May 11, 2012
Stock Exchange Listing Tokyo

Name of Listed Company ISEKI & CO., LTD.
6310
Company Code:(URL http://www.iseki.co.jp)
Representative: Title President
Enquiries:
Title General Manager ofCorporate Planning Depertment
Date of the Regular Meeting of Shareholders:
Scheduled Date to Commence Dividend Payment
Date of Submission of the Securities Report:
Supplementary Explanatory Material:
Information Meeting:Name Seiichiro Gamo
Name Shunichi Suzuki
Telephone: +81 3 5604 7709
June 26, 2012
June 27, 2012
June 27, 2012
Prepared
Scheduled (for institutional investors
and analysts)

Summary Announcement of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2012 (Japanese GAAP)
I. Financial Results for the Fiscal Year Ended March 31, 2012 (April 1, 2011－March 31, 2012)
A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Year Ended

Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per ShareNon-diluted
Fully Diluted

Year Ended

March 31, 2012%

145,252
4,231
3,898
2,727

(1.7)
50.9
94.3
-

March 31, 2011
147,826
2,803
2,006
(918)

%
(1.0)
(37.9)(45.2)
-

(yen)
11.87
-

(4.00)-

Return on Equity

(%)

5.0

(1.7)

Return on Total Assets

(%)

2.3

1.2

Operating Income to Net Sales (%)

2.9

1.9

Note: Comprehensive income
Year ended March 31, 2012 ¥3,577 mil. (- %) Year ended March 31, 2011¥(979) mil. (- %)Reference: Investment gain (loss) by equity method
Year ended March 31, 2012 ¥(0) mil.

Year ended March 31, 2011

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

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio (%)
Net Assets per Share(yen)

March 31, 2012

March 31, 2011

172,554
58,18932.9246.77

169,168
54,61731.4
231.13-Reference: Shareholders’ equity
Year ended March 31, 2012 ¥56,698 mil.

Year ended March 31, 2011 ¥53,108 mil.

C. Cash Flows(Rounded down to millions of yen)

Year EndedYear Ended

March 31, 2012

March 31, 2011

Net Cash Provided by (used in) Operating Activities

8,580

7,060

Net Cash Provided by (used in) Investment Activities(5,234)(5,674)

Net Cash Provided by (used in) Financing Activities(2,141)(2,515)

Cash and Cash Equivalents at End of Period

6,952

5,585

Year EndedYear EndedYear Ending

March 31, 2011

March 31, 2012

March 31, 2013

II. Dividends

Forecast
Dividend per share (yen)End of fiscal year

0.00

1.50

2.00 - 3.00

Annual0.00

1.50

2.00 - 3.00

Annual cash dividend (million yen)-

344

Payout ratio (%, consolidated)
Ratio of dividend to net assets(%, consolidated)

-

12.6

-

0.6

-

III. Forecast for the Fiscal Year Ending March 31, 2013 (April 1, 2012－March 31, 2013)(Rounded down to millions of yen, % indicates changes from the previous same period)

Net Sales

Operating

OrdinaryNet

Net Income per%

Income%Income%Income%Share (yen)Interim80,000

10.5

2,800

6.2

2,600

6.7

1,800

(0.5)

7.83

Annual

153,000

5.3

4,600

8.7

3,900

0.0

2,700

(1.0)

11.75

* Notes
A Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None
B Change in accounting policy, change of estimation in accounting and modified restatement
1) Change in accounting policy which accompanies revision of accounting standards: None
2) Change in accounting policy other than No.1):
None3) Change of estimation in accounting:None4) Modified restatement:
NoneC Outstanding shares (common shares)
1) Outstanding shares (including treasury shares )As of March 31, 2012
229,849,936 shares
As of March 31, 2011229,849,936 shares
2) Outstanding treasury shares
As of March 31, 2012
89,379 shares
As of March 31, 2011
73,082 shares
3) Average number of shares
As of March 31, 2012
229,768,906 shares
As of March 31, 2011229,791,896 shares
Note: Please refer to page 29 “Per Share Information” as to the number of shares which provides a base forcalculating net income per share (consolidated).

(Reference) Non-consolidated Financial Results
Financial Results for the Fiscal Year Ended March 31, 2012 (April 1, 2011－March 31, 2012)
A. Results of operations(Rounded down to millions of yen, % indicates changes from previous period)
Year EndedYear Ended
March 31, 2012%
March 31, 2011%
Net Sales

87,341(3.6)

90,560(0.3)

Operating Income

438

172.0

161

(86.6)

Ordinary Income

2,034

75.1

1,161

(23.7)Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted

1,848

-

(430)

-

8.05
-

(1.88)-

B. Financial Position(Rounded down to millions of yen)March 31, 2012

March 31, 2011

Total Assets

121,567

120,661

Net Assets

52,73250,030Shareholders’ Equity to Total Assets Ratio

(%)

43.4

41.5

Net Assets per Share(yen)

229.51217.74

Reference: Shareholders’ Equity
Year ended March 31, 2012 ¥52,732 mil.

Year ended March 31, 2011 ¥50,030 mil.

*Statement regarding state of implementation of review procedure: This summary of financial results is exempt fromaudit procedures pursuant to the Financial Instruments and Exchange Act. At the time of disclosure, audit
procedures for consolidated financial statements and non-consolidated financial statements pursuant to the
Financial Instruments and Exchange Act had not been completed.
*Cautionary statement: 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 “Analysis ofManagement Performance” on page 2 of the supplementary material for the assumptions underlying theforecasts and precautions when using the forecasts.

c Table of contents for supplementary material
1. Management Performance......................................................................................................................2(1) Analysis of Management Performance .............................................................................................2(2) Analysis of Financial Position ..........................................................................................................4(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2012 and 2013..........................5(4) Risks Which Could Affect Our Business ..........................................................................................5
2. The ISEKI Group ...................................................................................................................................7
3. ISEKI’s Management Policies................................................................................................................8(1) ISEKI’s Basic Management Principles .............................................................................................8(2) Long-term Management Strategies and Issues to be Addressed .......................................................8
4. Consolidated Financial Statements.......................................................................................................10(1) Consolidated Balance Sheets ..........................................................................................................10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .....12(3) Consolidated Statements of Changes in Net Assets........................................................................15(4) Consolidated Statements of Cash Flows.........................................................................................18(5) Notes Regarding the Going Concern Assumption ..........................................................................20(6) Important Basic Items for Preparing Consolidated Financial Statements.......................................20(7) Changes to Presentation..................................................................................................................23(8) Additional Information....................................................................................................................23(9) Notes to the Consolidated Financial Statements.............................................................................24(Consolidated Balance Sheets Information) .....................................................................................24(Consolidated Statements of Income Information)...........................................................................25(Consolidated Statements of Changes in Net Assets Information) ...................................................26(Consolidated Statements of Cash Flows Information) ....................................................................26(Segment Information)......................................................................................................................27(Per Share Information) ....................................................................................................................29(Significant Subsequent Events).......................................................................................................29
5. Non-consolidated Financial Statements ...............................................................................................30(1) Non-consolidated Balance Sheets...................................................................................................30(2) Non-consolidated Statements of Income ........................................................................................33(3) Non-consolidated Statements of Changes in Net Assets.................................................................35(4) Notes Regarding the Going Concern Assumption ..........................................................................38
6. Others ...................................................................................................................................................38(1) Production, Orders & Sales.............................................................................................................38(2) Change of Directors ........................................................................................................................40-1-

1. Management Performance(1) Analysis of Management Performance
During the fiscal year under review, Japan’s economy remained sluggish in the first half due to stagnant economic
activities, resulting mainly from the Great East Japan Earthquake, and a shortage of electricity in the wake of thenuclear power plant accident, coupled with worsening of the profitability of export industries caused by thecontinued appreciation of the yen in and after the summer. In the second half of the fiscal year, there were signs ofrecovery, primarily thanks to restoration demand and recovery production. Then, however, the pace of the global
economic growth slowed due to the flooding in Thailand and financial problems in European nations and otherfactors.
Under such circumstances, the ISEKI Group adopted the slogan “Cheering Squad Supporting the Dream ofAgriculture! ISEKI,” and developed aggressive marketing activities by extending the range of its new products in
response to diversifying customer needs.

(Consolidated business performance of the year under review)
In the fiscal year ended March 31, 2012, net sales decreased ¥2,574 million from a year earlier to ¥145,252 million(down 1.7% year on year). Domestic sales decreased ¥4,844 million from a year earlier to ¥123,859 million (down
3.8% year on year), and overseas sales increased ¥2,270 million to ¥21,393 million (up 11.9% year on year).
Operating income increased ¥1,427 million from a year earlier to ¥4,231 million (up 50.9% year on year). This ismainly because reduction of expenses and other covered a decline in profit, following a decrease in revenue, theeffects of the yen’s appreciation and an increase in price of raw materials. Ordinary income increased ¥1,892 million
from a year earlier to ¥3,898 million (up 94.3% year on year). Net income increased ¥3,646 million from a year
earlier to ¥2,727 million.

(Non-consolidated business performance of the year under review)
In the fiscal year under review, net sales totaled ¥87,341 million (down 3.6% year on year), operating income was¥438 million (up 172.0% year on year), and ordinary income amounted to ¥2,034 million (up 75.1% year on year).
The Company recorded a net income of ¥1,848 million.

Business performance by segment is as follows.

1) Agriculture-related business
Sales in the agriculture-related business in Japan declined due to a decrease in the construction of facilities, thoughsales of agricultural machinery, which remained weak in the first half of the fiscal year, affected by the Great East
Japan Earthquake, but recovered in the second half, remained almost unchanged from the previous year. Overseas,
overall sales increased due to the brisk sales of rice transplanters in China and an increase in sales for European
countries, which were large enough to offset decreases in sales for North America and Asia, excluding China.

Sales by product are as follows.

-2-

(Domestic)
Sales of cultivating & mowing machinery (tractors, high-clearance multipurpose vehicles, etc.) amounted to ¥27,434
million (up 2.8% year on year), and sales of planting machinery (rice transplanters and vegetable transplanters)
totaled ¥10,385 million (down 10.2% year on year). Sales of harvesting and processing machinery (combine
harvesters, etc.) were ¥25,928 million (up 1.7% year on year). Moreover, sales of spare parts and farming
implements reached ¥30,465 million (down 1.7% year on year), while sales of other agriculture-related business(including construction of facilities, etc.) declined to ¥29,518 million (down 12.7% year on year).

(Overseas)
Sales of cultivating & mowing machinery (tractors, etc.) increased to ¥13,116 million (up 0.2% year on year), andsales of planting machinery (rice transplanters, etc.) amounted to ¥5,162 million (up 104.7% year on year). Sales of
harvesting and processing machinery (combine harvesters, etc.) declined to ¥1,187 million (down 25.4% year onyear). Sales of spare parts and farming implements totaled ¥1,025 million (down 6.5% year on year), while sales ofother agriculture-related business were ¥900 million (up 9.9% year on year).

As a result, sales in the agriculture-related business segment totaled ¥145,125 million.

2) Other business
The Company develops, sells, and operates computer software in the “other business” segment. Sales in the otherbusiness segment amounted to ¥127 million.

Forecast for the Next Consolidated Fiscal Year
We consider the real economy in Japan to be very weak, due mainly to the continuously strong yen and low stock
prices, the issue of power supply and concern over the employment situation as restoration from the earthquake
progresses. Also, with a delay in the recovery of the U.S. economy, financial uncertainty in European countries andthe aggravation of the situation in the Middle East, the management environment still remains harsh and uncertain.
On the other hand, we expect the agricultural sector to become more active as the full-scale implementation of theindividual (household) income support system for agriculture, aiming at improving food self-sufficiency, has cometo stay, and initiatives for pushing forward with the development of the rural community for agriculture, forestry andfisheries as a “sixth industry” are advancing. Such initiatives include: the integration of production by agriculture,
forestry and fisheries with processing and sales; and the creation of new industries by making the most of regional
resources.
Under such conditions, we anticipate agricultural machinery demand in Japan for the fiscal year ending March 31,
2013 to remain unchanged from the previous year. Living up to the Group’s slogan “Cheering Squad Supporting theDream of Agriculture! ISEKI,” we will strive to expand our market share by developing aggressive marketing
activities with energy conservation and low-cost agricultural machinery. We also expect sales recovery in theconstruction of facility business.
Overseas, we expect sales to increase by firmly establishing the ISEKI brand in China.
In terms of profitability, we expect profits to be at the level of the previous year due to increases in administrativeand other expenses, although increased sales will boost profits.
-3-

(2) Analysis of Financial Position
Total assets at the end of the fiscal year increased ¥3,385 million year on year, to ¥172,554 million. Looking at the
breakdown, current assets increased ¥4,174 million year on year. The main change was from a ¥1,356 million
increase in cash and deposits and a ¥1,877 million increase in inventories. Noncurrent assets decreased ¥789 million
from a year earlier. The main change was from a ¥771 million decrease in investments and other assets. Total
liabilities decreased ¥186 million year on year, primarily due to an increase in notes and accounts payable-trade of¥1,717 million and a decline in interest-bearing liabilities of ¥1,371 million. Net assets increased ¥3,572 million year
on year, to ¥58,189 million, due to a net income posted, etc. The equity ratio was 32.9%.

(Net cash provided by (used in) operating activities)

Net cash provided by (used in) operating activities provided a net cash inflow of ¥8,580 million (up ¥1,519
million year on year), comprised principally of income before income taxes of ¥3,715 million and depreciation andamortization of ¥5,933 million.

(Net cash provided by (used in) investment activities)
Net cash provided by (used in) investment activities resulted in a net cash outflow of ¥5,234 million (down ¥440
million year on year), comprised principally of capital investment expenditures of ¥5,324 million and proceeds fromsales of investment securities of ¥395 million.

(Net cash provided by (used in) financing activities)
Net cash provided by (used in) financing activities amounted to a net cash outflow of ¥2,141 million (down ¥374
million year on year), due primarily to the repayment of interest-bearing liabilities.

Reference: The trend of cash flow indicators is as follows.
Indicator

Mar. 31,Mar. 31,Mar. 31,Mar. 31,

2009

2010

2011

2012

Equity ratio

(%)

29.4

31.6

31.4

32.9

Market-based equity ratio

(%)

31.4

37.2

25.9

28.1

Cash flow/Interest-bearing liabilities ratio(times)

5.7

6.3

6.2

4.9

Interest coverage ratio(times)

7.6

7.1

7.9

10.7

• Equity 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/ Operating cash flow
• Interest coverage ratio: Operating cash flow / Interest payments
Notes: 1. All figures have been calculated using consolidated-based financial figures.
2. The total market price of shares is the product of the per-share closing price at the end of the period
and the total number of shares outstanding (less treasury stocks) at the end of the period.
3. The Operating cash flow uses the Net Cash Provided by (Used in) Operating Activities as per theConsolidated Statements of Cash Flows. Interest-bearing liabilities use all the loans payable andbonds as recorded in the Consolidated Balance Sheets. The Interest payments use the interest paid
as recorded in the Consolidated Statements of Cash Flows.

-4-(3) Basic Policy on Profit Distribution and Dividends for Fiscal Year 2012 and 2013
We recognize that the method for determining dividends to be paid to shareholders is one of the most important
policies to be made. Our basic policy is to keep steady and improved dividend distribution, taking into consideration,
not just consolidated financial results, but our Group’s financial position and future business developments as well aschanges in our managerial environment.
With respect to dividends for the fiscal year ended March 31, 2012, we will pay year-end dividends of 1.50 yen
per share, as we publicly announced in the “Notice on revision of the dividend forecast for the fiscal year ending
March 31, 2012” on March 15, 2012.
For the fiscal year ending March 31, 2013, we will pay year-end dividends of 2 yen to 3 yen per share inaccordance with the forecast for business results.

(4) 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
and take proper measures should they occur:
1) Economic Conditions and Changes in the Environment of Agriculture
Sluggishness of domestic and/or overseas economic conditions and any change in the agriculture policy may
negatively affect our financial performance through reduced demand for agricultural machinery.
2) Exchange Rate Fluctuation
There is a possibility that fluctuation of foreign exchange may negatively affect 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 negatively affect our business performance.
In addition, a fall in production activities due to damage caused by the Great East Japan Earthquake, including
restrictions on electricity supplies, and disruptions in the supply chain resulting from the flooding in Thailand
may harm the ISEKI Group’s business performance and financial position.
4) Dependency on Specific Customers or Suppliers
Any change of business policy, business depression and failure 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 negatively affect our financial performance.
7) Stock Market Fluctuation
As we hold securities, stock price declines may harm our business performance and financial position.
8) Government Regulation on Environmental Issues, etc., and Occurrence of Related Difficulties
Substantial costs may be incurred related to our products or business activities due to necessitated responses
to public regulation of environmental issues etc., corrective measures undertaken upon the occurrence oftroubles, lawsuits and other situations which could lead to a deterioration of our financial performance.
9) Risks Derived from International Business
Unexpected changes in tax and legal systems or political unrest of any particular country may cause harm to
our financial performance.
10) Risk of Legal Violation
We are making group-wide efforts to accomplish complete legal compliance and drive home the code of
ethical behavior 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 inany way that violates laws and regulations, there is a possibility that the business activities of the Group will-5-

be restrained and the business performance will be deteriorated.
11) Risk of Natural Disasters and Accidents
Natural disasters such as earthquakes, typhoons, flood or unexpected accidents may occur, which may harm
our financial performance.
12) Business Alliances, Joint Ventures and Strategic Investment with Other Companies
We will possibly form business alliances and joint ventures and carry out strategic investment with othercompanies as necessary. 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, there is a possibility that the expected results and/or
effects will not be obtained in the integration of business, technologies, products and human resources, or that
more time and expenses than expected will be required. Accordingly, the success or failure of these measures
may seriously affect the ISEKI Group’s business and may harm our business performance and financial
position.
13) Debt
We have concluded syndicate 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 negatively affect the financial position of the ISEKI Group.
There is a possibility that a hike in 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 of latent risks anduncertainties that could affect future financial performance. Actual results could differ considerably depending on
economic conditions, market trends, and future conditions for business operations hereafter.

-6-

2. The ISEKI GroupThe main business of the ISEKI Group is the development, manufacture and sale of agricultural machinery for riceand vegetable farming, among other related areas.
Position of the business in the ISEKI Group is stated in follows.
(Agriculture-related Business)
The Company primarily handles the development and design of agricultural machinery.
Seven companies, including Iseki-Matsuyama Mfg. Co., Ltd. and Iseki-Kumamoto Mfg. Co., Ltd., handle ouragricultural machinery manufacturing and component processing activities, and 13 domestic sales companies market
and sell the machinery across the country. Overseas marketing operations are handled by local distributors andaffiliates as well as Iseki–Changzhou Mfg. Co., Ltd and Dongfeng Iseki Agricultural Machinery (Hubei) Co., Ltd.
(Other Business)
System Equipment Co., Ltd. is mainly engaged in development of computer software.
Following is a schematic diagram of the ISEKI Group.

Overseas Users &Customers

Domestic Users & Customers

Sales

Subsidiary
N.V. ISEKI EUROPE S.A.
(Belgium)B u s i n e s s )SalesConsolidated Subsidiaries:
Iseki-Hokkaido Co., Ltd.
Iseki-Tohoku Co., Ltd.
and 11 other companies
Transport & Service

Products& Parts

Sales

Consolidated Subsidiary:(Other Business)
Development of computer software, etc.

( A g r i c u l t u r e - r e l a t e dIseki BUTSURYU Co., Ltd. and 1 other company

Products& Parts

Transport & Service
Consolidated Subsidiaries：

ISEKI
Parts

Products & Parts

Consolidated Subsidiary：

Consolidated Subsidiaries:

Iseki - Changzhou Mfg. Co., Ltd.

Iseki-Matsuyama Mfg. Co., Ltd.

(China)Iseki-Kumamoto Mfg. Co., Ltd.

Equity Method Affiliate:and 5 other companies

Dongfeng Iseki Agricultural Machinery(Hubei) Co., Ltd. (China)-7-

System Equipment Co., Ltd.

3. ISEKI’s Management Policies(1) ISEKI’s Basic Management Principles
Since it was established over 80 years ago, ISEKI Group has been contributing to the modernization of Japan’s
agricultural industry as a full-line manufacturer specializing in agricultural machinery. Over this time, we haveconsistently pursued efficient and labor-saving advances in agriculture, and have served the market by pioneering thedevelopment of a quantity great deal of agricultural machinery and facilities.
When we consider the questions of an increasing world population and food supply, and then our own nation’s
food self-sufficiency and land preservation, our role to serve the farming sector becomes important and our duty tosociety as a manufacturer of agricultural machinery becomes even more significant.
ISEKI Group will continue to operate under a basic business philosophy of “providing products that delight ourconsumers” so that the Group can contribute to agriculture, both in Japan and throughout the world.
To reach this goal, our highest priority objectives are “to enhance product capability, to improve quality, toaccelerate cost-cutting measures and to strengthen our sales service capabilities.” We are aiming for a corporate
culture that can maintain a stable operating performance and will continue in our efforts to reform our profit
structure.

(2) Long-term Management Strategies and Issues to be Addressed
To realize future development in a rapidly changing business environment, we will accelerate to focus on thefollowing challenges with all strength of the ISEKI Group.

1) Enhancing initiatives to propose low-cost agricultureWith competition in the market getting keener, we will continue to raise customer satisfaction levels by providing
high-quality and low-cost products and services that support energy conservation and low-cost agriculture from theviewpoint of customers.
We will launch “new products that support low-cost agriculture,” including products that help reduce materials
expenses, products incorporating low-priced agricultural technologies and products designed to save labor, by
precisely grasping the needs of the market and planning products in a timely manner.
We will strive to expand domestic sales by further improving customer satisfaction in the domestic market throughefficient sales promotion and strengthening of sales service capabilities, leveraging the fortes of flexible wide-areasales companies.
Also, we will continue to support areas affected by the Great East Japan Earthquake toward a full recovery.

2) To strengthen promotion of global development
We position Europe, North America and Asia as the three major overseas markets.
With regard to North America, Europe and other markets, we will further expand the markets by launching “newstrategic products” that satisfy customer needs.
In addition, we will proactively expand our business in the Chinese market, where the mechanization ofagriculture is rapidly advancing, with Iseki–Changzhou Mfg. Co., Ltd. and Dongfeng Iseki Agricultural Machinery(Hubei) Co., Ltd. as the core bases, and endeavor to expand sales and establish the ISEKI brand in the Southeast-8-

Asian market, which is expected to grow in the future, by developing products that match the market.
To meet diversifying market needs, we will enhance our development, production, sales and service structures todevelop business from a locally-oriented standpoint.
Also, we will proceed with the localization of development, the expansion of overseas production and theappointment of local employees as executives, while striving to ensure the necessary human resources by carrying
out human exchanges, language training and other education programs.

3) To enhance product capability and promote cost structure reform
Our first priority lies with products that garner a high reputation among our customers, as we are improving ourdevelopment process in the pursuit of zero defects. Our development and manufacturing operations are working
together to improve the production process and establish a framework that guarantees product quality.
As needs for low-priced products are growing both in domestic and overseas, the Company established the Cost
Structure Reform Committee to make company-wide efforts for cost structure reform as of April 1.
We will strongly drive ahead with “cost structure reform,” comprised of “low-cost design,” “low-cost production”
and “low-cost procurement,” with the Cost Structure Reform Dept., general manager of each engineering department,
the president of each manufacturing company and general manager of the Purchasing Dept. serving as structurereform leaders.

-9-4. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)
FY2011(as of Mar. 31, 2011)

FY2012(as of Mar. 31, 2012)

Cash and deposits

5,696

7,052

Notes and accounts receivable-trade

28,68828,703

Short-term investment securities

19

19

Merchandise and finished goods

37,21638,168Work in process

2,569

3,295

Raw materials and supplies

1,180

1,380

632

1,021

Others

2,720

3,243

Allowance for doubtful accounts

(60)

(45)

78,66582,840

Buildings and structures, net

14,90914,965

Machinery, equipment and vehicles, net

7,291

6,983

Tools, furniture and fixtures, net

2,113

1,601

Land

50,17350,263

Lease assets, net

4,863

4,970

Construction in progress

521

1,042

Other, net

181479,89079,840

948

981

5,186

5,159

Long-term loans receivable

180

151

Deferred tax assets

781

706

Other

3,951

3,278

Allowance for doubtful accounts

(436)

(403)

Total investments and other assets

9,663

8,892

90,50389,714

169,168

172,554

AssetsCurrent Assets:

Deferred tax assets

Total Current Assets
Noncurrent Assets:
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

Total Noncurrent Assets
Total Assets- 10 -

FY2011(as of Mar. 31, 2011)(millions of yen)
FY2012(as of Mar. 31, 2012)

Notes and accounts payable-trade
Short-term loans payable

41,95017,883

43,667
17,174Current portion of long-term loans payable

11,2208,147

Lease obligations

1,603

1,672

Accrued consumption taxes

516

390

Income taxes payable

463

803

Deferred tax liabilities
Accrued expenses

4
3,332

4,004

Provision for bonuses

821

236

Liabilities
Current Liabilities:

Provision for loss on disaster

174

-

Other

3,319

3,659

Total Current Liabilities

81,29079,756

Noncurrent Liabilities:
Bonds payable

100

100

Long-term loans payable

14,277

16,653

Lease obligations

3,771

3,736

397

252

Deferred tax liabilities for land revaluation

7,593

6,644

Provision for retirement benefits
Provision for directors' retirement benefits

5,225
134

5,485
116

294

257

2

-

Deferred tax liabilities

Asset retirement obligations
Negative goodwill
Other

1,465

1,361

Total Noncurrent Liabilities

33,261

34,608

Total Liabilities
Net Assets
Shareholders’ equity

114,551

114,364

Capital stock

23,344

23,344

Capital surplus

13,454

13,454Retained earnings

5,160

7,887

Treasury stock
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
Total accumulated other comprehensive income
Minority interests
Total Net Assets
Total Liabilities and Net Assets- 11 -(19)(22)

41,93944,664

366

265

-

3

10,867

11,816(65)(51)

11,16912,034

1,508

1,490

54,61758,189169,168

172,554

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(millions of yen)
FY2011(Apr. 1, 2010Mar. 31, 2011)

FY2012(Apr. 1, 2011Mar. 31, 2012)

Net sales

147,826

145,252

Cost of sales

101,639

98,839Gross profit

46,187

46,412

Selling, general and administrative expenses

43,38342,181

Operating income

2,803

4,231

Interest income

206

192

Dividends income

102

175

9

4

Subsidies received

107

68

Rent income

147

146

Sales of scrap

145

143

Other

413

464

1,133

1,194

Interest expenses

891

796

Sales discounts

115

104

Foreign exchange losses

329

1

Loss on abandonment of inventories

296

301

Other

296

323

1,930

1,527

2,006

3,898

Gain on sales of noncurrent assets

67

36

Gain on sale of investment securities

1

256

Other

-

0

Total extraordinary income

68

293

Loss on sales and retirement of noncurrent assets

201

138

Impairment loss

62

29

Loss on valuation of investment securities

602

6

Loss on valuation of golf club membership3-

asset retirement obligations

218-

Loss on disaster

760

12

Non-operating income

Amortization of negative goodwill

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Loss on adjustment for changes of accounting standard for- 12 -

FY2012(Apr. 1, 2011Mar. 31, 2012)

FY2011(Apr. 1, 2010Mar. 31, 2011)Retirement benefit expenses-

252

Cost of measures for product recall

23

37

Other

0

0

Total extraordinary losses

1,872

477

Income before income taxes

202

3,715

Income taxes-current

825

1,100

Income taxes for prior periods

55

257

Income taxes-deferred

233

(359)

Total income taxes

1,115

998

Income (loss) before minority interests

(912)

2,716

6

(11)

(918)

2,727

Minority interests in income (loss)
Net income (loss)- 13 -

Consolidated Statements of Comprehensive Income(millions of yen)
FY2011(Apr. 1, 2010Mar. 31, 2011)
Income (loss) before minority interests

FY2012(Apr. 1, 2011Mar. 31, 2012)

(912)

2,716

(9)

(105)

Deferred gains or losses on hedges-

3

Revaluation reserve for land

-

949

(57)

7

-

6

(66)

860

(979)

3,577

Comprehensive income attributable to owners of the parent

(994)

3,593

Comprehensive income attributable to minority interests

15

(15)

Other comprehensive income
Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)- 14 -

(3) Consolidated Statements of Changes in Net Assets(millions of yen)
FY2011(Apr. 1, 2010Mar. 31, 2011)

FY2012(Apr. 1, 2011Mar. 31, 2012)

Shareholders’ Equity
Capital Stock
Balance at the beginning of period

23,344

23,344--

23,344

23,344

13,454

13,454--

13,454

13,454

6,076

5,160

(918)

2,727

Reversal of revaluation reserve for land2-

Total changes of items during the period

(916)

2,727

5,160

7,887

(13)

(19)

Purchase of treasury stock

(6)

(3)

Total changes of items during the period

(6)

(3)

(19)

(22)

42,862

41,939

(918)

2,727

Purchase of treasury stock

(6)

(3)

Reversal of revaluation reserve for land2-

Total changes of items during the period

(922)

2,724

41,93944,664

Changes of items during the period
Total changes of items during the period
Balance at the end of period
Capital Surplus
Balance at the beginning of period
Changes of items during the period
Total changes of items during the period
Balance at the end of period
Retained Earnings
Balance at the beginning of period
Changes of items during the period
Net income (loss)

Balance at the end of period
Treasury Stock
Balance at the beginning of period
Changes in items during the period

Balance at the end of period
Total Shareholders’ Equity
Balance at the beginning of period
Changes of items during the period
Net income (loss)

Balance at the end of period

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-sale Securities- 15 -

FY2011(Apr. 1, 2010Mar. 31, 2011)
Balance at the beginning of period

FY2012(Apr. 1, 2011Mar. 31, 2012)

385

366

Net changes in items other than shareholders' equity

(18)

(101)

Total changes of items during the period

(18)

(101)

366

265

-

-

Net changes in items other than shareholders' equity-

3

Total changes of items during the period

-

3

-

3

10,86910,867

Net changes in items other than shareholders' Equity

(2)

949

Total changes of items during the period

(2)

949

10,867

11,816(7)(65)

Net changes in items other than shareholders' Equity

(57)

13

Total changes of items during the period

(57)

13

(65)

(51)

11,247

11,169Net changes in items other than shareholders' equity

(78)

865

Total changes of items during the period

(78)

865

11,16912,034

1,494

1,508

Net changes in items other than shareholders' equity

13

(17)

Total changes of items during the period

13

(17)

1,508

1,490

55,60454,617

Changes of items during the period

Balance at the end of period
Deferred gains or losses on hedges
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Revaluation Reserve for Land
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Foreign Currency Translation Adjustment
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Total Accumulated Other Comprehensive Income
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Minority Interests
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Total Net Assets
Balance at the beginning of period- 16 -

FY2011(Apr. 1, 2010Mar. 31, 2011)

FY2012(Apr. 1, 2011Mar. 31, 2012)

Changes in items during the period
Net income (loss)

(918)

2,727

Purchase of treasury stock

(6)

(3)

Reversal of revaluation reserve for land2-

Net changes in items other than shareholders' equity

(64)

847

Total changes of items during the period

(987)

3,572

54,61758,189Balance at the end of period- 17 -

(4) Consolidated Statements of Cash Flows(millions of yen)
FY2011(Apr. 1, 2010Mar. 31, 2011)

FY2012(Apr. 1, 2011Mar. 31, 2012)

Net Cash Provided by (Used in) Operating Activities:
Income before income taxes

202

3,715

Depreciation and amortization

5,666

5,933

Impairment loss

62

29

Amortization of negative goodwill

(9)

(4)

Increase (decrease) in provision for retirement benefits

140

260

Increase (decrease) in provision for loss on disaster

174

(174)

Loss (gain) on sales of investment securities

(0)

(255)

Loss on evaluation of golf club memberships

3-

Interest and dividend income

(309)

(367)

Interest expenses

891

796

Foreign exchange losses (gains)

(169)

(154)

intangible assets

133

102

Decrease (increase) in notes and accounts receivable-trade

631

(14)

Decrease (increase) in inventories

503(1,878)

Increase (decrease) in notes and accounts payable-trade

176

1,717

asset retirement obligations

218

-

Other

611

375

Subtotal

8,928

10,080Interest and dividends income received

309

368

Interest expenses paid

(891)

(804)

(1,404)(1,328)

118

265

7,060

8,580

Purchase of short-term investment securities

(19)

(19)

Proceeds from sales of short-term securities

19

19(5,364)(5,324)

intangible assets

279

199

Purchase of investment securities

(529)

(325)

Proceeds from sales of investment securities

11

395

Decrease (increase) in loans receivable

2

26

Loss (gain) on sales of property, plant and equipment andLoss on adjustment for changes of accounting standard forIncome taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net Cash Provided by (Used in) Investment Activities:

Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment and- 18 -

FY2012(Apr. 1, 2011Mar. 31, 2012)

FY2011(Apr. 1, 2010Mar. 31, 2011)
Decrease (increase) in time deposits

(20)

10

affiliates

-

(239)

Other

(54)

24

(5,674)(5,234)

Increase (decrease) in short-term loans payable, net

2,063

(709)

Proceeds from long-term loans payable

10,135

11,870

Repayment of long-term loans payable(13,972)(12,567)

100-

Redemption of bonds(1,060)-

Proceeds from sell and leaseback transactions

1,491

997

Repayments of lease obligations(1,255)(1,718)Purchase of treasury stock

(6)

(3)

Other

(11)

(11)

(2,515)(2,141)

100

162

Net Increase (Decrease) in Cash and Cash Equivalents(1,028)

1,367

Cash and Cash Equivalents at Beginning of Period

6,614

5,585

Cash and Cash Equivalents at End of Period

5,585

6,952

Payments for investments in capital of subsidiaries andNet cash provided by (used in) investment activities
Net Cash Provided by (Used in) Financing Activities:

Proceeds from issuance of bonds

Net cash provided by (used in) financing activities
Effect of Exchange rate Change on Cash and Cash
Equivalents- 19 -

(5) Notes Regarding the Going Concern Assumption
Not applicable(6) Important Basic Items for Preparing Consolidated Financial Statements
1) Scope of consolidation
Number of consolidated subsidiaries……….24 companies(including Iseki-Matsuyama Mfg. Co., Ltd., Iseki-Kumamoto Mfg. Co., Ltd., Iseki-Hokkaido Co., Ltd. andIseki-Tohoku Co., Ltd.)

2) Scope of the equity method companies
Number of affiliates……….1 company (Dongfeng Iseki Agricultural Machinery (Hubei) Co., Ltd.)
Effective the consolidated accounting period, the affiliated company is accounted for by the equity method as aresult of investment made in the company.

3) Consolidated accounting period
Of the consolidated subsidiaries, 14 companies (including Iseki-Hokkaido Co., Ltd.) use an end-of-periodbalance sheet date of December 31. 10 companies (including Iseki-Matsuyama Mfg. Co., Ltd.) use a balance
sheet date of March 31. With regard to the preparation of the consolidated financial statements, the financial
statements as of the balance sheet dates of respective companies are used. And 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 priceat the closing date of the consolidated reporting period.
(Any estimate variance is credited or debited toShareholders’ 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 been adjusted downward accordingly)(c) Derivatives........................................................ recorded using the market value method(2) Depreciation methods for material depreciable assets(a) Property, plant and equipment (excluding lease assets)
The straight-line method is used to depreciate tools. For others, the declining-balance method is used.
However, for new buildings (not including buildings and accompanying facilities) acquired on or after
April 1, 1998, the straight-line method is used.
- 20 -

(b) Intangible assets (excluding lease assets)
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, while software for marketing isdepreciated using the straight-line method over an expected marketable period of three years.
(c) Lease assets
Lease assets derived from finance leases other than those leases which transfer the ownership of theassets to the lessee are amortized using straight-line method with no residual value over the lease
period, which is deemed the useful life.
Among finance leases that do not involve transfer of ownership to lessee, leases that began before
April 1, 2008 are accounted for as normal operating leases.

(3) Allowances and reserves(a) Allowance for doubtful accounts
A likely unrecoverable amount is calculated by applying the historical bad debt ratio to common
receivables. For specific receivables, such as doubtful debt receivables, allowances are made byindividually 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
estimated future payments.
(c) Provision for loss due to disaster
The Company allotted the reserve for loss due to disaster for the restoration of assets damaged by theGreat East Japan Earthquake, based on estimates as at the end of the consolidated accounting period.
(d) Provision for retirement benefits
Provision for retirement benefits is recorded as at the end of the consolidated accounting period, and isprincipally based on the amounts for the obligation for employees' retirement benefits and pension plan
assets. Disparities arising out of changes to accounting standards are expensed pro rata over 15 years.
Past service liabilities are amortized using the straight-line method over the average of the estimatedremaining years of service. Actuarial differences are amortized using the straight-line method over the
average of the estimated remaining years of service, with the first expense being recognized in thefollowing consolidated fiscal period.
(e) Provision for directors’ retirement benefits
Some of the consolidated subsidiaries record the directors’ retirement benefits to provide for directors'
retirement benefits in an amount as required by companies’ internal regulations.

(4) 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 theconsolidated 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 for other constructions.
- 21 -

(5) Foreign currency translation
Monetary assets and liabilities in foreign currencies are translated into yen at the rates of exchange in effectat the balance 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 rates of exchange in effect at the balance sheet dates. Differences
arising from the translation are presented as “Foreign currency translation adjustment” in shareholders’equity and financial statements.

(6) 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, arerecorded using the forward exchange rates.
(b) Hedging instruments and hedged items(i) Hedging instruments
Forward exchange contracts and interest rate swap agreements(ii) Hedged items
Receivables and payables denominated in foreign currencies and borrowings(c) Hedging policies
Forward exchange contracts and interest rate swap agreements are entered into in order to hedge therisks associated with fluctuations in foreign currencies exchange rates and interest rates.

(7) Amortization of goodwill and negative goodwill
The consolidation adjustment account is amortized by the straight-line method over a period of no longer
than 20 years.

(8) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks with draw able on demand, andshort-term investments which are readily convertible to cash subject to an insignificant risk of any change
in their value and which were purchased with an original maturity of three months or less.

(9) Other notes pertaining to the preparation of the Consolidated Financial Statements
Accounting treatment of consumption tax
Consumption tax and local consumption taxes are accounted for using a tax-exclusive method.

- 22 -

(7) Changes to Presentation(Consolidated Statements of Income)
Effective the consolidated accounting period, “Income taxes for prior periods,” which was included in “Income
taxes-current” in the previous fiscal year, is presented separately because its importance has increased. The
consolidated financial statements of the previous fiscal year were rearranged in order to reflect this change topresentation.

(8) Additional Information
1) Application of Accounting Standard for Accounting Changes and Error Corrections
For accounting changes and corrections of prior period errors made on or after the beginning of the fiscal year
under review, the Company adopted the “Accounting Standard for Accounting Changes and Error Corrections”(ASBJ Statement No. 24, December 4, 2009) and the “Implementation Guidance on Accounting Standard for
Accounting Changes and Error Corrections” (ASBJ Guidance No. 24, December 4, 2009).

2) Impact of change in corporation tax rate, etc.
With the promulgation of the “Act on Partial Revision of the Income Tax Act, etc. to Build Tax System
Conforming to Changes in Economic and Social Structures” (Law No. 114 of 2011) and the “Act on Special
Measures Concerning Security of Financial Resources Necessary for Implementation of Measures for
Restoration from the Great East Japan Earthquake” (Law No. 117 of 2011) on December 2, 2011, the corporation
tax rate was to be changed from the fiscal year starting on or after April 1, 2012. As a result of this change, thenormal effective statutory tax rate used to calculate deferred tax assets and liabilities will be as follows inaccordance with the time when temporary differences will reverse:
Up to March 31, 2012: 40.0%
From April 1, 2012 to March 31, 2015: 38.0%
On and after April 1, 2015: 35.0%
As a result of this change in the tax rate, the amount of deferred tax assets (the amount of deferred tax liabilities
is deducted) and deferred tax liabilities decreased ¥99 million and ¥36 million, respectively, while valuationdifference on available-for-sale securities and income taxes-deferred increased ¥22 million and ¥85 million,
respectively.
Also, deferred tax liabilities for land revaluation decreased ¥949 million and revaluation reserve for land
increased by the same amount.

- 23 -

(9) Notes to the Consolidated Financial Statements(Consolidated Balance Sheets Information)
FY2011FY2012

Accumulated depreciation of
94,005 million yen
96,979 million yen
property, plant and equipment
2. Guaranteed liabilities
8,486 million yen
6,835 million yen
3. Notes receivable less discount-trade
12 million yen- million yen
4. Endorsed notes receivable-trade
371 million yen
317 million yen
5. Notes to mature on the last day of the fiscal year
The last day of FY2012 fell on a holiday of financial institutions. Notes to mature on the last day of the fiscal year weresettled as of the clearing date. Notes that matured on the last day of the fiscal year under review are as follows:
Notes receivable-trade
47 million yen
1,722 million yen
Notes payable-trade
Other (Notes payable-facilities)
19 million yen
6. Revaluation of land for business use
The Company has revalued its land for business use pursuant to the law (Law No. 19, announced on March 31, 2001)
which revises parts of the law relating to the revaluation of land. The equivalent tax related to the change in the said
revaluation has been recorded in the liabilities (noncurrent liabilities) as a “Deferred tax liabilities for land revaluation” andthe deducted amount has been recorded under net assets as “Revaluation reserve for land.”・ Revaluation method
・・・・・The revaluation of land has been determined using a reasonable adjustment to theassessed value of the noncurrent assets for property tax as stipulated in Paragraph 3,
Article 2 of the enforcement order (Government ordinance No. 119, announced on
March 31, 1998)
・ Revaluation date・・・・・March 31, 2001
・ Variance between the market
value of the revalued land at theend of the period and the・・・・(11,152) million yen
revalued book value1.

- 24 -

(Consolidated Statements of Income Information)

1. Research and development expenses

FY2011FY2012

3,883 million yen

3,858 million yen

2. Impairment loss
FY2011 (April 1, 2010 - March 31, 2011)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage
Idle property
Property loaned out

Type
Buildings,
Land
Land

Location

Impairment loss

Saihaku, Tottori Pref.

4

Goshogawara, Aomori Pref.

57

Total

62

(Reason to recognized impairment loss)
The Company recorded an impairment loss on the above assets. This is because idle properties are not being usedand have no prospect for use in the future. In addition, the market price of land is declining for idle properties andproperties loaned out.
(Measurement of recoverable amount)
Recoverable amount is measured using net selling price. In case of land, the price is determined by applying
reasonable adjustments to the assessed value of noncurrent assets for property tax.

FY2012 (April 1, 2011 - March 31, 2012)
The Company recorded impairment losses on the following assets.
(millions of yen)
Usage
Idle property

Type
Buildings, Land

Location
Soma, Fukushima Pref.

Buildings,
Structures

Nasu-shiobara, Tochigi Pref.
Total

Impairment loss
1
28
29

(Reason to recognized impairment loss)
The Company recorded an impairment loss on the above assets. This is because idle properties are not being usedand have no prospect for use in the future. In addition, the market price of land is declining for idle properties.
(Measurement of recoverable amount)
Recoverable amount is measured using net selling price. In case of land, the price is determined by applying
reasonable adjustments to the assessed value of noncurrent assets for property tax.

- 25 -

(Consolidated Statements of Changes in Net Assets Information)
FY2011 (April 1, 2010 - March 31, 2011)1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury stock
Increase in numberof shares during
periodDecrease in
number of shares
during period

229,849,936——

229,849,936

44,22328,859—73,082

Number of shares(as of Apr. 1, 2010)(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

Number of shares(as of Mar. 31, 2011)

Increase in the number of shares, 28,859 shares during the period was by purchasing of shares below stock trading
unit.

FY2012 (April 1, 2011 - March 31, 2012)1.

Matters concerning the classes and number of outstanding stock and classes and number of treasury stock
Number of shares(as of Apr. 1, 2011)

Increase in numberof shares during
periodDecrease in numberof shares during
periodNumber of shares(as of Mar. 31, 2012)

229,849,936——

229,849,936

73,082

16,297—89,379(Number ofoutstanding shares)
Common stock(Treasury stock)
Common stock

Increase in the number of shares, 16,297 shares during the period was by purchasing of shares below stock trading
unit.

2.

Dividends

Of the dividends for which the record date belongs to the fiscal year ended March 31, 2012, those for which theeffective date of the dividends will be in the fiscal year ending March 31, 2013

Resolution

Type of shares

RegularMeeting of
Shareholders on
Jun. 26, 2012

Common stock

Source offunds fordividends

Totalamount ofdividend
paid(millionsof yen)Dividend
per share(yen)

Record date

Effective date

344

1.50

Mar. 31, 2012

Jun. 27, 2012

Retainedearnings(Consolidated Statements of Cash Flows Information)
Reconciliation between cash and cash equivalents at the end of period and the amount reported in the Consolidated
Balance Sheets.
FY2011
Cash and deposits

FY2012

5,696 million yen

7,052 million yen

more than 3 months(110) million yen(100) million yen

Total cash and cash equivalents

5,585 million yen

6,952 million yen

Time deposits with terms of- 26 -

(Segment Information)
1. Segment disclosure
The Company’s reported segments are business units for which discrete financial data are available and which areperiodically reviewed by the Company’s Board of Directors to determine resource allocation and to evaluate
financial 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.
The “agriculture-related business” consists of the manufacture and sale of agricultural machinery, construction
and sale of agriculture-related facilities, and business related to agricultural activities and products, including
revenue from the use of rice-polishing machines. The “other business” consists of information processing services
including the development, sale, and operation of computer software.

2. Method of accounting for net sales, income/loss, assets, liabilities and other items by segment
Most items reported under a segment apply the same accounting method to that stated in “Important Basic Items for
Preparing Consolidated Financial Statements.”
The income of a segment is equal to net income. Internal sales and transfer amounts between segments arerecorded on the basis of market price.

3. Net sales, income/loss, assets, liabilities and other items by segment
FY2011 (April 1, 2010 - March 31, 2011)(millions of yen)
Agriculturerelated
Net sales
Sales to outside customers
Internal sales or transfers
between segments
Total
Segment income (loss)
Segment assets
Segment liabilities
Other items
Depreciation
Amortization of negative
goodwillInterest income
Interest expenses
Extraordinary income
Extraordinary loss
(Loss on disaster)
Taxes
Increase of property, plantand equipment andintangible assets

Other

Total

Adjustments

Amount reported in
the consolidated
financialstatements

147,682

144

147,826-

147,826

0
147,682(919)
169,078
43,480

135
279
1
202
-

135
147,962(918)
169,281
43,480

(135)
(135)
(112)
-

147,826(918)
169,168
43,480

5,665

0

5,666

-

5,666

10

(1)

9

-

9

206
891
68
1,872
(760)
1,110

0
4

206
891
68
1,872
(760)
1,115

(0)
(0)
-

206
891
68
1,872
(760)
1,115

7,922

0

7,922

-

7,922

1.

Adjustment represents reduction in internal unrealized profit.

2.

Segment income (loss) have been adjusted from net income (loss) reported in the Consolidated Statements- 27 -

of Income.
3.

Segment assets have been adjusted from total assets reported in the Consolidated Balance Sheets.

4.

Segment liabilities represent short-term loans payable, long-term loans payable (including the current
portion of long-term loans payable), and bonds payable (including current portion of bonds payable).

FY2012 (April 1, 2011 - March 31, 2012)(millions of yen)
Agriculturerelated
Net sales
Sales to outside customers
Internal sales or transfers
between segments
Total
Segment income
Segment assets
Segment liabilities
Other items
Depreciation
Amortization of negative
goodwillInterest income
Interest expenses
Equity in losses ofaffiliates
Extraordinary income
Extraordinary loss
Taxes
Increase of property, plantand equipment andintangible assets

Other

Total

Adjustments

Amount reported in
the consolidated
financialstatements

145,125

127

145,252-

145,2520145,125
2,727
172,465
42,074

141
269
0
221
-

141
145,394
2,727
172,686
42,074

(141)
(141)
(132)
-

145,252
2,727
172,554
42,074

5,933

0

5,933

-

5,933

5

(1)

4

-

4

192
796

0
-

192
796

(0)
(0)

192
796

0

-

0

-

0

293
477
988

10

293
477
998

-

293
477
998

7,272

-

7,272

-

7,272

Notes:
1.

Adjustment represents reduction in internal unrealized profit.

2.

Segment income have been adjusted from net income reported in the Consolidated Statements of Income.

3.

Segment assets have been adjusted from total assets reported in the Consolidated Balance Sheets.

4.

Segment liabilities represent short-term loans payable, long-term loans payable (including the current
portion of long-term loans payable), and bonds payable (including current portion of bonds payable).

- 28 -

(Per Share Information)(yen)
FY2011FY2012

Net assets per share

231.13246.77

Net income (loss) per share(4.00)

11.87

Notes:
1.

The Company has not presented net income per share after adjustment for dilutive securities for FY2011
because it recorded net loss and there were no dilutive securities.

2.

The Company has not presented net income per share after adjustment for dilutive securities for FY2012
because there are no dilutive securities.

3.

Basis of calculation of net income (loss) per share
FY2011FY2012

Net income (loss) per share
Net income (loss) reported in the Consolidated Statements of Income

(918)

2,727

(918)

2,727

-

-

229,791,896

229,768,906(millions of yen)
Net income (loss) attributed to common shares(millions of yen)

Net income (loss) not attributable to common shares (millions of yen)
During period average number of common shares(shares)(Significant Subsequent Events)
FY2011 (April 1, 2010 –March 31, 2011)
Not applicable

FY2012 (April 1, 2011 – March 31, 2012)
Not applicable- 29 -

5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(millions of yen)
FY2011(as of Mar. 31, 2011)

FY2012(as of Mar. 31, 2012)

Cash and deposits

2,601

3,536

Notes receivable-trade

7,451

7,092

Accounts receivable-trade

27,48829,451

Merchandise and finished goods

12,86011,882

0

58

Raw materials and supplies

230

217

Advance payments-trade

329

157

Prepaid expenses

251

268

Deferred tax assets

445

716

Short-term loans receivable

7,788

7,438

Accounts receivable-other

1,164

1,219

Other

79

97

Allowance for doubtful accounts

(4)

(4)

60,687

62,133

Buildings, net

3,666

3,408

Structures, net

184

157

1,667

1,708

3

1

Tools, furniture and fixtures, net

1,047

673

Land

25,18325,183

Lease assets, net

190

218

Construction in progress

15

78

31,95831,430

Leasehold right

85

85

Software

188

196

Lease assets

130

115

Other

57

91

461

489

AssetsCurrent Assets:

Work in process

Total Current Assets
Noncurrent Assets:
Property, plant and equipment

Machinery and equipment, net
Vehicles, net

Total property, plant and equipment
Intangible assets

Total intangible assets

Investments and other assets- 30 -

FY2011(as of Mar. 31, 2011)

FY2012(as of Mar. 31, 2012)

Investment securities

4,871

4,861

Stocks of subsidiaries and affiliates

17,357

16,724

Investments in capital

90

86

Investments in capital of subsidiaries and affiliates

278

1,075

Long-term loans receivable from employees

67

57

4,876

4,584

rehabilitation and other00Long-term prepaid expenses

322

305

Other

1,006

981

Allowance for doubtful accounts

(170)

(175)

Allowance for investment loss

(1,145)(989)

Total investments and other assets

27,55427,514

Total Noncurrent Assets

59,97459,434

120,661

121,567

Notes payable-trade

15,91918,201

Accounts payable-trade

15,756

13,587

Short-term loans payable

6,500

6,500

Current portion of long-term loans payable

8,348

5,258

Lease obligations

91

113

Account payable-other

655

601

1,598

1,892

Income taxes payable

64

74

Advances received

176

137

Deposits received

276

344

Provision for bonuses

220-

Provision for loss on disaster

123-

Notes payable-facilities

144

166

4

4

49,88046,881Long-term loans receivable from subsidiaries andaffiliates
Claims provable in bankruptcy, claims provable in

Total Assets
Liabilities
Current Liabilities:

Accrued expenses

Other
Total Current Liabilities- 31 -

(millions of yen)
FY2011(as of Mar. 31, 2011)

FY2012(as of Mar. 31, 2012)

Noncurrent Liabilities:
Long-term loans payable

10,177

12,581

Lease obligations

246

237

Deferred tax liabilities

310

205

Deferred tax liabilities for land revaluation

7,593

6,644

Provision for retirement benefits

1,266

1,264

Long-term deposits from employees

758

711

Long-term deposits received

24

23

Asset retirement obligations

128

118

Other

245

167

20,75021,95370,631

68,83523,344

23,344

Legal capital surplus

11,554

11,554

Other capital surplus

2,450

2,450

Total capital surpluses

14,00414,004

1,487

3,336

1,487

3,336

(19)

(22)

38,817

40,663

345

249

-

3

Revaluation reserve for land

10,867

11,816

Total valuation and translation adjustments

11,212

12,06950,03052,732

120,661

121,567

Total Noncurrent Liabilities
Total Liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock
Total Shareholders’ Equity
Valuations and Translation Adjustments
Valuation difference on available-for-sale
Securities
Deferred gains or losses on hedges

Total Net Assets
Total Liabilities and Net Assets- 32 -

(2) Non-consolidated Statements of Income(millions of yen)
FY2011(Apr. 1, 2010Mar. 31, 2011)

FY2012(Apr. 1, 2011Mar. 31, 2012)

Net sales

90,56087,341

Cost of sales

78,35875,509Gross profit

12,202

11,832

Selling, general and administrative expenses

12,041

11,393161

438

Interest income

390

353

Dividends income

1,150

1,336

Rent income

1,388

1,333

258

460

3,189

3,484

Interest expenses

424

362

Interest on bonds

0-

Sales discounts

64

58

Rent expenses

1,135

1,084

Loss on abandonment of inventories

177

196

Other

385

186

2,188

1,888

1,161

2,034

Gain on sales of noncurrent assets

16

12Gain on sales of investment securities-

256

Reversal of allowance for doubtful accounts

5

-

Other

-

0

21

269

Loss on sales and retirement of noncurrent assets

81

36

Loss on valuation of investment securities

602

6

-

632

asset retirement obligations

121-

Loss on disaster469

2

Cost of measures for product recall

23

37

Other

-

0

1,298

715

Operating income
Non-operating income

Other
Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary loss

Loss on valuation of stocks of subsidiaries and affiliates
Loss on adjustment for changes of accounting standard for

Total extraordinary losses- 33 -

FY2011(Apr. 1, 2010Mar. 31, 2011)
Income (loss) before income taxes

FY2012(Apr. 1, 2011Mar. 31, 2012)

(114)

1,588

Income taxes-current

23

22

Income taxes-deferred

292

(282)

Total income taxes

316

(260)

Net income (loss)

(430)

1,848

- 34 -

(3) Non-consolidated Statements of Changes in Net Assets(millions of yen)
FY2011(Apr. 1, 2010Mar. 31, 2011)

FY2012(Apr. 1, 2011Mar. 31, 2012)

Shareholders’ Equity
Capital Stock
Balance at the beginning of period

23,344

23,344--

23,344

23,344

11,554

11,554--

11,554

11,554

2,450

2,450

-

-

2,450

2,450

14,00414,004--14,00414,004

1,916

1,487

(430)

1,848

Reversal of revaluation reserve for land2-

Total changes of items during the period

(428)

1,848

1,487

3,336

1,916

1,487

(430)

1,848

2

-

Changes of items during the period
Total changes of items during the period
Balance at the end of period
Capital Surplus
Legal capital surplus
Balance at the beginning of period
Changes of items during the period
Total changes of items during the period
Balance at the end of period
Other capital surplus
Balance at the beginning of period
Changes of items during the period
Total changes of items during the period
Balance at the end of period
Total capital surplus
Balance at the beginning of period
Changes of items during the period
Total changes of items during the period
Balance at the end of period
Retained Earnings
Other retained earnings
Retained earnings brought forward
Balance at the beginning of period
Changes of items during the period
Net income (loss)

Balance at the end of period
Total retained earnings
Balance at the beginning of period
Changes of items during the period
Net income (loss)
Reversal of revaluation reserve for land
- 35 -

FY2011(Apr. 1, 2010Mar. 31, 2011)
Total changes of items during the period

FY2012(Apr. 1, 2011Mar. 31, 2012)

(428)

1,848

1,487

3,336

(13)

(19)

Purchase of treasury stock

(6)

(3)

Total changes of items during the period

(6)

(3)

(19)

(22)

39,25238,817

(430)

1,848

Purchase of treasury stock

(6)

(3)

Reversal of revaluation reserve for land2-

Total changes of items during the period

(435)

1,845

38,817

40,663373

345

Net changes in items other than shareholders’ equity

(27)

(96)

Total changes of items during the period

(27)

(96)

345

249

-

-

Net changes in items other than shareholders’ equity-

3

Total changes of items during the period

-

3

-

3

10,86910,867

Net changes in items other than shareholders' equity

(2)

949

Total changes of items during the period

(2)

949

10,867

11,816

11,243

11,212

Balance at the end of period
Treasury Stock
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Total Shareholders’ Equity
Balance at the beginning of period
Changes of items during the period
Net income (loss)

Balance at the end of period
Valuation and Translation Adjustments
Valuation Difference on Available-for-sale Securities
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Deferred gains or losses on hedges
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Revaluation Reserve for Land
Balance at the beginning of period
Changes of items during the period

Balance at the end of period
Total Valuation and Translation Adjustments
Balance at the beginning of period- 36 -

FY2011(Apr. 1, 2010Mar. 31, 2011)

FY2012(Apr. 1, 2011Mar. 31, 2012)

Changes of items during the period
Net changes in items other than shareholders' equity

(30)

856

Total changes of items during the period

(30)

856

11,212

12,06950,49550,030

(430)

1,848

Purchase of treasury stock

(6)

(3)

Reversal of revaluation reserve for land2-

Net changes in items other than shareholders' equity

(30)

856

Total changes of items during the period

(465)

2,701

50,03052,732

Balance at the end of period
Total Net Assets
Balance at the beginning of period
Changes of items during the period
Net income (loss)

Balance at the end of period- 37 -

(4) Notes Regarding the Going Concern Assumption
Not applicable

6. Others(1) Production, Orders & Sales
1) Production results per product–type(millions of yen)
FY2011FY2012(Apr. 1, 2010-Mar. 31, 2011)(Apr. 1, 2011-Mar. 31, 2012)

Change from previous
periodCultivating & mowing
machinery

41,47542,412

937

Planting machinery

14,535

19,818

5,283

29,03325,240(3,792)

2,329

2,555

226

9,811

5,735

(4,075)

97,18595,763(1,421)---

97,18595,763(1,421)

Product-type

Harvesting andprocessing machinery
Parts and farming
implements
Other agriculture related
business
Agriculture-related business
total
Other business total
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 on order.

- 38 -

3) Sales results per product–type(a) Total(millions of yen)
Product-type

FY2011FY2012(Apr. 1, 2010-Mar. 31, 2011)(Apr. 1, 2011-Mar. 31, 2012)

Change from previous
periodAmountAmountAmount

Ratio

Ratio

%

Ratio

%

%

Cultivating &mowing machinery

39,77526.9

40,551

27.9

775

2.0

Planting machinery

14,0899.6

15,547

10.7

1,458

10.4

27,097

18.3

27,115

18.7

18

0.1

32,08921.7

31,491

21.7

(598)

(1.9)

34,631

23.4

30,41820.9(4,212)(12.2)

147,68299.9

145,125

99.9(2,557)

(1.7)

144

0.1

127

0.1

(16)

(11.7)

147,826100

145,252

100(2,574)(1.7)

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business total
Other business total
Total(b) Domestic(millions of yen)
Product-type

FY2011FY2012(Apr. 1, 2010-Mar. 31, 2011)(Apr. 1, 2011-Mar. 31, 2012)

Change from previous
periodAmountAmountAmount

Ratio
%

Ratio
%

Ratio
%

Cultivating &mowing machinery

26,681

20.7

27,434

22.2

752

2.8

Planting machinery

11,5679.0

10,385

8.4(1,182)(10.2)

25,50519.8

25,928

20.9

422

1.7

30,99324.1

30,465

24.6

(527)

(1.7)

33,811

26.3

29,51823.8(4,293)(12.7)

128,559

99.9

123,73199.9(4,827)

(3.8)

144

0.1

127

0.1

(16)

(11.7)

128,703100

123,859

100(4,844)(3.8)

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business total
Other business total
Total- 39 -

(c) Overseas(millions of yen)
Product-type

FY2011FY2012(Apr. 1, 2010-Mar. 31, 2011)(Apr. 1, 2011-Mar. 31, 2012)

Change from previous
periodAmountAmountAmount

Ratio

Ratio

%

Ratio

%

%

Cultivating &mowing machinery

13,093

68.5

13,116

61.3

23

0.2

Planting machinery

2,521

13.2

5,162

24.1

2,640

104.7

1,591

8.3

1,187

5.6

(404)

(25.4)

1,096

5.7

1,025

4.8

(70)

(6.5)

819

4.3

900

4.2

81

9.9

19,123100.0

21,393

100.0

2,270

11.9

-

-

-

-

-

-

19,123

100

21,393

100

2,270

11.9

Harvesting andprocessing
machineryParts and farming
implements
Other agriculture
related business
Agriculture-related
business total
Other business total
Total(2) Change of Directors (As of June 26, 2012)
Change of Directors was disclosed by the “Notice on Change of Representative Directors, Change of Officers, etc.
and Organizational Change,” dated March 15, 2012.

- 40 -