May 14, 2018
ISEKI & CO., LTD.
Supplementary Information to Consolidated Financial Results(January 1, 2018 – March 31, 2018)
I. Consolidated results of operations for the three months ended March 31, 2018

(Billions of yen, %)1Q of
FY ending Difference
December(target31, 2018/actual)
Target

1Q of
FY ended
December 31,
2017

1Q of
FY ending
December 31,
2018

36.7

36.8

0.1

0.4

41.8

(5.0)

Domestic

28.5

28.4

(0.1)

(0.4)

30.7

(2.3)

Overseas

8.2

8.4

0.2

3.4

11.1

(2.7)

Gross profit

10.1

9.9

(0.2)

(1.5)

10.6

(0.7)

Gross profit margin

27.5%

27.0%

(0.5)%

—

25.4%

1.6%

Selling, general andadministrative expenses

10.4

10.5

0.1

1.7

10.9

(0.4)

Operating income

(0.3)

(0.6)

(0.3)

—

(0.3)

(0.3)

Balance of financial
income

(0.2)

(0.2)

0.0

—

(0.2)

0.0

Other non-operating
income

0.1

(0.1)

(0.2)

—

0.0

(0.1)

(0.4)

(0.9)

(0.5)

—

(0.5)

(0.4)

Extraordinary income

0.00.00.0—

0.00.0Extraordinary losses

0.00.00.0

—

(0.1)

0.1

Income before income taxes

(0.4)

(0.9)

(0.5)

—(0.6)

(0.3)

(0.2)

0.6

0.8

—

0.4

0.2(0.6)

(0.3)

0.3

—

(0.2)

(0.1)

Net sales

Ordinary income

Income taxes
Profit attributable to ownersof parent1Year-on-year change
Amount%(Sales breakdown)
1Q of
FY ended
December 31,
2017
Agricultural machinery
Farming implements
Spare parts
Repair fees
Totals agricultural
machinery related
Construction of facilities
OthersDomestic sales total

1Q ofFY ending
December 31,
2018

Year-on-yearchange(Billions of yen)
1Q of FY
endingDifference(targetDecember/actual)
31, 2018
Target13.3(1.1)
5.1(0.2)
2.8(0.1)
1.1(0.1)

12.5
4.7
2.7
1.0

12.2
4.9
2.7
1.0(0.3)
0.2
0.0
0.0

20.9

20.8

(0.1)

22.3

(1.5)

2.8
4.8
28.5

2.7
4.9
28.4

(0.1)
0.1(0.1)

3.3
5.1
30.7

(0.6)
(0.2)
(2.3)

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

1.0
1.9
1.7
1.3
1.3
7.2
0.6
0.4
8.22.5
2.5
0.7
1.0
0.9
7.6
0.6
0.2
8.4

1.5
0.6
(1.0)
(0.3)
(0.4)
0.4
0.0(0.2)
0.2

3.9
3.7
0.7
0.9
1.0
10.2
0.5
0.4
11.1

(1.4)
(1.2)
0.0
0.1
(0.1)
(2.6)
0.1
(0.2)
(2.7)

Total net sales

36.7

36.8

0.1

41.8

(5.0)

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[Overview of financial results for the three months ended March 31, 2018 (January through March)]
1) Comparison with the same period of the previous fiscal year
(1) Net sales: ¥36.8 billion (up ¥0.1 billion (0.4%) year on year) : sales remained almost unchanged fromthe previous fiscal year both in Japan and overseas.
 Sales in Japan: ¥28.4 billion (down ¥0.1 billion (0.4%) year on year)
Overall sales related to agricultural machinery slightly decreased year on year due to bad weather, in spiteof increased sales of rice transplanters thanks to the launch of new products and ongoing favorable sales offarming implements.
 Sales overseas: ¥8.4 billion (up ¥0.2 billion (3.4%) year on year)
Sales in North America increased by ¥1.5 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 increased by ¥0.6 billion due to the effects of the launch of new products.
Sales in China decreased by ¥1.0 billion due mainly to decreased shipments of semi-finished ricetransplanters stemming from local inventory adjustment.
Sales in ASEAN decreased by ¥0.3 billion due mainly to decreased shipments of combine harvesters forIndonesia.
(2) Revenue: recorded losses in all income items from operating income and below, due to the off-demandseason during the first quarter (January through March) and worsening performance year on year
partly due to temporary factors such as the unprofitable construction of facilities.
 Operating income: ¥(0.6) billion (down ¥0.3 billion (-) year on year) Ordinary income: ¥(0.9) billion (down ¥0.5 billion (-) year on year) Income before income taxes: ¥(0.3) billion (up ¥0.3 billion (-) year on year)
Operating income decreased by ¥0.3 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 increased personnel expenses.
Ordinary income decreased by ¥0.5 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.
Profit increased by ¥0.3 billion due to decreased tax expenses resulting from the application of theconsolidated taxation system effective from the fiscal year ending December 31, 2018.
2) Comparison with the target(1) Net sales: ¥5.0 billion lower than the target (Japan: ¥(2.3) billion, overseas: ¥(2.7) billion)
Overall sales in Japan were ¥2.3 billion lower than the target, as a result of overall agricultural machinerysales that were ¥1.5 billion lower than the target, and construction of facilities sales that were ¥0.6 billion
lower than the target.
Overall sales overseas were ¥2.7 billion lower than the target, as a result of sales in the North America thatwere ¥1.4 billion lower than the target partly because of inventory adjustment in an OEM partner, and salesin Europe that were ¥1.2 billion lower than the target mainy due to deferred sales of the off-demand season
in a French subsidiary.
(2) Revenue Operating income: ¥0.3 bilion lower than the target
 Ordinary income: ¥0.4 billion lower than the target
 Profit: ¥0.1 billion lower than the target
Operating income was ¥0.3 billion lower than the target, as a result of an earlier improvement in profitability
in the Indonesian business and a reduction in selling, general, and administrative expenses and otherexpenses, despite the decrease in gross profit due to the failure to reach the sales target.

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Ordinary income was ¥0.4 billion lower than the target mainly due to a worsening in foreign exchange gains
or losses and in the share of profit or loss of entities using equity method.

4II. Consolidated financial results forecast for the fiscal year ending December 31, 2018
Demand remained weakened in the three months ended March 31, 2018 partly due to the effect of bad weather,in addition to the off-demand season. However, sales in Japan for agricultural machinery and other products
currently show signs of recovery upon entry to the on-demand season. Accordingly, we have not revised theconsolidated financial results forecast for the first half ending June 30, 2018 and the fiscal year ending
December 31, 2018 announced on February 13, 2018.
[Consolidated financial results forecast for the first half ending June 30, 2018](January 1, 2018 through June 30, 2018)(Billions of yen, %)2Q of
2Q ofFY ending
Year-on-year change
FY ended
December 31,December 31,2018
2017
Amount%Forecast
Net sales

80.2

86.0

5.8

7.3

Operating income

2.82.0(0.8)(29.6)

Ordinary income
Profit attributable toowners of parent

3.4

1.8(1.6)(46.7)

2.2

1.6(0.6)(27.1)[Consolidated financial results forecast for the fiscal year ending December 31, 2018](January 1, 2018 through December 31, 2018)(Billions of yen, %)FY ended
December 31,
2017

FY ending
December 31,
2018
Forecast

Year-on-year change

158.4

164.5

Amount6.1%
3.9

Operating income

4.0

4.5

0.5

13.8

Ordinary income
Profit attributable toowners of parent

4.2

4.3

0.1

1.2

2.8

3.2

0.4

14.0Net sales

Note: With respect to foreign exchange rate, the rate assumption used is ¥110 per U.S. dollar (continued) and¥130 per euro (continued).
* Explanation on the proper use of financial results forecasts
The financial results forecasts and other forward-looking statements contained in this report are based on
information available to the Company on the date of this report’s release and certain preconditions that theCompany deems to be reasonable. Actual results, etc. may significantly differ from the forecasts, however, as aresult of various factors.

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