May 14, 2014
Stock Exchange Listings:Tokyo

Name of Listed Company:ISEKI & CO., LTD.
6310
Company Code:(URL http://www.iseki.co.jp)
Representative: Title President
Enquiries:
Title General Manager ofCorporate Planning Department
Date of the Regular Meeting of Shareholders:
Scheduled Date to Commence Dividend Payment
Date of Submission of the Securities Report:
Supplementary Explanatory Material:
Information Meeting:Name Noriyuki Kimura
Name Kazuma Takahashi
Telephone: +81 3 5604 7671
June 25, 2014
June 26, 2014
June 26, 2014
Prepared
Scheduled (for institutional investors
and analysts)

Summary Announcement of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2014 (Japanese GAAP)
I. Financial Results for the Fiscal Year Ended March 31, 2014 (April 1, 2013－March 31, 2014)
A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per ShareNon-diluted
Fully Diluted
Return on Equity

Year Ended
March 31, 2014
169,129
7,371
8,285
6,447

%
8.6
43.3
53.0
62.0

Year Ended
March 31, 2013
155,697
5,144
5,414
3,979

%
7.2
21.6
38.9
45.9

(yen)

(%)

28.06
—
10.0

17.32
—
6.7

Return on Total Assets
(%)
4.4
3.1
Operating Income to Net Sales (%)
4.4
3.3
Note: Comprehensive income
Year ended March 31, 2014:¥7,772 mil. (55.1 %)Year ended March 31, 2013: ¥5,012 mil. (40.1%)
Reference: Investment gain (loss) by equity method
Year ended March 31, 2014: ¥(52) mil.
Year ended March 31, 2013: ¥(96) mil.
B. Financial Position(Rounded down to millions of yen)

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio (%)
Net Assets per Share(yen)
Reference: Shareholders’ equity
Year ended March 31, 2014: ¥67,106 mil.

As of March 31, 2014

As of March 31, 2013

197,628
68,73434.0
292.11

179,028
62,92734.3
266.94

Year ended March 31, 2013: ¥61,329 mil.

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

Net Cash Provided by (used in) Operating Activities

Year Ended
March 31, 2014
7,007

Year Ended
March 31, 2013
8,531

Net Cash Provided by (used in) Investment Activities(10,038)(6,342)Net Cash Provided by (used in) Financing Activities

1,521

(647)

Cash and Cash Equivalents at End of Period

8,169

9,040

II. Dividends
Year Ended
March 31, 2013

Year Ended
March 31, 2014

Year Ending
March 31, 2015
Forecast

Dividend per share (yen)End of fiscal year
AnnualAnnual cash dividend (million yen)

3.00
3.00
689

4.00
4.00
918

3.00 to 4.00
3.00 to 4.00

Payout ratio (%, consolidated)

17.3

14.3

—

Ratio of dividend to net assets(%, consolidated)

1.2

1.4

III. Forecast for the Fiscal Year Ending March 31, 2015 (April 1, 2014－March 31, 2015)(Rounded down to millions of yen, % indicates changes from the previous same period)

Interim%
Annual%Net Sales
83,0000.6
165,000(2.4)
Operating Income
2,800(32.8)
5,500(25.4)
Ordinary Income
2,600(46.9)
5,100(38.4)Net Income
1,300(59.0)
2,600(59.7)Net Income per Share (yen)
11.32
5.66
* Notes
A Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None
B Change in accounting policy, change of estimation in accounting and modified restatement
1) Change in accounting policy which accompanies revision of accounting standards: Yes
2) Change in accounting policy other than No.1):
None3) Change of estimation in accounting:None4) Modified restatement:
None
Note: For details, please refer to page 25 of the attached document, “Change in accounting policy.”
C Outstanding shares (common shares)
1) Outstanding shares (including treasury shares )As of March 31, 2014
229,849,936 shares
As of March 31, 2013
229,849,936 shares
2) Outstanding treasury shares
As of March 31, 2014
117,254 shares
As of March 31, 2013
101,954 shares
3) Average number of shares
As of March 31, 2014
229,740,557 shares
As of March 31, 2013
229,755,478 share
Note: Please refer to page 33 “Per Share Information” as to the number of shares which provides a base forcalculating net income per share (consolidated).

(Reference) Non-consolidated Financial Results
Financial Results for the Fiscal Year Ended March 31, 2014 (April 1, 2013－March 31, 2014)
A. Results of operations(Rounded down to millions of yen, % indicates changes from previous period)
Year EndedYear Ended
March 31, 2014%
March 31, 2013
Net Sales
106,459
15.8
91,945
Operating Income
1,975
200.9
656
Ordinary Income
4,580
110.3
2,178
Net Income
3,834
95.1
1,965
Net Income per Share(yen)
Non-diluted
16.69
8.56
Fully Diluted
—
—

%
5.3
49.8
7.1
6.3

B. Financial Position(Rounded down to millions of yen)
Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio (%)
Net Assets per Share(yen)
Reference: Shareholders’ Equity
Year ended March 31, 2014: ¥58,560 mil.

As of March 31, 2014

As of March 31, 2013

132,693
58,56044.1
254.91

124,755
55,00444.1
239.41

Year ended March 31, 2013: ¥55,004 mil.

*Statement regarding state of implementation of review procedure: This summary of financial results is exempt fromaudit procedures pursuant to the Financial Instruments and Exchange Act. At the time of disclosure, audit
procedures for consolidated financial statements and non-consolidated financial statements pursuant to the
Financial Instruments and Exchange Act had not been completed.
*Cautionary statement: The forecast for operating results has been determined based on information presently
available, as well as on the 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“Management Performance” on page 2 of the supplementary material for the assumptions underlying theforecasts and precautions when using the forecasts.

 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 2014 and 2015 ..........................6(4) Risks Which Could Affect Our Business ..........................................................................................6
2. The ISEKI Group ...................................................................................................................................8
3. ISEKI’s Management Policies..............................................................................................................10(1) ISEKI’s Basic Management Principles ...........................................................................................10(2) Long-term Management Strategies and Issues to be Addressed .....................................................10
4. Consolidated Financial Statements.......................................................................................................12(1) Consolidated Balance Sheet............................................................................................................12(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........14(3) Consolidated Statement of Changes in Equity ................................................................................17(4) Consolidated Statement of Cash Flows ..........................................................................................19(5) Notes to the Consolidated Financial Statements .............................................................................21(Notes Regarding the Going Concern Assumption) .........................................................................21(Important Basic Items for Preparing Consolidated Financial Statements) ......................................21(Change in accounting policy) ..........................................................................................................25(Consolidated Balance Sheet Information) .......................................................................................26(Consolidated Statement of Income Information) ............................................................................27(Consolidated Statement of Changes in Equity Information) ...........................................................28(Consolidated Statement of Cash Flows Information)......................................................................29(Segment Information)......................................................................................................................30(Per Share Information) ....................................................................................................................33(Significant Subsequent Events) .......................................................................................................33
5. Non-consolidated Financial Statements ...............................................................................................34(1) Non-consolidated Balance Sheet ....................................................................................................34(2) Non-consolidated Statement of Income ..........................................................................................37(3) Non-consolidated Statement of Changes in Equity ........................................................................38(4) Notes to the Non-consolidated Financial Statements......................................................................40(Notes Regarding the Going Concern Assumption)
6. Others ...................................................................................................................................................40(1) Production, Orders & Sales ............................................................................................................40(2) Change in Officers ..........................................................................................................................42-1-

1. Management Performance(1) Analysis of Management Performance
During the fiscal year under review, Japan’s economy as a whole was on a recovery track partly due to a last-minutesurge in demand before the consumption tax rate hike in April 2014, as the recovery of stock prices and the weaker
yen come to stay despite misgivings about a downside risk of the overseas economy. On the other hand, it is thought
to take some time before the world economy fully recovers, as exemplified by the move of the U.S. to reduce
quantitative easing measures, financial instability in the European region and uncertainty over the future of theeconomy in China and other emerging countries.
Under such circumstances, the ISEKI Group strove to increase sales volume in Japan, launching new models andenhancing customer responses, while it endeavored to expand sales overseas by introducing new models in China
and rolling out a new OEM line-up in North America. As a result, the Group’s business performance can besummarized as follows.

(Consolidated business performance of the year under review)
In the fiscal year ended March 31, 2014, net sales increased ¥13,431 million from a year earlier to ¥169,129 million(up 8.6% year on year). Domestic sales increased ¥9,916 million from a year earlier to ¥142,974 million (up 7.5%
year on year), and overseas sales increased ¥3,515 million to ¥26,154 million (up 15.5% year on year).
Operating income increased ¥2,226 million from a year earlier to ¥7,371 million (up 43.3% year on year) mainly
because the growth in gross income resulting from increased sales surpassed the rise in selling, general andadministrative expenses. Ordinary income increased ¥2,871 million from a year earlier to ¥8,285 million (up 53.0%
year on year). Net income increased ¥2,467 million from a year earlier to ¥6,447 million (up 62.0% year on year).

(Non-consolidated business performance of the year under review)
In the fiscal year under review, net sales totaled ¥106,459 million (up 15.8% year on year), operating income was¥1,975 million (up 200.9% year on year), and ordinary income amounted to ¥4,580 million (up 110.3% year on year).
The Company recorded a net income of ¥3,834 million (up 95.1% year on year).

Business performance by segment is as follows.

1) Agriculture-related business
Sales of agricultural machinery and farming implements in Japan increased thanks to active demand against a
backdrop of last-minute demand in preparation for the hike in the consumption tax rate in April 2014, in addition to
the improvement of income of farmers as the government’s measures to stabilize management income have been
established and to the increase in the amount of agriculture-related budget. Overseas, overall sales increased due tothe contributions of new models released for North America.

Sales by product are as follows.

-2-

(Domestic)
Sales of cultivating & mowing machinery (tractors, high-clearance multipurpose vehicles, etc.) amounted to ¥33,322
million (up 14.8% year on year), sales of planting machinery (rice transplanters and vegetable transplanters) totaled¥10,887 million (down 3.0% year on year), sales of harvesting and processing machinery (combine harvesters, etc.)
were ¥28,259 million (up 5.3% year on year) and sales of spare parts and farming implements reached ¥36,048
million (up 12.4% year on year), while sales of other agriculture-related business (including construction of facilities,etc.) increased to ¥34,422 million (up 1.9% year on year).

(Overseas)
Sales of cultivating & mowing machinery (tractors, etc.) increased to ¥16,641 million (up 31.5% year on year), salesof planting machinery (rice transplanters, etc.) amounted to ¥6,732 million (up 7.3% year on year), sales of
harvesting and processing machinery (combine harvesters, etc.) decreased to ¥1,022 million (down 35.4% year onyear), and sales of spare parts and farming implements totaled ¥1,308 million (up 2.0% year on year), while sales ofother agriculture-related business were ¥448 million (down 46.6% year on year).

As a result, sales in the agriculture-related business segment totaled ¥169,094 million (up 8.7% year on year).

2) Other business
The Company develops, sells, and operates computer software in the “other business” segment. Sales in the otherbusiness segment amounted to ¥34 million (down 74.1% year on year).

Liquidation of System Equipment Co., Ltd. (a consolidated subsidiary), which had engaged in other business, wascompleted as of September 26, 2013.

Forecast for the Next Consolidated Fiscal Year
In Japan, while there are expectations for reflation, backed by economic measures, financial policies and theimprovement in the export environment thanks to the correction of the strong yen, there are misgivings about
worsening of the economy after the consumption tax rate increase in April 2014. Overseas, the overall world
economy remains sluggish despite a recovery trend in the U.S. economy, since the economic recovery in Europe andChina is slower than expected. Against this backdrop, the management environment is still harsh and uncertainty
remains.
Initiatives to further develop Japanese agriculture are expected to be implemented, as exemplified by the plan
made for a large budget concerning agriculture, while there are misgivings about the impact on the domestic
agriculture resulting from the Trans-Pacific Partnership Agreement (TPP) negotiations, which are said to be coming
to a conclusion. On the other hand, there is concern about a decline in the wake of the last-minute demand rise prior
to the consumption tax rate hike in April 2014, and domestic demand for agricultural machinery is assumed todecrease in the fiscal year ending March 2015 under such circumstances. However, living up to the Group’s slogan“Supporting team for the full of dreams farming industry” we will strive to increase sales by enhancing ourcapabilities to support customers, through which we provide high-quality marketing services and make proposals
that match the agriculture management of customers, in addition to conducting “sales of low-cost and energy-saving-3-

agricultural machinery.
Overseas, we will expand markets by launching new strategic products that match the needs of customers in theEuropean and U.S. markets. In the Chinese market, we will push forward with sales expansion by the strategic
release of products into its growing agriculture machinery market which is government subsidized, though
Iseki–Changzhou Mfg. Co., Ltd. will be excluded from consolidation as it will become an entity accounted for using
the equity method through business integration. In the Southeast Asian market, which is expected to grow in the
future, we will strive to establish the ISEKI brand.
In terms of profitability, we expect income to decrease from the previous year due to a decrease in gross income,mainly resulting from decreased revenue and the occurrence of initial expenses attendant upon the start of operationof an Indonesian production subsidiary, and to the absence of foreign exchange gains that occurred in the previous
fiscal year, despite the effect of the weaker yen, etc.
(2) Analysis of Financial Position
Total assets at the end of the consolidated fiscal year increased ¥18,599 million year on year, to ¥197,628 million.
Looking at the breakdown, current assets increased ¥11,413 million year on year and non-current assets increased¥7,186 million from a year earlier. The changes mainly resulted from a ¥11,142 million increase in notes andaccounts receivable-trade and a ¥5,307 million increase in property, plant and equipment. Total liabilities increased¥12,792 million year on year to ¥128,893 million, primarily due to an increase in notes and accounts payable-tradeof ¥4,926 million, an increase in short-term and long-term loans payable of ¥2,822 million, a decline in provision for
retirement benefits and an increase in net defined benefit liability of ¥1,206 million. Net assets increased ¥5,807
million year on year, to ¥68,734 million. The increase is primarily due to an increase in retained earnings as a resultof posting net income of ¥6,447 million. The equity ratio was 34.0%.

(Cash flows from operating activities)

Cash flows from operating activities came to a net cash inflow of ¥7,007 million (down ¥1,523 million year onyear), comprised principally of income before income taxes of ¥7,926 million, depreciation of ¥5,887 million
and an increase in notes and accounts receivable-trade of ¥10,729 million.

(Cash flows from investing activities)
Cash flows from investing activities resulted in a net cash outflow of ¥10,038 million (up ¥3,696 million year onyear), comprised principally of capital investment expenditures of ¥9,931 million.

(Cash flows from financing activities)
Cash flows from financing activities amounted to a net cash inflow of ¥1,521 million (up ¥2,168 million year onyear), due primarily to an increase in interest-bearing liabilities.

-4-

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

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

2011

2012

2013

2014

Equity ratio

(%)

31.4

32.9

34.3

34.0

Market-based equity ratio

(%)

25.9

28.1

41.541444
41.5

41.541444
31.7(times)

6.2

4.9

4.9

6.3

(times)

7.9

10.7

11.8

9.3

Cash flow/Interest-bearing liabilities ratio(years)Interest coverage ratio• 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.
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 shares) at the end of the period.
3. The operating cash flow uses the Cash flows from Operating Activities as per the Consolidated
Statement of Cash Flows. Interest-bearing liabilities use all the loans payable and bonds payable asrecorded in the Consolidated Balance Sheet. The Interest payments use the interest expenses paid
as recorded in the Consolidated Statement of Cash Flows.

-5-(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2014 and 2015
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 continue making and increase our dividend distribution, taking into
consideration, not just consolidated financial results, but our Group’s financial position and future businessdevelopments as well as changes in our managerial environment.
With respect to dividends for the fiscal year ended March 31, 2014, we will pay a year-end dividend of 4 yen per
share.
For the fiscal year ending March 31, 2015, we will pay a year-end dividend of 3 to 4 yen per share.

(4) Risks Which Could Affect Our Business
Latent risks and uncertainties which could affect our future financial performance are exemplified as below. We
recognize the possibility of the occurrence of such risks and uncertainties, and will strive to avoid their occurrence
and take proper measures should they occur:
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) Price Hike of Raw Materials, Difficulty in Procurement, and Confusion in the Supply Chain
As we procure raw materials and parts from numerous suppliers, their prices suddenly increasing more rapidly
than expected and a prolonged tightening of supplies may negatively affect our business performance.
In addition, a fall in production activities due to restrictions on electricity supplies, and disruptions in the
supply chain may harm the ISEKI Group’s business performance and financial position.
4) 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.
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) Serious Defects in Products and Services
The occurrence of serious defects in our products or services may negatively affect our financial performance.
7) Stock Market Fluctuation
As we hold securities, stock price declines may harm our business performance and financial position.
8) 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.
9) Risks Derived from International BusinessAs we promote overseas business development, unexpected changes in tax and legal systems or politicalunrest of any particular country may unfavorably affect our financial performance when we engage ininternational business activities.
In addition, as we focus on expanding business to the Asian region, mainly a difficulty in ensuring humanresources, immature technological levels and unstable labor-management relationships in the region may
hinder the ISEKI Group’s business development.
10) Risk of Legal Violation
We are making group-wide efforts to accomplish complete legal compliance and drive home the code of
ethical behavior by establishing the “ISEKI Group Code of Ethical Behavior” and preparing an internal
control system. In spite of such efforts, if any of our directors and/or employees should conduct themselves in-6-any way that violates laws and regulations, there is a possibility that the business activities of the Group will
be restrained and the business performance will be deteriorated.
11) Risk of Natural Disasters and Accidents
Natural disasters such as earthquakes, typhoons, flood or unexpected accidents may occur, which may harm
our financial performance.
12) Business Alliances, Joint Ventures and Strategic Investment with Other Companies
We will possibly form business alliances and joint ventures and carry out strategic investment with othercompanies as necessary. We believe that these measures are an effective means for the effective utilization of
the management resources of both parties and for the timely development, production and sales of products.
However, should a conflict of interests occur between the parties concerned in business alliances or joint
ventures due to financial position or other reasons, we would not be able to maintain the alliances. With
regard to strategic investment, including acquisitions, there is a possibility that the expected results and/or
effects will not be obtained in the integration of business, technologies, products and human resources, or that
more time and expenses than expected will be required. Accordingly, the success or failure of these measures
may seriously affect the ISEKI Group’s business and may harm our business performance and financial
position.
13) 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 ISEKI Group.
There is a possibility that a hike in interest rate may harm our financial performance.

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.

-7-

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.
The position of the business in the ISEKI Group is stated below.
(Agriculture-related Business)
The Company primarily handles the development and design of agricultural machinery.
Iseki-Matsuyama Mfg. Co., Ltd., Iseki-Kumamoto Mfg. Co., Ltd. and nine other companies 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 Iseki–Changzhou Mfg. Co., Ltd and Dongfeng Iseki Agricultural Machinery Co., Ltd.
Dongfeng Iseki Agricultural Machinery (Hubei) Co., Ltd. was renamed Dongfeng Iseki Agricultural MachineryCo., Ltd. in the current fiscal year.
(Other Business)
System Equipment Co., Ltd. is mainly engaged in development of computer software.
Liquidation of System Equipment Co., Ltd. was completed as of September 26, 2013.

-8-

Overseas Users &Customers

Domestic Users & Customers( A g r i c u l t u r e - r e l a t e d

B u s i n e s s )

Sales

Sales

Consolidated Subsidiaries:

Non-consolidated Subsidiary
N.V. ISEKI EUROPE S.A.
(Belgium)

Iseki-Hokkaido Co., Ltd.
Iseki-Tohoku Co., Ltd.
and 11 other companies
Transport & Service

Sales

Products& Parts

Products Consolidated Subsidiary:& Parts Iseki BUTSURYU Co., Ltd. and 1 other company
Transport & Service

ISEKI
Products & Parts

Products & Parts

Consolidated Subsidiary：

Consolidated Subsidiaries:

Iseki - Changzhou Mfg. Co., Ltd.

Iseki-Matsuyama Mfg. Co., Ltd.

(China)Iseki-Kumamoto Mfg. Co., Ltd.

Equity Method Affiliate:

PT. ISEKI INDONESIA

Dongfeng Iseki Agricultural Machinery

and 6 other companies

Co., Ltd. (China)-9-3. ISEKI’s Management Policies(1) ISEKI’s Basic Management Principles
Since it was established in 1926, ISEKI Group has been contributing to the modernization of Japan’s agriculturalindustry as a all-round 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.
The ISEKI Group will continue to operate under a basic business philosophy of “providing products that satisfy
our consumers” so that the Group can contribute to agriculture, both in Japan and throughout the world.
Our highest priority objectives are “to enhance product capability, to improve quality, to accelerate cost-cutting
measures and to strengthen our sales service capabilities.” We are aiming for a strong corporate culture that canmaintain a stable operating performance and continued payment of stable dividends to shareholders and willcontinue in our efforts to reform our profit structure.

(2) Long-term Management Strategies and Issues to be Addressed

To realize future development by establishing a stable customer base in Japan and speeding up global businessdevelopment in a rapidly changing business environment, we will more quickly focus on the following
challenges with all the strength of the ISEKI Group.

1) To establish a stable customer base in Japan
With competition in the market getting keener, we will endeavor to stably ensure a domestic sales share of 20% by
focusing on expansion of our tractor sales share in particular, with a view to establishing a stable customer base. We
will do our utmost to expand our sales share by continuing to raise customer satisfaction levels. We will do this byproviding high-quality and low-cost products and services that support energy conservation and low-cost agriculture
from the viewpoint of customers, while systematically focusing on the development of new technologies andcutting-edge technologies and coping with the diversification of cultivation systems and forms of agricultural
management.
Also, we will strive to expand domestic sales by further improving customer satisfaction. We will do this by not only
more speedily focusing on the development of products responding to major changes in domestic agricultural
policies, including the change in the rice policy, but also enhancing our capability to support customers throughproviding high-quality marketing services and proposals that match the agricultural management of customers.

2) To fully develop global strategies
We will strive to realize an overseas sales ratio of 20% at an early stage by accelerating overseas development, withan eye on Southeast Asia, where mechanization is remarkably advancing, in addition to the existing three markets ofEurope, North America and China.
With regard to North America, Europe and other markets, we will further expand the markets by launching new- 10 -

strategic products that satisfy customer needs.
In addition, we will work on developing and deploying new products for Dongfeng Iseki Agricultural MachineryCo., Ltd., which will undergo business integration, and establishing a supply chain, etc. in the Chinese market, where
the mechanization of agriculture is rapidly advancing. In the Southeast Asian market, which is expected to grow in
the future, we will endeavor to establish the ISEKI brand by realizing stable operation at PT. ISEKI INDONESIA,
which has started production, at an early stage and reinforcing the sales capability of ISEKI SALES (THAILAND)
CO., LTD., which has begun making sales.
In addition, we will focus on expanding our business development to meet diversifying market needs byenhancing our development, production, sales and service structures from a locally oriented standpoint.

3) To enhance product capability and promote cost structure reform
Our first priority lies with products that garner a high reputation among our customers. Hence, our sales,development, procurement and manufacturing operations are working together to improve design quality at thedevelopment process and manufacturing quality through the reform of the production process and to establish aframework of quality assurance by grasping the quality required by the market and thoroughly conducting quality
tests, with a view to improving product quality.
As demand for low-priced products is growing both in Japan and overseas, we take strong measures such as cost
structure reform, comprised of “low-cost design”, “low-cost production” and “low-cost procurement”, with each of
the divisions of development, manufacturing and purchasing working together.
The Company underwent on-site inspections by the Fair Trade Commission (FTC) in November 2013 on
suspicion of possible violation of the Antimonopoly Act regarding bidding for facility construction work. We fully
cooperate in the inspections of the FTC and will strive to more thoroughly comply with laws and ordinances andenhance internal control.

- 11 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(millions of yen)
FY2013(as of Mar. 31, 2013)

FY2014(as of Mar. 31, 2014)

Cash and deposits

9,285

8,228

Notes and accounts receivable-trade30,45541,59819—

Merchandise and finished goods

37,24236,889Work in process

3,344

4,882

Raw materials and supplies

2,090

1,548

Deferred tax assets

1,140

1,794

Other

2,837

2,944

Allowance for doubtful accounts

(51)

(107)

86,365

97,779Buildings and structures, net

14,991

16,602

Machinery, equipment and vehicles, net

6,944

7,041

Tools, furniture and fixtures, net

1,903

2,550

Land

50,47151,015

Leased assets, net

6,010

7,311

Construction in progress

1,507

2,611

16

19

81,84487,152

965

1,006

6,539

7,269

Long-term loans receivable

124

106

Net defined benefit asset—

288

Deferred tax assets

645

1,374

Other

2,922

3,116

Allowance for doubtful accounts

(380)

(464)

Total investments and other assets

9,852

11,69092,662

99,848179,028

197,628

AssetsCurrent Assets:

Securities

Total Current Assets
Non-current Assets:
Property, plant and equipment

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

Total Non-current Assets
Total Assets- 12 -

FY2013(as of Mar. 31, 2013)(millions of yen)
FY2014(as of Mar. 31, 2014)

Notes and accounts payable-trade42,60947,536

Short-term loans payable

15,19920,132Current portion of bonds

100—

Current portion of long-term loans payable

5,984

6,387

Lease obligations

1,713

2,087

Liabilities
Current Liabilities:

Accrued consumption taxes

448

354

Income taxes payable

1,108

1,788

Deferred tax liabilities

0

—

4,616

5,084

Provision for bonuses

303

350

Provision for loss on construction contracts

—

33

Other

4,518

6,161

Total Current Liabilities

76,602

89,916

Non-current Liabilities:
Long-term loans payable

20,382

17,870

4,755

5,730

639

250

Deferred tax liabilities for land revaluation

6,644

6,644

Provision for retirement benefits

5,453

—

Net defined benefit liability

—

6,660

Provision for directors’ retirement benefits

125

126

Asset retirement obligations

262

264

Accrued expenses

Lease obligations
Deferred tax liabilities

Other

1,234

1,429

Total Non-current Liabilities

39,49838,977116,101

128,893

Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

11,522

17,266

Treasury shares

(25)

(30)

48,29654,034928

1,338

Total Liabilities
Net Assets
Shareholders’ equity

Total Shareholders’ Equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land

11,816

11,831

Foreign currency translation adjustment

288

1,170

Remeasurements of defined benefit plans—(1,269)13,033

13,072

1,598

1,628

Total accumulated other comprehensive income
Minority interests
Total Net Assets
Total Liabilities and Net Assets- 13 -

62,927

68,734179,028

197,628

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(millions of yen)
FY2013(Apr. 1, 2012Mar. 31, 2013)

FY2014(Apr. 1, 2013Mar. 31, 2014)

Net sales

155,697

169,129

Cost of sales

107,537

116,412Gross profit

48,15952,716

Selling, general and administrative expenses

43,01445,345

Operating income

5,144

7,371

Interest income

178

192

Dividend income

142

147

Foreign exchange gains

709

1,268

Subsidies received

103

80

Rent income

158

172

Gain on sales of scraps

110

170

Other

404

564

1,806

2,596

Interest expenses

728

758

Sales discounts

95

105

Loss on abandonment of inventories

343

410

Other

368

407

1,536

1,682

5,414

8,285

Gain on sales of non-current assets

22

30

Compensation income

211

45

Insurance income

168

—

1

32

404

107

Loss on sales and retirement of non-current assets

177

355

Impairment loss

21

86

Loss on disaster

90

—

Other

37

24

Total extraordinary losses

327

467

Income before income taxes

5,491

7,926

Income taxes-current

1,507

2,756

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Gain on sale of investment securities
Total extraordinary income
Extraordinary losses- 14 -

FY2013(Apr. 1, 2012Mar. 31, 2013)

FY2014(Apr. 1, 2013Mar. 31, 2014)

Income taxes-deferred(21)(1,297)

Total income taxes

1,486

1,459

Income before minority interests

4,004

6,466

24

19

3,979

6,447

Minority interests in income
Net income- 15 -

Consolidated Statement of Comprehensive Income(millions of yen)
FY2013(Apr. 1, 2012Mar. 31, 2013)
Income before minority interests

FY2014(Apr. 1, 2013Mar. 31, 2014)

4,004

6,466

Valuation difference on available-for-sale securities

666

405

Deferred gains or losses on hedges(3)—

Foreign currency translation adjustment

312

836

32

63

1,008

1,305

5,012

7,772

Comprehensive income attributable to owners of parent

4,977

7,740

Comprehensive income attributable to minority interests

34

32

Other comprehensive income

Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)- 16 -

(3) Consolidated Statement of Changes in Equity
FY2013 (Apr. 1, 2012-Mar. 31, 2013)(millions of yen)
Shareholders’ Equity
CapitalSurplusCapital Stock
Balance at the beginning of period

23,344

Total
Treasury Shares Shareholders’EquityRetained
Earnings

13,454

7,887

(22)

44,664

Changes of items during theperiodDividends of surplus

(344)

(344)

Net income

3,979

3,979

Purchase of treasury shares

(2)

(2)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

—

—

3,634

(2)

3,631

23,344

13,454

11,522(25)

48,296

Minority
Interests

Total Net
Assets

1,490

58,189

Accumulated Other Comprehensive Income
Valuation
Total
Foreign Remeasu
Differen Deferred Revaluat Currency rements Accumul
ce on
ated
ion Translatiof
Availabl gains or
Otherlosses on Reserveondefinede-for-sal hedges for Land Adjustm benefit Compreh
eensiveent
plans Income
SecuritiesBalance at the beginning of period

265

311,816(51)—

12,034

Changes of items during theperiodDividends of surplus(344)

Net income

3,979

Purchase of treasury shares(2)

Net changes of items other thanshareholders’ equity

662

(3)

—

339

—

998

107

1,106

Total changes of items during theperiod

662

(3)

—

339

—

998

107

4,738

Balance at the end of period

928—

11,816288—

13,033

1,598

62,927- 17 -

FY2014 (Apr. 1, 2013-Mar. 31, 2014)(millions of yen)
Shareholders’ Equity
Capital Stock
Balance at the beginning of period

23,344

CapitalSurplus

Total
Treasury Shares Shareholders’EquityRetained
Earnings

13,454

11,522(25)

48,296

Changes of items during theperiodDividends of surplus

(689)

(689)

Net income

6,447

6,447

Purchase of treasury shares(4)

Reversal of revaluation reserve
for land

(14)

(4)
(14)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

—

—

5,743

(4)

5,738

23,344

13,454

17,266(30)

54,034

Minority
Interests

Total Net
Assets

1,598

62,927

Accumulated Other Comprehensive Income
Valuation
Total
Foreign Remeasu Accumul
DifferenDeferred Revaluat Currency rements
ce on gains orated
ion Translatiof
Availabl
Otherondefined Compreh
e-for-sal losses on Reserve
hedges for Land Adjustm benefiteensiveent
plans
Securiti
Incomees
Balance at the beginning of period

928—

11,816288—

13,033

Changes of items during theperiodDividends of surplus(689)

Net income

6,447

Purchase of treasury shares(4)

Reversal of revaluation reserve
for land(14)

Net changes of items other thanshareholders’ equity

410

—

14

882 (1,269)

38

29

68

Total changes of items during theperiod410—

14882 (1,269)

38

29

5,807

1,338

—

11,831

1,170 (1,269)

13,072

1,628

68,734

Balance at the end of period- 18 -

(4) Consolidated Statement of Cash Flows(millions of yen)
FY2013(Apr. 1, 2012Mar. 31, 2013)

FY2014(Apr. 1, 2013Mar. 31, 2014)

Cash flows from Operating Activities:
Income before income taxes

5,491

7,926

Depreciation

5,535

5,887

Impairment loss

21

86

Amortization of goodwill

10

Increase (decrease) in provision for retirement benefits(31)(5,453)

Increase (decrease) in net defined benefit liability

—

4,716

Loss (gain) on sales of investment securities

(0)

(32)

Interest and dividend income

(320)

(339)

Interest expenses

728

758

Foreign exchange losses (gains)

(214)

(237)

intangible assets

154

324

Compensation income

(211)

(45)

Insurance income

(168)

—

(1,752)(10,729)200

238(1,057)

4,573

Other

536

1,617

Subtotal

8,912

9,292

Interest and dividends income received

317

343

Interest expenses paid

(723)

(753)

Proceeds from compensation

199

56

Proceeds from insurance income

168—(1,309)(2,084)

966

152

8,531

7,007

Purchase of securities

(19)

—

Proceeds from sales of securities

19

19(6,215)(9,931)

intangible assets

103

205

Purchase of investment securities

(377)

(154)

12

67

Loss (gain) on sales of property, plant and equipment andDecrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from Investing Activities:

Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andProceeds from sales of investment securities- 19 -

FY2013(Apr. 1, 2012Mar. 31, 2013)

FY2014(Apr. 1, 2013Mar. 31, 2014)

Decrease (increase) in loans receivable29

21

Decrease (increase) in time deposits

(145)

185

associates

—

(322)

Other

249

(129)

(6,342)(10,038)

Net increase (decrease) in short-term loans payable(2,018)4,223

Proceeds from long-term loans payable

10,320

4,360

Repayments of long-term loans payable(8,753)(6,469)—(100)

Proceeds from sales and leasebacks

1,863

2,119

Repayments of lease obligations(1,779)(1,912)

Purchase of treasury shares

(2)

(4)

Proceeds from share issuance to minority shareholders

75—

Cash dividends paid

(339)

(682)

Other

(12)

(13)

Net cash provided by (used in) financing activities

(647)

1,521

545

638

Net Increase (Decrease) in Cash and Cash Equivalents

2,087

(870)

Cash and Cash Equivalents at Beginning of Period

6,952

9,040

Cash and Cash Equivalents at End of Period

9,040

8,169

Payments for investments in capital of subsidiaries andNet cash provided by (used in) investing activities
Cash flows from Financing Activities:

Redemption of bonds

Effect of Exchange Rate Change on Cash and Cash
Equivalents- 20 -

(5) Notes to the Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable(Important Basic Items for Preparing Consolidated Financial Statements)
1.

Scope of consolidation
Number of consolidated subsidiaries……….25 companies(including Iseki-Matsuyama Mfg. Co., Ltd., Iseki-Kumamoto Mfg. Co., Ltd., Iseki-Hokkaido Co., Ltd. andIseki-Tohoku Co., Ltd.)
System Equipment Co., Ltd. was excluded from the scope of consolidation, since its liquidation completed as of
September 26, 2013.

2.

Scope of the equity method companies
Number of affiliates……….1 company (Dongfeng Iseki Agricultural Machinery Co., Ltd.)
Dongfeng Iseki Agricultural Machinery (Hubei) Co., Ltd. was renamed Dongfeng Iseki Agricultural MachineryCo., Ltd. in the current fiscal year.

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. 9 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 thebalance sheet dates of respective companies are used. And necessary adjustments at consolidation are made forany 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 leased assets)- 21 -

The straight-line method is used to depreciate tools. For others, the declining-balance method is used.
However, for new buildings (not including facilities attached to buildings) acquired on or after April 1,
1998, the straight-line method is used.
(b) Intangible assets (excluding leased assets)
The straight-line method is used. However, software for internal use is depreciated using thestraight-line method over an expected useful life within the company of five years, while software formarketing is depreciated using the straight-line method over an expected marketable period of three
years.
(c) Leased assets
Leased assets derived from finance leases other than those leases which transfer the ownership of theassets to the lessee are amortized using the 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 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.
(d) Provision for loss on construction contracts
To provide for future loss on construction contracts already concluded, an estimated amount of loss isbooked regarding construction works which had not been completed by the end of the current fiscal
year and for which a loss is expected to occur and the amount of loss can be estimated reasonably.
(4) Accounting treatment related to retirement benefits(a) Method of attributing the projected benefits to periods of service
In calculating retirement benefits, the method of attributing the projected benefits to periods until theend of the current fiscal year is based on the straight-line method attribution.
(b) Method of amortization of actuarial gains or losses, prior service cost and unrecognized net obligation
at the date of initial application of the new accounting standards
Actuarial gains or losses are amortized as incurred over the periods, which are the average remaining
service years of employees, by the straight-line method, starting from the following fiscal year. Prior
service cost is amortized as incurred over the periods, which are the average remaining service years of
employees, by the straight-line method. With regard to unrecognized net obligation at the date of initial- 22 -

application of the new accounting standards, the amount allocated by the straight-line method over 15
years is expensed.
Unrecognized actuarial gains or losses, unrecognized prior service cost and unrecognized net obligation
at the date of initial application of the new accounting standards are recorded as Remeasurements ofdefined benefit plans in Accumulated other comprehensive income under the Net Assets section after
tax effect accounting is applied.
(c) Adoption of the simplified method at small companies
For calculating net defined benefit liability and retirement benefit expenses, some consolidated
subsidiaries apply the simplified method which assumes the company’s benefit obligation to be equal tothe benefits payable assuming the voluntary retirement of all employees takes place at fiscal year-end.
(5) 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.

(6) 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” and “ Minority
interests” in shareholders’ equity and financial statements.

(7) 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, scheduled transactions denominatedin foreign currencies, and loans payable(c) Hedging policies
The financial risks associated with fluctuations in foreign currencies exchange rates and interest rates
are hedged.
Risks associated with fluctuations in foreign currencies exchange rates concerning transactions in- 23 -

foreign currencies, which occur when import and export operations are performed, are hedged bykeeping a balance between export exchanges and import exchanges. With regard to risks associatedwith fluctuations in interest rates on loans payable, risks concerning variable interest rate loans payable
are hedged, mainly with a view to equalizing interest burdens.

(8) Amortization method and amortization period of goodwill
The goodwill account is amortized by the straight-line method over a period of no longer than 20 years.

(9) Cash and cash equivalents in the Consolidated Statement of Cash Flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments which arereadily convertible to cash subject to an insignificant risk of any change in their value and which werepurchased with an original maturity of three months or less.

(10) Other notes pertaining to the preparation of the Consolidated Financial Statements(a) Accounting treatment of consumption tax
Consumption tax and local consumption taxes are accounted for using a tax-exclusive method.

- 24 -

(Change in accounting policy)(Application of the Accounting Standard for Retirement Benefits, etc.)
With the application of the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan(ASBJ) Statement No. 26, May 17, 2012) and the “Guidance on Accounting Standard for Retirement Benefits(ASBJ Guidance No. 25, May 17, 2012)” at the end of the current fiscal year (however, excluding the provisions
given in the text of Paragraph 35 of the Retirement Benefits Accounting Standard and those given in the text ofParagraph 67 of the Retirement Benefit Application Guidance), the Company and its domestic consolidated
subsidiaries changed the previous method to a method of recording the amount obtained by deducting plan assets
from retirement benefit obligations as net defined benefit liability (however, in a case where plan assets exceeds
retirement benefit obligations, the amount obtained will be recorded as net defined benefit asset), and recorded
unrecognized actuarial gains or losses, unrecognized prior service cost and unrecognized net obligation at thedate of initial application of the new accounting standards as net defined benefit asset and net defined benefit
liability.
The Retirement Benefits Accounting Standard, etc. were applied pursuant to the transitional handling specified in
Paragraph 37 of the Retirement Benefits Accounting Standard, and the amount resulting from the impact of thesaid change is adjusted in remeasurements of defined benefit plans under accumulated other comprehensive
income.
As a result, net defined benefit asset of 288 million yen and net defined benefit liability of 6,660 million yen
were recorded at the end of the current fiscal year. Accumulated other comprehensive income decreased 1,269
million yen.
The impact on per share information is described in the relevant part.

- 25 -

(Consolidated Balance Sheets Information)

FY2013

FY2014

Accumulated depreciation of
99,190 million yen
100,103 million yen
property, plant and equipment
2. Guaranteed liabilities
5,203 million yen
5,527 million yen
3. Notes receivable less discount-trade
2 million yen
6 million yen
4. Endorsed notes receivable-trade
192 million yen
153 million yen
5. Notes to mature on the last day of the fiscal year
Notes to mature on the last day of the fiscal year are settled as of the clearing date.
The balance at the end of period includes notes to mature on the last day of the next fiscal year, since the last day of the last
fiscal year under review fell on a holiday of financial institutions.
Notes receivable-trade
154 million yen― million yen
Notes payable-trade
1,934 million yen― million yen
Other (Notes payable-facilities)
19 million yen― million yen
6. Revaluation of land for business use
The Company 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 to the change in the said
revaluation has been recorded in the liabilities (non-current liabilities) as a “Deferred tax liabilities for land revaluation”
and the deducted amount has been recorded under net assets as “Revaluation reserve for land.”・ Revaluation method
・・・・・The revaluation of land has been determined using a reasonable adjustment to theassessed value of the non-current 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 the market
value of the revalued land at theend of the period and the(12,016) million yen
・・・・(11,670) million yen
revalued book value
1.

- 26 -

(Consolidated Statements of Income Information)

1. Research and development expenses

FY2013

FY20144,280 million yen

4,664 million yen

2. Impairment loss
FY2013 (April 1, 2012 - March 31, 2013)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage

Type

Location
Yonago, Tottori Pref.

Impairment loss
loss

Mitoyo, Kagawa Pref.
Taragimachi, Kuma-gun, Kumamoto
Pref.
Kirishima, Kagoshima Pref.

Idle property
Land

6
4
4
6

Total

21

(Reason to record impairment loss)
The Company recorded an impairment loss on the above assets because idle properties are not being used andhave no prospect for use in the future. In addition, their market price is declining.
(Measurement of recoverable amount)
Recoverable amount is measured using net selling price. The price is determined by applying reasonableadjustments to the assessed value of non-current assets for property tax.

FY2014 (April 1, 2013 - March 31, 2014)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage

Type
Buildings,
Structures, Land
Buildings, Land

Idle property

Location

Impairment loss

Ishigemachi, Yuki-gun, Ibaraki Pref.

loss

34

Yasugi, Shimane Pref.

12

Iga, Mie Pref.

2

Ibigawa-cho, Ibi-gun, Gifu Pref.

0

Ichinomiyamachi, Chosei-gun, Chiba
Pref.

27

Hokota, Ibaraki Pref.

10

Buildings

Land

Total

86

(Reason to record impairment loss)
The Company recorded an impairment loss on the above assets because idle properties are not being used andhave no prospect for use in the future. In addition, their market price is declining.
(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 non-current assets for property tax.

- 27 -

(Consolidated Statement of Changes in Equity Information)
FY2013 (April 1, 2012 - March 31, 2013)
1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury shares
Increase in numberof shares during
periodDecrease in
number of shares
during period

229,849,936——

229,849,936

89,37912,575—

101,954

Number of shares(as of Apr. 1, 2012)(Number ofoutstanding shares)
Common stock(Treasury shares)
Common stock

Number of shares(as of Mar. 31, 2013)

Increase in the number of shares, 12,575 shares during the period was by purchasing of shares below stock trading
unit.

2.

Dividends(1) Cash dividends paid
Resolution

Type of shares

RegularMeeting of
Shareholders on
Jun. 26, 2012

Common stock

Total amount ofdividend paid
(millions of yen)

Dividend pershare (yen)

344

1.50

Record date

Effective dateMar. 31, 2012

Jun. 27, 2012

(2) Of the dividends for which the record date belongs to the fiscal year ended March 31, 2013, those for which theeffective date of the dividends will be in the fiscal year ending March 31, 2014.

Resolution

Type of shares

Source offunds fordividends

Totalamount ofdividend
paid(millionsof yen)RegularMeeting of
Shareholders on
Jun. 25, 2013

Common stock

Retainedearnings

689

Dividend
per share(yen)

Record date

Effective date

3.00

Mar. 31, 2013

Jun. 26, 2013

FY2014 (April 1, 2013 - March 31, 2014)
1.

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

Number of shares(as of Apr. 1, 2013)

Increase in numberof shares during
periodDecrease in numberof shares during
periodNumber of shares(as of Mar. 31, 2014)

229,849,936——

229,849,936

101,954

15,300—117,254

Increase in the number of shares, 15,300 shares during the period was by purchasing of shares below stock tradingunit.

- 28 -

2.

Dividends(1) Cash dividends paid
Resolution

Type of shares

RegularMeeting of
Shareholders on
Jun. 25, 2013

Common stock

Total amount ofdividend paid
(millions of yen)

Dividend pershare (yen)

689

3.00

Record date

Effective dateMar. 31, 2013

Jun. 26, 2013

(2) Of the dividends for which the record date belongs to the fiscal year ended March 31, 2014, those for which theeffective date of the dividends will be in the fiscal year ending March 31, 2015.

Resolution

Type of shares

RegularMeeting of
Shareholders on
Jun. 25, 2014

Common stock

Source offunds fordividends

Totalamount ofdividend
paid(millionsof yen)Dividend
per share(yen)

Record date

Effective date

918

4.00

Mar. 31, 2014

Jun. 26, 2014

Retainedearnings(Consolidated Statement of Cash Flows Information)
Reconciliation between cash and cash equivalents at the end of period and the amount reported in the Consolidated
Balance Sheet.
FY2013

FY2014

9,285 million yen

8,228 million yen

more than 3 months(245) million yen(59) million yen

Total cash and cash equivalents

9,040 million yen

8,169 million yen

Cash and deposits
Time deposits with terms of- 29 -

(Segment Information)
1. Segment disclosure
The Company’s reported segments are business units for which discrete financial data are available and which areperiodically 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.

- 30 -

3. Net sales, income/loss, assets, liabilities and other items by segment
FY2013 (April 1, 2012 - March 31, 2013)(millions of yen)
Agriculturerelated
Net sales
Sales to outside customers
Internal sales or transfers
between segments
Total
Segment income
Segment assets
Segment liabilities
Other items
Depreciation
Amortization of goodwill
Interest income
Interest expenses
Share of loss of entities
accounted for using equity
methodExtraordinary income
Extraordinary losses
Taxes
Increase of property, plantand equipment andintangible assets

Other

Total

Adjustments

Amount reported in
the consolidated
financialstatements

155,564

133

155,697—

155,697

0

132

132

(132)

—

155,564
3,975
178,948
41,666

265
4
211
—

155,829
3,979
179,159
41,666

(132)
—
(130)
—

155,6973,979
179,028
41,666

5,535
—
178
729

0
1
0
—

5,535
1
179
729

—
—
(0)
(0)

5,535
1
178
728

96

—

96

—

96

404
327
1,485

—
—
1

404
327
1,486

—
—
—

404
327
1,486

9,659

—

9,659

—

9,659

Notes:
1.

Adjustment represents reduction in internal unrealized profit.

2.

Segment income has been adjusted from net income reported in the Consolidated Statement of Income.

3.

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

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).

- 31 -

FY2014 (April 1, 2013 - March 31, 2014)(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 goodwill
Interest income
Interest expenses
Share of loss of entities
accounted for using equity
methodExtraordinary income
Extraordinary losses
Taxes
Increase of property, plantand equipment andintangible assets

Other

Total

Adjustments

Amount reported in
the consolidated
financialstatements

169,09434

169,129—

169,129

—

30

30

(30)

—

169,094
6,513
197,628
44,389

64
(66)
—
—

169,159
6,447
197,628
44,389(30)———

169,1296,447
197,628
44,389

5,887
—
192
758

0
0
0
—

5,887
0
192
758

—
—
(0)
(0)

5,887
0
192
758

52

—

52

—

52

107
466
1,453

—
1
5

107
467
1,459

—
—
—

107
467
1,459

13,850—13,850—13,850Notes:
1.

Adjustment represents reduction in internal unrealized profit.

2.

Segment income (loss) has been adjusted from net income reported in the Consolidated Statement of
Income.

3.

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

4.

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

5.

Liquidation of System Equipment Co., Ltd., which had engaged in other business, was completed as of
September 26, 2013.

- 32 -

(Per Share Information)(yen)
FY2013

FY2014

Net assets per share

266.94292.11

Net income per share

17.32

28.06

Notes:
1.

The Company has not presented net income per share after adjustment for dilutive securities because there
are no dilutive securities.

2.

As stated in “Change in accounting policy,” the Accounting Standard for Retirement Benefits, etc. wereapplied pursuant to the transitional handling specified in Paragraph 37 of the Retirement Benefits
Accounting Standard. As a result, net assets per share decreased ¥5.52.

3.

Basis of calculation of net income (loss) per share
FY2013

FY2014

Net income per share
Net income reported in the Consolidated Statement of Income

3,979

6,447

3,979

6,447

—

—

229,755,478

229,740,557(millions of yen)
Net income 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(Significant Subsequent Events)
FY2013 (April 1, 2012 –March 31, 2013)
Not applicable

FY2014 (April 1, 2013 – March 31, 2014)
Not applicable- 33 -(shares)5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheet(millions of yen)
FY2013(as of Mar. 31, 2013)

FY2014(as of Mar. 31, 2014)

Cash and deposits

4,060

3,232

Notes receivable-trade

8,642

7,471

Accounts receivable-trade28,31835,842Merchandise and finished goods

11,575

10,350Work in process

383

1,441

Raw materials and supplies

250

304

Advance payments-trade

289

163

Prepaid expenses

256

259

Deferred tax assets

642

437

Short-term loans receivable

6,495

5,783

Other

1,426

1,311

(8)

(9)

62,332

66,588

Buildings, net

3,262

4,005

Structures, net

178

253

1,780

1,652

0

0

875

1,211

25,36925,195

Leased assets, net

187

189

Construction in progress

284

175

31,93832,683

Leasehold right

85

85

Software253

226

Leased assets

119

137

Other

56

48

Total intangible assets

514

498

Investment securities

6,226

6,850

Shares of subsidiaries and associates

18,15718,18891

100

AssetsCurrent Assets:

Allowance for doubtful accounts
Total Current Assets
Non-current Assets:
Property, plant and equipment

Machinery and equipment, net
Vehicles, net
Tools, furniture and fixtures, net
Land

Total property, plant and equipment
Intangible assets

Investments and other assets

Investments in capital- 34 -

FY2013(as of Mar. 31, 2013)

FY2014(as of Mar. 31, 2014)

Investments in capital of subsidiaries and associates

1,075

1,398

Long-term loans receivable

4,353

5,639

Long-term prepaid expenses

249

408

Other

988

1,524

Allowance for doubtful accounts

(185)

(337)

Allowance for investment loss

(989)

(849)

Total investments and other assets

29,96832,923

Total Non-current Assets

62,422

66,104

Total Assets

124,755

132,693

Notes payable-trade

16,636

21,030Accounts payable-trade

14,364

15,653

Short-term loans payable

6,000

6,000

Current portion of long-term loans payable

2,835

3,092

Lease obligations

120

120

Account payable-other

822

934

2,075

2,504

Income taxes payable

129

588

Advances received

911

1,027

Deposits received

361

424

Provision for loss on construction contracts

—

33

Other

659

485

44,91551,893Liabilities
Current Liabilities:

Accrued expenses

Total Current Liabilities- 35 -

(millions of yen)
FY2013(as of Mar. 31, 2013)

FY2014(as of Mar. 31, 2014)

Non-current Liabilities:
Long-term loans payable

15,146

12,554

Lease obligations

202

223

Deferred tax liabilities

551

268

Deferred tax liabilities for land revaluation

6,644

6,644

Provision for retirement benefits

1,395

1,685

Asset retirement obligations

118

118

Long-term deposits received

703

673

Other

73

70

24,83522,23969,75074,132

23,344

23,344

Legal capital surplus

11,554

11,554

Other capital surplus

2,450

2,450

Total capital surplus

14,00414,004

4,956

8,087

4,956

8,087

(25)

(30)

42,28145,406906

1,321

Revaluation reserve for land

11,816

11,831

Total valuation and translation adjustments

12,723

13,15355,00458,560124,755

132,693

Total Non-current Liabilities
Total Liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus

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

Total Net Assets
Total Liabilities and Net Assets- 36 -

(2) Non-consolidated Statements of Income(millions of yen)
FY2013(Apr. 1, 2012Mar. 31, 2013)

FY2014(Apr. 1, 2013Mar. 31, 2014)

Net sales

91,945

106,459

Cost of sales

79,52791,516Gross profit

12,418

14,942

Selling, general and administrative expenses

11,761

12,966656

1,975Interest income

326

336

Dividend income

811

1,554

1,112

1,230

774

1,282

3,025

4,403

Interest expenses

291

277

Sales discounts

47

51

Rent expenses

754

958

Other

409

510

1,503

1,798

2,178

4,580

6

20

Insurance income

139—

Total extraordinary income

146

20

Loss on sales and retirement of non-current assets

61

188

Loss on liquidation of subsidiaries—

87

Loss on disaster

50

—

Other

36

24

Total extraordinary losses

148

300

Income before income taxes

2,176

4,300

Income taxes-current

137

762

Income taxes-deferred

73

(296)

Total income taxes

210

466

1,965

3,834

Operating income
Non-operating income

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

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets

Extraordinary losses

Net income- 37 -

(3) Non-consolidated Statements of Changes in Equity
FY2013 (Apr. 1, 2012 - Mar. 31, 2013)(millions of yen)
Shareholders’ Equity
Capital Surplus

Balance at the beginning of period

Retained Earnings
Otherretainedearnings

Capital
Stock

Legal
Other
Total
Total
capital capital capital Retained retained
surplus surplus surplus earnings earnings
brought
forward23,344

11,5542,450

14,004

Treasury
Shares

Total
Shareholders’ Equity(22)

40,663

3,336

3,336

Dividends of surplus

(344)

(344)

(344)

Net income

1,965

1,965

1,965

Changes of items during theperiodPurchase of treasury shares

(2)

(2)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

—

—

—

—

1,620

1,620

(2)

1,618

23,344

11,5542,450

14,004

4,956

4,956

(25)

42,281

Valuation and Translation Adjustments
Valuation
Total Valuation
Difference on Deferred gains Revaluation
or losses on
and Translation
Available-for-sal
Reserve for Land Adjustments
hedgese Securities
Balance at the beginning of period249

311,816

12,069Total Net
Assets52,732

Changes of items during theperiodDividends of surplus(344)

Net income

1,965

Purchase of treasury shares(2)

Net changes of items other thanshareholders’ equity

657

(3)

—

654

654

Total changes of items during theperiod

657

(3)

—

654

2,272

Balance at the end of period

906—

11,816

12,72355,004- 38 -

FY2014 (Apr. 1, 2013 - Mar. 31, 2014)(millions of yen)
Shareholders’ Equity
Capital Surplus

Balance at the beginning of period

Retained Earnings
Otherretainedearnings

Capital
Stock

Legal
Other
Total
Total
capital capital capital Retained retained
surplus surplus surplus earnings earnings
brought
forward23,344

11,5542,450

14,004

Treasury
Shares

Total
Shareholders’ Equity(25)

42,281

4,956

4,956

Dividends of surplus

(689)

(689)

(689)

Net income

3,834

3,834

3,834

Changes of items during theperiodPurchase of treasury shares(4)

Reversal of revaluation reserve
for land

(14)

(14)

(4)
(14)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at the end of period

—

—

—

—

3,130

3,130

(4)

3,125

23,344

11,5542,450

14,004

8,087

8,087

(30)

45,406

Valuation and Translation Adjustments
Valuation
Deferred gains
Total Valuation
Difference on
RevaluationorlossesonandTranslation
Available-for-sal
Reserve for Land
hedgesAdjustments
e Securities
Balance at the beginning of period—

906

11,816

12,723

Total Net
Assets

55,004

Changes of items during theperiodDividends of surplus(689)

Net income

3,834

Purchase of treasury shares(4)

Reversal of revaluation reserve
for land(14)

Net changes of items other thanshareholders’ equity

415

—

14

430

430

Total changes of items during theperiod

415

—

14

430

3,555

1,321

—

11,831

13,15358,560

Balance at the end of period- 39 -

(4) Notes to the Non-consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable

6. Others(1) Production, Orders & Sales
1) Production results per product–type(millions of yen)
FY2013

FY2014(Apr. 1, 2012-Mar. 31, 2013)(Apr. 1, 2013-Mar. 31, 2014)

Change from previous
periodCultivating & mowing
machinery

42,36059,797

17,436

Planting machinery

22,754

17,332(5,421)

27,16628,043

876

2,483

2,261

(222)

8,445

8,404

(41)

103,211

115,840

12,628———103,211

115,840

12,628

Product-type

Harvesting andprocessing machinery
Parts and farming
implements
Other agriculture related
business
Agriculture-related business
total
Other business 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

FY2013

FY2014(Apr. 1, 2012-Mar. 31, 2013)(Apr. 1, 2013-Mar. 31, 2014)

AmountRatio

AmountRatio%

Change from previous
periodAmount

Ratio

%

%

Cultivating &mowing machinery

41,67026.8

49,963

29.6

8,292

19.9

Planting machinery

17,497

11.2

17,620

10.4

122

0.7

28,41318.3

29,281

17.3

867

3.1

33,36721.4

37,357

22.1

3,989

12.0

34,61422.2

34,871

20.6

256

0.7

155,56499.9

169,094100

13,530

8.7

133

0.1

34

0.0

(98)

(74.1)

155,697100

169,129100

13,431

8.6

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business total
Other business total
Total(b) Domestic(millions of yen)
Product-type

FY2013

FY2014(Apr. 1, 2012-Mar. 31, 2013)(Apr. 1, 2013-Mar. 31, 2014)

AmountRatio

Amount%Ratio

Change from previous
periodAmount%

Ratio%

Cultivating &mowing machinery

29,01521.8

33,322

23.3

4,306

14.8

Planting machinery

11,2208.4

10,887

7.6

(333)

(3.0)

26,83020.2

28,259

19.8

1,428

5.3

32,08424.1

36,048

25.2

3,964

12.4

33,77325.4

34,422

24.1

649

1.9

132,92599.9

142,940100

10,015

7.5

133

0.1

34

0.0

(98)

(74.1)

133,058

100

142,974

100

9,916

7.5

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business total
Other business total
Total- 41 -

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

FY2013

FY2014(Apr. 1, 2012-Mar. 31, 2013)(Apr. 1, 2013-Mar. 31, 2014)

Change from previous
periodAmountAmountAmount

Ratio
%

Ratio
%

%

Cultivating &mowing machinery

12,65555.9

16,641

63.6

3,986

31.5

Planting machinery

6,277

27.7

6,732

25.8

455

7.3

1,582

7.0

1,022

3.9

(560)

(35.4)

1,283

5.7

1,308

5.0

25

2.0

840

3.7

448

1.7

(392)

(46.6)

22,638100

26,154

100

3,515

15.5

—

—

—

—

—

—

22,638100

26,154

100

3,515

15.5

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business total
Other business total
Total(2) Change in Officers (as of June 25, 2014)
1.

Ratio

Candidate for new Corporate Auditor(Expected new title)
Corporate Auditor(Outside Auditor)

2. .Corporate Auditor who will retire(Current title)
Corporate Auditor(Outside Auditor)

Name
Atsushi Oka(Current title)
General Manager,
Risk Supervisory Division,
THE IYO BANK, Ltd.

Name

(Title after retirement)

Norio Yasunaga—- 42 -