August 6, 2014
Name of listed company:
Company Code:
Representative:
Title
Enquiries:
Title

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

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

Stock Exchange Listing: Tokyo
Name
Noriyuki Kimura
Kazuma Takahashi
Name
Telephon +81 3 5604 7709
August 6, 2014
Yes
Yes (For institutional investors, analysts)

Summary Announcement of Consolidated Financial Results
for the Three Months Ended June 30, 2014 [Japanese GAAP](Consolidated)
I. Financial Results for the Three Months Ended June 30, 2014 (April 1, 2014 – June 30, 2014)
A. Results of operations (Cumulative)(Rounded down to millions of yen, % indicates changes from the previous period)

Three Months Ended
June 30, 2014
Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted

49,222
1,975
1,806
1,248

Three Months Ended
June 30, 2013

%
41.4
114.4
38.3
(20.4)

34,815
921
1,306
1,568

5.44
-

%
2.2
(24.0)
13.6
7.1

6.83
-

(Note) Comprehensive income:First Quarter of FY Mar. 2015 ¥1,246 mil. (-41.1%) First Quarter of FY Mar. 2014 ¥2,117 mil. (85.8%)
B. Financial Position(Rounded down to millions of yen)
June 30, 2014

March 31, 2014

196,120
68,69234.2%
291.80197,628
68,73434.0%
292.11

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio
Net Assets per Share (yen)(Ref) Shareholders’ equity:

First Quarter of FY Mar. 2015 ¥67,036 mil. FY ended Mar. 2014 ¥67,106 mil.
II. Dividends

Dividend per share (Yen)(Recorded date)
FY ended March 2014
FY ending March 2015

End of 1Q-

End of 2Q-

End of 3Q-

Year-end
4.00

Annual4.00--

3.00~4.00

3.00~4.00

FY ending March 2015 (forecast)(Note) Revision from the most recently announced dividend forecast : None1III. Forecast for the Fiscal Year Ending March 31, 2015 (April 1, 2014 - March 31, 2015)(Rounded down to millions of yen, % indicates changes from the previous same period)

Net
sales

%

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

2Q(Cumulative)

83,0000.6

2,800(32.8)

2,600(46.9)

1,300(59.0)

5.66

Annual

165,000

(2.4)

5,500

(25.4)

5,100(38.4)

2,600(59.7)

11.32(Note) Revision from the most recently announced performance forecast: None
* NotesA. Change in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None
B. Adoption of unique accounting method for preparing quarterly financial statements: None
C. Change in accounting policy, change of estimation in accounting and modified restatement
1) Change in accounting policy which accompanies revision of accounting standards : Yes
2) Change in accounting policy other than No.1): Yes
3) Change of estimation in accounting: Yes4) Modified restatement: None
The above corresponds to Paragraph 5, Article 10 of “Regulations Concerning the Terminology, Forms
and Preparation Method of Quarterly Financial Statements”. For details, please refer to page 5 of theattached document, [2. Matters Concerning Summary Information (Notes) (2) Change in accounting
policy/ change of estimation in accounting and modified restatement].
D. Outstanding shares (Common shares)
1) Outstanding shares as of the end of the period (Including treasury shares)
First quarter of FY ending March 31, 2015
229,849,936 shares
FY ended March 31, 2014
229,849,936 shares
2) Outstanding treasury shares as of the end of the period
First quarter of FY ending March 31, 2015
118,191 shares
FY ended March 31, 2014
117,254 shares
3) Average number of shares during the period (Quarterly cumulative period)First quarter of FY ending March 31, 2015
229,732,186 sharesFirst quarter of FY ended March 31, 2014
229,747,286 shares* Statement regarding state of implementation of quarterly review procedure
The summary of quarterly financial results is exempted from the requirement of quarterly review procedure
under the Financial Instruments and Exchange Act, and we have completed the review procedure of thequarterly financial statements at the time of disclosure under the act.
* Statement regarding proper use of financial performance forecasts and other notes
The forecast for operating results stated in this document has been produced based on information presently
available and certain assumptions deemed reasonable. It is possible that in future actual results may differ fromthe anticipated figures for a variety of reasons. For assumed conditions of the business performance forecast
and adequate use of the forecast, please refer to page 4 of the attached document, [1.Qualitative Information
regarding quarterly financial results].

2

Content of the attached document

1. Qualitative Information regarding quarterly financial results ······································· 4(1) Explanation concerning the status of consolidated financial results·························· 4(2) Explanation concerning the shifts in consolidated financial position ························ 5(3) Explanation regarding consolidated performance forecast, etc. ······························ 5
2. Matters concerning Summary Information (Notes) ·················································· 5(1) Changes in important subsidiaries during the quarterly consolidated cumulative period·· 5(2) Change in accounting policy, change of estimation in accounting and modified statement · 6
3. Consolidated Quarterly Financial Statements ························································· 8(1) Consolidated Quarterly Balance Sheets ·························································· 8(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income ··········································································· 10(3) Notes regarding Consolidated Quarterly Financial Statements ······························ 11
Notes regarding the Going Concern Assumption ·············································· 11
Notes regarding Significant Changes in Shareholder’s Equity ······························ 11(4) Material subsequent events ······································································· 1131. Qualitative Information regarding quarterly financial results(1) Explanation concerning the status of consolidated financial results
With respect to the Japanese economy during the first quarter, while the domestic economy stayed steady inspite of decline in the wake of the last-minute demand ahead of the consumption tax rate hike, and Europe andthe U.S. economies in the overseas economies follow a recovery trend, weak trends continue in ASEAN
nations, etc. that have strong ties with the Japanese economy.
While the situation still remains to be seen, the underlying economy continues a moderate recovery trend.
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.
In the first quarter, sales increased ¥14,407 million from the same period of the previous year to ¥49,222
million (up 41.4%). Domestic sales increased ¥14,367 million to ¥43,482 million (up 49.3%) by an increase inrevenues from January to March of the domestic sales companies, whose settlement month is December due tolast-minute demand, etc. ahead of the consumption tax rate hike. Overseas sales increased ¥39 million to¥5,740 million (up 0.7%) due to an increase in revenues in European market reflecting recovery in the demand,
etc., while sales decreased in Chinese market due to reduced subsidy and effect of flood, etc.
Operating income increased ¥1,053 million to ¥1,975 million (up 114.4%) mainly due to higher grossincome by expanded sales that exceeded increase in selling, general and administrative expenses. Ordinary
income increased ¥500 million to ¥1,806 million (up 38.3%) due to effect of foreign exchange fluctuations, etc.
Quarterly net income decreased ¥319 million to ¥1,248 million (down 20.4%) due to increased payment ofincome taxes, etc., while gain on change in equity, etc. were appropriated as extraordinary gains.

The trend of sales by product can be summarized as follows.
(Domestic)
Sales of cultivating & mowing machinery (tractors, tillers, etc.) were ¥11,585 million (up 29.5% from thesame period of the previous year), and sales of planting machinery (rice transplanters, vegetable transplanters)
were ¥3,571 million (up 26.7%). Sales of harvesting and processing machinery (combine harvesters, etc.) were
¥6,703 million (up 62.2%). Sales of farming implements and spare parts were ¥10,347 million (up 53.3%). The
other agriculture related sales (construction of facilities, etc.) were ¥11,274 million (up 75.3%).
(Overseas)
Sales of cultivating & mowing machinery (tractors, etc.) were ¥4,471 million (up 13.2% from the same
period of the previous year), and sales of planting machinery (rice transplanters, etc.) were ¥571 million (down
50.9%). Sales of harvesting and processing machinery (combine harvesters, etc.) were ¥102 million (down
33.3%).

Sales of farming implements and spare parts were ¥403 million (up 68.4%). The other agriculture

related sales were ¥192 million (down 0.9%).

Furthermore, Iseki Hokkaido Co., Ltd., a consolidated subsidiary of our company received on-the-spot
inspection by the Fair Trade Commission on July 29, 2014 on the suspect of a violation of the Anti Monopoly
Act concerning “construction works of drying, processing, storage facilities of grains and facility equipment toinstall in the facilities that are ordered by agricultural cooperatives and local public bodies located in4

Hokkaido”.
Our company and Iseki Hokkaido Co., Ltd. will cooperate thoroughly with the Fair Trade Commission.

(2)

Explanation concerning the shifts in consolidated financial position

As of the end of the first quarter consolidated period, total assets decreased ¥1,508 million from theprevious fiscal year end to ¥196,120 million. In terms of assets, current assets decreased ¥7,711 million fromthe previous fiscal year end and noncurrent assets increased ¥6,202 million. The main changes were from a¥7,322 million decrease in notes and accounts receivable-trade, and a ¥1,492 million decrease in inventory
assets, a ¥1,264 million increase in property, plant and equipment and a ¥4,787 million increase in investment
and other assets and other. Total liabilities decreased ¥1,465 million from the previous fiscal year end to¥127,427 million, mainly as a result of a ¥1,456 million decrease in notes and accounts payable-trade, and a¥2,482 million increase in short-term loans payable and long-term loans payable, and a ¥3,168 million decreasein current liabilities and other. Net assets decreased ¥42 million from the previous fiscal year end to ¥68,692
million mainly due to appropriation of quarterly net income of ¥1,248 million, dividend payment of retained
earnings of ¥918 million and a ¥448 million decrease in foreign currency translation adjustments.

(3) Explanation regarding consolidated performance forecast, etc.
During the first quarter consolidated cumulative period, both operating income and ordinary income
increased from the same period of the previous year due to last- minute demand, etc. ahead of consumption tax
rate hike.
From now on, we will devote ourselves to further sales expansion in celebrating the 90th anniversary offoundation of the company next year, through provision of “high quality after sales service” and enhanced“Support for clients” to offer proposals suitable for their farm management. In addition, we will start
commemorative sale/ sales expansion under the company-wide slogan “Supporting the full of dreams farming
industry!” and “Gratitude and Support”.

In overseas also, we will engage in sales expansion of strategic

products launched for North American, European and Chinese market.
With respect to forecasts for the second quarter and the fiscal year ending March 31, 2015, we have notmade revisions to the previously announced forecasts (at the time of announcement of financial results on May
14, 2014) as a result of examination including the business performance for the first quarter under review.
The premised forex rate in the performance forecast is 1US$=¥101 (unchanged) and 1Euro=¥137 (changed
from ¥140).
With respect to future prospect of “Notice on sock acquisition (conversion into a subsidiary) of a distributor
in Europe” announced on July 22, 2014 and “Notice on completion of stock acquisition (conversion into a
subsidiary) of a distributor in Europe”, it is currently under close scrutiny including incurred amount ofnegative goodwill, and not included in the forecasts this time.

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

5(2) Change in accounting policy, change of estimation in accounting and modified statement(Application of Accounting Standard etc. for Retirement Benefits)
Since the first quarter, we have applied “Accounting Standard for Retirement Benefits” (ASBJ
Corporate Accounting Standards No, 26, May 17, 2012. Hereafter the “Retirement Benefits AccountingStandards”) and “Implementation Guidance of Accounting Standard for Retirement Benefits” (ASBJ
Implementation Guidance of Corporate Accounting Standards No. 25, May 17, 2012. Hereafter the“Retirement Benefits Implementation Guidance”) in relation to provisions stipulated in the text ofParagraph 35 of the Retirement Benefits Accounting Standards and the text of Paragraph 67 of the
Retirement Benefits Implementation Guidance; and we have reviewed calculation method of retirement
benefit obligation and service cost, having changed the period corresponding method of the estimatedamount of retirement benefits from fixed amount standard to payment calculation standard, and we havealso changed the determination method of discount rate from the one based on approximate average
number of remaining service years for employees to a method using single weighted average discount ratethat reflects the amount for the estimated periods of payment and each estimated period of payment.
With respect to application of the Retirement Benefits Accounting Standard, we adjust the impact of thechange of calculation method of retirement benefit obligation and service cost with retained earnings at the
beginning of the first quarter consolidated period under review in accordance with the transitory treatment
stipulated in Paragraph 37 of the Retirement Benefits Accounting Standard.
As a result, liabilities at the beginning of the first quarter consolidated period under review increased¥554 million and retained earnings decreased ¥360 million. Furthermore, operating income, ordinary
income and income before income taxes decreased ¥7 million respectively.

(Change in the accounting policy that is hard to distinguish from change in estimate in accounting)
Previously, the company and its domestic consolidated subsidiaries, applied the declining method(However, straight-line method was applied to equipment and newly acquired buildings on and after April 1,
1998 (excluding attached equipment)) as the depreciation method of property, plant and equipment(excluding lease assets), it has been changed to the straight-line method from the first quarter consolidated
period under review.
With respect to the business environment surrounding ISEKI Group, while shrinking demand for
agricultural machinery mainly for replacement demand has ceased to fall in recent years, major changes inagricultural situation are expected in future such as conversion of governmental agricultural policy. On theother hand, expansion of agricultural machinery in Asia is expected in overseas, and we foresee that the
global agricultural machinery market as seen will continue to shift steadily.
Under the circumstances, for further global expansion, we have decided to make major capital
investments for state-of-the-art manufacturing facilities that excel in energy saving/multi-functional/all-purpose
properties in Japan, and investments for new manufacturing/sales site in overseas, along with achievement ofstructural costs reform in response to drastic changes that take place inside and outside Japan. We havereexamined depreciation method of noncurrent tangible assets in light of full-fledged operation of thesefacilities from the first quarter.

6

Responding to constantly changing demand for agricultural machinery and building low costproduction system, we have established stable customer base in domestic market. Furthermore, we haveestablished global production system as the mother plant to take in demand from growing Asian markets.
As a result, we expect stable long-term operation of production facilities, etc., which has led us todetermine that the “straight-line method” to allocate expenses evenly over the useful life would reflectbusiness of ISEKI Group more properly.
With this change, compared with the previous method, depreciation expenses decreased ¥165 million,
operating income increased ¥163 million and ordinary income and quarterly net income before income
taxes increased ¥165 million respectively.

7

3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
FY2014(as at Mar. 31, 2014)
AssetsCurrent Assets:
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total Current Assets
Noncurrent Assets:
Property, plant and equipment
Buildings and structures, net
Land
Others, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investment and other assets
Total Noncurrent Assets
Total Assets

8(Millions of yen)
FY2015(as at June 30, 2014)

8,228
41,59836,889
4,882
1,548
4,739
(107)
97,7799,789
34,27536,638
4,053
1,135
4,296
(121)
90,06816,60251,015
19,53487,152
1,006

18,125
51,104
19,18788,417
980

7,269
4,885
(464)
11,69099,848
197,628

7,500
9,673
(519)
16,653106,051
196,120

(Millions of yen)
FY2014(as at Mar.31, 2014)

FY2015(as at June 30, 2014)

Notes and accounts payable-trade47,53646,080

Short-term loans payable

20,132

23,192Current portion of long-term loans payable

6,387

6,390

Income taxes payable

1,788

1,216

Provision for bonuses

350

1,275

Provision for loss on construction contracts

33-

13,68810,51989,916

88,674Long-term loans payable

17,87017,289Deferred tax liabilities for land revaluation

6,644

6,644

Provision for directors’ retirement benefits

126

116

6,660

7,004

264

258

7,411

7,439

38,97738,752

128,893

127,427

Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

17,266

17,226

Treasury stock

(30)

(30)

54,03453,994

Liabilities
Current Liabilities:

Other
Total Current Liabilities
Noncurrent Liabilities:

Provision for retirement benefits
Asset retirement obligations
Other
Total Noncurrent liabilities
Total Liabilities
Net Assets
Shareholders' equity

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

1,338

1,493

11,831

11,831

Foreign currency translation adjustments

1,170

721

Cumulative adjustment for retirement benefits(1,269)(1,005)

13,072

13,042

1,628

1,655

Total Net Assets

68,734

68,692

Total Liabilities and Net Assets

197,628

196,120

Total Accumulated Other
Comprehensive Income
Minority interests9(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated Quarterly Statements of Income
First Quarter Consolidated Cumulative Period(millions of yen)
FY2014(Apr.1,2013-June 30, 2013)

FY2015(Apr.1,2014-June 30, 2014)

Net sales

34,81549,222

Cost of sales

23,37435, 898

Gross profit

11,441

13,324

Selling, general and administrative expenses

10,52011,349921

1,975Interest income

4552

Dividend income

73

81

Foreign exchange gains

430

-

Other

166

223

Total non-operating income

716

358

184

186

-

179

Other

146

160

Total non-operating expenses

331

526

1,306

1806

Gain on sales of noncurrent assets

1

7Gain on change in equity-

589

Compensation income

23

6Total extraordinary income

24

603

Loss on sales and retirement of noncurrent assets

38

39

Other

1

7

Total extraordinary losses

39

47

1,291

2,363

Income taxes-current

270

1,343

Income taxes-deferred

(535)

(257)

Total income taxes

(265)

1,086

Income before minority interests

1,556

1,276

Minority interests in income (loss)

(11)

28

Net income

1,568

1,248

Operating income
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses

Ordinary income
Extraordinary income

Extraordinary losses

Income before income taxes

10Consolidated Quarterly Statements of Comprehensive Income
First Quarter Consolidated Cumulative Period(millions of yen)
FY2014(Apr.1,2013-June 30, 2013)

FY2015(Apr.1,2014-June 30, 2014)

1,556

1,276

Valuation difference on available-for-sale securities

234

156

Foreign currency translation adjustments

311

(425)

-

263

14

(25)

560

(30)

Comprehensive income

2,117

1,246

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

2,121

1,218

(4)

27

Income before minority interests
Other comprehensive income

Adjustment for retirement benefits
Share of other comprehensive income of associates
accounted for using equity method
Total of other comprehensive income(3) Notes regarding Consolidated Quarterly Financial Statements(Notes regarding the Going Concern Assumption)
There is no corresponding item.

(Notes regarding Significant Changes in Shareholder’s Equity)
There is no corresponding item.

(4) Material subsequent events(Acquisition of companies, etc. by share acquisition)
The company resolved by the Board of Directors on July 22, 2014 to conclude the share transfer agreement
concerning acquisition of all shares of YB HOLDING, a shareholder who owns 100% of shares of our sales
agent in Europe YVAN REAL to convert it into our subsidiary, and completed conclusion of the agreement andshare transfer procedures on the same day (July 22, 2014).
1. Purpose
To promote initiatives of our global strategy in direct and timely manner, and expand sales and increase
market share through collection of market needs.
2. Counterparties of share acquisition
5 corporate persons and 8 individuals

113. Name, business/size of company to acquireName

YB HOLDINGYVAN BEAL

6, rue d’ Ankara-75016 Paris

27 rue des Freres Montgolfier ZAC desFranceRibes-63170 Aubiere France

Holding company ofGreen business, sales/repair of

YVAN BEAL

agricultural machinery

Capital€1,500,000€612,000

Year of foundation

2007

1929

Location
Business(Note) Location of YB HOLDING was changed to “57, rue d’ Amsterdam-75008 Paris France”.
4. Number of shares to acquire, acquisition price and shareholding ratio after acquisition

YB HOLDING shares

1,500,000 shares (shareholding ratio 100%)

Acquisition price€31.97

5. Important special provisions, etc.
An agreement for the company to acquire corresponding credits (including credit waiver by certain creditors)
has been concluded with creditors of YB HOLDING.

(Issuance of Stock Acquisition Rights)
The company determined by the Board of Directors on July 30, 2014 subscription requirements of stockacquisition rights to be issued as stock option to Directors (excluding Outside Directors, hereafter the same) and
Auditors (excluding Outside Auditors, hereafter the same) , and resolved to invite persons who subscribe thestock acquisition rights.
1. Category and number of grantees
Directors of the company: 9 persons, Auditors of the company: 4 persons
2. Class and number of shares underlying stock acquisition rights
Common stock: 401,000 shares
The number of shares underlying each stock acquisition right will be 1,000 shares of common stock of thecompany.
3. Payment amount upon exercise of stock acquisition rights
1 yen per each share
4. Distribution date for stock acquisition rights
August 25, 2014
5. Exercise period for stock acquisition rights
August 26, 2014 to August 25, 2039
6. Matters concerning transfer of stock acquisition rights
The approval of the Board of Directors of the company is required for any acquisitions of stock acquisitionrights through assignment.

12