May 14, 2018
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 General Manager of Financial Department
Name Katsuhiro Osuga
Telephone: +81-3-5604-7671
Date of Submission of Quarterly Report:
May 14, 2018
Scheduled Date to Commence Dividend Payment:—Supplementary Information for Quarterly Financial Results: Yes
Quarterly Financial Results Briefing:
Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Three Months Ended March 31, 2018 (Japanese GAAP)
I. Consolidated Financial Results for the Three Months Ended March 31, 2018 (January 1, 2018－March 31,2018)
A. Consolidated Results of Operations (Cumulative Total)(Rounded down to a million yen, % indicates changes from the previous corresponding period)

Three Months
Ended March 31,
201836,842
(599)
(914)
(349)

%Three Months
Ended March 31,
201736,679
(273)
(356)
(633)

%

Net Sales
0.4(2.6)
Operating Income――Ordinary Income――
Profit (Loss) Attributable to Owners of Parent――Earnings per Share (yen)(28.05)(15.47)
Basic
Diluted――Note: Comprehensive income
Three months ended March 31, 2018: ¥(1,120) million [—%]
Three months ended March 31, 2017: ¥(875) million [—%]* The Company has consolidated shares of its common stock (one-for-ten share consolidation), effective July l, 2017.
The amounts stated for basic earnings per share are calculated based on the assumption that shares of the common
stock were consolidated at the beginning of the previous fiscal year.

B. Consolidated Financial Position(Rounded down to a million yen)

As of March 31, 2018

As of December 31, 2017

210,429
69,11432.0
2,982.84

201,348
70,91634.4
3,061.84

Total Assets
Net Assets
Shareholder’s Equity to Total Assets Ratio (%)
Net Assets per Share (yen)Reference: Shareholder’s equity
As of March 31, 2018: ¥67,379 million
As of December 31, 2017: ¥69,164 million
II. Dividends

1Q-endFY Ended December 31, 2017
FY Ending December 31, 2018
FY Ending December 31, 2018
(Forecast)

2Q-end——Dividend per Share(yen)3Q-end———Year-end
30.00—

Total30.00

30.00

30.00

Note: Revision of the most recently announced dividend forecast: No
III. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2018 (January 1, 2018－December 31, 2018)(Rounded down to a million yen, % indicates changes from the previous period)
Net Sales%

Operating
Income%Ordinary
Income%86,0007.3
2,000 (29.6)
1,800 (46.7)
164,500
3.9
4,500 13.8
4,300
1.2
Note: Revision of the most recently announced financial results forecast: NoFirst Half
Full Year

ProfitAttributableto Owners ofParent

1,600
3,200%Earningsper Share(yen)(27.1)
14.0

70.83
141.66* NotesA. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in the scope of consolidation): No
New: — (), Exclusion: — ()B. Adoption of special accounting treatment for preparing the quarterly consolidated financial statements: No
C. Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards, etc.:
2) Any changes other than 1) above:3) Changes in accounting estimates:
4) Restatements:

NoNo
NoNo

D. Total number of shares issued (common stock)1) Total number of shares issued at the end of the period (including treasury shares):
As of March 31, 2018
22,984,993 shares
As of December 31, 2017
22,984,993 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2018395,959 shares
As of December 31, 2017395,946 shares
3) Average number of shares during the period (cumulative total):Three months ended March 31, 2018
22,589,038 shares
Three months ended March 31, 2017
22,587,363 shares* The Company has consolidated shares of its common stock (one-for-ten share consolidation), effective
July l, 2017. The amounts stated for the total number of shares issued (common stock) are calculated
based on the assumption that shares of the common stock were consolidated at the beginning of theprevious fiscal year.

* These quarterly financial results are outside the scope of quarterly review procedures to be perfomed bycertified public accountants or an audit corporation.
* Explanation on the proper use of financial results forecasts and other notes
The financial results forecasts and other forward-looking statements contained in this report are based on
information available to the Company on the date of this report’s release and certain preconditions that theCompany deems to be reasonable. Actual results, etc. may differ significantly from the forecasts, however, as aresult of various factors. For details on the preconditions on the financial results forecasts of the Company andnotes on the use of financial results forecasts, please see “1. Qualitative Information on Consolidated Financial
Results for the Period under Review” on page 2 of the Appendix.

 Contents of Appendix
1. Qualitative Information on Consolidated Financial Results for the Period under Review ....................2(1) Explanation on Results of Operations ..............................................................................................2(2) Explanation on Financial Position ....................................................................................................2(3) Explanation on Consolidated Financial Results Forecasts andOther Forecast Information ..............................................................................................................3
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................4(1) Quarterly Consolidated Balance Sheets............................................................................................4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ....................................................................................................................6(3) Notes to Quarterly Consolidated Financial Statements ....................................................................8(Notes to Going Concern Assumption) ............................................................................................8(Notes to Material Changes in Shareholders’ Equity) ......................................................................8-1-

1. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation on Results of Operations
During the three months ended March 31, 2018, the Japanese economy moderately recovered due to ongoingrecovery in personal consumption backed by improved corporate earnings and employment conditions. Meanwhile,
the world economy continued its slow recovery as the economy in the U.S. and Europe remained on a strong
recovery track, with ongoing signs of a pick-up in the Chinese economy.
On the other hand, in the domestic agricultural environment, demand for agricultural machinery is mostly
unchanged, though slightly weakened in association with changing needs in response to structural changes inagriculture including farmland consolidation to principal farmers and rice-crop diversion such as a shift to dry field
farming and vegetable production.
Under these circumstances, the ISEKI Group continued its initiatives to expand sales volume mainly by launching
new products and improving customer service in Japan, while working to strengthen its sales in its mainstay
overseas markets of North America, Europe, China and ASEAN. As a result, the Group’s consolidated financial
results are summarized as follows.
Net sales for the three months ended March 31, 2018 were ¥36,842 million, an increase of ¥163 million (0.4%) yearon year. Domestic sales in Japan were ¥28,418 million, a decrease of ¥113 million (0.4%) year on year, as a result ofslightly decreased overall sales of agricultural machinery due to bad weather in spite of increased sales of ricetransplanters thanks to the launch of new products and ongoing favorable sales of farming implements. Overseas
sales were ¥8,424 million, an increase of ¥276 million (3.4%) year on year. This was mainly due to increased sales
in North America attributable to the disappearance of the effect of partial changes in business terms with an OEM
partner in the same period of the previous fiscal year and decreased shipments of semi-finished rice transplanters inChina stemming from local inventory adjustments.
The Group’s business is susceptible to seasonal fluctuations. In the three months ended March 31, 2018 which is
the off-demand season, we recorded loss in all income items from operating income and below. Operating loss was¥599 million, a decrease of ¥326 million year on year, mainly due to temporary factors such as unprofitable
construction of facilities and expenses resulting from the application of the principle of calculating retirement
benefits upon the merger of subsidiaries, as well as increased personnel expenses and other factors. Ordinary loss
was ¥914 million, a decrease of ¥558 million year on year, mainly due to a worsening in foreign exchange gains orlosses and in the share of profit or loss of entities using equity method. Loss attributable to owners of parent was¥349 million, an increase of ¥284 million year on year, resulting from decreased tax expenses.
Sales by product are as follows.
[Domestic]
Sales of cultivating and mowing machinery (tractors, high-clearance multipurpose vehicles, among others) were
¥7,260 million (a decrease of 4.7% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥2,164 million (an increase of 13.0% year on year). Sales of harvesting and processing
machinery (combine harvesters, among others) were ¥2,800 million (a decrease of 5.5% year on year). Sales offarming implements, spare parts and repair fees were ¥8,566 million (an increase of 1.7% year on year). Sales ofother agriculture-related business (construction of facilities, among others) were ¥7,626 million (an increase of 0.2%year on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥6,064 million (an increase of 45.4%year on year). Sales of planting machinery (rice transplanters, among others) were ¥1,491 million (a decrease of
33.7% year on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥1million (a decrease of 99.8% year on year). Sales of farming implements and spare parts were ¥639 million (anincrease of 11.9% year on year). Sales of other agriculture-related business were ¥226 million (a decrease of 43.2%
year on year).
(2) Explanation on Financial Position[Assets]
Total assets at the end of the first quarter ended March 31, 2018 increased by ¥9,081 million from the end of theprevious fiscal year to ¥210,429 million. This was mainly due to an increase of ¥7,250 million in notes and accounts
receivable - trade, an increase of ¥3,073 million in inventories, and a decrease of ¥889 million of investment
securities.
[Liabilities]
Total liabilities at the end of the first quarter ended March 31, 2018 increased by ¥10,883 million from the end of
the previous fiscal year to ¥141,315 million. This was mainly due to an increase of ¥3,767 million in notes andaccounts payable – trade and electronically recorded obligations - operating, an increase of ¥8,744 million in
short-term loans payable and long-term loans payable, and a decrease of ¥815 million in other current liabilities.
[Net assets]
Total net assets at the end of the first quarter ended March 31, 2018 decreased by ¥1,802 million from the end of
the previous fiscal year to ¥69,114 million. This was mainly due to ¥349 million of loss attributable to owners of-2-

parent, ¥677 million of dividends of surplus, and a decrease of ¥619 million in valuation difference on
available-for-sale securities.
(3) Explanation on Consolidated Financial Results Forecasts and Other Forecast Information
The consolidated financial results forecasts for the first half ending June 30, 2018 and the fiscal year ending
December 31, 2018 have not been revised.
These financial results forecasts are calculated based on the exchange rates at ¥110 per U.S. dollar (unchanged)and ¥130 per euro (unchanged).

-3-3. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2017 As of March 31, 2018
AssetsCurrent assets
Cash and deposits

7,981

8,415

Notes and accounts receivable - trade25,11332,363Merchandise and finished goods

45,41048,963

Work in process

6,728

6,251

Raw materials and supplies

1,267

1,265

Other

5,310

4,562

(60)

(72)

91,751

101,749

Buildings and structures, net

24,343

24,955

Land

50,77351,021Other, net

20,476

19,698

Total property, plant and equipment

95,592

95,676

1,025

1,047

Investment securities

7,146

6,256

Other

5,990

5,856

Allowance for doubtful accounts

(158)

(156)

Total investments and other assets

12,978

11,956

109,596

108,679

201,348

210,429

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

Intangible assets
Investments and other assets

Total non-current assets
Total assets-4-(Millions of yen)
As of December 31, 2017 As of March 31, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade26,53230,298

Electronically recorded obligations - operating
Short-term loans payable

14,14027,21614,141
36,717

Current portion of long-term loans payable

8,004

7,895

Income taxes payable

894

196

Provision for bonuses

446

823

Provision for loss on construction contracts

391

2

Other12,018

11,203

Total current liabilities

89,644

101,278

Non-current liabilities
Long-term loans payable

24,35423,707

Deferred tax liabilities for land revaluation

5,780

5,780

Provision for directors’ retirement benefits

122120Net defined benefit liability
Asset retirement obligations

3,312
315

3,622
316

Other

6,902

6,489

Total non-current liabilities

40,78740,037

Total liabilities

130,432

141,315

Net assets
Shareholders’ equity
Capital stock

23,344

23,344

Capital surplus

13,453

13,453Retained earnings

16,51915,492

Treasury shares

(986)

(986)

52,33051,303

1,818

1,199

(16)

(19)

Revaluation reserve for land

12,67012,670Foreign currency translation adjustment

1,115

991

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

1,244

1,235

Total accumulated other comprehensive income

16,833

16,0758080

Non-controlling interests
Total net assets

1,671
70,916

1,654
69,114

Total liabilities and net assets

201,348

210,429

Subscription rights to shares-5-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
For the Three Months Ended March 31, 2018
(Millions of yen)Three months ended
March 31, 2017

Three months ended
March 31, 2018

Net sales

36,67936,842

Cost of sales

26,581

26,897Gross profit

10,097

9,945

Selling, general and administrative expenses

10,370

10,544

(273)

(599)

Interest income

4233

Dividend income

99

Other

199

271

Total non-operating income

251

314

Interest expenses

141

140

Share of loss of entities accounted for using equity method―

183

Foreign exchange losses

44

183

Other

147

122

Total non-operating expenses

333

629

(356)

(914)

Gain on sales of non-current assets

717

Gain on step acquisitions―

16

Total extraordinary income

734

Loss on sales and retirement of non-current assets

43

22

Impairment loss

21

8

Total extraordinary losses

64

31

Loss before income taxes

(413)

(911)

Income taxes - current

344

158

Income taxes - deferred

(120)

(715)

Total income taxes

224

(556)

Loss(638)

(354)

(4)

(5)

(633)

(349)

Operating lossNon-operating income

Non-operating expenses

Ordinary loss
Extraordinary income

Extraordinary losses

Loss attributable to non-controlling interests
Loss attributable to owners of parent-6-Quarterly Consolidated Statements of Comprehensive Income
For the Three Months Ended March 31, 2018
(Millions of yen)Three months ended
March 31, 2017
Loss

Three months ended
March 31, 2018

(638)

(354)

Valuation difference on available-for-sale securities

(155)

(623)

Deferred gains or losses on hedges

(48)

(3)

Foreign currency translation adjustment

68

(56)

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

(15)

(9)

(86)

(72)

(237)

(765)

(875)

(1,120)(870)(1,106)(5)(13)

Other comprehensive income

Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-(3) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable(Notes to Material Changes in Shareholders’ Equity)
Not applicable-8-