November 11, 2010
Stock Exchange Listing: Tokyo
Head Office:
Tokyo
Name
Seiichiro Gamo
Hiroshi Yunoki
Name
Telephone: +81 3 5604 7671
Date of Submission of Quarterly Report
November 11, 2010
Scheduled Date to Commence Dividend Payment
Preparation of supplementary information for quarterly financial informatioYes
Holding of quarterly financial results briefing
Yes (For institutional investors, analysts)
Name of listed company:
Company Code:
Representative:
Title
Enquiries:
Title

ISEKI & CO., LTD.
6310
(URL http://www.iseki.co.jp)
President
General Manager of Finance

Summary Announcement of Consolidated Financial Results
for the Six Months Ended September 30, 2010
I. Financial Results for the Six Months Ended September 30, 2010 (April 1, 2010  September 30, 2010)
A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Six Months Ended
September 30, 2010
Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted

75,420
2,291
1,763
71

Six Months Ended
September 30, 2009

%
8.2
(9.4)
(19.7)(95.5)%

69,726
2,528
2,197
1,597

0.31
-

(9.5)
108.2
95.1
131.3

7.06
6.95

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

September 30, 2010
Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio
Net Assets per Share (yen)March 31, 2010

168,351
55,41932.0%
234.67

171,044
55,60431.6%
235.46

Notes: Shareholders’ equity:
Second Quarter of FY Mar. 2011 ¥53,924 mil. FY ended Mar. 2010 ¥54,109mil.
II. Dividends

Dividend per share (Yen)(Recorded date)
FY ended March 2010
FY ending March 2011

End of 1Q-

End of 2Q-

FY ending March 2011 (forecast)End of 3Q-

Year-end
0.00

Annual
0.00

-

-

-

(Note) Revision of dividend forecast during the second quarter of FY ending March 2011: None
As we have yet to determine the specific expected dividend amount, forecasts for the fiscal year-end andfull year are indicated with a dash.

1(Please refer to “Statement regarding proper use of financial performance forecasts and other notes”)
III. Forecast for the Fiscal Year Ending March 31, 2011 (April 1, 2010  March 31, 2011)(Rounded down to millions of yen, % represents comparison with previous year for the full year performance)

AnnualNet sales%

Operatingincome%Ordinary
Income%Net
income%Net income pershare (yen)151,000

1.1

3,500

(22.5)

2,300(37.1)

100(95.7)

0.44(Note) Revision of performance forecast during the second quarter of FY ending March 2011: Yes
IV. Others (Please refer to page 6 of the attached document [2. Other Information] for detail)A. Change in important subsidiaries during the period: None.
(Note) Existence or nonexistence of change in specified subsidiaries which accompanies a change in the range ofconsolidation.
B. Adoption of simplified accounting method and unique accounting method: Yes(Note) Existence or nonexistence of adoption of simplified method in accounting method and unique accounting
method for quarterly financial statements.
C. Change in principle, procedure and method of statement of accounting procedures
1) Change which accompanies revision of accounting standards: Yes
2) Change other than No.1.
: None(Note) Existence or nonexistence of change in principle, procedure and method of statement of accounting
procedures for preparation of quarterly financial statements as stated in “Changes in Basic Important
Matters for Preparing Quarterly Financial Statements”.
D. Outstanding shares (Common shares)
1) Outstanding shares as of the end of the period (Including treasury shares)
Second quarter of FY ending March 31, 2011229,849,936 shares
FY ended March 31, 2010
229,849,936 shares
2) Outstanding treasury shares as of the end of the period
Second quarter of FY ending March 31, 2011
58,734 shares
FY ended March 31, 2010
44,223 shares
3) Average number of shares during the period (Quarterly consolidated cumulative period)
Second quarter of FY ending March 31, 2011229,799,472 shares
Second quarter of FY ended March 31, 2010
226,436,219 shares* Statement regarding state of implementation of quarterly review procedure
While these quarterly financial results are exempted from the requirement of quarterly review procedure under
the Financial Instruments and Exchange Act, we have completed the review procedure of the quarterly financial
statements.
* Statement regarding proper use of financial performance forecasts and other notes.
--

The forecast for operating results has been produced based on information presently available and certain
assumptions deemed reasonable. It is possible that in future actual results may differ from the anticipatedfigures for a variety of reasons. For assumed conditions of the business performance forecast and adequate useof the forecast, please refer to page 5 of the attached document, [Qualitative information regarding quarterly
consolidated financial results, etc], [3. Qualitative information regarding performance forecast].
With respect to dividends, as we have yet to determine the specific expected dividend amount at this point inview of a prospect of continued uncertain business environment, we will make an announcement wheneverdisclosure of the specific amount is made possible.

2

Content of the attached document

1. Qualitative Information regarding quarterly consolidated financial results, etc. ······················· 4(1) Qualitative information concerning the status of consolidated financial results ················ 4(2) Qualitative information concerning the shifts in consolidated financial position ·············· 5(3) Qualitative information regarding performance forecast··················································· 5
2. Other Information ···················································································································· 6(1) Changes in important subsidiaries ·················································································· 6(2) Simplified accounting method and unique accounting method ······································· 6(3) Change in principle, procedure and method of statement of accounting procedures ········· 6
3. Consolidated Quarterly Financial Statements··········································································· 6(1) Consolidated Quarterly Balance Sheet ············································································· 6(2) Consolidated Quarterly Statement of Income ··································································· 8(3) Consolidated Quarterly Statement of Cash Flows····························································· 9(4) Notes on Going Concern Premises ················································································· 10(5) Segment Information······································································································ 10(6) Significant Changes in Shareholders’ Equity ·································································· 10

31. Qualitative Information regarding quarterly consolidated financial results, etc.

(1) Qualitative information concerning the status of consolidated financial results
During the second quarter consolidated cumulative period under review, uncertainty in the Japanese economy
remained due to the progression of sharp appreciation of the yen coupled with employment and consumer spending
which persisted at low level, in spite of signs of a partial recovery.
Under the economic environment, ISEKI Group accomplished consolidated financial results as set out below.
In the second quarter consolidated cumulative period, sales increased ¥5.693 billion from the same period of theprevious year, to ¥75.42 billion (up 8.2%). Domestic sales increased ¥4.514 billion to ¥66.281 billion (up 7.3%).
Overseas sales increased ¥1.179 billion to ¥9.139 billion (up 14.8%). Operating income decreased ¥0.236 billion to¥2.291 billion (down 9.4%), due to appreciated yen and increased SG&A expenses. Ordinary income decreased¥0.433 billion to ¥1.763 billion (down 19.7%). Quarterly net income decreased ¥1.526 billion to ¥0.071 billion(down 95.5%).

Financial results by segment are as follows:
From the first quarter consolidated cumulative accounting period under review, by adoption of “Accounting
standard for disclosures about segments of an enterprise and related information” (ASBJ Statement No.17, March 27,2009) and “Guidance on accounting standard for disclosures about segments of an enterprise and related information(ASBJ Guidance No.20, March 21, 2008), we provided the segment information as “Agriculture related business”
and “Other business”.
Comparison with the same quarter of the previous year is stated by having classified the figures in the second
quarter consolidated cumulative period according to the new segments.
1) Agriculture related business
Our sales in the domestic market increased due to increased sales in Jan.- Mar. related to the urgent machinery
leasing support program which was implemented in the previous year, and increased facility construction. Overseas
sales increased as well mainly due to recovery of orders received by the progress in an inventory adjustment of our
OEM partner in North America, in spite of the effect of strong yen.
The trend of sales by product is as follows.
(Domestic)
Sales of machinery for soil preparation (tractors, tillers, etc.) were ¥15.983 billion (down 0.8% from the same
period of the previous year), and sales of cultivating machinery (rice transplanters, vegetable transplanters) were
¥8.447 billion (up 3.3%). Sales of harvesting and processing machines (combine harvesters, etc.) were ¥7.703 billion(up 8.8%). Sales of spare parts and farming implements were ¥16.918 billion (up 9.6%). The other agriculture
related sales (facility construction, etc.) were ¥17.152 billion (up 15.5%).
(Overseas)
Sales of machinery for soil preparation (tractors, etc.) were ¥5.841 billion (up 30.8% from the same period of theprevious year), and sales of cultivating machinery (rice transplanters) were ¥1.843 billion (up 27.1%). Sales of
harvesting and processing machines (combine harvesters, etc.) were ¥0.465 billion (down 54.5%). Sales of spareparts and farming implements were ¥0.5 billion (down 1.2%). The other agriculture related sales were ¥0.489 billion(down 4.8%).
As a result, the segment sales stood at ¥75.345billion.

42) Other businessAs other business, we engage in development/sales/operation of computer software. The segment sales stood at¥0.075 billion.

(2) Qualitative information concerning the shifts in consolidated financial position
As of the end of the second quarter consolidated cumulative period, total assets decreased ¥2.693 billion from theprevious period to ¥168.351 billion. The main items of assets were a ¥0.719 billion decrease in cash and cash
equivalents, a ¥0.977 billion increase in notes and accounts receivable, a ¥1.885 billion decrease in commodity andproducts, and a ¥1.036 billion decrease in investment securities.
Total liabilities decreased ¥2.507 billion from the previous fiscal year end to ¥112.932 billion, mainly due to a
¥2.635 billion decrease in interest-bearing liabilities. Net assets decreased ¥0.185 billion from the previous fiscal
year end to ¥55.419 billion. As a result, the equity ratio was 32.0%.
Cash and cash equivalents, at the end of the second quarter consolidated cumulative period, decreased ¥1.152
billion from the previous fiscal year end, to ¥5.461 billion.
(Cash flow from operating activities)
Cash flow from operating activities in the second quarter under review resulted in a net revenue of ¥4.555 billion(net revenue increased ¥5.329 billion from the same period last year), mainly due to a ¥1.5 billion decrease ininventory assets.
(Cash flow from investment activities)
Cash flow from investment activities in the second quarter under review resulted in a net expenditure of ¥3.246
billion (net expenditure increased ¥1.308 billion from the same period last year) mainly due to capital investment
expenditure of ¥2.892 billion.
(Cash flow from financial activities)
Cash flow from financial activities in the second quarter under review resulted in a net expenditure of ¥2.543
billion (increased expenditure of ¥9.599 billion from the same period last year), mainly due to increase and decreaseof interest-bearing liabilities.

(3) Qualitative information regarding performance forecast
During the second quarter consolidated cumulative period under review, while we managed to achieve an
increase in revenue from the same period last year, it was largely due to special situations such as the effect of theurgent machinery leasing program and the construction of facilities. The difficult situation continues, and there areconcerns about the business environment surrounding the ISEKI Group such as slow economic recovery both insideand outside the country, the prolonged trend of strong yen and raw material prices which stay high. In view of thecircumstances, we will endeavor to expand sales by aggressive promotion of sales activities to stimulate theactivation of the market, with the introduction of the commemorative products of our 85th anniversary of start ofbusiness.
In view of the many uncertainties in forecasting our business performance, we revised the business performance
forecast announced on May 14, 2010, in line with recent appreciation of yen and appropriation of evaluation loss on
investment securities.
From the third quarter, regarding company foreign exchange rates, we assume ¥80 against the US dollar, astronger yen rate by ¥10, and we continue to assume ¥110 against the Euro.

5

2. Other Information(1) Changes in important subsidiaries
There is no corresponding item.
(2) Simplified accounting method and unique accounting method
1) Calculation method of income taxes, deferred tax assets and deferred tax liabilities
Concerning calculation of payable tax of income taxes, we employ a method to limit add-subtract items and tax
exemption items to important ones. With respect to evaluation of collectability of deferred tax assets, we rely on amethod to use business performance forecast or tax planning used in the previous consolidated fiscal year in case no
significant change is recognized in the managerial environment or situation to generate differences.
(3) Changes in principle, procedure and method of statement of accounting procedures
1) Application of the accounting standard for asset retirement obligations
From the first quarter consolidated cumulative period under review, we adopted the “Accounting Standards for
Asset Retirement Obligations” (ASBJ Statement No.18, March 31, 2008) and the “Guidance on AccountingStandards for Asset Retirement Obligations” (ASBJ Guidance No.21, March 31, 2008).
Due to this application, during the second quarter cumulative period, both operating income and ordinary income
were reduced by ¥4 million, and the quarterly net income before income taxes was reduced by ¥223 million.
3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(millions of yen)

AssetsCurrent Assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total Current Assets
Noncurrent Assets:
Property, plant and equipment
Buildings and structures, net
Land
Others, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investment and other assets
Total Noncurrent Assets
Total Assets

6

FY2011(as at Sep. 30, 2010)

FY2010(as at Mar. 31, 2010)

5,985
30,29719
35,250
3,323
1,395
2,676
(87)
78,862

6,705
29,32019
37,136
3,219
1,114
3,319
(74)
80,761

14,73050,213
14,98779,931891

14,83550,19014,672
79,697
883

4,236
4,869
(439)
8,666
89,489168,351

5,272
4,884
(455)
9,702
90,283
171,044(millions of yen)
FY2011(as at Sep.30, 2010)

FY2010(as at Mar. 31, 2010)

Notes and accounts payable-trade42,14041,773

Short-term loans payable

18,771

15,846

Current portion of bonds

40

1,060

13,057

13,376

Accrued consumption taxes

771

753

Provision for bonuses

699

416

7,633

8,543

83,113

81,770100-Long-term loans payable

11,63815,958Deferred tax liabilities for land revaluation

7,595

7,595

Provision for retirement benefits

5,256

5,084

Provision for directors' retirement benefits

124

155

Asset retirement obligations

284

-

4,819

4,875

29,81933,669112,932

115,439

Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

6,148

6,076

Treasury stock

(16)

(13)

42,93042,862

Liabilities
Current Liabilities:

Current portion of long-term loans payable

Other
Total Current Liabilities
Noncurrent Liabilities:
Bonds payable

Other
Total Noncurrent liabilities
Total Liabilities
Net Assets
Shareholders' equity

Total Shareholders’ Equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Revaluation reserve for land

153

385

10,86910,869Foreign currency translation adjustments

(28)

(7)

10,994

11,247

1,494

1,494

Total Net Assets

55,41955,604

Total Liabilities and Net Assets

168,351

171,044

Total Valuation
Adjustment
Minority interests

andTranslation

7

(2) Consolidated Quarterly Statements of Income(Second Quarter Consolidated Cumulative Period)(millions of yen)
FY2010(Apr.1,2009-Sep.30, 2009)

FY2011(Apr.1,2010-Sep.30, 2010)

Net sales

69,72675,420

Cost of sales

46,19451,64823,532

23,771

21,004

21,480

2,528

2,291

Interest received

78

84

Dividend received

76

72

Other

326

381

480

538

Interest expenses

522

460

Foreign exchange losses

19

327

Other

270

277

811

1,066

2,197

1,763

Gain on sales of noncurrent assets

37

45

Total extraordinary income

37

45

Loss on sales of retirement of noncurrent assets

73

96

Loss on valuation of investment securities
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Cost of measures for product recall

18

662

-

218

43

1

Other

4

5

Total extraordinary losses

139

984

Income before income taxes

2,094

823

Income taxes-current

524

691

Income taxes-deferred

(37)

59

Total income taxes

487

750

Income before minority interests-

72

Minority interests in income

9

1

1,597

71

Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

Net income8(3) Consolidated Quarterly Statements of Cash FlowsNet Cash Provided by (Used in) Operating Activities:
Income before income taxes
Depreciation and amortization
Increase (decrease) in provision for retirement benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment andintangible assets
Decrease(increase) in notes and accounts receivable-trade
Decrease(increase) in inventories
Increase(decrease) in notes and accounts payable-trade
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net Cash Provided by (Used in) Investment Activities:
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Decrease (increase) in time deposits
Other
Net cash provided by (used in) investment activities
Net Cash provided by (Used in) Financing Activities:
Increase (decrease) in short-term loans payable, net
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sale and leaseback transactions
Repayments of lease obligations
Purchases of treasury stock
Other
Net cash provided by (used in) financing activities
Effect of Exchange Rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at beginning of period
Cash and Cash Equivalents at end of period

9

FY2010(Apr.1,2009-Sep.30, 2009)

FY2011(Apr.1,2010-Sep.30, 2010)

2,094
2,451
212
(154)
522
(17)

823
2,700
172
(156)
460
(108)

36

51

(269)
(1,358)(3,975)

(977)
1,500
367

-

218

243
(213)
158
(509)
(633)
424
(774)

348
5,401
157
(467)
(654)
118
4,555

(19)
149

(19)
19

(2,058)(2,892)

182

140

(0)
(158)
(32)
(1,938)

(1)
0
(433)
(61)
(3,246)(2)
12,210(5,292)
(20)
442
(256)
(14)
(9)
7,056

2,934
2,365
(7,004)100(1,020)
659
(565)
(3)
(9)
(2,543)

41

82

4,384
5,609
9,994

(1,152)
6,614
5,461

(4) Note on going concern premises
There is no corresponding item.
(5) Segment information(Additional information)
From the first quarter consolidated cumulative accounting period under review, we adopted the “Accounting
standards for disclosure about segments of an enterprise and related information” (ASBJ Statement No.17, March 27,2009) and the “Guidance on accounting standards for disclosure about segments of an enterprise and related
information” (ASBJ Guidance No.20, March 21, 2008).

1. Outline of reportable segments“Reportable segments of our Company” refers to constitutional units of its business for which separated financial
information is made available, which are subject to periodic review by the board of directors in order to determine
allocation of the managerial resources as well as evaluation of the business performance.
Our business by products/services consists of two reportable segments, namely “Agriculture related business”
which is the core of our business, and “Other business” which attends rest of the business.
“Agriculture related business” dedicates to manufacturing and sales of agricultural machinery, as well as business
related to agriculture/agricultural products including construction/sales of agriculture related facilities and revenue
from the use of rice polishing machines. “Other business” is the information processing service business which
attends development/sales/operation of computer software.

2. Information related to the amount of sales, income or loss by reportable segments
Second quarter consolidated cumulative period under review (April 1, 2010 – September 30, 2010)

Agriculture
relatedNet sales
Net sales to externalcustomers
Internal sales ortransfer among
segments
Total
Segment income (loss)

Other(million of yen)
Quarterly
consolidated
incomestatement
posted amount

Adjustment
amountTotal

75,34575

75,420-75,420

0

67

67

(67)

-

75,34575

142(3)75,48771(67)-

75,42071(Note)
1. Adjustment amount corresponds to elimination of inter-segments transactions
2. Segment income (loss) has been adjusted with the quarterly net income in the quarterly consolidated income
statement.
(6) Note in case there is a substantial change in the amount of shareholders’ equity
There is no corresponding item.

10