November 12, 2018
Name of Listed Company: ISEKI & CO., LTD.
Stock Exchange Listings: Tokyo
Company Code:6310 (URL http://www.iseki.co.jp)
Representative: Title President
Name Eiichiro Kinoshita
Enquiries:
Title General Manager of Financial Department
Name Yoshikazu Ogusu
Telephone: +81-3-5604-7671
Date of Submission of Quarterly Report:
November 12, 2018
Scheduled Date to Commence Dividend Payment:—
Supplementary Information for Quarterly Financial Results: Yes
Quarterly Financial Results Briefing:
Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Nine Months Ended September 30, 2018 (Japanese GAAP)
I. Consolidated Financial Results for the Nine Months Ended September 30, 2018 (January 1, 2018－September 30, 2018)
A. Consolidated Results of Operations (Cumulative Total)(Rounded down to millions of yen, % indicates change from the previous corresponding period)

Nine Months Ended
September 30, 2018
119,186
3,591
2,765
2,219

%

Nine Months Ended
September 30, 2017
120,526
4,633
5,446
3,332%Net Sales(1.1)
1.8
Operating Income(22.5)
67.6
Ordinary Income(49.2)
238.2
Profit Attributable to Owners of Parent(33.4)
368.6
Earnings per Share (yen)
Basic
98.26
147.54
Diluted98.11
147.29Note: Comprehensive income
Nine months ended September 30, 2018: ¥1,205 million [(67.6)%]
Nine months ended September 30, 2017: ¥3,721 million [—%]* The Company has consolidated shares of its common stock (one-for-ten share consolidation), effective July l, 2017.
The amounts stated for basic earnings per share are calculated based on the assumption that shares of the commonstock were consolidated at the beginning of the previous fiscal year.

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

As of September 30, 2018

As of December 31, 2017

211,508
71,43932.93,084.44

201,348
70,91634.4
3,061.84

Total Assets
Net Assets
Shareholder’s Equity to Total Assets Ratio (%)
Net Assets per Share (yen)Reference: Shareholder’s equity
As of September 30, 2018: ¥69,677 million
As of December 31, 2017: ¥69,164 million
II. Dividends

1Q-endFY Ended December 31, 2017
FY Ending December 31, 2018
FY Ending December 31, 2018
(Forecast)——

Dividend per Share(yen)2Q-end3Q-end————Year-end
30.00

Total
30.00

30.00

30.00

Note: Revision of the most recently announced dividend forecast: NoIII. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2018 (January 1, 2018－December 31, 2018)(Rounded down to millions of yen, % indicates change from the previous period)
Net Sales%

Operating
Income%Ordinary
Income%155,000 (2.1)
3,200 (19.1)
2,600 (38.8)
Note: Revision of the most recently announced financial results forecast: Yes
Full Year

ProfitAttributableto Owners ofParent

1,400%(50.1)

Earningsper Share(yen)61.98* NotesA. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in the scope of consolidation): No
New: — (), Exclusion: — ()B. Adoption of special accounting treatment for preparing the quarterly consolidated financial statements: No
C. Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards, etc.:
2) Any changes other than 1) above:3) Changes in accounting estimates:
4) Restatements:

NoNoNoNo

D. Total number of shares issued (common stock)1) Total number of shares issued at the end of the period (including treasury shares):
As of September 30, 2018
22,984,993 shares
As of December 31, 2017
22,984,993 shares2) Total number of treasury shares at the end of the period:
As of September 30, 2018394,990 shares
As of December 31, 2017395,946 shares
3) Average number of shares during the period (cumulative total):
Nine months ended September 30,22,589,300 shares
2018
Nine months ended September 30,22,588,348 shares
2017* The Company has consolidated shares of its common stock (one-for-ten share consolidation), effective
July l, 2017. The amounts stated for the total number of shares issued (common stock) are calculated
based on the assumption that shares of the common stock were consolidated at the beginning of theprevious fiscal year.

* These quarterly financial results are outside the scope of quarterly review procedures to be performed bycertified public accountants or an audit corporation.
* Explanation on the proper use of financial results forecasts and other notes
The financial results forecasts and other forward-looking statements contained in this report are based on
information available to the Company on the date of this report’s release and certain preconditions that theCompany deems to be reasonable. Actual results, etc. may differ significantly from the forecasts, however, as aresult of various factors. For details on the preconditions on the financial results forecasts of the Company andnotes on the use of financial results forecasts, please see “1. Qualitative Information on Consolidated FinancialResults for the Period under Review” on page 2 of the Appendix.

 Contents of Appendix
1. Qualitative Information on Consolidated Financial Results for the Period under Review ....................2(1) Explanation on Results of Operations ..............................................................................................2(2) Explanation on Financial Position ....................................................................................................2(3) Explanation on Consolidated Financial Results Forecasts andOther Forecast Information ..............................................................................................................3
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................4(1) Quarterly Consolidated Balance Sheets............................................................................................4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ....................................................................................................................6(3) Notes to Quarterly Consolidated Financial Statements ....................................................................8(Notes to Going Concern Assumption) ............................................................................................8(Notes to Material Changes in Shareholders’ Equity) ......................................................................8-1-1. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation on Results of Operations
During the nine months ended September 30, 2018, the Japanese economy saw signs of recovery in consumer
spending while corporate earnings and employment conditions remained on an improving trend. Meanwhile, theworld economy continued its slow recovery as a whole. The U.S. economy experienced steady growth against thebackdrop of a sound employment environment. The European economy remained on a recovery track led bydomestic demand, while the Chinese economy showed signs of slowdown in public investment and personal
consumption.
On the other hand, in the domestic agricultural environment, the market for agricultural machinery is leveling off
amid ongoing structural changes in agriculture.
Under these circumstances, ISEKI Group continued its initiatives to expand sales volume mainly by launching
new products and improving customer service in Japan, while working to strengthen its sales in its mainstay
overseas markets of North America, Europe, China and ASEAN. As a result, the Group’s consolidated financial
results are summarized as follows.
Net sales for the nine months ended September 30, 2018 were ¥119,186 million, a decrease of ¥1,339 million (1.1%)
year on year. Domestic sales in Japan were ¥93,900 million, a decrease of ¥434 million (0.5%) year on year, mainly
as a result of a decrease in sales of tractors and orders received for construction of facilities despite favorable sales ofrice transplanters thanks to the launch of new products, with added help from favorable sales of farming implements,
spare parts, and repair fees. Overseas sales were ¥25,286 million, a decrease of ¥905 million (3.5%) year on year.
This was mainly due to the decreased shipments of rice transplanters in China and tractors in Thailand stemmingfrom local inventory adjustments, despite increased income in North America after changes in business terms andincreased sales at ISEKI France S.A.S. in Europe.
Operating income was ¥3,591 million, a decrease of ¥1,042 million (22.5%) year on year, due to temporary
factors such as unprofitable construction of facilities and expenses resulting from the application of the principle ofcalculating retirement benefits upon the merger of subsidiaries, as well as other factors such as increased
development costs for products responsive to the emission gas regulations and increased personnel expenses, inaddition to a decrease in gross margin due to decreased revenue.
Ordinary income was ¥2,765 million, a decrease of ¥2,681 million (49.2%) year on year, mainly due to aworsening in the share of profit or loss of entities using equity method for an affiliate in China, as well as thedisappearance of subsidy income recorded in the same period of the previous fiscal year.
Profit attributable to owners of parent was ¥2,219 million, a decrease of ¥1,112 million (33.4%) year on year,resulting from decreased tax expenses by the application of the consolidated taxation system.
Sales by product are as follows.
[Domestic]
Sales of cultivating machinery (tractors, high-clearance multipurpose vehicles, among others) were ¥21,039
million (a decrease of 6.4% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥7,464 million (an increase of 12.4% year on year). Sales of harvesting and processing
machinery (combine harvesters, among others) were ¥13,749 million (a decrease of 1.0% year on year). Sales offarming implements, spare parts and repair fees were ¥31,513 million (an increase of 2.3% year on year). Sales ofother agriculture-related business (construction of facilities, among others) were ¥20,132 million (a decrease of 1.9%
year on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥19,320 million (an increase of 8.3%
year on year). Sales of planting machinery (rice transplanters, among others) were ¥1,755 million (a decrease of
47.3% year on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥514
million (a decrease of 69.6% year on year). Sales of farming implements and spare parts were ¥2,064 million (anincrease of 1.5% year on year). Sales of other agriculture-related business were ¥1,632 million (an increase of 26.6%year on year).
(2) Explanation on Financial Position[Assets]
Total assets at the end of the third quarter ended September 30, 2018 increased by ¥10,160 million from the end of
the previous fiscal year to ¥211,508 million. This was mainly due to an increase of ¥10,884 million in notes andaccounts receivable - trade, an increase of ¥1,055 million in inventories, and a decrease of ¥1,139 million ininvestment securities.
[Liabilities]
Total liabilities at the end of the third quarter ended September 30, 2018 increased by ¥9,637 million from the endof the previous fiscal year to ¥140,069 million. This was mainly due to an increase of ¥2,143 million in notes andaccounts payable - trade and electronically recorded obligations - operating, an increase of ¥9,255 million in
short-term loans payable and long-term loans payable, and a decrease of ¥823 million in other non-current liabilities.
[Net assets]-2-Total net assets at the end of the third quarter ended September 30, 2018 increased by ¥523 million from the endof the previous fiscal year to ¥71,439 million. This was mainly due to ¥2,219 million of profit attributable to ownersof parent, ¥677 million of dividends of surplus, and a decrease of ¥747 million in valuation difference on
available-for-sale securities.
(3) Explanation on Consolidated Financial Results Forecasts and Other Forecast Information
With regard to the consolidated financial results forecasts for the fiscal year ending December 31, 2018, we haverevised net sales and respective profit and income items from the previous forecast (released on August 8, 2018) inconsideration of the actual financial results for the nine months ended September 30, 2018, the current trends oforders received, and other factors. For matters related to the revisions to forecast figures, please refer to the Noticeon Revisions to the Consolidated Business Performance Forecast for the Fiscal Year ending December 31, 2018,
which was released today (November 12, 2018).
These financial results forecasts are calculated based on the exchange rates at ¥110 per U.S. dollar and ¥130 per
euro, which remain unchanged from the preceding quarterly report.

-3-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2017 As of September 30, 2018
AssetsCurrent assets
Cash and deposits

7,981

7,790

Notes and accounts receivable - trade25,11335,998Merchandise and finished goods

45,41046,559Work in process

6,728

6,684

Raw materials and supplies

1,267

1,216

Other

5,310

4,574

(60)

(125)

91,751

102,672

Buildings and structures, net

24,34325,029Land

50,77350,977

Other, net

20,476

20,876

Total property, plant and equipment

95,592

96,883

1,025

1,051

Investment securities

7,146

6,006

Other

5,990

5,040

Allowance for doubtful accounts

(158)

(146)

Total investments and other assets

12,978

10,901

109,596

108,836

201,348

211,508

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets

Total non-current assets
Total assets-4-(Millions of yen)
As of December 31, 2017 As of September 30, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade26,532

27,756

Electronically recorded obligations - operating
Short-term loans payable

14,14027,216

15,05935,120Current portion of long-term loans payable

8,004

7,671

Income taxes payable

894

365

Provision for bonuses

446

857

Provision for loss on construction contracts

391

Other

12,018―
11,468

Total current liabilities

89,64498,299Non-current liabilities
Long-term loans payable

24,354

26,038Deferred tax liabilities for land revaluation

5,780

5,780

Provision for directors’ retirement benefits

122

130

Net defined benefit liability
Asset retirement obligations

3,312
315

3,408
332

Other

6,902

6,078

Total non-current liabilities

40,787

41,769Total liabilities

130,432

140,069

Net assets
Shareholders’ equity
Capital stock

23,344

23,344

Capital surplus

13,453

13,452Retained earnings

16,51918,061

Treasury shares

(986)

(983)

52,33053,874

1,818

1,070

(16)

3

Revaluation reserve for land

12,67012,670Foreign currency translation adjustment

1,115

921

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Remeasurements of defined benefit plans

1,244

1,136

Total accumulated other comprehensive income

16,83315,80280

78

Non-controlling interests
Total net assets

1,671
70,916

1,684
71,439Total liabilities and net assets

201,348211,508

Subscription rights to shares-5-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
For the Nine Months Ended September 30, 2018
(Millions of yen)
Nine months ended
September 30, 2017

Nine months ended
September 30, 2018

Net sales

120,526

119,186

Cost of sales

84,52983,840Gross profit

35,99635,346

Selling, general and administrative expenses

31,36231,754

Operating income

4,633

3,591

Non-operating income
Interest income

10991

Dividend income

10790

Foreign exchange gains92―

Share of profit of entities accounted for using equity method

384―

Subsidy income

356

―

Other

574

688

1,624

870

Interest expenses

448

499

Foreign exchange losses―

50

Share of loss of entities accounted for using equity method

―

760

Other

363

385

Total non-operating expenses

811

1,696

5,446

2,765

Gain on sales of non-current assets

29

71

Gain on sales of investment securities―

52

Gain on step acquisitions―

16

Subsidy income

42―

Total extraordinary income

71

140

Loss on sales and retirement of non-current assets

128126

Impairment loss

2110

Loss on valuation of investment securities

30―

Penalty427―

Total extraordinary losses

607

136

Income before income taxes

4,910

2,769

Income taxes - current

1,522

984

Income taxes - deferred21(471)

Total income taxes

1,543

513

Profit

3,366

2,256

34

36

3,332

2,219

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent-6-Quarterly Consolidated Statements of Comprehensive Income
For the Nine Months Ended September 30, 2018
(Millions of yen)
Nine months ended
September 30, 2017

Nine months ended
September 30, 2018

3,366

2,256

Valuation difference on available-for-sale securities

251

(767)

Deferred gains or losses on hedges

(36)

19

Foreign currency translation adjustment

144

(46)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method

(45)

(108)

41(146)

Total other comprehensive income

354(1,050)

3,721

1,205

3,684

1,188

3616Profit
Other comprehensive incomeComprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

(3) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable(Notes to Material Changes in Shareholders’ Equity)
Not applicable-8-