Iseki & Co., Ltd.TSE: 6310

Financial Results for the Fiscal Year Ended December 31, 2024 Investor Relations Presentation Materials

Mar 5, 2025 at 7:36 AM UTC · Issued by Iseki & Co., Ltd.

Financial Results for the Fiscal Year Ended December 31, 2024

Investor Relations Presentation Materials

February 17, 2025 ISEKI & CO., LTD.

Index

１．Outline of Financial Results for the Fiscal Year Ended December 31, 2024

・Outline of Consolidated Business Performance

・Domestic Sales

・Overseas Sales

・Operating Income

・Ordinary Income & Profit

・Non-Consolidated Financial Results

・Balance Sheet

・Interest-bearing Liabilities / Equity / Dividend

・Capital Investment, Depreciation and Research &

Development Expenses

・Cash Flows

２．Performance Forecast for the Fiscal Year Ending December 31, 2025

・Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025

・Domestic Sales Forecast

・Overseas Sales Forecast

・Main Factors for Changes in Operating Income Forecast

	３．Domestic and Overseas Markets
5	・Domestic Agricultural Machinery Market Trends	21
6	・Domestic Market Trends (Status of ISEKI)	22
7	・Overseas Market Trends	23-24
8	４．TOPICS
9	・Organizational Restructuring	26
10	・Introduction of Internal Carbon Pricing (ICP)	27
11	・Strengthen Information Dissemination	28
12	５．APPENDIX
13	・Company Outline	30
14	・Trends in Consolidated Financial Results	31-32
	・Outline of Products and Services	33
	・Breakdown of Net Sales by Product	34
16	・Breakdown of Net Sales by Overseas Region	35
17	・Principal Domestic Business and Manufacture Locations	36
18	・Main Sales Channels for ISEKI’s Products	37
19	・Overseas Manufacturing and Sales Sites	38
	・Global Expansion	39-41	2
	・Intellectual Property	42

Key Points

Both sales and profits were almost in line with the announced forecast despite lower sales and operating income year on year

[YoY change]

Overseas: Maintained high performance in Europe Lower sales in North America and Asia

Domestic:	Sales of agricultural machinery currently improving due in part to rising
	rice prices despite demand remaining sluggish
	Maintenance revenues grew, which are a pillar in reform of revenue and
	cost structure
Profits:	Decline in operating income due to higher SG&A expenses including
	effect of FOREX fluctuations
	Net loss due to impairment losses associated with structural reform

Both sales and operating income will increase year on year
Net sales:	Overseas, high performance will be maintained in Europe, sales will
	increase in North America and Asia
	Domestic, sales will increase by concentrating management resources
	in the growth areas and strengthening sales
Profits:	Operating income will increase due to higher sales and partial effect of
	Project Z, but profit growth will be limited due to temporary expenses

Trends in Net Sales

(JPY bn, %)

149.3	158.1	166.6	169.9	168.4	170.5


									Domestic
22.4% 25.8%	32.4%	33.5%	32.9% 33.4%	Overseas

FY2020/12 FY2021/12 FY2022/12 FY2023/12 FY2024/12 FY2025/12
							(Forecast)
Operating Income, Ratio
(JPY bn, %)
1.4%	2.6%		2.1%	1.3%	1.1%	1.5%

2.0	4.1		3.5	2.2		1.9	2.6

FY2020/12	FY2021/12	FY2022/12	FY2023/12	FY2024/12	FY2025/12
								(Forecast)

１. Outline of Financial Results for the Fiscal Year Ended December 31, 2024

Outline of Consolidated Business Performance

	(JPY bn,%)		FY2020/12	FY2021/12	FY2022/12	FY2023/12	FY2024/12
								Diff.
	(January 1, 2024	Actual	Actual	Actual	Actual	Actual	YoY Change
to December 31, 2024)	(Target
									/Actual)*
	Net Sales	149.3	158.1	166.6	169.9	168.4	(1.4)	(1.5)
	(Domestic)	115.9	117.3	112.6	113.0	113.0	(0.0)	(1.9)
	(Overseas)	33.3	40.7	53.9	56.8	55.3	(1.4)	0.3
	Gross Profit	43.4	46.8	49.8	50.3	50.6	0.2
	Margin		29.1%	29.6%	29.9%	29.6%	30.1%	0.5%
	Gross Profit
Operating Income	2.0	4.1	3.5	2.2	1.9	(0.3)	(0.0)
	Operating	1.4%	2.6%	2.1%	1.3%	1.1%	(0.2)%	(0.0)%
	Margin
Ordinary Income	1.7	4.6	3.7	2.0	1.5	(0.5)	0.5
Profit (Loss) Attributable	（5.6）	3.1	4.1	0.0	(3.0)	(3.0)	0.0
to Owners of Parent

Average	US$	107.0	109.0	131.3	139.4	151.0	11.5	0.6
Exchange	Euro	121.5	129.8	136.9	148.6	162.5	13.9	(0.1)
Rate (JPY)
							※Difference from the forecast announced on 18th July 2024	5
							(The average exchange rate is being reviewed on November 14)

Domestic Sales

FY2020/12

FY2021/12

FY2022/12

FY2023/12

FY2024/12

	(JPY bn)						YoY	Diff.
			Actual	Actual	Actual	Actual	Actual	(Target/
			Change
								Actual)

	MachineryAgricultural	Cultivating &	22.8	23.9	22.9	22.0	21.2	(0.8)
RelatedMachinery	Mowing
Machinery

		Planting	8.8	9.0	7.9	7.2	6.5	(0.6)
		Machinery
		Harvesting &	16.8	16.6	16.0	15.7	16.3	0.6
		Processing
		Machinery
		Subtotal	48.6	49.6	46.9	45.0	44.1	(0.8)	(1.8)
Agricultural		Farming	20.4	22.0	20.5	20.4	21.0	0.6	0.0
	Implements
	Spare Parts	15.6	15.3	15.6	16.0	16.9	0.9	0.5

		Repair Fees	5.8	5.9	5.8	6.0	6.2	0.2	(0.0)
		Subtotal	42.0	43.3	42.0	42.5	44.2	1.7	0.5
		Total	90.6	93.0	88.9	87.5	88.4	0.8	(1.2)
Construction of Facilities	6.1	4.2	4.3	5.5	4.1	(1.3)	(1.1)
Others		19.1	20.1	19.3	19.9	20.4	0.4	0.4
		Total	115.9	117.3	112.6	113.0	113.0	(0.0)	(1.9)

Main factors of YoY changes

・Sales of agricultural machinery currently improving due in part to rising rice prices despite demand remaining sluggish

・Maintenance revenues grew, which are a pillar in reform of revenue and cost structure

Agricultural machinery:

Slight decrease for full-year despite a decrease in 1Q due to weak demand Since mid-year, rising rice prices partially offset the decrease in sales

Farming implements/spare parts/repair fees: (Maintenance revenues)

Sales continue to increase

Construction of facilities:

Sales declined due to absence of large facility projects in the period

Overseas Sales

(JPY bn, %)

FY2020/12

Actual

FY2021/12

Actual

FY2022/12

Actual

FY2023/12

Actual

FY2024/12

Actual

YoY

Change

Diff.

(Target/

Actual)

Main factors of YoY changes

・Maintained high performance in Europe

North	12.8	15.1	19.5	14.2	11.2	(3.0)	(4.7)
America

Europe	13.9	15.9	25.1	33.2	38.5	5.2	6.5

Asia	6.2	9.1	8.6	8.1	4.9	(3.1)	(1.4)

Others	0.3	0.5	0.6	1.1	0.5	(0.5)	(0.0)

Total sales	33.3	40.7	53.9	56.8	55.3	(1.4)	0.3

Overseas	22.4%	25.8%	32.4%	33.5%	32.9%	(0.6)%	0.4%
sales ratio

・Sales declined in North America and Asia

North America:

Compact tractors market was weak

Europe:

Sales of landscaping products were strong

Sales of purchased products (electric products) increased significantly

Asia:

Weakening demand in ASEAN Inventories were adjusted in Korea

Operating Income

Gross profit increased due to price revision effect, despite the impact of lower sales and production
SG&A expenses increased due to foreign currency translation effects

[Breakdown of YoY Change (JPY bn)]

	FY2023/12	FY2024/12	YoY
(JPY bn, %)

Increase in gross profit: ¥0.2 billion

	Actual	Actual	Change

Net Sales	169.9	168.4	(1.4)
Gross Profit	50.3	50.6	0.2
Gross Profit	29.6%	30.1%	0.5%
Margin

SG&A Expenses	48.1	48.7	0.6

(1.9)

2.2

Volume/Mix

FY2023/ (Japan +

12 overseas)

(0.1) 1.8

Production Price Costs

0.9 (0.4) (0.6)

			1.9
Effect of	Other	SG&A	FY2024/12
FOREX	(gross	(FOREX
Fluctuations	profit)	(0.4))
(gross profit)

Personnel	27.8	27.6	(0.2)
Expenses

[Effect of FOREX Fluctuations

Results of soaring raw material prices and price revisions (compared to 2020)

Other	20.2	21.0	0.8
Expenses

Operating Income	2.2	1.9	(0.3)
Operating	1.3%	1.1%	(0.2)%
Margin

(impact of income/losses, JPY bn)]

Net Sales	Cost of	SG&A	Operating
Sales	Expenses	Income

2.5	(1.6)	(0.4)	0.4

(0.1)	(6.4)
	(6.3)
	Production
	Costs

6.9

1.8

5.1

Price

2024

2021

2023

Ordinary Income & Profit

Net loss as extraordinary losses associated with Project Z structural reforms were recognized

FY2020/12	FY2021/12	FY2022/12	FY2023/12	FY2024/12	YoY
(JPY bn)
				Change
Actual	Actual	Actual	Actual	Actual

Operating Income	2.0	4.1	3.5	2.2	1.9	(0.3)
Balance of Financial	(0.6)	(0.6)	(0.7)	(1.4)	(1.4)	0.0
Income

Balance of other Non-	0.3	1.1	0.9	1.3	1.0	(0.2)
Operating Income

Ordinary Income	1.7	4.6	3.7	2.0	1.5	(0.5)
Extraordinary Income	0.6	0.0	3.3	0.0	0.1	0.0
Extraordinary Losses	(9.4)	(0.4)	(1.9)	(0.2)	(3.2)	(2.9)
Income Before	(7.1)	4.3	5.2	1.9	(1.5)	(3.4)
Income Taxes

Income Taxes-	1.4	(1.1)	(1.1)	(1.8)	(1.4)	0.3
Deferred

Profit (loss) Attributable to	(5.6)	3.1	4.1	0.0	(3.0)	(3.0)
Owners of Parent

[Main Components of Other Non-operating Income]

(JPY bn)	FY2023/12	FY2024/12
Actual	Actual

Foreign exchange	0.9	0.7
gains


Share of loss of
entities accounted	(0.5)	(0.8)
for using equity

method

[Main Components of Extraordinary Income/Losses]

(JPY bn)	FY2023/12	FY2024/12
Actual	Actual

Impairment losses
on non-current	(0.0)	(2.3)
assets

Business structural*	ー	(0.6)
reforms expenses

*Extra retirement payments and other expenses, and expenses associated with discontinuation of production at ISEKI M&D (Kumamoto) Co., Ltd.

Non-Consolidated Financial Results

Lower sales in Japan and overseas due to restrained production and shipments in order to reduce inventory
Dividend income increased (special dividends from sales subsidiaries: press release dated November 14, 2024)

(JPY bn, %)	FY2023/12	FY2024/12	YoY Change
Actual	Actual

Net Sales	97.0	86.2	(10.7)
Domestic	60.3	55.5	(4.8)
Overseas	36.7	30.7	(5.9)

Gross Profit	11.6	10.5	(1.0)
Gross Profit Margin	12.0%	12.3%	0.3%

SG&A Expenses	12.4	12.2	(0.1)

Operating Income	(0.8)	(1.6)	(0.8)

Non-operating Income	1.9	10.4	8.4

Ordinary Income	1.1	8.7	7.5

Extraordinary	0.0	(4.2)	(4.1)
Income/Losses

Profit Before Income	1.1	4.5	3.4
Taxes

Profit	0.9	4.3	3.3

[Breakdown of YoY Change

(YoY impact of income/losses: JPY bn)]

Other non-operating income

Dividend income

+8.5

Of which special dividends 8.0

Extraordinary income/losses

Impairment losses on	(0.4)
non-current assets

Loss on valuation of	(3.2)
shares of subsidiaries
and associates

Company analysis