May 12, 2011
Name of Listed Company ISEKI & CO., LTD.
6310
Company Code:(URL http://www.iseki.co.jp)
Representative: Title President
Title General Manager of Corporate
Enquiries:
Planning Depertment
Date of the Regular Meeting of Shareholders:Date of Submission of the Securities Report:
Supplementary Explanatory Material:
Information Meeting:Stock Exchange Listing Tokyo
Name Seiichiro Gamo
Name Shunichi Suzuki
Telephone: +81 3 5604 7709
June 28, 2011
June 29, 2011
Prepared
Scheduled (for institutional investors
and analysts)

Summary Announcement of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2011 (Japanese GAAP)
I. Financial Results for the Fiscal Year Ended March 31, 2011 (April 1, 2010－March 31, 2011)
A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Year Ended

Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per ShareNon-diluted
Fully Diluted

Year Ended

March 31, 2011%

147,826
2,803
2,006
(918)

(1.0)
(37.9)(45.2)-March 31, 2010
149,314
4,515
3,657
2,347

%
(0.2)
186.2
373.9
-

(yen)
(4.00)
-

10.29
10.21

Return on Equity

(%)

(1.7)

4.5

Return on Total Assets

(%)

1.2

2.1

Operating Income to Net Sales (%)

1.9

3.0

Note: Comprehensive income
Year ended March 31, 2011 ¥(979) mil. (- %)Year ended March 31, 2010

¥2,541 mil. (- %)Reference: Investment gain (loss) by equity method
Year ended March 31, 2011-

Year ended March 31, 2010

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, 2011

March 31, 2010

169,168
54,61731.4
231.13

171,044
55,60431.6
235.46

Reference: Shareholders’ equity
Year ended March 31, 2011 ¥53,108 mil.

Year ended March 31, 2010 ¥54,109 mil.

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

Year EndedYear Ended

March 31, 2011

March 31, 2010

Net Cash Provided by (used in) Operating Activities

7,060

7,326

Net Cash Provided by (used in) Investment Activities(5,674)(4,320)Net Cash Provided by (used in) Financing Activities(2,515)(2,080)Cash and Cash Equivalents at End of Period

5,585

6,614

Year EndedYear EndedYear Ending

March 31,

March 31,

March 31, 2012

2010

2011

Forecast

0.00

0.00

-

0.00

0.00

-

-

-

-

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)
Note:

As we have yet to determine the specific expected dividend amount, forecasts for the fiscal year-end
and full year are indicated with a dash.

III. Forecast for the Fiscal Year Ending March 31, 2012 (April 1, 2011－March 31, 2012)(Rounded down to millions of yen, % indicates changes from the previous same period)

Net Sales

Operating

Ordinary

Net%

Income%Income%IncomeNet Income per%

Share (yen)Interim72,500

(3.9)

1,900

(17.1)

1,700

(3.6)

1,000

-

4.35

Annual147,000

(0.6)

2,900

3.4

2,200

9.7

900

-

3.92

IV. Others
A Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None.
B Changes in principle, procedure and method of statement of accounting procedures
1) Change which accompanies revision of accounting standards:
Yes2) Change other than No.1.
No
Note: For details, please refer to the “Changes in Important Basic Items for Preparing Consolidated Financial
Statements”, P24.

C Outstanding shares (common shares)
1) Outstanding shares (including treasury stocks)

As of March 31, 2011229,849,936 shares
As of March 31, 2010
229,849,936 shares
2) Outstanding treasury stocks
As of March 31, 2011
73,082 shares
As of March 31, 2010
44,223 shares
3) Average number of shares
As of March 31, 2011229,791,896 shares
As of March 31, 2010
227,997,350 shares
Note: Please refer to P31 “Per Share Information” as to the number of shares which provides a base forcalculating net income per share (consolidated).

(Reference) Non-consolidated Financial Results
I. Financial Results for the Fiscal Year Ended March 31, 2011 (April 1, 2010－March 31, 2011)
A. Results of operations(Rounded down to millions of yen, % indicates changes from previous period)
Year EndedYear Ended

March 31, 2011
Net Sales%

March 31, 2010%

90,560(0.3)

90,871

0.6

Operating Income

161(86.6)

1,197-

Ordinary Income

1,161(23.7)

1,522

(3.6)

Net Income

(430)

-

1,607

44.8

Net Income per Share (yen)Non-diluted
Fully Diluted(1.88)
-

7.05
6.99

B. Financial Position(Rounded down to millions of yen)March 31, 2011

March 31, 2010

Total Assets

120,661

123,238

Net Assets

50,03050,495

Shareholders’ Equity to Total Assets Ratio

(%)

41.5

41.0

Shareholders’ Equity per Share(yen)

217.74219.73

Reference: Shareholders’ Equity
Year ended March 31, 2011 ¥50,030 mil.

Year ended March 31, 2010 ¥50,495 mil.

*Statement regarding state of implementation of review procedure: This summary of financial results is exempt fromaudit procedures under the Financial Instruments and Exchange Act. At the time of disclosure, published figuresin the Summary Announcement have been subject to an audit.
*Cautionary statement: The forecast for operating results has been determined based on information presently
available, as well as on assumptions that the Company believes to be reasonable. It is possible that in the future,
actual results may differ from the anticipated figures for a variety of reasons. Please refer to “Analysis ofManagement Performance” on page 2 of the supplementary material for the assumptions underlying theforecasts and precautions when using the forecasts.

c Table of contents for supplementary material
1. Management Performance......................................................................................................................2(1) Analysis of Management Performance .............................................................................................2(2) Analysis of Financial Position ..........................................................................................................4(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2011 and 2012 ..........................5(4) Risks Which Could Affect Our Business ..........................................................................................5
2. The Iseki Group......................................................................................................................................7
3. Iseki’s Management Policies ..................................................................................................................8(1) Iseki’s Basic Management Principles ...............................................................................................8(2) Long-term Management Strategies...................................................................................................8(3) Issues to Be Addressed......................................................................................................................8
4. Consolidated Financial Statements.......................................................................................................12(1) Consolidated Balance Sheets ..........................................................................................................12(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .....14(3) Consolidated Statements of Changes in Net Assets........................................................................17(4) Consolidated Statements of Cash Flows.........................................................................................20(5) Notes Regarding the Going Concern Assumption ..........................................................................22(6) Important Basic Items for Preparing Consolidated Financial Statements.......................................22(7) Changes in Important Basic Items for Preparing Consolidated Financial Statements....................24(8) Notes to the Consolidated Statements.............................................................................................25(Consolidated Balance Sheets Information) .....................................................................................25(Consolidated Statements of Income Information)...........................................................................26(Consolidated Statements of Comprehensive Income Information).................................................27(Consolidated Statements of Changes in Net Assets Information) ...................................................27(Consolidated Statements of Cash Flows Information) ....................................................................28(Segment Information)......................................................................................................................28(Per Share Information) ....................................................................................................................31(Significant Subsequent Events).......................................................................................................31
5. Non-consolidated Financial Statements ...............................................................................................32(1) Non-consolidated Balance Sheets...................................................................................................32(2) Non-consolidated Statements of Income ........................................................................................35(3) Non-consolidated Statements of Changes in Net Assets.................................................................37(4) Notes Regarding the Going Concern Assumption ..........................................................................40
6. Others ...................................................................................................................................................40(1) Production, Orders & Sales.............................................................................................................40(2) Change of Directors ........................................................................................................................43-1-

1. Management Performance(1) Analysis of Management Performance
During the fiscal year under review, Japan’s economy gradually recovered due to improving overseas economies andthe effects of various economic measures implemented by the government; however, it also brought several risk
factors such as deflation and a worsening employment situation. In addition, taking into account the considerable
impact of the Great East Japan Earthquake on Japan’s economy, the economic outlook is expected to remain unclear
in the near future.
Under such circumstances, the ISEKI Group adopted the slogan “Cheering Squad Supporting the Dream ofAgriculture! ISEKI,” and developed aggressive marketing activities by extending the range of its new products in
response to diversifying customer needs.

(Consolidated business performance of the year under review)
In the fiscal year ended March 31, 2011, net sales decreased ¥1,487 million from a year earlier to ¥147,826 million(down 1.0% year on year). Domestic sales decreased ¥2,549 million from a year earlier to ¥128,703 million (down
1.9% year on year), and overseas sales increased ¥1,061 million to ¥19,123 million (up 5.9% year on year).
Operating income decreased ¥1,712 million from a year earlier to ¥2,803 million (down 37.9% year on year),mainly due to a decline in gross profit, following a decrease in revenue and the effects of the yen’s appreciation.
Ordinary income decreased ¥1,651 million from a year earlier to ¥2,006 million (down 45.2% year on year). Net
income declined ¥3,265 million from a year earlier to a net loss of ¥918 million, as a result of posting a loss on
valuation of investment securities, loss on adjustment for changes of accounting standard for asset retirement
obligations, and loss from disaster related to the Great East Japan Earthquake.

(Non-consolidated business performance of the year under review)
In the fiscal year under review, net sales totaled ¥90,560 million (down 0.3% year on year), operating income was¥161 million (down 86.6% year on year), and ordinary income amounted to ¥1,161 million (down 23.7% year onyear). The Company recorded a net loss of ¥430 million.

Business performance by segment is as follows.
As a result of applying “Accounting Standard for Disclosure of Segments of an Enterprise and Related Information”(Accounting Standards Board of Japan (“ASBJ”) Statement No. 17, March 27, 2009) and “Guidance on the
Accounting Standard for Disclosures of Segments of an Enterprise and Related Information” (ASBJ Guidance No.
20, issued on March 21, 2008) from the fiscal year under review, the Company has classified its business segments
as “agriculture-related business” and “other business.”
Figures for the previous fiscal year have been reclassified in accordance with the new segments for comparison
with figures from the fiscal year ended March 31, 2011.

1) Agriculture-related business
Sales in the agriculture-related business in Japan declined due to a sluggish agricultural machinery market since last
autumn following a fall in rice prices, and due to the completion of a number of large dryer facilities etc, during theprevious fiscal year. Overseas, overall sales increased due to a recovery of orders from firms under OEM agreements-2-

in North America following inventory adjustments, and an increase in sales for European countries. Meanwhile,orders from Korean companies decreased due to the depreciation of the Korean won, and lower sales were recorded
in China stemming from a decline in sales of combine harvesters, which was partially offset by favorable sales ofrice transplanters.

Sales by product are as follows.

(Domestic)
Sales of cultivating & mowing machinery (tractors, high-clearance multipurpose vehicles, etc.) amounted to ¥26,681
million (down 3.4% year on year), and sales of planting machinery (rice transplanters and vegetable transplanters)
totaled ¥11,567 million (up 1.1% year on year). Sales of harvesting and processing machinery (combine harvesters,etc.) were ¥25,505 million (down 0.9% year on year). Moreover, sales of spare parts and farming implements
reached ¥30,993 million (up 1.8% year on year), while sales of other agriculture-related business (including
construction of facilities, etc.) declined to ¥33,811 million (down 5.6% year on year).

(Overseas)
Sales of cultivating & mowing machinery (tractors, etc.) increased to ¥13,093 million (up 13.2% year on year), andsales of planting machinery (rice transplanters, etc.) amounted to ¥2,521 million (up 2.3% year on year). Sales of
harvesting and processing machinery (combine harvesters, etc.) declined to ¥1,591 million (down 27.7% year onyear). Sales of spare parts and farming implements totaled ¥1,096 million (up 3.5% year on year), while sales ofother agriculture-related business were ¥819 million (up 6.7% year on year).

As a result, sales in the agriculture-related business segment totaled ¥147,682 million.

2) Other business
The Company develops, sells, and operates computer software in the “other business” segment. Sales in the otherbusiness segment amounted to ¥144 million.
3) Forecast for the Next Consolidated Fiscal Year
Japan’s economy has become more unpredictable in view of the immeasurable damage caused by the Great East
Japan Earthquake. Looking at the operating environment of the domestic agriculture industry, investment inagricultural machinery is expected to decline in areas affected by the earthquake due to salt damage and harmful
rumors. On the other hand, with the launch of the individual (household) income support system for agriculture fromfiscal year 2012, aiming at improving food self-sufficiency, we expect the agricultural sector to become more active
nationwide. Under such conditions, we anticipate agricultural machinery demand for the fiscal year ending March 31,
2012 to remain weak as a whole, and sales of agricultural machinery in Japan to be lower compared to the fiscal year
under review. Living up to the Group’s slogan “Cheering Squad Supporting the Dream of Agriculture! ISEKI,” wewill develop aggressive marketing activities for energy conservation and low-cost agricultural machinery. To ourcore commemorative model, launched in fiscal year 2011 to celebrate the Company’s 85th anniversary, we will add
new five- to seven-reaping row combine harvesters as part of our flagship machinery “Combine Japan series,” the-3-new “Combine HFC 433,” and complete the entire series of our highly competitive tractors. We will also enhance
our services and strengthen our sales activities to overcome fierce competition, and thereby maintain the current
level of sales in the domestic market.
Overseas, we expect sales to increase by firmly establishing the ISEKI brand through the active marketing of ricetransplanters in China.
In terms of profitability, we will endeavor to secure profits by actively cutting manufacturing costs andadministrative expenses, despite rising materials costs and disruptions in the supply chain caused by the Great East
Japan Earthquake.

(2) Analysis of Financial Position
Total assets at the end of the fiscal year decreased ¥1,876 million year on year, to ¥169,168 million. Looking at the
breakdown, current assets decreased ¥2,095 million year on year. Noncurrent assets increased ¥219 million from ayear earlier. Total liabilities decreased ¥888 million year on year, primarily due to a decline in interest-bearing
liabilities. Net assets also decreased ¥987 million year on year, to ¥54,617 million, due primarily to a net loss posted
in the fiscal year under review. The equity ratio was 31.4%.

(Net cash provided by (used in) operating activities)

Net cash provided by (used in) operating activities provided a net cash inflow of ¥7,060 million (down ¥265
million year on year), comprised principally of income before income taxes of ¥202 million and depreciation andamortization of ¥5,666 million.

(Net cash provided by (used in) investment activities)
Net cash provided by (used in) investment activities resulted in a net cash outflow of ¥5,674 million (up ¥1,354
million year on year), comprised principally of capital investment expenditures of ¥5,364 million.

(Net cash provided by (used in) financing activities)
Net cash provided by (used in) financing activities amounted to a net cash outflow of ¥2,515 million (up ¥435 million
year on year), due primarily to the repayment of interest-bearing liabilities.

Reference: The trend of cash flow indicators is as follows.
Indicator

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

2008

2009

2010

2011

Equity ratio

(%)

29.4

29.4

31.6

31.4

Market-based equity ratio

(%)

21.1

31.4

37.2

25.9

Cash flow/Interest-bearing liabilities Ratio (times)

15.0

5.7

6.3

6.2

Interest coverage ratio

3.3

7.6

7.1

7.9

(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: Operating cash flow / Interest payments
Notes: 1. All figures have been calculated using consolidated-based financial figures.
-4-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 Net Cash Provided by (Used in) Operating Activities as per theConsolidated Statements of Cash Flows. Interest-bearing liabilities use all the loans payable andbonds as recorded in the Consolidated Balance Sheets. The Interest payments use the interest paid
as recorded in the Consolidated Statements of Cash Flows.
(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2011 and 2012
We recognize that the method for determining dividends to be paid to shareholders is one of the most important
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 business movements.
With respect to dividends for the fiscal year ended March 31, 2011, because the Company registered a net loss, wehave decided not to pay year-end dividends.
With respect to dividends for the fiscal year ending March 31, 2012, we have yet to decide the dividends because
we expect demand for agricultural machinery to decline in the wake of a fall in investment appetite due to the Great
East Japan Earthquake, and the somber outlook for our operating environment with rising materials prices andunstable movements of foreign currencies such as the euro and the US dollar. We will announce our dividend policy
for the fiscal year ending March 31, 2012, as soon as we have a clearer view of our earnings.
We are determined to take the necessary steps to reinforce the basis of our earnings so that we will be able tosecure profit stability, aiming at the earliest possible resumption of dividend payments.

(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
There is a possibility that a hike in interest rate may harm our financial performance.
4) Stock Market Fluctuation
As we hold securities, stock price declines 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, is 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.

-5-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 necessitated responses
to public regulation of environmental issues etc., corrective measures undertaken upon the occurrence oftroubles, lawsuits 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.
In addition, a fall in production activities due to damage caused by the Great East Japan Earthquake,
including restrictions on electricity supplies and disruptions in the supply chain, may harm the ISEKI Group’sbusiness performance and financial position.
11) Risk of Legal Violation
In offering products and service of the ISEKI Group, we are subject to provisions of laws such thetruth-in-advertising laws and the JIS law, etc. In purchasing raw materials, the Antitrust Law as well as the
Subcontract Law requires fair and transparent dealings. Also application of environmental laws requires
compliance-oriented management, and we are determined to dedicate ourselves to accomplish complete legal
compliance, by preparing an internal control system. In spite of such efforts, if any of our directors and/or
employees should conduct themselves in any way that violates laws and regulations, there is a possibility thatthe business activities of our group will be restrained causing increased costs or decreased revenues, leading
to deteriorated performance.
12) Debt
We have concluded syndicate loan or commitment line contracts with financial institutions. Should any of thefinancial conditions of these contracts be triggered, we could face obligations to pay back some or all of theseloans, which could negatively affect the financial position of the Company.
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 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.

-6-

2. The Iseki GroupThe main business of the Iseki Group is the development, manufacture and sale of agricultural machinery for riceand vegetable farming, among other related areas.

Position of the business in the Iseki Group is stated in follows.
(Agriculture-related Business)
The Company primarily handles the development and design of agricultural machinery.
Six 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 andaffiliates as well as a wholly owned subsidiary in China, Iseki–Changzhou Mfg. Co., Ltd.
(Other Business)
System Equipment Co., Ltd. is engaged in various businesses including the development of computer software.
Following is a schematic diagram of the Iseki Group.

Overseas Users &Customers

Domestic Users & Customers

B u s i n e s s )

Sales
Sales

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

Consolidated Subsidiaries:
Iseki-Hokkaido Co., Ltd.
Iseki-Tohoku Co., Ltd.
and 11 other companies
Transport & Service
Consolidated Subsidiary:
Iseki BUTSURYU Co., Ltd. and 1 other company

Products& Parts

Sales

Products& Parts(Other Business)

Development of computer software, etc.

( A g r i c u l t u r e - r e l a t e dTransport & Service
Consolidated Subsidiaries：

ISEKI
Parts

Products & Parts

Consolidated Subsidiary：

Consolidated Subsidiaries:

Iseki - Changzhou Mfg. Co., Ltd.

Iseki-Matsuyama Mfg. Co., Ltd.

(China)Iseki-Kumamoto Mfg. Co., Ltd.
and 5 other companies-7-

System Equipment Co., Ltd.

3. Iseki’s Management Policies(1) Iseki’s Basic Management Principles
Since it was established over 80 years ago, ISEKI has been contributing to the modernization of Japan’s agriculturalindustry as a full-line manufacturer specializing in agricultural machinery. Over this time, we have consistently
pursued efficient and labor-saving 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 tosociety 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, toaccelerate cost-cutting measures and to strengthen our service”. We are aiming for a corporate culture that canmaintain a stable operating performance and will continue in our efforts to reform our profit structure.

(2) Long-term 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 andthe world. Our basic strategies are as follows.
(a) The expansion of overseas sales(b) To increase market share in domestic agricultural machinery market(c) To strengthen product competitiveness further(d) To improve consolidated financial position by strengthening earning power and cash flow
The ISEKI Group intends to focus on recovery efforts following the Great East Japan Earthquake in the fiscal year
ending March 31, 2012. With rising material costs and unpredictable movements of foreign currencies, the Group’s
operating environment is expected to remain difficult. Nevertheless, the Group will work to earn profits even undersuch constraints by uncompromisingly reducing manufacturing costs and administrative expenses, to turn itself intoa strong company that can resume steady growth.

(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 of management
policy, we have determined a fundamental policy for our internal control system, based on which we haveestablished an internal control system and revised it as necessary. Regarding the internal control system, to ensure
the efficient execution of directors’ duties, we have not merely prepared various regulations and systems such as job
assignment and internal control regulations. Rather, important issues are discussed multilaterally and are reviewed atmeetings attended by management. Furthermore, we have a system in place that properly oversees any information-8-

related to job execution, such as minutes of Board of Directors’ meetings and approval documents in accordancewith the Board of Directors Regulations and the Document Control Regulations.
In terms of a compliance system, a companywide “compliance team” under the supervision of the director in
charge of compliance endeavor to prevent any occurrence of injustice and misconduct by ensuring a fullunderstanding of compliance on the part of all directors and employees by continuously holding complianceseminars under the direction of compliance team.
As an organization concerned with internal control, we created a “Management Control Section” under the controlof the Head of the Development & Production Division in 2007, which assumed the ordinary monitoring function of
our manufacturing subsidiaries. Thus, we intend to strengthen the control function of our manufacturing subsidiaries.
Sales and other subsidiaries handle internal auditing on their own, as each Group company has a separate internal
auditing function. Furthermore, we created a “Management Control Section” under the Head of the Business
Division in 2007, which inspects the degree of implementation of internal auditing and gives guidance whennecessary.
We also created a “Management Supervisory Committee” in 2007, with the president as chairperson, the directors
as members and all auditors as observers, so that we can follow the discussion of various measures and their level ofprogress, as well as check the degree of thoroughness of compliance.

(b) Rejection of antisocial forces
i. Fundamental stance on rejection of antisocial forces
We actively work against any possibility of a relationship with antisocial forces or groups, manifesting the policyin the “ISEKI Group Code of Ethical Behavior”.
ii. 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 to reject
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 contact
and association with external organizations such as the police department and the National Center for the
Elimination of Boryokudan and lawyers.
We also belong to the Metropolitan Area Violation Prevention Association and receive regular guidance as well asshare information.

2) Important issues
In the midst of a drastically changing market environment, we will accelerate the reform of our earnings structure,
which will enable us to secure stable earnings for the foreseeable future. Along with our efforts to expand sales
through enhanced customer satisfaction by providing high-quality products and services that support energy
conservation and low-cost agriculture from a customer perspective, we endeavor to establish a low-cost structure andstrengthen consolidated financial stability.

-9-(a) Growth in domestic sales and expansion of overseas sales
In the face of intensifying competition in the market, we have positioned “Growth in domestic sales and expansionof overseas sales” as our most important managerial issues, trying to attain comprehensive enhancement ofefficiency, quality, price and service by concentrating on the total group potentiality to strengthen our productcompetitiveness. We will not only carry out fundamental quality improvement in our products, fully recognizing
market needs, but also ensure that product planning and introduction to the market are executed in a timely manner.
In the domestic market, we aim at achieving sales growth through efficient sales promotion, taking advantage of
agile sales companies with extensive territories, as well as through further enhancement of customer satisfaction
from strengthened sales and service performance. In our efforts to expand overseas sales, we will endeavor to fortify
our sales and service system in the Asian market, which has growth potential, and plan to increase sales and firmly
establish ourselves in Asia. 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
Our first priority lies with products that garner a high reputation among our customers, as we are improving ourdevelopment process in the pursuit of zero defects. Our development and manufacturing operations are working
together to improve the production process and establish a framework that guarantees product quality.
To reform our cost structure, we have established the 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 of 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 have implemented structural reforms, including restructuring, to streamline our organization.
Throughout the Group, we will endeavor to secure our profitability by cutting fixed 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 its line ofcommunication, thereby revitalizing its employees. The Company is considering and implementing various methods,
including appropriate job rotations, the exchange of personnel between organizations, and conducting training andeducation programs.
Moreover, we aim to address a number of environmental issues, which we regard as key managerial issues. We
will strengthen our commitment to conserving resources, saving energy, recycling, reducing greenhouse gas
emissions and noise pollution, among other efforts.

(d) Toward a full recovery from the Great East Japan Earthquake
Measures aimed at a full recovery from the unprecedented damage caused by the Great East Japan Earthquake is an
important management issue for the Company and the ISEKI Group. We have set up “the Great East Japan
Earthquake Recovery Office” right after the earthquake in the Business Division to support people affected by theearthquake in various ways. We intend to continue supporting them going forward until full recovery is achieved.
- 10 -

We will be establishing a system to deliver our products and parts reliably to customers in the affected areas and to
our consolidated sales company Iseki-Tohoku Co., Ltd. We will also be working toward a full recovery of our
production activities, which are hampered by disruptions in the supply chain at the moment.

- 11 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)
FY2010(as of Mar. 31, 2010)

FY2011(as of Mar. 31, 2011)

AssetsCurrent Assets:
Cash and deposits

6,705

5,696

Notes and accounts receivable-trade29,32028,688

Short-term investment securities

19

19

Merchandise and finished goods

37,136

37,216Work in process

3,219

2,569

Raw materials and supplies

1,114

1,180

963

632

Others

2,356

2,720

Allowance for doubtful accounts

(74)

(60)

80,761

78,665

Buildings and structures, net

14,835

14,909Machinery, equipment and vehicles, net

7,832

7,291

Tools, furniture and fixtures, net

2,486

2,113

Land

50,19050,173

Lease assets, net

3,692

4,863

Construction in progress

643

521

Other, net

1718

79,697

79,890

883

948

5,272

5,186

Long-term loans receivable

175

180

Deferred tax assets

724

781

Other

3,985

3,951

Allowance for doubtful accounts

(455)

(436)

Total investments and other assets

9,702

9,663

Total Noncurrent Assets

90,28390,503

171,044

169,168

Deferred tax assets

Total Current Assets
Noncurrent Assets:
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

Total Assets

12

(millions of yen)
FY2011(as of Mar. 31, 2011)

FY2010(as of Mar. 31, 2010)
Liabilities
Current Liabilities:
Notes and accounts payable-trade
Short-term loans payable

41,773
15,846

41,95017,883Current portion of bonds

1,060

-

Current portion of long-term loans payable

13,376

11,220

Lease obligations

1,107

1,603

Accrued consumption taxes

449

516

Income taxes payable
Deferred tax liabilities

753
25

463
4

4,237

3,332

416

821

-

174

2,724

3,319

81,77081,290-100Long-term loans payable

15,958

14,277

Lease obligations

2,937

3,771

Accrued expenses
Provision for bonuses
Provision for loss on disaster
Other
Total Current Liabilities
Noncurrent Liabilities:
Bonds payable

Deferred tax liabilities

417

397

Deferred tax liabilities for land revaluation
Provision for retirement benefits

7,595
5,084

7,593
5,225

Provision for directors' retirement benefits

155

134

-

294

Asset retirement obligations
Negative goodwill

11

2

1,509

1,465

33,669115,439

33,261
114,551

Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings
Treasury stock

6,076
(13)

5,160
(19)

42,862

41,939

Other
Total Noncurrent Liabilities
Total Liabilities
Net Assets
Shareholders’ equity

Total Shareholders’ Equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests

385

366

10,86910,867(7)(65)

11,247

11,169

1,494

1,508

Total Net Assets

55,60454,617

Total Liabilities and Net Assets

171,044

169,16813

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income[Consolidated Statements of Income](millions of yen)
FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Net sales

149,314

147,826

Cost of sales

101,925

101,639

Gross profit

47,38946,18742,87343,383

4,515

2,803

Interest income

224

206

Dividends income

102

102

0

9

Subsidies received

114

107

Rent income

150

147

Sales of scrap

74

145

Other

376

413

1,044

1,133

Interest expenses

1,035

891

Sales discounts

111

115

Foreign exchange losses

82

329

Loss on abandonment of inventories

385

296

Other

286

296

1,902

1,930

3,657

2,006

Gain on sales of noncurrent assets

87

67

Gain on sale of investment securities

2

1

89

68

Loss on sales and retirement of noncurrent assets

185

201

Impairment loss

424

62

Loss on valuation of investment securities

18

602

Loss on valuation of golf club membership1

3

Directors' retirement benefits

4

-

-

218

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

Amortization of negative goodwill

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary loss

Loss on adjustment for changes of accounting standard for
asset retirement obligations

14

FY2010(Apr. 1, 2009Mar. 31, 2010)
Loss on disaster

FY2011(Apr. 1, 2010Mar. 31, 2011)-

760

Environmental expenses

119-

Cost of measures for product recall

240

23

6

0

1,000

1,872

Income before income taxes

2,747

202

Income taxes-current

1,002

881

Income taxes-deferred

(604)

233

Total income taxes

397

1,115

Loss before minority interests

-

(912)

Minority interests in income

2

6

2,347

(918)

Other
Total extraordinary losses

Net income (loss)

15

[Consolidated Statements of Comprehensive Income](millions of yen)
FY2010(Apr. 1, 2009Mar. 31, 2010)
Loss before minority interests

FY2011(Apr. 1, 2010Mar. 31, 2011)
-

(912)

Valuation difference on available-for-sale securities-(9)

Foreign currency translation adjustment

-

(57)

Total other comprehensive income

-

(66)

-

(979)

parent-(994)

Comprehensive income attributable to minority interests-

15

Other comprehensive income

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of the16(3) Consolidated Statements of Changes in Net Assets(millions of yen)
FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Shareholders’ Equity
Capital Stock
Balance at the end of previous period

22,784

23,344

subscription rights to shares

559-

Total changes of items during the period

559-

23,344

23,344

12,815

13,454

subscription rights to shares

559-

Disposal of treasury stock78-

Total changes of items during the period

638-

13,454

13,454

4,072

6,076

Net income (loss)

2,347

(918)

Reversal of revaluation reserve for land

(342)

2

Total changes of items during the period

2,004

(916)

6,076

5,160

(185)

(13)

Purchase of treasury stock

(23)

(6)

Disposal of treasury stock

196-

Total changes of items during the period

172

(6)

(13)

(19)

39,48642,862

1,119-

Changes of items during the period
Issuance of new shares- exercise of

Balance at the end of period
Capital Surplus
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise of

Balance at the end of period
Retained Earnings
Balance at the end of previous period
Changes of 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 of items during the period
Issuance of new shares- exercise ofsubscription rights to shares

17

FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Net income (loss)

2,347

(918)

Purchase of treasury stock

(23)

(6)

Disposal of treasury stock275-

Reversal of revaluation reserve for land

(342)

2

Total changes of items during the period

3,375

(922)

42,862

41,939212385

equity172(18)

Total changes of items during the period

172

(18)

385

366

10,527

10,869equity342(2)

Total changes of items during the period

342

(2)

10,86910,867(11)(7)

equity3(57)

Total changes of items during the period

3

(57)

(7)

(65)

10,728

11,247

equity519(78)

Total changes of items during the period

519

(78)

11,247

11,169Balance at the end of period
Accumulated Other Comprehensive Income
Valuation Difference on Available-for-sale
Securities
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'

Balance at the end of period
Revaluation Reserve for Land
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'

Balance at the end of period
Foreign Currency Translation Adjustment
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'

Balance at the end of period
Total

Accumulated

Other

Comprehensive

IncomeBalance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'

Balance at the end of period18

FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Minority Interests
Balance at the end of previous period

1,479

1,494

equity15

13

Total changes of items during the period

15

13

1,494

1,508

51,69455,604

subscription rights to shares

1,119

-

Net income (loss)

2,347

(918)

Purchase of treasury stock

(23)

(6)

Disposal of treasury stock275-

Reversal of revaluation reserve for land

(342)

2

534

(64)

3,910

(987)

55,60454,617

Changes of items during the period
Net changes in items other than shareholders'

Balance at the end of period
Total Net Assets
Balance at the end of previous period
Changes in items during the period
Issuance of new shares- exercise of

Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period19(4) Consolidated Statements of Cash Flows(millions of yen)
FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Net Cash Provided by (Used in) Operating Activities:
Income before income taxes

2,747

202

Depreciation and amortization

5,140

5,666

Impairment loss

424

62

Amortization of negative goodwill

(0)

(9)

Increase (decrease) in provision for retirement benefits

255

140

Increase (decrease) in provision for loss on disaster-

174

Loss (gain) on sales of investment securities

2(0)

Loss on evaluation of golf club memberships

1

3

Interest and dividend income

(327)

(309)

Interest expenses

1,035

891

Foreign exchange losses (gains)

(72)

(169)

98

133

Decrease (increase) in notes and accounts receivable-trade

(586)

631

Decrease (increase) in inventories

506

503

(2,028)

176

-

218

Other

1,517

611

Subtotal

8,713

8,928

331

309

Interest expenses paid

(1,031)(891)

Income taxes paid

(1,111)(1,404)

Income taxes refund

424

118

7,326

7,060

Purchase of short-term investment securities

(19)

(19)

Proceeds from sales of short-term securities

240

19

(4,691)(5,364)

intangible assets

298

279

Purchase of investment securities

(315)

(529)

Proceeds from sales of investment securities

30

11

Decrease (increase) in loans receivable

3

2

Loss (gain) on sales of property, plant and equipment andintangible assets

Increase (decrease) in notes and accounts payable-trade
Loss on adjustment for changes of accounting standard for
asset retirement obligations

Interest and dividends income received

Net cash provided by (used in) operating activities
Net Cash Provided by (Used in) Investment Activities:

Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment and20

FY2010(Apr. 1, 2009Mar. 31, 2010)
Decrease (increase) in time deposits

FY2011(Apr. 1, 2010Mar. 31, 2011)
7

(20)

124

(54)

(4,320)(5,674)

Increase (decrease) in short-term loans payable, net(5,137)

2,063

Proceeds from long-term loans payable

14,610

10,135

Repayment of long-term loans payable(12,418)(13,972)-

100

Redemption of bonds(90)(1,060)

Proceeds from sell and leaseback transactions

1,598

1,491

Repayments of lease obligations(606)(1,255)Purchase of treasury stock

(23)

(6)

Other

(12)

(11)

(2,080)(2,515)78

100

Net Increase (Decrease) in Cash and Cash Equivalents

1,004(1,028)Cash and Cash Equivalents at Beginning of Period

5,609

6,614

Cash and Cash Equivalents at End of Period

6,614

5,585

Other
Net cash provided by (used in) investment activities
Net Cash Provided by (Used in) Financing Activities:

Proceeds from issuance of bonds

Net cash provided by (used in) financing activities
Effect of Exchange rate Change on 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……….24 companies(including Iseki-Matsuyama Mfg. Co., Ltd., Iseki-Kumamoto Mfg. Co., Ltd., Iseki-Hokkaido Co., Ltd. andIseki-Tohoku Co., Ltd.)

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-periodbalance sheet date of December 31. 10 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 occurred 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
Available-for-sale 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 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)(c) Derivatives........................................................ recorded using the market value method(2) Depreciation methods for material depreciable assets(a) Property, plant and equipment (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 buildings and accompanying facilities) acquired on or after
April 1, 1998, the straight-line method is used.
(b) Intangible assets (excluding lease assets)

22

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) Provision for loss due to disaster
The Company alloted the reserve for loss due to disaster for the restoration of assets damaged by theGreat East Japan Earthquake, based on estimates as at the end of the consolidated accounting period.
(d) Provision for retirement benefits
Provision for retirement benefits is recorded as at the end of the consolidated accounting period, and isprincipally based on the amounts for the obligation for employees' retirement benefits and pension 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 the estimatedremaining 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 thefollowing consolidated fiscal period.
(e) Provision for directors’ retirement benefits
Some of the consolidated subsidiaries record the directors’ retirement benefits to provide for directors'
retirement benefits in an amount as required by companies’ internal regulations.

(4) Accounting standards for revenues and expenses(a) Accounting standards for the value and cost of completed construction contracts
The percentage-of-completion method is applied for construction in progress up to the end of theconsolidated accounting period, for which the outcome can be estimated reliably (the proportional
cost method is applied for estimating the percentage of progress of the construction). The
completed-contract method is applied for other constructions.

23

(5) Foreign currency translation
Monetary assets and liabilities in foreign currencies are translated into yen at the rates of exchange in effectat 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 adjustment” in shareholders’equity and financial statements.

(6) 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.

(7) 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.

(8) 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 their value and which were purchased with an original maturity of three months or less.

(9) 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.

(7) Changes in Important Basic Items for Preparing Consolidated Financial Statements
1) Accounting Standard for Asset Retirement Obligations
Effective the consolidated accounting period, the Company has applied “Accounting Standard for Asset
Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidance on Accounting Standard for
Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008). As a result, operating and ordinary

24

income decreased by ¥9 million and income before income taxes decreased by ¥228 million.
2) Changes to Presentation
Effective the consolidated accounting period, the Company presents income before minority interests in theConsolidated Statements of Income because it has applied “Cabinet Office Ordinance of Partial Amendment toRegulation for Terminology, Forms and Preparation of Financial Statements” (Cabinet Office Ordinance No. 5,
March 24, 2009) based on “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.
22, December 26, 2008).

(8) Notes to the Consolidated Financial Statements(Consolidated Balance Sheets Information)

FY2011FY2010
Accumulated depreciation of
1. property, plant and equipment
91,216 million yen
94,005 million yen
2. Guaranteed liabilities
8,526 million yen
8,486 million yen
3. Notes receivable less discount-trade
46 million yen
12 million yen
4. Endorsed notes receivable-trade
386 million yen
371 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 (noncurrent liabilities) as a
“Deferred tax liabilities for land revaluation” and the deducted amount has been recorded under assets
as “Revaluation reserve for land.”・ Revaluation method
・・・・・The revaluation of land has been determined using a reasonableadjustment to the assessed value of the noncurrent assets for property
tax as stipulated in Paragraph 3, Article 2 of the enforcement order(Government ordinance No. 119, announced on March 31, 1998).
・ Revaluation date・・・・・March 31, 2001
・ Variance between themarket value of therevalued land at the end of・・・・(10,632) million yen
the period and therevalued book value

25

(Consolidated Statements of Income Information)

1. Research and development expenses

FY2010FY2011

4,025 million yen

3,883 million yen

2. Impairment loss
FY2010 (April 1, 2009 - March 31, 2010)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage

Type

Location

Impairment loss

Land

Yokkaichi, Mie Pref.

15

Land

Yonago, Tottori Pref.

1

Land

Mitoyo, Kagawa Pref.

16

Land

Kuma, Kumamoto Pref.

11

Land

Kitamorokata, Miyazaki Pref.

1

Land

Kirishima, Kagoshima Pref.

2

Land

Kunisaki, Oita Pref.

12

Land

Kumamoto, Kumamoto Pref.

361

Idle property

Property loaned out
Total

424

(Reason to recognized impairment loss)
The Company recorded an impairment loss on the above assets. This is because idle properties are not being usedand have no prospect for use in the future. In addition, the market price of land is declining for idle properties andproperties loaned out.
(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 noncurrent assets for property tax.

FY2011 (April 1, 2010 - March 31, 2011)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage
Idle property

Type
Buildings, Land

Location
Saihaku, Tottori Pref.

Property loaned out

Land

Goshogawara, Aomori Pref.
Total

Impairment
4
57
62(Reason to recognized impairment loss)
The Company recorded an impairment loss on the above assets. This is because idle properties are not being usedand have no prospect for use in the future. In addition, the market price of land is declining for idle properties andproperties loaned out.
(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 noncurrent assets for property tax.

26

(Consolidated Statements of Comprehensive Income Information)
FY2011 (April 1, 2010 – March 31, 2011)
1.

Comprehensive income for the previous fiscal year ended March 31, 2010
Comprehensive income attributable to parent company

2,523 million yen

Comprehensive income attributable to minority interests

18 million yen

Total

2.

2,541 million yen

Other comprehensive income for the previous fiscal year ended March 31, 2010
Valuation difference on available-for-sale securities

188 million yen

Foreign currency translation adjustment

3 million yen

Total

192 million yen(Additional Information)
Effective the consolidated accounting period, the Company has applied “Accounting Standard for Presentation ofComprehensive Income” (ASBJ Statement No. 25, June 30, 2010). Accordingly, the Company presents “valuationand transaction adjustments” and “total valuation and transaction adjustments” for the fiscal year ended March 31,
2010, as “accumulated other comprehensive income” and “total accumulated other comprehensive income”
respectively.

(Consolidated Statements of Changes in Net Assets Information)
FY2010 (April 1, 2009 - March 31, 2010)1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury stock(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

Number of shares(as of Mar. 31, 2009)

Increase in numberof shares during
periodDecrease in numberof shares during
periodNumber of shares(as of Mar. 31, 2010)

226,536,329

3,313,607—

229,849,936

790,839

66,993

813,60944,223

There was an increase of 3,313,607 shares in outstanding shares of common stock and a decrease of 813,609 sharesin treasury shares of common stock. These occurred because we exercised the subscription rights for thoseconvertible bond-type bonds with subscription rights to shares. Meanwhile, treasury shares of common stockincreased by 66,993 shares because shares below the stock trading unit were purchased.

27

FY2011 (April 1, 2010 - March 31, 2011)1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury stock
Number of shares(as of Mar. 31, 2010)

Increase in numberof shares during
periodDecrease in numberof shares during
periodNumber of shares(as of Mar. 31, 2011)229,849,936——

229,849,936

44,22328,859—73,082(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

Increase in the number of shares, 28,859 shares during the period was by purchasing of shares below stock trading
unit.

(Consolidated Statements of Cash Flows Information)
Reconciliation between cash and cash equivalents at the end of period and the amount reported in the Consolidated
Balance Sheets.
FY2010Cash and deposits

FY2011

6,705 million yen

5,696 million yen

3 months or more(90) million yen(110) million yen

Total cash and cash equivalents

6,614 million yen

5,585 million yen

Time deposits with terms of(Segment Information)
1. Business Segment Information
For the previous period (April 1, 2009 - March 31, 2010), the total sales, operating income, and total assets of the“Agricultural machinery related operations” segment accounted for more than 90% of all segments. Accordingly, thebreakdown of segment information by business type is not presented.

2. Geographical Segment Information
For the previous period (April 1, 2009 - March 31, 2010), the total sales and total assets of the “Japan” segment
accounted for more than 90% of all segments. Accordingly, the breakdown of segment information by region is notpresented.

28

3. Overseas Sales Information
FY2010 (April 1, 2009 - March 31, 2010)(millions of yen)
The
UnitedStatesI

Overseas sales

II

Consolidated net sales

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

EuropeOthers

Total

4,201

7,294

6,566

18,061－－－

149,314

2.8

4.9

4.4

12.1

Notes: (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.

4. Segment Information(Additional Information)
Effective the consolidated accounting period, the Company has applied “Accounting Standard for Disclosure of
Segments of an Enterprise and Related Information” (ASBJ Statement No. 17, March 27, 2009) and “Guidance on
the Accounting Standard for Disclosures of Segments of an Enterprise and Related Information” (ASBJ Guidance
No. 20, March 21, 2008).

(1) Segment disclosure
The Company’s reported segments are business units for which discrete financial data are available and which
are periodically reviewed by the Company’s Board of Directors to determine resource allocation and to evaluate
financial performance.
Our business by products / services consists of two reportable segments, namely “agriculture-related business”
which is the core of our business, and “other business” which attends rest of the business.
The “agriculture-related business” consists of the manufacture and sale of agricultural machinery, construction
and sale of agriculture-related facilities, and business related to agricultural activities and products, including
revenue from the use of rice-polishing machines. The “other business” consists of information processing
services including the development, sale, and operation of computer software.

(2) Method of accounting for net sales, income/loss, assets, liabilities and other items by segment
Most items reported under a segment apply the same accounting method to that stated in “Important Basic Items
for Preparing Consolidated Financial Statements.”
The income of a segment is equal to net income. Internal sales and transfer amounts between segments arerecorded on the basis of market price.

29

(3) Net sales, income/loss, assets, liabilities and other items by segment
FY2011 (April 1, 2010 - March 31, 2011)(millions of yen)
Agriculturerelated
Net sales
Sales to outside customers
Internal sales or transfers
between segments
Total
Segment income (loss)
Segment assets
Segment liabilities
Other items
Depreciation
Amortization of negative
goodwillInterest income
Interest expenses
Extraordinary income
Extraordinary loss
(Loss on disaster)
Taxes
Increase of property, plantand equipment andintangible assets

Other

Total

Adjustments

Amount reported in
the consolidated
financialstatements

147,682

144

147,826-

147,826

0
147,682(919)
169,078
43,480

135
279
1
202
-

135
147,962(918)
169,281
43,480

(135)
(135)
(112)
-

147,826(918)
169,168
43,480

5,665

0

5,666

-

5,666

10
206
891
68
1,872
(760)
1,110

(1)
0
4

9
206
891
68
1,872
(760)
1,115

(0)
(0)
-

9
206
891
68
1,872
(760)
1,115

7,922

0

7,922

-

7,922

Notes:
1.

Adjustment represents reduction in internal unrealized profit.

2.

Segment income (loss) have been adjusted from net income(loss) reported in the Consolidated Statementsof Income.

3.

Segment assets have been adjusted from total assets reported in the Consolidated Balance Sheets.

4.

Segment liabilities represent short-term loans payable, long-term loans payable (including the current
portion of long-term loans payable), and bonds payable (including current portion of bonds payable).

30

(Per Share Information)(yen)
FY2010FY2011

Net assets per share

235.46231.13

Net income (loss) per share

10.29(4.00)Net income per share after adjustment for dilutive securities

10.21 The Company
has not
presented thisinformation
because there
were nodilutivesecurities.

Note: Basis of calculation of net income (loss) per share and net income per share after adjustment for dilutive
securities
FY2010FY2011

Net income (loss) per share
Net income (loss) reported in the Consolidated Statements of Income

2,347

(918)

2,347

(918)

-

-

227,997,350

229,791,896(millions of yen)--(shares)

1,842,285-(1,842,285)

(-)

-

-

(millions of yen)
Net income (loss) attributed to common shares(millions of yen)

Net income (loss) not attributable to common shares(millions of yen)
During period average number of common shares(shares)

Net income per share after adjustment for dilutive securities
Adjustment of net income
Increased number of common shares(Subscription rights, 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(Significant Subsequent Events)
FY2010 (April 1, 2009 –March 31, 2010)
Not applicable

FY2011 (April 1, 2010 – March 31, 2011)
Not applicable31

5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(millions of yen)
FY2010(as of Mar. 31, 2010)

FY2011(as of Mar. 31, 2011)

Cash and deposits

2,605

2,601

Notes receivable-trade

6,058

7,451

Accounts receivable-trade28,21827,488Merchandise and finished goods

14,73912,8603

0

Raw materials and supplies

234

230

Advance payments-trade

402

329

Prepaid expenses

251

251

Deferred tax assets

748

445

Short-term loans receivable

8,701

7,788

Accounts receivable-other

943

1,164

Other

81

79

Allowance for doubtful accounts

(4)

(4)

62,98460,687

Buildings, net

3,770

3,666

Structures, net

212

184

2,114

1,667

6

3

Tools, furniture and fixtures, net

1,315

1,047

Land

25,161

25,183

Lease assets, net

125

190

Construction in progress

11

15

32,71831,958

Leasehold right

85

85

Software

214

188

Lease assets

84

130

Other

32

57

416

461

AssetsCurrent Assets:

Work in process

Total Current Assets
Noncurrent Assets:
Property, plant and equipment

Machinery and equipment, net
Vehicles, net

Total property, plant and equipment
Intangible assets

Total intangible assets

32

FY2010(as of Mar. 31, 2010)

FY2011(as of Mar. 31, 2011)

Investment securities

4,992

4,871

Stocks of subsidiaries and affiliates

17,357

17,357

Investments in capital

93

90

Investments in capital of subsidiaries and affiliates

278

278

Long-term loans receivable from employees

84

67

4,384

4,876

rehabilitation and other00Long-term prepaid expenses

220

322

Other

1,027

1,006

Allowance for doubtful accounts

(176)

(170)

Allowance for investment loss

(1,145)(1,145)

Total investments and other assets

27,11827,554

Total Noncurrent Assets

60,25359,974

123,238

120,661

Notes payable-trade

15,313

15,919Accounts payable-trade

14,37915,756

Short-term loans payable

5,500

6,500

Current portion of bonds

1,000

-

Current portion of long-term loans payable

10,378

8,348

Lease obligations

55

91

Account payable-other

715

655

2,276

1,598

Income taxes payable

8564

Advances received

323

176

Deposits received

266

276

Provision for bonuses-

220

Provision for loss on disaster

-

123

158

144

4

4

50,45649,880Investments and other assets

Long-term loans receivable from subsidiaries andaffiliates
Claims provable in bankruptcy, claims provable in

Total Assets
Liabilities
Current Liabilities:

Accrued expenses

Notes payable-facilities
Other
Total Current Liabilities

33

(millions of yen)
FY2010(as of Mar. 31, 2010)

FY2011(as of Mar. 31, 2011)

Noncurrent Liabilities:
Long-term loans payable

12,025

10,177

Lease obligations

165

246

Deferred tax liabilities

334

310

Deferred tax liabilities for land revaluation

7,595

7,593

Provision for retirement benefits

1,087

1,266

Long-term deposits from employees

782

758

Long-term deposits received

25

24

Asset retirement obligations

-

128

269

245

22,28520,75072,742

70,631

23,344

23,344

Legal capital surplus

11,554

11,554

Other capital surplus

2,450

2,450

Total capital surpluses

14,00414,004

1,916

1,487

1,916

1,487

(13)

(19)

39,25238,817

373

345

Revaluation reserve for land

10,86910,867

Total valuation and translation adjustments

11,243

11,21250,49550,030123,238

120,661

Other
Total Noncurrent Liabilities
Total Liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock
Total Shareholders’ Equity
Valuations and Translation Adjustments
Valuation difference on available-for-salesecurities

Total Net Assets
Total Liabilities and Net Assets

34

(2) Non-consolidated Statements of Income(millions of yen)
FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Net sales

90,871

90,560

Cost of sales

78,02078,358Gross profit

12,85012,202

Selling, general and administrative expenses

11,653

12,041

Operating income

1,197

161

Interest income

427

390

Dividends income

565

1,150

1,320

1,388

267

258

2,580

3,189

Interest expenses

534

424

Interest on bonds

8

0

Sales discounts

68

64

Rent expenses

1,130

1,135

Loss on abandonment of inventories

267

177

Other

246

385

2,256

2,188

1,522

1,161

Gain on sales of noncurrent assets

32

16

Reversal of allowance for doubtful accounts

7

5

Reversal of allowance for investment loss

118

-

157

21

Loss on sales and retirement of noncurrent assets

85

81

Impairment loss

361

-

0

602

asset retirement obligations-

121

Loss on disaster-

469

Environmental expenses

112-

Cost of measures for product recall

240

23

Other

17

-

Non-operating income

Rent income
Other
Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary loss

Loss on valuation of investment securities
Loss on adjustment for changes of accounting standard for35

FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Total extraordinary losses

818

1,298

Income (loss) before income taxes

861

(114)

Income taxes

23

23

Income taxes-deferred

(769)

292

Total income taxes

(745)

316

Net income (loss)

1,607

(430)

36

(3) Non-consolidated Statements of Changes in Net Assets(millions of yen)
FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Shareholders’ Equity
Capital Stock
Balance at the end of previous period

22,784

23,344

subscription rights to shares

559-

Total changes of items during the period

559-

23,344

23,344

10,994

11,554

subscription rights to shares

559-

Total changes of items during the period

559-

11,554

11,554

2,371

2,450

Disposal of treasury stock78-

Total changes of items during the period

78

-

2,450

2,450

13,366

14,004

subscription rights to shares

559-

Disposal of treasury stock78-

Total changes of items during the period638-

14,00414,004651

1,916

Changes of items during the period
Issuance of new shares- exercise of

Balance at the end of period
Capital Surplus
Legal capital surplus
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise of

Balance at the end of period
Other capital surplus
Balance at the end of previous period
Changes of items during the period

Balance at the end of period
Total capital surplus
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise of

Balance at the end of period
Retained Earnings
Other retained earnings
Retained earnings brought forward
Balance at the end of previous period
Changes of items during the period37

FY2010(Apr. 1, 2009Mar. 31, 2010)

FY2011(Apr. 1, 2010Mar. 31, 2011)

Net income (loss)

1,607

(430)

Reversal of revaluation reserve for land

(342)

2

Total changes of items during the period

1,264

(428)

1,916

1,487

651

1,916

Net income (loss)

1,607

(430)

Reversal of revaluation reserve for land

(342)

2

Total changes of items during the period

1,264

(428)

1,916

1,487

(185)

(13)

Purchase of treasury stock

(23)

(6)

Disposal of treasury stock

196-

Total changes of items during the period

172

(6)

(13)

(19)

36,61639,252

subscription rights to shares

1,119

-

Net income (loss)

1,607

(430)

Purchase of treasury stock

(23)

(6)

Disposal of treasury stock275-

Reversal of revaluation reserve for land

(342)

2

Total changes of items during the period

2,636

(435)

39,25238,817215373

equity157(27)

Total changes of items during the period

157

(27)

Balance at the end of period
Total retained earnings
Balance at the end of previous period
Changes of items during the period

Balance at the end of period
Treasury Stock
Balance at the end of previous period
Changes of items during the period

Balance at the end of period
Total Shareholders’ Equity
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise of

Balance at the end of period
Valuation and Translation Adjustments
Valuation Difference on Available-for-sale
Securities
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders’38

FY2010(Apr. 1, 2009Mar. 31, 2010)
Balance at the end of period

FY2011(Apr. 1, 2010Mar. 31, 2011)
373

345

10,527

10,869equity342(2)

Total changes of items during the period

342

(2)

10,86910,867

10,742

11,243equity500(30)

Total changes of items during the period

500

(30)

11,243

11,21247,35950,495rights to shares

1,119

-

Net income (loss)

1,607

(430)

Purchase of treasury stock

(23)

(6)

Disposal of treasury stock275-

Reversal of revaluation reserve for land

(342)

2

500

(30)

3,136

(465)

50,49550,030

Revaluation Reserve for Land
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'

Balance at the end of period
Total Valuation and Translation Adjustments
Balance at the end of previous period
Changes of items during the period
Net changes in items other than shareholders'

Balance at the end of period
Total Net Assets
Balance at the end of previous period
Changes of items during the period
Issuance of new shares- exercise of subscription

Net changes in items other than shareholders'equityTotal changes of items during the period
Balance at the end of period39

(4) Notes Regarding the Going Concern Assumption
Not applicable

6. Others(1) Production, Orders & Sales
The Company has applied a new classification following the application of “Accounting Standard for Disclosureof Segments of an Enterprise and Related Information” (ASBJ Statement No. 17, March 27, 2009) and “Guidanceon the Accounting Standard for Disclosures of Segments of an Enterprise and Related Information” (ASBJ
Guidance No. 20, March 21, 2008) from the consolidated accounting period. Figures for the previous consolidated
accounting period have been reclassified in accordance with the new segments for comparison with figures fromthe fiscal year ended March 31, 2011.
1) Production results per product–type(millions of yen)
FY2010FY2011(Apr. 1, 2009-Mar. 31, 2010)(Apr. 1, 2010-Mar. 31, 2011)

Change from previous
periodCultivating & mowing
machinery

41,284

41,475

190

Planting machinery

16,734

14,535(2,198)27,90729,033

1,126

2,248

2,329

80

12,3069,811(2,495)

100,481

97,185(3,296)---

100,481

97,185(3,296)

Product-type

Harvesting andprocessing machinery
Parts and farming
implements
Other agriculture related
business
Agriculture-related businesssegment total
Other business segment total
Total
Note: Figures are shown in terms of sales values.

2) Orders
We operate a system whereby production is based mostly on projected demand. We hardly ever produce on order.

403) Sales results per product–type(a) Total(millions of yen)
Product-type

FY2010FY2011(Apr. 1, 2009-Mar. 31, 2010)(Apr. 1, 2010-Mar. 31, 2011)

Change from previous
periodAmountAmountAmount

Ratio

Ratio

%

Ratio

%

%

Cultivating &mowing machinery

39,201

26.3

39,775

26.9

573

1.5

Planting machinery

13,9079.3

14,089

9.6

182

1.3

27,93418.7

27,097

18.3

(836)

(3.0)

31,49321.1

32,089

21.7

595

1.9

36,57924.5

34,63123.4(1,948)(5.3)

149,116

99.9

147,682

99.9(1,433)

(1.0)

198

0.1

144

0.1

(54)

(27.3)

149,314100

147,826100(1,487)(1.0)

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business segment total
Other business segment
total
Total

(b) Domestic(millions of yen)
Product-type

FY2010FY2011(Apr. 1, 2009-Mar. 31, 2010)(Apr. 1, 2010-Mar. 31, 2011)

Change from previous
periodAmountAmountAmount

Ratio
%

Ratio
%

Ratio
%

Cultivating &mowing machinery

27,632

21.1

26,681

20.7

(950)

(3.4)

Planting machinery

11,442

8.7

11,567

9.0

124

1.1

25,73419.6

25,505

19.8

(228)

(0.9)

30,43423.2

30,993

24.1

558

1.8

35,811

27.3

33,81126.3(1,999)(5.6)

131,055

99.9

128,559

99.9(2,495)

(1.9)

198

0.1

144

0.1

(54)

(27.3)

131,253

100

128,703100(2,549)(1.9)

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business segment total
Other business segment
total
Total

41

(c) Overseas(millions of yen)
Product-type

FY2010FY2011(Apr. 1, 2009-Mar. 31, 2010)(Apr. 1, 2010-Mar. 31, 2011)

Change from previous
periodAmountAmountAmount

Ratio

Ratio

%

Ratio

%

%

Cultivating &mowing machinery

11,56964.1

13,093

68.5

1,524

13.2

Planting machinery

2,464

13.6

2,521

13.2

57

2.3

2,200

12.2

1,591

8.3

(608)

(27.7)

1,059

5.9

1,096

5.7

37

3.5

768

4.2

819

4.3

51

6.7

18,061

100.0

19,123

100.0

1,061

5.9

-

-

-

-

-

-

18,061

100

19,123

100

1,061

5.9

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business segment total
Other business segment
total
Total

42

(2) Change of Directors (As of June 28, 2011)

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

Managing Director andSenior Corporate Officer
General Division Manager,(Current position)
Senior Corporate Officer

Akio Kikuchi

General Division Manager,
Business Division

Business Division

2) Candidate for appointment as auditor(New position)(Name)

Corporate Auditor

Masaharu Kamekawa(Current position)
General Manager of Internal
Control Department

3) Retiring director(Current position)(Name)

Senior Corporate Executive Officer

Representative Director & Executive
Managing Director and SeniorCorporate Executive Officer(Position after retirement)

Head of Business Division (matters
Yasuo Seike

concerning reconstruction after theearthquake) (other special

Head of Business Divisionassignments, etc.)

4) Retiring auditor(Current position)(Name)(Position after retirement)

Corporate Auditor

Keiji Ito-43