Supplementary Information to Consolidated Financial Results
(January 1, 2024－September 30, 2024)
ISEKI & CO., LTD.
November 14, 2024
Index
１．Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2024
２．Performance Forecast for the Fiscal Year Ending December 31, 2024
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１. Outline of Financial Results for the Third Quarter Fiscal Year Ending December 31, 2024
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Key Points
Maintained high performance in Europe despite lower sales and operating income Domestic agricultural machinery on a recovery track
Overseas: Maintained high performance in Europe Lower sales in North America and Asia
Domestic: Sales of agricultural machinery and construction of facilities decreased
Agricultural machinery currently on a recovery track
Earnings: Decline in operating income due to lower sales and production Bottom line in the red due to impairment losses recorded in 2Q
No revision to forecast announced on July 18
Trends in 3Q Net Sales
(JPY bn, %)
111.6 123.4 | 125.3 | 132.9 128.5 | |||||
Domestic | |||||||
21.7％ 26.3％ | 32.1％ | 34.9％ 35.0％ | Overseas | ||||
FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | |||
3Q | 3Q | 3Q | 3Q | 3Q | |||
3Q Operating Income, Ratio | |||||||
(JPY bn, %) | |||||||
4.7% | |||||||
2.8% | 2.5% | 2.7% | 2.4% | ||||
3.1 | 5.8 | 3.1 | 3.6 | 3.1 | |||
FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | |||
3Q | 3Q | 3Q | 3Q | 3Q | |||
4 |
Outline of Consolidated Business Performance
(JPY bn,%) | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | FY2024/12 | |
(January 1, 2024 | 3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | YoY Change |
to June 30, 2024) | ||||||
Net Sales | 111.6 | 123.4 | 125.3 | 132.9 | 128.5 | (4.3) |
87.4 | 90.9 | 85.0 | 86.5 | |||
(Domestic) | 83.6 | (2.8) | ||||
(Overseas) | 24.1 | 32.4 | 40.2 | 46.4 | 44.9 | (1.5) |
Gross Profit | 33.1 | 37.2 | 37.2 | 39.8 | 38.8 | (0.9) |
29.7% | 30.1% | 29.7% | 30.0% | |||
Gross Profit Margin | 30.3% | 0.3% | ||||
Operating Income | 3.1 | 5.8 | 3.1 | 3.6 | 3.1 | (0.5) |
Operating Margin | 2.8% | 4.7% | 2.5% | 2.7% | 2.4% | (0.3)% |
Ordinary Income | 2.8 | 6.5 | 3.8 | 3.8 | 2.9 | (0.9) |
Owners of Parent | 2.4 | 4.7 | 3.4 | 2.0 | (0.5) | (2.6) |
Profit (Loss) Attributable to | ||||||
Average | US$ |
Exchange | Euro |
Rate (JPY) |
107.8
120.6
107.8
129.6
124.9
133.9
136.4
147.1
151.4
162.6
15.0
15.4
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Domestic Sales
FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | FY2024/12 | YoY | ||||
(JPY bn) | |||||||||
3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | Change | ||||
MachineryAgricultural | Cultivating & | 17.3 | 18.8 | 18.1 | 17.0 | 16.0 | (0.9) | ||
RelatedMachinery | Mowing | ||||||||
Machinery | |||||||||
Planting | 6.4 | 7.2 | 6.5 | 5.9 | 5.1 | (0.7) | |||
Machinery | |||||||||
Harvesting & | 11.9 | 11.7 | 11.4 | 11.3 | 11.1 | (0.2) | |||
Processing | |||||||||
Machinery | |||||||||
Subtotal | 35.7 | 37.8 | 36.1 | 34.4 | 32.3 | (2.0) | |||
Agricultural | Farming | 15.2 | 17.9 | 15.2 | 15.4 | 15.7 | 0.3 | ||
Implements | |||||||||
Spare Parts | 11.9 | 11.8 | 11.9 | 12.3 | 12.7 | 0.3 | |||
Repair Fees | 4.4 | 4.5 | 4.4 | 4.5 | 4.6 | 0.0 | |||
Subtotal | 31.6 | 34.3 | 31.6 | 32.3 | 33.1 | 0.8 | |||
Total | 67.4 | 72.1 | 67.7 | 66.7 | 65.5 | (1.2) | |||
Construction of Facilities | 5.6 | 3.6 | 3.2 | 4.8 | 2.8 | (2.0) | |||
Others | 14.3 | 15.1 | 14.0 | 14.8 | 15.3 | 0.4 | |||
Total | 87.4 | 90.9 | 85.0 | 86.5 | 83.6 | (2.8) |
Main factors of YoY changes
- Lower sales in agricultural machinery and construction of facilities
- Currently on a recovery track in agricultural machinery
Agricultural machinery:
The YoY increase since April could not offset the decrease in 1Q
Farming implements/spare parts/repair fees:
Sales continued to increase
Construction of facilities:
Sales declined due to the absence of large facility projects in the period
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Overseas Sales
(JPY bn, %) | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | FY2024/12 | YoY Change |
3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | ||
North | 9.2 | 11.3 | 13.1 | 10.7 | 9.1 | (1.6) |
America | ||||||
Europe | 9.2 | 13.3 | 19.8 | 27.6 | 31.2 | 3.5 |
Asia | 5.4 | 7.3 | 6.7 | 7.0 | 4.0 | (2.9) |
Others | 0.2 | 0.3 | 0.5 | 1.0 | 0.5 | (0.4) |
Total sales | 24.1 | 32.4 | 40.2 | 46.4 | 44.9 | (1.5) |
Main factors of YoY changes
- Maintained high performance in Europe Sales declined in North America and Asia
North America:
Compact tractors market remained weak
Europe:
Sales of landscaping products and purchased products were strong
Asia:
Overseas sales ratio
21.7%
26.3%
32.1%
34.9%
35.0% |
0.1%
Weakening demand in ASEAN and Korea led to a decline in orders
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Operating Income
- Gross profit decreased (lower sales and production in Japan and overseas)
- SG&A expenses decreased
[Breakdown of YoY Change (JPY bn)]
FY2023/12 | FY2024/12 |
(JPY bn, %) | YoY Change |
3Q Actual | 3Q Actual |
Net Sales | 132.9 | 128.5 | (4.3) |
Gross Profit | 39.8 | 38.8 | (0.9) |
Gross Profit Margin | 30.0% | 30.3% | 0.3% |
SG&A Expenses | 36.2 | 35.7 | (0.4) |
Personnel | 20.6 | 20.2 | (0.3) |
Expenses | |||
Other Expenses | 15.6 | 15.5 | (0.1) |
Operating Income | 3.6 | 3.1 | (0.5) |
Operating Margin | 2.7% | 2.4% | (0.3)% |
Decrease in gross profit: ¥0.9 billion
(2.4) (0.1) 1.8 0.2 (0.4) 0.4
3.6 | ||||||||||||||||||||||||||||||||
3.1 | ||||||||||||||||||||||||||||||||
FY2023/12 | Volume/ Mix | Production | Price | Effect of | Other | SG&A | FY2024/12 | |||||||||||||||||||||||||
(Japan + | Costs | FOREX | (gross profit) | |||||||||||||||||||||||||||||
3Q | oversea) | Fluctuations | 3Q |
(gross profit)
[Effect of FOREX Fluctuations (JPY bn)]
Net Sales | Cost of | SG&A | Operating |
Sales | Expenses | Income | |
1.0 | (0.8) | (0.0) | 0.2 |
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Ordinary Income & Profit
- As impairment losses associated with Project Z structural reforms were recognized, the profit lines below income before income taxes decreased to a larger extent than operating income
(JPY bn) | FY2020/12 | FY2021/12 | FY2022/12 | FY2023/12 | FY2024/12 | YoY |
3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | 3Q Actual | Change | |
Operating Income | 3.1 | 5.8 | 3.1 | 3.6 | 3.1 | (0.5) |
Balance of Financial | (0.5) | (0.4) | (0.5) | (1.1) | (1.0) | 0.1 |
Income | ||||||
Balance of other Non- | 0.1 | 1.1 | 1.2 | 1.4 | 0.8 | (0.5) |
Operating Income | ||||||
Ordinary Income | 2.8 | 6.5 | 3.8 | 3.8 | 2.9 | (0.9) |
Extraordinary Income | 0.6 | 0.0 | 0.8 | 0.0 | 0.0 | 0.0 |
Extraordinary Losses | 0.0 | (0.2) | (0.2) | (0.1) | (2.3) | (2.2) |
Income Before Income | 3.4 | 6.3 | 4.4 | 3.7 | 0.6 | (3.1) |
Taxes | ||||||
Income Taxes - | (1.0) | (1.5) | (0.9) | (1.6) | (1.1) | 0.5 |
Deferred | ||||||
Profit (loss) Attributable | 2.4 | 4.7 | 3.4 | 2.0 | (0.5) | (2.6) |
to Owners of Parent |
Breakdown of YoY change in balance of other non-operating income (JPY bn)
Foreign exchange gains | (0.6) |
Breakdown of YoY change in extraordinary | |
income/losses | (JPY bn) |
Impairment losses on | (2.2) |
non-current assets | |
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Balance Sheet
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Inventories decreased both YoY and from the end of the previous fiscal year
Property, plant and equipment decreased due to the recording of impairment losses associated with structural reforms
(JPY bn) | As of Sep. | As of Dec. | As of Sep. | YoY | Change | As of Sep. | As of Dec. | As of Sep. | YoY | Change |
from Dec. | from Dec. | |||||||||
30, 2023 | 31, 2023 | 30, 2024 | Change | 30, 2023 | 31, 2023 | 30, 2024 | Change | |||
31, 2023 | 31, 2023 | |||||||||
Cash & Deposits | 9.3 | 9.9 | 7.6 | (1.7) | (2.2) | TradeAccounts Payable – | 43.3 | 41.7 | 23.3 | (19.9) | (18.4) |
Accounts Receivable | 37.9 | 26.9 | 35.0 | (2.9) | 8.1 | Interest-bearing | 81.5 | 76.9 | 84.7 | 3.2 | 7.8 |
– Trade | Liabilities | ||||||||||
Inventories | 71.8 | 72.8 | 68.0 | (3.8) | (4.8) | (Loans Payable) | 74.4 | 69.8 | 77.1 | 2.6 | 7.3 |
Other Current Assets | 4.0 | 5.6 | 3.7 | (0.2) | (1.9) | Other Liabilities | 21.5 | 24.2 | 31.8 | 10.3 | 7.6 |
Total Current Assets | 123.2 | 115.3 | 114.4 | (8.7) | (0.8) | Total Liabilities | 146.3 | 142.8 | 139.9 | (6.3) | (2.9) |
Property, Plant and | 84.5 | 84.5 | 81.4 | (3.0) | (3.1) | ||||||
Equipment | Net Assets | 76.0 | 74.2 | 74.1 | (1.9) | (0.0) | |||||
Intangible Assets | 2.3 | 2.4 | 2.6 | 0.2 | 0.1 | ||||||
Investments and | 12.2 | 14.7 | 15.5 | 3.2 | 0.7 | (Retained Earnings) | 22.5 | 20.4 | 19.4 | (3.0) | (1.0) |
Other Assets | |||||||||||
Total Non-current | 99.1 | 101.7 | 99.6 | 0.4 | (2.1) | ||||||
Assets | |||||||||||
Total Assets | 222.4 | 217.1 | 214.1 | (8.3) | (2.9) | Total Liabilities and | 222.4 | 217.1 | 214.1 | (8.3) | (2.9) |
Net Assets | |||||||||||
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