Financial Results for the Third Quarter
Fiscal Year Ending December 2018
Investor Relations Presentation Materials
ISEKI & CO., LTD.
Shirou Tomiyasu,
Director & Executive Vice President
November 15, 2018

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

Index１．Outline of Financial Results for the Third Quarter
Fiscal Year Ending December, 2018
２．Recent Development in Domestic
and Overseas Markets
３．Performance Forecast for the
Fiscal Year Ending
December, 2018
４．Topics
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20182

１．Outline of Financial Results for the Third
Quarter Fiscal Year Ending December, 2018

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

*The Third Quarter Financial Results Highlights
January – September (Y o Y)
Sales of agricultural machinery decreased year-on-year.
Effects from revenue – expenditure structural reform continued.

Domestic dealers
Manufacturingsubsidiary inIndonesia□ Sales of agricultural machinery : (Jan.-Sep.) 97%□ Effects from revenue-expenditure structural reform in direct dealers:
operating income +¥0.2 billion

As the company, revenue and expenses were balanced due todeclined sales in ASEAN segment
Overall business also remained in line with the previous year
□ Revenue of Indonesia business improved: operating Income±¥0 billion(PT ISEKI INDONESIA)(Consolidated basis including Indonesia business of the parent and plants in Japan)

Equity-method
affiliate in China

Market remained depressed. Deteriorated share of profit or loss ofequities using equity method.

(Dong Feng China)□ Share of profit or loss of equities using equity method: Effect on ordinary
income -¥1.1 billion

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20184

Outline of Third Quarter Business Performance
Due to transition of fiscal year 9 month period results December 2015 are adjusted to 12 month period(JPY bn,%)

3Q of FY
ended
※ Dec.15

3Q of FY
ended
Dec.16

3Q of FY ended
Dec.17

ActualActualActual％Actual％Net Sales

117.7

118.4

120.5

100.0

119.2

100.0

(1.3)

(Domestic)

93.0

91.9

94.3

78.3

93.9

78.8

(0.4)

(Overseas)

24.7

26.5

26.2

21.7

25.3

21.2

(0.9)

Operating Income

1.1

2.8

4.6

3.8

3.6

3.0

(1.0)

Ordinary Income

0.9

1.6

5.4

4.5

2.8

2.3

(2.6)

0.7

3.3

2.8

2.2

1.8

(1.1)

Profit (Loss) attributable toowners of parent

3Q of FY
ending Dec.18

yoychangeExchange

US$

119.9

109.6

112.0

109.4

(2.6)

rate

Euro

135.8

122.9

123.7

131.5

7.8

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

5

Domestic Sales≫While demand for agricultural machinery remained weak, sales werecompensated by revenue from farming implements, spar parts & repair fees.
Due to transition of fiscal year 9 month period results December 2015 are adjusted to 12 month period(JPY bn)

3Q of FY
ended Dec.16

3Q of FY
ended Dec.17

3Q of FY
endingDec.18ActualActualActualActualCultivating &Mowing Machinery

22.7

21.3

22.5

21.1

(1.4)

Tractors：(1.2)

Planting Machinery

7.8

7.4

6.6

7.4

0.8

Rice trans planters: 0.6

Harvesting &Processing Machinery

14.2

14.3

13.9

13.8

(0.1)

Total

44.7

43.0

43.0

42.3

(0.7)

Farming Implements

13.8

14.9

15.5

16.0

0.5

Spare parts

10.5

10.9

11.2

11.3

0.1

Repair fees

3.6

3.9

4.1

4.2

0.1

Total

27.9

29.7

30.8

31.5

0.7

Total

72.6

72.7

73.8

73.8

0.0

Construction of Facilities

4.6

4.3

5.6

5.0

(0.6)

Others

15.8

14.9

14.9

15.1

0.2

Total

93.0

91.9

94.3

93.9

(0.4)

3Q of FY
ended Dec.15

Agricultural Machinery

Agricultural Machinery Related※yoychangeNote

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20186

Overseas Sales≫Sales decreased due to local inventory adjustment in China andASEAN
Due to transition of fiscal year 9 month period results December 2015 are adjusted to 12 month period
3Q of FY
ended
Dec.15※

3Q of FY
ended
Dec.16

3Q of FY
ended
Dec.173Q of FY
endingDec.18ActualActualActualActual(JPY bn)yoychangeNote
Disappearance of the effects ofpartial changes in businessterms with OEM partner
Tractors：2.1

North America

9.6

9.4

6.0

8.3

2.3

Europe

9.3

7.5

8.5

8.4

(0.1)

China

1.0

2.4

3.0

1.0

(2.0)

Local inventory adjustment
Rice trans planters：(1.6)

ASEAN

1.0

2.5

3.3

2.5

(0.8)

Combine harvesters：(1.0)

Others

1.4

1.6

2.1

1.4

(0.7)

Product Sales Total

22.3

23.4

22.9

21.6

(1.3)

Parts & Others

2.4

3.1

3.3

3.7

0.4

Total

24.7

26.5

26.2

25.3

(0.9)

Overseas Sales incl.
Chinese Businesses

31.2

30.9

29.3

29.1

(0.2)

Ratio of overseas net sales

25.1%

25.2%

23.7%

23.6%

(0.1%)

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20187

Operating Income≫ Operating income decreased because of temporary factors such as unprofitable construction of facilities
and expenses resulting from the application of the principle of calculating retirement benefits upon the mergerof subsidiaries, as well as increased development costs ,in addition to a decrease in gross margin due todecreased revenue.
(JPY bn,%)
3Q of FY
ended
Dec.173Q of FY
endingDec.18ActualActualNet Sales

120.5

119.2

(1.3)

Gross Profit

36.0

35.4

(0.6)

【Factors of YoY change(JPYbn,)】
3Q of FY
ended
Dec.17yoy
Change※1 Unprofitable
construction offacilities※2
Retirement benefit
burdenS.G&A.Expenses

31.4

31.8

0.4

Personnel
expenses

18.4

18.7

0.3

Other
Expenses

13.0

13.1

0.1

Increase SG & A

4.6

3.6

(1.0)

Other

Operating
IncomeNet sales

Cost ofsales

S.G&A.
Expenses

Operating
Income

0.0

(0.1)

0.0

(0.1)

(0.7)

Effects from revenueexpenditure structuralreform in direct
dealers
Accompanied by adecrease in sales

0.2
(0.4)

Gross profit

3Q of FY
endingDec.18【Effects of forex move(JPYbn,)】(0.2)

Increased
development cost

29.9%

(0.2%)(0.2)※3

Gross Profit
Margin

29.7%

4.6

(0.4)
0.7

3.6

※1：Unprofitable construction of facilities leads to worsing gross profit.
※2：Temporary resulting from the application of the principle of calculating
retirement benefits upon the merger of subsidiaries.
※3：Increased development cost for products comply with the emission
gas regulation,Stage 4

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20188

Ordinary Income, Quarterly Net Income≫Ordinary income decreased due to deteriorated share of profit orloss of equities using equity method as a result of a market slow
down.
(JPY bn)
3Q of FY
ended
Dec.173Q of FY
endingDec.18ActualActualyoy
ChangeNon-operating Income(Y o Y)
Foreign exchange gains
or losses-¥0.1 billion-¥1.1 billion-¥0.3 billion

4.6

3.6

(1.0)

Balance of Financial Income

(0.5)

(0.6)

(0.1)

Share of profit or loss ofentities using equity
methodOther Non-operating Income

1.3

(0.2)

(1.5)

Other ※1

Ordinary Income

5.4

2.8

(2.6)

※1：disappearance of subsidy income recorded in thesame period of the previous fiscal year.

Extraordinary Income

0.1

0.1

0.0

[Share of profits or loss using equity method] (JPY bn)

Extraordinary Losses

(0.6)

(0.1)

0.5

Income before Income
Taxes

4.9

2.8

(2.1)

Taxes, Deferred Taxes

(1.6)

(0.6)

1.0

Profit(Loss) attributable toowners of parent

3.3

2.2

(1.1)

Operating Income

3Q of FY
ended Dec.17

3Q of FY
ending Dec.18

yoy
Change

0.4

(0.7)

(1.1)

・tax expenses reduced due to the applicationof consolidated taxation system

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 20189

Balance Sheet (Consolidated)≫Notes and accounts payable-trade decreased owing to production volume
decrease(JPY bn,)

As of
Sep.17

As of
Sep.18yoychangeAs of
Sep.17

As of
Sep.18yoychangeCash & Deposits

8.5

7.8

(0.7)

Accounts Payables

46.4

42.8

(3.6)

Accounts Receivables

36.8

36.0

(0.8)

Interest Bearing Liabilities

74.2

75.1

0.9

Inventories

55.3

54.5

(0.8)

（loans payable）

67.1

68.8

1.7

（Merchandise and finished goods）

47.6

46.6

(1.0)

Other Liabilities

23.8

22.2

(1.6)

Other Current Assets

4.8

4.4

(0.4)

144.4

140.1

(4.3)

Total Current Assets

105.4

102.7

(2.7)

Net Assets

Non-current Assets

96.2

97.9

1.7

70.5

71.4

0.9

Investments and other assets

13.3

10.9

(2.4)

(Retained earnings)

17.0

18.1

1.1

(Investment securities)

6.6

6.0

(0.6)

(Valuation difference on
available-for-salesecurities)

1.5

1.1

(0.4)

Total Non-current Assets

109.5

108.8

(0.7)

(Foreign currencytranslation adjustment)

1.0

0.9

(0.1)

Total Assets

214.9

211.5

(3.4)

Total Liabilities and Net
Assets

214.9

211.5

(3.4)

Total Liabilities

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201810

Self-equity ratio/ Interest bearing liabilities≫Balance of Interest bearing liabilities and D/E ratio stayedin the same level Y o YBalance of Interest Bearing Liabilities (JPY bn))

Equity Ratio (%))

14/9

15/9

16/9

17/9

17/12

18/9

loan payable,corporate
bond

46.2

63.1

69.7

67.1

59.6

68.8

Lease obligations

8.0

9.2

8.5

7.1

6.7

6.3

Total

54.2

72.3

78.2

74.2

66.3

75.1

D/E Ratio

0.79

1.05

1.19

1.05

0.94

1.05

Note: D/E Ratio= Interest bearing liabilities(incl. Lease liabilities) / Net assets
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201811

2.Recent Development in Domestic andOverseas Markets

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

Trend of Domestic Market≫Market demand remains flat but bearish
Agricultural machinery demand [Industry shipment](9 principal machinery, moving annual total)(JPY bn,)

4th emission gas regulation

300

76-177PS(17/Sep.)
▼
280

260

240

220

200
Mar.

Jun.

Sep.
2015

Dec.

Mar.

Jun.

Sep.
2016

Dec.

Mar.

Jun.

Sep.

Dec.

2017

Mar.

Jun.

Sep.

2018

*Source: Japan Agricultural Machinery Manufacturers Association

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201813

Domestic Agricultural Machinery Shipments
and ISEKI’s Performance≫Actual sales of our 9 models (moving year total) were the sameas the previous year
YoY growth rate for 9 principal machinery categories (moving annual total) *ISEKI estimates

FY2015/9

Industry(Amount of shipment)

ISEKI(Sales amount)

FY2016/9(%)

FY2017/9

FY2018/9

76% 100% 104%

96%

89%

98%

98%

96%

Domestic sales companies State of sales of agricultural machinery (YoY growth rate)(%)

Jan.- Mar. Apr.- Jun. Jul.- Sep. Apr.- Sep.

Sales amount

96%

101%

94%

97%

Oct.
104%

* Sales indicate sales amount of agricultural machinery by 12 sales companies as converted into quoted values.
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

14

Trend in Domestic Market

Future Investment Strategy 2018
- Transformation to “Society 5.0”, “Data-driven society”Agricultural Sector: Reforms extending to entire agriculture, forestry and fisheries
industries and realization of smart agriculture, forestry and fisheries industries◆ State of major progresses of KPI
2025

Almost every bearer farmer practices agriculture by using
data

2023

80% of the entire agricultural land area is utilized by bearers⇒55.2% at the end of 20172023

40% reduction in rice production cost for bearers compared with2011 ⇒32% in 20162019

Accomplish export amount of 1 trillion yen of agriculture, forestry
and fisheries products/ foods ⇒807.1 billion yen in 2017
*Source: Extract from Future Investment Strategy 2018

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201815

Trend in Domestic Market≫ Powerful promotion toward realization of smart agriculture, forestry and fishery industries⇒ Request for budgetary appropriation for demonstration projects of smart agricultural
machinery (5.0 billion yen)

Outline of demonstration projects for acceleration of smart agricultural machinery<Points of counter measures>
In order to advance societal implementation of “smart agriculture”, provide support to engagements toconstruct state-of-the-art technologies systematically from production to shipment, conduct
experimental studies in consistent manner and to establish optimum technical system.

<Policy target>
Almost every bearer farmer practices agriculture by using data (by 2025)<Project image> Example of a smart demonstration farm of large scale paddy field operation
Businessmanagement

Ploughing/levelingTransplanting/di
rect planting

Watermanagement

Businessmanagement system

Self-steering tractor

Self-driven ricetransplanter

Automatic water
management system

Cultivation
management

Harvesting

Remote sensing using
Proper harvestingdrone
management by yield combine

Study optimum technical system by analyzing both technical and managerial aspects based on the data

Establishment of optimum technical system by introduction of state-of-the-art technologies*Source: Reedited for our use the outline of the request for agriculture, forestry and fishery budgetary appropriation for FY 2019

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201816

Domestic Our Engagement≫ ISEKI ICT SOLUTION
Provide solution to agricultural issues by integrating state-of-the-art technologies

ISEKI SENSING TECHNOLOGY• Sensing state of growth of crops byusing sensors, etc.
(Highly accurate precision agriculture)

ISEKI DREAM PILOT (Auto-steering)• Assist operational steering according
to positional information(labor saving, high precision
operation)
ISEKI AGRI MANAGEMRENT SYSTEM

Easy to understand proposal of lineupof ISEKI’s smart agriculture• Visualize by coordinating various datafor uniform management(High precision business management,
agri-business management)

By accumulating information visually, support enhanced productivity of agriculture
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201817

Domestic Our engagement≫Propose <integrated system fully using data> from tillage until drying preparation
Our engagement in open innovation matches to the project
ISEKI smart agricultural machinery paddy field integrated system
Support Japanese agriculture

High accuracy
precision
agriculture

Ploughing/levelingTransplanting/direc
t planting

Cultivation
management

Harvesting

After harvesting

Tractor traveling assist

Variable fertilizing ricetransplanter

Speed sensitive fertilizing multi
purpose vehicle

Yield combine

Mail transmission ofoperational status

Smart yield
management

Other companies:
Guidance system

Other companies: Water
temperature sensor data
Drone/satellite image

First-rank rice
Enhanced quality

Robot tractor(Developing)Labor saving/High precision
operation★Manned monitored type
Scheduled sales in
December, 2018

Robot rice transplanter

Smart fertilizing

Robot combine(Developing)(Developing)(Developing)

Straight-travel assisted
rice transplanter

Travel assisted multipurpose vehicle(Developing)<(Example) Operational data by yield combine>
Operation record
Operator

Yoshizaki

Operationhours

14:00-15:30

Machine

HJ6123
Yield combine

Measurement

At harvestingSensing data of other companies

Agri-business
management system

Harvesting result

Agri-business
Management
agri-note

Send data from each maker to agri-note

Harvestedweight2675kg (590kg/10a)

Dried weight

2499kg (540kg/10a)

Averagemoisture

21.7%

Sales of robot tractor (manned monitored type) are scheduled in December, 2018
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201818

Latest trends of product sales in overseas≫Sales were less than the previous year due to local inventory adjustment in North
America, ASEAN and China(JPY bn)

17/ Dec. Result31.1 billion yen

350

300

250

200

Sales (Forecast)
28.5 billion yen

150

18/Dec. Forecast(Announced on
August 8)
28.4 billion yen

100

50

0
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

*Product base, excluding “parts, others”

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201819

Market Trend (North America)≫ Sales by AGCO outperformed the market. Promote further sales expansion
by reinforced product competitiveness1. Trend in the market
Category (PTO HP)(1000 units, %)Compact tractors(40HP and lower)
USA

CanadaJan.-Sep.2017

112

10

Jan.-Sep. 2018122

Differences (%)

110%

Large class tractors(100PS and above)

Utility tractors(40HP - 100HP)

USA

Canada

48

12

2

14

4

48

13

2

15

100%

101%

109%

108%

108%

USA

Canada

122

44

4

11

133

44

104%

109%

101%

(Source: AEM Statistics)

2. Situation of AGCO (OEM partner)

Consolidated net sales (ISEKI to AGCO)(JPY bn)

6

Unit sales (Jan.-Sep.2018)
Compact tractors
Utility tractors

9.1 billion yen

5: YoY 118%
: YoY 116%

4

10.7 billion yen

Change in business terms

3.1

3

2.5 2.5

3.1
2.5[Forecast]

2.7 (2.4)

2
1

3. Our situation for sales and orders

1.00

Order & shipment (Jan.-Dec. 2018) : YoY

129%

1Q

2Q

3Q

4Q

FY 2017/Dec.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

1Q

2Q

3Q

4Q

FY 2018/Dec.

20

Market Trend (Europe)≫ Our sales are expected to exceed the previous year as a result of
reinforced product competitiveness and sales promotion efforts
1. Trend in the market
Demand in landscaping market has been affected by delayed start-up of spring
season due to low temperature as well as unfavorable lawn growth condition.
2. Situation of distributors
 Unit sales (Jan.-Sep.2018)

Consolidated net sales (Europe)
10.7 billion yen• Distributors

11.4 billion yen: YoY 96%

(Unit sold base)• ISEKI France S.A.S.
(Consolidated subsidiary, amount base)[Forecast]: YoY 104%

3. Current sales and orders at ISEKI
Order & Shipment (Jan.-Dec.2018) : YoY 128%

FY 2017/Dec.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

FY 2018/Dec.

21

Market Trend (ASEAN: Thailand)≫Sales competition in the market has been intensified

1. Trend in the market
While farm product price remains stable, economic condition in farmers their purchasing
motivation is sluggish.
2. Situation of the local distributor “IST Farm Machinery” (Investment 80% by Mitsubishi Corporation, 20% by ISEKI)

Number of units sold (ASEAN strategy tractor, Jan.-Sep.): YoY 82%

3. Current sales and orders at ISEKI
Order & Shipment (Jan.-Dec.2018) : YoY 71%

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201822

Market Trend (ASEAN: Others)≫ We assume a partial shift in the tender in Indonesia from paddy field farming to
dry field farming. We try to acquire orders by introducing machinery suitablefor dry field farming.

■ Indonesia
 Market trend
Promotion of mechanization by government initiative from 2015 (Government tender) Our situation
Machine models for the tender vary each fiscal year. Tractors and walk-behind rice transplanters
increased from the previous year.
In anticipation of the market expansion, we started establishment of a supply system of repair parts in
ISEKI Thailand .

■ Others (Myanmar, etc.)
 Market trend
Demand is expected to increase in the progress of
mechanization
 Our situation
Sales of combine harvesters in Myanmar have grownsteadily.
Try to expand business with IST Farm Machinery and
AGCO encompassing regional extension to Cambodia
and Laos, etc.

Consolidated net sales (ASEAN)
4.8 billion yen

3.7 billion yen[Forecast]

FY 2017/Dec.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

FY 2018/Dec.

23

PT. ISEKI INDONESIA (Manufacturing subsidiary)≫ Consolidated the systems for increased production.
We promote further reinforcement to make profit in overseas business.
*2018 includes(Units, JPY bn)
2018
2014
Results

2015
Results

2016
Results

2017
Results

Production
Volume

1,100

3,900

7,300

Operatingincome

(0.3)

(0.4)

(0.3)

20,000

Annualforecast

Jan. – Sep.

8,400

10,000

7,100

0.3

0.1

0.0

≪Trend of production volume≫

20,00015,00015,00010,00010,0008,400

Expansion of
production capacity

7,300
5,000

3,900
1,100

0
2014

2015

2016

2017

2018

2019

2021

[Forecast][Plan]］[Plan]］

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201824

Market trend (China)≫ Basic trends remained inactive due to the effects of delayed announcement of
distribution of subsidy by Chinese government (behind by 2 months from ordinary
years) as well as low price of rice and wheat.

1. National government subsidy(Yuan bn)

2012

2013

2014

2015

2016

2017

2018

21.5

21.75

23.8

23.8

23.7

18.6

18.6

2. Trends in agricultural machinery industry Jan.-June. 2018 (Y o Y, Units)(%)* Industry

Dongfeng Iseki

Rice transplanter(Walk-behind, Ride-on)

(33%)

(23%)

Combine harvester(General- purpose, Self-threshing)

(26%)

＋ 62%

Tractor (70-110hp)

(23%)

＋ 65%

* (Source) China Agricultural Machinery Industry Association

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201825

Trends in Overseas Markets (China: Dongfeng Iseki)≫Intensified sales competition in the midst of sluggish market.

1. Situation of Dongfeng Iseki■Net sales of Dongfeng Iseki (local currency base)■Sales situation of Donfeng Iseki (Jan.-Sep. 2018)(RMB million)300

 In domestic sales in China, sales of ricetransplnters decreased .

250
200

192

 In terms of export to ASEAN, combine
harvesters directed to Indonesia
decreased.

188

180
128

150

82

100

72

40
50
0
1Q

2Q

3Q

FY2017/Dec.

4Q

1Q

2Q

3Q

FY2018/Dec.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201826

Reinforcement of a organization in Dongfeng
Iseki Agricultural machinery

Reinforce a development, manufacturing, sales,
after sales service systems together with DongfengGroup

Personnel refreshment

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201827

3.Performance Forecast For the Fiscal
Year Ending December, 2018

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

FY December, 2018 Forecast of Consolidated Business Performance≫Operating income: Gross profit decreased due to declined sales
Ordinary income :Deteriorated share of profit or loss of equities using equity method＜ Consolidated business forecast ＞(JPY bn)

FY endedDec.17

FY endingDec.18FY endingDec.18ActualPrevious
forecast

Latest forecastyoyprevious /latest forecast

158.4

158.0

155.0

(3.4)

(3.0)

(Domestic)

123.1

125.2

121.9

(1.2)

(3.3)

(Overseas)

35.3

32.8

33.1

(2.2)

0.3

Operating Income

4.0

4.5

3.2

(0.8)

(1.3)

Ordinary Income

4.2

4.3

2.6

(1.6)

(1.7)

Profit attributableto owners of parent

2.8

3.2

1.4

(1.4)

(1.8)

Net Sales

Diff.

※Previous forecast：announced on Aug8 Latest forecast：announced on Nov12
・ The assumed foreign exchange rates for the fiscal year:¥110 per U.S. dollar(unchanged),¥130 per euro(unchanged)＜ Dividend forecast ＞

Year-end Dividend(yen)FY ended Dec.17
ActualFY endingDec.18 forecast(announced on Feb13)30

30

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201829

Forecast of domestic sales≫Reflecting a decrease in sales of agricultural machineryand construction of facilities(JPY bn,)

Latest forecast：announced on Nov12

FY endedDec.17

FY endingDec.18FY endingDec.18ActualPrevious forecast

Latest forecastyoyprevious /latest forecast

Cultivating &Mowing Machinery

28.2

28.4

26.4

(1.8)

(2.0)

Planting Machinery

8.5

9.1

9.2

0.7

0.1

Harvesting &Processing Machinery

20.4

20.5

20.3

(0.1)

(0.2)

Total

57.1

58.0

55.9

(1.2)

(2.1)

Farming Implements

19.7

21.2

20.5

0.8

(0.7)

Spare parts

14.7

14.9

14.9

0.2

0.0

Repair fees

5.4

5.5

5.6

0.2

0.1

Total

39.8

41.6

41.0

1.2

(0.6)

Total

96.9

99.6

96.9

0.0

(2.7)

Construction of Facilities

6.6

6.2

5.4

(1.2)

(0.8)

Others

19.6

19.4

19.6

0.0

0.2

Total

123.1

125.2

121.9

(1.2)

(3.3)

Agricultural Machinery

Agricultural Machinery Related※Previous forecast：announced on Aug8

Diff.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201830

Forecast of overseas sales≫Almost in line with the previous forecast※Previous forecast：announced on Aug8

(JPY bn,)

Latest forecast：announced on Nov12

FY endedDec.17

FY endingDec.18FY endingDec.18ActualPrevious
forecast

Latest forecastyoyprevious /latest forecast

North America

9.1

10.7

10.7

1.6

0.0

Europe

10.7

11.1

11.4

0.7

0.3

China

3.8

1.1

1.0

(2.8)

(0.1)

ASEAN

4.8

3.9

3.7

(1.1)

(0.2)

Others

2.7

1.6

1.7

(1.0)

0.1

Product Sales Total

31.1

28.4

28.5

(2.6)

0.1

Parts & Others

4.2

4.4

4.6

0.4

0.2

Total

35.3

32.8

33.1

(2.2)

0.3

Diff.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201831

４．Topics

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 2018

Reinforced responses to domestic agriculture≫Expansion of sales/service system <Block Strategy>

Present Consolidated sales companies
Wide area 10, Single prefecture 2

As of January 1, 2019
Wide area 8, Single prefecture 2

Iseki-Hokkaido

January 1, 2019

Iseki-Tohoku

Iseki-Shinetsu
Gunma Iseki Sales
Iseki-Hokuriku

Iseki-Kanto

Iseki-Kanto-Koshinetsu

Iseki-Chugoku

Iseki-Tokai
Mie Iseki Sales
Iseki-Kyushu

Iseki-Kansai
Iseki-Shikoku

Iseki-Kansai-Chubu
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201833

Reinforced responses to domestic agriculture≫ Expansion of sales/service system <Block Strategy>

Domestic agricultural
structure

By merger, expanding strengths of both companies≫Large scaling≫Crop conversion≫Decreasing
agricultural
population, aging≫Establish sales service system withenhanced response capability to changing
market situation and client needs≫Enhanced management efficiency, effective
use of management resources

In future,≫Structural changes
will be accelerated

Strengthened response to changes
Strengthened earnings structure

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201834

Job Streamlining ProjectWorking style reform
Job streamlining- Enhanced productivity –Establish job streamlining project
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201835

Job Streamlining Project

Job streamlining
As one of the basic management policies,
engage with the entire company
Complete elimination of jobs which are
unreasonable/useless/inconsistent

Enhance profitability
Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201836

Notes on the Future Forecast• The objective of this presentation document is to provide information and never intends to induce
any action.
• The document was created by ISEKI with currently available information and it involves potential
risks and uncertainties. The forecast may not be consistent with actual results depending on
fluctuation of the economic situation and market trends.
• In using this information, investors are expected to depend on their own judgment. ISEKI is notliable for any losses incurred by investment decision made utilizing the business forecast or
targets given in this document.

ISEKI group is a promotional partner of FOOD ACTION NIPPON.

ISEKI Group joins the nationwide action called “COOL CHOICE”
run by the Ministry of the Environment Government of Japan,
which promotes to make ”smart choices” for the global warming.
As a proposal of “smart choices”, we develop and deliverenvironmental-friendly products like “eco products”.

Financial Results Briefing for the Third Quarter Fiscal Year Ending December 31, 201837