May 14, 2010
Name of listed company: ISEKI & CO., LTD.
6310
Company Code:(URL http://www.iseki.co.jp)
Representative: Title President
Title Director and General Manager of Finance
Enquiries:
Date of the Regular Meeting of Shareholders:Date of Submission of the Securities Report:

Stock Exchange Listing Tokyo, Osaka
Name Seiichiro Gamo
Name Yasunori Maki
Telephone: +81 3 5604 7671
June 24, 2010
June 25, 2010

Summary Announcement of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2010
I. Financial Results for the Fiscal Year Ended March 31, 2010 (April 1, 2009－March 31, 2010)
A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Year Ended

Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per ShareNon-diluted
Fully Diluted

Year Ended

March 31, 2010%

149,314
4,515
3,657
2,347

(0.2)
186.2
373.9
-

March 31, 2009
149,601
1,577
771
2

%
3.4
114.5
-

(yen)
10.29
10.21

0.01
0.01

Return on Equity

(%)

4.5

0.0

Return on Total Assets

(%)

2.1

0.4

Ordinary Income to Net Sales (%)

3.0

1.1

Note: Investment gain (loss) by equity method:Year ended March 31, 2010－

Year ended March 31, 2009

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

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio (%)
Net Assets per Share(yen)

March 31, 2010

March 31, 2009

171,044
55,60431.6
235.46

171,00251,69429.4
222.44

Note: Shareholders’ equity:Year ended March 31, 2010 ¥54,109 mil.

Year ended March 31, 2009 ¥50,214 mil.

1－

C. Cash Flows(Rounded down to millions of yen)

Year EndedYear Ended

March 31, 2010

March 31, 2009

Net Cash Provided by (used in) Operating Activities

7,326

8,960

Net Cash Provided by (used in) Investment Activities(4,320)(3,507)

Net Cash Provided by (used in) Financing Activities(2,080)(5,603)

Cash and Cash Equivalents at End of Period

6,614

5,609

Year EndedYear EndedYear ending

March 31,

March 31,

March 31, 2011

2010

2009

Forecast

Dividend per share (yen)End of fiscal year
Annual

0.00

0.00

－

0.00

0.00

－

Annual cash dividend per share
Payout ratio (%, consolidated)
Ratio of dividend to net assets(%, consolidated)

－
－
－

－
－
－

－

II. Dividends

Note: As we have yet to determine the specific expected dividend amount, forecasts for the fiscal year-end andfull year are indicated with a dash.

III. Forecast for the Fiscal Year Ending March 31, 2011 (April 1, 2010－March 31, 2011)(Rounded down to millions of yen, % indicates changes from the previous same period)

Net Sales

Operating

OrdinaryNet

Net Income per%

Income%Income%Income%Share (yen)Interim75,0007.6

2,200(13.0)

1,800(18.1)

700(56.2)

3.05

Annual151,000

1.1

3,500

(22.5)

2,600(28.9)

1,100(53.1)

4.79

IV. Others
A Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None.
B Changes in principle, procedure and method of statement of accounting procedures in preparation of
consolidated financial statements (as stated in “Changes in Important Basic Items for Preparing Consolidated
Financial Statements”)
1) Change which accompanies revision of accounting standards:
Yes2) Change other than No.1.
No(Note) For details, please refer to the “Changes in Important Basic Items for Preparing Consolidated
Financial Statements”, P26.

2

C Outstanding shares (common shares)
1) Outstanding shares (including treasury stocks)

As of March 31, 2010
229,849,936 shares
As of March 31, 2009
226,536,329 shares
2) Outstanding treasury stocks
As of March 31, 2010
44,223 shares
As of March 31, 2009
790,839 shares(Note) Please refer to P32 “Per Share Information” as to the number of shares which provides a base for calculating
net income per share (consolidated).

(Reference) Non-consolidated Financial Results
I. Financial Results for the Fiscal Year Ended March 31, 2010 (April 1, 2009－March 31, 2010)
A. Results of operations(Rounded down to millions of yen, % indicates changes from previous period)
Year EndedYear Ended

March 31, 2010%

March 31, 2009%

Net Sales

90,871

0.6

90,331

6.3

Operating Income

1,197

－

(327)

－

Ordinary Income

1,522

(3.6)

1,579

－

Net Income

1,607

44.8

1,110

－

Net Income per Share (yen)Non-diluted
Fully Diluted

7.05
6.99

4.92
4.83

B. Financial Position(Rounded down to millions of yen)March 31, 2010

March 31, 2009

Total Assets

123,238

122,725

Shareholders’ Equity

50,49547,359

Shareholders’ Equity to Total Assets Ratio

(%)

41.0

38.6

Shareholders’ Equity per Share(yen)

219.73209.79Note: Shareholders’ Equity
Year ended March 31, 2010 ¥50,495 mil.

Year ended March 31, 2009 ¥47,359 mil.

II. Forecast for the Fiscal Year Ending March 31, 2011 (April 1, 2010－March 31, 2011)(Rounded down to millions of yen, % indicates changes from the previous same period)
Net Sales

Operating

OrdinaryNet

Net Income%

Income%Income%Income%per Share (yen)Interim44,0008.2

500(58.8)

600(50.4)

200(82.3)

0.87

Annual

91,0000.1

700(41.6)

800(47.5)

500(68.9)

2.18

Cautionary statement: The forecast for operating results has been produced based on information presently available.

3

It is possible that in the future actual results may differ from the anticipated figures for a variety of reasons.
Please refer to page 6 for the matter concerning the above-mentioned expectation. For details of the dividend
policy, refer to “(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2010 and 2011” in “1.
Management Performance.”41. Management Performance(1) Analysis of Management Performance1) The Fiscal Period in Review
During the fiscal year under review, the Japanese economy showed some signs of bottoming out. Thiswas because of the economic measures implemented by the government and other factors following the economic
recession caused by the worldwide financial turmoil. However, personal consumption remained stagnant, due tothe impact that the strong yen had on corporate performance and the sense of uncertainty about the future causedby concerns over employment and other factors. Consequently, the business environment continued to bechallenging.
In the domestic agricultural machinery market, despite the effects of the economic recession, energy
conservation and low-cost agricultural businesses was prompted by Japan’s agricultural policy for raising its foodself-sufficiency ratio, and demand was stimulated by the urgent machinery-leasing support program and otherfactors. As a result, market demand for the most part was comparable to that of the previous year. On the other
hand, exports unavoidably fell dramatically, due primarily to the economic stagnancy in North America, Europe
and other regions, and the persistently strong yen.
Under these circumstances, the ISEKI Group made efforts to broaden its line of new products to meet theneeds of energy conservation and low-cost agricultural businesses working in concert with Japan’s agricultural
policy, and aggressively promoted sales activities.
(Consolidated business performance of the year under review)
In the fiscal year ended March 2010, net sales decreased ¥287 million from the previous period, to¥149,314 million (down 0.2% year on year). Among total sales, domestic sales of agricultural machinery decreased¥2,111 million year on year, as a reaction to the rush of demand before the price increases in the previous period.
Meanwhile, domestic sales increased by a total of ¥4,708 million from a year earlier, to ¥131,253 million (up 3.7%
year on year), as orders and completions primarily for large dryer facilities were favorable and brought about anincrease in revenue of ¥7,069 million in agricultural facilities. Overseas sales were ¥18,061 million, down ¥4,995
million (down 21.7% year on year) despite the continued strength of the Chinese market, due to the economic
stagnancy in other regions, the persistently strong yen and other factors.
Operating income surged ¥2,938 million from a year earlier to ¥4,515 million (up 186.2% year on year)
due to improved profitability, primarily achieved through an increase in retail prices, and lower selling, general andadministrative expenses and other factors.
Ordinary income increased ¥2,885 million from a year earlier, to ¥3,657 million (up 373.9% year onyear). Net income increased ¥2,345 million, to ¥2,347 million.
(Non-consolidated business performance of the year under review)
In the fiscal year under review, sales amounted to ¥90,871 million (up 0.6% year on year), operating
income was ¥1,197 million and ordinary income was ¥1,522 million (down 3.6% year on year). The Company
recorded net income of ¥1,607 million (up 44.8% year on year).

2) Sales by Product(Domestic)
Sales of machinery for soil preparation (tractors, high-clearance multipurpose vehicles, etc.) increased to5¥27,632 million (up 0.6% year on year), supported by strong sales of high-clearance multipurpose vehicles. Salesof cultivating machinery (rice transplanters and vegetable transplanters) declined to ¥11,442 million (down 14.3%
year on year), due to the lower sales of rice transplanters. Sales of harvesting and processing machines (combine
harvesters, vegetable harvesting machines and rice hulling machines) fell to ¥24,919 million (down 1.4% year onyear). Sales of spare parts and farming implements were ¥30,434 million (up 3.0% year on year). Moreover, salesof other agricultural related items were ¥28,389 million (up 30.8% year on year), while sales of agricultural
facilities were up marginally at ¥11,122 million (up 174.4% year on year). Other sales, however, declined to¥8,434 million (down 8.0% year on year).
(Overseas)
Sales of machinery for soil preparation declined to ¥11,569 million (down 34.5% year on year), due tothe impact of economic stagnancy primarily in North America and Europe and the persistently strong yen. Amongother product categories, sales of cultivating machinery and harvesting and processing machines continued to growin the Chinese market, with increases of ¥2,464 million (up 25.1% year on year) and ¥2,200 million (up 65.5% year
on year) respectively. Sales of spare parts and farming implements also increased to ¥1,059 million (up 7.4% year onyear).

3) Forecast for the Next Consolidated Fiscal Year
Although the production levels appear steady in response to the recovery in exports, personal
consumption continues to be slow against a backdrop of slow growth in the working population and income.
Therefore, we expect some more time will be required before the business climate makes a full-scale recovery. The
consumer sentiment to cut back on spending continues to affect the products sold on the market and the pressure tolower sales prices remains strong. Meanwhile, we project that the overall demand for agricultural machinery willremain flat, even though there are hopes that the business climate surrounding the agricultural industry will see
greater purchase motivation given the stimulation measures implemented to boost the food self-sufficiency rate
under the government’s agricultural policy.
Under such circumstances, we will try to secure sales by aggressive introduction of new products. In
celebrating the 85th anniversary of our foundation, .we expect to expand our domestic sales based on synergetic
effects obtained by continuously introducing new products in addition to the full-scale model changes to the
Combine Japan series, a flagship machinery lineup, and introduce electric mini-tillers for the new markets of home
vegetable patches and gardening, further enriching our services and reinforcing our sales capabilities even underfierce market competition.
Overseas, we expect to firmly establish the ISEKI brand in the continuously favorable China market andrecover our shipments to the North America region.

(2) Analysis of Financial Position
Total assets at the end of the fiscal year increased ¥42 million year on year, to ¥171,044 million. Looking
at a breakdown, current assets increased ¥149 million year on year. Noncurrent assets decreased ¥107 million from ayear earlier. Total liabilities decreased ¥3,868 million year on year, primarily due to declines in short-term loans
payable. Net assets increased ¥3,910 million year on year to ¥55,604 million, owing primarily to the increase in net
income. The equity ratio was 31.6%.
6

(Net cash provided by (used in) operating activities)

Net cash provided by (used in) operating activities provided a net cash inflow of ¥7,326 million (down¥1,633 million year on year), comprised principally of income before income taxes of ¥2,747 million anddepreciation and amortization of ¥5,140 million.

(Net cash provided by (used in) investment activities)
Net cash provided by (used in) investment activities resulted in a net cash outflow of ¥4,320 million (up¥812 million year on year), comprised principally of capital investment expenditure of ¥4,691 million.

(Net cash provided by (used in) financing activities)
Net cash provided by (used in) financing activities amounted to a net cash outflow of ¥2,080 million(down ¥3,523 million year on year), due primarily to the repayment of interest-bearing liabilities.

The trend of cash flow indicators is as follows.
Indicator

Mar. 31,Mar. 31,Mar. 31,Mar. 31,

2007

2008

2009

2010

Equity ratio

(%)

29.8

29.4

29.4

31.6

Market-based equity ratio

(%)

30.4

21.1

31.4

37.2

Cash flow/Interest-bearing liabilities Ratio (times)

64.6

15.0

5.7

6.3

Interest coverage ratio

0.9

3.3

7.6

7.1

(times)・ Equity ratio: Shareholders’ equity / Total assets
・ Market-based equity ratio: Total market price of shares / Total assets
・ Cash flow/Interest-bearing liabilities ratio: Interest-bearing liabilities / Operating cash flow
・ Interest coverage ratio: Operating cash flow / Interest payments
Notes: 1. All figures have been calculated using consolidated-based financial figures.
2. The total market price of shares is the product of the per-share closing price at the end of the period
and the total number of shares outstanding (less treasury stocks) at the end of the period.
3. The Operating cash flow uses the Net Cash Provided by (Used in) Operating Activities as per theConsolidated Statements of Cash Flows. Interest-bearing liabilities use all the loans payable andbonds as recorded in the Consolidated Balance Sheets. The Interest payments use the interest paid
as recorded in the Consolidated Statements of Cash Flows.
(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2010 and 2011
We recognize that the method for determining dividends to be paid to shareholders is one of the mostimportant policies to be made. Our basic policy is to keep steady and improved dividend distribution, taking into
consideration, not just consolidated financial results, but our Group’s financial position and future businessmovements.
With respect to dividends for the fiscal year ended March 31, 2010, we have decided not to pay year-end
dividends in light of the Company’s performance..
With respect to dividends for the fiscal year ending March 31, 2011, we have yet to decide the dividends,
given the rise in production material prices and the uncertainty of the business climate going forward, including the7instability of the euro, US dollar and other currencies. We will inform our shareholders as soon as we are able toforecast our future business performance. We are determined to take the necessary steps in order to reinforce a basisof earnings so that we will be able to secure profit stability, aiming at the earliest possible resumption of dividend.

(4) Risks Which Could Affect Our Business
Latent risks and uncertainties which could affect our future financial performance are exemplified as
below:
1) Economic Conditions and Changes in the Environment of Agriculture
Sluggishness of domestic and/or overseas economic conditions and any change in the agriculture policy
may negatively affect our financial performance through reduced demand for agricultural machinery.
2) Exchange Rate Fluctuation
There is a possibility that fluctuation of foreign exchange may negatively affect our financial
performance.
3) Hike in Interest Rates
There is a possibility that a hike in interest rate may harm our financial performance.
4) Stock Market Fluctuation
As we hold securities, stock price declines may cause a loss.
5) Competition with Other Companies
We are involved in fierce competition with other companies in the market, and unless overall productcompetitiveness, including relevant services, is maintained, there is the possibility of a decline in our
performance.
6) Risks Derived from International Business
Unexpected changes in tax and legal systems or political unrest of any particular country may cause harm
to our financial performance.
7) Dependency on Specific Customers or Suppliers
Any change of business policy, business depression and failure of our specific customers or suppliers
may harm our financial performance.
8) Serious Defects in Products and Services
The occurrence of serious defects in our products or services may negatively affect our financial
performance.
9) Government Regulation on Environmental Issues, etc., and Occurrence of Related Difficulties
Substantial costs may be incurred related to our products or business activities due to necessitatedresponses to public regulation of environmental issues etc., corrective measures undertaken upon theoccurrence of troubles, lawsuits and other situations which could lead to a deterioration of our financial
performance.
10) Risk of Natural Disasters and Accidents
Earthquakes, typhoons or unexpected accidents may occur, which may do harm to our financial
performance.
11) Risk of Legal Violation
In offering products and service of ISEKI Group, we are subject to provisions of laws such thetruth-in-advertising laws and the JIS law, etc. In purchasing raw materials, the Antitrust Law as well as the
Subcontract Law requires fair and transparent dealings. Also application of environmental laws requires
compliance-oriented management, and we are determined to dedicate ourselves to accomplish complete legal
compliance, by preparing an internal control system. In spite of such efforts, if any of our directors and/or
employees should conduct themselves in any way that violates laws and regulations, there is a possibility thatthe business activities of our group will be restrained causing increased costs or decreased revenues, leading
to deteriorated performance.
12) Debt
We have concluded syndicate loan or commitment line contracts with financial institutions. Should any of
the financial conditions of these contracts be triggered, we could face obligations to pay back some or all of8these loans, which could negatively affect the financial position of the Company.
The forecasts for future results and target figures produced by Iseki & Co., Ltd., are based on information available
as the day of this announcement, and assumptions made as of the same day regarding a number of latent risks anduncertainties that could affect future financial performance. Actual results could differ considerably depending on
economic conditions, market trends, and future conditions for business operations hereafter.

92. The Iseki GroupThe main business of the Iseki Group is the development, manufacture and sale of agricultural
machinery for rice and vegetable farming, among other related areas. We also market consumer-oriented products
and are engaged in the development of other businesses.
Below is a diagrammatic representation of the Iseki Group.
(Agricultural Machinery)
The Company primarily handles the development and design of agricultural machinery.
Six companies, including Iseki-Matsuyama Mfg. Co., Ltd. and Iseki-Kumamoto Mfg. Co., Ltd., handle ouragricultural machinery manufacturing and component processing activities, and 13 domestic sales companies
market and sell the machinery across the country. Overseas marketing operations are handled by local distributors
and affiliates as well as a wholly owned subsidiary in China, Iseki–Changzhou Mfg. Co., Ltd.
(Other Businesses)
Isec Co., Ltd. markets consumer-oriented products. System Equipment Co., Ltd. provides information processing
services.
Following is a schematic diagram of the Iseki Group.

(A g ri c uDomestic Users & Customers

l t u r

a l

M

a c h

i n e r y)

(Other Businesses)

Consumer-oriented products, and other

Overseas Users &Customers

Sales

Sales

Consolidated Subsidiaries:

Subsidiary
N.V. ISEKI EUROPE S.A.
(Belgium)

Iseki-Hokkaido Co., Ltd.
Iseki-Tohoku Co., Ltd.
and 11 other companies

Consolidated Subsidiary:
Iseki BUTSURYU Co., Ltd.

Sales

Products& Parts

Products& Parts

Agricultural Machinery

Others

ISEKI
Parts

Products & Parts

Consolidated Subsidiary：

Consolidated Subsidiaries:

Iseki - Changzhou Mfg. Co., Ltd.

Iseki-Matsuyama Mfg. Co., Ltd.

(China)Iseki-Kumamoto Mfg. Co., Ltd.

Transport

and 5 other companiesi10←Consolidated Subsidiaries：
Isec Co., Ltd.
System Equipment Co., Ltd.

3. Iseki’s Management Policies(1) Iseki’s Basic Management Principles
ISEKI, celebrating its 85th anniversary this year, has been contributing to the modernization of Japan’s
agricultural industry as a full-line manufacturer specializing in agricultural machinery. Over this time, we haveconsistently pursued efficient and labor-saving advances in agriculture, and have served the market by pioneering thedevelopment of a quantity great deal of agricultural machinery and facilities.
When we consider the questions of an increasing world population and food supply, and then our own
nation’s food self-sufficiency and land preservation, our role to serve the farming sector becomes important and our
duty to society as a manufacturer of agricultural machinery becomes even more significant.
ISEKI will continue to operate under a basic business philosophy of “providing products that delight ourconsumers” so that the Company can contribute to agriculture, both in Japan and throughout the world.
To reach this goal, our highest priority objectives are “to promote our brand name products, to improve
quality, to accelerate cost-cutting measures and to strengthen our service”. We are aiming for a corporate culture thatcan maintain a stable operating performance and will continue in our efforts to reform our profit structure.

(2) Long-term Management Strategies
Positioning the agricultural industry and agricultural machinery as the basis of our business, we will
support energy conservation and low-cost agriculture with the goal of contributing to the development of agriculture
in Japan and the world. Our basic strategies are as follows.
(a) The expansion of overseas sales(b) To secure 20% share of the domestic agricultural machinery market(c) To strengthen product competitiveness further(d) To improve consolidated financial position by strengthening earning power and cash flow(3) Issues to Be Addressed
1) Group internal control(a) Compliance-oriented management
Fundamental Stance on and Preparation for Internal Control System
Positioning the firm establishment of the Group internal control system as one of the priory issues ofmanagement policy, we have determined a fundamental policy for our internal control system, based on which wehave established an internal control system and revised it as necessary. Regarding the internal control system, toensure the efficient execution of directors’ duties, we have not merely prepared various regulations and systems suchas job assignment and internal control regulations. Rather, important issues are discussed multilaterally and arereviewed at meetings attended by management. Furthermore, we have a system in place that oversees any
information related to job execution, such as minutes to Board of Directors’ meetings and documents presented
before the Board of Directors and management for approval concerning regulations.
In terms of a compliance system, we created a companywide “compliance team” under the supervision of
the director in charge of compliance, in 2007. We endeavor to prevent any occurrence of injustice and misconduct byensuring a full understanding of compliance on the part of all directors and employees by continuously holding
11

compliance seminars under the direction of compliance team.
As an organization concerned with internal control, we created a “Management Control Section” under
the control of the Head of the Development & Production Division in 2007, which assumed the ordinary monitoring
function of our manufacturing subsidiaries. Thus, we intend to strengthen the control function of our manufacturingsubsidiaries.
Sales and other subsidiaries handle internal auditing on their own, as each Group company has a separate
internal auditing function. Furthermore, we created a “Management Control Section” under the Head of the Business
Division in 2007, which inspects the degree of implementation of internal auditing and gives guidance whennecessary.
We also created a “Management Supervisory Committee” in 2007, with the president as chairperson, thedirectors as members and all auditors as observers, so that we can follow the discussion of various measures andtheir level of progress, as well as check the degree of thoroughness of compliance.

(b) Rejection of antisocial forces
i. Fundamental stance on rejection of antisocial forces
We actively work against any possibility of a relationship with antisocial forces or groups, manifesting thepolicy in the “ISEKI Group Code of Ethical Behavior”.
ii. State of preparation for rejecting antisocial forces
To establish corporate ethics of ISEKI and the Group companies, we show action guidelines regarding
antisocial forces in the “ISEKI Group Code of Ethical Behavior” and we have prepared the following systems toreject antisocial forces and relevant activities.
a. The General Affairs Department is in charge of antisocial forces measures and, depending on thecircumstances, acts in consultation with the relevant departments and sections.
b. The Company has established a system to cope with antisocial forces based on maintaining normal contact
and association with external organizations such as the police department and the National Center for the
Elimination of Boryokudan and lawyers.
We also belong to the Metropolitan Area Violation Prevention Association and receive regular guidance aswell as share information.

2) Important issues
In the midst of a drastically changing market environment, we will accelerate the reform of our earnings
structure, which will enable us to secure stable earnings for the foreseeable future. Along with our efforts to expand
sales through enhanced customer satisfaction by providing high-quality products and services that support energy
conservation and low-cost agriculture from a customer perspective, we endeavor to establish a low-cost structure andstrengthen consolidated financial stability.

(a) Growth in domestic sales and expansion of overseas sales
In the face of intensifying competition in the market, we have positioned “Growth in domestic sales andexpansion of overseas sales” as our most important managerial issues, trying to attain comprehensive enhancementof efficiency, quality, price and service by concentrating on the total group potentiality to strengthen our product12

competitiveness. We will not only carry out fundamental quality improvement in our products, fully recognizing
market needs, but also ensure that product planning and introduction to the market are executed in a timely manner.
In the domestic market, we aim at achieving sales growth through efficient sales promotion, taking advantage of
agile sales companies with extensive territories, as well as through further enhancement of customer satisfaction
from strengthened sales and service performance. In our efforts to expand overseas sales, we will endeavor to fortify
our sales and service system in the Asian market, which has growth potential, and plan to increase sales and firmly
establish ourselves in Asia. In North American and European markets, the currencies of which have depreciatedagainst the yen, we will seek to expand sales through the introduction of new products.

(b) Upgrading quality and cost structure reform
Our first priority lies with products that garner a high reputation among our customers, as we are
improving our development process in the pursuit of zero defects. Our development and manufacturing operations
are working together to improve the production process and establish a framework that guarantees product quality. .
To reform our cost structure, we have established a cost reduction committee and are taking steps tofundamentally improve earnings. Since cost structure reform is the source of greater profits, we will work to reduce
procurement costs by combining all of our plants to implement optimum procurement methods. In productdevelopment, we will implement fundamental cost reductions starting with the early development phase, striving todecrease the number of parts, reduce weight, and cut the number of parts that must be managed. For our production
structure, we have implemented structural reforms, including restructuring, to streamline our organization.
Throughout the Group, we will endeavor to secure our profitability by cutting fixed costs and reducing
administrative losses and operating expenses.

(c) Creating a “Communicative corporate culture” by nurturing personnel
Through the efforts of the Personnel Revitalization Committee, the Company is trying to improve its lineof communication, thereby revitalizing its employees. The Company is considering and implementing various
methods, including appropriate job rotations, the exchange of personnel between organizations, and conducting
training and education programs.
Moreover, we aim to address a number of environmental issues, which we regard as key managerial issues.
We will strengthen our commitment to conserving resources, saving energy, recycling, reducing greenhouse gas
emissions and noise pollution, among other efforts.

134. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)
FY2009(as of Mar. 31, 2009)

FY2010(as of Mar. 31, 2010)

AssetsCurrent Assets:
Cash and deposits

5,708

6,705

Notes and accounts receivable-trade

28,73429,320

Short-term investment securities

280

19

Merchandise and finished goods

37,944

37,136Work in process

2,696

3,219

Raw materials and supplies

1,336

1,114

353

963

Others

3,638

2,356

Allowance for doubtful accounts

(79)

(74)

80,61180,761

Buildings and structures, net

15,638

14,835

Machinery, equipment and vehicles, net

8,636

7,832

Tools, furniture and fixtures, net

2,822

2,486

Land

50,46350,190

Lease assets, net

1,869

3,692

Construction in progress

533

643

Other, net

241779,98879,697

842

883

4,647

5,272

Long-term loans receivable

178

175

Deferred tax assets

751

724

Other

4,455

3,985

Allowance for doubtful accounts

(473)

(455)

Total investments and other assets

9,559

9,702

Total Noncurrent Assets

90,39090,283

171,002

171,044

Deferred tax assets

Total Current Assets
Noncurrent Assets:
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

Total Assets

14

(millions of yen)
FY2009FY2010(as of Mar. 31, 2009)(as of Mar. 31, 2010)

Liabilities
Current Liabilities:
Notes and accounts payable-trade

43,801

41,773

Short-term loans payable

20,98015,846

Current portion of bonds

1,485

1,060

Current portion of long-term loans payable

10,395

13,376

Lease obligations

481

1,107

Accrued consumption taxes

313

449

Income taxes payable

715

753

Deferred tax liabilities

－

25

3,494

4,237

429

416

3,396

2,724

85,493

81,770Bonds payable

1,060

－

Long-term loans payable

16,74815,958

Lease obligations

1,568

2,937

337

417

Deferred tax liabilities for land revaluation

7,595

7,595

Provision for retirement benefits

4,829

5,084

Provision for directors' retirement benefits

380

155

Negative goodwill

12

11

1,283

1,509

33,814
119,308

33,669115,439

Capital stock

22,784

23,344

Capital surplus

12,815

13,454Retained earnings

4,072

6,076

Treasury stock

(185)

(13)

39,48642,862212

385

10,527

10,869Foreign currency translation adjustment

(11)

(7)

Total Valuation and Translation
Minority interests

10,728
1,479

11,247
1,494

Total Net Assets
Total Liabilities and Net Assets

51,694
171,00255,604
171,044

Accrued expenses
Provision for bonuses
Other
Total Current Liabilities
Noncurrent Liabilities:

Deferred tax liabilities

Other
Total Noncurrent Liabilities
Total Liabilities
Net Assets
Shareholders’ equity

Total Shareholders’ Equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Revaluation reserve for land15

(2) Consolidated Statements of Income(millions of yen)
FY2009(Apr. 1, 2008Mar. 31, 2009)

FY2010(Apr. 1, 2009Mar. 31, 2010)

Net sales

149,601

149,314

Cost of sales

103,736

101,925

Gross profit

45,86547,38944,28742,873

1,577

4,515

Interest income

269

224

Dividends income

175

102

Amortization of negative goodwill

270

Subsidies received

140

114

Rent income

138

150

Sales of scrap

203

74

Other

624

376

1,579

1,044

Interest expenses

1,155

1,035

Sales discounts

139

111

Foreign exchange losses

158

82

Loss on abandonment of inventories

579

385

Other

353

286

2,384

1,902

771

3,657

Gain on sales of noncurrent assets

61

87

Gain on sale of investment securities

144

2

Gain on sales of subsidiaries' stocks

351

－

Other

39

－

596

89

Loss on sales and retirement of noncurrent assets

257

185

Impairment loss

18

424

Loss on valuation of investment securities

109

18

Loss on valuation of golf club membership0

1

Directors' retirement benefits

14

4

Provision for directors' retirement benefits for prior periods

144－

Selling, general and administrative expenses
Operating income
Non-operating income

Total non-operating income
Non-operating Expenses

Total non-operating expenses
Ordinary income
Extraordinary Income

Total extraordinary income
Extraordinary Loss

16

Environmental expenses－

119

Cost of measures for product recall

278

240

Other

87

6

911

1,000

Income before income taxes

457

2,747

Income taxes-current

881

1,002

Refund of income taxes for prior periods

(72)

－

Income taxes-deferred

(353)

(604)

Total income taxes

455

397

Minority interests in income (loss)

(0)

2

2

2,347

Total extraordinary losses

Net Income17(3) Consolidated Statements of Changes in Net Assets(millions of yen)
FY2009FY2010(Apr. 1, 2008-(Apr. 1, 2009-

Mar. 31, 2009)

Mar. 31, 2010)

Shareholders’ Equity
Capital Stock
Balance at the end of previous period

22,78422,784

－

559

－

559

22,784

23,344

12,815

12,815－559

Disposal of treasury stock－78

Total changes of items during the period－

638

12,815

13,454

4,081

4,072

2

2,347

Change of scope of consolidation

(11)

－

Reversal of revaluation reserve for land

－

(342)

Total changes of items during the period

(9)

2,004

4,072

6,076

(167)

(185)

Purchase of treasury stock

(18)

(23)

Disposal of treasury stock－

196

Total changes of items during the period

(18)

172

(185)

(13)

Changes of items during the period
Issuance of new shares- exercise ofsubscription rights to shares
Total changes of items during the period
Balance at the end of period
Capital Surplus
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise ofsubscription rights to shares

Balance at the end of period
Retained Earnings
Balance at the end of previous period
Changes of items during the period
Net income

Balance at the end of period
Treasury Stock
Balance at the end of previous period
Changes in items during the period

Balance at the end of period18

Total Shareholders’ Equity
Balance at the end of previous period

39,514

39,486

－

1,119

2

2,347

Purchase of treasury stock

(18)

(23)

Disposal of treasury stock－

275

Change of scope of consolidation

(11)

－

Reversal of revaluation reserve for land

－

(342)

Total changes of items during the period

(28)

3,375

39,48642,862

907

212

(695)

172

(695)

172

212

385

10,527

10,527

－

342

－

342

10,527

10,869

31

(11)

(42)

3

Total changes of items during the period

(42)

3

Balance at the end of period

(11)

(7)

11,466

10,728Changes of items during the period
Issuance of new shares- exercise ofsubscription rights to shares
Net income

Balance at the end of period
Valuation and Translation Adjustments
Valuation difference on available-for-salesecurities
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period
Revaluation Reserve for Land
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period
Foreign Currency Translation Adjustment
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'equityTotal Valuation and Translation Adjustments
Balance at the end of previous period
Changes of items during the period
19

Net changes in items other than shareholders'equity(738)

519

Total changes of items during the period

(738)

519

Balance at the end of period

10,728

11,247

1,575

1,479

(95)

15

Total changes of items during the period

(95)

15

Balance at the end of period

1,479

1,494

52,556

51,694

－

1,119

2

2,347

Purchase of treasury stock

(18)

(23)

Disposal of treasury stock－

275

Change of scope of consolidation

(11)

－

Reversal of revaluation reserve for land

－

(342)

(834)

534

(862)

3,910

51,69455,604

Minority Interests
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'equityTotal Net Assets
Balance at the end of previous period
Changes in items during the period
Issuance of new shares- exercise of subscription
rights to shares
Net income

Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period20(4) Consolidated Statements of Cash Flows(millions of yen)
FY2009(Apr. 1, 2008Mar. 31, 2009)

FY2010(Apr. 1, 2009Mar. 31, 2010)

Net Cash Provided by (Used in) Operating Activities:
Income before income taxes

457

2,747

Depreciation and amortization

4,677

5,140

Impairment loss

18

424

Amortization of negative goodwill

(27)

(0)

Increase (decrease) in provision for retirement benefits

733

255

Loss (gain) on sales of investment securities

(138)

2

Loss (gain) on sales of subsidiaries' stocks

(319)

－

0

1

Interest and dividend income

(444)

(327)

Interest expenses

1,155

1,035

Foreign exchange losses (gains)

(183)

(72)

Loss (gain) on sales of property, plant and equipment and

196

98

Decrease (increase) in notes and accounts receivable-trade

(352)

(586)

Decrease (increase) in inventories

258

506

Increase (decrease) in notes and accounts payable-trade

3,452(2,028)

Other

1,119

1,517

Subtotal

10,601

8,713

441

331

Interest expenses paid

(1,171)(1,031)

Income taxes paid

(1,026)(1,111)

116

424

8,960

7,326

Purchase of short-term investment securities

(122)

(19)

Proceeds from sales of short-term securities

53

240

(5,086)(4,691)376

298

Purchase of investment securities

(206)

(315)

Proceeds from sales of investment securities

531

30

change in scope of consolidation

694－

Decrease (increase) in loans receivable

113

Loss on evaluation of golf club memberships

intangible assets

Interest and dividends income received

Income taxes refund
Net cash provided by (used in) operating activities
Net Cash Provided by (Used in) Investment Activities:

Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets

Proceeds from sales of investments in subsidiaries resulting in

21

Decrease (increase) in time deposits

(3)

7

Other

243

124

(3,507)(4,320)

Increase (decrease) in short-term loans payable, net(3,999)(5,137)

Proceeds from long-term loans payable

8,260

14,610

Repayment of long-term loans payable(10,899)(12,418)

Redemption of bonds

(100)

(90)

Proceeds from sell and leaseback transactions

1,259

1,598

Repayments of lease obligations

(93)

(606)

Purchase of treasury stock

(18)

(23)

Other

(11)

(12)

Net cash provided by (used in) financing activities(5,603)(2,080)Effect of Exchange rate Change on Cash and Cash

73

78

Net Increase (Decrease) in Cash and Cash Equivalents

(77)

1,004

Cash and Cash Equivalents at Beginning of Period

5,687

5,609

Cash and Cash Equivalents at End of Period

5,609

6,614

Net cash provided by (used in) investment activities
Net Cash Provided by (Used in) Financing Activities:

Equivalents22(5) Notes Regarding the Going Concern Assumption
Not applicable(6) Important Basic Items for Preparing Consolidated Financial Statements
1) Scope of consolidation
Number of consolidated subsidiaries……….24 companies(including Iseki-Matsuyama Mfg. Co., Ltd., Iseki-Kumamoto Mfg. Co., Ltd., Iseki-Hokkaido Co., Ltd. andIseki-Tohoku Co., Ltd.)
Based on the mergers, the number of consolidated subsidiaries declined by 2.

2) Scope of the equity method companies
The equity method is not applied to any of the group companies.
3) Consolidated accounting period
Of the consolidated subsidiaries, 14 companies (including Iseki-Hokkaido Co., Ltd.) use an
end-of-period balance sheet date of December 31. 10 companies (including Iseki-Matsuyama Mfg. Co., Ltd.)use a balance sheet date of March 31. With regard to the preparation of the consolidated financial statements,
the financial statements as of the balance sheet dates of respective companies are used. And necessary
adjustments at consolidation are made for any significant transactions that occurred between the consolidatedbalance sheet date and these dates.
4) Accounting policies(1) Valuation basis and methods of important assets(a) Securities
Held-to-maturity debt securities ..................... recorded at amortized cost
Available-for-sale securities- Securities with fair market value………. recorded at market value, based on the fair market priceat the closing date of the consolidated reporting period.
(Any estimate variance is credited or debited toShareholders’ Equity)- Securities without fair market value........ recorded at cost, based on the moving-average method(b) Inventories………………………………….. .mainly recorded at cost using the gross average method(Balance sheet amounts for items with reduced
profitability have been adjusted downward accordingly)(c) Derivatives........................................................ recorded using the market value method(2) Depreciation methods for material depreciable assets(a) Property, plant and equipment (excluding lease assets)
The straight-line method is used to depreciate tools. For others, the declining-balance method is used.
However, for new buildings (not including buildings and accompanying facilities) acquired on or after
April 1, 1998, the straight-line method is used.
23

(b) Intangible assets (excluding lease assets)
Straight-line method is used. However, software for internal use is depreciated using the straight-line
method over an expected useful life within the company of five years, while software for marketing isdepreciated using the straight-line method over an expected marketable period of three years.
(c) Lease assets
Lease assets derived from finance leases other than those leases which transfer the ownership of theassets to the lessee are amortized using straight-line method with no residual value over the lease
period, which is deemed the useful life.
Among finance leases that do not involve transfer of ownership to lessee, leases that began before
April 1, 2008 are accounted for as normal operating leases.

(3) Allowances and reserves(a) Allowance for doubtful accounts
A likely unrecoverable amount is calculated by applying the historical bad debt ratio to common
receivables. For specific receivables, such as doubtful debt receivables, allowances are made byindividually evaluating the likelihood of them being collected.
(b) Provision for bonuses
To provide for future bonus payments to employees, a provision for bonuses is booked based on
estimated future payments.
(c) Provision for retirement benefits
Provision for retirement benefits is recorded as at the end of the consolidated accounting period, and isprincipally based on the amounts for the obligation for employees' retirement benefits and pension plan
assets. Disparities arising out of changes to accounting standards are expensed pro rata over 15 years.
Past service liabilities are amortized using the straight-line method over the average of the estimatedremaining years of service. Actuarial differences are amortized using the straight-line method over the
average of the estimated remaining years of service, with the first expense being recognized in thefollowing consolidated fiscal period.
(d) Provision for directors’ retirement benefits
Some of the consolidated subsidiaries record the directors’ retirement benefits to provide for directors'
retirement benefits in an amount as required by companies’ internal regulations.

(4) Accounting standards for revenues and expenses(a) Accounting standards for the value and cost of completed construction contracts
The percentage-of-completion method is applied for construction in progress up to the end of theconsolidated accounting period, for which the outcome can be estimated reliably (the proportional
cost method is applied for estimating the percentage of progress of the construction). The
completed-contract method is applied for other constructions.

(5) Foreign currency translation
Monetary assets and liabilities in foreign currencies are translated into yen at the rates of exchange in effect24

at the balance sheet date. Gains or losses resulting from the translation are credited or charged to income.
Balance sheet accounts (except for shareholders’ equity) and revenue and expense accounts of the overseas
subsidiary are translated into yen at the rates of exchange in effect at the balance sheet dates. Differences
arising from the translation are presented as “Foreign currency translation adjustment” in shareholders’equity and financial statements.

(6) Hedge accounting(a) Hedge accounting
Recorded in accordance with deferred hedge accounting. Such receivables and payables, which aredenominated in foreign currencies and for which forward exchange contracts have been entered, arerecorded using the forward exchange rates.
(b) Hedging instruments and hedged items(i) Hedging instruments
Forward exchange contracts and interest rate swap agreements(ii) Hedged items
Receivables and payables denominated in foreign currencies and borrowings(c) Hedging policies
Forward exchange contracts and interest rate swap agreements are entered into in order to hedge therisks associated with fluctuations in foreign currencies exchange rates and interest rates.

(7) Other notes pertaining to the preparation of the Consolidated Financial Statements
Accounting treatment of consumption tax
Consumption tax and local consumption taxes are accounted for using a tax-exclusive method.

5) Evaluation of consolidated subsidiaries’ assets and liabilities
The market value method is used to value the consolidated subsidiaries’ assets and liabilities.

6) Amortization of goodwill and negative goodwill
The consolidation adjustment account is amortized by the straight-line method over a period of no longer than 20
years.

7) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks with draw able on demand, andshort-term investments which are readily convertible to cash subject to an insignificant risk of any change in theirvalue and which were purchased with an original maturity of three months or less.

(7) Changes in Important Basic Items for Preparing Consolidated Financial Statements
1) Application of accounting standards for construction contracts
Effective the consolidated accounting period, the Company has adopted “Accounting Standard for Construction
Contracts” (Accounting Standards Board of Japan (ASBJ) Statement No. 15, December 27, 2007) and25

“Implementation Guidance on Accounting Standard for Construction Contracts” (ASBJ Implementation
Guidance No. 18, December 27, 2007).
This change had no impact on profit and loss.

2) Application of partial amendments to accounting standard for retirement benefits (part 3)
Effective the consolidated accounting period, the Company has adopted “Partial Amendments to AccountingStandard for Retirement Benefits (Part 3)” (ASBJ Statement No. 19, July 31, 2008).
This change had no impact on profit and loss.

(8) Notes to the Consolidated Statements(Consolidated Balance Sheets Information)

FY2009FY2010
Accumulated depreciation of
1. property, plant and equipment
88,762 million yen
91,216 million yen
2. Guaranteed liabilities
9,531 million yen
8,526 million yen
3. Notes receivable less discount-trade- million yen
46 million yen
4. Endorsed notes receivable-trade
431 million yen
386 million yen
5. Revaluation of land for business use
Iseki has revalued its land for business use pursuant to the law (Law No. 19, announced on March 31,
2001) which revises parts of the law relating to the revaluation of land. The equivalent tax related tothe change in the said revaluation has been recorded in the liabilities (fixed liability) as a "Deferred tax
liability from land revaluation" and the deducted amount has been recorded under assets as"Revaluation reserve for land".
・ Revaluation method
・・・・・The revaluation of land has been determined using a reasonableadjustment to the assessed value of the noncurrent assets for property
tax as stipulated in Paragraph 3, Article 2 of the enforcement order(Government ordinance number 119, announced on March 31,1998).
・ Revaluation date・・・・・March 31, 2001
・ Variance between themarket value of therevalued land at the end of・・・・(10,256 million yen)
the period and therevalued book value(Consolidated Statements of Income Information)

1. Research and development expenses

FY2009FY20104,106 million yen

4,025 million yen

2 . Impairment loss
FY2009 (April 1, 2008-March 31, 2009)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage
Idle property

Type
Buildings, land
Land
Land
Land
Total

Location
Gamo, Shiga Pref.
Yonago, Tottori Pref.
Mitoyo, Kagawa Pref.
Kirishima, Kagoshima Pref.

26

Impairment loss
4
3
6
3
18

(Reason to recognized impairment loss)
We realized impairment loss of the above assets as they are not being used, with no prospect to be used in the
future, and besides, market price of the land is declining.

(Measurement of recoverable amount)
Recoverable amount is measured using net selling price. In case of land, the price is determined by applying
reasonable adjustments to the assessed value of noncurrent assets for property tax.

FY2010 (April 1, 2009-March 31, 2010)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage

Type

Idle property

Property loaned out

Location

Impairment

Land

Yokkaichi, Mie Pref.

15

Land

Yonago, Tottori Pref.

1

Land

16

Land

Mitoyo, Kagawa Pref.
Kuma, Kumamoto Pref.

Land

Kitamorokata, Miyazaki Pref.

1

Land
Land

Kirishima, Kagoshima Pref.

2

Kunisaki, Oita Pref.

12

Land

Kumamoto, Kumamoto Pref.

361

11

Total

424

(Reason to recognized impairment loss)
The Company recorded an impairment loss on the above assets. This is because idle properties are not being usedand have no prospect for use in the future. In addition, the market price of land is declining for idle properties andproperties loaned out.

(Measurement of recoverable amount)
Recoverable amount is measured using net selling price. In case of land, the price is determined by applying
reasonable adjustments to the assessed value of noncurrent assets for property tax.

(Consolidated Statements of Changes in Net Assets Information)
FY2009 (Apr. 1, 2008-March 31, 2009)1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury stock(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

Number of shares(as of Mar. 31, 2008)

Increase in numberof shares during
periodDecrease in numberof shares during
periodNumber of shares(as of Mar. 31, 2009)

226,536,329——

226,536,329

711,50979,330—790,839

Increase in the number of shares, 79,330 shares during the period was by purchasing of shares below stock trading
unit.

27

FY2010 (Apr. 1, 2009-March 31, 2010)1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury stock
Number of shares(as of Mar. 31, 2009)

Increase in numberof shares during
periodDecrease in numberof shares during
periodNumber of shares(as of Mar. 31, 2010)

226,536,329

3,313,607—

229,849,936

790,839

66,993

813,60944,223(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

There was an increase of 3,313,607 shares in outstanding shares of common stock and a decrease of 813,609 sharesin treasury stocks of common stock. These occurred because we exercised subscription rights for convertiblebond-type bonds with subscription rights to shares. Meanwhile, treasury stock of common stock increased by 66,993
shares because shares below stock trading unit were purchased.

(Consolidated Statements of Cash Flows Information)
Reconciliation between cash and cash equivalents at the end of period and the amount reported in the Consolidated
Balance Sheets.
FY2009Cash and deposits

FY20105,708 million yen

6,705 million yen

3 months or more(98) million yen(90) million yen

Total cash and cash equivalents

5,609 million yen

6,614 million yen

Time deposits with terms of(Segment Information)
1. Business Segment Information
For this period (April 1, 2009 – March 31, 2010) and the previous period (April 1, 2008 – March 31, 2009),
the total sales, operating income, and total assets of the “Agricultural machinery related operations” segment
accounted for more than 90% of all segments. Accordingly, the breakdown of segment information by businesstype is not presented.

2. Geographical Segment Information
For this period (April 1, 2009 – March 31, 2010) and the previous period (April 1, 2008 – March 31, 2009), thetotal sales and total assets of the “Japan” segment accounted for more than 90% of all segments. Accordingly, thebreakdown of segment information by region is not presented.

28

3. Overseas Sales Information
FY2009 (April 1, 2008 – March 31, 2009)(millions of yen)
The
UnitedStatesI

Overseas sales

II

Consolidated net sales

III Overseas sales as a percentage ofconsolidated net sales(%)

EuropeOthers

Total

6,698

10,012

6,345

23,056－－－

149,601

4.5

6.7

4.2

15.4

FY2010 (April 1, 2009 – March 31, 2010)(millions of yen)
The
UnitedStatesI

Overseas sales

II

Consolidated net sales

III Overseas sales as a percentage ofconsolidated net sales(%)

EuropeOthers

Total

4,201

7,294

6,566

18,061－－－

149,314

2.8

4.9

4.4

12.1

(a) Countries and regions are defined based on geographical proximity.
(b) Classification by Area
Europe: France, Germany, the United Kingdom, Belgium, Switzerland, the Netherlands, etc.
Other geographical areas: South Korea, Taiwan, China, Thailand, Australia, New Zealand, etc.

29

(Per Share Information)(yen)
FY2009FY2010Net assets per share

222.44235.46

Net income per share

0.01

10.29

Net income per share after adjustment for dilutive securities

0.01

10.21

(Note) Basis of calculation of net income per share and net income per share after adjustment for dilutive
securities are as follows.
FY2009FY2010Net income per share
Net income per share on consolidated statements of income

2

2,347

(millions of yen)
Net income attributed to common shares(millions of yen)

2

2,347

Net income not attributable to common shares(millions of yen)－－(shares)

225,783,398

227,997,350(millions of yen)－－(shares)

4,127,218

1,842,285(4,127,218)(1,842,285)－－

During period average number of common shares

Net income per share after adjustment for dilutive securities
Adjustment of net income
Increased number of common shares(Subscription rights, shares)
Outline of deferred equity which was not included in the calculation of
net income per share after adjustment for dilutive securities as it does
not have dilutive effect(Omission from Disclosure)
The following items of note were omitted from disclosure as the necessity of disclosure in summary
announcement of financial results is not considered big.
-

Lease commitments-

Transactions with parties concerned-

Tax effect accounting-

Financial instruments-

Securities-

Derivative transactions-

Retirement benefits-

Corporate union etc.

-

Real estate for rent

Also, the following items are omitted from disclosure as they have no corresponding fact.
-

Stock options-

Important issues which occurred later30

Production, Orders & Sales
1.

Production results per product–type(millions of yen)
Change from previous
period

FY2009FY2010(Apr. 1, 2008-Mar. 31, 2009)(Apr. 1, 2009-Mar. 31, 2010)

Machinery for soil
preparation

43,34841,284(2,063)Cultivating machinery

21,452

16,734(4,718)30,057

27,854(2,203)

2,318

2,248

(70)

6,350

12,1705,820

Others

890

189

(700)

Total

104,417

100,481(3,936)

Product-type

Harvesting andprocessing machinery
Parts and farming
implements
Agricultural machinery
related businessNote: Figures are shown in terms of sales values.

2.

OrdersWe operate a system whereby production is based mostly on projected demand. We hardly ever produce on order.

3.

Sales results per product–type(1) Total(millions of yen)
Product-type

FY2009FY2010(Apr. 1, 2008-Mar. 31, 2009)(Apr. 1, 2009-Mar. 31, 2010)

AmountRatio

Amount%Ratio

Change from previous
periodAmount%

Ratio%

Machinery for soil
preparation

45,14230.239,201

26.3(5,940)(13.2)

Cultivating machinery

15,31810.2

13,9079.3(1,411)(9.2)

26,61417.8

27,119

18.2

505

1.9

30,54520.4

31,493

21.2

948

3.1

22,70215.2

29,157

19.5

6,455

28.4

Others

9,279

6.2

8,434

5.6

(844)

(9.1)

Total

149,601100

149,314

100

(287)

(0.2)

Harvesting andprocessing machinery
Parts and farming
implements
Agricultural machinery
related business31

(2) Domestic(millions of yen)
Product-type

FY2009FY2010(Apr. 1, 2008-Mar. 31, 2009)(Apr. 1, 2009-Mar. 31, 2010)

AmountRatio

AmountRatio%

Change from previous
periodAmount

Ratio

%

%

Machinery for soil
preparation

27,473

21.7

27,632

21.1

159

0.6

Cultivating machinery

13,347

10.5

11,442

8.7(1,904)(14.3)

25,28520.0

24,919

19.0

(365)

(1.4)

29,55923.4

30,434

23.2

875

3.0

21,70617.2

28,389

21.6

6,682

30.8

Others

9,172

7.2

8,434

6.4

(737)

(8.0)

Total

126,545100

131,253

100

4,708

3.7

Harvesting andprocessing machinery
Parts and farming
implements
Agricultural machinery
related business(3) Overseas(millions of yen)
Product-type

FY2009FY2010(Apr. 1, 2008-Mar. 31, 2009)(Apr. 1, 2009-Mar. 31, 2010)

AmountRatio

AmountRatio%

Change from previous
periodAmount%

Ratio%

Machinery for soil
preparation

17,66876.6

11,56964.1(6,099)(34.5)

Cultivating machinery

1,970

8.5

2,464

13.6

493

25.1

1,329

5.8

2,200

12.2

870

65.5

985

4.3

1,059

5.9

73

7.4

995

4.3

768

4.2

(227)

(22.8)

Others

106

0.5

−

−

(106)

(100.0)Total

23,056100

18,061100(4,995)(21.7)

Harvesting andprocessing machinery
Parts and farming
implements
Agricultural machinery
related business32

5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(millions of yen)
FY2009(as of Mar. 31, 2009)

FY2010(as of Mar. 31, 2010)

Cash and deposits

2,191

2,605

Notes receivable-trade

7,904

6,058

Accounts receivable-trade23,801

28,218

Short-term investment securities

220－

Merchandise and finished goods

13,895

14,7396

3

Raw materials and supplies

235

234

Advance payments-trade

676

402

Prepaid expenses

256

251

Deferred tax assets－

748

Short-term loans receivable

10,582

8,701

Accounts receivable-other

1,803

943

Other

81

81

Allowance for doubtful accounts

(4)

(4)

61,651

62,984

Buildings, net

3,988

3,770

Structures, net

233

212

2,631

2,114

6

6

Tools, furniture and fixtures, net

1,414

1,315

Land

25,522

25,161

Lease assets, net

53

125

Construction in progress

59

11

33,911

32,718

Leasehold right

85

85

Software265

214

Lease assets

69

84

Other

23

32

444

416

AssetsCurrent Assets:

Work in process

Total Current Assets
Noncurrent Assets:
Property, plant and equipment

Machinery and equipment, net
Vehicles, net

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
33

Investment securities

4,440

4,992

Stocks of subsidiaries and affiliates

17,357

17,357

Investments in capital

95

93

Investments in capital of subsidiaries and affiliates

278

278

Long-term loans receivable from employees

96

84

4,329

4,384

rehabilitation and other00Long-term prepaid expenses

205

220

Other

1,372

1,027

Allowance for doubtful accounts

(194)

(176)

Allowance for investment loss

(1,263)(1,145)

Total investments and other assets

26,718

27,118

Total Noncurrent Assets

61,07360,253

122,725

123,238

Long-term loans receivable from subsidiaries andaffiliates
Claims provable in bankruptcy, claims provable in

Total Assets

34

(millions of yen)
FY2009(as of Mar. 31, 2009)

FY2010(as of Mar. 31, 2010)

Liabilities
Current Liabilities:
Notes payable-trade

16,86015,313

Accounts payable-trade

14,534

14,379

Short-term loans payable

8,400

5,500

Current portion of bonds

1,395

1,000

Current portion of long-term loans payable

7,516

10,378

Lease obligations

28

55

Account payable-other

599

715

1,840

2,276

Income taxes payable

62

85

Advances received

140

323

Deposits received

292

266

Notes payable-facilities

239

158

3

4

51,91350,456

Bonds payable

1,000

－

Long-term loans payable

12,586

12,025

Lease obligations

100

165

Deferred tax liabilities

245

334

7,595

7,595

Provision for retirement benefits

885

1,087

Provision for directors' retirement benefits

179－

Long-term deposits from employees

831

782

Long-term deposits received

26

25

Other

－

269

23,452

22,28575,36572,742

22,784

23,344

Legal capital surplus

10,994

11,554

Other capital surplus

2,371

2,450

Total capital surpluses

13,366

14,004

Accrued expenses

Other
Total Current Liabilities
Noncurrent Liabilities:

Deferred tax liabilities for land revaluation

Total Noncurrent Liabilities
Total Liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus

Retained earnings
35

Other retained earnings
Retained earnings brought forward

651

1,916

651

1,916

Treasury stock

(185)

(13)

Total Shareholders’ Equity

36,61639,252

215

373

Revaluation reserve for land

10,527

10,869Total valuation and translation adjustments

10,742

11,243

Total Net Assets

47,35950,495

Total Liabilities and Net Assets

122,725

123,238

Total retained earnings

Valuations and Translation Adjustments
Valuation difference on available-for-sale securities

36

(2) Non-consolidated Statements of Income(millions of yen)
FY2009(Apr. 1, 2008Mar. 31, 2009)

FY2010(Apr. 1, 2009Mar. 31, 2010)

Net sales

90,33190,871

Cost of sales

78,12778,020Gross profit

12,203

12,85012,53011,653

(327)

1,197

Interest income

502

427

Dividends income

2,172

565

Rent income

1,435

1,320

407

267

4,517

2,580

Interest expenses

558

534

Interest on bonds

10

8

Sales discounts

93

68

Rent expenses

1,267

1,130

Loss on abandonment of inventories

407

267

Other

272

246

Total non-operating expenses

2,610

2,256

Ordinary Income

1,579

1,522

Gain on sales of noncurrent assets

29

32

Gain on sale of investment securities

134－

Reversal of allowance for doubtful accounts

437

Gain on transfer of investments in capital of subsidiaries and

39

－

－

118

246

157

Loss on sales and retirement of noncurrent assets

116

85

Impairment loss－

361

Loss on valuation of investment securities

83

0

Loss on sales of stocks of subsidiaries and affiliates

229－

Environmental expenses－

112

Cost of measures for product recall

278

240

Selling, general and administrative expenses
Operating income (loss)
Non-operating income

Other
Total non-operating income
Non-operating Expenses

Extraordinary Income

affiliates
Reversal of allowance for investment loss
Total extraordinary income
Extraordinary Loss37

Other

56

17

764

818

1,061

861

Income taxes

23

23

Refund of income taxes for prior periods

(72)

－

Income taxes-deferred

－

(769)

Total Income taxes

(48)

(745)

Net Income

1,110

1,607

Total Extraordinary Losses
Income before income taxes38

(3) Non-consolidated Statements of Changes in Net Assets(millions of yen)
FY2009FY2010(Apr. 1, 2008-(Apr. 1, 2009-

Mar. 31, 2009)

Mar. 31, 2010)

Shareholders’ Equity
Capital Stock
Balance at the end of previous period

22,78422,784

－

559

－

559

22,784

23,344

10,994

10,994

－

559

－

559

10,994

11,554

2,371

2,371

Disposal of treasury stock－78

Total changes of items during the period

－

78

2,371

2,450

13,366

13,366－559

Disposal of treasury stock－78

Total changes of items during the period－

638

13,366

14,004(458)

651

Changes of items during the period
Issuance of new shares- exercise ofsubscription rights to shares
Total changes of items during the period
Balance at the end of period
Capital Surplus
Legal capital surplus
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise ofsubscription rights to shares
Total changes of items during the period
Balance at the end of period
Other capital surplus
Balance at the end of previous period
Changes of items during the period

Balance at the end of period
Total Capital surplus
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise ofsubscription rights to shares

Balance at the end of period
Retained Earnings
Other retained earnings
Retained earnings brought forward
Balance at the end of previous period
39Changes of items during the period
Net income

1,110

1,607

Reversal of revaluation reserve for land

－

(342)

Total changes of items during the period

1,110

1,264

651

1,916

(458)

651

1,110

1,607

Reversal of revaluation reserve for land

－

(342)

Total changes of items during the period

1,110

1,264

651

1,916

(167)

(185)

Purchase of treasury stock

(18)

(23)

Disposal of treasury stock－

196

Total changes of items during the period

(18)

172

(185)

(13)

35,52536,616－

1,119

Net income

1,110

1,607

Purchase of treasury stock

(18)

(23)

Disposal of treasury stock－275

Reversal of revaluation reserve for land

－

(342)

Total changes of items during the period

1,091

2,636

36,61639,252

Balance at the end of period
Total retained earnings
Balance at the end of previous period
Changes of items during the period
Net income

Balance at the end of period
Treasury Stock
Balance at the end of previous period
Changes of items during the period

Balance at the end of period
Total Shareholders’ Equity
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise ofsubscription rights to shares

Balance at the end of period

40

Valuation and Translation Adjustments
Valuation Difference on Available-for-sale
Securities
Balance at the end of previous period

909

215

(693)

157

(693)

157

215

373

10,527

10,527

－

342

－

342

10,527

10,86911,436

10,742

(693)

500

(693)

500

10,742

11,243

46,96147,359－1,119

Net income

1,110

1,607

Purchase of treasury stock

(18)

(23)

Disposal of treasury stock－275

Reversal of revaluation reserve for land

－

(342)

(693)

500

398

3,136

47,35950,495

Changes of items during the period
Net changes in items other than shareholders’equityTotal changes of items during the period
Balance at the end of period
Revaluation Reserve for Land
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period
Total Valuation and Translation Adjustments
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period
Total Net Assets
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise of subscription
rights to shares

Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period41

(4) Notes Regarding the Going Concern Assumption
Not applicable

6. Others(1) Change of Directors (As of June 24, 2010)

1) Candidate for appointment as director(New position)(Name)(Current position)

Managing Director andSenior Corporate Officer

Senior Corporate Officer

Executive Managing Director of

Head of Development andProduction Division

Eiichiro Kinoshita

Development and Production
Division

Senior General Manager ofDevelopment and Production Division

2) Candidate for appointment as auditor(New position)
Part-time Auditor(Outside Corporate Auditor)(Name)(Current position)

Shoji Tanaka(Lawyer)(Name)(Position after retirement)

Motonobu Kikuchi

Advisor

3) Retiring director(Current position)
Managing Director andSenior Corporate Officer
Head of Development and Production
Division42