August 6, 2020
Name of Listed Company: ISEKI & CO., LTD.
Stock Exchange Listings: Tokyo
Company Code:6310 (URL http://www.iseki.co.jp)
Representative: Title President
Name Shirou Tomiyasu
Enquiries:
Title General Manager of Financial Department
Name Yoshikazu Ogusu
Telephone: +81-3-5604-7671
Date of Submission of Quarterly Report:
August 6, 2020
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 Six Months Ended June 30, 2020 (Japanese GAAP)
I. Consolidated Financial Results for the Six Months Ended June 30, 2020 (January 1, 2020－June 30, 2020)
A. Consolidated Results of Operations (Cumulative Total)(Rounded down to millions of yen, % indicates changes from the previous corresponding period)

Six Months Ended
June 30, 2020
72,245
1,270
1,068
979

Net Sales
Operating Income
Ordinary Income
Profit Attributable to Owners of Parent
Earnings per Share (yen)
Basic
43.35
Diluted43.31
Note: Comprehensive income
Six months ended June 30, 2020: ¥413 million [21.1%]
Six months ended June 30, 2019: ¥341 million [(49.9)%]

Six Months Ended
June 30, 2019
(6.8)
77,552(22.4)
1,637
25.8
849
47.3
665

%

29.45
29.41

%
(5.7)
(25.5)(53.8)(59.6)

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

As of June 30, 2020

As of December 31, 2019

206,978
68,98532.5
2,974.66

197,511
69,25234.2
2,987.19

Total Assets
Net Assets
Shareholder’s Equity to Total Assets Ratio (%)
Net Assets per Share (yen)Reference: Shareholder’s equity
As of June 30, 2020: ¥67,247 million
As of December 31, 2019: ¥67,481 million
II. Dividends

1Q-endFY Ended December 31, 2019
FY Ending December 31, 2020
FY Ending December 31,
2020 (Forecast)——

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

Total
30.00

—

—

Note: Revision of the most recently announced dividend forecast: No
The year-end dividend forecast for the fiscal year ending December 31, 2020 has been undetermined at this moment.
III. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2020 (January 1, 2020－
December 31, 2020)(Rounded down to millions of yen, % indicates changes from the previous period)
Net Sales%

Operating
Income%Ordinary
Income%Full Year
144,500 (3.6)
1,100 (59.9)
200 (82.0)
Note: Revision of the most recently announced financial results forecast: Yes

ProfitAttributableto Ownersof Parent

200%(72.3)

Earnings
per Share
(yen)

8.85

* NotesA. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges 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:

No
No
No
No

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 June 30, 2020
22,984,993 shares
As of December 31, 2019
22,984,993 shares2) Total number of treasury shares at the end of the period:
As of June 30, 2020
378,073 shares
As of December 31, 2019394,565 shares
3) Average number of shares during the period (cumulative total):
Six months ended June 30, 2020
22,601,354 shares
Six months ended June 30, 2019
22,590,565 shares* These quarterly financial results are outside the scope of quarterly review procedures to be performed by certified
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 Financial
Results 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 ....................................................................................................3(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) Quarterly Consolidated Statements of Cash Flows...........................................................................8(4) Notes to Quarterly Consolidated Financial Statements ..................................................................10(Notes to Going Concern Assumption) ..........................................................................................10(Notes to Material Changes in Shareholders’ Equity) ....................................................................10-1-

1. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation on Results of Operations
During the six months ended June 30, 2020, the Japanese economy remained in a difficult condition primarily
attributable to voluntary restraints put on economic activities in response to the government's declaration of a state of
emergency, etc. due to the impact of the spread of the novel coronavirus infection (COVID-19). Overseas as well, theoverall global economy was also in a severe situation, mainly resulting from the restricted economic activities due toexpanding lockdowns, including various governments’ restraints on business, in response to the spread of COVID-19.
Under these circumstances, the ISEKI Group continued its initiatives to strengthen the responsiveness to structuralchanges in agriculture in Japan, including launch of new products and improvement in customer service, while working
to strengthen its sales in its mainstay overseas markets of North America, Europe, China, and ASEAN. The Group’s
consolidated financial results are summarized as follows.
Net sales for the six months ended June 30, 2020 were ¥72,245 million, a decrease of ¥5,307 million (6.8%) year
on year. Domestic sales in Japan were ¥57,249 million, a decrease of 2,718 million (4.5%) year on year, as a result of
decreased sales of agricultural machinery, etc. due to voluntary restraints put on sales activities, including thecancelation of exhibitions, owing to the uncertain demand environment following the consumption tax rate increase
and the impact of the spread of COVID-19, in spite of ongoing steady sales of maintenance fees including spare partsand repairs, and an increase in construction of facilities including the completion of large-scale construction. Overseas
sales were ¥14,995 million, a decrease of ¥2,588 million (14.7%) year on year. This was due to decreased shipmentsof tractors owing to a delay in receiving engines purchased for installation in some products in North America, theeffect of currency exchange rates and a decline in sales from shipment adjustment owing to temporary closures of
local distributors’ shops as a countermeasure to COVID-19 in Europe, and decreased shipments of tractors in Indonesia
in the ASEAN region, despite increased shipments of semi-finished rice transplanters to China and tractors andcombine harvesters to South Korea.
Operating income was ¥1,270 million, a decrease of ¥367 million (22.4%) year on year, mainly due to the recordingof loss on valuation of parts inventory accompanying the delay in receiving engines purchased for installation, in
addition to the decrease in gross profit stemming from revenue decline, despite a reduction in selling, general andadministrative expenses. Ordinary income was ¥1,068 million, an increase of ¥218 million (25.8%) year on year, due
to reductions in foreign exchange losses and share of loss of entities accounted for using equity method. Income before
income taxes was ¥1,607 million, an increase of ¥815 million (103.0%) year on year, primarily owing to the recordingof gain on change in equity accompanying a decrease in our investment ratio in an equity method affiliate in China.
Profit attributable to owners of parent was ¥979 million, an increase of ¥314 million (47.3%) year on year.
Sales by product are as follows.
[Domestic]
Sales of cultivating and mowing machinery (tractors, high-clearance multipurpose vehicles, among others) were¥13,358 million (a decrease of 11.6% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥5,515 million (a decrease of 10.4% year on year). Sales of harvesting and processing machinery(combine harvesters, among others) were ¥4,325 million (a decrease of 19.8% year on year). Sales of farming
implements, spare parts and repair fees were ¥20,619 million (a decrease of 4.0% year on year). Sales of otheragriculture-related business (construction of facilities, among others) were ¥13,430 million (an increase of 13.6% year
on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥10,895 million (a decrease of 19.7% year
on year). Sales of planting machinery (rice transplanters, among others) were ¥1,301 million (an increase of 27.4%
year on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥887 million(an increase of 19.1% year on year). Sales of farming implements and spare parts were ¥1,358 million (a decrease of
9.1% year on year). Sales of other agriculture-related business were ¥553 million (a decrease of 26.2% year on year).

-2-(2) Explanation on Financial Position[Assets]
Total assets at the end of the second quarter ended June 30, 2020 increased by ¥9,466 million from the end of theprevious fiscal year to ¥206,978 million. This was mainly due to a decrease of ¥788 million in cash and deposits, anincrease of ¥10,549 million in notes and accounts receivable – trade, an increase of ¥2,454 million in inventory, adecrease of ¥645 million in other current assets, and a decrease of ¥725 million in investment securities.
[Liabilities]
Total liabilities at the end of the second quarter ended June 30, 2020 increased by ¥9,733 million from the end of theprevious fiscal year to ¥137,992 million. This was mainly due to an increase of ¥3,589 million in notes and accounts
payable – trade and electronically recorded obligations – operating, an increase of ¥7,724 million in the net amount ofshort-term loans payable and long-term loans payable, and a decrease of ¥1,540 million in other current liabilities.
[Net assets]
Total net assets at the end of the second quarter ended June 30, 2020 decreased by ¥267 million from the end of theprevious fiscal year to ¥68,985 million. This was mainly due to ¥979 million of profit attributable to owners of parent,¥677 million of dividends of surplus, a decrease of ¥459 million in valuation difference on available-for-sale securities,
and a decrease of ¥135 million in foreign currency translation adjustment.
(3) Explanation on Consolidated Financial Results Forecasts and Other Forecast Information
The spread of COVID-19 has put various restrictions on the Group’s business activities both in Japan and overseas
and impacted its financial results. The consolidated financial results forecast for the fiscal year ending December 31,
2020 (January 1, 2020 through December 31, 2020) was temporarily withdrawn on May 15, 2020 and remained“Undetermined” as it was difficult to reasonably calculate the impact of COVID-19 on the Group’s business activities.
Today we announced the consolidated financial results forecast based on the information and estimates available atthis time. Under the assumption that COVID-19 will come to an end in the first half of the fiscal year ending December
31, 2021, and given that the economic activities have been resuming in Japan and overseas, the Company expects that
the Group's sales will gradually recover in and after the third quarter of this fiscal year. As for income and profit, we
factored inventory adjustment in response to the recent increase in distribution inventory into the calculation of theconsolidated financial results forecast.
The financial results forecast presented above was calculated based on the information available at this time andmay change due to various factors. The dividend forecast remains undetermined due to the uncertainty about theeconomic impact of COVID-19.

-3-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2019

As of June 30, 2020

Cash and deposits

8,404

7,616

Notes and accounts receivable - trade

19,67530,224Merchandise and finished goods

46,42648,446Work in process

6,580

7,086

Raw materials and supplies

1,171

1,101

Other

4,952

4,307

(52)

(96)

87,15998,685

Buildings and structures, net

26,05025,726

Land

50,75950,860

Other, net

21,535

20,830Total property, plant and equipment

98,346

97,417

1,288

1,365

Investment securities

5,303

4,578

Other

5,542

5,089

Allowance for doubtful accounts

(128)

(158)

Total investments and other assets

10,717

9,509

110,352

108,292

197,511

206,978

AssetsCurrent assets

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, 2019

As of June 30, 2020

Notes and accounts payable - trade22,142

23,748

Electronically recorded obligations - operating
Short-term loans payable

15,61028,633

17,594
37,125Current portion of long-term loans payable

10,717

12,333Liabilities
Current liabilities

Income taxes payable

356

404

Provision for bonuses

443

579

Other

11,830

10,290Total current liabilities

89,735102,075

Non-current liabilities
Long-term loans payable

21,525

19,142

Deferred tax liabilities for land revaluation

5,759

5,759

Provision for directors’ retirement benefits

140

140

Net defined benefit liability

3,059

3,093

Asset retirement obligations
Other

325
7,713

327
7,453

Total non-current liabilities
Total liabilities

38,524
128,259

35,917
137,992

Capital stock
Capital surplus

23,344
13,452

23,344
13,449Retained earnings

17,025

17,327

Treasury shares

(982)

(940)

52,84053,181

380
(0)

(78)
20

12,622

12,622Foreign currency translation adjustment

648

513

Remeasurements of defined benefit plans

989

989

Net assets
Shareholders’ equity

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

14,641

14,066

Subscription rights to shares

Total accumulated other comprehensive income

7537

Non-controlling interests

1,694

1,699

Total net assets
Total liabilities and net assets

69,252
197,511

68,985206,978-5-

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
For the Six Months Ended June 30, 2020
(Millions of yen)Six months ended
June 30, 2019

Six months ended
June 30, 2020

Net sales

77,552

72,245

Cost of sales

55,01650,801Gross profit

22,53521,444

Selling, general and administrative expenses

20,89820,173Operating income

1,637

1,270

Interest income

101

95

Dividend income

121

91

Other

441

392

Total non-operating income

664

578

Interest expenses

364

324

Foreign exchange losses

182

60

Share of loss of entities accounted for using equity method

689

181

Other

215

213

1,452

780

849

1,068

Gain on sales of non-current assets

16

15

Gain on sales of investment securities

104―

Gain on change in equity―

650

Total extraordinary income

120

666

Loss on sales and retirement of non-current assets

98

74

Impairment loss

79

1

Loss on valuation of investment securities

1

52

Other

0

―

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

Total extraordinary losses

179

128

Income before income taxes

791

1,607

Income taxes - current

727

383

Income taxes - deferred

(610)

234

Total income taxes

117

617

Profit

673

989

8

9

665

979

Profit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Quarterly Consolidated Statements of Comprehensive Income
For the Six Months Ended June 30, 2020
(Millions of yen)Six months ended
June 30, 2019
ProfitSix months ended
June 30, 2020

673

989

(175)

(459)

2

20

(116)

(8)

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method

8

(0)

(50)

(127)

Total other comprehensive income

(331)

(575)

341

413

335

405

6

8

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months ended
June 30, 2019

Six months ended
June 30, 2020

Cash flows from operating activities
Income before income taxes

791

1,607

3,546

4,144

Amortization of goodwill

1

1

Impairment loss

79

1

Increase (decrease) in net defined benefit liability

(280)

33

Loss (gain) on sales of investment securities

(104)

―

Interest and dividend income

(223)

(186)

Interest expenses

364

324

Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment andintangible assets
Loss (gain) on change in equity

33

(16)

81

58

―

(650)

Decrease (increase) in notes and accounts receivable - trade(11,538)(10,556)

Decrease (increase) in inventories(1,303)(2,421)

Increase (decrease) in notes and accounts payable - trade

6,155

3,570

Other, net

3,661

1,276

Subtotal

1,265(2,813)

Interest and dividend income received

202

194

Interest expenses paid

(364)

(322)

Income taxes paid

(124)

(154)

Net cash provided by (used in) operating activities

978(3,096)(5,125)(4,972)

174

153

(0)

(0)

Proceeds from sales of investment securities

348―

Decrease (increase) in time deposits

(199)

(253)

69

452

(4,733)(4,620)Depreciation

Cash flows from investing activities
Acquisition of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Acquisition of investment securities

Other, net
Net cash provided by (used in) investing activities-8-

(Millions of yen)Six months ended
June 30, 2019

Six months ended
June 30, 2020

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

4,920

8,511

Proceeds from long-term loans payable

3,582

3,100

Repayments of long-term loans payable(4,015)(3,849)Proceeds from sales and leasebacks

1,708

634

Repayments of lease obligations(1,147)(1,058)

(0)

(0)

(670)

(671)

(4)

(3)

4,371

6,664

Effect of exchange rate change on cash and cash equivalents

(53)

10

Net increase (decrease) in cash and cash equivalents

562(1,041)

Cash and cash equivalents at beginning of period

7,387

8,369

Cash and cash equivalents at end of period

7,949

7,327

Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities-9-(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable(Notes to Material Changes in Shareholders’ Equity)
Not applicable- 10 -