May 14, 2019
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:
May 14, 2019
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 Three Months Ended March 31, 2019 (Japanese GAAP)
I. Consolidated Financial Results for the Three Months Ended March 31, 2019 (January 1, 2019－March 31,
2019)
A. Consolidated Results of Operations (Cumulative Total)(Rounded down to millions of yen, % indicates changes from the previous corresponding period)

Three Months
Ended March 31,
201933,353(744)(1,111)(456)

Net Sales
Operating Income
Ordinary Income
Profit (Loss) Attributable to Owners of Parent
Earnings per Share (yen)(20.19)
Basic
Diluted―Note: Comprehensive income
Three months ended March 31, 2019: ¥(374) million [—%]
Three months ended March 31, 2018: ¥(1,120) million [—%]

%
(9.5)
―
―
―

Three Months
Ended March 31,
201836,842
(599)
(914)
(349)
(15.47)
―

%
0.4
―
―
―

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

As of March 31, 2019

As of December 31, 2018

Total Assets
210,604
201,156
Net Assets
67,903
68,959
Shareholder’s Equity to Total Assets Ratio (%)
31.4
33.4
Net Assets per Share (yen)2,928.64
2,974.78
Reference: Shareholder’s equity
As of March 31, 2019: ¥66,160 million
As of December 31, 2018: ¥67,200 million
The Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018), etc. from the beginning of the first quarter ended March 31, 2019.
With respect to the consolidated financial position as of December 31, 2018, the values after the above accounting
standard, etc. was retrospectively applied are used.
II. Dividends

1Q-endFY Ended December 31, 2018
FY Ending December 31, 2019
FY Ending December 31, 2019
(Forecast)

2Q-end——Dividend per Share(yen)3Q-end———Year-end
30.00

—

Total
30.00

30.00

30.00

Note: Revision of the most recently announced dividend forecast: No
III. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2019 (January 1, 2019－
December 31, 2019)(Rounded down to millions of yen, % indicates changes from the previous period)
Net Sales%

Operating
Income%Ordinary
Income%81,800(0.5)
1,900 (13.6)
1,600 (13.0)
164,000
5.2
4,000 25.8
2,600
(1.1)
Note: Revision of the most recently announced financial results forecast: No
First Half
Full Year

ProfitAttributableto Owners of
Parent

1,400
1,600

%

(15.1)
46.7

Earnings
per Share
(yen)

61.97
70.83

* NotesA. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in the scope of consolidation): No
New: — (), Exclusion: — ()
B. Adoption of special accounting treatment for preparing the quarterly consolidated financial statements: No
C. Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards, etc.:
2) Any changes other than 1) above:3) Changes in accounting estimates:
4) Restatements:
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 March 31, 2019
22,984,993 shares
As of December 31, 2018
22,984,993 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2019
394,079 shares
As of December 31, 2018394,999 shares
3) Average number of shares during the period (cumulative total):Three months ended March 31, 2019
22,590,438 shares
Three months ended March 31, 2018
22,589,038 shares

No
No
No
No

* These quarterly financial results are outside the scope of quarterly review procedures to be performed bycertified public accountants or an audit corporation.
* Explanation on the proper use of financial results forecasts and other notes
The financial results forecasts and other forward-looking statements contained in this report are based on
information available to the Company on the date of this report’s release and certain preconditions that theCompany deems to be reasonable. Actual results, etc. may differ significantly from the forecasts, however, as aresult of various factors. For details on the preconditions on the financial results forecasts of the Company andnotes on the use of financial results forecasts, please see “1. Qualitative Information on Consolidated 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 ....................................................................................................2(3) Explanation on Consolidated Financial Results Forecasts andOther Forecast Information ..............................................................................................................3
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................4(1) Quarterly Consolidated Balance Sheets............................................................................................4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ....................................................................................................................6(3) Notes to Quarterly Consolidated Financial Statements ....................................................................8(Notes to Going Concern Assumption) ............................................................................................8(Notes to Material Changes in Shareholders’ Equity) ......................................................................8(Additional Information) ..................................................................................................................8-1-

1. Qualitative Information on Consolidated Financial Results for the Period under Review
The Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018), etc. from the beginning of the first quarter ended March 31, 2019.
With respect to the explanation on financial position, the values after the above accounting standard, etc. wasretrospectively applied are used in the analysis and in the comparison with the values of the previous fiscal year.
(1) Explanation on Results of Operations
During the three months ended March 31, 2019, the Japanese economy remained on a moderate recovery track due
to the effects of various government policies amid continuing improvement in employment and income
environments. Overseas, the economy in the U.S. continued a steady recovery mainly backed by increased personal
consumption and capital investment, while the economy in Europe performed sluggishly in some areas of production
and capital investment and the Chinese economy slowed down slightly due to sluggishness in personal consumption
and capital investment. Although the world economy improved gradually as a whole, uncertainty partially due to theeffects of trade friction between the U.S. and China should be watched.
On the other hand, in the domestic agricultural environment, the market for agricultural machinery remained flat
amid ongoing structural changes in agriculture including farmland consolidation to principal farmers and rice-crop
diversion such as a shift to dry field farming and vegetable production.
Under these circumstances, the ISEKI Group continued its initiatives to strengthen the responsiveness to structuralchanges in agriculture mainly by launching new products and improving customer service in Japan, while working tostrengthen 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 three months ended March 31, 2019 were ¥33,353 million, a decrease of ¥3,488 million (9.5%)
year on year. Domestic sales in Japan were ¥25,399 million, a decrease of ¥3,018 million (10.6%) year on year, as aresult of decreased sales of construction of facilities versus the same period of the previous fiscal year when thelarge-scale construction was completed, and decreased sales of agricultural machinery, in spite of ongoing steadysales of farming implements and parts. Overseas sales were ¥7,954 million, a decrease of ¥470 million (5.6%) year
on year. This was due to a sales decline from decreased shipments of semi-finished rice transplanters stemming fromlocal inventory adjustments in response to a cooling market in China and a sales decline from decreased shipmentsof tractors in the ASEAN region accompanying local inventory adjustments in the Thai market, despite higher sales
in North America from factors including ongoing favorable sales of new compact tractors and ongoing steady salesin Europe that remained almost unchanged from the previous fiscal year due to the effect of currency exchange rates
linked to the higher yen.
In the three months ended March 31, 2019 which is the off-demand season, we recorded loss in all income items
from operating income and below. Operating loss was ¥744 million, a decrease of ¥145 million year on year, mainly
due to the decrease in gross profit stemming from revenue decline in spite of the absence of temporary factors in theprevious fiscal year and a reduction in selling, general and administrative expenses. Ordinary loss was ¥1,111
million, a decrease of ¥197 million year on year, mainly due to improvements in foreign exchange gains or losses
and the recording of the share of loss of entities using equity method. Loss attributable to owners of parent was ¥456
million, a decrease of ¥106 million year on year.
Sales by product are as follows.
[Domestic]
Sales of cultivating and mowing machinery (tractors, high-clearance multipurpose vehicles, among others) were
¥6,740 million (a decrease of 7.2% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥2,208 million (an increase of 2.0% year on year). Sales of harvesting and processing machinery(combine harvesters, among others) were ¥2,799 million (a decrease of 0.0% year on year). Sales of farming
implements, spare parts and repair fees were ¥8,686 million (an increase of 1.4% year on year). Sales of otheragriculture-related business (construction of facilities, among others) were ¥4,964 million (a decrease of 34.9% year
on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥5,983 million (a decrease of 1.3% year
on year). Sales of planting machinery (rice transplanters, among others) were ¥824 million (a decrease of 44.8% year
on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥133 million (anincrease of 7,008.4% year on year). Sales of farming implements and spare parts were ¥705 million (an increase of
10.3% year on year). Sales of other agriculture-related business were ¥308 million (an increase of 36.2% year onyear).
(2) Explanation on Financial Position[Assets]
Total assets at the end of the first quarter ended March 31, 2019 increased by ¥9,447 million from the end of theprevious fiscal year to ¥210,604 million. This was mainly due to an increase of ¥4,655 million in notes and accounts
receivable - trade and an increase of ¥4,426 million in inventories.
[Liabilities]-2-

Total liabilities at the end of the first quarter ended March 31, 2019 increased by ¥10,504 million from the end of
the previous fiscal year to ¥142,701 million. This was mainly due to an increase of ¥3,948 million in notes andaccounts payable - trade and electronically recorded obligations - operating, and an increase of ¥5,551 million in
short-term loans payable and long-term loans payable.
[Net assets]
Total net assets at the end of the first quarter ended March 31, 2019 decreased by ¥1,056 million from the end of
the previous fiscal year to ¥67,903 million. This was mainly due to ¥456 million of loss attributable to owners ofparent and ¥677 million of dividends of surplus.
(3) Explanation on Consolidated Financial Results Forecasts and Other Forecast Information
The consolidated financial results forecasts for the first half ending June 30, 2019 and the fiscal year ending
December 31, 2019 have not been revised.
These financial results forecasts are calculated based on the exchange rates at ¥108 per U.S. dollar (unchanged)and ¥125 per euro (unchanged).

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2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2018 As of March 31, 2019
AssetsCurrent assets
Cash and deposits

7,475

8,080

Notes and accounts receivable - trade23,32727,983Merchandise and finished goods

46,49550,585Work in process

6,046

6,396

Raw materials and supplies

1,177

1,162

Other

7,320

5,887

(51)

(51)

91,791

100,045

Buildings and structures, net

25,37825,566

Land

50,87350,840

Other, net

20,58921,141

Total property, plant and equipment

96,842

97,548

1,082

1,181

Investment securities

5,817

5,939

Other

5,769

6,037

Allowance for doubtful accounts

(146)

(147)

Total investments and other assets

11,44011,829109,365

110,559

201,156

210,604

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, 2018 As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade23,80327,640Electronically recorded obligations - operating
Short-term loans payable

15,93331,475

16,04437,752Current portion of long-term loans payable

11,401

11,461

Income taxes payable

368

206

Provision for bonuses

482

840

Other

12,129

11,792

Total current liabilities

95,593

105,738

Non-current liabilities
Long-term loans payable

20,571

19,786

Deferred tax liabilities for land revaluation

5,780

5,780

Provision for directors’ retirement benefits

132

129

Net defined benefit liability

4,063

3,866

Asset retirement obligations
Other

322
5,732

323
7,077

Total non-current liabilities
Total liabilities

36,603
132,197

36,963
142,701

Capital stock
Capital surplus

23,344
13,452

23,344
13,452Retained earnings

16,932

15,798Treasury shares

(983)

(981)

52,746

51,614

418
(0)

523

Net assets
Shareholders’ equity

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

12,670―12,670Foreign currency translation adjustment

864

847

Remeasurements of defined benefit plans

501

504

Revaluation reserve for land

14,454

14,546

Subscription rights to shares

Total accumulated other comprehensive income

7875

Non-controlling interests

1,681

1,666

Total net assets
Total liabilities and net assets

68,959201,156

67,903
210,604-5-

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
For the Three Months Ended March 31, 2019
(Millions of yen)Three months ended
March 31, 2018

Three months ended
March 31, 2019

Net sales

36,84233,353

Cost of sales

26,897

23,722Gross profit

9,945

9,630

Selling, general and administrative expenses

10,544

10,375

(599)

(744)

Operating loss
Non-operating income
Interest income

33

61

Dividend income

9

18

Other

271

233

Total non-operating income

314

313

Interest expenses

140

172

Share of loss of entities accounted for using equity method

183

364

Foreign exchange losses

183

48

Other

122

94

Total non-operating expenses

629

680

(914)

(1,111)Gain on sales of non-current assets

178Gain on step acquisitions

16―

Total extraordinary income

34

8Loss on sales and retirement of non-current assets

22

45

Impairment loss

8

12

Total extraordinary losses

31

57

Loss before income taxes(911)(1,161)

Income taxes - current

158

152

Income taxes - deferred

(715)

(847)

Total income taxes

(556)

(694)

Loss

(354)

(466)

(5)

(9)

(349)

(456)

Non-operating expenses

Ordinary loss
Extraordinary income

Extraordinary losses

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

Quarterly Consolidated Statements of Comprehensive Income
For the Three Months Ended March 31, 2019
(Millions of yen)Three months ended
March 31, 2018
Loss

Three months ended
March 31, 2019

(354)

(466)

(623)

104

Deferred gains or losses on hedges(3)0Foreign currency translation adjustment

(56)

(56)

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

(9)

3

(72)

40

(765)

91

(1,120)(374)(1,106)

(364)

(13)

(10)

Other comprehensive income
Valuation difference on available-for-sale securities

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

(3) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable(Notes to Material Changes in Shareholders’ Equity)
Not applicable(Additional Information)
Application of the Partial Amendments to Accounting Standard for Tax Effect Accounting
The Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018), etc. from the beginning of the first quarter ended March 31, 2019.
Accordingly, deferred tax assets are shown in the segment of investments and other assets, and deferred tax liabilities
are shown in the segment of non-current liabilities.

-8-