August 10, 2017
ISEKI & CO., LTD.
Supplementary Information to Consolidated Financial Results(January 1, 2017 – June 30, 2017)
I. Consolidated results of operations for the six months ended June 30, 2017
2 Q of FY
2 Q of FY ended
endingDecember 31,
December 31,
2016
2017
Net sales

Year-on-year change
Amount%(Billions of yen, %)2Q of FY
endingDifference
December (forecast31, 2017/actual)
Forecast*

81.0

80.2

(0.8)

(1.1)

81.2

(1.0)

Domestic

61.3

62.8

1.5

2.4

63.0

(0.2)

Overseas

19.7

17.4

(2.3)

(11.8)

18.2(0.8)

Gross profit

23.3

23.7

0.4

1.8

23.9

(0.2)

Gross profit margin

28.8%

29.6%

0.8%

—

29.4%

0.2%

Selling, general andadministrative expenses

21.6

20.9

(0.7)

(3.1)

22.0

(1.1)

Operating income

1.7

2.8

1.1

62.2

1.9

0.9

Balance of financial
income

(0.3)

(0.3)

0.0

—

(0.4)

0.1

Other non-operating
income

(0.1)

0.9

1.0

—

0.7

0.2

1.3

3.4

2.1

167.0

2.2

1.2

Extraordinary income

1.0

0.0

(1.0)

—

0.0

0.0

Extraordinary losses

(1.3)

(0.1)

1.2

—(0.1)

0.0

Income before income taxes

1.0

3.3

2.3

244.5

2.1

1.2

(0.4)

(1.1)

(0.7)

—(0.8)

(0.3)

0.6

2.2

1.6

296.8

1.3

0.9

Ordinary income

Income taxes
Profit attributable to ownersof parent1

(Sales breakdown)
2 Q of FY ended 2Q of FY ending
December 31,December31,
2016
2017
Agricultural machinery
Farming implements
Spare parts
Repair fees
Totals agricultural
machinery related
Construction of facilities
OthersDomestic sales total

Year-on-yearchange(Billions of yen)
2 Q of FY
endingDifference
December (forecast/actual)
31, 2017
Forecast*
28.0
0.1
10.9
0.4
6.7
0.1
2.6(0.1)

28.2
10.6
6.6
2.4

28.1
11.3
6.8
2.5

(0.1)
0.7
0.2
0.1

47.8

48.7

0.9

48.2

0.5

2.8
10.7
61.3

3.3
10.8
62.8

0.5
0.1
1.5

3.6
11.2
63.0

(0.3)
(0.4)
(0.2)

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

6.4
6.2
2.2
2.1
1.2
18.1
1.0
0.6
19.7

3.5
5.6
2.6
1.8
1.7
15.21.2
1.0
17.4

(2.9)
(0.6)
0.4(0.3)
0.5(2.9)
0.2
0.4(2.3)

3.2
5.6
2.6
2.3
1.9
15.6
1.7
0.9
18.2

0.3
0.0
0.0(0.5)
(0.2)
(0.4)
(0.5)
0.1(0.8)

Total net sales

81.0

80.2

(0.8)

81.2

(1.0)

* the forecast released on February 14, 2017211) Year-on-year change(1) Net sales: a recovery trend in sales in Japan and decreased sales overseas partly due to temporary
factors
 Net sales: ¥80.2 billion (down ¥0.8 billion (1.1%) year on year)
 Sales in Japan: ¥62.8 billion (up ¥1.5 billion (2.4%) year on year)
Overall sales related to agricultural machinery increased by ¥0.9 billion thanks to favorable sales of tractors
and increased sales of farming implements, spare parts and repair fees. Sales of construction of facilities
increased by ¥0.5 billion.
 Sales overseas: ¥17.4 billion (down ¥2.3 billion (11.8%) year on year)
Sales in North America decreased by ¥2.9 billion mainly due to partial changes in business terms with anOEM partner.
Sales in Europe decreased by ¥0.6 billion mainly due to decreased sales at ISEKI France S.A.S. (a localsubsidiary) in yen terms after foreign exchange translation into yen.
Sales in China increased by ¥0.4 billion thanks to increased shipments of semi-finished rice transplanters.
Sales in ASEAN decreased by ¥0.3 billion primarily due to delays in shipment schedules for Indonesia.
(2) Revenue: increased owing mainly to improvements in the revenue-expenditure structure in domestic
direct dealers, a return to profitability in a production subsidiary in Indonesia, improved profitability
in an equity-method affiliate in China, and ongoing cost reductions.
 Operating income: ¥2.8 billion (up ¥1.1 billion (62.2%) year on year) Ordinary income: ¥3.4 billion (up ¥2.1 billion (167.0%) year on year)
Operating income increased by ¥1.1 billion primarily as a result of improvements in therevenue-expenditure structure in domestic direct dealers and improved revenue in the Indonesian business.
Ordinary income increased by ¥2.1 billion due to an upturn in the share of profit or loss of entities using
equity method and a favorable turn in foreign exchange gains or losses,etc.
 Incomet before income taxes: ¥3.3 billion (up ¥2.3 billion (244.5%) year on year) Profit: ¥2.2 billion (up ¥1.6 billion (296.8%) year on year)
Income before income taxes increased by ¥2.3 billion due to the lack of gain on sales of investment
securities and loss on disaster attributable to the Kumamoto Earthquake recorded in the same period of theprevious fiscal year.

32) Difference (forecast/actual)(1) Net sales: down ¥1.0 billion as compared to the forecast (domestic sales in Japan: down ¥0.2 billion,overseas sales: down ¥0.8 billion)
 Sales in Japan were almost in line with the forecast.
 Sales overseas decreased by ¥0.8 billion in total mainly due to delays in shipment schedules.
(2) Revenue:
 Operating income: up ¥0.9 billion as compared to the forecast
 Ordinary income: up ¥1.2 billion as compared to the forecast
Operating income increased by ¥0.9 billion primarily as a result of improvements in therevenue-expenditure structure in domestic direct dealers and improved revenue in the Indonesian business.
Ordinary income increased by ¥1.2 billion mainly due to an upturn in the share of profit or loss of entities
using equity method from an affiliate in China and a favorable turn in foreign exchange gains or losses.
 Income before income taxes: up ¥1.2 billion as compared to the forecast
 Profit: up ¥0.9 billion as compared to the forecast4II. Revision to the consolidated financial results forecast for the fiscal year ending December 31, 2017and year-end dividend forecast We have revised the consolidated financial results forecast for the fiscal year ending December 31, 2017
announced on February 14, 2017 and the dividend forecast announced on February 27, 2017 as follows.
[Consolidated financial results forecast for the fiscal year ending December 31, 2017](January 1, 2017 through December 31, 2017)(Billions of yen, %)Previous
Latest forecast
Difference
FY ended
forecast for FY
for FY ending Year-on-year(previous/December 31,endingchange
December 31,latest)
2016
December 31,2017
2017
153.1
161.5
7.4
(1.0)
160.5
Net sales
121.0
125.3
3.3
(1.0)
124.3
Domestic
32.136.2
4.1
36.2–
Overseas
Operating income

2.5

3.5

4.0

1.5

0.5

Ordinary income
Profit attributableto owners ofparent

1.6

3.7

4.1

2.5

0.4

0.9

2.7

2.9

2.0

0.2

(Reasons for the revision)
We have made a downward revision of net sales in the amount of ¥1 billion and an upward revision of operating
income in the amount of ¥0.5 billion from the previous forecast, in consideration of the actual financial results
for the six months ended June 30, 2017, the current trends of orders received, foreign exchange rates, and otherfactors. In addition, we have made upward revisions of ordinary income and profit attributable to owners ofparent in accordance with the upward revision of operating income.
* The assumed foreign exchange rates for the second half:¥112 per U.S. dollar (changed from ¥115)¥128 per euro (changed from ¥120)[Year-end dividend forecast for the fiscal year ending December 31, 2017]
Dividend per Share (yen)1Q-end 2Q-end 3Q-end
Year-end
Previous Forecast––– 15.00 - 30.00(February 27, 2017)
Latest Forecast–––30.00(Ref.) Results for the Fiscal Year–––
1.50
Ended December 31, 2016

Total
15.00 - 30.00
30.00
1.50

Note: The Company has consolidated shares of its common stock (one-for-ten share consolidation), effective
July 1, 2017. The amount stated for the year-end dividends per share for the fiscal year ending December
31, 2017 (Forecast) is determined in consideration of the effect of the said share consolidation. The
year-end dividends per share for the fiscal year ending December 31, 2017 (Forecast) not considering theshare consolidation will be ¥3.00.
(Reasons for the revision)
The Company recognizes that the method for determining dividends to be paid to shareholders is one of themost important policies to be made. The Company’s basic policy is to continue making and increase ourdividend distribution, taking into consideration, not just consolidated financial results, but the Group’s financial
position and future business developments as well as changes in the managerial environment.
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With respect to the year-end dividend forecast for the fiscal year ending December 31, 2017, which wasannounced as ¥15.00 through ¥30.00 per share, we plan to pay ¥30.00 per share in consideration of the trends ofGroup’s financial results based on the above policy.
* Explanation on the proper use of financial results forecasts
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 significantly differ from the forecasts, however, as aresult of various factors.

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