February 14, 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 the Ordinary General Meeting of Shareholders:
Scheduled Date to Commence Dividend Payment:
Date of Submission of Securities Report:
Supplementary Information for Financial Results:
Financial Results Briefing:

March 27, 2020
March 30, 2020
March 30, 2020
Yes
Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Fiscal Year Ended December 31, 2019 (Japanese GAAP)
I. Consolidated Financial Results for the Fiscal Year Ended December 31, 2019 (January 1, 2019－December
31, 2019)
A. Consolidated Results of Operations(Rounded down to millions of yen, % indicates changes from the previous corresponding period)

Fiscal Year Ended
December 31, 2019
149,899
2,745
1,108
723

Net Sales
Operating Income
Ordinary Income
Profit Attributable to Owners of Parent
Earnings per Share (yen)
Basic
32.01
Diluted31.96
Return on Equity (%)
1.1
Return on Assets (%)
0.6
Operating Margin (%)
1.8
Note: Comprehensive income
Fiscal year ended December 31, 2019: ¥976 million [—%]
Fiscal year ended December 31, 2018: ¥(1,274) million [—%]
Reference: Share of profit or loss of entities using equity method
Fiscal year ended December 31, 2019: ¥(1,472) million
Fiscal year ended December 31, 2018: ¥(1,083) million%(3.9)(13.6)(57.8)(33.7)

Fiscal Year Ended
December 31, 2018
155,955
3,179
2,629
1,090
48.29
48.21
1.6
1.3
2.0

%
(1.5)
(19.6)(38.1)(61.1)

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

As of December 31, 2019

As of December 31, 2018

Total Assets
197,511201,156
Net Assets
69,252
68,959
Shareholder’s Equity to Total Assets Ratio (%)
34.2
33.4
Net Assets per Share (yen)2,987.19
2,974.78
Reference: Shareholder’s equity
As of December 31, 2019: ¥67,481 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 fiscal year ended December 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.
C. Consolidated Cash Flows(Rounded down to millions of yen)

Fiscal Year Ended
December 31, 2019
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Cash and Cash Equivalents at End of Period

Fiscal Year Ended
December 31, 2018

10,509(7,104)(2,396)
8,369

7,616
(9,944)
1,970
7,387

II. Dividends

Total

AnnualDividends(million yen)

Payout Ratio(%,
consolidated)

Dividend to Net
Assets Ratio(%,
consolidated)

Dividend per Share (yen)1Q-end 2Q-end 3Q-end Year-end
FY Ended December
31, 2018
FY Ended December
31, 2019
FY Ending December
31, 2020 (Forecast)

—

—

—

30.00

30.00

677

62.1

1.0

—

—

—

30.00

30.00

677

93.7

1.0

—

—

—

30.00

30.00

39.9

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

156,000%

4.1

Operating
Income

3,600

%

31.1

Ordinary
Income

2,800

%

152.5

ProfitAttributableto Ownersof Parent

1,700

%

135.1

Earnings
per Share
(yen)

75.25

* Notes
A. Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries
resulting in changes in the scope of consolidation): No
New: — (), Exclusion: — ()
B. 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

C. Total number of shares issued (common stock)1) Total number of shares issued at the end of the fiscal year (including treasury shares):
As of December 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 fiscal year:
As of December 31, 2019394,565 shares
As of December 31, 2018394,999 shares
3) Average number of shares during the fiscal year:
Fiscal year ended December 31, 2019
22,590,528 sharesFiscal year ended December 31, 2018
22,589,460 shares

(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2019 (January 1, 2019－December
31, 2019)
A. Non-consolidated Results of Operations(Rounded down to millions of yen, % indicates changes from the previous corresponding period)

Net Sales
Operating Income
Ordinary Income
ProfitEarnings per Share (yen)BasicDilutedFiscal Year Ended
December 31, 2019
90,016
992
2,241
1,555

Fiscal Year Ended
December 31, 2018
(3.3)
93,118
97.7
502
(4.9)
2,358
(11.5)
1,757

%

68.84
68.74

%
0.2
0.1
10.9
(12.7)

77.81
77.69

B. Non-consolidated Financial Position(Rounded down to millions of yen)

As of December 31, 2019

As of December 31, 2018

Total Assets
130,122
135,034
Net Assets
58,92958,090Shareholder’s Equity to Total Assets Ratio (%)
45.2
43.0
Net Assets per Share (yen)2,605.24
2,568.05
Reference: Shareholder’s equity
As of December 31, 2019: ¥58,853 million
As of December 31, 2018: ¥58,012 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 fiscal year ended December 31, 2019.
With respect to the non-consolidated financial position as of December 31, 2018, the values after the above accounting
standard, etc. was retrospectively applied are used.
* These financial results are outside the scope of audit 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 “Summary of Results of Operations, etc.” on page 2 of
the Appendix.

 Contents of Appendix
1. Summary of Results of Operations, etc. .................................................................................................2(1) Summary of Results of Operations for the Fiscal Year under Review .............................................2(2) Summary of Financial Position for the Fiscal Year under Review ...................................................3(3) Summary of Cash Flows for the Fiscal Year under Review .............................................................3(4) Future Outlook..................................................................................................................................4(5) Basic Policy on Distribution of Surplus and Dividends for the Current and Next Fiscal Years .......4(6) Risks Which Could Affect Our Business..........................................................................................4
2. Status of the Corporate Group ................................................................................................................6
3. Basic Policy for Choosing Accounting Standards ..................................................................................7
4. Consolidated Financial Statements and Principal Notes ........................................................................8(1) Consolidated Balance Sheets ............................................................................................................8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .....10(3) Consolidated Statements of Changes in Equity ..............................................................................12(4) Consolidated Statements of Cash Flows .........................................................................................14(5) Notes to Consolidated Financial Statements ...................................................................................16(Notes to Going Concern Assumption) ..........................................................................................16(Important Basic Items for Preparing Consolidated Financial Statements) ...................................16(Changes in Presentation) ...............................................................................................................18(Consolidated Balance Sheets) .......................................................................................................18(Consolidated Statements of Income).............................................................................................19(Consolidated Statements of Changes in Equity) ...........................................................................20(Consolidated Statements of Cash Flows) ......................................................................................21(Segment Information) ...................................................................................................................21(Per Share Information) ..................................................................................................................21(Significant Subsequent Events) .....................................................................................................21
5. Non-consolidated Financial Statements and Principal Notes ...............................................................23(1) Non-consolidated Balance Sheets ..................................................................................................23(2) Non-consolidated Statements of Income ........................................................................................25(3) Non-consolidated Statements of Changes in Equity .......................................................................26(4) Notes to Non-consolidated Financial Statements ...........................................................................28(Notes to Going Concern Assumption) ..........................................................................................28(Changes in Presentation) ...............................................................................................................28(Significant Subsequent Events) .....................................................................................................28
6. Others ...................................................................................................................................................28(1) Production, Orders and Sales..........................................................................................................28-1-

1. Summary of Results of Operations, etc.
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 consolidated fiscal year under review,and statements concerning financial position are based on comparison with and analysis of figures in the previous
consolidated fiscal year after retroactive application of those partial amendments.
(1) Summary of Results of Operations for the Fiscal Year under Review
During the fiscal year ended December 31, 2019, despite some weakness centered on the manufacturing industry's
performance and exports, the Japanese economy continued on a moderate recovery track due to the effects of various
government policies amid continuing improvement in employment and income environments. Regarding overseas
markets, while the economy in the U.S. continued a recovery due to such factors as increased personal consumption,
the economy in Europe showed weakness in production and exports, and the Chinese economy continued to slow
down slightly due to factors including sluggishness in personal consumption, in addition to a decrease in exports underthe effects of U.S.-China trade friction. Although the world economy recovered gradually as a whole, the pace ofimprovement weakened partially due to uncertainty regarding the lengthening of trade friction between the U.S. andChina, and the U.K. exit from the EU.
On the other hand, in the domestic agricultural environment, despite rapidly increasing demand in advance of theconsumption tax rate increase, the market for agricultural machinery basically remained flat amid ongoing structuralchanges in agriculture including farmland consolidation to principal farmers and rice-crop diversion such as a shift todry 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.
[Consolidated financial results]
Net sales for the fiscal year ended December 31, 2019, were ¥149,899 million, a decrease of ¥6,056 million (3.9%)
year on year. Domestic sales in Japan were ¥117,717 million, a decrease of ¥5,094 million (4.1%) year on year, due
to the absence of the completion of the construction of large-scale facilities recorded in the previous year and a decreasein sales of agricultural machinery owing to the effects of the consumption tax increase during the year under review,despite a strong sales of spare parts and repair fees. Overseas sales were ¥32,181 million, a decrease of ¥962 million(2.9%) year on year. This was due to factors including a decrease in the yen base owing to the effect of currency
exchange rates linked to the higher yen in Europe, despite strong sales of landscaping products, a decrease in shipmentsof semi-finished rice transplanters owing to local inventory adjustments in China, and decreases in shipments oftractors to Thailand and in Indonesian government tendering in the ASEAN regions, despite increased revenue inNorth America partially due to favorable sales of new compact tractors.
Operating income was ¥2,745 million, a decrease of ¥434 million (13.6%) year on year due to the effects of decline
in revenue, although it was partially offset mainly by an improvement in profitability by virtue of revenue and cost
structure overhaul at domestic dealers and reduced selling, general and administrative expenses.
Ordinary income was ¥1,108 million, a decrease of ¥1,520 million (57.8%) year on year, mainly due to thedisappearance of technical support fee recorded in the previous year and recording of the share of loss of entities
accounted for using equity method.
Profit attributable to owners of parent was ¥723 million, a decrease of ¥367 million (33.7%) year on year, mainly
due to decreased tax expenses, in addition to recording of extraordinary income including gain on reversal of provision
incurred from business combination and gain on sales of investment securities.
[Non-consolidated financial results]
Net sales for the fiscal year ended December 31, 2019, were ¥90,016 million (down 3.3% year on year), operating
income was ¥992 million (up 97.7% year on year), ordinary income was ¥2,241 million (down 4.9% year on year),and profit was ¥1,555 million (down 11.5% year on year).
Sales by product are as follows.
[Domestic]
Sales of cultivating and mowing machinery (tractors, high-clearance multipurpose vehicles, among others) were¥25,373 million (a decrease of 7.5% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥9,049 million (a decrease of 1.5% year on year). Sales of harvesting and processing machinery(combine harvesters, among others) were ¥18,591 million (a decrease of 6.9% year on year). Sales of farming
implements, spare parts and repair fees were ¥40,809 million (an increase of 0.5% year on year). Sales of otheragriculture-related business (construction of facilities, among others) were ¥23,894 million (a decrease of 6.7% year
on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥25,319 million (a decrease of 2.2% year
on year). Sales of planting machinery (rice transplanters, among others) were ¥1,177 million (a decrease of 39.5%-2-

year on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥1,704 million(an increase of 193.1% year on year). Sales of farming implements and spare parts were ¥2,802 million (an increaseof 1.0% year on year). Sales of other agriculture-related business were ¥1,177 million (a decrease of 39.4% year onyear).
(2) Summary of Financial Position for the Fiscal Year under Review
Total assets at the end of the fiscal year ended December 31, 2019, decreased by ¥3,645 million from the end of theprevious fiscal year to ¥197,511 million. Current assets decreased by ¥4,632 million, while non-current assets
increased by ¥987 million. This was mainly due to a decrease of ¥3,652 million in notes and accounts receivable trade, a decrease of ¥2,367 million in other current assets, an increase of ¥2,005 million in leased assets, a decrease of¥1,380 million in construction in progress, an increase of ¥1,587 million in long-term loans receivable, and a decreaseof ¥1,361 million in other investments and other assets.
Total liabilities decreased by ¥3,938 million from the end of the previous fiscal year to ¥128,259 million. This was
mainly due to a decrease of ¥2,571 million in short-term loans payable and long-term loans payable, a decrease of¥1,983 million in notes and accounts payable - trade, an increase of ¥2,101 million in lease obligations, and a decreaseof ¥1,004 million in net defined benefit liability.
Net assets increased by ¥292 million from the end of the previous fiscal year to ¥69,252 million. This was mainly
due to an increase of ¥488 million in remeasurements of defined benefit plans and a decrease of ¥215 million in foreign
currency translation adjustment.
The shareholder’s equity to total assets ratio was 34.2%.
(3) Summary of Cash Flows for the Fiscal Year under Review(Cash flows from operating activities)
Cash flows from operating activities resulted in a net cash inflow of ¥10,509 million (an increase of cash inflow of¥2,892 million from the previous fiscal year). This was mainly due to income before income taxes of ¥1,302 million,
depreciation of ¥6,852 million, and a decrease of ¥3,528 million in notes and accounts receivable - trade.
(Cash flows from investing activities)
Cash flows from investing activities resulted in a net cash outflow of ¥7,104 million (a decrease of cash outflow of¥2,840 million from the previous fiscal year). This was mainly due to ¥8,354 million of capital investment expenditures.
(Cash flows from financing activities)
Cash flows from financing activities resulted in a net cash outflow of ¥2,396 million (an increase in cash outflow of¥4,367 million from the previous fiscal year). This was mainly due to a decrease in interest-bearing liabilities.
(Reference) The trend of cash flow indicators
Indicator

FY ended
December31, 2016

FY ended
December31, 2017

FY ended
December31, 2018

FY ended
December31, 2019

Shareholder’s equity to total assets ratio (%)

32.2

34.4

33.4

34.2

Market-based equity ratio (%)

25.0

31.9

17.7

19.1

7.4

18.0

8.3

5.8

13.7

5.6

11.4

14.3

Cash flow/Interest-bearing liabilities ratio(times)Interest coverage ratio (times)• Shareholder’s equity to total assets ratio: Shareholders’ equity/Total assets• Market-based equity ratio: Total market price of shares/Total assets• Cash flow/Interest-bearing liabilities ratio: Interest-bearing liabilities/Cash flow
• Interest coverage ratio: Cash flow/Interest payments
Notes: 1. All figures have been calculated using financial figures on a consolidated basis.
2. The total market price of shares has been calculated by multiplying the per-share closing price at the end of
the fiscal year by the total number of shares outstanding (less treasury shares) at the end of the fiscal year.
3. The cash flow uses the figures of the cash flows from operating activities in the Consolidated Statements ofCash Flows. Interest-bearing liabilities include all bonds payable and loans payable as recorded in theConsolidated Balance Sheets. The Interest payments use the figures of the interest expenses paid as recordedin the Consolidated Statements of Cash Flows.

-3-(4) Future Outlook
The environment surrounding the Group during the fiscal year ending December 31, 2020, is expected to be on amoderate recovery in Japan mainly due to the effects of various policies, as improvements continue in the employment
and income environment. In the U.S. economy, moderate growth is projected to continue from factors including afavorable employment and income environment. In the European economy, the weak recovery is projected to continue
due to uncertainty surrounding the U.K. exit from the EU. The world economy in general is continuing to show signsof moderate recovery, but there is growing uncertainty arising from situations such as the outlook of the Chinese
economy amid concern over the effects of atypical pneumonia, and the situation in the Middle East.
In domestic agriculture, demand for agricultural machinery is likely to remain bearish and flat due to the uncertain
demand environment following the consumption tax rate increase, in line with changes in needs resulting fromstructural changes in agriculture. Under these circumstances, the Company forecasts higher revenue from sales ofagricultural machinery centered on strong sales of farming implements and repair fees via initiatives such as
responding to scaling by principal farmers, responding to efficiency needs against a backdrop of personnel shortages,
and providing a product lineup, services and support for rice-crop diversion such as the shift to dry field farming andvegetable production.
Overseas, higher revenues are projected as the North American market is steady and the ASEAN market is recovering.
Profits are expected to increase due to higher gross profit on the back of higher revenue, in addition to factors suchas further improvements in the revenue and cost structure at domestic dealers and improved profitability in products
for overseas, despite an increase in selling, general and administrative expenses.
As it is difficult at this time to project how the spread of novel coronavirus (COVID-19) will affect financial results,
it has not been reflected in these forecasts. Any revisions to the forecasts will be promptly disclosed.
(5) Basic Policy on Distribution of Surplus and Dividends for the Current and Next Fiscal Years
We recognize that paying stable dividends to shareholders is one of the most important policies to be made. Our basic
policy is to continue to pay stable dividends, comprehensively taking into consideration our foundations for revenue
and future business developments as well as changes in our managerial environment, while aiming to maintain andimprove our financial soundness with sustainable business activities as a premise. We distribute retained earnings toshareholders once a year as year-end dividends, and the authority deciding payment is General Meeting of
Shareholders.
With respect to dividends for the fiscal year ended December 31, 2019, we will pay a year-end dividend of 30.0 yen
per share in line with the above policy.
For the fiscal year ending December 31, 2020, we plan to pay a year-end dividend of 30.0 yen per share.
(6) Risks Which Could Affect Our Business
Latent risks and uncertainties which could affect our future financial performance are exemplified as below. We
recognize the possibility of the occurrence of such risks and uncertainties, and will strive to avoid their occurrence andtake proper measures should they occur.
Forward-looking statements in the document are based on the judgments of the Company as of the end of the fiscal
year ended December 31, 2019:1) Economic conditions and changes in the environment of agriculture
Sluggishness of domestic and/or overseas economic conditions and any change in the agricultural policy may
harm our financial performance through reduced demand for agricultural machinery.
2) Exchange rate fluctuation
There is a possibility that fluctuation of foreign exchange may adversely impact our financial performance.
3) Price hike of raw materials, difficulty in procurement, and confusion in the supply chain
As we procure raw materials and parts from numerous suppliers, their prices suddenly increasing more rapidly
than expected and a prolonged tightening of supplies may harm our business performance.
In addition, a fall in production activities due to disruptions in the supply chain may adversely impact the ISEKI
Group’s business performance and financial position.
4) Dependency on specific customers or suppliers
Any change of business policy, business depression or bankruptcy of our specific customers or suppliers may
harm our financial performance.
5) Competition with other companies
We are involved in fierce competition with other companies in the market, and unless overall productcompetitiveness, including relevant services, is maintained, there is the possibility of a decline in our performance.
6) Serious defects in products and services
The occurrence of serious defects in our products or services may harm our financial performance.
7) Stock market fluctuation
As we hold securities, stock price declines may adversely impact our business performance and financial position.
8) Government regulation on environmental issues, etc., and occurrence of related difficulties-4-Substantial costs may be incurred related to our products or business activities due to necessitated responses topublic regulation of environmental issues, etc., corrective measures undertaken upon the occurrence of troubles,
lawsuits and other situations which could lead to a deterioration of our financial performance.
9) Risks derived from international businessAs we promote overseas business development, unexpected changes in tax and legal systems, trade policies, or
political unrest, etc. of any particular country may harm our financial performance when we engage ininternational business activities.
In addition, as we focus on expanding business to the Asian region, mainly a difficulty in ensuring humanresources, immature technological levels and unstable labor-management relationships in the region may hinder
the ISEKI Group’s business development.
10) Risk of legal violation
We are making group-wide efforts to accomplish complete legal compliance and drive home the code of ethicalbehavior by establishing the “ISEKI Group Code of Ethical Behavior” and preparing an internal control system.
In spite of such efforts, if any of our directors and/or employees should conduct themselves in any way that
violates laws and regulations, the business activities of the Group may be restrained and the business performance
may be deteriorated.
11) Risk of natural disasters, unexpected accidents, spread of infectious disease, etc.
Natural disasters such as earthquakes, typhoons, flood or unexpected accidents may occur, which may harm ourfinancial performance.
In addition, a fall in production due to constraints on business activities accompanying the spread of infectious
disease or disruptions in the supply chain may adversely impact the ISEKI Group’s business performance.
12) Business alliances, joint ventures and strategic investment with other companies
We will form business alliances and joint ventures and carry out strategic investment with other companies asnecessary. We believe that these measures are an effective means for the effective utilization of the management
resources of both parties and for the timely development, production and sales of products.
However, should a conflict of interests occur between the parties concerned in business alliances or joint
ventures due to financial position or other reasons, we would not be able to maintain the alliances. With regard
to strategic investment, including acquisitions, the expected results and/or effects may not be obtained in the
integration of business, technologies, products and human resources, or more time and expenses than expected
may be required. Accordingly, the success or failure of these measures may materially impact the ISEKI Group’sbusiness and may adversely impact our business performance and financial position.
13) Debt
We have concluded syndicated loan or commitment line contracts with financial institutions. Should any of thefinancial conditions of these contracts be triggered, we could face obligations to pay back some or all of theseloans, which could adversely impact the financial position of the ISEKI Group. There is a possibility that a hikein interest rate may harm our financial performance.
The forecasts for future results and target figures produced by ISEKI & CO., LTD., are based on information
available as the day of this announcement, and assumptions made as of the same day regarding a number oflatent risks and uncertainties that could affect future financial performance. Actual results could differ
considerably depending on economic conditions, market trends, and future conditions for business operations
hereafter.

-5-

2. Status of the Corporate GroupThe main business of the ISEKI Group is the development, manufacture and sale of agricultural machinery for riceand vegetable farming, among other related areas.
The position of the business in the ISEKI Group is stated below.
(Agriculture-related Business)
ISEKI & CO., LTD. primarily handles the development and design of agricultural machinery. Iseki-Matsuyama Mfg.
Co., Ltd., Iseki-Kumamoto Mfg. Co., Ltd. and six other companies handle our agricultural machinery manufacturing
and processing of related components, and 11 domestic dealers market and sell the machinery across the country.
Overseas marketing operations are handled by ISEKI France S.A.S. (France), Dongfeng Iseki Agricultural MachineryCo., Ltd. (China), and local distributors and affiliates.

Domestic Users and Customers

Overseas Users and Customers(Agriculture-related Business)

Sales

Sales

Consolidated Subsidiaries

Consolidated Subsidiaries:

ISEKI France S.A.S

Iseki-Hokkaido Co., Ltd.

(France) and 1 other

Iseki-Tohoku Co., Ltd.

company

and 9 other companies

Equity Method Affiliate
IST Farm Machinery

Sales

Co., Ltd. (Thailand)

Transport andServiceNon-consolidated Subsidiaries

N.V. ISEKI EUROPE
Products
and Parts

SA. (Belgium) and 1
other company

Consolidated
Subsidiaries:
Iseki-Butsuryu
Co., Ltd.
and 1 other company

Products and
Parts

Transport andService

ISEKI & CO., LTD.
Products andParts

Products andParts

Consolidated Subsidiaries:
Equity Method Affiliate:Dongfeng Iseki Agricultural MachineryCo., Ltd. (China)

Iseki-Matsuyama Mfg. Co., Ltd.
Iseki-Kumamoto Mfg. Co., Ltd.
PT. ISEKI INDONESIA
and 4 other companies-6-3. Basic Policy for Choosing Accounting Standards
Considering comparability of periods between consolidated financial statements and comparability between
companies, the ISEKI Group will continue to use the accounting standards generally accepted in Japan for preparing
consolidated financial statements for the time being.
Regarding the accounting standards, we will adopt them in proper timing and manner, considering relevant
circumstances in and outside Japan.

-7-

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

7,475

8,404

Notes and accounts receivable - trade23,327

19,675Merchandise and finished goods

46,49546,426Work in process

6,046

6,580

Raw materials and supplies

1,177

1,171

Other

7,320

4,952

(51)

(52)

91,791

87,159Buildings and structures, net

25,37826,050Machinery, equipment and vehicles, net

9,257

9,236

Tools, furniture and fixtures, net

2,854

3,191

Land

50,87350,759Leased assets, net

6,001

8,006

Construction in progress

2,446

1,066

29

34

96,842

98,346

1,082

1,288

5,817

5,303

33

1,620

1,878

1,512

587

500

Other

3,270

1,908

Allowance for doubtful accounts

(146)

(128)

Total investments and other assets

11,44010,717

109,365

110,352

201,156

197,511

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset

Total non-current assets
Total assets-8-

(Millions of yen)
As of December 31, 2018 As of December 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade23,80322,142

Electronically recorded obligations - operating
Short-term loans payable

15,93331,475

15,61028,633Current portion of long-term loans payable

11,401

10,717

Lease obligations

2,337

2,057

Accrued consumption taxes

434

665

Income taxes payable

368

356

Accrued expenses
Provision for bonuses

4,240
482

4,116
443

Other

5,117

4,990

Total current liabilities

95,59389,735

Non-current liabilities
Long-term loans payable

20,571

21,525

Lease obligations
Deferred tax liabilities

4,009
26

6,390
55

Deferred tax liabilities for land revaluation

5,780

5,759

Provision for directors’ retirement benefits

132

140

Net defined benefit liability

4,063

3,059

Asset retirement obligations

322

325

1,696

1,267

36,60338,524132,197

128,259

Capital stock

23,344

23,344

Capital surplus
Retained earnings

13,452
16,932

13,452
17,025

Treasury shares

(983)

(982)

52,746

52,840

418

380

(0)
12,670(0)12,622

864

648

Other
Total non-current liabilities
Total liabilities
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans

501

989

14,454

14,641

Subscription rights to shares

78

75

Non-controlling interests

1,681

1,694

Total net assets
Total liabilities and net assets

68,95969,252

201,156

197,511

Total accumulated other comprehensive income-9-(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Subsidies received
Rent income
Technical support fee
Gain on sales of scraps
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange losses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Reversal of provision incurred from business combination
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 10 -

Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

155,955
110,00945,94542,765
3,179

149,899
105,392
44,507
41,761
2,745

133
145
47
171
499
138
751
1,887

192
204
48
173
―
78
548
1,244

669
88
151
1,083
445
2,438
2,629

729
88
115
1,472
476
2,881
1,108

79
52
―
16
148

29
243
265
―
538

252
133
160
1
548
2,229
756
346
1,102
1,126
35
1,090

220
122
1
0
344
1,302
477
83
560
741
18
723

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

1,126

741

(1,420)(38)

Deferred gains or losses on hedges

150Foreign currency translation adjustment

(36)

(168)

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

(743)

488

(215)

(47)

(2,401)234(1,274)976(1,288)

958

14

17

ProfitOther 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- 11 -

(3) Consolidated Statements of Changes in Equity
Fiscal year ended December 31, 2018 (January 1, 2018－December 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period

23,344

CapitalsurplusRetainedearnings

13,453

16,519Total
shareholders’equityTreasuryshares(986)

52,330Changes of items during period
Dividends of surplus

(677)

(677)

Profit attributable toowners of parent

1,090

1,090

Purchase of treasury shares(0)

Disposal of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of period

(0)

(0)

2

2

―

(0)

413

2

415

23,344

13,452

16,932(983)

52,746

Accumulated other comprehensive income
Valuationdifference on Deferred gains Revaluation
or losses on reserve foravailable
hedgesland
for-salesecurities
Balance at beginning of period

1,818

(16)

12,670Foreigncurrencytranslation
adjustment

1,115

Total
Subscription
Remeasureaccumulated
rights toments ofothersharesdefinedcomprehenbenefit plans
sive income

1,244

16,83380

Noncontrollinginterests

Total net
assets

1,671

70,916

Changes of items during period
Dividends of surplus(677)

Profit attributable toowners of parent

1,090

Purchase of treasury shares(0)

Disposal of treasury shares

2

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of period(1,399)

15

―

(251)

(743)

(2,379)(2)

9(2,372)(1,399)

15

―

(251)

(743)

(2,379)(2)

9(1,957)418(0)

12,670864

501

14,45478

1,681

68,959- 12 -

Fiscal year ended December 31, 2019 (January 1, 2019－December 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of period

23,344

CapitalsurplusRetainedearnings

13,452

16,932

Total
shareholders’equityTreasuryshares(983)

52,746

Changes of items during period
Dividends of surplus

(677)

(677)

Profit attributable toowners of parent

723

723

Purchase of treasury shares(0)

Disposal of treasury shares
Reversal of revaluation
reserve for land
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of period

(0)

(0)

2

2

48

48

―

(0)

93

1

94

23,344

13,452

17,025(982)

52,840

Accumulated other comprehensive income
Valuationdifference on Deferred gains Revaluation
or losses on reserve foravailable
hedgesland
for-salesecurities
Balance at beginning of period

418

(0)

Foreigncurrencytranslation
adjustment

12,670864

Total
Subscription
Remeasureaccumulated
rights toments ofothersharesdefinedcomprehenbenefit plans
sive income

501

14,45478

Noncontrollinginterests

Total net
assets

1,681

68,959Changes of items during period
Dividends of surplus(677)

Profit attributable toowners of parent

723

Purchase of treasury shares(0)

Disposal of treasury shares

2

Reversal of revaluation
reserve for land
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of period

48
(38)

0

(48)

(215)

488

186

(2)

13

198

(38)

0

(48)

(215)

488

186

(2)

13

292

380

(0)

12,622648

989

14,64175

1,694

69,252- 13 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

Income before income taxes

2,229

1,302

Depreciation

6,727

6,852

Impairment loss

133

122

2

2

Increase (decrease) in net defined benefit liability

752

(993)

Loss (gain) on sales of investment securities

(52)

(243)

Interest and dividend income

(278)

(396)

Interest expenses

669

729

Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment andintangible assets
Loss (gain) on step acquisitions

41

(0)

172

190

(16)

─

Decrease (increase) in notes and accounts receivable - trade

1,807

3,528

Decrease (increase) in inventories

(297)

(778)

Increase (decrease) in notes and accounts payable - trade(1,028)(1,867)

Other, net(1,340)2,851

Subtotal

9,521

11,299Interest and dividend income received

269

396

Interest expenses paid

(665)

(733)

Proceeds from subsidy income

373―

Penalty paid

(427)

―

Income taxes paid

(1,455)(452)

Net cash provided by (used in) operating activities

7,616

10,509(6,849)(8,354)

438

556

(940)

(0)

77

638

Decrease (increase) in loans receivable(2,783)(4)

Decrease (increase) in time deposits

98

53

Other, net

157(9,944)(7,104)

Cash flows from operating activities

Amortization of goodwill

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

Net cash provided by (used in) investing activities- 14 -

(Millions of yen)
Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

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

4,313(2,697)

Proceeds from long-term loans payable

8,122

12,176

Repayments of long-term loans payable(8,506)(11,902)

Proceeds from sales and leasebacks

979

3,058

Repayments of lease obligations(2,254)(2,346)

(0)

(0)

(678)

(680)

Dividends paid to non-controlling interests

(4)

(4)

Other, net

0

―

1,970

(2,396)

Effect of exchange rate change on cash and cash equivalents

(51)

(26)

Net increase (decrease) in cash and cash equivalents

(408)

981

Cash and cash equivalents at beginning of period

7,795

7,387

Cash and cash equivalents at end of period

7,387

8,369

Purchase of treasury shares
Cash dividends paid

Net cash provided by (used in) financing activities- 15 -

(5) Notes to Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable(Important Basic Items for Preparing Consolidated Financial Statements)
1. Scope of consolidation
Number of consolidated subsidiaries: 22 (including Iseki-Matsuyama Mfg. Co., Ltd., Iseki-Kumamoto Mfg. Co.,
Ltd., Iseki-Hokkaido Co., Ltd. and Iseki-Tohoku Co., Ltd.)As of January 1, 2019, Iseki Kanto Co., Ltd. and Iseki Shin-etsu Co., Ltd were merged in an absorption-type merger,
with Iseki Kanto Co., Ltd. as the surviving company. On the same date, Iseki Tokai Co., Ltd. and Iseki Kansai Co.,
Ltd. were also merged in an absorption-type merger, with Iseki Tokai Co., Ltd. as the surviving company.
Due to this, the 2 consolidated subsidiaries Iseki Shin-etsu Co., Ltd. and Iseki Kansai Co., Ltd. are excluded fromthe scope of consolidation from the period of the three months ended March 31, 2019.
In addition, the company names of the surviving companies Iseki Kanto Co., Ltd. and Iseki Tokai Co., Ltd. havebeen changed to Iseki Kanto Koshinetsu Co., Ltd. and Iseki Kansai Chubu Co., Ltd., respectively.
2. Scope of the equity method companies
Number of affiliates: 2(Dongfeng Iseki Agricultural Machinery Co., Ltd. and IST Farm
Machinery Co., Ltd.)
3. Consolidated accounting period
Of the consolidated subsidiaries, 20 companies (including Iseki-Matsuyama Mfg. Co., Ltd.) use a balance sheet dateof December 31. ISEKI France S.A.S. uses a balance sheet date of September 30.
With regard to the preparation of the consolidated financial statements, for ISEKI France S.A.S. adopting September
30 as its annual closing date, necessary adjustments at consolidation are made for any significant transactions that
occurred between the consolidated balance sheet date and these dates.
4. Accounting policies(1) Valuation basis and methods of important assets(a) Securities
Held-to-maturity debt securities: recorded at amortized cost
Available-for-sale securities- Securities with fair market value: recorded at market value, based on the fair market price at the closing
date of the consolidated reporting period.
(Any estimate variance is credited or debited to shareholders’ equity)- Securities without fair market value: recorded at cost, based on the moving-average method(b) Inventories: mainly recorded at cost using the gross-average method(Balance sheet amounts for items with reduced profitability have beenadjusted downward accordingly)(c) Derivatives: recorded at the market value(2) Depreciation methods for material depreciable assets(a) Property, plant and equipment (excluding leased assets)
The straight-line method is used.
(b) Intangible assets (excluding leased assets)
The straight-line method is used. However, software for internal use is depreciated using the straight-line
method over an expected useful life within the company of five years.
(c) Leased assets
Leased assets derived from finance leases other than those leases which transfer the ownership of the assets
to the lessee are amortized using the straight-line method with no residual value over the lease period, which
is deemed the useful life.
(3) Allowances and reserves(a) Allowance for doubtful accounts
A likely unrecoverable amount is calculated by applying the historical bad debt ratio to general receivables.
For specific receivables, such as doubtful debt receivables, allowances are made by individually evaluating
the likelihood of them being collected.
(b) Provision for bonuses
To provide for future bonus payments to employees, a provision for bonuses is booked based on estimatedfuture payments.
(c) Provision for directors’ retirement benefits
Some of the consolidated subsidiaries record the directors’ retirement benefits to provide for payment of such
retirement benefits in an amount as required by companies’ internal regulations.
- 16 -

(4) Accounting treatment related to retirement benefits(a) Method of attributing the projected benefits to periods of service
In calculating retirement benefits, the method of attributing the projected benefits to periods until the end of
the current fiscal year is based on the benefit formula basis attribution.
(b) Method of amortization of actuarial gains or losses and prior service cost
Actuarial gains or losses are amortized as incurred over the periods, which are the average remaining service
years of employees, by the straight-line method, starting from the following fiscal year. Prior service cost isamortized as incurred over the periods, which are the average remaining service years of employees, by thestraight-line method.
(c) Adoption of the simplified method at small companies
For calculating net defined benefit liability and retirement benefit expenses, some consolidated subsidiaries
apply the simplified method which assumes the company’s benefit obligation to be equal to the benefits
payable assuming the voluntary retirement of all employees takes place at fiscal year-end.
(5) Accounting standards for revenues and expenses(a) Accounting standards for the value and cost of completed construction contracts
The percentage-of-completion method is applied for construction in progress up to the end of the consolidated
accounting period, for which the outcome can be estimated reliably (the proportional cost method is applied
for estimating the percentage of progress of the construction). The completed-contract method is applied forother constructions.
(6) Foreign currency translations
Monetary assets and liabilities in foreign currencies are translated into yen at the spot exchange rate at thebalance sheet date. Gains or losses resulting from the translation are credited or charged to income.
Balance sheet accounts (except for shareholders’ equity) and revenue and expense accounts of the overseas
subsidiary are translated into yen at the spot exchange rate at the balance sheet dates. Differences arising fromthe translation are presented as “Foreign currency translation adjustment” and “Non-controlling interests”
in shareholders’ equity and financial statements.
(7) Hedge accounting(a) Hedge accounting
Recorded in accordance with deferred hedge accounting. Such receivables and payables, which aredenominated in foreign currencies and for which forward exchange contracts have been entered, are recorded
using the forward exchange rates.
(b) Hedging instruments and hedged items(i) Hedging instruments
Forward exchange contracts(ii) Hedged items
Receivables and payables denominated in foreign currencies, forecasted transactions denominated inforeign currencies(c) Hedging policies
The financial risks associated with fluctuations in foreign currencies exchange rates and interest rates arehedged.
Risks associated with fluctuations in foreign currencies exchange rates concerning transactions in foreign
currencies, which occur when import and export operations are performed, are hedged by keeping a balance
between export exchanges and import exchanges. With regard to risks associated with fluctuations in interest
rates on loans payable, risks concerning variable interest rate loans payable are hedged, mainly with a viewto equalizing interest burdens.
(8) Amortization method and amortization period of goodwill
The goodwill account is amortized by the straight-line method over a period of no longer than 20 years.
(9) Cash and cash equivalents in the Consolidated Statements of Cash Flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments which arereadily convertible to cash subject to an insignificant risk of any change in their value and which were purchasedwith an original maturity of three months or less.
(10) Other notes pertaining to the preparation of the Consolidated Financial Statements(a) Accounting treatment of consumption tax
Consumption tax and local consumption taxes are accounted for using a tax-exclusive method.
(b) Application of consolidated taxation system
The consolidated taxation system is applied to the Company and some domestic consolidated subsidiaries.
- 17 -

(Changes in Presentation)
Consolidated Balance Sheets(Changes in line with application of the Partial Amendments to Accounting Standard for Tax EffectAccounting)
As the Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018) from the beginning of the consolidated fiscal year under review, wehave changed to a method whereby deferred tax assets are reported under investments and other assets, and deferred
tax liabilities are reported under non-current liabilities.
As a result, deferred tax assets as recorded in the consolidated balance sheets for the previous consolidated fiscal
year have decreased by ¥1,057 million under current assets but increased by ¥966 million under investments and otherassets. In addition, deferred tax liabilities have decreased by ¥2 million under current liabilities and decreased by ¥89
million under non-current liabilities.
We report deferred tax assets and deferred tax liabilities of the same taxable entity as being offset, and compared tobefore the change in reporting method, total assets have decreased by ¥91 million.
(Consolidated Balance Sheets)

1.
2.
3.
4.
5.

6.

Fiscal year ended
December 31, 2018109,810(Millions of yen)
Fiscal year ended
December 31, 2019
111,852

Fiscal year ended
December 31, 2018
146

(Millions of yen)
Fiscal year ended
December 31, 2019
178

888
1,591
49

707
1,414
63

476

32

Accumulated depreciation of property, plant andequipment
Guaranteed liabilities
8,313
7,691
Notes receivable less discount-trade11
4
Endorsed notes receivable - trade72
59
Revaluation of land for business use
The Company has revalued its land for business use pursuant to the Partial Revision to the Act on Land
Revaluation (Act No. 19, announced on March 31, 2001). The equivalent tax related to the change inthe said revaluation has been recorded in the liabilities (non-current liabilities) as “Deferred tax liabilities
for land revaluation” and the deducted amount has been recorded under net assets as “Revaluation
reserve for land.”• Revaluation method:
The revaluation of land has been determined using a reasonableadjustment to the assessed value of the non-current assets forproperty tax as stipulated in Paragraph 3, Article 2 of the
Enforcement Order to the Act on Land Revaluation (Government
Ordinance No. 119, announced on March 31, 1998)
March 31, 2001
• Revaluation date:• Variance between the market
value of the revalued land at the¥(12,862) million, ¥(12,899) million
end of the period and therevalued book value:
Notes to mature on the last day of the fiscal year, etc.
Notes to mature on the last day of the fiscal year, etc. are settled as of the clearing date. Since the last
day of the fiscal year ended December 31, 2019, fell on a holiday of financial institutions, the balanceat the end of period includes the following notes to mature on the last day of the fiscal year, etc.

Notes receivable - trade
Notes payable - trade
Electronically recorded obligations - operating
Other (notes payable - facilities)
Other (electronically recorded obligations - nonoperating)- 18 -

(Consolidated Statements of Income)1.
2.

(Millions of yen)
Fiscal year ended
Fiscal year ended
December 31, 2018 December 31, 2019
1,757
1,760

Research and development expenses
Impairment loss

Fiscal year ended December 31, 2018 (January 1, 2018–December 31, 2018)
The Company recorded impairment losses on the following assets.
Usage

Idle
propertyType

Buildings,
structures,
land

Location(Millions of yen)
Impairment loss

Kashiwazaki, Niigata Pref.

84

Higashikagura-cho, Kamikawa-gun, Hokkaido

13

Namegata, Ibaraki Pref.

12

Mukawa-cho, Yufutsu-gun, Hokkaido

10Nagai, Yamagata Pref.

3

Saroma-cho, Tokoro-gun, Hokkaido

2

Kuwana, Mie Pref.

2

Niigata, Niigata Pref.

1

Yokkaichi, Mie Pref.

1

Mitoyo, Kagawa Pref.

1

Total
133
(Reason to record impairment loss)
Impairment losses were recognized because there is no prospect for use in the future and the market price of theland is declining.
(Measurement of recoverable amount)
Recoverable amounts use the net realizable values and are evaluated based on prices and scheduled sale prices
after reasonable adjustments are made to the valuation amounts of property taxes.
Fiscal year ended December 31, 2019 (January 1, 2019–December 31, 2019)
The Company recorded impairment losses on the following assets.
(Millions of yen)
Usage

Idle
propertyType

Buildings,
structures,
land

Location

Impairment loss

Tsushima, Aichi Pref.

66

Seto, Aichi Pref.

43

Ibaraki-machi, Higashiibaraki-gun, Ibaraki Pref.

11

Nakagawa-machi, Nasu-gun, Tochigi Pref.

1

Watari-cho, Watari-gun, Miyagi Pref.

1

Total

122

(Reason to record impairment loss)
Impairment losses were recognized because there is no prospect for use in the future and the market price of theland is declining.
(Measurement of recoverable amount)
Recoverable amounts use the net realizable values and are evaluated based on prices and scheduled sale prices
after reasonable adjustments are made to the valuation amounts of property taxes.

- 19 -

(Consolidated Statements of Changes in Equity)
Fiscal year ended December 31, 2018 (January 1, 2018–December 31, 2018)
1. Matters concerning the class and total number of shares issued and class and number of treasury shares
Number of shares
Increase in number of(as of January 1, 2018) shares during period

Decrease in number ofshares during period

22,984,993――

22,984,993

395,946

253

1,200

394,999(Number ofshares issued)
Common stock(Treasury shares)
Common stock

Number of shares (as ofDecember 31, 2018)

The increase in the number of treasury shares by 253 shares was due to purchase of shares below stock trading unit.
The decrease in the number of treasury shares was due to a 1,200 share decrease due to the exercise of stockacquisition rights.
2. Dividends(1) Cash dividends paid
Resolution

Class of shares

Total amount ofdividend paid
(millions of yen)

Ordinary General
Meeting of
Shareholders on
March 29, 2018

Common stock

677

Dividend per share(yen)

Record date

30.00 December 31, 2017

Effective date

March 30, 2018

(2) Of the dividends for which the record date belongs to the fiscal year ended December 31, 2018, those for which
the effective date of the dividends will be in the fiscal year ended December 31, 2019.
Resolution

Class of shares

Source offunds fordividends

Total amount ofdividend paid
(millions of yen)

Dividend pershare (yen)Record date

Effective dateOrdinary General
Meeting of
Shareholders on
March 26, 2019

Common stock

Retainedearnings

677

30.00

December 31,
2018

March 27, 2019

Fiscal year ended December 31, 2019 (January 1, 2019–December 31, 2019)
1. Matters concerning the class and total number of shares issued and class and number of treasury shares
Number of shares
Increase in number of(as of January 1, 2019) shares during period

Decrease in number ofshares during period

22,984,993――

22,984,993

394,999

566

1,000

394,565(Number ofshares issued)
Common stock(Treasury shares)
Common stock

Number of shares (as ofDecember 31, 2019)

The increase in the number of treasury shares by 566 shares was due to purchase of shares below stock trading unit.
The decrease in the number of treasury shares was due to a 1,000 share decrease due to the exercise of stockacquisition rights.
2. Dividends(1) Cash dividends paid
Resolution

Class of shares

Total amount ofdividend paid
(millions of yen)

Ordinary General
Meeting of
Shareholders on
March 26, 2019

Common stock

677

Dividend per share(yen)

Record date

30.00 December 31, 2018

Effective date

March 27, 2019(2) Of the dividends for which the record date belongs to the fiscal year ended December 31, 2019, those for which
the effective date of the dividends will be in the fiscal year ending December 31, 2020.
Resolution

Class of shares

Source offunds fordividends

Total amount ofdividend paid
(millions of yen)

Dividend pershare (yen)Record date

Effective dateOrdinary General
Meeting of
Shareholders on
March 27, 2020

Common stock

Retainedearnings

677

30.00

December 31,
2019

March 30, 2020

- 20 -

(Consolidated Statements of Cash Flows)
Reconciliation between cash and cash equivalents at the end of period and the amount reported in the Consolidated
Balance Sheet.
(Millions of yen)
Fiscal year ended
Fiscal year ended
December 31, 2018
December 31, 2019
Cash and deposits
7,475
8,404
Time deposits with terms of more than 3 months
(88)
(35)
Total cash and cash equivalents
7,387
8,369
(Segment Information)
Since the Group only had the “agriculture-related business” segment, the segment information is omitted.
(Per Share Information)(Yen)
Fiscal year ended
December 31, 2018
Net assets per share

Fiscal year ended
December 31, 2019

2,974.78

2,987.19

Basic earnings per share

48.29

32.01

Diluted earnings per share

48.21

31.96

Note:
1. The basis for calculation of basic earnings per share and diluted earnings per share are as follows.
(Millions of yen)
Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

Basic earnings per share
Profit attributable to owners of parent reported in theConsolidated Statements of Income

1,090

723

―

―

1,090

723

22,589,460

22,590,528――

Increase in common shares (shares)

35,28333,042[Portion of subscription rights to shares] (shares)(35,283)(33,042)――

Profit not attributable to common shareholders
Profit attributable to owners of parent attributed tocommon shares
Average number of common shares during period(shares)
Diluted earnings per share
Adjustment of profit attributable to owners of parent
reported in the Consolidated Statements of Income

Dilutive securities that were not included in thecomputation of diluted earnings per share because of
their anti-dilutive effect(Significant Subsequent Events)(Signing of a Significant Contract)
At the meeting of the Board of Directors held on January 14, 2020, the Company resolved to sign an agreement(hereafter the "Agreement") with Dongfeng Motor Group regarding Dongfeng Motor Group's additional investment
in Dongfeng Iseki Agricultural Machinery Co., Ltd., an equity method affiliate (hereafter "Dongfeng Iseki"), for the
purpose of working toward further business expansion and localization of business operations in China. An outline of
the Agreement is as follows.
(1) Outline of the Agreement
Dongfeng Motor Group will invest an additional 143 million yuan in Dongfeng Iseki. As a result of theAgreement, our investment ratio in Dongfeng Iseki will decrease from 50% to 25%.
There will be no change in the importance placed on business in China in our overseas strategy after the signing- 21 -

of the Agreement. We will continue to develop Dongfeng Iseki, centering on technical support including exports
of products and parts, and licensing technology of our high-performance and high-tech models.
(2) Name of counterparty to the Agreement
Dongfeng Asset Management Co., Ltd, Wuhan Yisaike Corporate Management Partnership(3) Agreement signing date
January 17, 2020

- 22 -

5. Non-consolidated Financial Statements and Principal Notes(1) Non-consolidated Balance Sheets(Millions of yen)
As of December 31, 2018 As of December 31, 2019
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments - trade
Prepaid expenses
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Structures, net
Machinery and equipment, net
Vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold right
SoftwareLeased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries and associates
Long-term loans receivable
Long-term prepaid expenses
Prepaid pension cost
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets- 23 -

3,649
2,881
25,61315,851
6
307
464
267
14,2823,118(4)66,4383,569
2,397
23,492
15,176
22
322
385
286
13,1612,873(4)61,682

8,064
569
1,831
3
1,063
25,503330
66
37,432

7,895
564
1,738
3
1,341
25,478339
116
37,478

85
255
200
39
580

85
360
265
77
789

5,598
19,105
94
1,941
2,652
369
874
447
334
(9)
(825)
30,582
68,595135,034

5,158
19,041
92
493
3,740
329
1,035
781
332
(9)
(825)
30,171
68,439130,122

(Millions of yen)
As of December 31, 2018 As of December 31, 2019
Liabilities
Current liabilities
Notes payable - trade
Electronically recorded obligations - operating
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Account payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Asset retirement obligations
Long-term deposits received
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuations and translation adjustments
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets- 24 -

4,423
8,614
18,768
9,000
7,798
208
874
1,636
111
119
225
106
594
52,483

4,936
8,306
15,863
6,000
7,335
208
534
1,658
92
365
235
93
452
46,082

14,885
367
5,780
2,724
112
538
50
24,46076,944

15,450
449
5,759
2,804
113
533
─
25,10971,192

23,344

23,344

11,5542,448
14,003

11,5542,448
14,003

8,559
8,559
(983)
44,924

9,485
9,485
(982)
45,851417
12,67013,08778
58,090135,034

380
12,622
13,00275
58,929130,122

(2) Non-consolidated Statements of Income(Millions of yen)
Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

Net sales

93,11890,016

Cost of sales

80,77977,557Gross profit

12,33912,458Selling, general and administrative expenses

11,837

11,465502

992

Interest income

307

374

Dividend income

908

924

1,220

1,178

Technical support fee

499

―

Other

451

415

3,386

2,892

Interest expenses

194

214

Sales discounts

43

42

Rent expenses

978

1,042

Other

314

344

1,530

1,643

2,358

2,241

Gain on sales of non-current assets

24

11

Gain on sales of investment securities―

243

Total extraordinary income

24

255

Loss on sales and retirement of non-current assets

73

85

Loss on valuation of investment securities

160―

Loss on valuation of shares of subsidiaries and associates
Loss on valuation of investments in capital of subsidiaries
and associates

116

64

―

1,448

1

0

Total extraordinary losses

351

1,597

Income before income taxes

2,030

900

Income taxes - current

(49)

(315)

Income taxes - deferred

322

(339)

Total income taxes

272

(655)

1,757

1,555

Operating income
Non-operating income

Rent income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

Other

Profit- 25 -

(3) Non-consolidated Statements of Changes in Equity
Fiscal year ended December 31, 2018 (January 1, 2018－December 31, 2018)(Millions of yen)
Shareholders’ equity
Capital surplus

Balance at beginning of
periodChanges of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus23,344

11,5542,449

Retained earnings
Other retained
Total
earnings
Treasurysharesshareholders’
Total capital
Total retained
Retained
equitysurplusearnings
earnings
brought forward

14,004

7,479

7,479

(986)

43,842

Dividends of surplus

(677)

(677)

(677)

Profit

1,757

1,757

1,757

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of period

(0)

(0)

2

(0)

(0)

1,079

1,079

2

1,082

23,344

11,5542,448

14,003

8,559

8,559

(983)

44,924

1,794

12,67014,46480

58,387

Dividends of surplus(677)

Profit1,757

Balance at end of period

2―

Valuation
Total valuation Subscription Total net assets
difference on
Revaluationand translation rights to sharesavailable-for- reserve for land
adjustments
sale securities

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period(0)―

Valuation and translation adjustments

Balance at beginning of
periodChanges of items during
period(0)(0)
2(1,377)―(1,377)(2)(1,379)(1,377)―(1,377)

(2)

(297)

417

12,67013,08778

58,090- 26 -

Fiscal year ended December 31, 2019 (January 1, 2019－December 31, 2019)(Millions of yen)
Shareholders’ equity
Capital surplus

Balance at beginning of
periodChanges of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus23,344

11,5542,448

Retained earnings
Other retained
Total
earnings
Total capital
Total retained Treasury shares shareholders’
Retained
equitysurplusearnings
earnings
brought forward

8,559

8,559

Dividends of surplus

(677)

(677)

(677)

Profit

1,555

1,555

1,555

Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of period(0)

14,003

(0)
48

48

(0)

2

2
48

(0)

(0)

925

925

1

926

23,344

11,5542,448

14,003

9,485

9,485

(982)

45,851417

12,67013,08778

58,090

Dividends of surplus(677)

Profit1,555

Balance at end of period(0)―

Valuation and translation adjustments

Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes of items
other than shareholders’equityTotal changes of items
during period

44,924―

Valuation
Total valuation Subscription Total net assets
Revaluationdifference onand translation rights to sharesavailable-for- reserve for land
adjustments
sale securities

Balance at beginning of
periodChanges of items during
period

(983)

(0)
2
48

(37)

(48)

(85)

(2)

(87)

(37)

(48)

(85)

(2)

839

380

12,622

13,00275

58,929- 27 -

(4) Notes to Non-consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable.
(Changes in Presentation)
Non-consolidated Balance Sheets(Changes in line with application of the Partial Amendments to Accounting Standard for Tax EffectAccounting)
As the Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ
Statement No. 28 issued on February 16, 2018) from the beginning of the fiscal year under review, we havechanged to a method whereby deferred tax assets are reported under investments and other assets, and deferred
tax liabilities are reported under non-current liabilities.
As a result, the ¥225 million in deferred tax assets recorded under current assets in the previous fiscal year isincluded in the ¥447 million in deferred tax assets recorded under investments and other assets.
(Significant Subsequent Events)
As stated in 4. Consolidated Financial Statements and Principal Notes (Significant Subsequent Events).

6. Others(1) Production, Orders and Sales

1) Production results per product-type(Millions of yen)
Breakdown

Fiscal year ended
Fiscal year ended
December 31, 2018 December 31, 2019

ChangeCultivating & mowing
machinery

54,85752,388(2,469)Planting machinery

14,37912,967(1,412)

16,336

22,115

5,778

2,708

2,302

(406)

6,378

5,008

(1,370)94,661

94,782120

Harvesting and processing
machinery
Spare parts and farming
implements
Other agriculture related
business
Total
Note: Figures are shown in terms of sales values.

2) Orders
We operate a system whereby production is based mostly on projected demand. We hardly ever produce onorder.

- 28 -

3) Sales results per product-type(a) Total(Millions of yen)

Breakdown

Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

AmountAmount

Ratio

Ratio

ChangeAmount%Cultivating & mowing
machinery

53,318%34.2

50,692%33.8(2,626)%(4.9)

Planting machinery

11,1297.1

10,226

6.8

(902)

(8.1)

20,543

13.2

20,296

13.6

(247)

(1.2)

43,401

27.8

43,611

29.1

210

0.5

27,562

17.7

25,071

16.7(2,490)(9.0)

155,955

100

149,899

100(6,056)(3.9)

Harvesting and processing
machinery
Spare parts, farming
implements, and repair fees
Other agriculture related
business
Total(b) Domestic(Millions of yen)

Breakdown

Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

AmountAmount

Ratio

Ratio

ChangeAmount%Cultivating & mowing
machinery

27,423%22.3

25,373%21.5(2,049)%(7.5)

Planting machinery

9,182

7.5

9,049

7.7

(133)

(1.5)

Harvesting and processing
machinery
Spare parts, farming
implements, and repair fees
Other agriculture related
business

19,962

16.2

18,59115.8(1,370)(6.9)

40,62633.1

40,809

34.7

183

0.5

25,61820.9

23,89420.3(1,724)

(6.7)

Total

122,812

100

117,717100(5,094)(4.1)(c) Overseas(Millions of yen)

Breakdown

Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

AmountAmount

Ratio

Ratio

ChangeAmount%Cultivating & mowing
machinery

25,895%78.1

25,319

%
78.7

(576)

%
(2.2)

Planting machinery

1,947

5.9

1,177

3.7

(769)

(39.5)

Harvesting and processing
machinery
Spare parts and farming
implements
Other agriculture related
business

581

1.7

1,704

5.3

1,123

193.1

2,775

8.4

2,802

8.7

27

1.0

1,944

5.9

1,177

3.6

(766)

(39.4)

Total

33,143

(962)

(2.9)

100

- 29 -

32,181100