February 7, 2014
Name of listed company:
Company Code:
Representative:
Title
Enquiries:
Title

ISEKI & CO., LTD.
6310
(URL http://www.iseki.co.jp)

President
General Manager of Corporate
Planning Department
Date of Submission of Quarterly Report
Scheduled Date to Commence Dividend Payment
Supplementary information for quarterly financial information
Quarterly financial results briefing

Stock Exchange Listing: Tokyo
Name
Noriyuki Kimura
Shunichi Suzuki
Name
Telephon +81 3 5604 7709
February 7, 2014
Yes
Yes (For institutional investors, analysts)

Summary Announcement of Consolidated Financial Results
for the Nine Months Ended December 31, 2013 [Japanese GAAP](Consolidated)
I. Financial Results for the Nine Months Ended December 31, 2013 (April 1, 2013 – December 31, 2013)
A. Results of operations (Cumulative)(Rounded down to millions of yen, % indicates changes from the previous same period)

Nine Months Ended
December 31, 2013
Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted

126,543
5,911
7,052
5,000

%

Nine Months Ended
December 31, 2012

7.3
7.5
29.0
28.7

117,884
5,501
5,468
3,884

21.77
-

%
8.1
44.7
59.2
78.1

16.90
-

(Note) Comprehensive income:Third Quarter of FY Mar. 2014 ¥6,289 mil. (68.9%)

Third Quarter of FY Mar. 2013 ¥3,724 mil. (32.0%)

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

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio
Net Assets per Share (yen)December 31, 2013

March 31, 2013

197,053
68,52433.9%
291.19179,028
62,92734.3%
266.94(Ref) Shareholders’ equity:
Third Quarter of FY Mar. 2014 ¥66,895 mil.

FY ended Mar. 2013 ¥61,329 mil.

II. Dividends

Dividend per share (Yen)(Recorded date)
FY ended March 2013
FY ending March 2014

End of 1Q-

End of 2Q-

End of 3Q-

FY ending March 2014 (forecast)(Note) Revision from the most recently announced dividend forecast : Yes

1Year-end
3.00

Annual
3.00

4.00

4.00

III. Forecast for the Fiscal Year Ending March 31, 2014 (April 1, 2013 - March 31, 2014)(Rounded down to millions of yen, % indicates changes from the previous same period)

AnnualNet sales%

Operatingincome%Ordinary
Income%Net
income%Net income
per share(yen)

170,000

9.2

6,700

30.2

7,600

40.4

5,500

38.2

23.94

(Note) Revision from the most recently announced performance forecast: Yes* NotesA. Change in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None
B. Adoption of unique accounting method for preparing quarterly financial statements: None
C. Change in accounting policy, change of estimation in accounting and modified restatement
1) Change in accounting policy which accompanies revision of accounting standards : None
2) Change in accounting policy other than No.1): None3) Change of estimation in accounting: None4) Modified restatement: NoneD. Outstanding shares (Common shares)
1) Outstanding shares as of the end of the period (Including treasury shares)
Third quarter of FY ending March 31, 2014
229,849,936 shares
FY ended March 31, 2013
229,849,936 shares
2) Outstanding treasury shares as of the end of the period
Third quarter of FY ending March 31, 2014
115,104 shares
FY ended March 31, 2013
101,954 shares
3) Average number of shares during the period (Quarterly cumulative period)
Third quarter of FY ending March 31, 2014
229,742,793 shares
Third quarter of FY ended March 31, 2013
229,757,238 shares* Statement regarding state of implementation of quarterly review procedure
The summary of quarterly financial results is exempted from the requirement of quarterly review procedure
under the Financial Instruments and Exchange Act, and we have completed the review procedure of thequarterly financial statements at the time of disclosure under the act.
* Statement regarding proper use of financial performance forecasts and other notes
The forecast for operating results stated in this document has been produced based on information presently
available and certain assumptions deemed reasonable. It is possible that in future actual results may differ fromthe anticipated figures for a variety of reasons. For assumed conditions of the business performance forecast
and adequate use of the forecast, please refer to page 4 of the attached document, [1.Qualitative Information
regarding quarterly financial results].

2

Content of the attached document

1. Qualitative Information regarding quarterly financial results ··················································· 4(1) Explanation concerning the status of consolidated financial results ·································· 4(2) Explanation concerning the shifts in consolidated financial position ································ 5(3) Explanation regarding consolidated performance forecast, etc. ········································ 5
2. Matters concerning Summary Information (Notes) ·································································· 5(1) Changes in important subsidiaries during the quarterly consolidated cumulative period··· 5
3. Consolidated Quarterly Financial Statements··········································································· 6(1) Consolidated Quarterly Balance Sheets ············································································ 6(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income···································································································· 8Consolidated Quarterly Statements of Income·································································· 8Consolidated Quarterly Statements of Comprehensive Income ········································ 9(3) Notes regarding Consolidated Quarterly Financial Statements ······································· 10
Notes regarding the Going Concern Assumption····························································· 10
Notes regarding Significant Changes in Shareholder’s Equity ······································· 10
Segment Information ······································································································ 10

31. Qualitative Information regarding quarterly financial results(1) Explanation concerning the status of consolidated financial results
During the third quarter consolidated cumulative period under review, the Japanese economy is expected tofollow a continued recovery trend in view of the recovering stock prices as well as establishing trend forweaker yen, while there exists a concern for downswing risk in overseas economies. On the other hand, in
terms of the world economy, it will take more time before a full-fledged recovery to take place due to uncertain
factors as seen in a move to squeeze quantitative easing in the U.S., financial instability in Europe and future
prospects in China and other emerging nations.
Under these circumstances, the ISEKI Group has made efforts to increase sales volume through injection of
new machine types and enhanced care of customers in Japan. Also, as a consequence of our efforts in overseas
to expand sales mainly by injection of new machine types as OEM products for North America, consolidated
business performance of the ISEKI Group resulted as follows.
In the third quarter consolidated cumulative period under review, sales increased ¥8,659 million from thesame period of the previous year, to ¥126,543 million (up 7.3%). Domestic sales increased ¥5,613 million to¥108,030 million (up 5.5%). Overseas sales increased ¥3,045 million to ¥18,512 million (up 19.7%). Operating
income increased ¥410 million to ¥5,911 million (up 7.5%) mainly due to earnings recovery effect by increased
sales and modified strong yen, in spite of increased fixed expenses such as development cost and facility cost.
Ordinary income increased ¥1,584 million to ¥7,052 million (up 29.0%) due to appropriation of foreignexchange gains, etc. Quarterly net income increased ¥1,116 million to ¥5,000 million (up 28.7%).

Financial results by segments are as follows:
1) Agriculture related businessIn the domestic market, sales of agricultural machinery and farming implements increased due to active
demand on the back of improved farm income by firmly established stabilization measures of farm income aswell as budget for agriculture in addition to anticipated demand in preparation for the raise of consumption tax
that starts from April, 2014. Overseas sales increased due to contribution of injection of new products into
North America.

The trend of sales by product is as follows.
(Domestic)
Sales of cultivating & mowing machinery (tractors, tillers, etc.) were ¥25,585 million (up 10.5% from thesame period of the previous year), and sales of planting machinery (rice transplanters, vegetable transplanters)
were ¥9,024 million (down 3.0%). Sales of harvesting and processing machinery (combine harvesters, etc.)
were ¥19,649 million (up 3.4%). Sales of farming implements and spare parts were ¥27,324 million (up 11.3%).
The other agriculture related sales (construction of facilities, etc.) were ¥26,412 million (up 0.4%).
(Overseas)
Sales of cultivating & mowing machinery (tractors, etc.) were ¥11,618 million (up 38.3% from the same
period of the previous year), and sales of planting machinery (rice transplanters, etc.) were ¥4,851 million (up5.3%). Sales of harvesting and processing machinery (combine harvesters, etc.) were ¥802 million (down
22.1%).

Sales of farming implements and spare parts were ¥912 million (up 6.2%). The other agriculture4related sales were ¥328 million (down 42.3%).

As a result, the segment sales remained at ¥126,509 million (up 7.4%).

2) Other businessAs other business, we engage in development/sales/operation of computer software. Sales of this segment
stood at ¥34 million (down 66.9%).
Further, liquidation of System Equipment Co., Ltd. (consolidated subsidiary) that had been engaged in theother businesses was concluded as of September 26, 2013.

(2) Explanation concerning the shifts in consolidated financial position
As of the end of the third quarter consolidated cumulative period, total assets increased ¥18,025 million
from the previous fiscal year end to ¥197,053 million. The main changes were from a ¥3,662 million increasein cash and deposits, a ¥7,723 million increase in notes and accounts receivable-trade, and a ¥1,172 million
increase in inventory assets. Total liabilities increased ¥12,428 million from the previous fiscal year end to¥128,529 million, mainly as a result of a ¥1,895 million increase in notes and accounts payable-trade, and a¥11,240 million increase in short-term loans payable and long-term loans payable. Net assets increased ¥5,596
million from the previous fiscal year end to ¥68,524 million mainly due to increase in retained earnings byappropriation of quarterly net income of ¥5,000 million.

(3) Explanation regarding consolidated performance forecast, etc.
During the third quarter consolidated cumulative period, operating income increased from the same periodof the previous year as increased gross income due to effect of increased sales and modified strong yen
exceeded increased selling, general and administrative expenses. Further, ordinary income increased
substantially contributed by foreign exchange gains from modified strong yen.
We will engage in further sales expansion efforts in Japan on the back of anticipated demand prior to theincrease in consumption tax. In overseas, we will also engage in sales expansion by development and injectionof new products targeted to North American market, European market and Chinese market.
With respect to forecasts for the business performance of the fiscal year ending March 31, 2014, we havemade revisions mainly based on the trend of business performance on the back of favorable sales development
in Japan. For details, please refer to “Notice on revision of consolidated business performance forecast for the
fiscal year ending March 31, 2014 and revision of dividend forecast” as announced today (February 7, 2014).

2. Matters concerning Summary Information (Notes)(1) Changes in important subsidiaries during the quarterly consolidated cumulative period
There is no corresponding item.

53. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
FY2013(as at Mar. 31, 2013)
AssetsCurrent Assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total Current Assets
Noncurrent Assets:
Property, plant and equipment
Buildings and structures, net
Land
Others, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investment and other assets
Total Noncurrent Assets
Total Assets

6(millions of yen)
FY2014(as at Dec.31, 2013)

9,285
30,45519
37,242
3,344
2,090
3,977
(51)
86,365

12,947
38,17937,955
4,194
1,700
4,104
(86)
98,995

14,99150,471
16,381
81,844965

15,54550,702
19,12885,376
951

6,539
3,692
(380)
9,852
92,662
179,028

7,784
4,235
(290)
11,72998,057
197,053

(millions of yen)
FY2013(as at Mar.31, 2013)

FY2014(as at Dec.31, 2013)

Notes and accounts payable-trade42,60944,504

Short-term loans payable

15,19928,122Current portion of bonds

100-

Current portion of long-term loans payable

5,984

6,371

Income taxes payable

1,108

1,190

Provision for bonuses

303

1,160

11,2979,200

76,60290,550Long-term loans payable

20,382

18,313

Deferred tax liabilities for land revaluation

6,644

6,644

Provision for retirement benefits

5,453

5,244

Provision for directors' retirement benefits

125

124

Asset retirement obligations

262

256

6,629

7,396

39,49837,979116,101

128,529

Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

11,522

15,819Treasury stock

(25)

(29)

48,29652,588

Liabilities
Current Liabilities:

Other
Total Current Liabilities
Noncurrent Liabilities:

Other
Total Noncurrent liabilities
Total Liabilities
Net Assets
Shareholders' equity

Total Shareholders’ Equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Revaluation reserve for land

928

1,675

11,816

11,831

Foreign currency translation adjustments

288

800

13,033

14,307

1,598

1,628

Total Net Assets

62,927

68,524

Total Liabilities and Net Assets

179,028

197,053

Total Accumulated Other
Comprehensive Income
Minority interests7(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated Quarterly Statements of Income
Third Quarter Consolidated Cumulative Period(millions of yen)
FY2013(Apr.1,2012-Dec.31, 2012)

FY2014(Apr.1,2013-Dec.31, 2013)

Net sales

117,884

126,543

Cost of sales

80,687

87,989Gross profit

37,19738,553

Selling, general and administrative expenses

31,69532,641

Operating income

5,501

5,911

Interest income

114

134

Dividend income

133

130

Foreign exchange gains

151

1,061

Other

480

790

Total non-operating income

879

2,116

Interest expenses

546

563

Other

365

411

Total non-operating expenses

911

975

5,468

7,052

Gain on sales of noncurrent assets

1023Compensation income

182

37

1

32

194

92

Loss on sales and retirement of noncurrent assets

111

158

Loss on disaster90-

Cost of measures for product recall

36

9

Other

1

1

240

169

Income before income taxes

5,421

6,976

Income taxes-current

1,435

2,013

Income taxes-deferred

74

(60)

Total income taxes

1,510

1,952

Income before minority interests

3,911

5,023

Minority interests in income (loss)

27

23

3,884

5,000

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Gain on sale of investment securities
Total extraordinary income
Extraordinary losses

Total extraordinary losses

Net income8Consolidated Quarterly Statements of Comprehensive Income
Third Quarter Consolidated Cumulative Period(millions of yen)
FY2013(Apr.1,2012-Dec.31, 2012)

FY2014(Apr.1,2013-Dec.31, 2013)

3,911

5,023

(189)

743

Deferred gains or losses on hedges(3)-

Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total of other comprehensive income

4

498

0

23

(187)

1,265

Comprehensive income

3,724

6,289

(Breakdown)Comprehensive income for parent attributable to owners of theparentComprehensive income attributable to minority interests

3,697

6,260

26

29

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities9(3) Notes regarding Consolidated Quarterly Financial Statements(Notes regarding the Going Concern Assumption)
There is no corresponding item.
(Notes regarding Significant Changes in Shareholder’s Equity)
There is no corresponding item.

(Segment Information)
1. Third quarter consolidated cumulative period of the previous year (April 1, 2012 – December 31, 2012)
Information related to the amount of sales, income or loss by reportable segments

Agriculture
relatedNet sales
Net sales to externalcustomers
Internal sales ortransfer among
segments
Total
Segment income (loss)

Other(million of yen)
Quarterly
consolidated
incomestatement
posted amount

Adjustment
amountTotal

117,780

104

117,884-

117,884

0

100

100

(100)

-

117,780
3,882

204
1

117,984
3,884

(100)
-

117,884
3,884(Note)
1) Adjustment amount corresponds to elimination of inter-segments transactions.
2) Segment income (loss) has been adjusted with the quarterly net income in the quarterly consolidated statements
of income.

2. Third quarter consolidated cumulative period under review (April 1, 2013 – December 31, 2013)
Information related to the amount of sales, income or loss by reportable segments

Agriculture
relatedNet sales
Net sales to externalcustomers
Internal sales ortransfer among
segments
Total
Segment income (loss)

Other(million of yen)
Quarterly
consolidated
incomestatement
posted amount

Adjustment
amountTotal

126,50934

126,543-

126,543

-

30

30

(30)

-

126,509
5,066

64
(66)

126,574
5,000

(30)
-

126,543
5,000(Note)
1) Adjustment amount corresponds to elimination of inter-segments transactions.
2) Segment income (loss) has been adjusted with the quarterly net income in the quarterly consolidated statements
of income.
3) System Equipment Co., Ltd. of other business was liquidated and concluded as of September 26, 2013.

10