November 13, 2019
ISEKI & CO., LTD.
Supplementary Information to Consolidated Financial Results(January 1, 2019 – September 30, 2019)
I. Consolidated results of operations for the nine months ended September 30, 2019 (Billions of yen, %)FY ending
December 31,
2019 forecast
announced on
February 13, 2019

3Q of
FY ended
December 31,
2018

3Q ofFY ending
December 31,
2019

119.2

121.0

1.8

1.5

164.0

Domestic

93.9

96.0

2.1

2.2

126.7

Overseas

25.3

25.0

(0.3)

(1.1)

37.3

Gross profit

35.4

35.8

0.4

1.3

—Gross profit margin29.7%

29.6%(0.1)%——

Selling, general andadministrative expenses

31.8

31.3

(0.5)

—

—

Operating income

3.6

4.5

0.9

26.0

4.0

Operating income ratio

3.0%

3.7%

0.7%

—

2.4%

Balance of financial
income

(0.6)

(0.6)

0.0

—

—

Other non-operating
income

(0.2)

(0.7)

(0.5)

—

—

2.8

3.2

0.4

17.8

2.6

Ordinary income ratio

2.3%

2.7%

0.4%

—

1.6%

Extraordinary income

0.1

0.1

0.0

—

—

Extraordinary losses

(0.1)

(0.2)

(0.1)

—

—

Income before income taxes

2.83.1

0.3

13.6

—

(0.6)

(1.0)

(0.4)

——

2.2

2.1

(0.1)

(3.9)

1.6

Net sales

Ordinary income

Income taxes
Profit attributable to ownersof parent1Year-on-year change
Amount%(Sales breakdown)(Billions of yen)
3Q of
FY ended
December 31,
2018

3Q of
FY ending
December 31,
2019Year-on-yearchange

FY ending
December 31,
2019 forecast
announced on
February 13, 2019
58.6
21.3
15.3
5.9

Agricultural machinery
Farming implements
Spare parts
Repair fees
Totals agriculturalmachinery related
Construction of facilitiesOther agriculture-related
business
Domestic sales total

42.3
16.0
11.3
4.2

43.4
17.2
11.8
4.4

1.1
1.2
0.5
0.2

73.8

76.8

3.0

101.1

5.0

4.0

(1.0)

5.2

15.1

15.2

0.1

20.4

93.9

96.0

2.1

126.7

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

8.3
8.4
1.0
2.5
1.4
21.6
1.9
1.8
25.3

9.8
7.8
0.1
1.0
3.1
21.8
1.8
1.4
25.0

1.5
(0.6)
(0.9)
(1.5)
1.7
0.2
(0.1)
(0.4)
(0.3)

12.212.0
0.2
4.0
4.2
32.6
2.7
2.0
37.3

Total net sales

119.2

121.0

1.8

164.0

2

Year-on-year change(1) Net sales: ¥121.0 billion (up ¥1.8 billion (1.5%) year on year)
Sales in Japan increased, as a result of increased sales of agricultural machinery, farming
implements, etc., due to a last-minute surge in demand in advance of the consumption tax
increase.
Sales overseas decreased slightly overall due to sales decreases in Europe, China and ASEAN
despite steady sales in North America and an increase in shipments to South Korea.
i) Sales in Japan: ¥96.0 billion (up ¥2.1 billion (2.2%) year on year)
Overall sales related to agricultural machinery increased by ¥3.0 billion as a result of increased sales ofagricultural machinery such as tractors and rice transplanters, farming implements, etc., due to alast-minute surge in demand in advance of the consumption tax increase in the third quarter.
Sales of construction of facilities decreased by ¥1.0 billion due to the absence of the completion of theconstruction of large-scale facilities in the same period of the previous fiscal year.
ii) Sales overseas: ¥25.0 billion (down ¥0.3 billion (1.1%) year on year)
Sales in North America increased by ¥1.5 billion due to favorable sales of new compact tractors.
Sales in Europe decreased by ¥0.6 billion due to decreased shipments of lawn mowers caused by theunseasonable weather and the effect of currency exchange rates linked to the higher yen.
Sales in China decreased by ¥0.9 billion mainly due to decreased shipments of semi-finished ricetransplanters accompanying local inventory adjustments.
Sales in ASEAN decreased by ¥1.5 billion due to a decrease in Indonesian government tendering anddecreased shipments of tractors to Thailand.
Sales in other regions increased by ¥1.7 billion mainly due to increased deliveries to South Korea.
(2) Revenue: a reduction in selling, general and administrative expenses in addition to an increase ingross profit owing to increased sales in Japani) Operating income: ¥4.5 billion (up ¥0.9 billion year on year)ii) Ordinary income: ¥3.2 billion (up ¥0.4 billion year on year)iii) Profit: ¥2.1 billion (down ¥0.1 billion year on year)
Operating income increased by ¥0.9 billion primarily as a result of a reduction in selling, general andadministrative expenses in addition to an increase in gross profit owing to increased sales in Japan.
Ordinary income increased by ¥0.4 billion mainly due to the recording of foreign exchange losses andthe share of loss of entities accounted for using equity method.

3II. Consolidated financial results forecasts for the fiscal year ending December 31, 2019
With regard to the consolidated financial results forecasts for the fiscal year ending December 31, 2019
announced on February 13, 2019, we have made a downward revision of net sales in the amount of ¥8.5 billion
from the previous forecast (released on February 13, 2019) in consideration of the actual financial results for thenine months ended September 30, 2019, the current trends of orders received, foreign exchange rates, and otherfactors. There are no revisions in any of the other income items from operating income onward as it is expectedthat profits in the previous forecast can be secured mainly due to lower than expected prices of raw materials,
cost reduction by improving operational efficiency, and price reconsideration in terms of sales.
[Consolidated financial results forecasts for the fiscal year ending December 31, 2019](January 1, 2019 through December 31, 2019)
FY ended
December 31,2018

Previous
forecasts for
FY ending
December 31,2019(released on
February 13)

Revisedforecasts for
FY ending
December 31,2019(released on
November 13)

156.0
122.8
33.2

164.0
126.7
37.3

Operating income

3.2

Ordinary income
Profit attributableto owners ofparent

Net sales
DomesticOverseas(Billions of yen, %)Year-on-yearchangeDifference fromthe previous
forecasts

155.5
122.7
32.8(0.5)
(0.1)
(0.4)

(8.5)
(4.0)
(4.5)

4.0

4.0

0.8

0.0

2.6

2.6

2.6

0.0

0.0

1.1

1.6

1.6

0.5

0.0

* The assumed foreign exchange rates for the fourth quarter: ¥108 per U.S. dollar (continued)¥119 per euro (changed from ¥125)
・Sales in Japan have been revised downward in the amount of ¥4.0 billion from the previous forecast, due tolower than expected sales despite a last-minute surge in demand in advance of the consumption tax
increase and recovery of sales of large-sized tractors in the third quarter.
・Sales overseas have been revised downward in the amount of ¥4.5 billion from the previous forecast,mainly due to sluggish demand in Europe due to the effect of currency exchange rates and theunseasonable weather, and delayed sales recovery in the ASEAN markets, despite a continued increase insales in the North American market.

* Explanation on the proper use of financial results forecasts
The financial results forecasts and other forward-looking statements contained in this report are basedon information available to the Company on the date of this report’s release and certain preconditions
that the Company deems to be reasonable. Actual results etc. may differ significantly from theforecasts, however, as a result of various factors.

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