Supplementary Information to Consolidated Financial Results
(January 1, 2023 - December 31, 2023)
ISEKI & CO., LTD.
February 14, 2024
Index
- Outline of Financial Results for the Fiscal Year Ended December 31, 2023
- Performance Forecast for the Fiscal Year Ending December 31, 2024
Supplementary Information to Consolidated Financial Results | 2 |
1. Outline of Financial Results for the Fiscal Year Ended December 31, 2023
Supplementary Information to Consolidated Financial Results | 3 |
Key Points | ||||||||
Net Sales (Full-year) | ||||||||
Sales increased and operating income decreased year on year. | (JPY bn, %) | 158.1 166.6 169.9 170.0 | ||||||
Overseas sales hit a record high for the third consecutive year. Year- | 149.8 | 149.3 | ||||||
end dividend: 30 yen per share | ||||||||
Domestic: | Sales rose partially due to increases in maintenance | Domestic | ||||||
revenues and construction of facilities | ||||||||
Overseas: | Sales hit a record high. Sales increased mainly in Europe. | 21.5% | 22.4% 25.8% 32.4% | 33.5% 32.4% | Overseas | |||
Earnings: | Gross profit increased mainly due to the effect of price | FY2019/12FY2020/12FY2021/12FY2022/12FY2023/12FY2024/12 | ||||||
revisions, but operating income decreased due to higher | Forecast | |||||||
SG&A expenses | Operating Income, Ratio (Full-year) | |||||||
(JPY bn, %) | ||||||||
Net sales will remain flat, and operating income will decrease | 1.8% | 2.6% | 2.1% | |||||
Year-end dividend: 30 yen per share | 1.4% | 1.3% | ||||||
1.2% | ||||||||
4.1 | ||||||||
Net sales: | Overseas, there will be temporary inventory adjustment in | 3.5 | ||||||
2.7 | ||||||||
2.0 | 2.2 | 2.0 | ||||||
Korea, but it will be covered by an increase in domestic sales | ||||||||
Profits: | Net sales will be almost flat, but operating income will | FY2019/12 | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | FY2024/12 | |
decrease due to higher SG&A expenses | ||||||||
Forecast | ||||||||
Supplementary Information to Consolidated Financial Results | 4 |
Outline of Consolidated | Business Performance | ||||||||
(January 1, 2023 to December 31, 2023) | (JPY bn, %) | ||||||||
FY2019/12 | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | YoY | Diff. | |||
(Target | |||||||||
Actual | Actual | Actual | Actual | Actual | Change | ||||
/Actual)* | |||||||||
Net Sales | 149.8 | 149.3 | 158.1 | 166.6 | 169.9 | 3.2 | 0.9 | ||
(Domestic) | 117.7 | 115.9 | 117.3 | 112.6 | 113.0 | 0.4 | (0.9) | ||
(Overseas) | 32.1 | 33.3 | 40.7 | 53.9 | 56.8 | 2.8 | 1.8 | ||
Gross Profit | 44.5 | 43.4 | 46.8 | 49.8 | 50.3 | 0.4 | |||
Gross Profit Margin | 29.7% | 29.1% | 29.6% | 29.9% | 29.6% | (0.3)% | |||
Operating Income | 2.7 | 2.0 | 4.1 | 3.5 | 2.2 | (1.2) | (0.2) | ||
Operating | Margin | 1.8% | 1.4% | 2.6% | 2.1% | 1.3% | (0.8)% | (0.2)% | |
Ordinary Income | 1.1 | 1.7 | 4.6 | 3.7 | 2.0 | (1.6) | (0.2) | ||
Profit (Loss) Attributable | 0.7 | (5.6) | 3.1 | 4.1 | 0.0 | (4.0) | (0.4) | ||
to Owners of Parent | |||||||||
Average | US$ | 109.3 | 107.0 | 109.0 | 131.3 | 139.4 | 8.1 | 0.1 | |
Exchange | Euro | 121.6 | 121.5 | 129.8 | 136.9 | 148.6 | 11.7 | 0.3 | |
Rate (JPY) | |||||||||
* Difference from the forecast announced on 14th November 2023
Supplementary Information to Consolidated Financial Results | 5 |
Domestic Sales
YoY | Sales increased due to growth in maintenance revenues and construction of |
JPY0.4 billion | |
facilities, despite lower sales of agricultural machinery | |
increase | |
FY2019/12 | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | YoY | ||||||||||
(JPY bn) | |||||||||||||||
Actual | Actual | Actual | Actual | Actual | Change | ||||||||||
Cultivating & | |||||||||||||||
Mowing | 25.3 | 22.8 | 23.9 | 22.9 | 22.0 | (0.8) | |||||||||
Machinery | |||||||||||||||
Planting | 9.0 | 8.8 | 9.0 | 7.9 | 7.2 | (0.6) | |||||||||
Machinery | |||||||||||||||
Harvesting & | |||||||||||||||
Processing | 18.5 | 16.8 | 16.6 | 16.0 | 15.7 | (0.3) | |||||||||
Machinery | |||||||||||||||
RelatedMachinery | MachineryAgricultural | Subtotal | 53.0 | 48.6 | 49.6 | 46.9 | 45.0 | (1.8) | |||||||
Farming | |||||||||||||||
Agricultural | 20.0 | 20.4 | 22.0 | 20.5 | 20.4 | 0.0 | |||||||||
Implements | |||||||||||||||
Spare Parts | 15.0 | 15.6 | 15.3 | 15.6 | 16.0 | 0.3 | |||||||||
Repair Fees | 5.7 | 5.8 | 5.9 | 5.8 | 6.0 | 0.1 | |||||||||
Subtotal | 40.8 | 42.0 | 43.3 | 42.0 | 42.5 | 0.4 | |||||||||
Total | 93.8 | 90.6 | 93.0 | 88.9 | 87.5 | (1.3) | |||||||||
Construction of Facilities | 4.5 | 6.1 | 4.2 | 4.3 | 5.5 | 1.1 | |||||||||
Others | 19.3 | 19.1 | 20.1 | 19.3 | 19.9 | 0.6 | |||||||||
Total | 117.7 | 115.9 | 117.3 | 112.6 | 113.0 | 0.4 | |||||||||
Diff.
(Target
/Actual)*
(0.5) |
(0.4) |
0.0 |
0.0 |
(0.3) |
(0.9) |
0.0 |
0.0 |
(0.9) |
Main factors of YoY changes
- Demand remained weak, and sales in agricultural machinery decreased
- Maintenance revenues (spare parts sales and repair fee revenues) grew, which are a pillar in reform of revenue and cost structure
- Construction of facilities increased due to large-scale construction
- Difference from the forecast announced on 14th November 2023
Supplementary Information to Consolidated Financial Results | 6 |
Overseas Sales
YoY
JPY2.8 billion Sales hit a record high for the third consecutive year. Sales increased mainly in
increase Europe.
FY2019/12 | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | ||||
(JPY bn) | Actual | Actual | Actual | Actual | Actual | YoY Change | ||
North America | 13.2 | 12.8 | 15.1 | 19.5 | 14.2 | (5.2) | ||
Europe | 12.8 | 13.9 | 15.9 | 25.1 | 33.2 | 8.1 | ||
Asia | 5.5 | 6.2 | 9.1 | 8.6 | 8.1 | (0.4) | ||
Others | 0.5 | 0.3 | 0.5 | 0.6 | 1.1 | 0.4 | ||
Total sales | 32.1 | 33.3 | 40.7 | 53.9 | 56.8 | 2.8 | ||
Diff.
(Target
/Actual)*
0.2
1.2
0.3
0.0
1.8
Main factors of YoY changes
✓ | North | Adjustment phase continued |
America: | in compact tractors market, | |
which led to decreased sales | ||
✓ | Europe: | Sales increased due to firm |
demand from retailers even | ||
after the price hikes, as well | ||
as ISEKI Germany becoming a | ||
consolidated subsidiary in the | ||
second half of the previous | ||
fiscal year | ||
✓ | Asia: | Sales decreased due to failure |
to cover a decline in | ||
shipments for Korea mainly | ||
because of falling rice prices, | ||
despite higher shipments of | ||
parts for production to China |
* Difference from the forecast announced on 14th November 2023
Supplementary Information to Consolidated Financial Results | 7 |
Operating Income
YoY | Gross profit increased mainly due to the effect of price revisions, but operating |
JPY1.2 billion | |
income decreased due to higher SG&A expenses | |
decrease | |
FY2019/12 | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | YoY | |
(JPY bn, %) | ||||||
Change | ||||||
Actual | Actual | Actual | Actual | Actual | ||
Net Sales | 149.8 | 149.3 | 158.1 | 166.6 | 169.9 | 3.2 |
Gross Profit | 44.5 | 43.4 | 46.8 | 49.8 | 50.3 | 0.4 |
Gross Profit | 29.7% | 29.1% | 29.6% | 29.9% | 29.6% | (0.3)% |
Margin | ||||||
SG&A Expenses | 41.7 | 41.3 | 42.6 | 46.3 | 48.1 | 1.7 |
Personnel | 24.6 | 25.1 | 25.2 | 26.4 | 27.8 | 1.4 |
Expenses | ||||||
Other Expenses | 17.0 | 16.2 | 17.4 | 19.9 | 20.2 | 0.2 |
Operating Income | 2.7 | 2.0 | 4.1 | 3.5 | 2.2 | (1.2) |
Operating | 1.8% | 1.4% | 2.6% | 2.1% | 1.3% | (0.8)% |
Margin | ||||||
Diff. | [Breakdown of YoY Change] | |||||||||||||||
(Target | ||||||||||||||||
/Actual)* | ||||||||||||||||
Increase in gross profit: ¥0.4 billion | ||||||||||||||||
0.9 | (1.1)* | |||||||||||||||
(0.8) | 3.5 | (2.6) | 0.3 | (0.6) | ||||||||||||
3.5 | ||||||||||||||||||
2.2 | ||||||||||||||||||
FY2022/12 | Lower | Effect of | Impact of | Other | Increased | Increased | FY2023/12 | |||||||||||
gross | price | soaring | personnel | SG&A | ||||||||||||||
profit | revisions | raw | expenses | expenses | ||||||||||||||
margin, | material | |||||||||||||||||
etc. | prices |
*Including figures of ISEKI Germany that became a consolidated subsidiary
(0.2) | [Effect of FOREX Fluctuations (JPY bn)] | |||
Net Sales | Cost of | SG&A | Operating | |
Sales | Expenses | Income | ||
(0.2)% | 3.1 | (2.2) | (0.6) | 0.3 |
* Difference from the forecast announced on 14th November 2023
Supplementary Information to Consolidated Financial Results | 8 |
Ordinary Income & Profit
Ordinary income
YoY
JPY1.6 billion
decrease
Ordinary income: Financial expenses rose due to increased interest-bearing liabilities, despite an increase in foreign exchange gains.
Income before income taxes: Absence of extraordinary items in the same period of the previous year (The impact of ISEKI Germany becoming a consolidated subsidiary; a gain on change in equity related to a Chinese associate accounted for using the equity method; and impairment losses)
(JPY bn) | FY2019/12 | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | YoY | Diff. |
(Target | |||||||
Change | |||||||
Actual | Actual | Actual | Actual | Actual | /Actual)* | ||
Operating Income | 2.7 | 2.0 | 4.1 | 3.5 | 2.2 | (1.2) | (0.2) |
Balance of Financial | (0.7) | (0.6) | (0.6) | (0.7) | (1.4) | (0.7) | |
Income | |||||||
Other Non-operating | (0.8) | 0.3 | 1.1 | 0.9 | 1.3 | 0.3 | |
Income | |||||||
Ordinary Income | 1.1 | 1.7 | 4.6 | 3.7 | 2.0 | (1.6) | (0.2) |
Extraordinary Income | 0.5 | 0.6 | 0.0 | 3.3 | 0.0 | (3.3) | |
Extraordinary Losses | (0.3) | (9.4) | (0.4) | (1.9) | (0.2) | 1.6 | |
Income Before Income | 1.3 | (7.1) | 4.3 | 5.2 | 1.9 | (3.3) | |
Taxes | |||||||
Income Taxes - | (0.5) | 1.4 | (1.1) | (1.1) | (1.8) | (0.7) | ||||||||
Deferred | ||||||||||||||
Profit (loss) Attributable | 0.7 | (5.6) | 3.1 | 4.1 | 0.0 | (4.0) | (0.4) | |||||||
to Owners of Parent | ||||||||||||||
* Difference from the forecast announced on 14th November 2023 |
[Main Components of Other Non-operating Income]
(JPY bn) | FY2022/12 | FY2023/12 |
Actual | Actual | |
Foreign exchange | 0.6 | 0.9 |
gains | ||
Share of loss of entities | (0.5) | (0.5) |
accounted for using | ||
equity method | ||
[Main Components of Extraordinary Income/Losses]
(JPY bn) | FY2022/12 | FY2023/12 |
Actual | Actual | |
Impact of ISEKI Germany | 0.7 | - |
becoming a consolidated | ||
subsidiary | ||
Gain on change in equity | 2.5 | - |
(Dongfeng ISEKI in China) | ||
Impairment loss | (1.7) | 0.0 |
Supplementary Information to Consolidated Financial Results | 9 |
Non-Consolidated Financial Results
Operating
income YoY
JPY0.0 billion
change
Operating income was at the same level as in the previous year partly due to price revisions, despite the continued impact of soaring raw material prices
FY2019/12 | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | YoY | |
(JPY bn, %) | ||||||
Actual | Actual | Actual | Actual | Actual | Change | |
Net Sales | 90.0 | 79.2 | 91.7 | 97.4 | 97.0 | (0.3) |
Domestic | 61.7 | 53.9 | 59.8 | 58.0 | 60.3 | 2.2 |
Overseas | 28.2 | 25.2 | 31.9 | 39.3 | 36.7 | (2.6) |
Gross Profit | 12.4 | 9.4 | 12.1 | 11.7 | 11.6 | (0.1) |
Gross Profit | 13.8% | 11.9% | 13.3% | 12.0% | 12.0% | 0.0% |
Margin | ||||||
SG&A Expenses | 11.4 | 10.7 | 11.3 | 12.5 | 12.4 | (0.1) |
Operating Income | 0.9 | (1.3) | 0.8 | (0.8) | (0.8) | 0.0 |
Ordinary Income | 2.2 | (0.2) | 3.8 | 1.2 | 1.1 | (0.1) |
Profit | 1.5 | (13.2) | 2.9 | (0.1) | 0.9 | 1.0 |
[Breakdown of YoY Change]
2.7 | (2.5) | (0.1) | (0.3) | |
(0.8) | (0.8) | |||||||||
FY2022/12 | Effect of | Impact of | Reduction | Other | ||||||
price | soaring raw | in SG&A | FY2023/12 | |||||||
revisions | material | expenses | ||||||||
prices |
Supplementary Information to Consolidated Financial Results | 10 |
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Iseki & Co. Ltd. published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 04:40:05 UTC.