November 12, 2009
Stock Exchange Listing Tokyo, Osaka
Name of listed company: ISEKI & CO., LTD.
6310
Company Code:(URL http://www.iseki.co.jp) Head Office:Tokyo
Representative: Title President
Name Seiichiro Gamo
Enquiries:
Title General Manager of FinanceName Hiroshi Yunoki
Telephone: +81 3 5604 7671
Date of Submission of Quarterly Report
November 12, 2009
Scheduled Date to Commence Dividend Payment-Summary Announcement of Consolidated Financial Results
for the Six Months Ended September 30, 2009
I. Financial Results for the Six Months Ended September 30, 2009 (April 1, 2009  September 30, 2009)
A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Six Months Ended

Six Months Ended

September 30, 2009
Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted

69,726
2,528
2,197
1,597
7.06

%

September 30, 2008

(9.5)
108.2
95.1
131.3

%

77,007
1,214
1,126
690
3.06

6.95

-

3.00

B. Financial Position(Rounded down to millions of yen)

September 30, 2009
Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio
Net Assets per ShareMarch 31, 2009

175,290
54,68930.3%¥231.43

171,00251,69429.4%¥222.44

Notes: Shareholders’ equity:
Second Quarter of FY Mar. 2010 ¥53,191 mil. Year ended March 31, 2009 ¥50,214mil.
II. Dividends

Dividend per share (Yen)(Recorded date)
FY ended March 2009
FY ending March 2010

End of 1Q-End of 2Q-

FY ending March 2010 (forecast)End of 3Q-Year-end
0.00

Annual
0.00

-0.00

0.00

(Note) Revision of dividend forecast during the second quarter of FY ending March 2010: None1III. Forecast for the Fiscal Year Ending March 31, 2010 (April 1, 2009  March 31, 2010)(% represents comparison with previous year for the full year performance)
Net sales
Million yen

Annual

150,000

Operating income%

0.3

Million yen
3,300

Ordinary income%Million yen
2,100

109.2

Net income pershare

Net income%

Million yen

172.1

1,100%-Yen
4.79(Note) Revision of performance forecast during the second quarter of FY ending March 2010: Yes
IV. Others
A. Change in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None.
B. Adoption of simplified method in accounting method and unique accounting method for Consolidated Quarterly
Financial statements: Yes(Note) For details, please refer to p4 [Qualitative Information. ▪ Financial Statements, etc] 4. Others.
C. 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 of Consolidated Quarterly Financial Statements”)
1) Change which accompanies revision of accounting standards: Yes
2) Change other than No.1.
：None(Note) For details, please refer to p4 [Qualitative Information ▪ Financial Statements, etc] 4. Others.
D. Outstanding shares (Common shares)
1) Outstanding shares (Including treasury shares)
As of September 30, 2009 229,849,936 shares As of March 31, 2009
226,536,329 shares
2) Outstanding treasury shares
As of September 30, 2009
14,395 shares As of March 31, 2009
790,839 shares
3) Average number of shares during the period (Quarterly consolidated cumulative period)
As of September 30, 2009
226,436,219 shares As of September 30, 2008
225,805,595 shares* Statement regarding proper use of financial performance forecasts and other notes.
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 anticipated figures for a variety of reasons. Please refer to page3[Qualitative Information ▪Financial Statements, etc], [3. Qualitative information regarding performance forecast]/[Qualitative Information ▪ Financial Statements, etc]

1. Qualitative information concerning the status of consolidated financial results
During the second quarter consolidated cumulative period under review, the Japanese economy remained indifficult situation with aggravating employment conditions and declining capital investment, in spite of somemovements towards recovery, brought by the ending of the circle of inventory adjustment, as well as the effects ofeconomic measures. The overseas economy continued to be in a serious situation with partial movements towards
the fall ceasing by policy effects in North America and Europe, while Asia is recovering, centering on China.
In the domestic agricultural machinery market, while there was some sign of recovery by the partial
implementation of supportive measures for agriculture by the agricultural policy, there were the effects of restrained2

purchasing by customers waiting to see, due to delayed implementation of an urgent machinery-leasing support
program, etc. In the overseas market, the difficult situation of expanding sales continues, due to the effects of theglobal recession. Under these circumstances, the ISEKI Group has made efforts to prepare a line-up of new
products to meet the diversifying needs of customers, aggressively promoting sales activities.
In the second quarter consolidated cumulative period, sales decreased ¥7.280 billion from the same period of
the previous year, to ¥69.726 billion (down 9.5%). Domestic sales decreased ¥2.786 billion to ¥61.766 billion(down 4.3%). Overseas sales decreased ¥4.494 billion to ¥7.960 billion (down 36.1%), due to a reduction in orders
received, because of the effects of the worldwide recession, in spite of sales growth in China. Operating income
increased ¥1.313 billion from the same period of the previous year, to ¥2.528 billion, compensating for reduced
gross income by reduced revenue with reduced evaluation loss, which had been aggravating items in the previousquarter and cost reduction of fixed costs, etc. Ordinary income increased ¥1.071 billion to ¥2.197 billion. Quarterly
net income increased ¥0.906 billion to ¥1.597 billion.

2. Qualitative information concerning the shifts in consolidated financial position
As of the end of the second quarter consolidated cumulative period, total assets increased ¥4.287 billion fromthe previous fiscal year end to ¥175.290 billion. The main items of assets were a ¥4.543 billion increase in cash andcash equivalents.
Total liabilities increased ¥1.293 billion from the previous fiscal year end, mainly due to a decrease in notes
and accounts payable of ¥3.975 billion, and an increase in interest-bearing liabilities of ¥5.519 billion. Net assets
increased ¥2.994 billion from the previous fiscal year end to ¥54,689 billion. As a result, the equity ratio was30.3%.
Cash and cash equivalents, as of the end of the second quarter consolidated cumulative period, increased¥4.384 billion from the end of the previous fiscal year, to ¥9.994 billion.
(Cash flow from operating activities)
Cash flow from operating activities in the second quarter under review resulted in a net expenditure of ¥0.774billion (net expenditure increased ¥4.378 billon from the same period of the previous year), mainly due to net
income before income taxes and minority interest of ¥2.094 billion, an increase in inventory assets of ¥1.358 billion,
and a decrease in accounts payable of ¥3.975 billion.
(Cash flow from investment activities)
Cash flow from investment activities in the second quarter under review resulted in a net expenditure of¥1.938 billion (net expenditure increased ¥0.343 billion from the same period of previous year) mainly due to capital
investment expenditure of ¥2.058 billion.
(Cash flow from financial activities)
Cash flow from financial activities in the second quarter under review resulted in a net revenue of ¥7.056
billion (increased revenue of ¥8.283 billion from the same period of previous year), mainly due to decrease andincrease of interest-bearing liabilities.

3. Qualitative information regarding performance forecast
With respect to the consolidated business performance forecast for the current fiscal year under review, theforecast for the net sales has been revised from ¥154.0 billion to ¥150.0 billion (up 0.3% from the previous period)3due to an expected decline in overseas sales by the effect of the stronger yen, while a partial recovery in domestic
sales is anticipated. With respect to the forecast for each income, mainly due to the effects of declined overseas sales
by the stronger yen, revisions have been made to operating income, to ¥3.3 billion (up 109.2% from the previousperiod), ordinary income to ¥2.1 billion (up 172.1%) and net income to ¥1.1 billion. Along with the revision,
non-consolidated business performance has been revised as well.
Please refer to the “Notice of Revision on Business Performance Forecast” for details concerning theforecast.
Company forex rate for the third quarter and the fourth quarter as premises of the business performance is1US$=¥90 and 1Euro=¥130.
4. Others(1) Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None.
(2) Adoption of simplified method in accounting method and unique accounting method for Quarterly FinancialStatements
1) Calculation method of income taxes, deferred tax assets and deferred tax liabilities
Concerning calculation of payable tax of income taxes, we employ a method to limit add-subtract items and tax
exemption items to important ones. With respect to evaluation of collectability of deferred tax assets, we rely on amethod to use business performance forecast or tax planning used in the previous consolidated fiscal year in case no
significant change is recognized in the managerial environment or situation to generate differences.
(3) Changes in principle, procedure and method of statement of accounting procedures in preparation ofConsolidated Quarterly Financial Statements.
1) Adoption of Accounting Standard for Construction Contracts
Starting from the current consolidated quarterly accounting period, we have applied the “Accounting Standard forConstruction Contracts” (ASBJ Statement No.15, issued on December 27, 2007) and “Implementation Guidance ofAccounting Standard for Construction Contracts”(ASBJ Implementation Guidance of Corporate AccountingStandards No.18, issued on December 27, 2007).
There is no impact of the application on the profit and loss.

45. Consolidated Quarterly Financial Statements(1)

Consolidated Quarterly Balance Sheets(millions of yen)
FY2010(as at Sep. 30, 2009)

FY2009(as at Mar. 31, 2009)

10,251

5,708

29,00328,734111

280

Merchandise and products

38,58837,944Work in progress

3,248

2,696

Raw materials and stocks

1,497

1,336

Others

2,371

3,991

Allowance for doubtful accounts

(104)

(79)

84,96980,611

Buildings and structures(net)15,206

15,638Land

50,47650,463

Others(net)14,46013,88780,143

79,988844

842

Investment securities

4,662

4,647

Others

5,149

5,385

Allowance for doubtful accounts

(478)

(473)

9,333

9,559

90,321

90,390175,290

171,002

AssetsCurrent Assets
Cash and time deposits
Notes and accounts receivable
Marketable securities

Total current assets
Fixed Assets
Tangible fixed assets

Total tangible fixed assets
Intangible fixed assets
Investments and other assets

Total investment and other assets
Total fixed assets
Total Assets5(millions of yen)
FY2010(as at Sep. 30, 2009)

FY2009(as at Mar. 31, 2009)

Notes and accounts payable

39,82643,801

Short-term borrowings

20,997

20,980Bonds(due within one year)

1,090

1,485

Long-term debt(due within one year)

13,55910,395

Accrued income taxes

620

715

Allowance for bonus

831

429

6,391

7,685

83,31785,49340

1,060

Long-term debt

20,501

16,748Deferred tax liability from land revaluation

7,595

7,595

5,041

4,829

164

380

3,941

3,201

37,28433,814

120,601

119,308

Common stock23,344

22,784

Capital surplus

13,454

12,815Retained earnings

5,669

4,072

Treasury stock

(4)

(185)

42,464

39,486194

212

10,527

10,5275(11)

10,726

10,728

1,497

1,479

Total Net Assets

54,68951,694

Total Liabilities and Net Assets

175,290

171,002

Liabilities
Current Liabilities

OthersTotal current liabilities
Long - term Liabilities
Bonds

gain
Accrued retirement benefits for employees
Accrued directors' retirement benefits
OthersTotal long-term liabilities
Total liabilities
Net Assets
Shareholders' equity

Total shareholders’ equity
Difference of appreciation and conversion
Net unrealized holding gain on securities
Land revaluation reserve
Foreign currency translation adjustments
Total difference of appreciation andconversion
Minority interests in Consolidated Subsidiaries

6(2) Consolidated Quarterly Statements of Income(Second Quarter Consolidated Cumulative Period)(millions of yen)
FY2009FY2010(Apr.1,2008-Sep.30,(Apr.1,2009-Sep.30,2008)2009)

Net sales

77,00769,726

Cost of sales

53,63046,19423,37623,532

22,16221,004

1,214

2,528

Interest received

10878Dividend received

8776

Forex gains

103-

Others

510

326

809

480

Interest expenses

620

522

Others

277

289

897

811

1,126

2,197

Gain on sale and disposal of property, plant and equipment

3137

Gain on sale of investment securities

133-

164

37

Loss on sale and disposal of property, plant and equipment

98

73

Reversal of past year allowance for directors’ retirement benefit

144-

Cost of measures for product recall-

43

Others

21

23

264

139

1,026

2,094

Income taxes

540

524

Reversal of past year corporate and other taxes

(199)

(37)

Total Income taxes, deferred tax

340487

Minority interests in consolidated subsidiaries

(4)

9690

1,597

Gross Profit
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

Total Extraordinary Gains
Extraordinary Losses

Total Extraordinary Losses
Income before income taxes and minority interests

Net Gain or Loss7

(3) Consolidated Quarterly Statements of Cash Flows

Cash Flows from Operating Activities
Income before income taxes and minority interests
Depreciation and amortizationIncrease in reserve for retirement benefits
Loss (gain) on sales of investment securities
Interest and dividend income
Interest expenses
Effect of foreign exchange rate changes
Loss (gain)on sales of tangible and intangible fixed assets
Decrease(increase) in notes and accounts receivable
Decrease(increase) in inventories
Increase(decrease) in notes and accounts payable
OthersSubtotalInterest and dividends received
Interest paid
Income taxes paid
Refunded income taxes
Net cash provided by (used in) operating activities
Cash Flows from Investing Activities
Payment for purchase of investment securities
Proceeds from sale of investment securities
Payments for purchase of tangible and intangible fixed assets
Proceeds from sale of tangible and intangible fixed assets
Payments for purchase of investment securities
Proceeds from sale of investment securities
Net decrease (increase) in time deposits
OthersNet cash used in (provided by) investing activities
Cash Flows from Financing Activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term debt
Repayments of long-term debt
Redemption of bonds
Proceeds from sale and lease backRepayments of lease obligations
Payments for purchases of treasury stock
OthersNet cash used in financing activities
Effect of Exchange rate Changes on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at beginning of fiscal year
Cash and Cash Equivalents at end of quarterly period

8FY2009

FY2010(Apr.1,2008-Sep.30,(Apr.1,2009-Sep.30,2008)

2009)

1,026
2,184
299
(133)
(196)
620
1166
(5,567)
3,994
992
1,009
4,308
194
(629)
(386)
116

2,094
2,451
212
(154)
522
(17)
36(269)(1,358)(3,975)
243
(213)
158
(509)
(633)
424

3,604

(774)

(122)
51
(2,155)
186
(0)
483
(178)
139
(1,594)(19)
149(2,058)
182
(0)
(158)
(32)
(1,938)(2,329)6,390(5,186)
(80)
(12)
(9)

(2)
12,210(5,292)
(20)
442
(256)
(14)
(9)

(1,227)
(15)
766
5,687
6,454

7,056
41
4,384
5,609
9,994

(4) Note on going concern premises
There is no corresponding item.
(5) Note in case there is a substantial change in the amount of shareholders’ equity
Second quarter consolidated cumulative period under review (April 1, 2009 – September 30, 2009)(million of yen)

Commonstock
Balance at the end ofprevious fiscal year
Changes in items during theperiod
New share issuance
Quarterly net income
Purchase of treasury stock
Sale of treasury stock
Total changes in items
during the period
Balance at the end of theperiod

CapitalsurplusRetainedearnings

22,784

12,815

559

559

4,072

Treasurystock(185)

39,486

(14)
196

1,119
1,597
(14)
275

1,597
78

Total
shareholders’equity559

638

1,597

181

2,977

23,34413,454

5,669

(4)

42,464The changes are due to exercise of stock acquisition rights for convertible bonds during the second quarter
consolidated cumulative period under review.

9