November 11, 2015
Name of Listed Company:
Company Code:
Representative:
Title
Enquiries:
Title

ISEKI & CO., LTD.
Stock Exchange Listings: Tokyo
6310 (URL http://www.iseki.co.jp)
President
Name Noriyuki Kimura
General Manager of Financial Department Name Kazuma Takahashi
Telephone: +81 3 5604 7709

Date of Submission of Quarterly Report:
Scheduled Date to Commence Dividend Payment:
Supplementary Information for Quarterly Financial Results:
Quarterly Financial Results Briefing:

November 11, 2015—
Yes
Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Six Months Ended September 30, 2015 (Japanese GAAP)
I. Financial Results for the Six Months Ended September 30, 2015 (April 1, 2015－September 30, 2015)
A. Results of Operations(Rounded down to a million yen, % indicates changes from the previous period)

Six Months Ended
September 30, 2015
77,576
885
1,269
(717)

Net Sales
Operating Income
Ordinary Income
Profit (Loss) Attributable to Owners of Parent
Profit (Loss) per Share (yen)Non-diluted(3.18)
Fully Diluted—
Note: Comprehensive income
Six months ended September 30, 2015: -¥1,268 mil. (—%)
Six months ended September 30, 2014: ¥1,880mil. (-56.1%)%(5.9)(15.5)(14.5)—Six Months Ended
September 30, 2014
82,450
1,048
1,485
1,341

%
(0.1)
(74.8)(69.6)(57.7)

5.84
5.84

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

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio (%)
Net Assets per Share (yen)Reference: Shareholders’ equity
As of September 30, 2015: ¥67,430 mil.
As of March 31, 2015: ¥69,372 mil.

As of September 30, 2015

As of March 31, 2015

207,083
69,141
32.6
298.52

204,138
71,06534.0
307.11

II. Dividends(Yen)

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

End of 2Q—

End of 3Q—

Year-end
3.00

Annual
3.00

—

1.50

1.50

—

Note: Revision of the most recently announced dividend forecast: Yes
III. Forecast for the Fiscal Year Ending December 31, 2015 (April 1, 2015－December 31, 2015)(Rounded down to a million yen, % indicates changes from the previous period)
Net Sales
Full Year

148,500%—

Operating
Income

1,000

%

—

Ordinary
Income700%—

ProfitAttributableto Owners of
Parent(1,800)%—

Profit per
Share
(yen)

(7.97)

Note: Revision of the most recently announced performance forecast: Yes
As the partial revision of the Articles of Incorporation was approved at the general meeting of shareholders held on
June 24, 2015, the fiscal year of the Company, previously from April 1 to March 31 of the following year, has beenchanged to the period from January 1 to December 31, effective as of fiscal 2015. As a transitional treatment,
subsidiaries which adopt a fiscal year starting April 1 and ending March 31 of the following year, the nine-monthresults (April 1, 2015 to December 31, 2015) will be included in the consolidated results for the year ending
December 31, 2015.
For subsidiaries which adopt a fiscal year starting January 1 and ending December 31, the twelve-month results(January 1, 2015 to December 31, 2015) will be included in the consolidated results, as in the past. Because
year-on-year comparisons are impossible, percentage changes year on year are left blank.
* Notes
A Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None
B Adoption of unique accounting method for preparing the quarterly consolidated financial statements: None
C Change in accounting policy, change in accounting estimates and restatements
1) Change in accounting policy in response to revision of accounting standards: Yes
2) Change in accounting policy other than 1):
None3) Change in accounting estimates:
None4) Restatements:
None
Note: For details, please refer to “2. Matters Concerning Summary Information (Notes) (2) Change in
Accounting Policy, Change in Accounting Estimates and Restatements” on page 3 of the
supplementary material.
D Outstanding shares (common shares)
1) Outstanding shares (including treasury shares)
As of September 30, 2015
229,849,936 shares
As of March 31, 2015
229,849,936 shares
2) Outstanding treasury shares
As of September 30, 2015
3,963,375 shares
As of March 31, 2015
3,959,147 shares
3) Average number of shares during the period
Six months ended September 30, 2015
225,888,444 shares
Six months ended September 30, 2014
229,467,934 shares* Statement regarding the implementation of the quarterly review procedure
Although the summary of quarterly financial results is exempted from the quarterly review procedure required
under the Financial Instruments and Exchange Act, we have completed the review procedure of the financial
statements at the time of disclosure.
* Statement regarding the proper use of financial performance forecast and other notes
The forecast for operating results has been determined based on information presently available, as well as on
the assumptions that the Company believes to be reasonable. It is possible that in the future, actual results may
differ from the anticipated figures for a variety of reasons. Please refer to “1. Qualitative Information Regarding
Financial Results for the Period” on page 2 of the supplementary material for the assumptions underlying theforecast and precautions when using the forecast.

 Table of contents for supplementary material
1. Qualitative Information Regarding Financial Results for the Period .....................................................2(1) Explanation Regarding Business Performance .................................................................................2(2) Explanation Regarding Financial Position .......................................................................................2(3) Explanation Regarding Forward-looking Statements Including Consolidated
Performance Forecast .......................................................................................................................3
2. Matters Concerning Summary Information (Notes)...............................................................................3(1) Changes in Important Subsidiaries during the Period ......................................................................3(2) Change in Accounting Policy, Change in Accounting Estimates and Restatements ........................3
3. Consolidated Financial Statements ........................................................................................................4(1) Consolidated Balance Sheets ............................................................................................................4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .......6(3) Consolidated Statements of Cash Flows ...........................................................................................8(4) Notes Regarding Consolidated Financial Statements .......................................................................9
Notes Regarding the Going Concern Assumption ............................................................................9
Notes Regarding Significant Changes in Shareholders’ Equity .......................................................9-1-

1. Qualitative Information Regarding Financial Results for the Period(1) Explanation Regarding Business Performance
During the six months ended September 30, 2015, the Japanese economy faced an uncertain outlook due in part to
the impact of global stock declines triggered by the sluggishness of the Chinese economy in the latter half of August,despite showing a modest recovery in general, supported by the favorable impact of the depreciating yen on
companies engaged in export, and by a rise in the number of foreign tourists.
Under such circumstances, the ISEKI Group continued its efforts to increase sales volume in Japan, launching
new products and enhancing customer service, while it endeavored to strengthen its marketing capabilities overseas
in its core markets of North America, Europe, China and the ASEAN region. As a result, the Group’s businessperformance can be summarized as follows.
During the six months ended September 30, 2015, net sales decreased ¥4,874 million from the same period lastyear to ¥77,576 million (down 5.9%). Domestic sales decreased ¥9,994 million to ¥61,476 million (down 14.0%)
mainly as a result of the decrease in sales of agricultural machinery and farming implements. This decrease was dueto the significant rise in sales at our sales companies (which adopt December annual account settlement) in the
period from January to March last year, owing to the last-minute surge in demand before the rise in the consumption
tax rate, and the inability to offset the drop in sales in the period from January to March this year with sales in the
period from April to June, despite showing an increase from the same period last year. Overseas sales increased¥5,120 million to ¥16,100 million (up 46.6%) reflecting strong shipments to North America and the ASEAN region,
as well as a contribution of sales from ISEKI France S.A.S, which was newly consolidated.
Operating income decreased ¥162 million from the same period last year to ¥885 million (down 15.5%) due tolower gross income from decreased domestic sales of agricultural machinery. Ordinary income decreased ¥216
million to ¥1,269 million (down 14.5%). Loss attributable to owners of parent of ¥717 million was recorded, adecrease of ¥2,058 million from profit attributable to owners of parent of ¥1,341 million in the same period last year.
Sales by product are as follows.
[Domestic]
Sales of cultivating & mowing machinery (tractors, high-clearance multipurpose vehicles, etc.) were ¥16,660 million(down 12.4% from the same period last year), and sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥6,635 million (up 0.4%). Sales of harvesting and processing machinery (combine harvesters,etc.) were ¥5,832 million (down 34.1%). Sales of spare parts and farming implements were ¥16,188 million (down
11.1%). Sales of other agriculture-related business (construction of facilities, etc.) were ¥16,158 million (down
14.0%).
[Overseas]
Sales of cultivating & mowing machinery (tractors, etc.) were ¥13,667 million (up 51.5% from the same period lastyear), and sales of planting machinery (rice transplanters, etc.) were ¥611 million (down 6.2%). Sales of harvestingand processing machinery (combine harvesters, etc.) were ¥267 million (up 4.6%). Sales of spare parts and farming
implements were ¥1,237 million (up 81.7%). Sales of other agriculture-related business were ¥315 million (down
13.9%).
Furthermore, Iseki-Hokkaido Co., Ltd., a consolidated subsidiary of the Company, and the Company underwent
on-site investigations by the Japan Fair Trade Commission (JFTC) on July 29, 2014 and October 6, 2015,
respectively, on suspicion of possible violation of the Antimonopoly Act regarding “bidding for orders forconstruction work comprising grain drying, preparing and storing facilities and equipment installed within thosefacilities which would be placed by agricultural cooperatives and local public agencies in Hokkaido,” and “bidding
for orders for construction work comprising facilities for protected horticulture and ancillary facilities which would
be placed by local public agencies in the Tohoku region,” respectively. The Company and Iseki-Hokkaido will fully
cooperate with the JFTC investigations.
(2) Explanation Regarding Financial Position
Total assets as of September 30, 2015 increased ¥2,944 million from March 31, 2015 to ¥207,083 million.
Looking at the breakdown, current assets increased ¥1,067 million and non-current assets increased ¥1,877
million. The changes mainly resulted from a ¥1,127 million increase in cash and deposits, a ¥2,528 million increasein notes and accounts receivable–trade, a ¥1,110 million increase in inventories, a ¥3,624 million decrease in other
under current assets, and a ¥2,469 million increase in property, plant and equipment, such as buildings andstructures.
Total liabilities increased ¥4,869 million from March 31, 2015 to ¥137,942 million. The change was primarily due
to a decrease in notes and accounts payable–trade and an increase in electronically recorded obligations–operating
totaling ¥837 million, a ¥5,505 million increase in short-term and long-term loans payable, and a ¥1,984 million
decrease in other under current liabilities.
Net assets decreased ¥1,924 million from March 31, 2015 to ¥69,141 million, mainly due to the recording of ¥717
-2-

million in loss attributable to owners of parent and ¥677 million in dividends of surplus.
(3) Explanation Regarding Forward-looking Statements Including Consolidated Performance Forecast
Although sales overseas were strong, consolidated sales and profits for the six months ended September 30, 2015 in
Japan decreased from the same period last year. This was because domestic sales of agricultural machinery fell shortof a full-fledged recovery during the high-demand season in spring.
Going forward, we expect a full recovery in sales of agricultural machinery owing to contribution by sales from
October, when Agri-Seed ceed Leasing program (a leasing support program provided by The Norinchukin Bank)
was adopted, as well as a recovery in the price of rice. We will continue to strive to expand sales by accurately
addressing changes in the agriculture environment and further strengthening our customer support capabilities
through providing high-quality market information services and making proposals that match our customers’
agricultural business management. In overseas markets, we will focus on further expanding the sales of strategic
products introduced in North America, Europe, China and major markets in the ASEAN region. Furthermore, wewill strive for further sales expansion at ISEKI France S.A.S, which became a subsidiary last year, Dongfeng Iseki
Agricultural Machinery Co., Ltd., an affiliate accounted for by the equity method, and other overseas affiliates.
In October 2015, we opened the “Dream Agricultural Research Institute” , anInstitute for research in advanced
agri-business and technology, in Tsukubamirai, Ibaraki to disseminate advanced cultivation techniques as well as toengage in the research, verification and dissemination of smart agriculture. “At the institute we can see advanced
agricultural technology.” Under this direction, we are striving to reinforce our customer support system by
responding to the speed of changes within the agricultural environment and addressing the needs of customers who
aim to further save energy and costs.
We have revised the consolidated business performance forecasts for the fiscal year ending December 31, 2015 inview of recent trends in business performances. Please refer to the “Notice on the partial reversal of deferred tax
assets, occurrence of differences between the consolidated business performance forecast and results for the first six
months of the fiscal year ending December 31, 2015 and the revisions of the full-year business performance anddividend forecasts” released on November 11, 2015 for details.
The latest business performance forecast uses foreign exchange rates for the full year of ¥120 per U.S. dollar and¥133 per Euro (revised from ¥115 per U.S. dollar and ¥130 per Euro).

2. Matters Concerning Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period
Not applicable(2) Change in Accounting Policy, Change in Accounting Estimates and Restatements
Starting from April 1, 2015, the Company adopted the Revised Accounting Standard for Business Combinations(ASBJ Statement No. 21, September 13, 2013, hereinafter referred to as the “Accounting Standard for Business
Combinations”), the Revised Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22,
September 13, 2013, hereinafter “Accounting Standard for Consolidated Financial Statements”), the Revised
Accounting Standard for Business Divestitures (ASBJ Statement No.7, September 13, 2013, hereinafter “AccountingStandard for Business Divestitures”) and other accounting standards. To comply with these standards, the Company
changed the accounting treatment to record the amount arising from a change in equity in subsidiaries accounted forusing the equity method as capital surplus where the Company has been continuously the controlling entity, and torecord the costs associated with such acquisition as expenses for the year in which the acquisition was made. For all
the business combinations that will be implemented from April 1, 2015, the method to allocate acquisition costs haschanged; i.e., allocation of acquisition costs determined based on a provisional accounting treatment will be
reviewed and reflected in the consolidated financial statements for the quarter in which the business combination
was implemented. In addition, the presentation of net income and other related items was changed. The item
previously presented as minority interests was also changed, to non-controlling interests. In order to reflect thesechanges with regard to the six months of the previous fiscal year and the full previous fiscal year, the consolidated
financial statements have been restated.
The method of presentation has been changed from the consolidated statement of cash flows for the six months
ended September 30, 2015, to classify cash flows related to the purchase or sales of shares of subsidiaries not
resulting in change in scope of consolidation under cash flows from financing activities, and to classify cash flows
related to expenses for the purchase of shares of subsidiaries resulting in change in scope of consolidation or cash
flows related to expenses incurred in connection with the purchase or sales of shares of subsidiaries not resulting inchange in scope of consolidation under cash flows from operating activities.
From April 1, 2015, the Company conformed with the transitional treatments stipulated in Article 58-2 (4) of the
Accounting Standard for Business Combinations, Article 44-5 (4) of the Accounting Standard for Consolidated
Financial Statements and Article 57-4 (4) in the Accounting Standard for Business Divestitures to eventually fully
adopt the Accounting Standard for Business Combinations, etc. The financial statements for the first six months offiscal 2015 were not affected by any of these changes.
-3-3. Consolidated Financial Statements(1) Consolidated Balance Sheets
FY ended
March 31, 2015(as of Mar. 31, 2015)(Millions of yen)
2Q of FY ending
December 31, 2015(as of Sep. 30, 2015)

AssetsCurrent assets
Cash and deposits

6,603

7,730

Notes and accounts receivable-trade30,40432,933Merchandise and finished goods

42,554

41,899Work in process

3,679

5,706

Raw materials and supplies

1,478

1,217

Other

7,222

3,597

(91)

(166)

91,851

92,918

Buildings and structures, net

20,224

21,340Land

50,39550,684

Other, net

22,372

23,437

Total property, plant and equipment

92,992

95,461

1,105

1,114

Investment securities

9,495

8,462

Other

9,129

9,471

Allowance for doubtful accounts

(436)

(345)

Total investments and other assets

18,18917,588112,287

114,164

204,138

207,083

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets

Total non-current assets
Total assets-4-

FY ended
March 31, 2015(as of Mar. 31, 2015)(Millions of yen)
2Q of FY ending
December 31, 2015(as of Sep. 30, 2015)

Liabilities
Current liabilities
Notes and accounts payable-trade36,93530,782

Electronically recorded obligations-operating
Short-term loans payable

1,778
25,134

8,769
28,918Current portion of long-term loans payable

13,941

14,782

Income taxes payable

776

766

Provision for bonuses

322

702

Provision for loss on construction contracts

—

13

Other

13,79911,815

Total current liabilities

92,68996,550Non-current liabilities
Long-term loans payable

18,52019,401

Deferred tax liabilities for land revaluation

6,074

6,074

Provision for directors’ retirement benefits

125

118

Net defined benefit liability
Asset retirement obligations

5,298
266

5,058
268

Other

10,097

10,470Total non-current liabilities

40,383

41,391

Total liabilities

133,073

137,942

Net assets
Shareholders’ equity
Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

15,65814,262

Treasury shares

(986)

(987)

51,47050,073

2,979

2,427

Revaluation reserve for land

12,401

12,401

Foreign currency translation adjustment

1,771

1,791

Remeasurements of defined benefit plans

750

736

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

17,902

17,357

Subscription rights to shares
Non-controlling interests

Total accumulated other comprehensive income

68
1,624

91
1,618

Total net assets
Total liabilities and net assets

71,065204,138

69,141207,083-5-

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Six Months Ended September 30, 2014 and 2015
(Millions of yen)
2Q of FY ending
December 31, 2015
(Apr. 1, 2015Sep. 30, 2015)

2Q of FY ended
March 31, 2015
(Apr. 1, 2014Sep. 30, 2014)
Net sales

82,45077,576

Cost of sales

58,88354,591Gross profit

23,56722,985

Selling, general and administrative expenses

22,51822,099Operating income

1,048

885

Interest income

108

75

Dividend income

95

141

Foreign exchange gains

130

217

Other

628

571

Total non-operating income

962

1,005

Interest expenses

326

391

Other

198

230

Total non-operating expenses

525

622

1,485

1,269

Gain on sales of non-current assets

13

19Gain on bargain purchase794—

Gain on change in equity

589—

Compensation income

116Gain on sales of investment securities

25

213

1,435

240

Loss on sales and retirement of non-current assets

166

94

Impairment loss

—

38

Other

8

—

Total extraordinary losses

175

133

Income before income taxes

2,745

1,375

Income taxes-current

1,802

658

Income taxes-deferred

(414)

1,438

Total income taxes

1,387

2,096

Profit (loss)

1,357

(720)

16

(2)

1,341

(717)

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent-6-

Consolidated Statements of Comprehensive Income
For the Six Months Ended September 30, 2014 and 2015
(Millions of yen)
2Q of FY ending
December 31, 2015
(Apr. 1, 2015Sep. 30, 2015)

2Q of FY ended
March 31, 2015
(Apr. 1, 2014Sep. 30, 2014)
Profit (loss)

1,357

(720)

Valuation difference on available-for-sale securities

512

(556)

Foreign currency translation adjustment

(466)

(57)

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

527

(13)

(51)

78

Total other comprehensive income

522

(548)

1,880

(1,268)

1,872(1,263)

7(5)

Other comprehensive income

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

(3) Consolidated Statements of Cash Flows
2Q of FY ended
March 31, 2015
(Apr. 1, 2014Sep. 30, 2014)
Cash flows from operating activities
Income before income taxes
Depreciation
Impairment loss
Gain on bargain purchase
Increase (decrease) in net defined benefit liability
Loss (gain) on sales of investment securities
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment andintangible assets
Loss (gain) on change in equity
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Surcharges paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Decrease (increase) in time deposits
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments for investments in capital of subsidiaries andassociates
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from sales and leasebacks
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation
Cash and cash equivalents at end of period-8-(Millions of yen)
2Q of FY ending
December 31, 2015
(Apr. 1, 2015Sep. 30, 2015)

2,745
2,793
—
(794)
(293)
(24)
(203)
326
(15)

1,375
3,324
38
―
(236)
(213)
(216)
391
(108)

152
(589)
13,660(5,202)(5,801)(1,509)
5,244
196
(356)
―
(1,929)3,155

75―(2,631)(1,187)
929
131
1,673
208
(394)
(305)
(445)
736

(5,472)(5,075)

21
(1)
109
(353)

199
(99)
510
(318)

522

—

(543)
(499)
(6,217)―661(4,121)

6,206
2,380
(4,140)739(1,038)
(400)
(909)
(9)
2,828
27
(205)
8,169

3,765
5,820
(4,097)734(1,381)
(0)
(670)
(9)
4,159
35
809
6,570

(469)
7,494

―
7,380

(4) Notes Regarding Consolidated Financial Statements
Notes Regarding the Going Concern Assumption
Not applicable
Notes Regarding Significant Changes in Shareholders’ Equity
Not applicable-9-