Iseki : Financial Results for the Financial Results for the Third Quarter Fiscal Year Ending December 31, 2021 Investor Relations Presentation Materials

Financial Results for the Third Quarter

Fiscal Year Ending December 31, 2021

Investor Relations Presentation Materials

ISEKI & CO., LTD.

November 12, 2021

President Shiro Tomiyasu

Index

1. Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2021
2. Domestic and Overseas Markets
3. Performance Forecast for the Fiscal Year Ending December 31, 2021
4. Topics

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

2

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

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

Key Points on Financial Results for the Third Quarter

YoY increases to both sales and profit

(Results Breakdown)

Domestic:	Recovery from the reactionary decline after the consumption tax hike
	Demand stimulated by government subsidies for agricultural business continuity,
	and a rebound since May
	Decreased willingness to buy due to falling rice prices
Overseas:	Increased demand in North America and Europe in line with lifestyle changes, but a
	shortage of containers for marine transportation led to unfulfilled shipments and
	expansions of other backorders.
	In Asia, positive impact seen from making a Thai distributor a consolidated
	subsidiary at the end of the previous fiscal year and increased sales of production
	parts to China
Earnings:	Gross profit buoyed by increased sales, but soaring raw material prices put
	pressure on earnings

<> Forecast>

Upwardly revised sales and profit, resumed dividends (30 yen)

・Upwardly revised from the previous forecast (February) despite emergence of expected risks in Japan and overseas

・Plan to resume dividend payment of 30 yen

Net Sales (3Q Cumulative)

(JPY bn)

120.5	119.1	120.9	111.6		123.4
		Domestic
							Overseas
21.7%21.2%20.7%21.7%26.3%
FY2017/12 FY2018/12 FY2019/12 FY2020/12 FY2021/12
3Q	3Q	3Q	3Q		3Q

Operating Income (3Q Cumulative)

(JPY bn)

4.6			4.5					5.8
3.5
				3.1

FY2017/12 FY2018/12 FY2019/12 FY2020/12 FY2021/12

3Q

3Q

3Q

3Q

3Q

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021	4

Business Environment

Domestic

North

America

Europe

Overseas

Asia

	YoY		Current Quarter
	(FY2020/12 3Q)		(FY2021/12 3Q)
✓Reactionary decline after consumption tax hike	✓Recovery from post-consumption tax hike reactionary decline
✓Self restraint on sales activities due to COVID-19	✓Impact of self restraint on sales activities due to COVID-19 eased
			compared to previous year
		✓Demand stimulated by government subsidies for agricultural business
			continuity, and a rebound since May
		✓Decreased willingness to buy due to falling rice prices
✓Robust demand owing to growing demand resulting from consumers	✓Increased demand due to lifestyle changes
	staying at home	✓A shortage of containers for marine transportation led to unfulfilled
✓Delays in shipments of parts led to decreased shipments of tractors		shipments and expansions of other backorders
	(temporary factors of the Company)
✓Temporary closure of local retail outlets due to lockdowns⇒the	✓Robust demand for consumer goods newly uncovered owing to lifestyle
	Company adjusted shipments		changes
✓Partial recovery seen after store operations gradually resumed from	✓Local distributors continued operations as essential retail
	May onwards	✓Sales activities gradually returned to normal as vaccination progressed
✓	China	✓	China
	・Demand for agricultural machinery stimulated by government policies to		・Robust market continued, owing to factors including the continuation of
	secure food and travel restrictions		government policies to secure food and stabilization of grain prices
✓	ASEAN (Thailand)	✓	ASEAN (Thailand)
	・Drought affected farmers' household income and demand for agricultural		・Demand for agricultural machinery was on a recovery track, as the
	machinery, but rainfall has generally recovered since September.		volume of agricultural produce and crop prices began to recover last
✓	South Korea		year
	・Demand for large agricultural machinery continued	✓	South Korea
✓	Taiwan		・Demand for large agricultural machinery continued
	・Increased demand due to subsidies for large agricultural machinery	✓	Taiwan
			・A pullback effect with the withdrawal of subsidies

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2021	5