February 14, 2020
ISEKI & CO., LTD.
Supplementary Information to Consolidated Financial Results(January 1, 2019 – December 31, 2019)
I. Consolidated results of operations for the fiscal year ended December 31, 2019

FY ended
FY ended Year-on-year change
December 31, December 31,
2018
2019
AmountNet sales%(Billions of yen, %)Forecast for
FY ended
December 31,
2019 forecast
announced on
November 13,
2019

Change vs.
forecast

156.0

149.9

(6.1)

(3.9)

155.5

(5.6)

Domestic

122.8

117.7

(5.1)

(4.1)

122.7

(5.0)

Overseas

33.2

32.2

(1.0)

(2.9)

32.8(0.6)

Gross profit

46.0

44.5(1.5)

(3.1)

—

—

Gross profit margin

29.5%

29.7%

0.2%

—

—

—

Selling, general andadministrative expenses

42.8

41.8

(1.0)

—

—

—

Operating income

3.2

2.7(0.5)(13.6)

4.0(1.3)

Operating income ratio

2.0%

1.8%(0.2)%

—

2.6%

(0.8)%

Balance of financialincome

(0.8)

(0.8)

±0.0

—

—

—

Other non-operating
income

0.2

(0.8)

(1.0)

—

—

—

2.6

1.1(1.5)(57.8)

2.6(1.5)

Ordinary income ratio

1.7%

0.7%(1.0)%—

1.7%(1.0)%

Extraordinary income

0.1

0.50.4———Extraordinary losses

(0.5)

(0.3)

0.2

—

—

—

Income before income taxes

2.2

1.3(0.9)(41.6)

—

—

(1.1)

(0.6)

0.5

—

—

—

1.1

0.7

(0.4)

(33.7)

1.6(0.9)

Ordinary income

Income taxes
Profit attributable to ownersof parent1

(Sales breakdown)(Billions of yen)

FY ended
FY ended
December 31, December
201831, 2019

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

Year-on-yearchangeForecast for
FY ended
December 31,
Change vs.
2019 forecast
forecast
announced on
November 13,
2019
56.3
(3.3)
20.5
(0.4)
15.2
(0.2)
5.8
(0.1)

56.6
20.2
14.8
5.6

53.0
20.1
15.0
5.7

(3.6)
(0.1)
0.2
0.1

97.2

93.8

(3.4)

97.8

(4.0)

5.7

4.6

(1.1)

4.9

19.9

19.3

(0.6)

20.0

(0.3)
(0.7)

122.8

117.7

(5.1)

122.7

(5.0)

North America
EuropeChina
ASEANOthers
Product sales total
Spare parts
OthersOverseas sales total

10.8
10.9
1.0
3.9
1.8
28.4
2.6
2.2
33.2

12.7
10.2
0.1
1.7
3.5
28.2
2.4
1.6
32.2

1.9
(0.7)
(0.9)
(2.2)
1.7
(0.2)
(0.2)
(0.6)
(1.0)

13.0
10.7
0.1
1.7
3.4
28.9
2.3
1.6
32.8

(0.3)
(0.5)
0.0
0.0
0.1
(0.7)
0.1
0.0
(0.6)

Total net sales

156.0

149.9

(6.1)

155.5

(5.6)

21) Year-on-year change(1) Net sales: ¥149.9 billion (down ¥6.1 billion (3.9%) year on year)
In Japan, until the third quarter, there was a rush-demand before increase in VAT, but sales ofagricultural machinery, farming implements, etc. decreased from the fourth quarter due topullback in demand after the tax increase.
Sales overseas decreased overall due to sales decreases in Europe, China and ASEAN despite
steady sales in North America and an increase in shipments to South Korea.
i) Sales in Japan: ¥117.7 billion (down ¥5.1 billion (4.1%) year on year)
Overall sales related to agricultural machinery decreased by ¥3.4 billion as sales of agriculturalmachinery such as tractors and combine harvesters decreased due to pullback in demand after the tax
increase, despite strong sales of spare parts and repair fees.
Sales of construction of facilities decreased by ¥1.1 billion due to the absence of the completion of theconstruction of large-scale facilities recorded in the previous year.
ii) Sales overseas: ¥32.2 billion (down ¥1.0 billion (2.9%) year on year)
Sales in North America increased by ¥1.9 billion due to favorable sales of new compact tractors.
Sales in Europe decreased by ¥0.7 billion on a yen basis due to the effect of currency exchange rates
linked to the higher yen, despite strong sales of landscaping products.
Sales in China decreased by ¥0.9 billion mainly due to decreased shipments of semi-finished ricetransplanters accompanying local inventory adjustments.
Sales in ASEAN decreased by ¥2.2 billion due to a decrease in Indonesian government tendering anddecreased shipments of tractors for Thailand.
Sales in other regions increased by ¥1.7 billion mainly due to increased deliveries to South Korea.
(2) Revenue: although gross profit decreased owing to a decline in revenue, the effects werepartially offset by a reduction in selling, general and administrative expenses.
i) Operating income: ¥2.7 billion (down ¥0.5 billion year on year)ii) Ordinary income: ¥1.1 billion (down ¥1.5 billion year on year)iii) Profit: ¥0.7 billion (down ¥0.4 billion year on year)
Operating income was ¥2.7 billion, a decrease of ¥0.5 billion, due to a decrease in gross profit owing
to a decline in revenue, although it was partially offset mainly by an improvement in profitability by
virtue of revenue and cost structure overhaul at domestic dealers and a reduction in selling, generaland administrative expenses.
Ordinary income was ¥1.1 billion, a decrease of ¥1.5 billion mainly due to the disappearance oftechnical support fee recorded in the previous year and appropriation of loss on equity method, inaddition to a decrease in operating income.
Profit was ¥0.7 billion, a decrease of ¥0.4 billion, as a result of partially offsetting of the decrease inprofits mainly by decreased tax expenses as well as the recording of extraordinary income including
reversal of provision incurred from business combination and gain on sales of investment securities.
2) Comparison with the forecast(1) Net sales: ¥5.6 billion lower than the forecast (Japan: ¥5.0 billion lower, overseas: ¥0.6 billionlower)i) Overall sales in Japan were ¥5.0 billion lower than the forecast, as the pullback after the rush-demand
before increase in VAT surpassed projections.
ii) Overall sales overseas did not meet the forecast due to decreased sales in North America and Europe.

3(2) Revenue: a decrease in gross profit due to the failure to reach the sales forecast was partially
offset by a reduction in selling, general and administrative expenses.
i) Operating income: ¥2.7 billion (¥1.3 billion lower than the forecast)ii) Ordinary income: ¥1.1 billion (¥1.5 billion lower than the forecast)iii) Profit: ¥0.7 billion (¥0.9 billion lower than the forecast)
Operating income was ¥2.7 billion, ¥1.3 billion lower than the forecast, as a result of a decrease ingross profit due to the failure to reach the sales forecast, although it was partially offset by a reduction
in selling, general and administrative expenses.
Ordinary income was ¥1.1 billion, ¥1.5 billion lower than the forecast, due to appropriation of loss onequity method, in addition to the failure to reach the operating income forecast.
Profit was ¥0.7 billion, ¥0.9 billion lower than the forecast, as a result of partially offsetting theamount falling below the forecast described above by a decrease in tax expenses.
3) Dividends: We plan to pay year-end dividends in the amount of ¥30.0 per share.

4II. Consolidated financial results forecast for the fiscal year ending December 31, 2020
[Consolidated financial results forecast for the fiscal year ending December 31, 2020](January 1, 2020 – December 31, 2020)(Billions of yen, %)FY ended
December 31,
2018

FY ended
December 31,
2019

Forecast for FY
endingDecember 31,2020

Net sales
156.0
149.9
156.0
Domestic
122.8
117.7
120.3
Overseas
33.2
32.2
35.7
Operating income
3.2
2.7
3.6
Operating income ratio
2.0%
1.8%
2.3%
Ordinary income
2.6
1.1
2.8
Ordinary income ratio
1.7%
0.7%
1.8%Profit attributable to
1.1
0.7
1.7
owners of parent* The assumed foreign exchange rates for the fiscal year: ¥105 per U.S. dollar¥118 per euroYear-on-year change
Amount
6.1
2.6
3.5
0.9
0.5%
1.7
1.1%

%
4.1
2.2
10.9
31.1
—
152.5
—

1.0

135.1

[Rationale for the financial results forecast]1) Net sales(1) Sales in Japan: ¥120.3 billion (up ¥2.6 billion year on year)
Overall sales in Japan are expected to increase by ¥2.6 billion year on year, due to continued
strong sales of farming implements, spare parts and repair fees, and increased revenue fromorders for construction of facilities, while demand is projected to be bearish and flat for
agricultural machinery due to the uncertain demand environment following the increase in VAT.
(2) Sales overseas: ¥35.7 billion (up ¥3.5 billion year on year)
Overall sales overseas are expected to increase by ¥3.5 billion year on year as higher revenue isprojected owing to continued strong sales in North America and a recovery in ASEAN.
2) Revenue(1) Operating income: ¥3.6 billion (up ¥0.9 billion year on year)
Operating income is expected to increase by ¥0.9 billion year on year to ¥3.6 billion due to anincrease in gross profit as a result of increased revenue, as well as further improvements in therevenue and cost structure at domestic dealers, improved profitability in products for overseas
markets, and other factors, which will offset an increase in retirement benefit expenses upon themerger of dealers.
(2) Ordinary income: ¥2.8 billion (up ¥1.7 billion year on year)
Ordinary income is expected to increase by ¥1.7 billion to ¥2.8 billion due to a decrease in shareof loss of entities accounted for using equity method.
[Year-end dividend forecast for the fiscal year ending December 31, 2020]
We plan to pay year-end dividends in the amount of ¥30.0 per share for the fiscal year ending December
31, 2020.
*As it is difficult at this time to project how the spread of novel coronavirus (COVID-19) will affect financial
results, it has not been reflected in these forecasts. Any revisions to the forecasts will be promptly disclosed.

* Explanation on the proper use of financial results forecasts
The financial results forecasts and other forward-looking statements contained in this report are basedon information available to the Company on the date of this report’s release and certain preconditions
that the Company deems to be reasonable. Actual results etc. may differ significantly from theforecasts, however, as a result of various factors.

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