May 15, 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 Shiro Tomiyasu
Enquiries:
Title General Manager of Financial Department
Name Yoshikazu Ogusu
Telephone: +81-3-5604-7671
Date of Submission of Quarterly Report:
May 15, 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 Three Months Ended March 31, 2020 (Japanese GAAP)
I. Consolidated Financial Results for the Three Months Ended March 31, 2020 (January 1, 2020－March 31,
2020)
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,
2020
31,960(1,105)(1,281)Net Sales
Operating Income
Ordinary Income
Profit (Loss) Attributable to Owners of(465)
ParentEarnings per Share (yen)(20.58)
Basic
Diluted―Note: Comprehensive income
Three months ended March 31, 2020: ¥(1,319) million [—%]
Three months ended March 31, 2019: ¥(374) million [—%]

(4.2)
―
―

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

―

(456)

%

(20.19)
―

%
(9.5)
―
―
―

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

As of March 31, 2020

As of December 31, 2019

205,176
67,25131.9
2,899.33

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 March 31, 2020: ¥65,539 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: Yes
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
Full Year

—%

Operating
Income%———Ordinary
Income%——ProfitAttributableto Ownersof Parent—%

Earnings
per Share
(yen)

—

—

Note: Revision of the most recently announced financial results forecast: Yes
Given the difficulty of reasonably calculating the consolidated financial results forecast for the fiscal year ending
December 31, 2020, due to the impact that the spread of the novel coronavirus may have on the Company’s businessactivities, the consolidated financial results forecast released on February 14, 2020, has been withdrawn and remains
undetermined. Going forward, the Company will announce the financial results forecasts as soon as it is able tocalculate them.
* 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 March 31, 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 March 31, 2020
379,849 shares
As of December 31, 2019394,565 shares
3) Average number of shares during the period (cumulative total):Three months ended March 31, 2020
22,597,166 shares
Three months ended March 31, 2019
22,590,438 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 ....................................................................................................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) ......................................................................8-1-

1. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation on Results of Operations
During the three months ended March 31, 2020, the Japanese economy has rapidly deteriorated due to the impact of
the spread of the novel coronavirus infection (COVID-19), in addition to a slump in individual consumption following
the consumption tax rate increase in October 2019 and weak corporate performance centered on the manufacturingindustry. Overseas as well, the overall global economy has also rapidly deteriorated and is in a severe situation, mainly
due to expanding lockdowns, including various governments’ restraints on business, in response to the spread of thenovel coronavirus infection (COVID-19).
Under these circumstances, the ISEKI Group continued its initiatives to strengthen the responsiveness to structuralchanges in agriculture in Japan, including 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 three months ended March 31, 2020, were ¥31,960 million, a decrease of ¥1,393 million (4.2%)
year on year. Domestic sales in Japan were ¥25,072 million, a decrease of ¥326 million (1.3%) year on year, as a resultof 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 the novel coronavirus infection (COVID-19), in spite of ongoing steady sales ofmaintenance fees including spare parts and repairs, and an increase in construction of facilities including thecompletion of large-scale construction. Overseas sales were ¥6,887 million, a decrease of ¥1,066 million (13.4%) year
on year. This was due to decreased shipments of tractors owing to a delay in receiving engines purchased for
installation in some products in North America, in which demand had continued to be strong, the effect of currency
exchange rates and a decline in sales from shipment adjustment owing to temporary closures of local distributors’
shops as a countermeasure to the novel coronavirus infection (COVID-19) in Europe, and decreased shipments oftractors in Indonesia in the ASEAN region, despite increased shipments of semi-finished rice transplanters to China
and tractors to South Korea.
In the three months ended March 31, 2020, which is the off-demand season, we recorded loss in all income items
from operating income and below. Operating loss was ¥1,105 million (¥744 million in the corresponding period of theprevious fiscal year), mainly due to the recording of loss on valuation of parts inventory accompanying the delay inreceiving engines purchased for installation, in addition to the decrease in gross profit stemming from revenue decline,
despite a reduction in selling, general and administrative expenses. Ordinary loss was ¥1,281 million (¥1,111 million
in the corresponding period of the previous fiscal year), despite a reduction in the share of loss of entities using equity
method. Loss before income taxes was ¥1,183 million (¥1,161 million of loss before income taxes in the corresponding
period of the previous fiscal year), despite the recording of gain on change in equity accompanying a decrease in ourinvestment ratio in an equity method affiliate in China. Loss attributable to owners of parent was ¥465 million (¥456
million of loss attributable to owners of parent in the corresponding period of the previous fiscal year).
Sales by product are as follows.
[Domestic]
Sales of cultivating and mowing machinery (tractors, high-clearance multipurpose vehicles, among others) were
¥5,734 million (a decrease of 14.9% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥1,753 million (a decrease of 20.6% year on year). Sales of harvesting and processing machinery(combine harvesters, among others) were ¥2,091 million (a decrease of 25.3% year on year). Sales of farming
implements, spare parts and repair fees were ¥8,224 million (a decrease of 5.3% year on year). Sales of otheragriculture-related business (construction of facilities, among others) were ¥7,269 million (an increase of 46.4% year
on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥4,889 million (a decrease of 18.3% year
on year). Sales of planting machinery (rice transplanters, among others) were ¥1,032 million (an increase of 25.3%
year on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥116 million (adecrease of 12.8% year on year). Sales of farming implements and spare parts were ¥655 million (a decrease of 7.1%
year on year). Sales of other agriculture-related business were ¥194 million (a decrease of 37.0% year on year).
(2) Explanation on Financial Position[Assets]
Total assets at the end of the first quarter ended March 31, 2020, increased by ¥7,664 million from the end of theprevious fiscal year to ¥205,176 million. This was mainly due to a decrease of ¥2,409 million in cash and deposits, anincrease of ¥5,941 million in notes and accounts receivable – trade, and an increase of ¥5,258 million in inventories.
[Liabilities]
Total liabilities at the end of the first quarter ended March 31, 2020, increased by ¥9,665 million from the end of theprevious fiscal year to ¥137,925 million. This was mainly due to an increase of ¥10,725 million in short-term loans
payable and long-term loans payable.
-2-

[Net assets]
Total net assets at the end of the first quarter ended March 31, 2020, decreased by ¥2,001 million from the end of theprevious fiscal year to ¥67,251 million. This was mainly due to ¥465 million of loss attributable to owners of parent,a decrease of ¥751 million in valuation difference on available-for-sale securities, and ¥677 million of dividends ofsurplus.
(3) Explanation on Consolidated Financial Results Forecasts and Other Forecast Information
With respect to the consolidated business performance forecast, we will continue to steadily carry out the issues to beaddressed including “Strengthening responsiveness to drastic changes in the agriculture in Japan” and “Expanding
overseas businesses.” However, the spread of the novel coronavirus (COVID-19) has put various restrictions on the
Company’s business activities both in Japan and overseas. In terms of sales, concerns have been raised over the decline
in sales in Japan and overseas due to voluntary restraints put on sales activities including the cancelation of exhibitionsof our domestic sales companies, and the temporary closure of overseas distributors under lockdown and therestrictions on sales activities due to stay-at-home orders. As for production, there is an inherent risk of decreased
production as a result of disruptions in the supply chain both in Japan and overseas. Given the difficulty of calculating
the future business performance forecast due to the reasons described above, the business performance forecast andthe dividend forecast for the fiscal year ending December 31, 2020 (January 1, 2020 through December 31, 2020),
released on February 14, 2020, have been temporarily withdrawn and they remain “Undetermined.” Going forward,
the Company will monitor the situation surrounding COVID-19 and announce the business performance forecasts assoon as it is able to calculate them.
Furthermore, the Group will follow the policies of national and local governments in Japan and overseas, andprioritize the health and safety of our customers, local people, and our employees. In order to prevent the spread of theinfection, we are taking thorough hygiene measures and initiatives including the reduction of staff density at
workplaces by allowing working at home, staggered working hours, and separation of workspaces, as well as
postponing or cancelling group training, exhibitions, factory tours, etc. hosted by the Company. As a company that
supports all the producers that supply our food and agriculture, we will continue business activities while minimizing
the impact of the novel coronavirus infection (COVID-19) on business by taking the prevention measures mentioned
above, and also continue contributing to society as a full-line manufacturer specializing in agricultural machinery.

-3-2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2019 As of March 31, 2020
AssetsCurrent assets
Cash and deposits

8,404

5,994

Notes and accounts receivable - trade

19,67525,617

Merchandise and finished goods

46,42651,491Work in process

6,580

6,797

Raw materials and supplies

1,171

1,149

Other

4,952

4,103

(52)

(60)

87,15995,092

Buildings and structures, net

26,05025,888Land

50,75950,863

Other, net

21,535

21,183

Total property, plant and equipment

98,346

97,935

1,288

1,399

Investment securities

5,303

4,223

Other

5,542

6,691

Allowance for doubtful accounts

(128)

(165)

Total investments and other assets

10,717

10,749110,352

110,083

197,511205,176

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 March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade22,14224,017

Electronically recorded obligations - operating
Short-term loans payable

15,61028,633

14,34540,247

Current portion of long-term loans payable

10,717

12,467

Income taxes payable

356

124

Provision for bonuses

443

800

Other

11,83010,096

Total current liabilities

89,735102,098

Non-current liabilities
Long-term loans payable

21,525

18,887

Deferred tax liabilities for land revaluation

5,759

5,759

Provision for directors’ retirement benefits

140

133

Net defined benefit liability

3,059

3,212

Asset retirement obligations
Other

325
7,713

326
7,506

Total non-current liabilities
Total liabilities

38,524
128,259

35,826
137,925

Capital stock
Capital surplus

23,344
13,452

23,344
13,449Retained earnings

17,025

15,882

Treasury shares

(982)

(945)

52,84051,732

380
(0)

(370)
(1)

12,622

12,622Foreign currency translation adjustment

648

568

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

14,64113,807

Subscription rights to shares

Total accumulated other comprehensive income

7541

Non-controlling interests

1,694

1,669

Total net assets
Total liabilities and net assets

69,252
197,51167,251
205,176-5-

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
For the Three Months Ended March 31, 2020
(Millions of yen)Three months ended
March 31, 2019

Three months ended
March 31, 2020

Net sales

33,35331,960

Cost of sales

23,722

22,936Gross profit

9,630

9,024

Selling, general and administrative expenses

10,375

10,129(744)(1,105)

Operating loss
Non-operating income
Interest income

61

59

Dividend income

18

16

Other

233

166

Total non-operating income

313

241

Interest expenses

172

153

Share of loss of entities accounted for using equity method

364

70

Foreign exchange losses

48

92

Other

94

100

Total non-operating expenses

680

417

(1,111)(1,281)Gain on sales of non-current assets

85Gain on change in equity―

123

Total extraordinary income

8129

Loss on sales and retirement of non-current assets

45

32

Impairment loss

12─Total extraordinary losses

57

32

Loss before income taxes(1,161)(1,183)

Income taxes - current

152

91

Income taxes - deferred

(847)

(789)

Total income taxes

(694)

(697)

Loss

(466)

(485)

(9)

(20)

(456)

(465)

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, 2020
(Millions of yen)Three months ended
March 31, 2019
Loss

Three months ended
March 31, 2020

(466)

(485)

104

(751)

0

(1)

(56)

30

3

(0)

40

(111)

91

(834)

(374)

(1,319)(364)(1,298)

(10)

(21)

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
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-8-