August 8, 2018
ISEKI & CO., LTD.
Supplementary Information to Consolidated Financial Results(January 1, 2018 – June 30, 2018)
I. Consolidated results of operations for the six months ended June 30, 2018
2Q of
2Q of FY ended
FY ending
December 31,
December 31,
2017
2018
Net sales

Year-on-year change
Amount%(Billions of yen, %)2Q of
FY ending Difference
December (forecast31, 2018/actual)
Forecast*

80.2

82.2

2.0

2.6

86.0

(3.8)

Domestic

62.8

63.9

1.1

1.8

64.4(0.5)

Overseas

17.4

18.3

0.9

5.1

21.6

(3.3)

Gross profit

23.7

23.5(0.2)(0.9)

24.0(0.5)

Gross profit margin

29.6%

28.6%

(1.0)%

—

27.9%

0.7%

Selling, general andadministrative expenses

20.9

21.3

0.4

2.1

22.0

(0.7)

Operating income

2.8

2.2

(0.6)

(22.6)

2.00.2

Balance of financial
income

(0.3)

(0.4)

(0.1)

—

(0.3)

(0.1)

Other non-operating
income0.9

0.0(0.9)—

0.1(0.1)

3.4

1.8

(1.6)

(45.5)

1.8

0.0

Extraordinary income

0.0

0.1

0.1

—

0.00.1

Extraordinary losses

(0.1)

(0.1)

0.0

—

(0.2)

0.1

Income before income taxes

3.3

1.8(1.5)(44.1)

1.6

0.2(1.1)

(0.2)

0.9

—

0.0(0.2)

2.2

1.6(0.6)(24.9)

1.6

0.0

Ordinary income

Income taxes
Profit attributable to ownersof parent* the forecast released on February 13, 2018

1

(Sales breakdown)
2Q of
FY ended
December 31,
2017
Agricultural machinery
Farming implements
Spare parts
Repair fees
Totals agricultural
machinery related
Construction of facilities
OthersDomestic sales total

2Q ofFY ending
December 31,
2018

Year-on-yearchange(Billions of yen)
2Q of FY
endingDifference
December (forecast/actual)
31, 2018
Forecast*
29.1(0.8)
11.5
0.3
7.0(0.2)
2.6
0.0

28.1
11.3
6.8
2.5

28.3
11.8
6.8
2.6

0.2
0.5
0.0
0.1

48.7

49.5

0.8

50.2

(0.7)

3.3
10.8
62.8

3.3
11.1
63.9

0.0
0.3
1.1

3.2
11.0
64.4

0.1
0.1
(0.5)

North America
EuropeChina
ASEAN
Others
Product sales total
Spare parts
OthersOverseas sales total

3.5
5.6
2.6
1.8
1.7
15.2
1.2
1.017.4

5.6
6.0
0.9
2.0
1.1
15.6
1.3
1.4
18.3

2.1
0.4
(1.7)
0.2
(0.6)
0.4
0.1
0.4
0.9

6.9
7.4
0.8
3.0
1.3
19.4
1.1
1.1
21.6

(1.3)
(1.4)
0.1
(1.0)
(0.2)
(3.8)
0.2
0.3
(3.3)

Total net sales

80.2

82.2

2.0

86.0

(3.8)

* the forecast released on February 13, 2018211) Year-on-year change(1) Net sales: ¥82.2 billion (up ¥2.0 billion (2.6%) year on year)
 Sales in Japan: ¥63.9 billion (up ¥1.1 billion (1.8%) year on year)
Overall sales related to agricultural machinery increased by ¥0.8 billion as a result of increased sales of ricetransplanters thanks to the launch of new products and ongoing favorable sales of farming implements.
Sales of other products and services, including agricultural materials, increased by ¥0.3 billion
 Sales overseas: ¥18.3 billion (up ¥0.9 billion (5.1%) year on year)
Sales in North America increased by ¥2.1 billion due to the disappearance of the effects of partial changes
in business terms with an OEM partner in the same period of the previous fiscal year.
Sales in Europe increased by ¥0.4 billion due to the effects of the launch of new products.
Sales in China decreased by ¥1.7 billion due mainly to decreased shipments of semi-finished ricetransplanters stemming from local inventory adjustment.
Sales in ASEAN increased by ¥0.2 billion due mainly to increased shipments of tractors for Indonesia,
though shipments for Thailand decreased.
(2) Revenue: worsening performance year on year partly due to temporary factors such as theunprofitable construction of facilities, as well as other factors such as increased development costs andpersonnel expenses.
 Operating income: ¥2.2 billion (down ¥0.6 billion year on year) Ordinary income: ¥1.8 billion (down ¥1.6 billion year on year) Income before income taxes: ¥1.6 billion (down ¥0.6 billion year on year)
Operating income decreased by ¥0.6 billion primarily as a result of temporary factors such as unprofitable
construction of facilities and expenses resulting from the application of the principle of calculating
retirement benefits upon the merger of subsidiaries, as well as other factors such as increased development
costs for products responsive to the emission gas regulations, etc. and increased personnel expenses.
Ordinary income decreased by ¥1.6 billion mainly due to a worsening in foreign exchange gains or losses
and in the share of profit or loss of entities using equity method, as well as the disappearance of subsidy
income (non-operating income) recorded in the same period of the previous fiscal year.
Profit decreased by ¥0.6 billion due to decreased tax expenses resulting from the application of theconsolidated taxation system effective from the fiscal year ending December 31, 2018.
2) Comparison with the forecast(1) Net sales: ¥3.8 billion lower than the forecast (Japan: ¥(0.5) billion, overseas: ¥(3.3) billion)
 Overall sales in Japan were ¥0.5 billion lower than the forecast, as a result of overall agricultural machinerysales that were ¥0.8 billion lower than the forecast due to delays in shipment schedules for tractors andcombine harvesters, despite the increased sales of rice transplanters thanks to the launch of new products, aswell as farming implements sales that were ¥0.3 billion higher than the forecast.
 Overall sales overseas were ¥3.3 billion lower than the forecast, as a result of sales in the North America
that were ¥1.3 billion lower than the forecast because a portion of the locally consigned inventories based onorders received in OEM partner did not lead to sales for the fiscal year under review, sales in Europe thatwere ¥1.4 billion lower than the forecast mainly due to deferred sales of the off-demand season in a French
subsidiary, and sales in ASEAN that were ¥1.0 billion lower than the forecast mainly due to decreased
shipments of tractors stemming from inventory adjustments in a sales agent in Thailand.
(2) Revenue:
 Operating income: ¥0.2 billion higher than the forecast
 Ordinary income: Almost in line (¥0.0 billion) with the forecast
 Profit: Almost in line (¥0.0 billion) with the forecast3Operating income was ¥0.2 billion higher than the forecast, as a result of an earlier improvement in
profitability in the Indonesian business and a reduction in selling, general, and administrative expenses andother expenses, despite the decrease in gross profit due to the failure to reach the sales target.
Ordinary income and profit were almost in line with the forecast mainly due to a worsening in the share of
profit or loss of entities using equity method.

4II. Consolidated financial results forecast for the fiscal year ending December 31, 2018
 We have revised the consolidated financial results forecast for the fiscal year ending December 31, 2018
announced on February 13, 2018 as follows.
[Consolidated financial results forecast for the fiscal year ending December 31, 2018](January 1, 2018 through December 31, 2018)(Billions of yen)Previous
Latest forecastDifference
FY ended
forecast for FY
for FY ending Year-on-year(previous/
December 31,
endingchange
December 31,
latest)2017
December 31,
2018
2018
158.4
164.5
(0.4)
(6.5)
158.0
Net sales
123.1
126.2
2.1
(1.0)
125.2
Domestic
35.3
38.3
(2.5)
(5.5)
32.8
Overseas
Operating income

4.0

4.5

4.5

0.5

0.0

Ordinary income
Profit attributableto owners ofparent

4.2

4.3

4.3

0.1

0.0

2.8

3.2

3.2

0.4

0.0

(Reason for revision)
We have made a downward revision of net sales in the amount of ¥6.5 billion from the previous forecast, in
consideration of the actual financial results for the six months ended June 30, 2018, the current trends oforders received, and other factors. There are no revisions in any of the other income items from operating
income onward thanks to ongoing cost reductions, though gross profit fell due to decreased net sales.
 Sales in Japan have been revised downward in the amount of ¥1.0 billion from the previous forecast, in
consideration of the current trends of orders received for construction of facilities and other factors.
 Sales overseas have been revised downward in the amount of ¥5.5 billion from the previous forecast, taking
into account the expected decrease in orders received mainly resulting from inventory adjustments in North
America, ASEAN and China.
* The assumed foreign exchange rates for the second half:¥110 per U.S. dollar (continued)¥130 per euro (continued)* Explanation on the proper use of financial results forecasts
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 significantly differ from the forecasts, however, as aresult of various factors.

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