Iseki : Financial Results for the Fiscal Year Ended December 31, 2021 Investor Relations Presentation Materials(PDF2343KB)

Financial Results for

the Fiscal Year Ended December 31, 2021

ISEKI & CO., LTD.

February 17, 2022

Index

1. Outline of Financial Results for the Fiscal Year Ended December 31, 2021
2. Domestic and Overseas Markets
3. Performance Forecast for the Fiscal Year Ending December 31, 2022
4. Progress of Mid-term Management Plan

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1. Outline of Financial Results for the Fiscal Year Ended December 31, 2021

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Key Points

Increase in both sales & profits

Almost in line with the forecast

Domestic ： Recovery from the reactionary decline after the consumption tax hike Demand stimulated by government subsidies for agricultural business continuity and a drop

Overseas ： Overseas sales reached a record high

A shortage of shipping containers for North America & Europe led to unfulfilled shipments and expansions of backorders

Profits ： Increase in gross profit thanks to higher sales

However, soaring raw material prices put pressure on earnings

Increase in net sales & operating income

Year-end dividend:30 yen per share

Net Sales ： Increase from the previous fiscal year, mainly due to overseas sales

Profits ： Increase in gross profit due to higher sales due to our structural reforms and efforts to improve management efficiency, in spite of pressure on earnings due to the sharp rise in raw material prices

Net Sales (Full-year)

(JPY bn, %)

155.9 149.8 149.3 158.1 166.5

Domestic

		21.3%		21.5%	22.4%	25.8%		28.5%			Overseas
		FY2018/12	FY2019/12	FY2020/12	FY2021/12	FY2022/12
									Forecast
	Operating Income/Ratio (Full-year)
(JPY bn, %)
			2.0%		1.8%		2.6%		2.8%
	6			1.4%				3
					4.7
	5						4.1				1
	4		3.1									-
				2.7
	3				2.0						-
	2										-
	1											-
	0							-
	FY2018/12	FY2019/12 FY2020/12 FY2021/12	FY2022/12
									Forecast

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Business Environment

Domestic

North

America

Europe

Overseas

Asia

	FY Ended Dec. 2020		FY Ended Dec. 2021
	Reactionary decline after consumption tax hike		Recovery from post-consumption tax hike reactionary decline
	Restraint on sales activities due to COVID-19		Impact of restraint on sales activities due to COVID-19 eased
			compared to the previous year
		 Demand stimulated by government subsidies for agricultural business
			continuity, and a rebound
		 Decreased willingness to buy due to falling rice prices
	Robust demand resulting from stay-at-home demand		Increased demand due to lifestyle changes
	Delays in delivery of parts led to a decrease in shipments		A shortage of shipping containers led to unfulfilled shipments and
	(temporary factor)		expansions of backorders.
	Sales affected by the lockdown in the spring season,		Robust demand for consumer products newly generated owing to
	but showed recovery from the second half.		lifestyle changes
		 Sales activities gradually returned to normal thanks to progress in
			vaccination & reduction of the newly infected.
			=> Professional market demand gradually recovered.
	China		China
	Demand for agricultural machinery stimulated by government policies		Steady strong market due to continued government policies to secure
	to secure food and travel restrictions		food & stabilize grain prices.
	ASEAN (Thailand)		ASEAN (Thailand)
	- Drought affected farmers' household income & agricultural machinery		Robust demand due to the government's measures & subsidies
	demand.		to stimulate the market demand
	- Rainfall has generally recovered since Sep.		South Korea
	South Korea
		Demand for large agricultural machinery continued
	Demand for large agricultural machinery continued		Taiwan
	Taiwan
		A pullback effect with the withdrawal of subsidies
	Increased demand due to subsidies for large agricultural machinery

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