Tadano : Consolidated Financial Results(Quantitative) For FY 2020

Consolidated Financial Results(Quantitative)

For FY 2020

(April 1, 2020 through March 31, 2021)

Notes:
1) For the purpose of timely English-language financial
information disclosure, Tadano Ltd. provides quantitative
financial results reports in concurrence with the disclosure of
its original Japanese-language financial results. Detailed
qualitative information will be disclosed at a later date in a	April 28, 2021
comprehensive financial results report.
	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.
• The acquisition of the Demag Mobile Cranes business (Hereafter "Demag") was completed on July 31, 2019. In this report, information for Demag is treated as follows:
• • FY2019 Consolidated Financial Statements: B/S as of 31st December and P/L from August to December are included.
    *Adjustments are made retroactively due to PPA. PPA("Purchase Price Allocation") is a process to appraise assets and liabilities at fair value and allocate purchase price.

1

Key Points of FY 2020 Financial Results

• Despite consolidation of Demag business, net sales decreased by about 18%. Profits declined substantially due to changes in product sales composition. First operating loss recorded for the first time in ten years since FY2010.

(Unit: millions of yen)

	FY2019	FY2020
	Amount	Percentage	Amount	Percentage
Net Sales	227,949	100%	186,040	100%
Operating income	13,949	6.1%	-4,196	-2.3%
Ordinary income	13,791	6.1%	-4,683	-2.5%
Net income attributable	6,433	2.8%	-12,987	-7.0%
to owners of the parent
Capital investment		12,902		5,666
Depreciation		4,527		5,695

* Figures for capital investments include leased assets.

USD	¥109.05	¥106.82
EUR	¥122.07	¥121.81

Percent

Change

-18.4%

－

－

－

2

Income Statement

• Cost of sales ratio deteriorated due to changes in product sales composition.
• SG&A expenses decreased as a result of cost-cutting efforts.
• Provision of allowance for losses related to violations of emission regulations and expenses related to reorganization of European Operations were recorded as
  extraordinary losses.(Unit: millions of yen)

	FY2019	FY2020	Increase/
	Amount	Percentage	Amount	Percentage	Decrease
Net sales	227,949	100%	186,040	100%	-41,909
Cost of sales	172,007	75.5%	150,944	81.1%	-21,062
Gross profit on installment sales	-69	-0.0%	55	0.0%	124
Gross profit	55,872	24.5%	35,150	18.9%	-20,722
Selling, general, and	41,923	18.4%	39,347	21.1%	-2,575
administrative expenses
Operating income	13,949	6.1%	-4,196	-2.3%	-18,146
Non-operating income and loss	-158	-0.1%	-486	-0.3%	-328
Ordinary income	13,791	6.1%	-4,683	-2.5%	-18,474
Extraordinary income and loss	-1,753	-0.8%	-7,674	-4.1%	-5,921
Income before income taxes	12,038	5.3%	-12,358	-6.6%	-24,396
Corporate taxes	5,683	2.5%	599	0.3%	-5,084
Net income attributable to	-78	-0.0%	29	0.0%	108
noncontrolling interests
Net income attributable to	6,433	2.8%	-12,987	-7.0%	-19,420
owners of the parent

3

Balance Sheet

• Both accounts receivable and inventories decreased.
• Preparations for prolonged Coronavirus disruption. (Cash deposits and Interest- bearing debt increased)

								(Unit: millions of yen)
		FY2019	FY2020	Increase/			FY2019	FY2020	Increase/
		Year-end	Year-end	Decrease			Year-end	Year-end	Decrease
Cash deposits	57,075	103,110	46,034		Accounts payable	40,745	32,043	-8,702
Accounts receivable	63,267	48,774	-14,492		Interest-bearing debt	63,035	94,586	31,551
Inventories	97,434	82,010	-15,424		Other liabilities	49,320	51,885	2,564
	9,415	5,254	-4,160
Other current assets		Total liabilities	153,102	178,515	25,413
Total current assets	227,192	239,149	11,956		Total equity	158,158	145,404	-12,754
Tangible fixed assets	68,433	68,046	-386		Total liabilities	311,260	323,920	12,659
	and equity
Intangible fixed assets	1,675	1,692	17
		FY2019	FY2020
Investment and	13,958	15,031	1,072
other assets
					Receivable turnover	88.1 days	95.7 days
Total fixed assets	84,067	84,770	703
Total assets	311,260	323,920	12,659		Inventory turnover	135.6 days	160.9 days
						Equity ratio	50.5%	44.5%
						Net D/E Ratio	0.04	-0.06
						ROA (based on Operating Income) 4.9%	-1.3%
						ROE	4.1%	-8.6%

4

Net Sales by Product

• Mobile Crane and Truck Loader Crane sales decreased, Aerial Work Platform sales increased.

			(Unit: millions of yen)		Net Sales by Product
	FY2019	FY2020	Increase/Decrease	( Millions of yen)
	Amount	Percentage	250,000
Mobile Cranes	150,818	109,430	-41,387	-27.4%
Truck Loader	22,162	19,314	-2,848	-12.9%	200,000
Cranes
Aerial Work	17,986	18,701	715	4.0%
Platforms
				150,000
Other	36,982	38,593	1,611	4.4%
Total	227,949	186,040	-41,909	-18.4%	100,000

Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan	47,833	39,615	-8,217	-17.2%
Outside Japan	102,984	69,815	-33,169	-32.2%
Total	150,818	109,430	-41,387	-27.4%

50,000

0

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Mobile Cranes		Truck Loader Cranes		Aerial Work Platforms		Other

5

Net Sales by Destination

• Net sales increased in Europe due to consolidation of Demag business, but net sales decreased in all other regions.

	FY2019
Europe	24,363
North America	54,163
Latin America	6,735
Asia	14,401
Middle East	10,312
Other	13,444
Subtotal	123,421
(total outside Japansales)
Japan	104,527
Total	227,949
Outside Japan	54.1%
Sales Ratio

(Unit: millions of yen)

	Increase/Decrease
FY2020
Amount	Percentage
27,631	3,267	13.4%
35,001	-19,162	-35.4%
3,092	-3,643	-54.1%
11,013	-3,387	-23.5%
5,898	-4,414	-42.8%
10,126	-3,318	-24.7%
92,763	-30,658	-24.8%
93,277	-11,250	-10.8%
186,040	-41,909	-18.4%
49.9%

( Millions of yen)	Net Sales by Destination
140,000													70%
120,000													60%
100,000													50%
80,000													40%
60,000													30%
40,000													20%
20,000													10%
0														0%
	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20
				Europe					North America
				Latin America					Asia
				Middle East					Other
				Outside Japan Sales ratio

The graph above excludes Japan.

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

6

FY 2021 Business Performance Forecast

						(Unit: millions of yen)
	FY2020	FY2021			Percent
	Amount	Percentage	Amount	Percentage		Change
Net Sales	186,040	100%		215,000		100%	15.6%
Operating income	-4,196	-2.3%		4,200		2.0%		－
Ordinary income	-4,683	-2.5%		3,400		1.6%		－
Net income attributable	-12,987	-7.0%		10,500		4.9%		－
to owners of the parent
*We estimate the recording of extraordinary income in FY		2021 of approximately		¥10 billion
resulting from, among other factors, gains on debt forgiveness related to the reorganization
of European Operations.

Capital investment	5,666
Depreciation	5,695

* Figures for capital investments include leased assets.

USD		¥106.82
EUR		¥121.81
	Mid-year	¥0.00
Dividends per share	Year-end	¥3.00
	Full-year	¥3.00

6,500

5,900

¥105.00 ¥125.00

Mid-year¥3.00

Year-end¥4.00

Full-year¥7.00

7

FY 2021 Forecast (Net Sales by Product)

(Unit: millions of yen) (Millions of yen)

Net Sales by Product

	FY2020	FY2021	Increase/Decrease
	Forecast	Amount	Percentage
Mobile Cranes	109,430	139,000	29,570	27.0%
Truck Loader	19,314	19,000	-314	-1.6%
Cranes
Aerial Work	18,701	16,700	-2,001	-10.7%
Platforms
Other	38,593	40,300	1,707	4.4%
Total	186,040	215,000	28,960	15.6%
Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan	39,615	37,700	-1,915	-4.8%
Outside Japan	69,815	101,300	31,485	45.1%
Total	109,430	139,000	29,570	27.0%

250,000

200,000

150,000

100,000

50,000

0

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Forecast

Mobile Cranes		Truck Loader Cranes		Aerial Work Platforms		Other

8

FY 2021 Forecast (Net Sales by Destination)

			(Unit: millions of yen)
					(Millions of yen)			Net Sales by Destination
	FY2020	FY2021	Increase/Decrease				70%
	140,000
	Forecast	Amount	Percentage
					120,000												60%
Europe	27,631	33,300	5,669	20.5%
North America	35,001	46,100	11,099	31.7%	100,000												50%
Latin America	3,092	3,600	508	16.4%	80,000												40%
Asia	11,013	14,500	3,487	31.7%
Middle East	5,898	10,200	4,302	72.9%	60,000												30%
Other	10,126	18,000	7,874	77.8%	40,000												20%
Subtotal	92,763	125,700	32,937	35.5%	20,000												10%
(total outside Japansales)
Japan	93,277	89,300	-3,977	-4.3%	0													0%
Total	186,040	215,000	28,960	15.6%	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20
	FY21
																	Forecast
								Europe						North America
Outside Japan	49.9%	58.5%						Latin America					Asia
Sales ratio						Middle East					Other
								Outside Japan Sales ratio
					The graph above excludes Japan.
					"Other" is comprised of Oceania, Africa and the CIS.

9