November 12, 2018
ISEKI & CO., LTD.
Supplementary Information to Consolidated Financial Results(January 1, 2018 – September 30, 2018)
I. Consolidated results of operations for the nine months ended September 30, 2018 (Billions of yen, %)3Q of
3Q of FY ended
FY ending
December 31,
December 31,
2017
2018

Net sales

Year-on-year change

Amount%FY ending
December31, 2018
Achievem
forecast
ent rateannounced
on August 8,
2018

120.5

119.2

(1.3)

(1.1)

158.0

75.4%

Domestic

94.3

93.9

(0.4)

(0.5)

125.2

75.0%

Overseas

26.2

25.3

(0.9)

(3.5)

32.8

77.1%

Gross profit

36.0

35.4(0.6)

(1.8)

—

—

Gross profit margin

29.9%

29.7%(0.2)%

—

—

—

Selling, general andadministrative expenses

31.4

31.8

0.4

1.3

—

—

Operating income

4.6

3.6

(1.0)

(22.5)

4.5

79.8%

Operating income ratio

3.8%

3.0%

(0.8)%—

2.8%—

Balance of financialincome

(0.5)

(0.6)

(0.1)

—

—

—

Other non-operating
income

1.3

(0.2)

(1.5)

—

—

—

5.4

2.8(2.6)(49.2)

4.3

64.3%

Ordinary income ratio

4.5%

2.3%

(2.2)%—

2.7%—

Extraordinary income

0.1

0.10.0———Extraordinary losses

(0.6)

(0.1)

0.5

—

—

—

Income before income taxes

4.9

2.8

(2.1)

(43.6)

—

—

(1.6)

(0.6)

1.0

—

—

—

3.3

2.2

(1.1)

(33.4)

3.2

69.4%

Ordinary income

Income taxes
Profit attributable to ownersof parent

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(Sales breakdown)
3Q of
FY ended
December 31,
2017

3Q of
FY ending
December 31,
2018(Billions of yen)
FY ending
December31, 2018
Year-on-year
forecastchangeannounced
on August 8,
2018(0.7)
58.0
0.5
21.2
14.9
0.1
5.5
0.1

Agricultural machinery
Farming implements
Spare parts
Repair fees
Totals agricultural
machinery related
Construction of facilities
Other agriculture-related
business
Domestic sales total

43.0
15.5
11.2
4.1

42.3
16.0
11.3
4.2

73.8

73.8

0.0

99.6

5.6
14.9

5.0
15.1

(0.6)
0.2

6.2

94.3

93.9

(0.4)

125.2

North America
EuropeChina
ASEAN
Others
Product sales total
Spare parts
OthersOverseas sales total

6.0
8.5
3.0
3.3
2.1
22.9
1.9
1.4
26.2

8.3
8.4
1.0
2.5
1.4
21.6
1.9
1.8
25.3

2.3(0.1)
(2.0)
(0.8)
(0.7)
(1.3)
0.0
0.4(0.9)

10.7
11.1
1.1
3.9
1.6
28.4
2.7
1.7
32.8

Total net sales

120.5

119.2

(1.3)

158.0

21

19.4

1) Year-on-year change(1) Net sales: ¥119.2 billion (down ¥1.3 billion (1.1%) year on year)
 Sales in Japan: ¥93.9 billion (down ¥0.4 billion (0.5%) year on year)
Overall sales related to agricultural machinery were at substantially the same level year on year due todecreased sales of tractors, while favorable sales of rice transplanters and farming implements continued
thanks to the launch of new products. Construction of facilities decreased by ¥0.6 billion.
 Sales overseas: ¥25.3 billion (down ¥0.9 billion (3.5%) year on year)
Sales in North America increased by ¥2.3 billion due to the disappearance of the effects of partial changes
in business terms with an OEM partner in the same period of the previous fiscal year.
Sales in Europe were at substantially the same level year on year.
Sales in China decreased by ¥2.0 billion due mainly to decreased shipments of semi-finished ricetransplanters stemming from local inventory adjustment.
Sales in ASEAN decreased by ¥0.8 billion due mainly to decreased shipments of tractors stemming frominventory adjustments by a sales agent in Thailand, while shipments of tractors for Indonesia increased.
(2) Revenue: Operating income or loss worsened year on year partly due to temporary factors such asdecreased revenue and the application of the principle of calculating retirement benefits upon themerger of subsidiaries, despite ongoing improvements in the revenue-expenditure structure indomestic direct dealers. Ordinary income or loss worsened due to deteriorated earnings of anequity-method affiliate in China that was hit by the sluggish economy.
 Operating income: ¥3.6 billion (down ¥1.0 billion year on year) Ordinary income: ¥2.8 billion (down ¥2.6 billion year on year) Income before income taxes: ¥2.2 billion (down ¥1.1 billion year on year)
Operating income decreased by ¥1.0 billion primarily as a result of temporary factors such as unprofitable
construction of facilities and expenses resulting from the application of the principle of calculating
retirement benefits upon the merger of subsidiaries, as well as other factors such as increased development
costs for products responsive to the fourth emission gas regulations, etc. and increased personnel expenses,
in addition to a decrease in gross margin due to decreased revenue.
Ordinary income decreased by ¥2.6 billion mainly due to a worsening in foreign exchange gains or losses
and in the share of profit or loss of entities using equity method, as well as the disappearance of subsidyincome (non-operating income) recorded in the same period of the previous fiscal year.
Profit decreased by ¥1.1 billion due to decreased tax expenses resulting from the application of theconsolidated taxation system effective from the fiscal year ending December 31, 2018.

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II. Consolidated financial results forecast for the fiscal year ending December 31, 2018
We have revised the consolidated financial results forecast for the fiscal year ending December 31, 2018
announced on August 8, 2018 as follows in consideration of the actual financial results for the nine monthsended September 30, 2018, the current trends of orders received, and other factors. It should be noted thatthe dividend forecast has not been revised.
1) Net sales: ¥3.0 billion lower than the previous forecast (Japan: ¥(3.3) billion, overseas: ¥0.3billion)
 Sales in Japan have been revised downward in the amount of ¥3.3 billion taking into accountdecreased sales of agricultural machinery, construction of facilities, and other factors.
 Sales overseas have been revised upward in the amount of ¥0.3 billion taking into account continued
effect of the launch of new products in Europe.
2) Operating income: ¥1.3 billion lower than the previous forecast
Ordinary income: ¥1.7 billion lower than the previous forecast
 Operating income has been revised downward in the amount of ¥1.3 billion due to decreased grossprofit resulting from decreased sales and the increased burden of fixed manufacturing costs caused by
reduced production, despite efforts to cut down on expenses.
 Ordinary income has been revised downward in the amount of ¥1.7 billion taking into account aworsening in the share of loss of entities using equity method in addition to the downward revision tothe operating income.
3) Profit: ¥1.8 billion lower than the previous forecast[Consolidated financial results forecast for the fiscal year ending December 31, 2018](January 1, 2018 through December 31, 2018)(Billions of yen)
Latest forecast
Previousfor FY ending
forecast for FY
Difference
FY ended
December 31,ending
Year-on-year(previous/December 31,
2018
December 31,
changelatest)
2017(released on
2018 (releasedNovemberon August 8)
12)
158.4
158.0
(3.4)
(3.0)
155.0
Net sales
123.1125.2(1.2)
(3.3)
121.9
Domestic
35.3
32.8(2.2)
0.3
33.1
Overseas
Operating income

4.0

4.5

3.2(0.8)(1.3)

Ordinary income
Profit attributableto owners ofparent

4.2

4.3

2.6

(1.6)

(1.7)

2.8

3.2

1.4

(1.4)

(1.8)

* The assumed foreign exchange rates for the fiscal year:¥110 per U.S. dollar (unchanged)¥130 per euro (unchanged)[Year-end dividend forecast for the fiscal year ending December 31, 2018]
We plan to pay the year-end dividends in the amount of ¥30.00 per share (unchanged).

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