.5)

(0.4)

0.1

Profit (loss) Attributableto Owners of Parent

(0.4)

1.9

0.2

0.7

0.4

(0.2)

(JPY bn)

YoY Change

Breakdown of YoY change in other nonoperating Income(JPY bn)
Foreign exchange gains

0.1

Share of loss of entities accounted
for using equity method

0.1

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

9Balance SheetYoY change

Inventories increased at a restrained level YoY in 1Q
As of Mar.
31, 2023

As of Mar.
31, 2024

YoY
ChangeAs of Mar.
31, 2023

As of Mar.
31, 2024

YoY
ChangeCash & Deposits

9.2

13.0

3.8

Accounts Payable - Trade

45.1

35.9

(9.2)

Accounts Receivable - Trade

38.0

35.0

(3.0)

Interest-bearing Liabilities

80.3

86.7

6.3

Inventories

68.4

73.7

5.3

(Loans Payable)

73.3

79.4

6.0

Other Current Assets

5.9

4.1

(1.8)

Other Liabilities

20.8

30.5

9.7

Total Current Assets

121.6

126.0

4.3

Total Liabilities

146.3

153.2

6.8

Property, Plant and Equipment

83.8

84.2

0.3

Net Assets

Intangible Assets

2.4

2.4

0.0

72.7

75.0

2.3

Investments and Other Assets

11.1

15.6

4.4

(Retained Earnings)

21.1

20.2

(0.9)

Total Non-current Assets

97.4

102.2

4.8

Total Assets

219.1

228.3

9.2

219.1

228.3

9.2

(JPY bn)

Total Liabilities and Net Assets[Change in inventories from beginning of fiscal year](JPY bn)
Change from beginning of fiscal year

FY2020

FY2021

FY2022

FY2023

FY2024Up 5.2Up 1.6

Up 4.8Up 3.1

Up 0.9Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

10

2. Domestic and Overseas Markets

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

11

Domestic Agricultural Machinery Market Trends
Domestic
Agricultural
Machinery
DemandPrice revisions carried out by respective companies in 2023 prompted the last-minutedemand, causing demand to concentrate in January to March 2023 and then be lower incomparison in January to March 2024. From then on, demand is expected to remainlevel, partly due to the trend of recovery in rice prices.

■ Agricultural machinery demand (shipments in the industry)
Average sales price ofrice/60kg* (right axis)(9 principal machinery, moving annual total)
14,68012,930(JPY bn)300

11,020Consumption tax
increase (Oct.)280

12,49011,350(JPY)

16,00014,00012,00010,000Acceptance of applications for government
subsidies for business continuity
1st (Oct.)

260
240

2nd (Feb.)

220
200
Mar.

Jun. Sep. Dec. Mar.
2019

Jun. Sep. Dec. Mar.
2020

Jun. Sep. Dec. Mar.
2021

Jun. Sep. Dec. Mar.
2022

Jun. Sep. Dec. Mar.
2023

Jun. Sep. Dec.
2024

*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* Average sales price of rice: From Agricultural Retail Price Survey by the Ministry of Agriculture, Forestry and Fisheries
Approximate figures for non-glutinous rice (grade 1 brand names) in Mar. 2023 and 2024

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

12

Trends in Agricultural Administration
TopicsOutline

Revision of Basic Act on Food,
Agriculture and Rural Areas*Refer to the next page for details

・The revision is to clearly define challenges, including food security, the decreasing
number of farmers, establishing a food system in harmony with the environment,
and improving productivity for sustainable development of agriculture, and toclarify the path to overcoming those challenges.
・The revision will be carried out from the perspectives of dramaticallystrengthening food security, shifting to production in harmony with theenvironment, and sustainability/development of the production level underdecreasing population and sustainability of regional communities, and it isbeing deliberated in the ordinary Diet session in 2024.

Strategy for Sustainable Food
Systems, MIDORI・ In 2022, the Act on Promotion of Business Activities to Reduce
Environmental Burden (Strategy for Sustainable Food Systems, MIDORI), forthe purpose of establishing a food system in harmony with the environment,
entered into force.

New laws aimed at spreading smart
agriculture

・ A legal system for integrated promotion of (i) R&D and implementation ofsmart agriculture technology, (ii) application of smart agriculture
technology, and review of production/distribution/sales methods compatible
with the technology is being considered. ⇒Boosted by tax, finance, etc.

*Prepared by ISEKI from material provided by Headquarters for a Stable Food Supply
and Strengthening the Agricultural, Forestry and Fisheries Infrastructure
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

13

Trends in Agricultural Administration■Direction of revision of Basic Act on Food, Agriculture and Rural Areas
Outline (excerpt)

Direction(i) Position food security as a pillar

Dramatically strengthening foodsecurity(ii) New position on ensuring stable imports by maintaining thefundamental approach to a stable food supply(iii) Position on the policy implications of exporting agricultural produce(iv) Promote cooperation among relevant parties from production to
consumption (Positioning of a new concept called the “food system”)

Shifting to production in harmony
with the environment
Sustainability/development of the
production level under decreasing
population and sustainability ofregional communities*Prepared by ISEKI from material provided by Headquarters for a Stable Food Supply
and Strengthening the Agricultural, Forestry and Fisheries Infrastructure(i) Position establishment of a food system in harmony with theenvironment as a pillar(i) Fostering and securing farmers to ensure the production base, andclarify the roles of other diverse human resources for agriculture(ii) New position of strengthening the management base of agricultural
corporations(iii) Clarify the direction to aim at for future agricultural production

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

14

Domestic Market Trends (Status of ISEKI)
January to March
1. Sales by Domestic Distributors
Amount of agricultural machinery products (Jan. to Mar. 2024）➢ Sales: YoY 78%, From year before last 109%

2. Sales and Service Activities
・Sales of new BF series tractors were strong
・Prices were revised (Mar.)➢ Revision of ISEKI’s agricultural machinery prices
TimingPrice increase

Jun. 2022

About 3％

Arp. 2023

About 5％Mar. 2024

About 3％Future Expansion, etc.
• Strengthen promotion of large-sized machinery with new products centered on
the BF series mid-sized tractor in the high-volume segment and by recoveringfrom the production delay• Target customers in the large-sized, advanced, environmentally friendly, anddry field markets, which are growing→Strengthen large-scale promotion of the “All Japan series” of large-sizedmachinery together with imported farming implements, etc.
→Strengthen promotion of environmental conservation together with smart
agriculture
Expand sales and customers with environmentally friendly smart agriculture
centered on variable fertilizer tractors & rice transplanters and weed-control
Aigamo-Robo.
In addition, regarding smart agricultural machinery, new tractors & ricetransplanters will be released in spring and a further sales increase will be
aimed at by enhancing demonstrations.

BF series mid-sized tractor
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

Low-price Aigamo-Robo15

Overseas Market Trends (North America, Europe)
EuropeNorth America
1. Market trends

1. Compact tractor market<Market trends>(1,000 units)

216 235

250

91

95

96

179
156 170145
124 132
104 114

2009

2010

2011

2012

200
150

192

172

・Demand may weaken due to concerns about an economic
recession caused by inflation throughout Europe and the end of
inventory shortages across the whole industry

100
50
2013

2014

2015

・Jan.-Mar. 2024: YoY 82％

2016

2017

2018

2019

2020

2021

2022

2023

(Source: Statistics provided by AEM)

2. Situation of AGCO (OEM partner)

2. Local sales➢ Unit sales (Jan.-Mar. 2024)
・ Local distributors: YoY 136%
Continued strong sales of both tractors and ride-on mowers➢ Unit sales (Jan.-Mar. 2024) YoY 86%
AGCO’s sales decreased YoY as the market entered anadjustment phase in the second half of 2022

3. Status at ISEKI• Forecasting sales expansion due to AGCO’s proactive sales
promotion measures and the effect of new products scheduled
to be launched in the second half of the fiscal year

3. Status at ISEKI
・Increased shipments due to strong pre-season demand・Strengthened sales and services system with ISEKI France and
ISEKI Germany at the core, expanded the product lineup, andpromoted sales
・Response aimed at the full-scale deployment of electric mowers

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

16

Market Trends (Asia)
East Asia

ASEAN
1. Market trends

1. Market trends<Thailand> Slow sales of machinery for rice agriculture. Concerns about
the outlook, including decreased production caused by water
shortages, despite strong sales of machinery for dry field
agriculture.
<Indonesia> Announcement of budget for government tenders at the
beginning of this year (YoY -100 units)

2. Local sales➢<Korea> The rice agriculture market contracted mainly due to soaring raw
material prices and stagnant rice prices. Sales of machinery for dry
fields increased due to government support for crop conversion<China> Subsidies remain high as food security policies continue. Although arecovery from the reactionary decline following emission standards wasachieved to a certain extent, a full recovery is expected to take sometime, partly due to a delay in subsidy payments.

2. Local sales

Unit sales (Jan.-Mar. 2024)
Thailand IST (Tractor): YoY 35%➢

3. Status at ISEKI

Unit sales (Jan.-Mar. 2024)
・China (Dongfeng ISEKI): Ride-on rice transplanters YoY 222%,
tractors and combine harvesters YoY 158%

<Thailand>・Strengthen promotion by developing new local distributors, enhancing
corporate sales, and launching new products (small-sized construction
machinery and ride-on mowers) in order to expand the customer base.

3. Status at ISEKI<Indonesia>
・Strengthen promotion for government tenders and regular sales (ricecultivation, palm, etc.)<China>・Shipments of both products and parts increased, partly in reaction to the sales
decline in 1Q of the previous fiscal year

<Korea>・Aim at an early elimination of local inventories and a recovery of orders for
ISEKI by providing sales support to local distributors

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

17

3. Performance Forecast for the Fiscal YearEnding December 31, 2024

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 202418

Forecast of Consolidated Financial Results for
the Fiscal Year Ending December 31, 2024
Consolidated
Financial Results
Forecasts

No revision has been made to the forecast as 1Q results were within initialexpectations(単位：億円)(JPY
bn, %)(単位：億円、％)

FY2019/12 FY2020/12 FY2021/12

FY2022/12

FY2023/12

FY2024/12※

YoY
ChangeActualActualActualActual%Actual%Forecast

%

149.8

149.3

158.1

166.6

100.0

169.9

100.0

170.0

100.0

0.0

(Domestic)

117.7

115.9

117.3

112.6

67.6

113.0

66.5

115.0

67.6

1.9

(Overseas)

32.1

33.3

40.7

53.9

32.4

56.8

33.5

55.0

32.4

(1.8)

Operating Income

2.7

2.0

4.1

3.5

2.1

2.2

1.3

2.0

1.2

(0.2)

Ordinary Income

1.1

1.7

4.6

3.7

2.3

2.0

1.2

1.0

0.6

(1.0)

Profit (loss) Attributableto Owners of Parent

0.7

(5.6)

3.1

4.1

2.5

0.0

0.0

0.4

0.2

0.3

US$

109.3

107.0

109.0

131.3

139.4

140.0

0.6

Euro

121.6

121.5

129.8

136.9

148.6

150.0

1.4

30

0

30

30

30

30

-

Net Sales

Average
Exchange
Rate (JPY)

Year-end Dividend (JPY)*Forecast for FY2024/12: The forecast announced on February 14, 2024
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

19

4. Progress of Project Z & Topics

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

20

Progress of Project Z
Fundamental structural reforms<Themes forming the axis>

Optimize
production
Optimizedevelopment
Deependomestic
sales

Growth strategy<Status of progress>

・Optimal allocation of production models
and sites
・Future-oriented capital investment
・Environmental response and increased
efficiency■Consolidated management of
Matsuyama and Kumamoto Factories
July 1, 2024
■Product assembly plantreorganization policy・Concentration of development resources
・Greater efficiency through common design■Aiming at 30% reduction of in-housemachinery models✓ Moved to implementation phase

・Consolidation of management resources
through integration
・Re-allocation of resources to growthmarkets
・Logistics improvement and inventory
reduction・Overseas Develop region-specificstrategies
・Domestic Large-sized, advanced,
environmentally friendly, dry field products

Additional Project Z measures will be announced on a case-bycase basis.

■Integration of sales companies over awide area
Advancing toward January 2025
✓ Sales division reorganization policy■Large-sized, advanced,
environmentally friendly, dry field
products“Robot Tractor TJW” shipped in May
2024

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

21

Progress of Project Z[Fundamental structural reforms] Optimize production■ Consolidated management of Matsuyama and Kumamoto Factories
July 1, 2024
‣New company name: ISEKI M&D Co., Ltd.
‣Purpose: Consolidation and effective utilization of management
resources

・ Reduce duplicated work and costs, improve management efficiency
・ Increase synergy effects

Trade name

ISEKI-Matsuyama MFG. Co., Ltd.

ISEKI-Kumamoto MFG. Co., Ltd.

ISEKI M&D Co., Ltd.*

Location

700 Umaki-cho, Matsuyama-shi,
Ehime

1400 Yasunaga, Mashiki-machi,
Kamimashiki-gun, Kumamoto

700 Umaki-cho, Matsuyama-shi, Ehime

Title and name ofrepresentative

President and Representative Director
Ruiji Horio

Representative Director
Masahiro Sakai

Representative Director
Masahiro Sakai

Capital90 million JPY

80 million JPY

90 million JPY

Shareholder andshareholding ratio

ISEKI & CO., LTD. 100％

ISEKI & CO., LTD. 100％

ISEKI & CO., LTD. 100％

Main manufactured products

Tractors, engines, etc.

Combine harvesters, vegetable
harvesters, etc.

Tractors, combine harvesters, vegetable
harvesters, engines, etc.
*M&D: Manufacturing & Development

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

22

Progress of Project Z■Domestic ➤Concentrate on large-sized, advanced, environmentally friendly, dry field machinery

Growthstrategy

Up to 2025
Development
IP

Advanced
technology
Environmental
response

2027

Expand to automation level 1 & 2

Automation level 3

Expand to variable fertilizer application

Electric products

Human monitored type

Robot tractor
Expand products in the large-sized JAPAN series➤Largest in Japan* 123 HP robot tractor➤Lineup includes specifications suitable for dry fieldmanagement operations*As of April 2024, based on research by ISEKI

Automation level■ Commercialization of smart agricultural Machinery (Domestic)
Smart technology
Level 3 Remotely monitored typeLevel 2 Human monitored typeLevel 1 Human-onboard type

Commercialization status
Implemented demonstration
Robot tractor added this time to 3 series
Robot rice transplanter
Straight-travel assistance tractors
Straight-travel and turning assistance rice transplanters
Straight-travel assistance combine harvesters
Automatic steering equipment

Smart technology

Sensing

Automation

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

Commercialization status
Variable fertilizer rice transplanters
Variable fertilizer compatible tractors
Yield monitoring combine harvesters
High-clearance multi-purpose vehicles (smart
fertilizer addition)
Aigamo-Robo23

(Topic) Capital and Business Alliance with WaterCell Inc.
Investment under the investment framework for start-up companies, etc. (2nd case)■Formed a capital and business alliance with WaterCell Inc. February 20, 2024
‣Purpose: Jointly develop agricultural machinery-related systems and strengthen cooperation
・ISEKI and WaterCell began collaboration in 2018 to promote more efficient agricultural management using
agricultural ICT through a data link between ISEKI Agri Support, an agricultural machinery data management
system, and agri-note, a farm management support tool.
・Contribute to solving agricultural challenges through further evolution of collaboration and strengthening theinformation platform function of agri-note.
(Agricultural machinery information
management/analysis tools)
Farm management support tool
Unit

TabletImage from
Agri Support

Work management
supportMachine maintenancesupportFertilizer/chemical spraymanagement

Machine information
management
Alert information
management

Field work management
Record of work processagri-note

Making management simple and convenient

Starting, seeing, and communicating agricultural records with agri-note
agri-note is a farm management support tool that you can use on your smart phone, tablet,or computer. It enables you to make an agriculture map using aerial photos and record daily
agriculture work schedules and demonstrations. Therefore, it makes it easy to look back overagriculture activities by utilizing data and to share information with workers, outsourcees,
agriculture associations, buyers, etc.

Alert issuance information

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

(Topic) ESG■DBJ Environmentally-rated Loan Program — Awarded the highest rating for the 18th
consecutive timeAwarded the highest rating—“Excellent advanced environmental initiatives” from
Development Bank of Japan Inc. (DBJ)■Continued to be certified as an ” Certified as a “health & productivity management outstandingorganization” (large enterprise category)** The Certified Health & Productivity Management Outstanding Organizations
Recognition Program
It is a program to reward outstanding large enterprises and SMEs that are implementing health andproductivity management based on initiatives to tackle health issues faced by regions and health promotion
initiatives led by Nippon Kenko Kaigi.

■Stakeholder engagement: Enhancing dialogue
・Shareholders: General shareholders meeting (Mar. 28),
Financial results briefing (Feb. 20)
・Suppliers: IR information meeting for vendors(Mar.: purchase partners)

President’s explanation of "Project Z"
measures and Q&A session

・Employees: Employee communication (Mar. and Apr.)
・Discussions were held by each department to incorporate "Project Z" measures into the work of each individual.
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

25

5. Appendix

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

26

(Reference) Trends in Consolidated Financial
Results (Quarterly)（Operating income: JPY bn)(Net sales: JPY bn)

Overseas net sales

60.0

50.0

Domestic net sales

47.9

46.1
40.2 39.3

40.0

37.7

3.2

40.4

36.7

2.3

31.9

Operating income

41.2

43.9
40.5

3.0

36.9

34.7

2.0

1.8

30.0

4.0

45.8 46.5

2.7 38.6

38.7

5.0

1.6

1.4

1.0

1.1

0.8

0.5

20.0

1.0

0.7

0.3

0.0

(0.2)
10.0

(1.0)

(1.1)

(1.3)

(1.6)

0.0
1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

-1.0
-2.0

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

4Q

1Q

2Q

3Q

4Q

FY202427

Company Outline
・Company name

ISEKI＆CO., LTD.

・FoundedAugust 1926

・Location of head office

700 Umaki-cho, Matsuyama-shi, Ehime

・Capital

23,344 million yen

・Net sales

169,916 million yen (FY2023)

・Number of employees

5,457 (consolidated)

・Principle business

Manufacture and sale of agricultural machinery and garden tractors, agricultural facilities, and sale ofagriculture-related products

・Group20 consolidated subsidiaries, 1 entity accounted for using equity method

・Factories

5 sites in Japan, 3 sites overseas (1 in Indonesia, 2 in China [joint management])

・Sales network

Domestic: 11 sales subsidiaries, etc.
Overseas: Sales through ISEKI Europe, ISEKI France, ISEKI Germany (Europe),
OEM supply to AGCO (North America), Dongfeng ISEKI Agricultural Machinery Co., Ltd. (China),
IST Farm Machinery (Thailand), and other local distributors

・Exchange listing

Prime Market on the Tokyo Stock Exchange

・Securities code

6310

・Total number of shares issued

22,872,034 shares (excluding 112,959 shares of treasury stock)・Number of shares per unit

100 shares(As of December. 31, 2023)
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

28

Trends in Consolidated Financial Results(Net sales: JPY bn)

Overseas sales

Domestic sales（Operating income: JPY bn)

Operating income

200.0

15.0

180.0
160.0

169.1
149.3

147.8

157.4

155.6

145.2

145.2

153.0

158.3

166.6
155.9

149.8

169.9

13.0

158.1
149.3

11.0

140.0

9.0
7.3

120.0

7.0
100.0

5.1

4.5

80.0

4.2

4.1

3.9

2.8

3.1

2.4

2.7

2.2

2.0

60.0

5.0

3.5

0.4

40.0

1.0

(0.5)

20.0
18.0

19.1

21.3

22.6

26.1

25.4

22.7

3.0

32.0

35.2

33.1

33.3

32.1

40.7

53.9

56.8

0.0

-1.0
-3.0

Mar.
2010

Mar.
2011

Mar.
2012

Mar.
2013

Mar.
2014

Mar.
2015

Dec.*
2015

Dec.
2016

Dec.
2017

Dec.
2018

Dec.
2019

Dec.
2020

Dec.
2021

Dec.
2022

Dec.
2023

* FY2015 is a nine-month period due to the change of the fiscal year end.
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

29

Outline of Products and Services
Principle sales regions
Category

Principle products and services
Japan

Asia

EuropeNorth
America

Cultivatingmachinery

Tractors, ride-on mowers,
tillers, multipurpose vehicles,
high-clearance multipurpose
vehicles, etc.

〇

〇

〇

〇

Planting
machinery

Rice transplanters, vegetable transplanters, etc.

〇

〇

－

－

Harvesting andprocessing
machinery

Combine harvesters, binders, vegetable
harvesting machinery, rice hullers, rice graders,measuring and sorting machinery, etc.

〇

〇

－

－

Revenue from farming
implements, spareparts, and repairs

Products of domestic and overseas
farming implement makers, etc.
(Partially developed and produced by the Iseki
Group)
Spare parts, repair and maintenance, etc.

〇

Some

Some

Mainlyparts

Other agriculturerelated

Facility construction (agricultural facilities, etc.),
agricultural materials (fertilizers, etc.), coin-operated ricecleaning business, rice cooking business, other purchased
products (Europe: small-sized mowers, etc.), etc.

〇

Some

〇

－

Products

Products developed and produced mainly by the ISEKI Group

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 202430

Breakdown of Net Sales by ProductBreakdown of net sales in FY2023
25.4 bn JPY(22％)
Other agricultural-related business（rice cleaning business, facility
construction, etc.)
33.3 bn JPY（20％）

Domestic
113.0 bn JPY

Tractors
Cultivatingmachinery
61.4 bn JPY (36％)

Coin-operated
rice cleaner

Consolidated
169.9 bn JPY
Parts, farming implements,
repairs
48.9 bn JPY(29％)

Farming implements

22.0 bn JPY(20％)

7.2 bn JPY(6％)

15.7 bn JPY(14％)
42.5 bn JPY(38％)

Ride-on mowers

Planting machinery
9.0 bn JPY
Harvesting/(5％)
processing
machinery17.0 bn JPY(10％)

7.8 bn JPY(14％)
6.3 bn JPY(11％)

Vegetable transplanters

1.3 bn JPY(2％)

Overseas56.8 bn JPY
39.4 bn JPY(70％)

Combine harvesters

Rice hullers

Rice transplanters

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 202431

Breakdown of Net Sales by Overseas Region
Breakdown of net sales in FY2023
Other
1.1 bn JPY
(2％)
Korea
Combineharvesters

Asia
8.1 bn JPY(14％)

ASEAN Tractors
North America
14.2 bn JPY(25％)

Overseas56.8 bn JPY

Europe Ride-on mowers

Europe33.2 bn JPY(59％)

Europe Ride-on mowers

North America Tractors(OEM supply to AGCO)

Europe Tractors (landscape improvement)
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

32

Principle Domestic Business andManufacture Locations*As of April 2024

Tsukubamirai Office◼ Dream Agricultural Research Institute◼ ISEKI Global Training Center

ISEKI-Niigata MFG. Co., Ltd.
ISEKI-Kumamoto MFG. Co., Ltd.

◼ Technical Support Department

Capital 90 million JPY

Capital 80 million JPYTokyo Headquarters
Head Office, ISEKI & CO., LTD.
Development & Production Division(Engineering Department)

ISEKI-Matsuyama MFG. Co., Ltd.
Capital 90 million JPY◼ ISEKI Technical Training Center

ISEKI-Shigenobu MFG. Co., Ltd.
ISEKI-Minamiyoshida MFG. Co., Ltd. (non-consolidated)
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

33

Domestic Sales Network
11 sales subsidiaries*Underlined are ISEKI’s wholly-owned subsidiaries (6 companies)

ISEKI Hokkaido Co., Ltd.
ISEKI Kansai Chubu Co., Ltd.
Nara ISEKI Sales Co., Ltd(non-consolidated)

ISEKI Tohoku Co., Ltd.

Gunma ISEKI Sales Co., Ltd.
ISEKI ChuShikoku Co., Ltd.
ISEKI Kanto Koshinetsu Co., Ltd.
Nishioka Shokai Co., Ltd.
(non-consolidated)
Ishikawa Shokai Co., Ltd.
(non-consolidated)
ISEKI Kyushu Co., Ltd.
Mie ISEKI Sales Co., Ltd.
Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

34

Overseas Manufacturing and Sales Sites

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

35

Global Development: Europe
Contribute to creation of clean towns that arepleasant to live in✓ Since the 1960s, when ISEKI started its business, ISEKI has been
contributing to the creation of pleasant and clean communities by expanding
its sales area to all European regions and establishing the ISEKI brand.
✓ The Company provides ride-on mowers used to cut grass in parks and smallsized, highly performance tractors to clean roads and remove snow, primarily
to landscape maintenance workers mainly contracted by municipalities.
✓ ISEKI France, a consolidated subsidiary, achieved record net sales andoperating income in FY2023 as a result of focusing on the provision of highadded-value products and services.

■Products handled
Category

Details

Products (non-agriculture)(mainly cultivatingmachinery)(mainly for landscaping)Compact tractors, ride-on
mowers, tillers, etc.

Other products*

Farming implements, parts, etc.

Main users
Landscapers, smallscale farmers, hobby
farmers*Purchase and sale of electric and gasoline-powered mowing products
and other products that have high synergy effects with ISEKI’s products.

■Main sales channels

Premium Turf-Care

France: ISEKI France (consolidated subsidiary)
Germany: ISEKI Germany (consolidated subsidiary)
UK: Premium Turf-Care Ltd. (non-consolidated)
Belgium and Netherlands: Van der Haeghe, etc.

ISEKI Germany
ISEKI France

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

-TopicISEKI sold electric rideon mowers on a limited
basis in 2022 andconducted a monitoring
survey aimed at fullscale sales. ISEKI
continues efforts aimed
at mass production.

36

Global Development: North America
Contribute to a fulfilling private life
✓ AGCO, a major global agricultural machinery manufacturer, is ISEKI’s
business partner. ISEKI supplies AGCO’s Massey Ferguson brandproducts on an OEM basis.
✓ The products are highly rated by local users, mainly non-professional
users, who utilize them for a wide variety of tasks, including light civilengineering work, garden maintenance, and snow removal in cold
regions.
✓ Demand for compact tractors has grown rapidly over the past decade,especially during the COVID-19 pandemic, when strong demand wasseen due to suburban migration and other lifestyle changes. Although
the market entered an adjustment phase in 2022, it remains large.

-History of product supply・1977 Began tractor exports (FMC: OEM)・1991 Began OEM supply to MF (Massey
Ferguson)・1994 Began OEM supply to AGCO

■Products handled
Category
Products (non-agriculture)(mainly cultivatingmachinery)
Other products

Details

Main users

Compact and subcompact tractors, etc.

Farmers, hobby farmers,
landscapers, light civilengineering contractors

Farming implements,
parts, etc.

■ Trends in North American compact tractor market and housing starts(Thousand units)(Thousand houses)
Number of housing starts in U.S

250
200
150

132.7

127.1

113.5
90.5

100

■Main sales channels

215.8

U.S. compact tractor market

94.8

96.3

104.4

114.2

123.5

131.7

145.1

156.0

170.1

235.1

2,500
192.2

178.7

172.4

1,500
1,000
500

50

U.S and Canada: AGCO Corporation (AGCO: OEM supply)

2,000

0

0
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Association of Equipment Manufacturers (AEM), United States Census Bureau (USCB)

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

37

Global Development: Asia
Contribute to food production and reducing the burden on agricultural producers
In the ASEAN, East Asia (Korea and Taiwan), and Chinese markets, ISEKI focuses on machinery for rice cultivation developed in Japan.
✓ In ASEAN, ISEKI is developing products and services for neighboring countries, with
IST, now a consolidated subsidiary, at the core. In addition to tractors, mainly used for
agriculture, ISEKI also provides rice transplanters, combine harvesters, and othermachinery for rice cultivation.
✓ In East Asia, the need for advanced-technology and large-sized agricultural machineryis growing. ISEKI provides large-sized, high performance, mainstay ISEKI brandproducts (tractors, rice transplanters, combine harvesters, etc.) through local distributors.
✓ In China, ISEKI products (tractors, rice transplanters, combine harvesters, and othermachinery for rice cultivation) for agriculture are used. In addition to ISEKI brandproducts, ISEKI is configuring products that better meet local needs by developing local
brands.

■Products handled and main sales channels
Country/region

ASEAN

Category
Products (agriculture)(mainly agricultural
machinery)

Details
Cultivating
Planting
Harvesting &processing

Other products

Tractors
Rice transplanters (walking type & ride-on type)All-purpose combine harvesters

Main users

etc.

Sales channel

Farmers
Contractors

Thailand: IST (consolidated subsidiary)*IST Farm Machinery Co., Ltd.

Farmers
Contractors

Local distributors

Farmers
Contractors

Dongfeng ISEKI (accounted for using
equity method)*Dongfeng ISEKI Agricultural MachineryCo., Ltd.

Farming implements, parts, etc.

East Asia(Korea andTaiwan)Products (agriculture)(mainly agricultural
machinery)

Cultivating
Planting
Harvesting &processing

Tractors, high clearance multipurpose vehicles
Rice transplanters, vegetable transplanters
Auto-threshing combine harvesters

China

Products (agriculture)(mainly agricultural
machinery)

Cultivating
Planting
Harvesting &processing

Tractors
Rice transplanters (walking type & ride-on type)Combine harvesters (auto-threshing, all-purpose) etc.

etc.

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

38

Intellectual Property
The number of ISEKI’s registered patents by field and its high patent granting rate are proof that it has been making proactive
efforts to develop, launch, and implement new technology.

1. Number of patents by field in Japan

2nd place in field of “Other Special Machinery”
Year
StatisticalnumberField

2000-2006

2007-20142016-20172018

Number of publications by field

2020-2022

Number of registrations by field

Agricultural and fishery products

Place

2019

Other special machinery

1st

2nd

1st

2nd

*Until 2016, the Japan Patent Office Annual Report contained the number of patents published by field in Japan (results for the previous two years), but since 2017 it
has contained the number of patents registered by field in Japan (results for the previous year)

2. Patent granting rate

3rd place in “All Industries”
Year

2004-20102011

2012-2017

2018

2019

2020

2021

2022

Granting rate

-

91.8%

94.7%-100%

96.4%

97.7%

98.7%

97.2%

94.6%

Place

1st

2nd

1st

2nd

1st

*Patent granting rate = number of patent applications granted / (number of patent applications granted + number of patent applications refused + number of patent applications
withdrawn or abandoned). Number of patent applications withdrawn or abandoned = number of patent applications withdrawn or abandoned after a notice of reasons for refusal.

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2024

3rd
Source: Japan Patent Office Annual Report,
2022 Edition (Japan Patent Office)39

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 First Quarter of the Fiscal Year Ending December 31, 202440