August 7, 2019
ISEKI & CO., LTD.
Supplementary Information to Consolidated Financial Results(January 1, 2019 – June 30, 2019)
I. Consolidated results of operations for the six months ended June 30, 2019

(Billions of yen, %)2Q of
FY ending Difference
December (forecast31, 2019/actual)Forecast*

2Q of
FY ended
December 31,
2018

2Q of
FY ending
December 31,
2019

82.2

77.5

(4.7)

(5.7)

81.8

(4.3)

Domestic

63.9

59.9

(4.0)

(6.2)

64.8

(4.9)

Overseas

18.3

17.6

(0.7)

(3.9)

17.0

0.6

Gross profit

23.522.5(1.0)

(4.3)

23.7

(1.2)

Gross profit margin

28.6%

29.1%

0.5%

—

29.0%

0.1%

Selling, general andadministrative expenses

21.3

20.9(0.4)—

21.8(0.9)

Operating income

2.2

1.6(0.6)(25.5)

1.9(0.3)

Operating income ratio

2.7%

2.1%

(0.6)%—

2.3%(0.2)%

Balance of financialincome

(0.4)

(0.4)

0.0

—

(0.4)

0.0

Other non-operating
income0.0(0.4)(0.4)—

0.1(0.5)

1.8

0.8(1.0)(53.8)

1.6(0.8)

Ordinary income ratio

2.2%1.1%(1.1)%—

2.0%(0.9)%

Extraordinary income

0.1

0.10.0—0.00.1

Extraordinary losses

(0.1)

(0.1)

0.0

—

(0.1)

0.0

Income before income taxes

1.8

0.8

(1.0)

(57.3)

1.5

(0.7)

(0.2)

(0.1)

0.1

—

(0.1)

0.0

1.6

0.7

(0.9)

(59.6)

1.4(0.7)

Net sales

Ordinary income

Income taxes
Profit attributable to ownersof parent* The forecast released on February 13, 20191Year-on-year change
Amount%(Sales breakdown)(Billions of yen)

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

28.3
11.8
6.8
2.6

26.6
12.0
6.9
2.6(1.7)
0.2
0.1
0.0

2Q of FY
endingDecember31, 2019
Forecast*
30.1
12.4
7.1
2.8

49.5

48.1

(1.4)

52.4

(4.3)

3.3

1.3

(2.0)

1.5(0.2)

11.1

10.5

(0.6)

10.9(0.4)

63.9

59.9

(4.0)

64.8

(4.9)

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

5.6
6.0
0.9
2.0
1.1
15.6
1.3
1.4
18.3

6.4
5.9
0.1
0.9
2.1
15.4
1.2
1.0
17.6

0.8(0.1)
(0.8)
(1.1)
1.0(0.2)
(0.1)
(0.4)
(0.7)

6.0
5.4
0.1
1.2
2.1
14.8
1.3
0.9
17.0

0.4
0.5
0.0
(0.3)
0.0
0.6
(0.1)
0.1
0.6

Total net sales

82.2

77.5

(4.7)

81.8

(4.3)

2Q of
FY ended
December 31,
2018

2Q of
FY ending
December 31,
2019* The forecast released on February 13, 20192Year-on-yearchangeDifference(forecast/actual)

(3.5)
(0.4)
(0.2)
(0.2)

1) Year-on-year change(1) Net sales: ¥77.5 billion (down ¥4.7 billion (5.7%) year on year)
Sales in Japan decreased as a negative reaction to the construction of large-scale facilities in thesame period of the previous fiscal year and decreased sales of agricultural machinery.
Sales overseas decreased slightly overall due to local inventory adjustments in China and ASEAN
despite steady sales in North America and an increase in shipments to East Asia.
i) Sales in Japan: ¥59.9 billion (down ¥4.0 billion (6.2%) year on year)
Overall sales related to agricultural machinery decreased by ¥1.4 billion due to sales decreases intractors and rice transplanters, in spite of sales of combine harvesters that remained unchanged, whilesales of farming implements and parts continued to progress steadily.
Sales of construction of facilities decreased by ¥2.0 billion as a negative reaction to the construction oflarge-scale facilities in the same period of the previous fiscal year.
ii) Sales overseas: ¥17.6 billion (down ¥0.7 billion (3.9%) year on year)
Sales in North America increased by ¥0.8 billion due to favorable sales of new compact tractors.
Sales in Europe continued to progress steadily, although they remained unchanged from the previous
fiscal year due to the effect of currency exchange rates linked to the higher yen.
Sales in China decreased by ¥0.8 billion mainly due to decreased shipments of semi-finished ricetransplanters accompanying local inventory adjustments.
Sales in ASEAN decreased by ¥1.1 billion due to decreased shipments of tractors to Thailand
accompanying local inventory adjustments and a decrease in Indonesian government tendering.
Sales in other regions increased by ¥1.0 billion mainly due to increased deliveries to East Asia.
(2) Revenue: a decrease in gross profit due to decreased revenue was partially offset by an
improvement in the gross profit margin due to the absence of special factors that had beenpresent in the previous fiscal year and a reduction in selling, general and administrative
expenses.
i) Operating income: ¥1.6 billion (down ¥0.6 billion year on year)ii) Ordinary income: ¥0.8 billion (down ¥1.0 billion year on year)iii) Profit: ¥0.7 billion (down ¥0.9 billion year on year)
Operating income decreased by ¥0.6 billion primarily as a result of a decrease in gross profit due todecreased revenue in spite of an improvement in the gross profit margin due to the absence of special
factors* that had been present in the previous fiscal year and a reduction in selling, general andadministrative expenses.
Ordinary income decreased by ¥1.0 billion mainly due to the recording of the share of loss of entities
accounted for using equity method.
Profit decreased by ¥0.9 billion.
* Temporary factors such as retirement benefit expenses upon the merger of subsidiaries and theunprofitable construction of facilities
2) Comparison with the forecast(1) Net sales: ¥4.3 billion lower than the forecast (Japan: ¥(4.9) billion, overseas: ¥0.6 billion)i) Agricultural machinery sales in Japan were ¥4.3 billion lower than the forecast, as the tractor sales fell
short of the forecast. Overall sales in Japan were ¥4.9 billion lower than the forecast.
ii) Sales overseas were ¥0.6 billion higher than the forecast due to the steady progress of sales in North
America and Europe.
(2) Revenue: in operating income, a decrease in gross profit due to the failure to reach the sales
forecast was partially offset by a reduction in selling, general and administrative expenses.
3Ordinary income and profit were affected by the recording of the share of loss of entities
accounted for using equity method, due to weakness in the Chinese market.
i) Operating income: ¥0.3 billion lower than the forecastii) Ordinary income: ¥0.8 billion lower than the forecastiii) Profit: ¥0.7 billion lower than the forecast
Operating income was ¥0.3 billion lower than the forecast, as a result of a decrease in gross profit due
to the failure to reach the sales forecast, and a reduction in selling, general and administrative
expenses.
Ordinary income was ¥0.8 billion lower than the forecast, as a result of the recording of the share ofloss of entities accounted for using equity method.
Profit was ¥0.7 billion lower than the forecast.

4II. Consolidated financial results forecast for the fiscal year ending December 31, 2019
Overall sales and revenue in the three months ended June 30, 2019 failed to reach the forecast due to lower thanforecast sales in Japan, despite sales overseas surpassing the forecast. Looking to the future, demand in advanceof the consumption tax increase, which was subdued throughout the second quarter, is now becoming more
apparent, and we aim to stage a recovery focused on large-scale agricultural machinery. Overseas, we lookforward to continued growth in the North American market, as well as the positive impact of introducing newproducts to other regions. In terms of revenue, we will strive to secure increased revenue from continued
reductions in selling, general and administrative expenses. Accordingly, we have not revised the consolidated
financial results forecast for the fiscal year ending December 31, 2019 announced on February 13, 2019.
[Consolidated financial results forecast for the fiscal year ending December 31, 2019](January 1, 2019 through December 31, 2019)(Billions of yen, %)FY ended
December 31,
2018

FY ending
December 31,2019
Forecast

Year-on-year change

156.0

164.0

Amount8.0%
5.2

Operating income

3.2

4.0

0.8

25.8

Ordinary income
Profit attributable toowners of parent

2.6

2.60.0(1.1)

1.1

1.60.5

46.7

Net sales* The assumed foreign exchange rates for the fiscal year: ¥108 per U.S. dollar (continued)¥125 per euro (continued)* Explanation on the proper use of financial results forecasts
The financial results forecasts and other forward-looking statements contained in this report are basedon information available to the Company on the date of this report’s release and certain preconditions
that the Company deems to be reasonable. Actual results etc. may differ significantly from theforecasts, however, as a result of various factors.

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