［Delayed］Supplementary Information to
Consolidated Financial Results
(January 1, 2024 – December 31, 2024)
ISEKI & CO., LTD.
February 14, 2025
Index
１．Outline of Financial Results for the Fiscal Year Ended December 31, 2024
２．Performance Forecast for the Fiscal Year Ending December 31, 2025
2
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) |
3
１. Outline of Financial Results for the Fiscal Year Ended December 31, 2024
4
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
6
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
7
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
to
2023
8
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.
9
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 |
10