Tadano : Consolidated Financial Results(Comprehensive) For First Quarter of FY 2021

Consolidated Financial Results(Comprehensive) For First Quarter of FY 2021

(April 1, 2021 through June 30, 2021)

Notes:

1. Tadano Ltd. provides this comprehensive financial results report in order to supplement the previously released quantitative report with qualitative information concerning business results for the period under review. Unless otherwise stated, no amendments have been made to the quantitative information herein.

August 3, 2021

Tadano Ltd.

< Notes >

• Forward-lookingstatements contained in this report are based on information available as of the date this report was prepared. A variety of factors may cause actual results to differ from projections.
• Adjustments are made retroactively on FY2020 1Q Consolidated Financial Statements due to PPA accompanied with acquisition of Demag business. PPA("Purchase Price Allocation") is a process to appraise assets and liabilities at fair value and allocate purchase price.

1

Income Statement

 While net sales were comparable to same period of previous fiscal year, operating income increased due to an improved cost of sales ratio and reductions in SG&A.

 First quarterly operating profit recorded since FY 2019 4Q.

 Profits related to restructuring of European Operations were recorded as extraordinary gains.

(Unit: millions of yen)

	FY2020	FY2021	Increase/
	1Q		1Q
			Decrease
	Amount	Percentage	Amount	Percentage
Net sales	43,213	100%	42,306	100%	-906
Cost of sales	33,871	78.4%	32,353	76.5%	-1,518
Gross profit on installment sales	-15	-0.0%	-	-	15
Gross profit	9,325	21.6%	9,953	23.5%	627
Selling, general, and	9,924	23.0%	9,161	21.7%	-762
administrative expenses
Operating income	-598	-1.4%	791	1.9%	1,389
Non-operating income and loss	-227	-0.5%	-55	-0.1%	171
Ordinary income	-825	-1.9%	735	1.7%	1,561
Extraordinary income and loss	101	0.2%	10,850	25.6%	10,748
Income before income taxes	-723	-1.7%	11,586	27.4%	12,309
Corporate taxes	306	0.7%	916	2.2%	610
Net income attributable to	-5	-0.0%	18	0.0%	23
noncontrolling interests
Net income attributable to	-1,024	-2.4%	10,651	25.2%	11,676
owners of the parent
					2

Major Factors Leading to Change in Operating Income

• Despite decrease in sales volume, operating income increased by ¥1.3 billion due to improvements in sales prices and expense reductions, among other factors.

• Millions of yen ) 3,000

2,000

1,000																					789	791
0		-598														2,500
					-2,000
-1,000
-2,000									400		-300
-3,000
		FY2020	Volume	Sales Prices	Foreign	Expenses		Other		FY2021
		1Q									Exchange									1Q

3

Balance Sheet

• Inventories increased due to a ramp up in production.
• Interest-bearingdebt denominated in currencies other than Japanese yen increased in response to temporary working capital needs in North America and Europe.
• Allowances for retirement benefits decreased due to restructuring procedures for European
  Operations.(Unit: millions of yen)

		FY2020	FY2021	Increase/			FY2020	FY2021	Increase/
		Year-end	1Q	Decrease			Year-end	1Q	Decrease
Cash deposits	103,110	103,212	102			Accounts payable	32,043	26,799	-5,243
Accounts receivable	48,774	41,581	-7,192			Interest-bearing debt	94,586	102,543	7,956
Inventories	82,010	88,477	6,467			Other liabilities	51,885	39,725	-12,160
Other current assets	5,254	9,103	3,848			Total liabilities	178,515	169,068	-9,447
							Total equity	145,404	157,318	11,914
Total current assets	239,149	242,374	3,225
Total liabilities	323,920	326,387	2,467
Tangible fixed assets	68,046	67,739	-307			and equity
Intangible fixed assets	1,692	1,763	71
Investment	and	15,031	14,508	-522				FY2020	FY2020	FY2021
other assets
							1Q	Year-end	1Q
Total fixed assets	84,770	84,012	-758
Total assets	323,920	326,387	2,467			Receivable turnover	94.0 days	95.7 days	89.4 days
							Inventory turnover	225.8 days	160.9 days	190.3 days
							Equity ratio	50.9%	44.5%	47.8%

4

Net Sales by Product

• Mobile crane sales increased in Japan, but decreased outside of Japan.
• Truck loader crane and aerial work platform sales increased.

			(Unit: millions of yen)
	FY2020	FY2021	Increase/Decrease
	1Q	1Q	Amount	Percentage
Mobile Cranes	26,567	23,727	-2,840	-10.7%
Truck Loader	4,273	4,868	595	13.9%
Cranes
Aerial Work	3,147	3,647	500	15.9%
Platforms
Other	9,224	10,062	837	9.1%
Total	43,213	42,306	-906	-2.1%
Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan	5,913	7,750	1,837	31.1%
Outside Japan	20,653	15,976	-4,677	-22.6%
Total	26,567	23,727	-2,840	-10.7%
Exchange Rate	* Since the fiscal year	for subsidiaries outside Japan ends in December,
the rates given here are January-March average.
USD	¥108.92	¥105.90
EUR	¥120.11	¥127.69

Net Sales by Product

（Millions of Yen）

250,000

200,000

150,000

100,000

50,000

0

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20	FY20 FY21
Mobile Cranes		Truck Loader Cranes	1Q 1Q
Aerial Work Platforms		Other

5

Net Sales by Destination

• Sales in Europe, North America and Latin America decreased.
• Within the "Other" category, sales in Oceania increased.

	FY2020
	1Q
Europe	8,457
North America	9,865
Latin America	1,799
Asia	2,836
Middle East	1,353
Other	1,829
Subtotal	26,141
(total outside Japan sales)
Japan	17,071
Total	43,213
Outside Japan	60.5%
Sales Ratio

FY2021

1Q

4,816

8,450

160

2,920

1,611

3,851

21,811

20,494

42,306

51.6%

(Unit: millions of yen)

Increase/Decrease Amount Percentage

-3,640-43.0%

-1,415-14.3%

-1,638-91.1%

1. 2.9%

1. 19.1%

2,022 110.5%

-4,330-16.6%

3,423 20.1%

-906-2.1%

（Millions of yen）	Net Sales by Destination

140,000

120,000
100,000
80,000
60,000
40,000
20,000
0
	FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20	FY20 FY21
		Europe		North America	1Q	1Q
		Latin America		Asia
		Middle East		Other
		Outside Japan Sales ratio

The graph above excludes Japan.

"Other" is comprised of Oceania, Africa and the CIS.

70%

60%

50%

40%

30%

20%

10%

0%

6

7

FY 2021 First Half Business Performance Forecast

							(Unit: millions of yen)
	FY2020	FY2021	FY2021
	First Half Forecast	First Half Forecast	Increase/Decrease
	First Half
	(as of April 28th)	(as of July 30th)
	Amount	Percentage	Amount	Percentage	Amount	Percentage	Amount	Percentage
Net sales	91,106	100%	100,000	100%	100,000	100%	－	－
Operating income	-1,038	-1.1%	500	0.5%	1,500	1.5%	1,000	200.0%
Ordinary income	-1,590	-1.7%	100	0.1%	1,200	1.2%	1,100	－
Net income attributable to	-2,566	-2.8%	9,000	9.0%	10,400	10.4%	1,400	15.6%
owners of the parent

Although net sales for the first quarter progressed in line with the initial April, 28, 2021 forecast, improvements in the cost of sales ratio and reductions in SG&A expenses were better than forecast. Therefore, the FY 2021 first half forecast has been revised as listed above. The forecast for the full year remains unchanged from the announced forecast.

8

FY 2021 First Half Forecast (Net Sales by Product)

(Unit: millions of yen)

	FY2020	FY2021	Increase/Decrease	（Millions of Yen）	Net Sales by Product
	First Half
	First Half	Forecast	Amount	Percentage
		250,000
Mobile Cranes	55,106	61,200	6,093	11.1%
Truck Loader	9,099	10,100	1,000	11.0%	200,000
Cranes
Aerial Work	8,493	7,900	-593	-7.0%
Platforms
				150,000
Other	18,406	20,800	2,393	13.0%
Total	91,106	100,000	8,893	9.8%	100,000
Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan	18,122	20,100	1,978	10.9%	50,000
Outside Japan	36,984	41,100	4,116	11.1%
Total	55,106	61,200	6,093	11.1%	0
	FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20	FY20 FY21
													First First Half
Exchange Rate								Mobile Cranes			Truck Loader Cranes	Half Forecast
the rates given here are January-June average.
	* Since the fiscal year for subsidiaries outside Japan ends in December,
USD	¥108.27							Aerial Work Platforms		Other
¥107.69
EUR	¥119.30	¥129.82

9