November 11, 2016
Name of Listed Company: ISEKI & CO., LTD.
Stock Exchange Listings: Tokyo
Company Code:6310 (URL http://www.iseki.co.jp)
Representative: Title President
Name Eiichiro Kinoshita
Enquiries:
Title Corporate Officer and General Manager of Financial Department Name Kazuma Takahashi
Telephone: +81 3 5604 7709
Date of Submission of Quarterly Report:
November 11, 2016
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 Nine Months Ended September 30, 2016 (Japanese GAAP)
I. Financial Results for the Nine Months Ended September 30, 2016 (January 1, 2016－September 30, 2016)
A. Results of Operations(Rounded down to a million yen, % indicates changes from the previous period)

Nine Months Ended
September 30, 2016
118,437
2,765
1,610
711

%

Nine Months Ended
September 30, 2015
―
―
―
―

%

Net Sales—―
Operating Income—―
Ordinary Income—―
Profit Attributable to Owners of Parent—―
Profit per Share (yen)―Non-diluted
3.15
Fully Diluted
3.14―
Note: Comprehensive income
Nine months ended September 30, 2016: –¥2,003 mil. (—%)
Nine months ended September 30, 2015: ¥— mil. (—%)
The fiscal year of the Company, previously from April 1 to March 31 of the following year, has been changed to
January 1 to December 31 of the year, effective as of the fiscal year ended December 31, 2015. Accordingly,
year-on-year changes for the nine months ended September 30, 2016 and results of Operations for the nine months
ended September 30, 2015 are not given since consolidated financial statements have not been prepared for the ninemonths ended September 30, 2015.
B. Financial Position(Rounded down to a million yen)

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio (%)
Net Assets per Share (yen)Reference: Shareholders’ equity
As of September 30, 2016: ¥64,061 mil.
As of December 31, 2015: ¥66,380 mil.

As of September 30, 2016

As of December 31, 2015

208,289
65,75130.8
283.61

201,149
68,09933.0
293.87

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

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

Year-end
1.50

Annual
1.50

1.50–
3.00

1.50–
3.00

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

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

155,500
—
2,800
—
2,000
—
700
—
3.10
Note: Revision of the most recently announced performance forecast: Yes
Due to the change in the fiscal year of the Company, the fiscal year ended December 31, 2015 is a nine-month period
from April 1, 2015 to December 31, 2015. Because year-on-year comparisons are impossible, percentage changes
year on year are left blank.
Full Year* Notes
A Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None
B Adoption of unique accounting method for preparing the quarterly consolidated financial statements: None
C Change in accounting policy, change in accounting estimates and restatements
1) Change in accounting policy in response to revision of accounting standards: None
2) Change in accounting policy other than 1):
None3) Change in accounting estimates:
None4) Restatements:
None
D Outstanding shares (common shares)
1) Outstanding shares (including treasury shares) As of September 30, 2016
229,849,936 shares
As of December 31, 2015
229,849,936 shares
2) Outstanding treasury shares
As of September 30, 2016
3,971,968 shares
As of December 31, 2015
3,964,166 shares
3) Average number of shares during the period
Nine months ended September 30, 2016 225,882,597 shares
Nine months ended September 30, 2015
— sharesNote: The fiscal year of the Company, previously from April 1 to March 31 of the following year, hasbeen changed to January 1 to December 31 of the year, effective as of the fiscal year ended
December 31, 2015. Accordingly, the average number of shares during the nine months ended
September 30, 2015 is not given since consolidated financial statements have not been prepared forthe nine months ended September 30, 2015.
*Statement regarding implementation of the quarterly review procedure
Although the summary of quartely financial results is exempt from the quarterly review procedure required
under the Financial Instruments and Exchange Act, we have completed the review procedure of the financial
statements at the time of disclosure.
*Statement regarding the proper use of financial performance forecast and other notes
The forecast for operating results has been determined based on information presently available, as well as on
the assumptions that the Company believes to be reasonable. It is possible that in the future, actual results may
differ from the anticipated figures for a variety of reasons. Please refer to “1. Qualitative Information Regarding
Financial Results for the Period” on page 2 of the supplementary material for the assumptions underlying theforecast and precautions when using the forecast.

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

1. Qualitative Information Regarding Financial Results for the Period(1) Explanation Regarding Business Performance
During the nine months ended September 30, 2016, the Japanese economy saw a continued appreciation of the yen
and sluggish growth of consumer spending. Therefore, a full-fledged economic recovery is believed to take sometime. Furthermore, although the European and U.S. economies remain on a robust recovery trend on the back ofimprovements in the employment situation, there is uncertainty over the outlook of the world economy due to thecontinued deceleration of growth of the Chinese economy since last year and the U.K.’s decision to leave the EU.
With regard to the environment surrounding agriculture in Japan, the demand environment remained at a low level,
despite a rise in the price of rice since last year.
Under such circumstances, the ISEKI Group continued its efforts to increase sales volume in Japan by launching
new products and enhancing customer service, while it endeavored to expand sales overseas in its core markets ofNorth America, Europe, China and the ASEAN region by strengthening marketing. As a result, the Group’s businessperformance can be summarized as follows.
The fiscal year of the Company, previously from April 1 to March 31 of the following year, has been changed to
January 1 to December 31 of the year, effective as of the fiscal year ended December 31, 2015. Accordingly, theprevious fiscal year, which is the transitional period of the fiscal year change, is nine months from April 1, 2015 to
December 31, 2015. Therefore, the operating results for the nine months ended September 30, 2016 are compared
below with the operating results for January 1, 2015 to September 30, 2015, the same period of the previous year.
(Millions of yen, %)Operating Income

Ordinary Income

Profit Attributableto Owners of
Parent118,437

2,765

1,610

711

117,687

1,101

885

0.6%

151.0%

82.0%

Net Sales
Nine Months Ended
September 30, 2016
(Reference) Same
Period of thePrevious Year
Adjusted
Year-on-year Change

During the nine months ended September 30, 2016, net sales increased ¥750 million from the same period of theprevious year to ¥118,437 million (up 0.6%). Domestic sales amounted to ¥91,929 million, down ¥1,071 million(1.2%) from the same period of the previous year. This was due to a decrease in sales of other agriculture-related
business (construction of facilities, etc.), although sales of the agricultural machinery-related business in general,
including farming implements, spare parts, and repair fees, increased despite a drop in sales of agricultural
machinery due to weak recovery in demand for agricultural machinery. Overseas sales increased ¥1,821 million(7.4%) from the same period of the previous year to ¥26,507 million, due to an increase in shipments ofsemi-finished tractors to China, the full-scale sale of which started from this fiscal year, as well as strong shipmentsof tractors in ASEAN to Indonesia and Thailand, despite an impact from changes in exchange rates owing to yen
appreciation.
Operating income totaled ¥2,765 million, up ¥1,663 million (151.0%) from the same period of the previous year,
due to a significant reduction in expenses through full enforcement of low-cost operations, as well as a cut inpersonnel expenses.
Ordinary income amounted to ¥1,610 million, up ¥725 million (82.0%) from the same period of the previous year,
despite the recording of foreign exchange losses and share of loss of entities accounted for using equity method.
Profit attributable to owners of parent ended at ¥711 million due to the recording of a gain on sale of investment
securities, despite posting a loss on disaster.
Sales by product are as follows.
[Domestic]
Sales of cultivating & mowing machinery (tractors, high-clearance multipurpose vehicles, etc.) were ¥21,322 million(down 6.0% from the same period of the previous year), and sales of planting machinery (rice transplanters andvegetable transplanters) were ¥7,401 million (down 5.2%). Sales of harvesting and processing machinery (combine
harvesters, etc.) were ¥14,277 million (up 0.5%). Sales of spare parts and farming implements, and repair fees were¥29,674 million (up 6.1%). Sales of other agriculture-related business (construction of facilities, etc.) were ¥19,253
million (down 5.3%).
[Overseas]
Sales of cultivating & mowing machinery (tractors, etc.) were ¥20,279 million (down 0.2% from the same period of
the previous year), and sales of planting machinery (rice transplanters, etc.) were ¥2,847 million (up 64.5%). Sales of
harvesting and processing machinery (combine harvesters, etc.) were ¥308 million (down 3.5%). Sales of spare parts-2-and farming implements were ¥1,592 million (down 12.6%). Sales of other agriculture-related business were ¥1,478
million (up 202.9%).
(2) Explanation Regarding Financial Position
Total assets as of September 30, 2016 increased ¥7,140 million from December 31, 2015 to ¥208,289 million.
Looking at the breakdown, current assets increased ¥12,284 million and non-current assets decreased ¥5,144
million. The changes mainly resulted from a ¥5,678 million increase in cash and deposits, an ¥8,701 million increasein notes and accounts receivable–trade, a ¥1,429 million decrease in other under current assets, a ¥3,370 million
decrease in investment securities, and a ¥1,565 million decrease in other under investments and other assets.
Total liabilities increased ¥9,487 million from December 31, 2015 to ¥142,538 million. The change resulted
mainly from a ¥12,956 million increase in short-term and long-term loans payable, a ¥2,268 million decrease inother under current liabilities, and a ¥2,125 million decrease in other under non-current liabilities.
Net assets decreased ¥2,347 million from December 31, 2015 to ¥65,751 million, mainly due to the recording of a¥2,030 million decrease in valuation difference on available-for-sale securities, a ¥1,170 million decrease in foreign
currency translation adjustment, ¥711 million in profit attributable to owners of parent, and ¥338 million in
dividends of surplus.
(3) Explanation Regarding Forward-looking Statements Including Consolidated Performance Forecast
Consolidated sales for the nine months ended September 30, 2016 increased from the same period of the previous
year, as the drop in domestic revenue was compensated by an increase in overseas revenue. The decrease in grossprofit due to the decline in domestic sales and the appreciation of the yen was offset by a thorough reduction in
expenses, while the impact of the loss on disaster following the Kumamoto Earthquake that occurred in April wascancelled out by recording a gain on sale of investment securities as extraordinary income. As a result, profits
increased from the same period of the previous year.
Going forward, we expect demand for agricultural machinery in Japan to remain at a low level. Through Dream
Agricultural Research Institute, an institute for research, verification and dissemination of advanced agricultural
technology, as well as services at large-scale maintenance facilities in the local regions, we will continue to strive toexpand sales by further strengthening our capabilities to support customers and provide high-quality marketing
services. In overseas markets, we will focus on further expanding the sales of strategic products introduced in North
America, Europe, China and major markets in the ASEAN region. Furthermore, we will strive for further sales
expansion at Dongfeng Iseki Agricultural Machinery Co., Ltd., an affiliate accounted for by the equity method, andother overseas affiliates. In terms of income, we will aim to achieve our profit target through a reduction of expenses
by fully enforcing low-cost operations.
As for the consolidated business performance forecast for the fiscal year ending December 31, 2016, we haverevised our forecast announced on August 10, 2016 downward in light of operating results up to the third quarter andthe deterioration of exchange rates. Please refer to the “Notice of revision of consolidated business performance
forecast for the fiscal year ending December 31, 2016” announced on November 11, 2016 for matters concerning therevision of forecast figures.
The foreign exchange rate assumptions, which are used to determine the business performance forecast, areunchanged from the previous year at ¥105 per U.S. dollar and ¥115 per euro.

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

AssetsCurrent assets
Cash and deposits

8,788

14,467

Notes and accounts receivable-trade

24,89533,596Merchandise and finished goods

40,60040,000Work in process

5,856

6,014

Raw materials and supplies

1,359

1,179

Other

5,327

3,898

(56)

(101)

86,771

99,056

Buildings and structures, net

22,957

23,403

Land

50,65750,654

Other, net

23,29622,658

Total property, plant and equipment

96,911

96,716

1,134

1,078

Investment securities

8,569

5,198

Other

8,062

6,497

Allowance for doubtful accounts

(300)

(257)

Total investments and other assets

16,331

11,438114,377

109,233

201,149

208,289

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

Intangible assets
Investments and other assets

Total non-current assets
Total assets-4-

FY ended
December 31, 2015(as of Dec. 31, 2015)(Millions of yen)
3Q of FY ending
December 31, 2016(as of Sep. 30, 2016)

Liabilities
Current liabilities
Notes and accounts payable-trade29,40029,897

Electronically recorded obligations-operating
Short-term loans payable

10,604
24,38910,31931,932Current portion of long-term loans payable

8,641

8,859

Income taxes payable

438

936

Provision for bonuses

467

779

Provision for loss on disaster

―

289

Other

13,575

11,307

Total current liabilities

87,51894,322

Non-current liabilities
Long-term loans payable

23,70328,899Deferred tax liabilities for land revaluation

6,074

5,790

Provision for directors’ retirement benefits

107

106

Net defined benefit liability
Asset retirement obligations

4,806
304

4,689
320

Other

10,534

8,409

Total non-current liabilities

45,532

48,215

Total liabilities

133,050

142,538

Net assets
Shareholders’ equity
Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

13,514

13,887

Treasury shares

(988)

(989)

49,32549,696

2,509

479

1

(1)

Revaluation reserve for land

12,401

12,686

Foreign currency translation adjustment

1,425

254

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

Remeasurements of defined benefit plans

717

945

17,055

14,36591

91

Non-controlling interests
Total net assets

1,626
68,0991,598
65,751

Total liabilities and net assets

201,149

208,289

Total accumulated other comprehensive income
Subscription rights to shares-5-(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Nine Months Ended September 30, 2016
(Millions of yen)
3Q of FY ending December 31, 2016
(Jan. 1, 2016–Sep. 30, 2016)
Net sales

118,437

Cost of sales

83,846Gross profit

34,590

Selling, general and administrative expenses

31,825

Operating income

2,765

Non-operating income
Interest income

106

Dividend income

149

Other

707

Total non-operating income

963

Non-operating expenses
Interest expenses

458

Foreign exchange losses

569

Share of loss of entities accounted for using equity method

631

Other

457

Total non-operating expenses

2,118

Ordinary income

1,610

Extraordinary income
Gain on sales of non-current assets

36

Gain on sales of investment securities

1,113

Total extraordinary income

1,150

Extraordinary losses
Loss on sales and retirement of non-current assets

94

Impairment loss

47

Loss on disaster

1,120

Total extraordinary losses

1,263

Income before income taxes

1,497

Income taxes-current

1,271

Income taxes-deferred(470)

Total income taxes

801

Profit696

Loss attributable to non-controlling interests(14)

Profit attributable to owners of parent

711

-6-

Consolidated Statements of Comprehensive Income
For the Nine Months Ended September 30, 2016
(Millions of yen)
3Q of FY ending December 31, 2016
(Jan. 1, 2016–Sep. 30, 2016)
Profit696

Other comprehensive income
Valuation difference on available-for-sale securities(2,029)Deferred gains or losses on hedges(2)

Revaluation reserve for land284

Foreign currency translation adjustment(440)

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

228

Total other comprehensive income(740)(2,699)Comprehensive income(2,003)(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-(1,978)(24)

(3) Notes Regarding the Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable(Notes Regarding Significant Changes in Shareholders’ Equity)
Not applicable-8-