August 10, 2016
Name of Listed Company: ISEKI & CO., LTD.
Stock Exchange Listings: Tokyo
Company Code:6310 (URL http://www.iseki.co.jp)
Representative: Title President
Name Eiichiro Kinoshita
Enquiries:
Title Corporate Officer and General Manager of Financial Department Name Kazuma Takahashi
Telephone: +81 3 5604 7709
Date of Submission of Quarterly Report:
Scheduled Date to Commence Dividend Payment:
Supplementary Information for Quarterly Financial Results:

August 10, 2016—
Yes

Quarterly Financial Results Briefing:

Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Six Months Ended June 30, 2016 (Japanese GAAP)
I. Financial Results for the Six Months Ended June 30, 2016 (January 1, 2016－June 30, 2016)
A. Results of Operations(Rounded down to a million yen, % indicates changes from the previous period)

Six Months Ended
June 30, 2016
81,047
1,751
1,264
553

Six Months Ended
September 30, 2015
77,576
885
1,269
(717)

%

%

Net Sales—(5.9)
Operating Income—(15.5)
Ordinary Income—(14.5)
Profit (Loss) Attributable to Owners of Parent—―
Profit (Loss) per Share (yen)(3.18)
Non-diluted
2.45
Fully Diluted
2.45―
Note: Comprehensive income
Six months ended June 30, 2016: -¥2,114 mil. (—%)
Six months ended September 30, 2015: -¥1,268 mil. (―%)
The fiscal year of the Company, previously from April 1 to March 31 of the following year, has been changed to
January 1 to December 31 of the year, effective as of the fiscal year ended December 31, 2015. Accordingly, theyear-on-year changes are not given for the second quarter of fiscal 2016 (January 1, 2016 to June 30, 2016) since theperiod is different from the first six months of the previous fiscal year (April 1, 2015 to September 30, 2015).
B. Financial Position(Rounded down to a million yen)

As of June 30, 2016
Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio (%)
Net Assets per Share (yen)Reference: Shareholders’ equity
As of June 30, 2016: ¥63,955 mil.
As of December 31, 2015: ¥66,380 mil.

209,984
65,641
30.5
283.14As of December 31, 2015
201,149
68,09933.0
293.87

II. Dividends(Yen)
End of 1Q
FY Ended December 31, 2015
FY Ending December 31, 2016
FY Ending December 31, 2016
(Forecast)——

Dividend per Share
End of 2Q
End of 3Q———

Year-end
1.50

—

1.50–
3.00

Annual
1.50
1.50–
3.00

Note: Revision of the most recently announced dividend forecast: NoneIII. Forecast for the Fiscal Year Ending December 31, 2016 (January 1, 2016－December 31, 2016)(Rounded down to a million yen, % indicates changes from the previous period)
Net Sales%

Operating
Income%Ordinary
Income%ProfitAttributableto Owners of
Parent%Profit per
Share
(yen)

161,500
—
3,500
—
3,200
—
1,900
—
8.41
Note: Revision of the most recently announced performance forecast: Yes
Due to the change in the fiscal year of the Company, the fiscal year ended December 31, 2015 is a nine-month period
from April 1, 2015 to December 31, 2015. Because year-on-year comparisons are impossible, percentage changes
year on year are left blank.
Full Year* Notes
A Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None
B Adoption of unique accounting method for preparing the quarterly consolidated financial statements: None
C Change in accounting policy, change in accounting estimates and restatements
1) Change in accounting policy in response to revision of accounting standards: None
2) Change in accounting policy other than 1):
None3) Change in accounting estimates:
None4) Restatements:
None
D Outstanding shares (common shares)
1) Outstanding shares (including treasury shares) As of June 30, 2016
229,849,936 shares
As of December 31, 2015
229,849,936 shares
2) Outstanding treasury shares
As of June 30, 2016
3,968,386 shares
As of December 31, 2015
3,964,166 shares
3) Average number of shares during the period
Six months ended June 30, 2016
225,883,820 shares
Six months ended September 30, 2015 225,888,444 shares*Statement regarding implementation of the quarterly review procedure
Although the summary of quartely financial results is exempt from the quarterly review procedure required
under the Financial Instruments and Exchange Act, we have completed the review procedure of the financial
statements at the time of disclosure.
*Statement regarding the proper use of financial performance forecast and other notes
The forecast for operating results has been determined based on information presently available, as well as on
the assumptions that the Company believes to be reasonable. It is possible that in the future, actual results may
differ from the anticipated figures for a variety of reasons. Please refer to “1. Qualitative Information Regarding
Financial Results for the Period” on page 2 of the supplementary material for the assumptions underlying theforecast and precautions when using the forecast.

 Table of contents for supplementary material
1. Qualitative Information Regarding Financial Results for the Period .....................................................2(1) Explanation Regarding Business Performance .................................................................................2(2) Explanation Regarding Financial Position .......................................................................................2(3) Explanation Regarding Forward-looking Statements Including Consolidated
Performance Forecast .......................................................................................................................2
2. Matters Concerning Summary Information (Notes)...............................................................................3(1) Changes in Important Subsidiaries during the Period ......................................................................3
3. Consolidated Financial Statements ........................................................................................................4(1) Consolidated Balance Sheets ............................................................................................................4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .......6(3) Consolidated Statements of Cash Flows ..........................................................................................8(4) Notes Regarding the Consolidated Financial Statements ...............................................................10(Notes Regarding the Going Concern Assumption) .......................................................................10(Notes Regarding Significant Changes in Shareholders’ Equity) ...................................................10-1-

1. Qualitative Information Regarding Financial Results for the Period(1) Explanation Regarding Business Performance
During the six months ended June 30, 2016, the Japanese economy reached a turning point in corporate earnings andbusiness confidence due to the strong yen from the beginning of the year and the continued weakness in the recoveryof consumer spending. Furthermore, although the European and U.S. economies remain on a robust recovery trend
on the back of a rise in consumer spending and improvements in the employment situation, there is uncertainty over
the outlook of the world economy due to the continued deceleration of growth of the Chinese economy since lastyear and the U.K.’s decision to leave the EU.
With regard to the environment surrounding agriculture in Japan, the demand environment remained at a low level,
despite a rise in the price of last year’s rice.
Under such circumstances, the ISEKI Group continued its efforts to increase sales volume in Japan by launching
new products and enhancing customer service, while it endeavored to expand sales overseas in its core markets ofNorth America, Europe, China and the ASEAN region by strengthening marketing. As a result, the Group’s businessperformance can be summarized as follows.
Note: The fiscal year of the Company, previously from April 1 to March 31 of the following year, has been changed
to January 1 to December 31 of the year, effective as of the fiscal year ended December 31, 2015. Accordingly, theyear-on-year changes are not given for the second quarter of fiscal 2016 (January 1, 2016 to June 30, 2016) since theperiod is different from the first six months of the previous fiscal year (April 1, 2015 to September 30, 2015).
During the six months ended June 30, 2016, net sales totaled ¥81,047 million. Domestic sales amounted to ¥61,307
million, mainly as a result of the increase in sales of farming implements, parts, repair fees and construction offacilities, despite a year-on-year decrease in sales of agricultural machinery. Overseas sales amounted to ¥19,739
million reflecting an increase in shipments of semi-finished rice transplanters due to the recovery of the Chinese
market, as well as strong shipments of semi-finished tractors, the full-scale sale of which started from this fiscal
year.
Operating income totaled ¥1,751 million due to a significant reduction in fixed costs through full enforcement of
low-cost operations.
Ordinary income was ¥1,264 million due to the recording of foreign exchange losses.
Profit attributable to owners of parent ended at ¥553 million, reflecting the recording of extraordinary income andlosses including a loss on disaster and a gain on sales of investment securities.
Sales by product are as follows.
[Domestic]
Sales of cultivating & mowing machinery (tractors, high-clearance multipurpose vehicles, etc.) were ¥15,881 million,
and sales of planting machinery (rice transplanters and vegetable transplanters) were ¥6,322 million. Sales of
harvesting and processing machinery (combine harvesters, etc.) were ¥5,947 million. Sales of spare parts andfarming implements, and repair fees were ¥19,644 million. Sales of other agriculture-related business (constructionof facilities, etc.) were ¥13,510 million.
[Overseas]
Sales of cultivating & mowing machinery (tractors, etc.) were ¥15,134 million, and sales of planting machinery (ricetransplanters, etc.) were ¥2,846 million. Sales of harvesting and processing machinery (combine harvesters, etc.)
were ¥89 million. Sales of spare parts and farming implements were ¥1,067 million. Sales of otheragriculture-related business were ¥601 million.
(2) Explanation Regarding Financial Position
Total assets as of June 30, 2016 increased ¥8,835 million from December 31, 2015 to ¥209,984 million.
Looking at the breakdown, current assets increased ¥13,555 million and non-current assets decreased ¥4,720
million. The changes mainly resulted from a ¥5,020 million increase in cash and deposits, a ¥9,709 million increasein notes and accounts receivable–trade, and a ¥3,657 million decrease in investment securities.
Total liabilities increased ¥11,292 million from December 31, 2015 to ¥144,342 million. The change resulted
mainly from a ¥2,944 million increase in notes and accounts payable–trade and electronically recorded
obligations–operating and a ¥10,789 million increase in short-term and long-term loans payable.
Net assets decreased ¥2,457 million from December 31, 2015 to ¥65,641 million, mainly due to the recording of a¥2,247 million decrease in valuation difference on available-for-sale securities, a ¥932 million decrease in foreign
currency translation adjustment, ¥553 million in profit attributable to owners of parent and ¥338 million in dividendsof surplus.
(3) Explanation Regarding Forward-looking Statements Including Consolidated Performance Forecast
Although consolidated sales for the six months ended June 30, 2016 increased from the same period of the previous
year both in Japan and overseas, they ended below the target. Profits were roughly as targeted since the drop in grossprofit due to the failure to reach the sales target was offset by a thorough reduction in fixed costs, and the impact of-2-the loss on disaster following the Kumamoto Earthquake that occurred in April was cancelled out by recording thegain on sales of investment securities as extraordinary income.
Going forward, we expect a continued lack of full-scale recovery in sales of agricultural machinery in Japan, andforecast sales to remain flat. Through Dream Agricultural Research Institute, an institute for research, verificationand dissemination of advanced agricultural technology, as well as services at large-scale maintenance facilities in thelocal regions, we will continue to strive to expand sales by further strengthening our capabilities to support
customers and provide high-quality marketing services. In overseas markets, we will focus on further expanding thesales of strategic products introduced in North America, Europe, China and major markets in the ASEAN region.
Furthermore, we will strive for further sales expansion at Dongfeng Iseki Agricultural Machinery Co., Ltd., anaffiliate accounted for by the equity method, and other overseas affiliates. In terms of income, we will aim to achieve
our profit target through a reduction of fixed costs by fully enforcing low-cost operations, which we advocate in ourmanagement policy for the consolidated fiscal year under review.
As for the consolidated business performance forecasts for the fiscal year ending December 31, 2016, we haverevised our forecast for domestic net sales downward in view of the progress of business performance up to thissecond quarter and the deterioration of the foreign exchange environment. However, we have not changed our profit
forecasts as the reduction of fixed costs is proceeding.
The latest business performance forecast uses foreign exchange rates for the second half of this fiscal year of ¥105
per U.S. dollar and ¥115 per Euro (both revised ¥15 higher for the yen from the initial forecasts).

2. Matters Concerning Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period
Not applicable-3-3. Consolidated Financial Statements(1) Consolidated Balance Sheets
FY ended
December 31, 2015(as of Dec. 31, 2015)(Millions of yen)
2Q of FY ending
December 31, 2016(as of Jun. 30, 2016)

AssetsCurrent assets
Cash and deposits

8,788

13,808Notes and accounts receivable-trade

24,89534,604Merchandise and finished goods

40,60039,906Work in process

5,856

5,940

Raw materials and supplies

1,359

1,124

Other

5,327

5,010

(56)

(67)

86,771

100,327

Buildings and structures, net

22,957

23,524Land

50,65750,621Other, net

23,296

22,636

Total property, plant and equipment

96,911

96,782

1,134

1,102

Investment securities

8,569

4,911

Other

8,062

7,138

Allowance for doubtful accounts

(300)

(278)

Total investments and other assets

16,331

11,772

114,377

109,657

201,149

209,984

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-

FY ended
December 31, 2015(as of Dec. 31, 2015)(Millions of yen)
2Q of FY ending
December 31, 2016(as of Jun. 30, 2016)

Liabilities
Current liabilities
Notes and accounts payable-trade29,40031,085

Electronically recorded obligations-operating
Short-term loans payable

10,604
24,38911,86327,555Current portion of long-term loans payable

8,641

9,358

Income taxes payable

438

856

Provision for bonuses

467

513

Provision for loss on disaster

―

605

Other

13,575

12,344

Total current liabilities

87,51894,183

Non-current liabilities
Long-term loans payable

23,70330,610

Deferred tax liabilities for land revaluation

6,074

5,790

Provision for directors’ retirement benefits

107

107

Net defined benefit liability
Asset retirement obligations

4,806
304

4,677
319

Other

10,534

8,655

Total non-current liabilities

45,53250,159Total liabilities

133,050

144,342

Net assets
Shareholders’ equity
Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

13,514

13,729Treasury shares

(988)

(989)

49,32549,538

2,509

261

1

12

Revaluation reserve for land

12,401

12,686

Foreign currency translation adjustment

1,425

492

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

Remeasurements of defined benefit plans

717

963

17,055

14,41691

91

Non-controlling interests
Total net assets

1,626
68,0991,594
65,641

Total liabilities and net assets

201,149

209,984

Total accumulated other comprehensive income
Subscription rights to shares-5-(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Six Months Ended September 30, 2015 and June 30, 2016
2Q of FY ended
December 31, 2015
(Apr. 1, 2015–
Sep. 30, 2015)(Millions of yen)
2Q of FY ending
December 31, 2016
(Jan. 1, 2016–
Jun. 30, 2016)

Net sales

77,576

81,047

Cost of sales

54,591

57,716Gross profit

22,98523,331

Selling, general and administrative expenses

22,09921,580885

1,751Interest income

7576

Dividend income

141

146

Foreign exchange gains

217

―

Other

571

441

1,005

664

Interest expenses

391

318

Foreign exchange losses

―

462

Other

230

371

Total non-operating expenses

622

1,151

1,269

1,264

Gain on sales of non-current assets

1931

Gain on sales of investment securities

213

967

6

―

240

998

Loss on sales and retirement of non-current assets

94

55

Impairment loss

38

47

Loss on valuation of investment securities―

56

Loss on disaster

―

1,139

Total extraordinary losses

133

1,299

Income before income taxes

1,375

963

Income taxes-current

658

789

Income taxes-deferred

1,438

(363)

Total income taxes

2,096

426

Profit (loss)

(720)

537

Loss attributable to non-controlling interests

(2)

(15)

Profit (loss) attributable to owners of parent

(717)

553

Operating income
Non-operating income

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Compensation income
Total extraordinary income
Extraordinary losses-6-Consolidated Statements of Comprehensive Income
For the Six Months Ended September 30, 2015 and June 30, 2016
2Q of FY ended
December 31, 2015
(Apr. 1, 2015–
Sep. 30, 2015)
Profit (loss)(Millions of yen)
2Q of FY ending
December 31, 2016
(Jan. 1, 2016–
Jun. 30, 2016)

(720)

537

(556)

(2,251)

Deferred gains or losses on hedges―

11

Revaluation reserve for land―284

Foreign currency translation adjustment

(57)

(273)

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

(13)

246

78

(669)

Total other comprehensive income(548)(2,651)(1,268)(2,114)(1,263)(2,085)(5)(29)

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

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

(3) Consolidated Statements of Cash Flows
2Q of FY ended
December 31, 2015
(Apr. 1, 2015–
Sep. 30, 2015)(Millions of yen)
2Q of FY ending
December 31, 2016
(Jan. 1, 2016–
Jun. 30, 2016)

Cash flows from operating activities
Income before income taxes

1,375

963

Depreciation

3,324

3,565

Impairment loss

38

47

Increase (decrease) in net defined benefit liability

(236)

(123)

Increase (decrease) in provision for loss on disaster―

605

Loss (gain) on sales of investment securities

(213)

(967)

Interest and dividend income

(216)

(222)

Interest expenses

391

318

Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment andintangible assets
Decrease (increase) in notes and accounts receivable-trade

(108)

(33)

75

23

(2,631)(9,819)Decrease (increase) in inventories(1,187)

560

Increase (decrease) in notes and accounts payable-trade

929

3,168

Other

131

1,311

Subtotal

1,673

(601)

208

230

Interest expenses paid

(394)

(326)

Surcharges paid

(305)

―

Income taxes paid

(445)

(188)

Net cash provided by (used in) operating activities

736

(886)

(5,075)(5,278)

199

242

(99)

(0)

Proceeds from sales of investment securities

510

1,237

Decrease (increase) in time deposits

(318)

(253)

Other

661

31

(4,121)(4,019)Interest and dividends income received

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

Net cash provided by (used in) investing activities-8-2Q of FY ended
December 31, 2015
(Apr. 1, 2015–
Sep. 30, 2015)(Millions of yen)
2Q of FY ending
December 31, 2016
(Jan. 1, 2016–
Jun. 30, 2016)

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

3,765

3,465

Proceeds from long-term loans payable

5,820

13,150

Repayments of long-term loans payable(4,097)(5,526)

Proceeds from sales and leasebacks

734

442

Repayments of lease obligations(1,381)(1,397)

(0)

(0)

(670)

(334)

(9)

(13)

4,159

9,785

Effect of exchange rate change on cash and cash equivalents

35

(113)

Net increase (decrease) in cash and cash equivalents

809

4,767

Cash and cash equivalents at beginning of period

6,570

8,761

Cash and cash equivalents at end of period

7,380

13,528Purchase of treasury shares
Cash dividends paid
Other
Net cash provided by (used in) financing activities-9-(4) Notes Regarding the Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable(Notes Regarding Significant Changes in Shareholders’ Equity)
Not applicable- 10 -