Iseki : Financial Results for the Third Quarter Fiscal Year Ending December 31, 2022 Investor Relations Presentation Materials

Financial Results for the Third Quarter

Fiscal Year Ending December 31, 2022

Investor Relations Presentation Materials

ISEKI & CO., LTD.

November 14, 2022

INDEX

1. Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2022
2. Domestic and Overseas Markets
3. Performance Forecast for the Fiscal Year Ending December 31, 2022
4. Topics

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2022

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1. Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2022

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2022

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Production delay due to supply chain disruptions

Decreased willingness to buy due to weak rice prices and soaring material prices Pullback effect with withdrawal of government subsidies for business continuity in the previous fiscal year

Key Points

Strong sales overseas

Domestic sales decreased mainly due to the impact of a pullback effect with withdrawal of subsidies, weak rice prices, and soaring material.

Domestic:prices.

Overseas: (North America)	Compact tractors market entered an adjustment phase, but our
	shipments continued to grow to recover the local inventory levels
(Europe)	Strong sales, mainly to consumers, as we catered to lifestyle changes
	Sales to professionals also increased as demand for landscaping
	recovered
	Making ISEKI Germany a consolidated subsidiary also contributed to
	sales growth

Earnings: Price revisions implemented in each region were unable to fully cover the impact of soaring raw material prices, putting pressure on earnings.

<> Forecast>

Revised in light of current conditions, etc.

3Q Net Sales

(JPY bn, %)

119.1 120.9 111.6 123.4 125.3

						Domestic
						Overseas
			26.3%		32.1
21.2%	20.7%	21.7%		%
FY2018	FY2019	FY2020	FY2021	FY2022
3Q	3Q	3Q	3Q		3Q

3Q Operating Income, Ratio

(JPY bn, %)

5.8

4.5

3.5 3.1 3.1

[Operating Margin]

3.0% 3.7% 2.8% 4.7% 2.5%

FY2018 FY2019 FY2020 FY2021 FY2022

3Q 3Q 3Q 3Q 3Q

Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2022	4

Market & Business Environments in the Third Quarter

[Legend]  = Market environment

 = Business environment

Market & Business Environments

• Impact of COVID-19

• Supply chain disruption (delayed procurement of parts for production, etc.)
• Soaring raw material prices
• Impact on sales activities, including exhibition cancellations
• Pullback effect with withdrawal of government subsidies for business continuity
• North America: Compact tractors market entered an adjustment phase, but our shipments continued to grow to recover the local inventory levels
• Europe: Increased demand due to lifestyle changes, sales to professionals also recovered

• Weak rice prices, soaring material prices

		 Decrease in farmers' willingness to buy

• Russia's invasion of Ukraine

		 Sales: No direct impact as we do not conduct sales activities in this region.
		Purchasing: Supply chain disruption, concern that raw material prices will soar further

 Yen depreciation

		 Minor impact on operating income

• Soaring prices of crude oil and other fuels

			 Increased logistics and operating costs
			Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 31, 2022	5