November 13, 2019
Name of Listed Company: ISEKI & CO., LTD.
Stock Exchange Listings: Tokyo
Company Code:6310 (URL http://www.iseki.co.jp)
Representative: Title President
Name Shirou Tomiyasu
Enquiries:
Title General Manager of Financial Department
Name Yoshikazu Ogusu
Telephone: +81-3-5604-7671
Date of Submission of Quarterly Report:
November 13, 2019
Scheduled Date to Commence Dividend Payment:—
Supplementary Information for Quarterly Financial Results: Yes
Quarterly Financial Results Briefing:
Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Nine Months Ended September 30, 2019 (Japanese GAAP)
I. Consolidated Financial Results for the Nine Months Ended September 30, 2019 (January 1, 2019－September
30, 2019)
A. Consolidated Results of Operations (Cumulative Total)(Rounded down to millions of yen, % indicates changes from the previous corresponding period)

Nine Months Ended
September 30, 2019
120,975
4,525
3,259
2,132

%

Net Sales
1.5
Operating Income
26.0
Ordinary Income
17.8
Profit Attributable to Owners of Parent(3.9)
Earnings per Share (yen)
Basic
94.42
Diluted94.28
Note: Comprehensive income
Nine months ended September 30, 2019: ¥1,761 million [46.1 %]Nine months ended September 30, 2018: ¥1,205 million [(67.6)%]

Nine Months Ended
September 30, 2018
119,186
3,591
2,765
2,219
98.26
98.11

%
(1.1)
(22.5)(49.2)(33.4)

B. Consolidated Financial Position(Rounded down to millions of yen)

As of September 30, 2019

As of December 31, 2018

Total Assets
211,932
201,156
Net Assets
70,03868,959
Shareholder’s Equity to Total Assets Ratio (%)
32.2
33.4
Net Assets per Share (yen)3,021.16
2,974.78
Reference: Shareholder’s equity
As of September 30, 2019: ¥68,249 million
As of December 31, 2018: ¥67,200 million
The Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018), etc. from the beginning of the first quarter ended March 31, 2019.
With respect to the consolidated financial position as of December 31, 2018, the values after the above accounting
standard, etc. was retrospectively applied are used.
II. Dividends

1Q-endFY Ended December 31, 2018
FY Ending December 31, 2019
FY Ending December 31,
2019 (Forecast)

2Q-end——Dividend per Share (yen)3Q-endYear-end
—
—
30.00
—
—

Total
30.00

30.00

30.00

Note: Revision of the most recently announced dividend forecast: No
III. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2019 (January 1, 2019－
December 31, 2019)(Rounded down to millions of yen, % indicates changes from the previous period)
Net Sales%

Operating
Income%Ordinary
Income%Full Year
155,500(0.3)
4,000 25.8
2,600
(1.1)
Note: Revision of the most recently announced financial results forecast: Yes

ProfitAttributableto Ownersof Parent%

Earnings
per Share
(yen)

1,600

46.7

70.83

* NotesA. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in the scope of consolidation): No
New: — (), Exclusion: — ()
B. Adoption of special accounting treatment for preparing the quarterly consolidated financial statements: No
C. Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards, etc.:
2) Any changes other than 1) above:3) Changes in accounting estimates:
4) Restatements:
D. Total number of shares issued (common stock)1) Total number of shares issued at the end of the period (including treasury shares):
As of September 30, 2019
22,984,993 shares
As of December 31, 2018
22,984,993 shares2) Total number of treasury shares at the end of the period:
As of September 30, 2019394,540 shares
As of December 31, 2018394,999 shares
3) Average number of shares during the period (cumulative total):
Nine months ended September 30, 2019
22,590,555 shares
Nine months ended September 30, 2018
22,589,300 shares

No
No
No
No

* These quarterly financial results are outside the scope of quarterly review procedures to be performed by certified
public accountants or an audit corporation.
* Explanation on the proper use of financial results forecasts and other notes
The financial results forecasts and other forward-looking statements contained in this report are based on
information available to the Company on the date of this report’s release and certain preconditions that theCompany deems to be reasonable. Actual results, etc. may differ significantly from the forecasts, however, as aresult of various factors. For details on the preconditions on the financial results forecasts of the Company andnotes on the use of financial results forecasts, please see “1. Qualitative Information on Consolidated Financial
Results for the Period under Review” on page 2 of the Appendix.

 Contents of Appendix
1. Qualitative Information on Consolidated Financial Results for the Period under Review ....................2(1) Explanation on Results of Operations ..............................................................................................2(2) Explanation on Financial Position ....................................................................................................2(3) Explanation on Consolidated Financial Results Forecasts andOther Forecast Information ..............................................................................................................3
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................4(1) Quarterly Consolidated Balance Sheets............................................................................................4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ....................................................................................................................6(3) Notes to Quarterly Consolidated Financial Statements ....................................................................8(Notes to Going Concern Assumption) ............................................................................................8(Notes to Material Changes in Shareholders’ Equity) ......................................................................8(Additional Information) ..................................................................................................................8-1-

1. Qualitative Information on Consolidated Financial Results for the Period under Review
The Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018), etc. from the beginning of the first quarter ended March 31, 2019.
With respect to the explanation on financial position, the values after the above accounting standard, etc. wasretrospectively applied are used in the analysis and in the comparison with the values of the previous fiscal year.
(1) Explanation on Results of Operations
During the nine months ended September 30, 2019, the Japanese economy remained on a moderate recovery track due
to the effects of various government policies amid continuing improvement in employment and income environments,
despite some evidence of weakness, mainly in exports. Overseas, the economy in the U.S. continued a recovery mainly
backed by increased personal consumption, while the economy in Europe performed sluggishly in some areas ofproduction and capital investment, and the Chinese economy continued to slow slightly due to sluggishness in personal
consumption and production, as well as a decrease in exports due to the effects of trade frictions between the U.S. andChina. Although the world economy improved gradually as a whole, the outlook for the future is growing increasingly
unclear, including prolonged trade frictions between the U.S. and China and the outcome of the Brexit.
On the other hand, in the domestic agricultural environment, despite a last-minute surge in demand in advance ofthe consumption tax increase, the market for agricultural machinery remained basically flat amid ongoing structuralchanges in agriculture including farmland consolidation to principal farmers and rice-crop diversion such as a shift todry field farming and vegetable production.
Under these circumstances, the ISEKI Group continued its initiatives to strengthen the responsiveness to structuralchanges in agriculture mainly by launching new products and improving customer service in Japan, while working tostrengthen its sales in its mainstay overseas markets of North America, Europe, China, and ASEAN. The Group’s
consolidated financial results are summarized as follows.
Net sales for the nine months ended September 30, 2019 were ¥120,975 million, an increase of ¥1,788 million(1.5%) year on year. Domestic sales in Japan were ¥95,979 million, an increase of ¥2,078 million (2.2%) year on year,
as a result of increased sales of agricultural machinery, farming implements, etc., due to a last-minute surge in demandin advance of the consumption tax increase. Overseas sales were ¥24,996 million, a decrease of ¥290 million (1.1%)
year on year. This was due to a sales decline in Europe from the effect of currency exchange rates linked to the higher
yen and decreased shipments of lawn mowers caused by the unseasonable weather, a sales decline in China fromdecreased shipments of semi-finished rice transplanters stemming from local inventory adjustments and a sales decline
in the ASEAN region from factors including decreased shipments of tractors to Thailand and a decrease in Indonesian
government tendering, despite higher sales in North America from factors including ongoing favorable sales of newcompact tractors.
Operating income was ¥4,525 million, an increase of ¥934 million (26.0%) year on year, mainly due to a reduction
in selling, general and administrative expenses in addition to the increase in gross profit stemming from revenue
increase. Ordinary income was ¥3,259 million, an increase of ¥493 million (17.8%) year on year, mainly due to therecording of foreign exchange losses and the share of loss of entities accounted for using equity method. Profit
attributable to owners of parent was ¥2,132 million, a decrease of ¥86 million (3.9%) year on year.
Sales by product are as follows.
[Domestic]
Sales of cultivating and mowing machinery (tractors, high-clearance multipurpose vehicles, among others) were¥21,300 million (an increase of 1.2% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥8,005 million (an increase of 7.2% year on year). Sales of harvesting and processing machinery(combine harvesters, among others) were ¥14,110 million (an increase of 2.6% year on year). Sales of farming
implements, spare parts and repair fees were ¥33,360 million (an increase of 5.9% year on year). Sales of otheragriculture-related business (construction of facilities, among others) were ¥19,202 million (a decrease of 4.6% year
on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥19,193 million (a decrease of 0.7% year
on year). Sales of planting machinery (rice transplanters, among others) were ¥1,026 million (a decrease of 41.5%
year on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥1,545 million(an increase of 200.3% year on year). Sales of farming implements and spare parts were ¥2,209 million (an increaseof 7.0% year on year). Sales of other agriculture-related business were ¥1,020 million (a decrease of 37.5% year onyear).
(2) Explanation on Financial Position[Assets]
Total assets at the end of the third quarter ended September 30, 2019 increased by ¥10,775 million from the end of
the previous fiscal year to ¥211,932 million. This was mainly due to an increase of ¥14,611 million in notes andaccounts receivable – trade, a decrease of ¥1,136 million in inventories, a decrease of ¥1,718 million in other undercurrent assets, a decrease of ¥533 million in investment securities, and a decrease of ¥685 million in other underinvestments and other assets.
-2-

[Liabilities]
Total liabilities at the end of the third quarter ended September 30, 2019 increased by ¥9,696 million from the endof the previous fiscal year to ¥141,894 million. This was mainly due to an increase of ¥8,937 million in short-termloans payable and long-term loans payable, an increase of ¥672 million in notes and accounts payable - trade andelectronically recorded obligations - operating, an increase of ¥842 million in income taxes payable, a decrease of¥1,909 million in other under current liabilities, and an increase of ¥1,038 million in other under non-current liabilities.
[Net assets]
Total net assets at the end of the third quarter ended September 30, 2019 increased by ¥1,078 million from the endof the previous fiscal year to ¥70,038 million. This was mainly due to ¥2,132 million of profit attributable to ownersof parent, ¥677 million of dividends of surplus, and a decrease of ¥248 million in the foreign currency translation
adjustment.
(3) Explanation on Consolidated Financial Results Forecasts and Other Forecast Information
With regard to the consolidated financial results forecasts for the fiscal year ending December 31, 2019, we have madea downward revision of net sales in the amount of ¥8,500 million from the previous forecast (released on February 13,2019) in consideration of the actual financial results for the nine months ended September 30, 2019, the current trendsof orders received, and other factors. There are no revisions in any of the other income items from operating income
onward as it is expected that profits in the previous forecast can be secured mainly due to lower than expected pricesof raw materials, cost reduction by improving operational efficiency, and price reconsideration in terms of sales.
These financial results forecasts are calculated based on the exchange rates at ¥108 per U.S. dollar (unchanged) and¥119 per euro (changed from ¥125) for the fourth quarter of the fiscal year ending December 31, 2019.
[Consolidated financial results forecast for the fiscal year ending December 31, 2019 (January 1, 2019－December
31, 2019)]
Net Sales

Operating
IncomeOrdinary
IncomeProfitAttributableto Owners of
ParentEarnings per
Share

Million yen

Million yen

Million yen

Million yen

Yen

Previous Forecast (A)164,000

4,000

2,600

1,600

70.83

Revised Forecast (B)155,500

4,000

2,600

1,600

70.83

Difference (B-A)(8,500)

―

―

―

―

Rate of Change (%)

(5.2)

―

―

―

―

155,955

3,179

2,629

1,090

48.29

(Ref.) Results for the Fiscal Year
Ended December 31, 2018-3-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2018

As of September 30, 2019

AssetsCurrent assets
Cash and deposits

7,475

7,065

Notes and accounts receivable - trade23,32737,939Merchandise and finished goods

46,49544,692Work in process

6,046

6,706

Raw materials and supplies

1,177

1,183

Other

7,320

5,602

(51)

(121)

91,791103,068

Buildings and structures, net

25,37825,794Land

50,87350,745

Other, net

20,58920,825

Total property, plant and equipment

96,842

97,364

1,082

1,279

Investment securities

5,817

5,283

Other

5,769

5,084

Allowance for doubtful accounts

(146)

(147)

Total investments and other assets

11,440

10,220109,365

108,864

201,156

211,932

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets

Total non-current assets
Total assets-4-

(Millions of yen)
As of December 31, 2018

As of September 30, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade23,803

26,482

Electronically recorded obligations - operating
Short-term loans payable

15,93331,475

13,92635,096

Current portion of long-term loans payable

11,401

10,660

Income taxes payable

368

1,211

Provision for bonuses

482

859

Other

12,12910,220Total current liabilities

95,59398,457

Non-current liabilities
Long-term loans payable

20,571

26,628Deferred tax liabilities for land revaluation

5,780

5,759

Provision for directors’ retirement benefits

132

141

Net defined benefit liability

4,063

3,810

Asset retirement obligations
Other

322
5,732

325
6,771

Total non-current liabilities
Total liabilities

36,603
132,197

43,436
141,894

Capital stock
Capital surplus

23,344
13,452

23,344
13,452Retained earnings

16,932

18,435

Treasury shares

(983)

(982)

52,74654,250

418
(0)

247
(1)

12,67012,622Foreign currency translation adjustment

864

615

Remeasurements of defined benefit plans

501

514

Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

14,454

13,998Subscription rights to shares

Total accumulated other comprehensive income

7875

Non-controlling interests

1,681

1,713

Total net assets
Total liabilities and net assets

68,959201,156

70,038211,932-5-

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
For the Nine Months Ended September 30, 2019
(Millions of yen)
Nine months ended
September 30, 2018

Nine months ended
September 30, 2019

Net sales

119,186

120,975

Cost of sales

83,84085,154Gross profit

35,34635,820

Selling, general and administrative expenses

31,754

31,295

Operating income

3,591

4,525

Interest income

91

146

Dividend income

90

139

Other

688

588

Total non-operating income

870

874

Interest expenses

499

548

Foreign exchange losses

50

234

Share of loss of entities accounted for using equity method

760

988

Other

385

370

1,696

2,140

2,765

3,259

Gain on sales of non-current assets

71

21

Gain on sales of investment securities

52

104

Gain on step acquisitions

16―

Total extraordinary income

140

126

Loss on sales and retirement of non-current assets

126

157

Impairment loss

10

79

Other

―

1

Total extraordinary losses

136

238

Income before income taxes

2,769

3,146

Income taxes - current

984

1,542

Income taxes - deferred

(471)

(567)

Total income taxes

513

975

2,256

2,171

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

-6-

36

38

2,219

2,132

Quarterly Consolidated Statements of Comprehensive Income
For the Nine Months Ended September 30, 2019
(Millions of yen)
Nine months ended
September 30, 2018

Nine months ended
September 30, 2019

2,256

2,171

(767)

(171)

Deferred gains or losses on hedges

19

(0)

Foreign currency translation adjustment

(46)

(139)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method

(108)

13

(146)

(111)

(1,050)

(409)

1,205

1,761

1,188

1,725

16

36

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

(3) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable(Notes to Material Changes in Shareholders’ Equity)
Not applicable(Additional Information)
Application of the Partial Amendments to Accounting Standard for Tax Effect Accounting
The Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018), etc. from the beginning of the first quarter ended March 31, 2019.
Accordingly, deferred tax assets are included in investments and other assets, and deferred tax liabilities are included
in non-current liabilities.

-8-