ISEKI : Report 2023_A4_Full

ISEKI Report

2023

ISEKI & CO., LTD.

Corporate Philosophy (Purpose)	Purpose

ISEKI Group strives to contribute to sustainable society through "providing of services to the customers"

Long-term Vision	Vision

To be a "Solution Provider for Agriculture & Landscape"

Supporting a farming industry full of dreams and beautiful landscapes and creating a future of sustainable agriculture and landscape

Important Values	Value

Seven Promises

- To Contribute to the Creation the Prosperous and Sustainable Society -

1. Spirit · · · · · · · · · · · · · · · · · · · · Inheriting our company's founding philosophy, we always carefully consider food, agriculture and landscape and move forward with farmers.
2. Front runner· · · · · · As a front-runner, we produce innovative products and higher quality services.
3. Quality · · · · · · · · · · · · · · · We will always make premium quality products with passion.
4. Solution · · · · · · · · · · · · · · We constantly take action for solutions to customer issues.
5. Innovation · · · · · · · · · We create innovations with cutting-edge technologies and provide new value.
6. Global · · · · · · · · · · · · · · · · · · With a global perspective, we work toward solutions to the world's social issues.
7. Future · · · · · · · · · · · · · · · · · Paving the way for tomorrow, open up the future of food, agriculture and landscape.

the creation the prosperous and innovative products and higher quality

Spirit of ISEKI - Passion of founder -

"I want to free farmers from exhausting labor"

Agriculture was hard work, done by hand and with the help of animal power. To change this, Kunisaburo Iseki, the founder, realized laborsaving through mechanization and endeavored to further develop agriculture.

"We produce good machinery," Kunisaburo Iseki, the founder, used to say. He devoted himself to providing products that made customers happy. The founder's passion has been inherited in an unbroken line to this day as "ISEKI's spirit."

Company Motto

Our management philosophy is to provide:

1. Products that satisfy customers;
2. A stable workplace to the employees;
3. Appropriate dividend to the shareholders;

and thereby we will fulfil our social mission.

Key Points of ISEKI Report 2023

Key Point - 1

What kind of company is ISEKI?

Social issues that we have solved to date and business activities

Introduction (P5-11) / Business strategies (P27-57)

Key Point - 2

ISEKI Group's vision

Our long-term vision of being a "solution provider for agriculture and landscape" and our mid- to long-term strategies, measures, and materiality for achieving that vision

Message from our President (P13-18) / Value creation process (P19-20) /

Materiality (P21-22) / Mid-term Management Plan (P27-30)

Key Point - 3

Uniquely "ISEKI" initiatives

The strengths that ISEKI Group has cultivated to date and unique initiatives such as environmental management

ISEKI Group's strengths (P31-34) /

Strategies of R&D and intellectual property (P43-46, P51-52) /

Environmental initiatives (P54-57, P61-62)

Publication of ISEKI Report 2023

This report was produced as a Group-wide project led by young and mid-career employees. As the Director in charge of investor relations, with responsibility for this report's preparation, I affirm that this report was produced in good faith with the involvement of the management team and the cooperation of individual departments, and its content is accurate.

Director & Senior Corporate Officer

In charge of Personnel, Corporate Planning, and Public & Investor Relations

Deputy in charge of Compliance

Masayuki Fukami

About the front cover: The cover illustrates the concept of creating a future of sustainable agriculture and landscape through ISEKI Group's flagship "Japan series" machines and electric riding lawn mowers for the European market.

From the top: Combine harvester with straight-travel assist function, robot rice transplanter, robotic tractor, and electric riding lawn mower

3 ISEKI Report 2023

Contents

1. ······ Purpose, Vision, Value, Spirit and Company Motto of ISEKI

1. ······ Key Points of ISEKI Report 2023
2. ······ Contents/Editing policy

5 | Introduction

1. ······ History of solving social issues

1. ······ ISEKI Group

12 |	ISEKI Group's value creation aims
(What kind of value we create)

1. ······ Message from our President

1. ······ Value creation process

1. ······ Materiality

1. ······ Financial and capital strategies

26 |	Business strategies for value creation
(How we create value)

1. ······ Mid-term Management Plan (2021-2025)

1. ······ ISEKI Group's strengths

1. ······ Domestic Market Strategies (Domestic Business Company)

1. ······ Overseas Market Strategies (Overseas Business Company)

43 ······ Product/Development Strategies (Development and Production Company)

47 ······ Human resource strategies

• Maximizing ISEKI Group's human resource capability -

1. ······ Intellectual property strategies

1. ······ DX Promotion
2. ······ Response to climate change

1. ······ Initiatives for the realization of a decarbonized society

58 | Foundation for sustainable growth

(How we achieve sustainability)

1. ······ Sustainability in ISEKI Group
2. ······ Stakeholder engagement
3. ······ ISEKI Group's environmental management
4. ······ Mid- to long-term environmental targets and results
5. ······ Efforts to improve quality and customer satisfaction
6. • Establishing trust with customers -

1. ······ Supply chain management
2. ······ Communities - Co-existence with local communities -
3. ······ Independent Outside Directors roundtable discussion

1. ······ Corporate governance

1. ······ List of officers

1. ······ Risk management

1. ······ Compliance

81 | Financial and non-financial data

1. ······ Financial highlights
2. ······ Financial summary (consolidated)
3. ······ Non-financial highlights

84 | Company profile / Stock information

84 ······ Company profile / Stock information / Evaluation by third parties

Editing policy

This report presents both financial and non-financial information to introduce initiatives for improvement of the corporate value of ISEKI Group to a wide range of stakeholders including shareholders and investors in an easy-to-understand manner.

Covered period

From January 2022 through December 2022.

The report also includes some information from and after January 2023.

Scope

As a general rule, this report covers the activities of ISEKI & Co., Ltd. and ISEKI Group's associated companies in Japan and overseas. Notes will be added in this report when the range of activities and/or data is limited in certain part hereof.

Referenced guidelines

• International Integrated Reporting Council (IIRC) : "The International Integrated Reporting Framework"
• Ministry of Economy, Trade and Industry "Guidance for Collaborative Value Creation"
• GRI Standards
• ISO26000
• Ministry of the Environment, "Environmental Reporting Guidelines 2018"
• Ministry of the Environment, "Environmental Reporting Handbook-Environmental Reporting Guidelines 2018"

Communication map

ISEKI Group uses a variety of tools to communicate with its stakeholders, sharing a range of information.

We will continue our efforts toward constructive dialogue and the enhancement of information disclosure to ensure our stakeholders' understanding of the Group.

FinancialNon-financial

ISEKI Report (compilation of key information)

	• Mid-term Management Plan	• Corporate Governance Report
	presentation materials	• Sustainability website
	• Quarterly financial summaries	(includes ESG data)
	• Quarterly briefing presentation	• Product information
	materials
	• Securities reports

Corporate website

About forecasts, plans, and targets

Forward-looking statements contained in this report were prepared based on information available at the time of the preparation and involve potential risks and uncertainties. Actual results may differ from those expressed by the statements due to changes in economic conditions and market trends.

*Amounts and numbers of shares are rounded down to the unit.

ISEKI Report 2023 4