Iseki : Financial Results for the First Quarter Fiscal Year Ending December 31, 2022 Investor Relations Presentation Materials

Financial Results for the First Quarter

Fiscal Year Ending December 31, 2022

Investor Relations Presentation Materials

ISEKI & CO., LTD.

May 13, 2022

INDEX

1. Outline of Financial Results for the First Quarter Fiscal Year Ending December 31, 2022
2. Domestic and Overseas Markets
3. Performance Forecast for the Fiscal Year Ending December 31, 2022
4. Topics

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2022

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1. Outline of Financial Results for the First Quarter Fiscal Year Ending December 31, 2022

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2022

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Key Points

Strong sales overseas, but domestic sales decreased due to the impact of a pullback effect with withdrawal of subsidies and falling rice prices.

Domestic: Pullback effect with withdrawal of government subsidies for business continuity, etc., which had stimulated demand in the same period of the previous year.

Decrease in purchasing power due to falling rice prices

Overseas: Sales increase in all regions

Strong sales in North America and Europe due to lifestyle changes

Earnings: Decrease in gross profit due to lower sales Soaring raw material prices put pressure on earnings

Maintained profitability below ordinary income, despite the usual deficit in the first quarter due to a period of low demand.

1Q Net Sales

(JPY bn, %)		40.4	38.7
36.8	33.3	31.9
							Domestic
22.9% 23.8% 21.6% 30.2%	41.4	% Overseas
FY2018	FY2019	FY2020	FY2021	FY2022
1Q	1Q	1Q	1Q		1Q

1Q Operating Income, Ratio

(JPY bn, %)

1.4

<> Forecast>

(0.5) (0.7) (1.1) [Operating Margin]

(0.2)

No revision to the initial forecast

(1.6)% (2.2)% (3.5)% 3.7% (0.6)%

FY2018	FY2019	FY2020	FY2021	FY2022
1Q	1Q	1Q	1Q	1Q

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2022	4

Market & Business Environments in the First Quarter

[Legend]  = Market environment

 = Business environment

Market & Business Environments

• Continued spread of COVID-19

• Supply chain disruption (shortage of containers for marine transportation, delayed procurement of parts for production)
• Soaring raw material prices
• Impact on sales activities, including exhibition cancellations
• Pullback effect with withdrawal of government subsidies for business continuity, which had stimulated demand in the same period of the previous year.
• Increased demand due to lifestyle changes in North America and Europe

• Falling domestic rice prices (March 2020: ¥14,740/60kg ⇒ March 2021: ¥12,777/60kg)*1

		 Decrease in farmers' willingness to buy

• Russia's invasion of Ukraine

		 Sales: No direct impact as we do not conduct sales activities in this region.
		Purchasing: Supply chain disruption, concern that raw material prices will soar further

 Yen depreciation

		 Minor impact on operating income

*1 Relative trading price (average of all grades) Source: Monthly Report on Rice, Ministry of Agriculture, Forestry and Fisheries

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 31, 2022	5