2020 Mid-term Management Plan
(2018-2020)

ISEKI & CO., LTD.
Eiichiro Kinoshita, President
February 15, 2018

Table of Contents

1. Corporate Philosophy and Mid-term Vision
2. Positioning of the 2020 Mid-term Management Plan
3. Current Status and Management Issues
4. 2020 Mid-term Management Plan: Basic Strategies
5. 2020 Mid-term Management Plan: Numerical Targets

2020 Mid-term Management Plan

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1. Corporate Philosophy and Mid-Term VisionCorporate Philosophy

We are contributing to agriculture both in Japanand throughout the world by...
“Delivering the products that satisfy customers”
Mid-term Vision

2025 marks 100th anniversary of ISEKI GroupTo establish a firm position both in domestic andworld market

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2. Positioning of the 2020 Mid-Term Management Plan

Revision of the current Mid-term Management Plan (2016-2020)

To ensure the process of attaining our target, wereviewed our strategies for the remaining 3 years
in light of changes in the business environment
Current Mid-term Management Plan
2016-2020
Revisionofstrategies

2025 marks
Iseki’s 100thanniversary

2020 Mid-term ManagementPlan (2018-2020)

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3. Current Status and Management Issues
Results for the past 3 years(JPY bn, %)FY ended
Dec. 2015

FY ended
Dec. 2016

FY ended
Dec. 2017

Restated figures*

ActualActual

156.8

153.1

158.4

Domestic

125.4

121.0

123.1

Overseas

31.4

32.1

35.3

Operating income

0.2

2.5

4.0

Ordinary income

0.4

1.6

4.2

0.9

2.8

Net sales

Profit attributable to ownersof parent

Exchangerate

US$

119.9

108.6

112.1

Euro

134.9

120.1

126.8

* Due to a change of fiscal period, figures for the fiscal year ended December 2015 are adjusted to that for a 12-month period.

2020 Mid-term Management Plan53. Current Status and Management Issues» North America: Large agricultural machinery market sluggish, compactmachinery(economy) markets firm
» Europe: Compact machinery market firm. Increase in demand forenvironmental and hi-tech products» ASEAN: Better agricultural productivity, increase in demand spurred byincreased food production» China: Some markets stalling due to subsidy cutbacks, but policies to raise
agricultural productivity continue and demand remains firm2020 Mid-term Management Plan

Fostering and securing talent, and corporate governanceOverseas

Continuing growth in demand, clear downward
pressure on prices

Investment for growth» Shift to field crop and vegetable farming

Profitability and optimized development and production» Consolidation into principal farmers(Scale increases, downward trend in prices, use of hi-tech equipment)

Domestic market
changeStructural changes in agricultural sector moving
faster than expectedManagement issues

Broadening overseas
business domains

Japan

Market environment6

4. 2020 Mid-term Management Plan: Basic Strategies
Keyword: Henkaku (Change)「」
Ensuring management transparency
Commitment to earnings
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4. 2020 Mid-Term Management Plan: Basic Strategies
5 basic strategies:

1 Strengthen responsiveness to drastic changes in agriculture in Japan
2 Expand overseas businesses
3 Strengthen profitability by optimizing development & production
4 Make active capital investment for growth
5 Enhance corporate value by reinforcing personnel & corporate governance2020 Mid-term Management Plan8

4. 2020 Mid-term Management Plan: Basic Strategies

1 Strengthen responsiveness to drastic changes in agriculture in Japan» “Block strategy”: Develop sales and services into wider area
Amid decline in farming population and increases in the number of large-scale farming,
shift to a wide-area sales and service with large-scale maintenance centers at the core

» Strengthen proposal and follow-up support
Personnel training tailored to market needs» Overhaul revenue and cost structure
Business strategies to adapt to market change
Expand sales, boost gross profit margin and cut operating expenses» Strengthen product development
Low prices, hi-tech, and vegetable-cultivation machinery2020 Mid-term Management Plan9

4. 2020 Mid-term Management Plan: Basic Strategies

2 Expand overseas businesses» Expand business through enhanced cooperation with strategic partners
AGCO(North America,global expansion)

Dongfeng Iseki(China, ASEAN)

Mitsubishi Corp.
(Thailand andneighboringcountries)

PT RUTAN(Indonesia)» Develop and launch products that match market needs
Also encourage local product development and procurement at overseas subsidiaries» Build up and expand spare parts and after-sales businesses
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4. 2020 Mid-term Management Plan: Basic Strategies

3 Strengthen profitability by optimizing development and production
Strengthen responsiveness to drastic changes in agriculture in Japan andexpanding overseas businesses» Improve profitability of products for overseas market
Led and driven by Global Strategic Products Project Management Department» “Good practice manufacturing” productivity reform through efficiency driveStandardize and share designs, reduce number of models
Step up front-line and indirect operational improvement measures» Improve profitability and strengthen marketing capability of China business (Dongfeng Iseki)
Promote performance transparency through enhanced cooperation with Dongfeng Iseki» Further boost profitability of Indonesia business» Create systems for increased production at overseas manufacturing sites» Step up ability to respond to changes in production load
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4. 2020 Mid-term Management Plan: Basic Strategies

4 Make active capital investment for growth¥35.2 billion(JPY bn)» Major investments (over 3 years)
Equipping large sales offices of domestic
sales companies：¥8.2 billion

Production facilities (to produce newmodels/ to increase productivity)：¥15.9 billion

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4. 2020 Mid-term Management Plan: Basic Strategies

5 Enhance corporate value by reinforcing personnel and corporate governanceAchieve sustainable growth» Create human capital (personnel training)
Development
ISEKI BasicEngineering
Design Training
CenterTrain young
designers

Production
ISEKI TechnicalTraining Center

Train leaders for domestic andoverseas production

Sales & Services
ISEKI Global
Training Center

Develop domestic and overseas
sales and services» Overhaul work approaches and involve women more (create comfortable workplaces)
In a group-wide initiative, streamline operations and create women-friendly workplaces

2020 Mid-term Management Plan13

4. 2020 Mid-term Management Plan: Basic Strategies

5 Enhance corporate value by reinforcing personnel and corporate governance» Strengthen compliance with laws and regulations
Enhance compliance, including at overseas subsidiaries
Comply with Anti-Monopoly Act
Appropriately manage and handle personal information» Corporate governanceStep up measures to reinvigorate the Board of Directors
Reduce risks through strict risk management
Ensure appropriate information dissemination following fair disclosure rules
Hold briefings for individual investors» Strengthen CSR initiatives
Promote and strengthen activities to meet public expectations
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5. 2020 Mid-term Management Plan: Numerical Targets

FY ended Dec. 2017
ActualExpansion ofbusiness domains

Improved
profitability
Shareholder
returns

Net sales(consolidated)

FY ending Dec. 2020Targets¥158.4 bn ⇒ ¥190.0 bn

Total overseas
net sales ratio*
Operating income(consolidated)

24%⇒¥4.0 bn ⇒40%¥9.0 bnROE

4.2%⇒ 8.0% or more

Dividend per share¥30⇒¥50* Total overseas net sales ratio: Overseas sales ratio including equity method affiliates2020 Mid-term Management Plan

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5. 2020 Mid-term Management Plan: Numerical Targets
Net sales (consolidated) by overseas region (reference)¥14.0 bn

¥3.8 bn¥5.5 bn¥15.0 bn

¥10.7 bn¥12.0 bn¥9.1 bn

Dec. 2017 Dec. 2020

China

¥4.8 bn¥6.9 bn

Dec. 2017 Dec. 2020

¥8.5 bn

EuropeDec. 2017 Dec. 2020

North America

Dec. 2017 Dec. 2020

ASEAN
Dec. 2017 Dec. 2020

Other

Other: Oceania, other Asia (South Korea, Taiwan), overseas spare parts
business, etc.

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Notes on the Future Forecast

・The objective of this presentation document is to provide information, and it is not intended toinvite any action.
・The document has been prepared by ISEKI based on currently available information and it
involves potential risks and uncertainties. The forecast may not be consistent with actual results
depending on fluctuation of the economic situation and market trends.
・In using this information, investors are expected to depend on their own judgment. ISEKI is notliable for any losses incurred by investment decision made utilizing the business forecast or
targets given in this document.

ISEKI
group is a promotional
partnerof FOOD
ACTION
井関グループはFOOD ACTIONNIPPONの推進パートナーです。
NIPPON.

ISEKI Group supports the initiatives of the nationwide action“COOL CHOICE” by the Ministry of the Environment,
encouraging “smart choices” that contribute to global warming
countermeasures. As our “smart choice” suggestion, we promote
the development and proliferation of “eco products” and otherenvironment-friendly products.

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