May 14, 2009
Stock Exchange Listing Tokyo, Osaka
ISEKI & CO., LTD
6310(URL http://www.iseki.co.jp)
President
Name Seiichiro Gamo
General Manager of FinanceName Hiroshi Yunoki
Telephone: +81 3 5604 7671
Date of the Regular Meeting of Shareholders:June 26, 2009
Date of Submission of the Securities Report:
June 29, 2009
Name of listed company:
Company Code:
Representative: Title
Enquiries:
Title

Summary Announcement of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2009
I. Financial Results for the Fiscal Year Ended March 31, 2009

(April 1, 2008－March 31, 2009)

A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Year Ended
March 31, 2009%

149,601
1,577
771
2

3.4
114.5
-

Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted
Return on Equity

0.01
0.01

(%)

Return on Total Assets(%)

Ordinary Income to Net SalesYear Ended(%)

March 31, 2008
144,714735
34(1,466)%(5.9)(67.2)(97.3)-(6.49)
-

0.0

(2.8)

0.4

0.0

1.1

0.5

Notes: Investment gain (loss) by equity method:Year ended March 31, 2009－

Year ended March 31, 2008

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, 2009

March 31, 2008

171,00251,69429.4
222.44

173,198
52,55629.4
225.76

Notes:
Shareholders’ equity:Year ended March 31, 2009 ¥50,214 mil.

Year ended March 31, 2008 ¥50,981 mil.

1－

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

Year EndedYear Ended

March 31, 2009

March 31, 2008

8,960
(3,507)(5,603)
5,609

3,861
(2,904)
(412)
5,687

Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Cash and Cash Equivalents at End of Period
II. Dividends

Dividend per share （yen）
End of fiscal year
AnnualAnnual cash dividend per share
Payout ratio (%, consolidated)
Ratio of dividend to net assets(%, consolidated)Year EndedYear EndedYear ending

March 31,

March 31,

March 31, 2010

2009

2008

Forecast

－

－

－

0.00

0.00

0.00

－
－
－

－
－
－

－

III. Forecast for the Fiscal Year Ending March 31, 2010 (April 1, 2009－March 31, 2010)(Rounded down to millions of yen, % indicates changes from the previous same period)
Net Sales

Operating

OrdinaryNet

Net Income per

IncomeIncomeIncomeshare (yen)300 (56.6)

1.33

－

7.09

Interim75,000

(2.6)

1,100

(9.4)

800

(29.0)

Annual

154,000

2.9

3,800

140.9

2,800

262.8

1,600

IV. Others
A Change in important subsidiaries during the period (change in specified subsidiaries which accompanies a change
in the range of consolidation): None.
B Change in principle, procedure and method of statement of accounting procedures in preparation of consolidated
financial statements (as stated in “Changes in essential matters which provide a basis for preparation ofConsolidated Financial Statements”)
1) Change which accompanies revision of accounting standards: Yes
2) Change other than No.1.
No(Note) For details, please refer to (Change in accounting policy) in the “Important Basic Items for Preparing
Consolidated Financial Statements”, P22, and “Changes in Important Basic Items for Preparing
Consolidated Financial Statements” and “Changes in Presentation of Financial Statements”, P24 & 25.
C Outstanding shares (Common shares)
1) Outstanding shares (Including treasury shares)
As of March 31, 2009
226,536,329 shares
As of March 31, 2008
226,536,329 shares
2) Outstanding treasury shares
As of March 31, 2009
790,839 shares
As of March 31, 2008
711,509 shares(Note) Please refer to P29 “Per Share Information” as to the number of shares which provides a base for calculating net

2

income per share (consolidated).
(Reference) Non-consolidated Financial Results
I. Financial Results for the Fiscal Year Ended March 31, 2009

(April 1, 2008－March 31, 2009)

A. Results of operations(Rounded down to millions of yen, % indicates changes from previous period)
Year EndedYear Ended

March 31, 2009%

March 31, 2007%

Net Sales

90,331

6.3

84,965(6.4)

Operating Income

(327)

－

(455)

－

Ordinary Income

1,579

－

(193)

－

Net Income

1,110

－

(1,430)－Net Income per Share (yen)Non-diluted
Fully Diluted

4.92
4.83

(6.33)－

B. Financial Position(Rounded down to millions of yen)March 31, 2009

March 31, 2008

Total Assets

122,725

123,716

Shareholders’ Equity

47,35946,961

(%)

38.6

38.0

(yen)

209.79207.96

Shareholders’ Equity to Total Assets Ratio
Shareholders’ Equity per Share
Notes: Shareholders’ Equity

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

Year ended March 31, 2008 ¥46,961 mil.

II. Forecast for the Fiscal Year Ending March 31, 2010 (April 1, 2009－March 31, 2010)(Rounded down to millions of yen, % indicates changes from the previous same period)
Net Sales

Operating

Ordinary Income

Net Income

IncomeNet Income pershare (yen)Interim42,000

(8.9)

0

－

0

(100.0)0(100.0)

0.00

Annual

94,5000

4.6

700

－

800

(49.3)

700(36.9)

3.10

Cautionary statement: The forecast for operating results has been produced based on information presently
available. It is possible that in the future actual results may differ from the anticipatedfigures for a variety of reasons. Please refer to page 5 of attached material for the matter
concerning the above-mentioned expectation.

3

1. Management Performance(1) Analysis of Management Performance1) The Fiscal Period in Review
In the fiscal year under review, the slowdown in the Japanese economy intensified in the first half, driven
by deterioration in corporate earnings due to soaring crude oil and material prices and by stagnant personal
consumption and other factors. In the second half, following the failure of Lehman Brothers, a major financial
crisis swept through the world, causing sharp declines in economies around the world, including not only incountries with advanced economies, but also in emerging market countries. Along with the sharp appreciation of
the yen against other currencies, exports fell dramatically, leading to substantial decreases in corporate profits anda further rapid deterioration in the economy.
Domestic demand for agricultural machinery was stimulated by an increase in energy conservation andlow-cost agriculture businesses prompted by Japan’s agricultural policy’s emphasis on raising the foodself-sufficiency ratio. On the other hand, there was an unavoidable decline in exports in the second half along withthe surge in the yen’s value against other currencies.
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. The Group also aggressively promoted sales activities, endeavoring to expand both domestic sales andexports.
(Consolidated business performance for the fiscal year)
In the fiscal year ended March 2009, sales increased ¥4,887 million from the previous period to ¥149,601
million (up 3.4%). Centering on agricultural machinery, domestic sales increased ¥3,872 million year on year to¥126,545 million (up 3.2%), supported by a rush of demand in advent of a price increase as well as the positive
influence of the government’s agricultural policy. Overseas sales increased ¥1,015 million from the previous
period to ¥23,056 million (up 4.6%), assisted by the end of inventory adjustments by a North American OEM
customer in the first half and strong sales in Asia. Operating income increased ¥842 million to ¥1,577 million due
to increased gross profit based on greater earnings.
Ordinary income increased ¥737 million from a year earlier to ¥771 million. Net income increased¥1,468 million, to ¥2 million, a reversal from the loss posted in the previous fiscal year.
(Non-consolidated business performance of the fiscal year)
In the current fiscal year, sales amounted to ¥90,331 million (up 6.3% year on year), operating income
was a loss of ¥327 million and ordinary income was ¥1,579 million. The Company recorded net income of ¥1,110
million.

2) Sales by Product(Domestic)
Sales of machinery for sail preparation (tractors, tillers, etc.) increased to ¥27,473 million (up 2.0% fromthe previous period), supported by strong sales of tractors and tillers. Driven by robust sales of PZ series ricetransplanters, sales of cultivating machinery (rice transplanters and vegetable transplanters) surged to ¥13,347
million (up 16.3% from a year earlier). Other categories also performed well. Sales of harvesting and processing
machines increased to ¥25,285 million (up 4.4%) on the strength of sales of the Group’s mainstay combine

4harvesters, dryers, and rice hulling machines. Sales of spare parts and farming implements were ¥29,559 million(up 6.1%). Moreover, sales of other agricultural related items were ¥21,706 million (up 0.8%), while sales ofagricultural facilities were up marginally at ¥4,053 million (up 0.04%). Other sales, however, declined to ¥9,172
million (down 13.7%).
(Overseas)
Sales of machinery for sail preparation increased to ¥17,668 million (up 4.3% year on year), boosted by
the normalization of tractor orders following the end of inventory adjustments by a North American OEM
customer in the first half of the fiscal year. Among other product categories, harvesting and processing machinery
increased to ¥1,329 million (up 21.2%) based on continued growth in the China market. Sales of cultivatingmachinery, however, fell to ¥1,970 million (down 16.7%), while sales of spare parts and farming implements
decreased to ¥985 million (down 10.6%).

3) Forecast for the Next Consolidated Fiscal Year
Although the rapid rise in material prices caused by the hikes in crude oil and iron ore prices has subsided,
the Japanese economy remains in recession. Nevertheless, we expect the business climate surrounding the
agricultural industry to improve because of the demand for agricultural machinery that has been stimulated by the
implementation of measures to boost the food self-sufficiency rate under the government’s agricultural policy,
even through market competition will heat up.
Under such circumstances, we will try to secure sales by aggressive introduction of new products. We areplanning domestic sales growth based on the synergetic effect of continuous introduction of new products, further
enrichment of our service as well as reinforced sales power. Overseas, despite the further expansion of sales in thegrowing Chinese market, we expect sales to North America and Europe to decline because of the appreciation of
the yen against the currencies of those regions.

(2) Analysis of Financial Position
Total assets at the end of the fiscal year decreased ¥2.2 billion year on year, to ¥171.0 billion. Looking at a
breakdown, current assets fell ¥0.1 billion from the previous fiscal year. Fixed assets decreased ¥2.1 billion from ayear earlier, while investments and other assets decreased ¥2.3 billion, primarily due to investment securities. Total
liabilities decreased ¥1.3 billion from the previous period as a result of declines in short-term borrowings andlong-term debt. Declining stock prices drove net assets down ¥0.9 billion from the previous fiscal year, to ¥51.7
billion. The equity ratio was 29.4%.
(Cash flows from operating activities)
Cash flow from operating activities provided a net cash inflow of ¥9.0 billion (up ¥5.1 billion from thesame period last year) comprised principally of before tax net income of ¥0.5 billion, depreciation expenses of ¥4.7
billion, and an increase in accounts payable of ¥3.5 billion.
(Cash flows from investment activities)
Cash flow from investment activities resulted in a net cash outflow of ¥3.5 billion (an increase of ¥0.6
billion from a year earlier), comprised mainly of capital investment expenditure of ¥5.1 billion, gain on sales ofinvestment securities of ¥0.5 billion, and gain on sale of shares of subsidiaries of ¥0.7 billion.
(Cash flows from financial activities)

5Cash flow from financial activities amounted to a net cash outflow of ¥5.6 billion (an increase of ¥5.2
billion year on year), due primarily to the repayment of interest-bearing debt.

The trend of cash flow indicators is as follows.
Indicator

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

2006

2007

2008

2009

Equity ratio

(%)

30.5

29.8

29.4

29.4

Market-based equity ratio

(%)

66.2

30.4

21.1

31.4

Cash flow/Interest bearing liabilities Ratio (times)

13.8

64.6

15.0

5.7

Interest coverage ratio

4.0

0.9

3.3

7.6

(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: Cash flows from operating activities / 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 cash flows from operating activities as per the Consolidated
Statement of Cash Flows. Interest-bearing liabilities use all the borrowings and debt as recorded in
the Consolidated Balance Sheets. The Interest payments use the interest paid as recorded in theConsolidated Statement of Cash Flows.
(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2008 and 2009
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 ending March 31, 2009, we apologize to the shareholders but
we would like to pass on the end of year dividend in light of the sluggish business performance of the current fiscal
year.
With respect to dividends for the fiscal year ending March 31, 2010, we will also be obliged to pass on
the dividend payment. We are determined to take the necessary steps in order to reinforce a basis of 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

6

There is a possibility that a hike in interest rate may harm our financial performance.
4) Stock Market Fluctuation
As we hold securities, downward of the stock price 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 should be 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, law suites 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 Anti Trust Law as well as thesubcontract law requires fair and transparent dealings. Also application of environmental laws requires
compliance oriented management, and we are determined to dedicate ourselves in a body to accomplish
complete legal compliance, by preparing internal control system. In spite of such efforts, if any of ourdirectors and/or employees should conduct themselves in any way violating laws and regulations, there is apossibility that the business activities of our group will be restrained causing increased costs or decreased
revenues, leading to deteriorated performance.
12) Debt
The Company has concluded syndicate loan or commitment line contracts with financial institutions.
Should any of the financial conditions of these contracts be triggered, the Company could face obligations to
pay back some or all of these loans, which could negatively affect the financial position of the Company.
13) Going Concern Assumption
On a non-consolidated basis, the Company has posted operating losses for the previous fiscal year and thefiscal year in review. However, in the opinion of the Company, this performance does not have any significanceregarding the assumption that the Company is a going concern. Because the surge in material prices and the
sharp appreciation of the yen were the primary factors putting downward pressure on operating income andbecause the upward price revisions on domestic products implemented on August 1 of the fiscal year in review
had limited benefit in the fiscal year under review, the Company judges that the operating loss of the fiscal year
under review is a temporary event. Furthermore, as indicated in the performance forecast for the current fiscal
year, the Company is expecting to be back in the black in the current fiscal year.
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 or 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.

7

2. The Iseki GroupThe main business of the Iseki Group is the development, manufacture and sale of agricultural
machinery for rice and vegetable farming. We also market consumer-oriented products, manufacture testing
equipment, and are currently developing our sales and service as well as other business activities.
Below is a diagrammatic representation of the Iseki Group.
(Agricultural Machinery)
The development and design of agricultural machinery is primarily handled by the parent company.
Nine 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)

Sales

Sales

Consolidated Subsidiaries:

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

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

Products

Sales
Products& Parts

Consolidated Subsidiary:
Iseki BUTSURYU Co., Ltd.

& Parts

Consumer-oriented products, and other

Overseas Users &Customers

Transport

Agricultural Machinery

Others

ISEKI←Consolidated Subsidiaries：
Isec Co., Ltd.
Iseki Constructions Co.,Ltd..
System Equipment Co., Ltd.

Parts

Consolidated Subsidiary：
Iseki - Changzhou Mfg. Co.,
Ltd. (China)

Products & Parts

Consolidated Subsidiaries:
Iseki-Matsuyama Mfg. Co., Ltd.
Iseki-Kumamoto Mfg. Co., Ltd.
and 6 other companiesi83. Iseki’s Management Policies
1. Iseki’s Basic Management Principles
During the 80 years since its establishment, ISEKI has contributed 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 laborsaving 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. Three-year Plan 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. We are in the process of formulating basic management strategies for our next three-yearplan and will announce them when completed.
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. With respect to the system, to ensure theefficient execution by directors of their jobs, we have not merely prepared various regulations and systems such as a
job assignment regulation and internal control regulation. Rather, important issues are given multilateral discussion
and study at the management meeting. Furthermore, we have a system to properly keep in custody and control any
information related to their job execution, such as the minutes of the board of directors and the approval documents.
In terms of a compliance system, we created an across the organization “compliance team” under thesupervision of the director in charge of compliance as of June 1, 2007. We endeavor to prevent any occurrence of
injustice and misconduct by ensuring a full understanding of compliance on the part of all directors and employees
by continuously holding compliance seminars with the initiative of the 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 as of June 1, 2007 which assumed the ordinary
monitoring function of our manufacturing subsidiaries. Thus, we intend to strengthen the control function of our

9manufacturing subsidiaries.
For sales and other subsidiaries, we let them handle internal auditing themselves by having an internal
auditing function at each company. Furthermore, we created a “Management Control Section” under the Head of theBusiness Division as of June 1, 2007, which inspects the degree of implementation of internal auditing and gives
necessary guidance.
We also created a “Management Supervisory Committee” as of June 1, 2007, which is comprised of the
President as chairperson, with all directors as members and all auditors as observers, so that we can follow thediscussion of measures and their progress status as well as to check the degree of thoroughness of compliance.

B. Rejection of antisocial forces
1. 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”.
2. 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
contacts and association with external organizations such as the police department and anti violation movement
promotion centers and lawyers.
We also belong to the Metropolitan area violation prevention association and receive regular guidance andsharing of information.

2) Important issues
In the midst of a drastically changing market environment, we will speed up our earning structure reformin order to build corporate fundamentals which will enable us to secure a stable earning for the foreseeable future.
Along with our efforts to maintain and expand sales through enhanced customer satisfaction by way of providing
high quality products at low prices and offer service from the standpoint of customers, we endeavor to establish a
low-cost structure and strengthen consolidated financial stability.

A. Recovery of 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 productcompetitiveness. We will not only carry out fundamental quality improvement of products, with an accuratecomprehension of the market needs, but also make a timely product planning and introduction to the market. In thedomestic market, we aim at achieving a recovery of sales by promoting efficient sales promotion, taking advantage
of agile sales companies with wide territories, as well as by further enhancement of customer satisfaction by10

strengthened sales and service performance. In our efforts to expand overseas sales, we will endeavor to strengthen
our sales and service system in Asian market, which has growth potential, and plan to increase sales and establish
ourselves in these markets. 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
With the consideration of products that give the confidence to all of our customers as our first priority, we
are improving our development process in pursuit of zero defects. Our development and manufacturing operations
are working together to improve the production process and establish a quality guarantee framework that will lead to
upgrading of 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 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 will on implement structural reforms, including restructuring, to streamline our organization.
Throughout the Group, we will endeavor to secure our profitability by cutting original 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
communications, thereby revitalizing its employees. The company is considering and implementing various methods,
including appropriate job rotations, exchange of personnel between organizations, and conducting training andeducation programs.
With the aim of being able to respond quickly to dramatic shifts in the business environment and to
improve management efficiency, we appointed directors from the president on down as executive officers. Alongwith executive officers who are not directors, these new executive officers will aim to strengthen execution
efficiency. In addition, we are planning to unify the management team and speed up decision making by reducing thenumber of directors.
Moreover, we are engaged in response to environmental issues as one of the most important managerial
issues. We will strengthen our commitment to resource saving, energy saving, recycling, exhaustion gas and noise,etc.

4. Other Important Issues of Corporate Management
Not particularly.

114. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)
FY2008(as of Mar. 31, 2008)

FY2009(as of Mar. 31, 2009)

AssetsCurrent assets:
Cash and time deposits

5,817

5,708

Notes and accounts receivable

28,84028,73453

280

42,642－Finished goods & parts for sales－

37,944

Goods in process

－

2,696

Raw materials and supplies

－

1,336

Deferred income taxes

313

353

Others

3,117

3,638

Allowance for doubtful accounts

(93)

(79)

80,69180,611

Buildings and structures (Net)16,293

15,638

Machinery, equipment and vehicles (Net)

9,047

8,636

Furniture and fixtures (Net)

3,067

2,822

Land

50,72950,463

Lease assets (Net)

－

1,869

Construction in progress

651

533

Others (Net)32

24

79,82079,988

835

842

6,324

4,647

Long-term loans

188

178

Deferred income taxes

596

751

Others

5,396

4,455

Allowance for doubtful accounts

(655)

(473)

11,8509,559

92,50690,390173,198

171,002

Marketable securities
Inventories

Total current assets
Fixed Assets:
Tangible fixed assets

Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities

Total investments and other assets
Total fixed assets
Total Assets

12

(millions of yen)
FY2008(as of Mar. 31, 2008)

FY2009(as of Mar. 31, 2009)

Liabilities
Current Liabilities:
Notes and accounts payable, trade

40,78843,801

Short-term borrowings

25,092

20,980

100

1,485

9,469

10,395

Lease liabilities－

481

Accrued consumption taxes

532

313

Accrued income taxes

511

715

3,145

3,494

462

429

2,962

3,396

83,06685,493

Bonds

2,545

1,060

Long-term debt

20,726

16,748

Lease liabilities

－

1,568

Deferred income taxes

854

337

Deferred tax liability from land revaluation gain

7,595

7,595

Accrued retirement benefits for employees

4,164

4,829

Accrued directors’ retirement benefits

318

380

Goodwill

46

12

Others

1,324

1,283

37,57533,814

120,641

119,308

Common stock

22,78422,784

Capital surplus

12,815

12,815Retained earnings

4,081

4,072

Treasury stock

(167)

(185)

39,514

39,486907

212

10,527

10,52731(11)

11,466

10,728

Bonds due within one year
Long-term debt due within one year

Accrued expenses
Provision for bonuses
OthersTotal current liabilities
Long-term Liabilities:

Total long-term liabilities
Total liabilities
Net Assete
Shareholders’ equity

Total shareholders’ equity
Valuation and translation adjustments
Net unrealized holding gains on securities
Land revaluation reserve
Foreign currency translation adjustments
Total valuation and translation adjustments

13

Minority interests in consolidated subsidiaries

1,575

1,479

Total Net Assets

52,556

51,694

Total Liabilities and Net Assets

173,198

171,00214

(2) Consolidated Statements of Income(millions of yen)
FY2008(Apr. 1, 2007Mar. 31, 2008)

FY2009(Apr. 1, 2008Mar. 31, 2009)

Net sales

144,714

149,601

Cost of sales

99,602

103,736

Gross profit

45,11245,86544,37644,287735

1,577Interest income

223

269

Dividend income

142

175

Amortization of negative goodwill

337

27

Subsidies received

174

140

Lease payments received

128

138

Sales of scrap

55

203

Others

536

624

1,599

1,579

Interest expenses

1,163

1,155

Sales discounts

149

139

Foreign exchange losses

194

158

Loss on disposal of obsolete inventories

509

579

Others

283

353

2,300

2,384

34

771

56

61

1,346

144

Gain on sale of subsidiary－

351

Reversal of allowance for directors’ retirement benefits

28－

Others

15

39

1,447

596

Loss on sale and disposal of property, plant and equipment

282

257

Impairment loss－

18

Evaluation loss on investment securities

6

109

Evaluation loss on golf club membership

3

0

920

－

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

Total non-operating income
Non-operating Expenses

Total non-operating expenses
Ordinary income
Extraordinary Gains
Gain on sale and disposal of property, plant and equipment
Gain on sale of investment securities

Total extraordinary gains
Extraordinary Losses

Special retirement benefits paid

15

Loss on bad debt

385－

Retirement benefits for directors and corporate auditors

93

14

5

144

Cost of measures for product recall

180

278

Compensation for subcontractor expenses

126－

Others

－

87

2,004

911

Income (loss) before income taxes and minority interests

(521)

457

Income taxes

649

881

Reversal of past year corporate and other taxes

(852)

(72)

Income taxes—deferred

1,139

(353)

936

455

8

(0)

(1,466)2

Provision for prior period retirement benefits for directors
and corporate auditors

Total extraordinary losses

Total income taxes
Minority interests in income (or loss)
Net Income (Loss)16

(3) Consolidated Statements of Changes in Net Assets(millions of yen)
FY2008FY2009(Apr. 1, 2007-(Apr. 1, 2008-

Mar. 31, 2008)

Mar. 31, 2009)

Shareholders’ equity
Common stock
Balance at the end of previous period

22,78422,784－－22,78422,784

12,815

12,815－－

12,815

12,815

5,548

4,081

(1,466)

2

－

(11)

(1,466)

(9)

4,081

4,072

(163)

(167)

Purchase of treasury stock

(4)

(18)

Total changes in items during the period

(4)

(18)

(167)

(185)

40,98539,514(1,466)2

Purchase of treasury stock

(4)

(18)

Changes in the scope of consolidation

－

(11)

(1,470)(28)

39,514

39,486

Changes in items during the period
Total changes in items during the period
Balance at the end of period
Capital surplus
Balance at the end of previous period
Changes in items during the period
Total changes in items during the period
Balance at the end of period
Retained earnings
Balance at the end of previous period
Changes in items during the period
Net income or loss
Changes in the scope of consolidation
Total changes in items during the period
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 period
Total shareholders’ equity
Balance at the end of previous period
Changes in items during the period
Net income or loss

Total changes in items during the period
Balance at the end of period

17Valuation and translation adjustments
Net unrealized holding gain on securities
Balance at the end of previous period

2,598

907

(1,690)(695)(1,690)

(695)

907

212

10,527

10,527－－

10,527

10,527

28

31

3

(42)

3

(42)

31

(11)

13,153

11,466(1,686)(738)(1,686)(738)

11,466

10,728

1,585

1,575

(10)

(95)

(10)

(95)

1,575

1,479

55,72452,556(1,466)

2

Changes in items during the period
Net change in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of period
Land revaluation reserve
Balance at the end of previous period
Changes in items during the period
Total changes in items during the period
Balance at the end of period
Foreign currency translation adjustments
Balance at the end of previous period
Changes in items during the period
Net change in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of period
Total valuation and translation adjustments
Balance at the end of previous period
Changes in items during the period
Net change in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of period
Minority interests in consolidated subsidiaries
Balance at the end of previous period
Changes in items during the period
Net change in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of period
Total net assets
Balance at the end of previous period
Changes in items during the period
Net income or loss

18

Purchase of treasury stock

(4)

(18)

Changes in the scope of consolidation

－

(11)

(1,696)(834)(3,167)(862)

52,556

51,694

Net change in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of period19(4) Consolidated Statements of Cash Flows(millions of yen)
FY2008(Apr. 1, 2007Mar. 31, 2008)

FY2009(Apr. 1, 2008Mar. 31, 2009)

Cash Flows from Operating Activities:
Income before income taxes and minority interests

(521)

457

Depreciation and amortization

4,363

4,677

－

18

(337)

(27)

Increase (decrease) in reserve for retirement benefits(1,021)

733

Loss (gain) on sales of investment securities(1,346)(138)

Loss (gain) on sales of shares of subsidiary

－

(319)

Loss on evaluation of golf club membership

30Interest and dividend income

(366)

(444)

Interest expenses

1,163

1,155

Loss (gain) on foreign exchange

(142)

(183)

Loss (gain) on sales of tangible and intangible fixed assets

226

196

Special retirement benefits

920－

Decrease (increase) in notes and accounts receivable

3,110

(352)

Decrease (increase) in inventories

2,868

258

Increase (decrease) in notes and accounts payable(1,564)

3,452

Others(1,026)

1,119

Subtotal

6,328

10,601370

441(1,162)(1,171)

Special retirement benefits paid

(920)

－

Income taxes paid

(813)

(1,026)

59

116

3,861

8,960

Payments for purchases of marketable securities

(23)

(122)

Proceeds from sale of short-term securities

23

53(5,211)(5,086)

695

376

Payments for purchases of investment securities(1,615)(206)

Proceeds from sale of investment securities

2,597

531

－

694

Net decrease (increase) in long-term loans

35

11

Net decrease (increase) in time deposits

155

(3)

Impairment loss
Goodwill amortization

Interest and dividends received
Interest paid

Refunded income taxes
Net cash provided by (used in) operating activities
Cash Flows from Investing Activities:

Payments for purchases of tangible and intangible fixed assets
Proceeds from sale of tangible and intangible fixed assets

Proceeds from sales of shares of subsidiary based on change
in scope of consolidation

20

Others438

243(2,904)(3,507)929(3,999)Proceeds from long-term debt

12,4908,260

Repayments of long-term debt

(8,274)(10,899)

Redemption of bonds(5,540)(100)

Proceeds from sell and leaseback transactions

－

1,259

Repayment of lease obligations

－

(93)

Payments for purchases of treasury stock

(4)

(18)

Others(13)(11)

Net cash used in financing activities(412)(5,603)

157

73

702

(77)

Cash and Cash Equivalents at beginning of year

4,985

5,687

Cash and Cash Equivalents at end of year

5,687

5,609

Net cash used in (provided by) investing activities
Cash Flows from Financing Activities:
Net increase (decrease) in short-term borrowings

Effect of Exchange rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents21

(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……….26 companies(including Iseki-Matsuyama Mfg. Co., Ltd., Iseki-Kumamoto Mfg. Co., Ltd., Iseki-Hokkaido Co., Ltd. andIseki-Tohoku Co., Ltd.)
Based on the sales of shares and the mergers, the number of consolidated subsidiaries declined by 3.

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. Twelve 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 occur between the
consolidated balance 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
Other 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 at 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)(Change in accounting policy)
Commencing with the fiscal year under review, the Company is adopting Accounting Standard for Measurementof Inventories (Statement No. 9, July 5, 2006, Accounting Standards Board of Japan)
Based on this change, operating income, ordinary income, and income before income taxes and minority
interests declined by ¥481 million compared with the previous method.
(c) Derivatives........................................................ recorded using the market value method22

(2) Depreciation methods for material depreciable assets(a) Tangible fixed assets (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 building fixtures and furnishings) acquired on or after April
1, 1998, the straight-line method is used.
(b) Intangible fixed 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) Accrued retirement benefits for employees
Accrued retirement benefits for employees is recorded as at the end of the consolidated accounting
period, and is principally based on the amounts for the obligation for employees' retirement benefits andpension 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 theestimated remaining 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
the following consolidated fiscal period.
(d) Accrued directors’ retirement benefits
The company and some of the consolidated subsidiaries record an accrued directors’ retirement benefits
to provide for directors' retirement benefits in an amount as required by companies’ internal
regulations.

(4) Foreign currency translation
Monetary assets and liabilities in foreign currencies are translated into yen at the rates of exchange in effect23

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 adjustments” in shareholders’equity and financial statements.

(5) 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.

(6) 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) Accounting Standards for Lease Transactions
Previously, the Company accounted for finance leases that do not involve transfer of ownership to lessee as
operating leases. However, beginning with fiscal year under review, the Company has adopted “Accounting

24

Standards for Lease Transactions” (1st Committee of Business Accounting Council, June 17, 1993 revised by the
Accounting Standards Board of Japan (ASBJ) Statement No.13, March 30, 2007) and “Guidance on AccountingStandards for Lease Transactions” (Auditing Committee of the Japanese Institute of Certified Public Accountants,
January 18, 1994 revised by ASBJ Guidance No.16, March 30, 2007). Based on adopting these standards, theCompany will now account for finance leases that do not involve transfer of ownership to lessee as ordinary leasetransactions.
The impact of these accounting changes on profits and losses was minimal.

2) Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements

Commencing with the fiscal year under review, the Company has adopted “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (ASBJ Practical Issues
Task Force No. 18, May, 2006).

(8) Changes in Presentation of Financial Statements(Consolidated Balance Sheets)
Along with the adoption of the “Cabinet Office Ordinance Concerning the Partial Revision of Rules, etc. for
Financial Statement Terminology and Methods of Presentation and Preparation” (Cabinet Office Ordinance No. 50,
August 7, 2008), starting with the fiscal year under review the items listed as “Inventories” in the previous fiscal
year have been separated into “Finished goods & parts for sales”, “Goods in process”, and “Raw materials andsupplies.” Of the amount classified as inventories in the previous fiscal year, finished goods & parts for sales, goods
in process, and raw materials and supplies accounted for ¥38,363 million, ¥3,011 million, and ¥1,267 million,
respectively.

(Consolidated Balance Sheets, Statement of Income, and Statement of Cash Flows)
To enable comparisons, the items included as “Others” in the consolidated statements of the previous fiscal year
have been revised.

25

(9) Notes to the Consolidated Statements(Consolidated Balance Sheet Information)

FY2009FY2008
Accumulated depreciation of
1. tangible fixsed assets
87,995 million yen
88,762 million yen
2. Guaranteed liabilities
9,639 million yen
9,531 million yen
3. Notes receivable less discount98 million yen- million yen
4. Endorsed notes receivable
507 million yen
431 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 gain" and the deducted amount has been recorded in the assets as a "Landrevaluation reserve".
・ Revaluation method
・・・・・The revaluation of land has been determined using a reasonableadjustment to the assessed value of the fixed assets 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・・・・(10,123 million yen)
the period and therevalued book value(Consolidated Statements of Income Information)

FY2008FY2009

1. Research and development expenses 3,894 million yen

4,106 million yen

2 . Impairment loss
FY2008 (April 1, 2007-March 31, 2008)
Not applicable

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

Idle property

Type

Location

Impairment loss

Buildings, landGamo, Shiga Pref.

4

Land

Yonago, Tottori Pref.

3

Land

Mitoyo, Kagawa Pref.

6

Land

Kirishima, Kagoshima
Pref.

3

Total

18

26

(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 fixed assets for property tax.

(Consolidated Statements of Changes in Net Assets Information)
FY2008 (Apr. 1, 2007-March 31, 2008)
1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury stock
Number of shares(as of Mar. 31, 2007)

Increase in numberof shares during
periodDecrease in numberof shares during
periodNumber of shares(as of Mar. 31, 2008)

226,536,329——

226,536,329

690,113

21,396—

711,509(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

Increase in the number of shares, 21,396 shares during the period was by purchasing of shares below stock trading
unit.

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 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(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

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

(Consolidated Statements of Cash Flows Information)
Reconciliation between the end of period balance of cash and cash equivalents and the amount reported in theConsolidated Balance Sheet.
FY2008Cash and time deposits

FY20095,817 million yen

5,708 million yen

3 months or more

(130)

(98)

Total cash and cash equivalents

5,687

5,609

Time deposits with terms of27

(Segment Information)
1. Business Segment Information
For this period (April 1, 2008 – March 31, 2009) and the previous period (April 1, 2007 – March 31, 2008),
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, 2008 – March 31, 2009) and the previous period (April 1, 2007 – March 31, 2008), 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.

3. Overseas Sales Information
FY2008 (April 1, 2007 – March 31, 2008)(millions of yen)
The
UnitedStatesI

Overseas sales

II

Consolidated net sales

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

EuropeOthers

Total

5,679

11,2205,141

22,041－－－

144,714

3.9

7.8

3.5

15.2

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

(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.

28

(Per Share Information)(yen)
FY2008FY2009Net assets per share

225.76222.44

Net income per share(6.49)

0.01

－

0.01

Net income per share after adjustment for dilutive securities(Note) Basis of calculation of net income per share and net income per share after adjustment for dilutive
securities are as follows.
FY2008FY2009Net income per share
Net income per share on consolidated profit and loss statement(1,466)2(millions of yen)
Net income attributed to common shares(millions of yen)

(1,466)2

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

225,836,333

225,783,398(millions of yen)－－(shares)

12,729,858

4,127,218(12,729,858)(4,127,218)－－

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(equity warrants, 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-

Securities-

Retirement benefits-

Corporate union etc.

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

Derivative transactions-

Stock options-

Important issues which occurred later29

Production, Orders & Sales
1.

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

FY2008FY2009(Apr. 1, 2007-Mar. 31, 2008)(Apr. 1, 2008-Mar. 31, 2009)

Machinery for soil
preparation

43,514

43,348(166)

Cultivating machinery

16,293

21,452

5,158

25,49930,057

4,558

2,295

2,318

23

5,765

6,350

584

Others

1,845

890

(954)

Total

95,213

104,417

9,204

Product-type

Harvesting andprocessing machinery
Parts and farming
implements
Agricultural machinery
relatedNote: 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(million of yen)
Product-type

FY2008FY2009(Apr. 1, 2007-Mar. 31, 2008)(Apr. 1, 2008-Mar. 31, 2009)

AmountRatio

Amount%Ratio

Change from previous
periodAmount%

Ratio%

Machinery for soil
preparation

43,87130.3

45,142

30.2

1,270

2.9

Cultivating machinery

13,841

9.6

15,318

10.2

1,476

10.7

25,32917.5

26,614

17.8

1,285

5.1

28,96520.0

30,545

20.4

1,580

5.5

21,92815.2

22,702

15.2

773

3.5

Others

10,778

7.4

9,279

6.2

(1,498)(13.9)

Total

144,714100

149,601

100

4,887

3.4

Harvesting andprocessing machinery
Parts and farming
implements
Agricultural machinery
related30

(2) Domestic(millions of yen)
FY2009(Apr 1, 2008
- Mar 31, 2009)

FY2008(Apr 1, 2007
- Mar 31, 2008)
Product-type

amountratio

amountChangefrom previous period

ratio

%

Machinery for soil preparation

26,937amount

ratio

%

%

22.0

27,473

21.7

535

2.0

Cultivating machinery

11,475

9.4

13,347

10.5

1,872

16.3

Harvesting and processing machinery

24,232

19.7

25,285

20.0

1,052

4.4

Parts and farming implements

27,862

22.7

29,559

23.4

1,696

6.1

Agricultural machinery related

21,532

17.5

21,706

17.2

174

0.8

Others

10,632

8.7

9,172

7.2

(1,460)(13.7)

Total

122,673100

126,545

100

3,872

3.2

(3) Overseas(millions of yen)
FY2009(Apr 1, 2008
- Mar 31, 2009）

FY2008(Apr 1, 2007
-Mar 31, 2008)
Product-type

amountratio

amountChangefrom previous period

ratio

%

amount

ratio

%

%

Machinery for soil preparation

16,93376.8

17,668

76.6

734

4.3

Cultivating machinery

2,366

10.7

1,970

8.5

(395)

(16.7)

Harvesting and processing machinery

1,096

5.0

1,329

5.8

232

21.2

Parts and farming implements

1,102

5.0

985

4.3

(116)

(10.6)

Agricultural machinery related

396

1.8

995

4.3

599

151.2

Others

145

0.7

106

0.5

(38)

(26.5)

Total

22,041

100

23,056

100

1,015

4.6

31

5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(millions of yen)
FY2008(as of Mar. 31, 2008)

FY2009(as of Mar. 31, 2009)

Cash and time deposits

1,957

2,191

Notes receivable

7,077

7,904

Accounts receivable

21,12323,801Marketable securities

30

220

14,464

13,895

6

6

Raw materials and supplies

301

235

Advance payments

684

676

Prepaid expenses

240

256

Short-term loans receivable

13,944

10,582Other accounts receivable

1,369

1,803

Others125

81

Allowance for doubtful accounts

(25)

(4)

61,29961,651

Buildings (Net)

4,244

3,988

Structures (Net)

265

233

3,090

2,631

7

6

Tools, furniture and fixtures (Net)

1,571

1,414

Land

25,51525,522

Lease assets (Net)－53

Construction in progress

93

59

34,78733,911

Leasehold rights

85

85

Software270

265

Lease assets－

69

Others

103

23

459

444

6,072

4,440

Aeets
Current Assets:

Finished goods & parts for sales
Goods in progress

Total current assets
Fixed Assets:
Tangible fixed assets

Machinery and equipment (Net)
Auto and trucks (Net)

Total tangible fixed assets
Intangible fixed assets

Total intangible fixed assets
Investments and other assets
Investment securities

32

Shares of affiliated companies

18,502

17,357

Investments

39

95

Investments in affiliated companies

150

278

Long-term loans to employees

110

96

1,799

4,329

0

0

299

205

Others

1,716

1,372

Allowance for doubtful accounts

(260)

(194)

Allowance for loss in investments(1,263)(1,263)27,16926,71862,416

61,073

123,716

122,725

Long-term loans to affiliated companies
Loans under bankruptcy or revitalization proceedings
Long-term prepaid expenses

Total investments and other assets
Total fixed assets
Total Assets

33

(millions of yen)
FY2008(as of Mar. 31, 2008)

FY2009(as of Mar. 31, 2009)

Liabiltise
Current Lliabilities:
Notes payable, trade

14,886

16,860Accounts payable, trade

13,714

14,534

Short-term borrowings

10,100

8,400

－

1,395

6,170

7,516

Lease liabilities－

28

Account payable, other

589

599

Accrued expenses

2,199

1,840

Appropriation of tax

140

62

Advances received

181

140

Deposit received

79

292

Notes payable, equipment

230

239

1

3

48,29451,913

Bonds

2,395

1,000

Long-term debt

16,13012,586

Lease liabilities－

100

Deferred tax liability

702

245

7,595

7,595

Accrued retirement benefits for employees

504

885

Accrued directors’ retirement benefits

246

179

Long-term deposits from employees

857

831

Long-term deposits received

29

26

Total long-term liabilities

28,461

23,45276,75575,36522,78422,784

Legal capital surplus

10,994

10,994

Other capital surplus

2,371

2,371

Total capital surplus

13,366

13,366

Bonds due within one year
Long-term debt due within one year

OthersTotal current liabilities
Long-term Liabilities:

Deferred tax liability from land revaluation gain

Total liabilities
Net Assete
Shareholders’ equity
Common stock
Capital surplus

Retained earnings
Other retained earnings

34

Retained earnings carried forward

(458)

651

Total retained earnings

(458)

651

Treasury stock

(167)

(185)

Total shareholders’ equity

35,52536,616909

215

Net unrealized holding gain on land

10,527

10,527

Total valuation and translation adjustments

11,436

10,742

Total Net Assets

46,96147,359Total Liabilities and Net Assets

123,716

122,725

Valuations and translation adjustments
Net unrealized holding gains on securities

35

(2) Non-consolidated Statements of Income(millions of yen)
FY2008(Apr. 1, 2007Mar. 31, 2008)

FY2009(Apr. 1, 2008Mar. 31, 2009)

Net sales

84,96590,331

Cost of sales

73,067

78,127Gross profit

11,897

12,203

12,353

12,530

(455)

(327)

Interest income

490

502

Dividend income

274

2,172

1,429

1,435

386

407

2,580

4,517

489

558

Interest expenses for bonds

9

10

Sales discounts

97

93

Lease expenses

1,154

1,267

Loss on disposal of obsolete inventories

209

407

Others357

272

Total non-operating expenses

2,318

2,610

Ordinary Income (loss)

(193)

1,579

37

29

1,346

134

Gain on allowance for doubtful accounts

284

43

Reversal of allowance for directors’ retirement benefits

28－

Gain on sale of investments－

39

Others

40

－

1,738

246

Loss on sale and disposal of property, plant and equipment

166

116

Evaluation loss on investment securities

74

83

Evaluation loss on stock of subsidiaries－

229

Evaluation loss on loans

179－

Transfer to allowance for doubtful accounts

92－

Provisions for allowance for loss on investment

309－

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

Lease payments received
OthersTotal non-operating income
Non-operating Expenses
Interest expenses

Extraordinary Gains
Gain on sale and disposal of property, plant and equipment
Gain on sale of investment securities

Total extraordinary gains
Extraordinary Losses

36Special retirement benefits paid

900－

Cost of measures for product recall

180

278

3

56

Total Extraordinary Losses

1,905

764

Income (loss) before income taxes

(360)

1,061

Income taxes

23

23

Reversal of past year corporate and other taxes

－

(72)

Income taxes—deferred

1,046

－

Total Income taxes

1,069

(48)

(1,430)1,110

OthersNet Income (Loss)37

(3) Non-consolidated Statements of Changes in Net Assets(millions of yen)
FY2008FY2009(Apr. 1, 2007-(Apr. 1, 2008-

Mar. 31, 2008)

Mar. 31, 2009)

Shareholders’ equity
Common stock
Balance at the end of previous period

22,78422,784－－22,78422,784

10,994

10,994－－

10,994

10,994

2,371

2,371

－

－

2,371

2,371

13,366

13,366－－

13,366

13,366971(458)

Net income or loss

(1,430)1,110

Total changes in items during the period(1,430)

1,110

(458)

651

971

(458)

(1,430)1,110

Changes in items during the period
Total changes in items during the period
Balance at the end of period
Capital surplus
Legal capital surplus
Balance at the end of previous period
Changes in items during the period
Total changes in items during the period
Balance at the end of period
Other capital surplus
Balance at the end of previous period
Changes in items during the period
Total changes in items during the period
Balance at the end of period
Total Capital surplus
Balance at the end of previous period
Changes in items during the period
Total changes in items during the period
Balance at the end of period
Retained earnings
Other retained earnings
Retained earnings carried forward
Balance at the end of previous period
Changes in items during the period

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

38

Total changes in items during the period(1,430)

1,110

(458)

651

(163)

(167)

Purchase of treasury stock

(4)

(18)

Total changes in items during the period

(4)

(18)

(167)

(185)

36,95935,525(1,430)

1,110

(4)

(18)

(1,434)

1,091

35,52536,616

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 period
Total shareholders’ equity
Balance at the end of previous period
Changes in items during the period
Net income or loss
Purchase of treasury stock
Total changes in items during the period
Balance at the end of period

39

Valuation and translation adjustments
Net unrealized holding gain on securities
Balance at the end of previous period

2,588

909

(1,678)(693)(1,678)

(693)

909

215

10,527

10,527－－

10,527

10,527

13,115

11,436(1,678)(693)(1,678)(693)

11,436

10,74250,07546,961(1,430)

1,110

(4)

(18)

(1,678)(693)

Total changes in items during the period(3,113)

398

Balance at the end of period

46,96147,359Changes in items during the period
Net change in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of period
Net unrealized holding gain on land
Balance at the end of previous period
Changes in items during the period
Total changes in items during the period
Balance at the end of period
Total valuation and translation adjustments
Balance at the end of previous period
Changes in items during the period
Net change in items other thanshareholders’ equity
Total changes in items during the period
Balance at the end of period
Total net assets
Balance at the end of previous period
Changes in items during the period
Net income or loss
Purchase of treasury stock
Net change in items other thanshareholders’ equity40(4) Notes Regarding the Going Concern Assumption
Not applicable

6. Others(1) Change of Directors (As of June 26, 2009)1.

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

Director and Corporate Officer

Corporate Officer

Head of Personnel Division

Head of Personnel Division

Head of Administrative Division
Head of Matsuyama Administrative

Hiroshi Kamada

Head of Administrative Division
Head of Matsuyama Administrative

Division

Division

Head of Compliance Division

Head of Compliance Division41