Consolidated Financial Results
for the Six Months Ended June 30, 2023
[Japanese GAAP]
August 9, 2023
Company name: ISEKI&CO., LTD.
Stock exchange listing: Tokyo
Code number: 6310
URL: https://www.iseki.co.jp
Representative: Shiro Tomiyasu,President and Representative Director
Contact: Yoshikazu Ogusu,General Manager of Financial Department
Phone: +81-3-5604-7671
Scheduled date of filing quarterly securities report: August 9, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended June 30, 2023 (January 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended
June 30, 2023
92,392
6.5
2,741
6.8
3,003
(9.8)
1,939
(24.8)
June 30, 2022
86,7210.1
2,567(45.6)
3,328(39.6)
2,578(37.5)(Note) Comprehensive income:Six months ended June 30, 2023:¥3,551 million [19.0%]
Six months ended June 30, 2022:¥
2,985 million [(35.6) %]Basic earnings
per share
Six months ended
June 30, 2023
June 30, 2022

Diluted earnings pershare
Yen

Yen

85.75
114.0485.73
114.00(2) Consolidated Financial Position
Total assets
Millions of yen
As ofJune 30, 2023
218,611
December 31, 2022
206,491(Reference) Equity: As of June 30, 2023:As of December 31, 2022:

Net assets

Capital adequacy ratio

Millions of yen¥¥―1―75,133
72,34570,480 million
68,002 million

Net assets per share%

Yen

32.2
32.9

3,116.22
3,006.74

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended December 31, 2022

---

30.00

30.00

Fiscal year ending December 31, 2023--

30.00

30.00

Fiscal year ending December 31, 2023
(Forecast)(Note) Revision to the forecast for dividends announced most recently:Year-end

TotalNo

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023(January 1, 2023 to December 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen

Full year
176,500
5.9
4,500
27.3
4,000
No(Note) Revision to the financial results forecast announced most recently:% Millions of yen

6.3* Notes:(1) Changes in significant subsidiaries during the six months ended June 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:Exclusion:(Company name:2,600%

Yen(36.9)

114.97No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:))
No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2023:
22,984,993 shares
December 31, 2022:
22,984,993 shares
2) Number of treasury shares at the end of the period:
June 30, 2023:
367,618 shares
December 31, 2022:
368,346 shares
3) Average number of shares outstanding during the period:
Six months ended June 30, 2023:
Six months ended June 30, 2022:

22,616,898 shares
22,614,492 shares* The total number of treasury shares at the end of the period includes the Company’s shares held by the “Board Benefit Trust” (254,700
shares for the period ended June 30, 2023, 255,800 shares for the period ended December 31, 2022). In addition, the Company’s shares
held by the “Board Benefit Trust” are included in the number of treasury shares deducted for the calculation of the average number ofshares during the period.

―2―

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2022
AssetsCurrent assetsCash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts

As of June 30, 2023

10,7498,806

27,57438,37253,562
10,335
1,434
5,792
(33)

57,16910,506
1,448
3,937
(54)

109,414120,187

26,27144,744

26,47644,762Other, net

12,902

13,192

Total property, plant and equipment

83,91984,431Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts

2,309

2,4155,686
5,816(654)

6,677
5,611
(712)

Total investments and other assets

10,848

11,576

97,07698,423

206,491

218,611

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netLand

Total non-current assets
Total assets―3―

(Millions of yen)
As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
OtherTotal current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
OtherTotal non-current liabilities

As of June 30, 2023

19,45726,042
26,754
13,537588
566
11,241

17,11026,00433,258
8,882
985
802
12,657

98,18999,701

20,811
4,097

28,865
4,097

163

157

18

29

3,244
908
6,711

3,107
9136,604

35,956

43,775

Total liabilities

134,146

143,477

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

23,344
13,13921,131(591)

23,344
13,13922,384(590)

57,02358,278

482

1,170

8
8,835
1,142
510

(119)
8,835
1,869
445

10,978

12,202

1212

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests

4,330

4,640

Total net assets

72,34575,133

206,491

218,611

Total liabilities and net assets―4―Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Millions of yen)
For the six months
ended June 30, 2022

For the six months
ended June 30, 2023

Net sales
Cost of sales

86,72161,54592,392
65,131Gross profit

25,17627,260

Selling, general and administrative expenses

22,60924,519Operating profit

2,567

2,741

69
136
766
486

89
215
877
429

1,459

1,611

309

546

185

193

63
140

425
183

698

1,350

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodCommission for syndicated loans
Other
Total non-operating expenses
Ordinary profit

3,328

3,003

Extraordinary income
Gain on sale of non-current assets
Gain on change in equity
Other2741
020-Total extraordinary income

69206514254
63

Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses

207118

Profit before income taxes

Total extraordinary losses

3,189

2,905

Income taxes - current
Income taxes - deferred

928
(332)

996
(145)

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

―5―

595

851

2,594

2,054

15

114

2,578

1,939

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Millions of yen)
For the six months
ended June 30, 2022

For the six months
ended June 30, 2023

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

2,594

2,054

3(55)
559
(107)

688
(153)
979
(64)

(9)

48

391

1,497

Comprehensive income

2,985

3,551

Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

2,955

3,16330387―6―

Quarterly Consolidated Statements of Cash Flows(Millions of yen)
For the six months
ended June 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
and intangible assets
Loss (gain) on change in equity
Decrease (increase) in trade receivables
Decrease (increase) in inventoriesIncrease (decrease) in trade payables
Other, net

For the six months
ended June 30, 2023
3,189
3,027
1142
111
(206)
309
(123)

2,905
2,817
63(150)
(304)
546
(195)

38

33

(41)
(12,285)(2,280)
4,407
2,249

(10,203)(2,533)(3,250)3,743(1,460)(6,527)

206
(302)
(528)

304
(552)
(796)

(2,085)(7,572)(3,115)(3,001)

228

189

(200)
(253)
22(0)
(253)
(7)

Net cash provided by (used in) investing activities(3,317)(3,073)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

5,868
2,136

6,271
13,194

Repayments of long-term loans payable
Proceeds from sale and leaseback transactions
Repayments of lease liabilities
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Other, net(3,406)
264
(886)
(312)
312(677)(4)(9,923)
163
(862)
(0)
(687)
(77)

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

3,294

8,078

254

371

(1,854)(2,195)

Cash and cash equivalents at beginning of period

14,80010,699Cash and cash equivalents at end of period

12,945

8,503

SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant and equipment
and intangible assets
Purchase of investment securities
Decrease (increase) in time deposits
Other, net―7―