November 7, 2014

Name of Listed Company:

ISEKI & CO., LTD.

Company Code:6310 (URL http://www.iseki.co.jp)

Representative:
Enquiries:

Stock Exchange Listing: Tokyo

Title
Title

President
General Manager ofFinancial Department
Date of Submission of Quarterly Report:
Scheduled Date to Commence Dividend Payment:
Supplementary Information for Quarterly Financial Results:
Quarterly Financial Results Briefing:

Name
Noriyuki Kimura
Name
Kazuma Takahashi
Telephone: +81 3 5604 7709
November 7, 2014—
Yes
Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Six Months Ended September 30, 2014 (Japanese GAAP)
I. Financial Results for the Six Months Ended September 30, 2014 (April 1, 2014–September 30, 2014)
A. Results of Operations(Rounded down to a million yen, % indicates change from the previous period)

Six Months Ended
September 30, 2014
82,450
1,048
1,485
1,341

Six Months Ended
September 30, 201382,496
4,166
4,892
3,168

%
(0.1)
(74.8)(69.6)(57.7)Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
5.84
Fully Diluted
5.84
Note: Comprehensive income
Six months ended September 30, 2014: ¥1,880 mil. (-56.1%)
Six months ended September 30, 2013: ¥4,284 mil. (85.4%)

%
2.6
1.6
28.0
4.4

13.79
—

B. Financial Position(Rounded down to a million yen)

As of September 30, 2014
195,374
68,95034.4%
294.75

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio
Net Assets per Share (yen)Reference: Shareholders’ equity
As of September 30, 2014: ¥67,291 mil.
As of March 31, 2014: ¥67,106 mil.

As of March 31, 2014
197,628
68,73434.0%
292.11

II. Dividends(Yen)

Dividend per ShareYear Ended March 31, 2014
Year Ending March 31, 2015
Year Ending March 31, 2015 (Forecast)End of 1Q——

End of 2Q——

End of 3Q—

Year-end
4.00

Annual4.00—

3.00 to 4.00

3.00 to 4.00

Note: Revision of the most recently announced dividend forecast: None

III. Forecast for the Fiscal Year Ending March 31, 2015 (April 1, 2014–March 31, 2015)(Rounded down to a million yen, % indicates change from the previous
period)Full Year

Net
Sales

%

Operating
Income%Ordinary
Income%Net
Income%159,000

(6.0)

2,500

(66.1)

2,400(71.0)

1,500(76.7)Net Income
per Share
(yen)
6.57

Note: Revision of the most recently announced performance forecast: Yes* NotesA. Changes 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 the quarterly consolidated financial statements: None
C. Change in accounting policy, change in accounting estimates and restatements
1) Change in accounting policy which accompanies revision of accounting standards : Yes
2) Change in accounting policy other than 1): Yes
3) Change in accounting estimates: Yes
4) Restatements: None
The above corresponds to Paragraph 5, Article 10 of “Ordinance on Terminology, Forms and Preparation Methods ofQuarterly Consolidated Financial Statements.” For details, please refer to page 5 of the supplementary material, “2.
Matters Concerning Summary Information (Notes) (2) Change in Accounting Policy, Change in Accounting Estimatesand Restatements.”

D. Outstanding shares (common shares)
1) Outstanding shares (including treasury shares)
As of September 30, 2014
As of March 31, 2014
2) Outstanding treasury shares
As of September 30, 2014
As of March 31, 2014
3) Average number of shares during the period
For the six months ended September 30, 2014
For the six months ended September 30, 2013

229,849,936 shares
229,849,936 shares
1,552,470 shares
117,254 shares
229,467,934 shares
229,744,741 shares* Statement regarding the implementation of the quarterly review procedure
Although the summary of quarterly financial results is exempted from requiring the quarterly review procedure
under the Financial Instruments and Exchange Act, we have completed the review procedure of the quarterly
financial statements at the time of disclosure.
* Statement regarding the proper use of financial performance forecasts and other notes
The forecast for operating results has been determined based on information presently available, as well as on theassumptions that the Company believes to be reasonable. It is possible that in the future, actual results may differ
from the anticipated figures for a variety of reasons. Please refer to “1. Qualitative Information Regarding
Financial Results for the Period” on page 2 of the supplementary material for the assumptions underlying theforecasts and precautions when using the forecasts.

Table of contents for supplementary material
1. Qualitative Information Regarding Financial Results for the Period···················································· 2(1) Explanation Regarding Business Performance ········································································ 2(2) Explanation Regarding Financial Position ············································································· 3(3) Explanation Regarding Forward-looking Statements Including Consolidated Performance Forecast·········· 3
2. Matters Concerning Summary Information (Notes) ······································································· 5(1) Changes in Important Subsidiaries during the Period ································································· 5(2) Change in Accounting Policy, Change in Accounting Estimates and Restatements ·································· 5
3. Consolidated Financial Statements ·························································································· 7(1) Consolidated Balance Sheets····························································································· 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ················· 9(3) Consolidated Statements of Cash Flows ··············································································· 11(4) Notes Regarding Consolidated Financial Statements ································································ 13
Notes Regarding the Going Concern Assumption ···································································· 13
Notes Regarding Significant Changes in Shareholders’ Equity ··················································· 13

11. Qualitative Information Regarding Financial Results for the Period(1) Explanation Regarding Business Performance
During the first six months of the fiscal year ending March 31, 2015, the Japanese economy remained
uncertain on the whole, with sluggish demand and the cautious economic stance of Japanese companies
continuing under the lingering influence of the decline in demand following the last-minute surge before theconsumption tax rate hike in April 2014.
In addition, the market environment of the ISEKI Group has continued to be unpredictable. For instance,
the declining price of rice, which reflects the belief that there is a surplus of rice on the market in Japan, may
affect farmers’ motivation to buy our products.
Under these circumstances, the ISEKI Group has made efforts to secure sales volume through enhanced
customer services in Japan and to expand sales mainly by launching new products for North America andEurope. As a result, consolidated business performance of the ISEKI Group can be summarized as follows.
For the first six months of the fiscal year ending March 31, 2015, net sales decreased ¥45 million year on
year to ¥82,450 million (down 0.1%). Domestic net sales increased ¥2,059 million year on year to ¥71,470
million (up 3.0%). Although agricultural machinery sales were level with the same period of the previous year,
the completed construction of a major facility contributed to the increase. Overseas, net sales decreased ¥2,105
million to ¥10,980 million (down 16.1%), reflecting a decrease in sales in China due to the deconsolidation of
Iseki-Changzhou Mfg. Co., Ltd., which offsets a recovery in demand in Europe.
Operating income decreased ¥3,118 million to ¥1,048 million (down 74.8%) due to a decrease in grossprofit from the domestic agricultural machinery market, an increase in selling, general and administrative
expenses including personnel expenses, and the deconsolidation of Iseki-Changzhou Mfg. Co., Ltd. Ordinary
income decreased ¥3,407 million to ¥1,485 million (down 69.6%), mainly due to a decrease in foreignexchange gains. Net income decreased ¥1,827 million to ¥1,341 million (down 57.7%) with negative goodwill
resulting from the acquisition of stock of a European distributor in order to make it a subsidiary.
Sales by product are as follows.
(Domestic)
Sales of cultivating & mowing machinery (tractors, tillers, etc.) were ¥19,019 million (down 0.9% year onyear), and sales of planting machinery (rice transplanters and vegetable transplanters) were ¥6,610 million(down 14.3%). Sales of harvesting and processing machinery (combine harvesters, etc.) were ¥8,851 million(up 15.7%). Sales of spare parts and farming implements were ¥18,201 million (down 2.1%). Other
agriculture-related sales (construction of facilities, etc.) were ¥18,788 million (up 15.7%).
(Overseas)
Sales of cultivating & mowing machinery (tractors, etc.) were ¥9,024 million (up 22.6% year on year), andsales of planting machinery (rice transplanters, etc.) were ¥652 million (down 85.9%). Sales of harvesting andprocessing machinery (combine harvesters, etc.) were ¥256 million (up 22.6%). Sales of spare parts andfarming implements were ¥680 million (up 20.1%). Other agriculture-related sales were ¥366 million (up19.3%).

2

Furthermore, Iseki-Hokkaido Co., Ltd., a consolidated subsidiary of the Company, underwent an on-the-spot
inspection by the Japan Fair Trade Commission on July 29, 2014, on suspicion of a violation of the
Antimonopoly Act concerning the “construction of drying, processing and storage facilities for grains andfacility equipment to be installed in the facilities that are ordered by agricultural cooperatives and local publicbodies located in Hokkaido.”
The Company and Iseki-Hokkaido Co., Ltd. will cooperate thoroughly with the Japan Fair Trade
Commission.

(2) Explanation Regarding Financial Position
As of September 30, 2014, total assets decreased ¥2,253 million from the previous fiscal year-end to ¥195,374
million. In terms of assets, current assets decreased ¥10,711 million from the previous fiscal year-end andnon-current assets increased ¥8,457 million. The changes mainly resulted from an ¥11,940 million decrease innotes and accounts receivable - trade, a ¥2,075 million increase in buildings and structures and a ¥4,518
million increase in other under investments and other assets. Total liabilities decreased ¥2,469 million from theprevious fiscal year-end to ¥126,424 million, mainly as a result of a ¥4,257 million decrease in notes andaccounts payable - trade, and a ¥1,762 million increase in short-term loans payable and long-term loans
payable. Net assets increased ¥215 million from the previous fiscal year-end to ¥68,950 million mainly due toposting net income of ¥1,341 million and dividend of surplus of ¥918 million.

(3) Explanation Regarding Forward-looking Statements Including Consolidated Performance Forecast
During the first six months of the fiscal year ending March 31, 2015, although net sales remained on level withthe same period of the previous year, operating income and ordinary income both decreased due mainly to adecrease in gross profit from the domestic agricultural machinery market and an increase in selling, generaland administrative expenses, including personnel expenses.
The ISEKI Group will celebrate its 90th anniversary since its founding in 2015. In Japan, despite thenegative impact of the declining price of rice, we will engage in further sales expansion efforts under theGroup’s slogan “Supporting the full of dreams farming industry,” such as anniversary sales campaigns andpromotional activities in line with the Group’s motto “Gratitude and Support,” the provision of high-quality
marketing services and reinforcement of customer support capabilities to make proposals that match ourcustomers’ agribusiness management. We will also endeavor to expand overseas sales by releasing andpromoting strategic products for the recovering European market as well as the North American and Chinese
markets.
With respect to future prospects, we believe the ISEKI Group’s business environment will continue to be
unpredictable as the decline in demand following the last-minute surge before the consumption tax rate hike in
April 2014 and the declining trend in the price of rice may continue to push down sales of domestic
agricultural machinery.
In view of these circumstances, we have revised the consolidated business performance forecast for the
fiscal year ending March 31, 2015 announced on May 14, 2014. Please refer to the “Notice on the differences
between the forecast and business performance results for the first six months of the fiscal year ending March
31, 2015 and the revision of the full-year business performance forecast” released on November 7, 2014 for3

details concerning the revised figures.
The latest business performance forecast uses estimated foreign exchange rates of ¥106 per U.S. dollar and¥135 per Euro (revised from ¥101 per U.S. dollar and ¥137 per Euro).

4

2. Matters Concerning Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period
Not applicable(2) Change in Accounting Policy, Change in Accounting Estimates and Restatements(Application of accounting standard, etc., for retirement benefits)
Effective from the first quarter of the fiscal year ending March 31, 2015, we have applied “AccountingStandard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012. Hereafter the “Retirement Benefits
Accounting Standard”) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No.
25, May 17, 2012. Hereafter the “Retirement Benefits Guidance”) in relation to provisions stipulated in themain clause of Paragraph 35 of the Retirement Benefits Accounting Standards and the main clause of
Paragraph 67 of the Retirement Benefits Guidance; and we have reviewed the calculation method for
retirement benefit obligations and service costs, having changed the method for attributing the estimatedamount of retirement benefits from the straight-line method to the benefit formula basis, and we have alsochanged the method of determining the discount rate from the method based on approximate averageremaining service years for employees to a method using the single weighted-average discount rate that reflects
the estimated timing of retirement benefit payments and the amount of benefit payment for each estimatedpayment period.
With respect to the application of the Retirement Benefits Accounting Standard and Retirement Benefits
Guidance, we adjusted the impact of the change in the calculation method for retirement benefit obligations
and service costs with retained earnings at the beginning of the first six months of the fiscal year ending March
31, 2015, in accordance with the transitory treatment stipulated in Paragraph 37 of the Retirement Benefits
Accounting Standard.
As a result, net defined benefit liability increased ¥554 million and retained earnings decreased ¥360
million at the beginning of the first six months of the fiscal year ending March 31, 2015. Furthermore,
operating income, ordinary income and income before income taxes and minority interests decreased ¥15
million respectively.
(Change in the accounting policy that is difficult to distinguish from the change in accounting estimates)
Previously, the Company and its domestic consolidated subsidiaries applied the declining-balance method(however, the straight-line method was applied to tools and newly acquired buildings on and after April 1, 1998
(excluding facilities attached to buildings)) as the calculation method for the depreciation of property, plant andequipment (excluding leased assets), and the Company and its domestic consolidated subsidiaries changed tothe straight-line method from the first quarter of the fiscal year ending March 31, 2015.
With respect to the business environment surrounding the ISEKI Group, while the shrinking of demand for
agricultural machinery, mainly for replacements, has ceased in recent years, major changes in agriculture are
expected in future, such as revisions of agricultural policy in Japan. On the other hand, expansion of theoverseas market for agricultural machinery, especially in Asia, is expected, and we foresee that the global
agricultural machinery market will continue to advance steadily.
Under the circumstances, and for further global expansion, we have decided to make major capital5

investments in state-of-the-art manufacturing facilities that excel as energy saving/multi-functional/all-purpose
properties to improve domestic productivity, and investments in new overseas manufacturing/sales sites, alongwith structural cost reforms in response to drastic changes within and outside Japan. We have reexamined thecalculation method for the depreciation of property, plant and equipment in light of the full-fledged operationof these facilities from the first quarter of the fiscal year ending March 31, 2015.
Responding to the constant change in demand for agricultural machinery and by building low-cost
production systems, we have established a stable customer base in the domestic market. Furthermore, we have
set up a globally oriented production system as a core plant to meet demand from growing Asian markets. As aresult, we expect a stable long-term operation of production facilities, etc., which has led us to determine thatthe straight-line method to allocate expenses evenly over the useful life of facilities would reflect the businessof the ISEKI Group more properly.
With this change, compared with the previous method, depreciation expenses decreased ¥368 million,
operating income increased ¥364 million and ordinary income and income before income taxes and minority
interests each increased ¥368 million.

63. Consolidated Financial Statements(1) Consolidated Balance Sheets
FY2014(as of Mar. 31, 2014)(Millions of yen)
2Q FY2015(as of Sep. 30, 2014)

AssetsCurrent assets
Cash and deposits

8,228

7,906

Notes and accounts receivable - trade41,59829,658Merchandise and finished goods

36,88940,003Work in process

4,882

3,660

Raw materials and supplies

1,548

1,429

Other

4,739

4,549

Allowance for doubtful accounts

(107)

(139)

97,77987,068

Buildings and structures, net

16,602

18,677

Land

51,01551,035

Others, net

19,534

20,614

Total property, plant and equipment

87,15290,326

1,006

1,072

Investment securities

7,269

7,973

Other

4,885

9,404

Allowance for doubtful accounts

(464)

(470)

Total investments and other assets

11,69016,906

99,848108,306

197,628

195,374

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets

Total non-current assets
Total assets

7

FY2014(as of Mar. 31, 2014)(Millions of yen)
2Q FY2015(as of Sep. 30, 2014)

Liabilities
Current liabilities
Notes and accounts payable - trade47,53643,279

Short-term loans payable

20,132

23,652Current portion of long-term loans payable

6,387

5,976

Income taxes payable

1,788

1,650

Provision for bonuses

350

791

Provision for loss on construction contracts

33

―

Other

13,68812,538

Total current liabilities

89,916

87,888Long-term loans payable

17,87016,523

Deferred tax liabilities for land revaluation

6,644

6,644

Provision for directors’ retirement benefits

126

123

Net defined benefit liability

6,660

7,021

Asset retirement obligations

264

259

Other

7,411

7,962

Total non-current liabilities

38,97738,535

128,893

126,424

Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

17,266

17,318

(30)

(430)

54,03453,687

Valuation difference on available-for-sale securities

1,338

1,856

Revaluation reserve for land

11,831

11,831

Foreign currency translation adjustment

1,170

657

Remeasurements of defined benefit plans(1,269)(741)

Total accumulated other comprehensive income

13,072

13,604―22

Minority interests

1,628

1,636

Total net assets

68,734

68,950197,628

195,374

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

Subscription rights to shares

Total liabilities and net assets8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Six Months Ended September 30, 2013 and 2014
Six Months of FY2014(Apr. 1, 2013–
Sep. 30, 2013)(Millions of yen)
Six Months of FY2015(Apr. 1, 2014–
Sep. 30, 2014)

Net sales

82,49682,450

Cost of sales

56,691

58,883Gross profit

25,80523,567

Selling, general and administrative expenses

21,63822,518Operating income

4,166

1,048

Interest income

88

108

Dividend income

8595

Foreign exchange gains

716

130

Other

520

628

1,411

962

Interest expenses

381

326

Other

303

198

Total non-operating expenses

685

525

4,892

1,485

Gain on sales of non-current assets

19

13

Gain on bargain purchase―794

Gain on change in equity―

589

Compensation income

30

11Gain on sales of investment securities

27

25

Total extraordinary income

76

1,435

Loss on sales and retirement of non-current assets

89

166

Other

0

8

Total extraordinary losses

90

175

Income before income taxes and minority interests

4,879

2,745

Income taxes - current

1,521

1,802

Income taxes - deferred

176

(414)

Total income taxes

1,697

1,387

Income before minority interests

3,181

1,357

12

16

3,168

1,341

Non-operating income

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses

Minority interests in income
Net income

9Consolidated Statements of Comprehensive Income
For the Six Months Ended September 30, 2013 and 2014
Six Months of FY2014(Apr. 1, 2013–
Sep. 30, 2013)
Income before minority interests(Millions of yen)
Six Months of FY2015(Apr. 1, 2014–
Sep. 30, 2014)

3,181

1,357

Valuation difference on available-for-sale securities

548

512

Foreign currency translation adjustment

529

(466)

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

―

527

24

(51)

1,103

522

4,284

1,880

Comprehensive income attributable to owners of parent

4,263

1,872

Comprehensive income attributable to minority interests

20

7

Other comprehensive income

Total of other comprehensive income
Comprehensive income(Comprehensive income attributable to)10

(3) Consolidated Statements of Cash FlowsSix Months of FY2014(Apr. 1, 2013–
Sep. 30, 2013)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Gain on bargain purchase
Increase (decrease) in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment andintangible assets
Loss (gain) on change in equity
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from sales of securities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Decrease (increase) in time deposits
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments for investments in capital of subsidiaries andassociates
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Proceeds from sales and leasebacks
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
11(Millions of yen)
Six Months of FY2015(Apr. 1, 2014–
Sep. 30, 2014)

4,879
2,803
―
(139)
―
(174)
381
(97)

2,745
2,793
(794)
―
(293)
(203)
326
(15)

70
―
(10,897)(1,347)
2,629
712(1,178)177(377)(1,131)152(2,356)152(589)
13,660(5,202)(5,801)(1,533)
5,244
196
(356)
(1,929)
―
3,155

19

―

(4,501)(5,472)

233
(2)
48
(237)

21
(1)
109
(353)

―

522

―
62
(4,376)

(543)
(499)
(6,217)

6,105
2,030
(3,207)
(100)
669
(944)
(2)
(680)
(9)
3,860

6,206
2,380
(4,140)―739(1,038)
(400)
(909)
(9)
2,828

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation
Cash and cash equivalents at end of period

12

Six Months of FY2014(Apr. 1, 2013–
Sep. 30, 2013)
352(2,520)
9,040
―
6,519

(Millions of yen)
Six Months of FY2015(Apr. 1, 2014–
Sep. 30, 2014)
27
(205)
8,169
(469)
7,494

(4) Notes Regarding Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable(Notes Regarding Significant Changes in Shareholders’ Equity)
Not applicable13