July 18, 2024

Name of Company: ISEKI & CO., LTD.
Company Representative: President, Shiro Tomiyasu
Code number: 6310
Stock exchange listing: Tokyo Stock Exchange Prime Market
Enquiries: Investor Relations Section
General Manager, Fumitoshi Suzuki(Telephone: +81 3 5604 7709)

Notice on Implementation of Project Z Measures, Projected Losses, andRevision to the Consolidated Financial Results Forecast for
the Fiscal Year ending December 31, 2024
ISEKI & CO., LTD. (hereinafter the “Company”) hereby announces that a resolution has been passed at a
meeting of the Board of Directors held today in relation to the measures for the fundamental structuralreforms and growth strategy of Project Z that were announced on February 14, 2024.
As it is projected that the Company will record expenses consequent to the implementation of thesemeasures in the fiscal year ending December 31, 2024, the Company will revise the consolidated financial
results forecasts for the fiscal year ending December 31, 2024 (January 1, 2024 through December 31, 2024)
that were announced on February 14, 2024.
1. Implementation of Project Z Measures
We will implement the following specific initiatives to ensure the Project Z measures materialize.
1-1. Fundamental Structural Reforms(1) Optimize Production through Reorganization of Production Sites
We will undertake a consolidation of production assembly sites and component (hydraulicequipment) production sites in order to improve productivity, increase production efficiency, andstandardize production.
Details of implementation:
・ Implement progressive capital investments totaling 46.0 billion yen by 2030
(construction of new buildings, production facilities, etc.)
・ Consolidate production assembly at ISEKI M&D (Matsuyama)- Wind down production at ISEKI M&D (Kumamoto) and transfer assembly operations ofcombine harvesters (2026)
Employees of ISEKI M&D (Kumamoto) will be transferred within the group or offeredre-employment and other support. The Company is currently discussing with the labor
union the matters relating to the consolidation, and is considering the best course of action
with regard to the site after production has been wound down.
- After completing consolidation of component (hydraulic equipment) production at ISEKINiigata MFG., assembly operations for rice transplanter will be transferred・ Increase capacity of overseas sites

(2) Optimize Development through Reduction and Shift in Development Resources
We will promote more efficient development by consolidating 30% or more of models and types
and by adopting common design, and aim to strengthen competitiveness by shifting development
resources to growth-related themes such as cutting-edge technologies and reducing impact on theenvironment.
With regard to consolidation of models and types, we have selected some of targets forconsolidation and moved on to the implementation phase. We will continue to identify targets forconsolidation and ensure stable supply to the market through OEM, expanding the lineup of othercompanies’ products, and other methods.
(3) Deepen Domestic Sales by Creating a Foundation for our Growth Strategy
We will integrate our six (6) domestic sales companies over a wide area, and establish ISEKI
Japan Co., Ltd. on January 1, 2025. Such consolidation and re-allocation of management resources
to improve management efficiency, as well as optimization of inventories at sites and revision of
the logistics system to reduce logistics costs, etc., will lead to creating a foundation for our growthstrategy.
(4) Optimize Employee Composition and Invest in Human Capital
In order to achieve in a short period of time the growth and transformation to a strong corporate
structure that we aim for through Project Z, we will concurrently optimize our employee
composition by streamlining non-operating departments and soliciting applications for voluntary
retirement, as well as invest in human capital such as by improving engagement and allocating
human resources to growth areas.
We are discussing with the labor union regarding the matters relating to the solicitation ofvoluntary retirement applications.
Overview of the solicitation for voluntary retirement:
・ Who may apply: Senior age employees and full-time employees of ISEKI & CO., LTD. aged
45 and above as of December 20, 2024
・ Target number of applicants: Approximately 80
・ Application period: From October 1, 2024 to November 20, 2024 (expected)
・ Date of retirement: December 20, 2024 (expected)
1-2. Growth Strategy(1) Development of Strategies Specific to Each Overseas Region and Product Strategies
We aim to expand our overseas business by developing our region-specific strategies andproduct strategies. This includes enhancing our product lineup by launching environmentallyfriendly products. In region-specific strategies, we will accelerate the expansion of business in
Europe, a high-profitability region in which we have presence. In addition, our local distributor in
the U.K., PREMIUM TURF-CARE LIMITED, will be made a consolidated subsidiary from 2025
by way of an additional acquisition of shares. In this manner, not only will we expand our sales
territory and product lineup and improve efficiency by centralized inventory management acrossEurope; we will also facilitate innovation through the exchange of diverse human resources.

(2) Concentrating on Domestic Growth Areas
By concentrating efforts and strengthening sales in the growth areas symbolized by the
keywords: large-sized, advanced, environmentally friendly, and dry field, we will maintain stable
margins as well as expand profitable areas of business through sharing know-how on a nationwide
scale. We will provide valuable agricultural solutions with people, assets, and know-how while
increasing the strengths of the Iseki Group.
2. Future Outlook
As a result of implementing the fundamental structural reforms and growth strategy, we expect our
2027 operating income to increase by at least 7.5 billion yen compared to 2023.
Meanwhile, in the fiscal year ending December 31, 2024, we expect to record about 3.5 billion yen
of expenses consequent to the implementation of the following additional measures under 1-1.
Fundamental Structural Reforms: winding down production at ISEKI M&D (Kumamoto) under item
(1) Optimize Production through Reorganization of Production Sites, and voluntary retirement underitem (4) Optimize Employee Composition and Invest in Human Capital. We will carefully consider
future developments and will announce details as soon as they are confirmed.
3. Revision to the Consolidated Financial Results Forecast
Revision to the consolidated financial results forecast for the fiscal year ending December 31, 2024
(January 1, 2024 through December 31, 2024)(Millions of yen)
ProfitEarnings
attributable
per share
to owners(yen)of parent
400
17.69

Net sales

OperatingincomeOrdinary
incomePrevious Forecast (A)170,000

2,000

1,000

Latest Forecast (B)170,000

2,000

1,000

ሺ3,100)Difference (B – A)

–

–

–

ሺ3,500)Rate of Change (%)(Ref.) Results for the Fiscal Year
Ended December 31, 2023

–

–

–

–

169,916

2,253

2,092

29

ሺ137.06)

1.28*The previous forecast was announced on February 14, 2024.

Reason for revision:
The Company expects to record about 3.5 billion yen of expenses consequent to the implementationof Project Z measures, and therefore revises its profit for the current fiscal year (January 1, 2024 throughDecember 31, 2024).
There is no change to the dividend forecasts.
(Note) The above forecasts are prepared based on information available to the Company as of the date ofthis announcement, and the actual financial results may differ from the forecasts due to various
reasons.

(Reference: About Project Z Measures)
Under Project Z, we will formulate and implement measures for achieving fundamental structural reforms
and growth strategy.
The fundamental structural reforms will be implemented in a short period of time, focusing on three core
themes: “optimize production,” “optimize development,” and “deepen domestic sales.” In addition, under
the growth strategy, we will concentrate resources on growth markets both in Japan and overseas, with theaim of expanding our business.
By implementing these measures, we aim to achieve a PBR of 1 or higher by 2027.
Vision (2027)
Consolidated operating margin
ROE
Shareholder return DOE

5% or higher
8% or higher
2% or higher

For further details, please refer to the attached documents.

PBR of 1 or higher

Implementation of Project Z Measures
ISEKI & CO., LTD.

〔Tokyo Stock Exchange Prime Market:6310〕
July 18, 2024

Index１．Outline of Project Z
２．Measures
３．Fundamental Structural Reforms
４．Growth Strategy

2Outline

Measures

Structural Reforms

Growth Strategy

Outline of Project Z

3Outline

Outline of Project Z

Measures

Structural Reforms

Growth Strategy

Sweeping comprehensive business structural reforms [Project Z]We are implementing sweeping comprehensive business structural reforms of which Project Z is a core pillar, to achieve our long-term vision for 2030

Sweeping comprehensive business structural reforms[Short-term focused measures]・[Fundamental structural reforms]

Smart & Sharp
Address demand and build up capabilities.
(1) Improve profitability(2) Enhance asset efficiency(3) Allocate cash for growth

VisionGoals for 2027
Operating margin
5% or higher
ROE 8% or higher
DOE 2% or higher

PBR
1 or
higherTo be aSolution
Providerfor
Agriculture&
Landscape[Growth strategy]
Growth2030
Leverage ISEKI technology to realize on a global scale ・Overseas: Expand net sales
to approximately 1.5
・Automation & labor savings
times of 2023 net sales
・Reduced impact on the environment for agriculture
・Domestic: Focus on growth areas
and landscaping.
[Short-term focused measures][Fundamental structural reforms]

and strengthen profitablebusinesses[Growth strategy]4Outline

Outline of Project Z

Measures

Structural Reforms

Growth Strategy

The path to growth Extraordinary losses will be recorded in the fiscal year ending December 31, 2024, owing to implementation of the difficult fundamental
structural reforms as part of the short-term focused measures
 The goal is to achieve an operating margin of at least 5% in 2027 through the implementation of the various Project Z measures

Changes in net sales and operating margin(JPY bn)200

Net sales

Operating margin
Mid-term Management Plan
Actual performance

Overseas
Domestic

Projected

150

5.0%

100

50
[Short-term focused measures][Fundamental structural reforms]

0

2020

2021

2022

2023

2024

2025

2026

2027

[Growth strategy]2030
5Outline

Measures

Structural Reforms

Growth Strategy

Measures (Summary)6Outline

Measures (Summary)

Growthstrategy

Fundamental structuralreforms<Themes forming the axis>

Optimize
production

Re-allocation of production sites
and models

Optimizedevelopment

Selection and concentration ofdevelopment resources

Deepen domestic
sales

Reduction of non-operational
work and inventories

CommonTransformation into a strong
business structure

Focusing management
resources on growth segments

Domestic

Structural Reforms

In This Announcement <Measures & Progress>

Growth Strategy(Page no.)■Reorganization of production sites
Consolidation of production assembly at ISEKI M&D

P11(Matsuyama)■Reduction & shift in development resourcesConsolidation of 30% of models and types has
progressed to the implementation phase, with selection

P12

of consolidation targets partially complete■Building a base for strategic growthOverseas

Measures

Decision to integrate sales companies over a wide area

 Optimization of employee composition andinvesting in human capital Cost reductions■Development of region-specific strategies


Expansion of European landscape improvement market■Focusing on growth areas

Expansion of profitable businesses
Provision of valuable agricultural solutions

P13

P14-15

P18-21

P22-267

Outline

Income Increases by Measure

Measures

Structural Reforms

Growth Strategy

Goal: a consolidated operating margin of 5% or higher in 2027
 Generate increases in operating income of 7.5 billion yen or more through fundamental structural reforms and growth strategy
 Steadily implement measures focusing on domestic and overseas growth areas and other measures

Breakdown of increase inoperating income (JPY bn, %)(2027 projected effects vs 2023)

Growth strategy

Effects of fundamental structuralreforms

1.5 billion yen ormore

6.0 billion yen or more
Approximately 1.5
billion yen

Approximately 3.5
billion yen

Approximately 1.0
billion yen

7.5 billion yen
or moreCost reductions

Gross profit margin: +1.5 to +2.0%

Deeperdomestic
sales

Operating income
2.2 billion yen

Operatingmargin of
5% or higher

SG&A ratio: (2.5) to (3.0)%

Operating margin of
1.3%

2024年

2023

Optimization of
production anddevelopment

生産・開発最適化

国内営業深化

共通

成長戦略

2027年

2027

8

Outline

Measures

Structural Reforms

Growth Strategy

Smart & Sharp

Fundamental Structural Reforms<In This Announcement>■ Optimize production: policy on reorganization of production sites■ Optimize development: progress on product profit margins andconsolidation of models and types■ Deepen domestic sales: scheme for integrating sales companies over awide area■ Common: measures for and effects of optimization of employee
composition and investing in human capital9

Outline

Optimization of Production and Development

Measures

Structural Reforms

Growth Strategy

Building robustly-structured factories; reduction & shift in development resources Optimize production: make capital investments toward reorganization of production sites; improve earning capacity by increasing production
 Optimize development: improve product profit margins in the short term; reduce development resources and shift to growth themes

 Consolidate production assembly at ISEKI M&D (Matsuyama) Strengthen capabilities of overseas production sites
 Make capital investments in production sites (domestic reorganization; overseas
enhancement)
・Total investment: 46.0 billion yen (’24-’30)
・Main investments: construction of new buildings; production facilities(assembly/painting)

Optimize development
 Efforts to improve product profit margins in the short term are under way, with effects
expected to be seen from 2025 and beyond Consolidation of 30% of models and types has progressed to the implementation phase,with selection of consolidation targets partially complete Promote efficient development through the consolidation of models developed and theuse of common design; shifting development resources from current themes to growth
themes

Effects

Optimize production◆Increase in operating
income in 2027

3.5

approx.
billion yen(compared to 2023)

10

Outline

Measures

Structural Reforms

Optimize Production Reorganization of Production Sites

Growth Strategy

Reorganization of production sites and models to build robustly-structured factories

 Reorganization of domestic factories: consolidate production of combine harvesters and rice transplanters in ISEKI M&D (Matsuyama). Build asystem that can respond swiftly to environmental changes
 Strengthening overseas production sites: transfer production for overseas products to PT. ISEKI Indonesia; improve responsiveness to the
expanding overseas business[Factory][Principal production
models]Niigata

Rice transplanters,
vegetabletransplanters, ricehullers

Matsuyama

Kumamoto

Indonesia

Tractors, mowers,
components(engines, hydraulicequipment)

Combine harvesters

Tractors, mowers

Transfer of
production

July 2024

ISEKI
M＆D

From 2026

Hydraulicequipment

Management
integration
M&D
Matsuyama
M&D
Kumamoto

Capitalinvestment& systembuilding

Combineharvesters

End ofproduction

2030[Production models
after transfer]Ricetransplanters

Overseas
medium andsmall
tractors andmowersComponents(hydraulicequipment)
Tractors, combine
harvesters, ricetransplanters,
vegetabletransplanters,
components(engines)

Tractors, mowers(expand range ofmodels handled)

Completionof reforms
 Optimized
production
 Effective
utilization ofhuman
resources Enhanced
asset
efficiency
 Inventory
reduction
 Fixed cost
reduction

11

Outline

Optimize Development

Measures

Structural Reforms

Growth Strategy

Reduction and shift in development resources Consolidation of 30% of models and types has progressed to the implementation phase, with selection of consolidation targets partially complete Promote efficient development through consolidating models developed and adopting common design; shifting development resources fromcurrent themes to growth themes* “Agri products” means agricultural machinery, and “Non-Agriproducts” means machinery not used for agriculture(environmental improvement machinery, etc.).

100
90

Development resources

80
70

Current themes(primarily Agriproducts)

60

Current themes▼▼
Steps to enhance
value

Growth themes

Agri: Large-sized; dry field
products
Non-Agri products:
Expand product lineup

50
40

Common:30

Level 1-3 automation
Variable fertilizer
application
Switch to electric
Reduced impact on theenvironment

20
10
0

Growth themes
2024

2027

2030
12

Outline

Deepen Domestic Sales

Measures

Structural Reforms

Growth Strategy

Launch of ISEKI Japan in January 2025; building a base for strategic growth

ISEKI Hokkaido

 Higher efficiency due to concentration andredistribution of management resources
 Reduced logistics costs due to optimization of
inventory hubs and reassessment of logistics

ISEKI Tohoku
ISEKI Kanto
Koshinetsu
ISEKI Kansai Chubu

Management
integration

ISEKI
Japan

ISEKI ChuShikoku

Improve product and component
distribution
Optimize inventory hubs

ISEKI Kyushu
Mie ISEKI Sales
ISEKI Business
Division

Organizational
integration*Discussions are under way with regard to the integration of Mie ISEKI Sales

Effects

 Execute management integration of domestic sales companies over a wide area (6 companies) and Mie ISEKI Sales Integrate functions of the new company and ISEKI Business Division to improve management efficiency◆Increase in operating
income in 2027

approx. 1.5 billion yen(compared to 2023)

Building abase forstrategic
growthRevision of logistics
system13

Outline

Measures

Structural Reforms

Optimize Employee Composition; Cost Reductions

Growth Strategy

Building a new human resource system for a sustainable growth strategy

 Accelerate optimization of employee composition and investing in human capital in parallel to achieve transformation into a robust business structure within a shorttime frame・Streamline non-operating departments
・Solicit applications for voluntary retirement

 Invest in human capital・Improve engagement with and treatment of employees
・Enhance education and training to improve market
competitiveness・Promote adoption of external human resources andother forms of diversity
・Allocate human resources to growth areas

Effects

 Optimize employee composition

Impact on personnel expenses
of 1.0 billion yen in total*

Investment

Optimization of employee composition andinvesting in human capital◆Increase in operating
income in 2027

approx. 3.0 billion yen(compared to 2023)◆Decrease in operating
income in 2027

approx. (2.0) billion yen(compared to 2023)*Impact on personnel expenses of 1.0 billion yen in total is included in the calculation of Optimization of
production and development and Deeper domestic sales on page 8, Income Increases by Measure Reduction in SG&A expenses(the effects in the above section excluded)

・Achieve better operational efficiency owing toorganizational and operational integration
・Thoroughly reduce operating expenses

Effects

Cost reductions◆Increase in operating
income in 2027

approx. 1.0 billion yen(compared to 2023)

Changes in total no. of employees(optimization of employee composition)
8,000(Employees) *Including non-permanent employees
6,000

4,000

2,000

2023

2024

2027

[Summary of voluntary retirement]
Who may apply

Senior age employees and full-time employees
aged 45 and above

Target number ofapplicants

Approximately 80

Application period

From October 2024 to November 2024

Productivity to increase by 20% (vs 2023)
as a result of stronger human resources14

Outline

Measures

Structural Reforms

Growth Strategy

Invest in Human Capital
Establishing a personnel policy for completing Project Z

Soliciting applications forvoluntary retirement

Enhancing training programs
Improving employee treatment

Improved engagement

Optimization of employee
composition

Growthstrategy

Reorganization

Management
efficiency

Reorganization✓Integrate sales companies (ISEKI Japan)✓Optimize production (ISEKI M&D)
✓Reorganize non-operating departments

Completion of Project Z

Revision and enhancement of
personnel system

Control over hiring

Desired employee profile

Skill management

 Implement reorganization and optimize employee composition to enhance individual productivity
 Improve engagement with human resources of the future and retain the human resources required for growth by investing in human capital

Diversification of
hiring system
15

Outline

Measures

Structural Reforms

Growth Strategy

GrowthGrowth Strategy＜In This Announcement＞■Overseas ：Expand the business in Europe■Domestic ：Concentrating on growth areas

16

Outline

Growth Strategy

Measures

Structural Reforms

Growth Strategy

Concentrating management resources on growth segments
 Overseas Domestic

Develop region-specific strategies: accelerate business growth Europe, a high-profitability region in which we have presence
Reorganize the Company’s organization and its systems, concentrating on growth areas

Growth Strategy
・Expand the business in Europe- Making PTC Limited, our local distributor in the UK, aconsolidated subsidiary by way of additional acquisition of*PTC Limited: Abbreviation of PREMIUM TURF-CARE LIMITED
shares Product strategy
・Expand range of Non-Agri products; introduce environmentallyfriendly products

Front
mower

Effects

Overseas Develop region-specific strategies◆Increase in operating
income in 2027

approx. 1.0 billion yen(compared to 2023)

 Expanding sales in growth segments

Large-sized robot
tractor TJW1233-R

・Concentrate on growth areas through reorganization

・Provide valuable agricultural solutions
Large-sized, advanced, environmentally friendly, dry field products ← People, assets,
and know-how

Effects

Domestic*“Non-Agri products” means machinery not used for agriculture(environmental improvement machinery, etc.).

◆Increase in operating
income in 2027

approx. 0.5 billion yen(compared to 2023)
17

Outline

Measures

Structural Reforms

Growth Strategy

North America business*AGCO is an OEM
customer of ISEKI

 Develop region-specific strategies
 Product strategy
Non-Agri & environmentally friendly
products

Further increase share in AGCO by enhancing

products suitable for the region, etc.
Europe businessNet
sales (JPY bn)
1000
Asia
800

Expand business and enhance product lineup

Net sales
Average annual growth: 10%
Operating income Average annual growth: 20%(2020 to 2030)

North America

2

6.5

0

2023

2027

2030

-2

approx. 1.0 billion yen(compared to 2023)

Balloon size: Net sales

Non-Agri

Non-Agri

100

0

33.2

13.9
2020

140

◆Increase in operating
income in 2027

North
America

180

4

14.2
12.8

Europe

6

9.2

200

8

80.0

EuropeOperating
600 margin
400

220

GrowthDevelop region-specific strategies

Effects

Growth Strategy - Overseas

FY202360

5 *Based on projected 2030 7net sales

9*Non-Agri products means machinery not used for agriculture(environmental improvement machinery, etc.)

11
IncomeLooking toward 2030, improve profitability and accelerate growth of business in Europe
18

Outline

Measures

Structural Reforms

Growth Strategy

Growth Strategy - Overseas
Expand to become No. 1 landscape improvement brand in Europe with net sales over 40.0 billion yen
Traditional
markets

Net sales in Europe

40.0 billion yen(Distributors)Product
strategyOffer professional-grade
products (including EV);enhance product lineup
Introduce low-costmachinery models (global)

Regional sales strategy, joint
procurement, and inventory
management through threesubsidiaries in France,
Germany, and the UK
M&A of distributors, etc. taking
into consideration strategic/
challenging markets

Region-specificstrategy

Expand of business bases
according to categories of
traditional markets, strategic
markets, and challenging
markets

Challenging
markets

Leverage brandAs yet unexploredrecognition to expand
countries/regions
share
Northern Europe; Southern
Europe; part of Eastern Turkey; South Africa; part
Western Europe; the UK
Europe; part of Northof Eastern Europe; etc.
Africa; etc.
High brand recognition;
large share(2030)

Strengthen
product
capabilities

Sales strategy

overStrategic
markets

Offer professional-grade
products (including EV)

Introduction of
global machinery(mid- to low-pricemodels)Strengthen sales network- Review coverage- Transform into consolidated
subsidiaries (capture services
income)Europe

●

●
●

●

●

●

North Africa

Middle East

South Africa

TurkeyNorthern
EuropeEastern
Western Europe

西欧

EuropeSouthern Europe

Outline

Measures

Structural Reforms

Growth Strategy

Growth Strategy - Overseas
Making PTC Limited, our local distributor in the UK, a consolidated subsidiary by way of additional acquisition of shares


PTC Limited will be made a consolidated subsidiary effective from 2025, with which we will have established the system for the next phase of growth of our business in
Europe

Initiatives include improving efficiency through consolidating inventory management within Europe, and facilitating innovation through the exchange of diverse humanresources

Premium-Turf Care, the UK

History
2017: Established PTC Limited(shareholding ratio of the Company: 44.5%)

Growth of sales/service network andbusiness performance
Increased presence in the UK

2025: PTC Limited to become aconsolidated subsidiary of the Company(shareholding ratio of the Company: 100%)

ISEKI-MaschinenGmbH, Germany
ISEKI FranceExpansion of sales territory and enhancement of product lineupHigher efficiency owing to consolidated inventory management
across Europe

Generating innovation through the exchange of diverse humanresources

Effects

With the consolidation◆Increase in operating
income in 2027

0.4 billion yen(compared to 2023)*Included in the 1.0 billion yen increase inoverseas operating income in 2027

*Shaded areas: sales territories of eachsubsidiary20

Outline

Measures

Growth Strategy

Structural Reforms

Growth Strategy - Overseas
PTC Limited

Basic Information: Overview(Exchange rate as of December 31, 2023: 190 yen/GBP)

Established:

October 2017

Share capital:

GBP 180,000 (equivalent to 32 million yen)

Net sales:

GBP 16.9 million (equivalent to 3.0 billion yen)

Operating income:GBP 2.2 million (equivalent to 0.4 billion yen, 13%)

Representative:

David Withers[fiscal year ended December 31, 2023]

PTC Limited net sales trend(Unit: GBP)

Average annual growthrate 12.2%(2018 to 2023)

Location of head office: Ipswich, the U.K. (northeast of London)
Shareholders andshareholding ratios:

Kelly Withers 49.4%; David Withers 6.1%;
ISEKI 44.5%

21Outline

Measures

Structural Reforms

Growth Strategy

Growth Strategy - Domestic
Concentrating on growth areas and strengthening profitable businesses
Effects

 Expand profitable businesses by sharing know-how on a country-wide scale Ensure stable income by concentrating on growth areas and strengthening
sales◆Increase in operating
income in 2027

approx. 0.5 billion yen(compared to 2023)■Net sales
Profitable businesses(bn JPY)

Expandprofitablebusinesses

Profitablebusinesses

50

Concentrateon growth
areas

Products(details on the following pages)

Other

Farming implements
Spare parts
Pre-owned
Gross profit

100

Balloon size: net sales
Profit margin

0

2023

2027

2030
22

Outline

Measures

Structural Reforms

Growth Strategy

Growth Strategy - Domestic
Concentrating on growth areas
 Focus on large-sized, advanced, dry field, environmentally friendly products for improving agricultural productivity
 Provide solutions with people, assets, and know-how while increasing strengths

Strengths•••

Human know-how
Imported large-sized
farming implements
Environmental technology

Increase•••

Proposal capabilities for largescale farmers
Sharing of know-how
Expand to providing services

PeopleAssetsKnow-how

Sales strategy

Product
strategy

Advanced &Environmentallyfriendly

Develop humanresources to utilize theintegrated sales
companies
Create systems for
capturing the market

Enhance productlineup to appeal tolarge-scale farmers
Strengthen link to dry
field farming
implementsExpand robot product line
Introduce advanced
technologies such as
variable fertilizer application
Expand organic farming
initiatives

Providesolutions
Large-sized
Advanced
Dry field
Environmentallyfriendly23

Outline

Measures

Structural Reforms

Growth Strategy

Growth Strategy - Domestic Sales Strategy (People)
Establishment of Large-scale Planning Section (January 2025)
 Consolidate the capabilities of ISEKI Japan and ISEKI Business Division
Expand customer base and strengthen proposal capabilities by fastersharing of know-how resulting from the new organizational structure Strengthen marketing to persons-in-charge
Venture into B2B business targeting companies entering the agriculture industry
 Provide goods and services targeting the growing demand for large-scale
agriculture

Farmers

Corporate
customers

Localgovernments/
companies

Sales sites

Large-scale Planning Section
Sales
companies

Integration

Iseki
Business Division

Improving human resource capabilities through employee rotation
 Implement training and deploy/transfer employees to the large-sized market on a nationwide
scale to develop human resources in the areas of large-sized and dry field farming

24Outline

Measures

Growth Strategy

Structural Reforms

Growth Strategy - Domestic Product Strategy (Assets)
Enhancement of large-sized products/farming implements
 Large-sized products and products equipped with advanced technologies
 Dry field farming implements and farming implements compliant with ISOBUS

 Enhance large-sized, advanced productmodels Increase ratio of large-sized farming implement sales(Tractors, rice transplanters, combine harvesters)

TJW Robot

Product Enhancement
Large-sized

Advanced

Environmentallyfriendly

Dry field

100%※大型機種：トラクタ70PS以上、田植機８条植え以上、コンバイン6条刈以上

2030

Large-sized
大型
その他
Other

75%
50%

50% or higher

25%
0%

2024

Sales composition of
ISEKI products

2023

2027

2030

*Large-sized: tractors of 70PS or greater; rice transplanters of
8 rows or more; combine harvesters of 6 rows or more25

Outline

Measures

Structural Reforms

Growth Strategy

Growth Strategy - Domestic Advanced & Environmentally Friendly (Know-how)Promoting the spread of technologically advanced products Accelerate agricultural automations by expanding products and services
 Reduce the impact on the environment by promoting variable fertilizer andorganic agriculture

Robot agricultural machinery

Provide valuable agricultural solutions
Net sales of products equippedwith advanced technologies
Average annual growth rate
7.9%(2020-2030)

 Expand products and develop human resources; build asystem to support operations
 Provide highly accurate location information throughcollaborations with local governments and companies

8,000
7,000
6,000

Variable fertilizer

5,000 Strengthen collaboration with local governments, etc.
 Support cross compliance introduced by Ministry ofAgriculture, Forestry and Fisheries

4,000
3,000
2,000

Organic agriculture

1,000 Introduce the new Aigamo-Robomodel Develop organic farming know-how
2020

2023

2027

2030

0
26

Outline

Measures

Growth Strategy - Enhance Asset Efficiency

Structural Reforms

Growth Strategy

Reduce inventories
 Minimize stock of seasonal products through consolidation of product assembly factories
 Reduce inventories by consolidating machinery models and types, company reorganization, and centralized management, etc.

 Build a procurement/logistics system through consolidation of
product assembly factories
・Achieve an optimal production structure for timely provision ofseasonal products Increase production and sales efficiency through consolidation ofmodels and types
 Reduce inventories through integration of sales companies
 Make effective use of inventories through centralized inventory
management (domestic and overseas [Europe])

7.0
6.0

◆2027

Turnover of 2.4 times
or higher

5.0

Inventory turnover rate (times)

4.0
3.0

 Supply chain strategy
・Build a supply chain that is strong enough to withstandenvironmental changes
・Strengthen linkage from procurement through logistics

TargetInventory turnover rate

2.0

2.1

2.0

1.9

2.0

2.2

1.8

1.6

2.4
●

1.0
0.0
2017/12 2018/12 2019/12 2020/12 2021/12 2022/12 2023/12 2027/12

27

Outline

Measures

Structural Reforms

Growth Strategy

Growth Strategy - Allocate Cash for Growth Generate operating cash flow through improved profitability and enhanced asset efficiency
 Until 2027, implement fundamental structural reforms and growth investment, with shareholder returns of DOE 2% or higher From 2028, improve shareholder returns from operating cash flow and reduce interest-bearing liabilities
700

600

700

■2024 to 2027 (4-year cumulative total)Loanspayable

500

400

300

200

100

0

OCF
50.0 billion yen
・Improve profitability
・Reduce inventories■2028～2030年（3年累計）■2028
to 2030 (3-year
cumulative total)

600

Structuralreform,growthinvestment,
etc.
・Optimize
production
・Human capital・Investment indevelopment
・Investment insystems
Shareholder returns

500

Reduction inloans payable

400

300

OCF
52.0 billion yen

200

100

0

・Business growth

Structuralreform,growthinvestment,
etc.
Shareholder returns
28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”.

29