November 13, 2008
Stock Exchange Listing Tokyo,Osaka
Name of listed company: ISEKI & CO., LTD.
6310
Company Code:(URL http://www.iseki.co.jp) Head Office:Tokyo
Representative: Title President
Name Seiichiro Gamo
Enquiries:
Title General Manager of FinanceName Hiroshi Yunoki
Telephone: +81 3 5604 7671
Date of Submission of Quarterly Report
November 13, 2008

Summary Announcement of Consolidated Financial Results
for the Six Months Ended September 30, 2008
I. Financial Results for the Six Months Ended September 30, 2008

(April 1, 2008－September 30, 2008)

A. Results of operations(Rounded down to millions of yen, % indicates changes from the previous period)

Six Months Ended

Six Months Ended

September 30, 2008
Net Sales
Operating Income
Ordinary Income
Net Income
Net Income per Share (yen)Non-diluted
Fully Diluted%

77,007
1,214
1,126
690
3.06

September 30, 2007-%

71,200(319)(377)(2,200)(9.74)

3.00

(6.6)
-

-

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

September 30,

FY ended March,

2008

2008

173,291
53,02829.7%¥227.93

173,198
52,55629.4%¥225.76

Total Assets
Net Assets
Shareholders’ Equity to Total Assets Ratio
Net Assets per Share
Notes: Shareholders’ equity:

Second Quarter of FY Mar. 2009 ¥51,461 mil. Year ended March 31, 2008 ¥50,981mil.
II. Dividends

Dividend per share (Yen)(Recorded date)
FY ended March 2008
FY ending March 2009
FY ending March 2009 (forecast)End of 1Q-

End of 2Q－

End of 3Q－

Year-end
0.00－

Annual
0.00
－

－

-

-

0.00

0.00

(Note) Revision of dividend forecast during the second quarter of FY ending March 2009: None1III. Forecast for the Fiscal Year Ending March 31, 2009 (April 1, 2008－March 31, 2009)(% represents comparison with previous year for the full year performance)

Net Sales

Millions of yen

Annual%152,500 5.4

Operating

OrdinaryNet

Net Income

IncomeIncomeIncomeper share

Millions of yen%

2,900 294.2

Millions of yen %1,900

Millions of yen

%

Yen

800

－

3.54

－

(Note) Revision of performance forecast during the second quarter of FY ending March 2009: Yes
IV. Others
A. Change in important subsidiaries during the period (change in specified subsidiaries which accompanies a change
in the range of consolidation): None.
B. Adoption of simplified method in accounting method and unique accounting method for quarterly financial
statements: Yes(Note) For details, please refer to p2 [Qualitative Information.・Financial Statements, etc] 4. Others.
C. Change in principle, procedure and method of statement of accounting procedures in preparation of consolidated
financial statements (as stated in “Changes in essential matters which provide a basis for preparation ofConsolidated Financial Statements”)
1) Change which accompanies revision of accounting standards: Yes
2) Change other than No.1.
None(Note) For details, please refer to p2 [Qualitative Information・Financial Statements, etc] 4. Others.
D. Outstanding shares (Common shares)
1) Outstanding shares (Including treasury shares)
As of September 30, 2008 226,536,329 shares As of March 31, 2008 226,536,329 shares
2) Outstanding treasury shares
As of September 30, 2008 716,086 shares
As of March 31, 2008 711,509 shares
3) Average number of shares during the period (Quarterly consolidated cumulative period)
As of September 30, 2008 225,805,595 shares As of March 31, 2008 225,841,221 shares* Statement regarding proper use of financial performance forecasts and other notes.
(1) The forecast for operating results has been produced based on information presently available. It is possible thatin the future actual results may differ from the anticipated figures for a variety of reasons. Please refer to page 3[Qualitative Information・Financial Statements, etc], [3. Qualitative information regarding performance forecast]/(2) From the current fiscal year, the company adopts the “Accounting Standards for Quarterly Financial Reporting”(ASBJ Statement No.12 issued on March 14, 2007) and its Implementation Guidance No.14 issued on March 14,
2007. We have prepared consolidated quarterly financial statements in accordance with the “Accounting Standard
for Quarterly Financial Reporting”[Qualitative Information・Financial Statements, etc]
1. Qualitative information concerning the status of consolidated financial results
During the second quarter consolidated cumulative period under review, the Japanese economy faced extremely
an difficult situation due to depressed corporate earnings resulting from oil and material prices which still remain at
a high level in spite of recent trends toward calm, with an effect of the global financial unrest and sharply
appreciated yen, as well as a concern about contraction of consumer spending and capital investment caused by
future uncertainties. Overseas, financial unrest triggered by the sub-prime woes is affecting the real economy of the2

U.S., and there is a growing concern over the economic downturn on the back of declining residential prices and aworsening employment situation.

Also in Europe, where financial unrest has actualized and combined with

progressing inflation, there was a stronger perception of economic slowdown centering on consumer spending.
Furthermore in the Asian economy, while the economies of emerging nations including China are still expanding, thepace of growth is edging down.
In the domestic agricultural machinery market, there is a rising momentum for local production for local
consumption and a growing interest in domestic agricultural products reflecting the measures of agricultural policy
to enhance the food self- sufficiency ratio coupled with a sense of consumers’ crises over food safety. There is a signof recovery in the demand of agricultural machinery as the price of rice, a major product, stabilized. Under thecircumstances, the ISEKI Group has endeavored to broaden its line-up of new products to meet the diverse needs ofcustomers, and has aggressively promoted sales activities as well trying to increase both domestic sales and exports.
In the second quarter cumulative period, sales increased ¥5.807 billion from the same period of the previous
year to ¥77.007 billion (up 8.2%). Domestic sales increased ¥2.727 billon to ¥64.552 billion (up 4.4%) reflecting a
move towards recovery in agricultural machinery sales. Overseas sales increased ¥3.079 billion to ¥12.454 billion(up 32.9%) mainly contributed to by a return to normal ordering pattern of our OEM partner in North America by
their completion of inventory adjustment. Operating income increased ¥1.534 billion from the same period of theprevious year to ¥1.214 billion by increased gross income from increased revenue. Ordinary income increased¥1.503 billion from the same period of the previous year to ¥1.126 billion. Quarterly net income became ¥0.690
billion.

2. Qualitative information concerning the shifts in consolidated financial position
As of the end of the second quarter cumulative period, total assets increased ¥0.093 billion from the previous
period to ¥173.291 billion. In terms of assets, current assets increased ¥1.697 billion from the previous period. The
main items were a ¥5.567 billion increase in notes and accounts receivable and ¥3.994 billion decrease in inventory
assets. Fixed assets decreased ¥1.604 billion from the previous period. Investments and other assets decreased¥1.294 billion mainly due to a decrease in valuation of investment securities. Total liabilities decreased ¥0.379
billion from the previous period mainly due to a decrease in short-term borrowing. Total net assets increased ¥0.472
billion from the previous period to ¥53.028 billion. As a result, the equity ratio was 29.7%.

Cash and cash equivalents as of the end of the second quarter cumulative period increased ¥0.766 billion fromthe end of the previous fiscal year to ¥6.454 billion.
(Cash flows from operating activities)
Cash flow from operating activities during the second quarter cumulative period resulted in a net revenue of¥3.604 billion (an increase of ¥6.473 billon from the same period last year) mainly due to an increase in accounts
receivable of ¥5.567 billion and a decrease in inventory assets of ¥3.994 billion.
(Cash flows from investment activities)
Cash flows from investment activities during the second quarter cumulative period resulted in a net
expenditure of ¥1.594 billion (an increase of ¥1.351 billion from the same period last year), mainly due to capital
investment expenditure of ¥2.155 billion.
(Cash flows from financial activities)
Cash flows from financial activities during the second quarter cumulative period resulted in a net expenditure3

of ¥1.227 billion (an increase of ¥6.081 billion from the same period last year), due to decreased short-termborrowings, etc.

3. Qualitative information regarding performance forecast
In view of our business performance in the second quarter consolidated cumulative period under review andprospect for future, we have revised business performance forecasts for the fiscal year ending March 31, 2009 fromthe previous forecast (May 15, 2008).
As for details of the forecast, please refer to “Notice of Revision to Business Performance Forecast”.

4. Others(1) Changes in important subsidiaries during the period (change in specified subsidiaries which accompanies achange in the range of consolidation): None.
(2) Adoption of simplified method in accounting method and unique accounting method for quarterly financial
statements
1) Calculation method of income taxes, deferred tax assets and deferred tax liabilities
Concerning calculation of payable tax of income taxes, we employ a method to limit add-subtract items and tax
exemption items to important ones. With respect to evaluation of collectability of deferred tax assets, we rely on amethod to use business performance forecast or tax planning used in the previous consolidated fiscal year in case no
significant change is recognized in the managerial environment or situation to generate differences.
(3) Changes in principle, procedure and method of statement of accounting procedures in preparation of consolidated
quarterly financial statements.
1) Adoption of Accounting Standard for Quarterly Financial Statements
Starting from the current consolidated fiscal year, we have applied the “Accounting Standard for Quarterly Financial
Reporting” (ASBJ Statement No.12, issued on March 14, 2007) and “Implementation Guidance of AccountingStandard for Quarterly Financial Reporting”(ASBJ Implementation Guidance of Corporate Accounting Standards
No.14, issued on March 14, 2007). We have prepared consolidated quarterly financial statements in accordance withthe “Accounting Standard for Quarterly Financial Reporting”.
2) Change in evaluation standards and evaluation method of inventory assets
In appropriation of inventory assets held for sale, we formerly used mostly lower of cost method by total averagemethod. However, starting from the first quarter consolidated accounting period under review, in response to
application of “Accounting Standard for Evaluation of Inventory Assets” (ASBJ Corporate Accounting Standards
No.9, issued on July 5, 2006”, inventory assets have been calculated mainly by cost method (A method to reducebook value on balance sheet to reflect a declined profitability) of total average method.
As a consequence, operating income, ordinary income and before tax net income have been reduced by ¥148 million
respectively.
3) Adoption of "Practical Solution of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated
Financial Statements“Starting from the current first quarter consolidated accounting period, we have applied the "Practical Solution of
Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements”(ASBJ Practical
Issues Task Forces Report No.18, issued on May 17, 2006).

4

Impact of the application on the profit and loss was negligible.
The impact of the application on the profit and loss was negligible.

5．Consolidated Quarterly Financial Statements(1)

Consolidated Quarterly Balance Sheets(millions of yen)
FY2009(as at Sep. 30, 2008)

FY2008(as at Mar. 31, 2008)

6,762

5,817

34,40828,840219

53

Merchandise and products

33,84038,363Work in progress

3,516

3,011

Raw materials and stocks

1,291

1,267

Others

2,484

3,430

Allowance for doubtful accounts

(132)

(93)

82,38980,691

Buildings and structures(net)

15,946

16,293

Land

50,83850,729Others(net)12,765

12,79779,55079,820796

835

Investment securities

5,510

6,324

Others

5,695

6,180

Allowance for doubtful accounts

(649)

(655)

10,555

11,85090,90292,506173,291

173,198

AssetsCurrent Assets
Cash and time deposits
Notes and accounts receivable
Marketable securities

Total current assets
Fixed Assets
Tangible fixed assets

Total tangible fixed assets
Intangible fixed assets
Investments and other assets

Total investment and other assets
Total fixed assets
Total Assets

5

(millions of yen)
FY2009(as at Sep. 30, 2008)

FY2008(as at Mar. 31, 2008)

Notes and accounts payable

41,78040,788

Short-term borrowings

22,75925,09240

100

10,664

9,469

Accrued income taxes

677

511

Allowance for bonus

841

462

5,816

6,641

82,57983,066

Bonds

2,525

2,545

Long-term debt

20,736

20,726

gain

7,595

7.595

Accrued retirement benefits for employees

4,463

4,164

356

318

2,006

2,225

37,68337,575120,262

120,641

Common stock

22,78422,784

Capital surplus

12,815

12,815Retained earnings

4,772

4,081

Treasury stock

(179)

(167)

40,19239,514710

907

10,527

10,52731

31

11,268

11,466

1,567

1,575

Total Net Assets

53,02852,556

Total Liabilities and Net Assets

173,291

173,198

Liabilities
Current Liabilities

Bonds(due within one year)
Long-term debt(due within one year)

OthersTotal current liabilities
Long - term Liabilities

Deferred tax liability from land revaluation

Accrued directors' retirement benefits
OthersTotal long-term liabilities
Total liabilities
Net Assets
Shareholders' equity

Total shareholders’ equity
Difference of appreciation and conversion
Net unrealized holding gain on securities
Land revaluation reserve
Foreign currency translation adjustments
Total difference of appreciation andconversion
Minority interests in Consolidated Subsidiaries

6(2) Consolidated Quarterly Statements of Income(Second Quarter Consolidated Cumulative Period)(millions of yen)
FY2009(Apr.1, 2008 – Sep.30,2008)
Net sales

77,007

Cost of sales

53,630Gross Profit

23,376

Selling, general and administrative expenses
Operating Income

22,162
1,214

Non-operating Income
Interest received

108

Dividend received

87

Foreign exchange gain

103

Others510

Total non-operating income

809

Non-operating Expenses
Interest expenses

620

Others277

Total non-operating expenses

897

Ordinary Income

1,126

Extraordinary Gains
Gain on sale and disposal of property, plant and equipment

31

Gain on sale of investment securities

133

Total Extraordinary Gains

164

Extraordinary Losses
Loss on sale and disposal of property, plant and equipment

98

Reversal of past year allowance for directors’ retirement benefit

144

Others21

Total Extraordinary Losses

264

Income before income taxes and minority interests

1,026

Income taxes

540

Reversal of past year corporate and other taxes(199)

Total Income taxes, deferred tax

340

Minority interests in consolidated subsidiaries

(4)
690

Net Income7(3) Consolidated Quarterly Statements of Cash Flows(millions of yen)
FY2009(Apr.1,2008-Sep. 30, 2008)
Cash Flows from Operating Activities
Income before income taxes and minority interests
Depreciation and amortization

1,026
2,184

Increase in reserve for retirement benefits

299

Loss (gain) on sales of investment securities(133)

Interest and dividend income(196)Interest expenses

620

Effect of foreign exchange rate changes

11

Loss on sales of tangible and intangible fixed assets

66

Decrease in notes and accounts receivable(5,567)

Decrease(increase)in inventories
Increase(decrease) in notes and accounts payable

3,994
992

OthersSubtotal

1,009
4,308

Interest and dividends received

194Interest paid

(629)

Income taxes paid

(386)

Refunded income taxes

116

Net cash provided by (used in) operating activities
Cash Flows from Investing Activities
Payment for purchase of securities(3,604)(122)

Proceeds from sale of securities
Payments for purchases of tangible and intangible fixed assets

51(2,155)

Proceeds from sale of tangible and intangible fixed assets
Payments for purchase of investment securities

186
(0)

Proceeds from sale of investment securities

483

Net decrease in time deposits(178)

Others139

Net cash used in (provided by)investing activities(1,594)

Cash Flows from Financing Activities
Net increase in short-term borrowings
Proceeds from long-term debt

(2,329)
6,390

Repayments of long-term debt

(5,186)

Redemption of bonds(80)

Payments for purchases of treasury stock(12)

OthersNet cash used in financing activities(9)(1,227)

Effect of Exchange rate Changes on Cash and Cash Equivalents(15)

Net Increase in Cash and Cash Equivalents

766

Cash and Cash Equivalents at beginning of year

5,687

Cash and Cash Equivalents at end of year

6,454

8

Starting from the current consolidated fiscal year, we have applied the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ Statement No.12, issued on March 14, 2007) and “Implementation Guidance of
Accounting Standard for Quarterly Financial Reporting”(ASBJ Implementation Guidance of Corporate AccountingStandards No.14, issued on March 14, 2007). We have prepared consolidated quarterly financial statements inaccordance with the “Accounting Standard for Quarterly Financial Reporting”.
(4) Note on going concern premises
There is no corresponding item.
(5) Note in case there is a substantial change in the amount of shareholders’ equity
There is no corresponding item.

9

[Reference material](Summary） Consolidated Quarterly Statements of Income
Second quarter consolidated cumulative period of the previous year (Apr.1, 2007 – Sep. 30, 2007)(millions of yen)nd

Quarter
FY2008(Apr.1 2007 – Sep.1, 2007)2

Account％

AmountI

Net sales

71,200100.0

II

Cost of sales

49,467

69.5

21,73330.5

22,05330.9

Operating Income

(319)

(0.4)

Non-operating Income

773

1.1

Gross Profit

III

IV

V

VI

VII

Selling, General and Administrative Expenses

Interest and dividend received

164

Others608

Non-operating Expenses

830

Interest expenses

613

Others217

Ordinary Income

(377)

(0.5)

982

1.3

Extraordinary Gains
Gain on sale and disposal of property, plant and equipment

27

Gain on sale of investment securities

925

Others28
1,583

Extraordinary Losses
Loss on sale and disposal of property, plant and equipment

84

Loss from bad debts

385

Special retirement benefit

920

Cost for measures of product recall

140

Others53

Income before income taxes and minority interests

1.2

2.2

(978)

(1.4)

Income taxes

430

0.6

Income taxes adjustment

783

1.1

8

0.0

(2,200)(3.1)

Minority interests in consolidated subsidiaries
Net Income10(Summary) Consolidated Quarterly Statements of Cash Flows
Second quarter consolidated cumulative period of the previous year (Apr. 1, 2007 – Sep. 30, 2007)(millions of yen)nd

2
Quarter FY2008(Apr..1,2007 -Sep. 30, 2007)
I

Description
Cash Flows from Operating Activities
Income before income taxes and minority interests
Depreciation and amortization(168)

Increase in reserve for retirement benefits(1,322)

Loss (gain) on sale of investment securities(925)

Interest and dividend income(164)Interest expenses

537

Effect of exchange rate changes(71)

Loss (gain) on sale of tangible and intangible fixed assets

56

Special retirement benefits

920

Increase in notes and accounts receivable(1,592)

Increase in inventories

295

Decrease in notes and accounts payable(140)

Others216
Subtotal(1,219)Interest and dividends received

168

Interest paid

(531)

Special retirement benefits paid

(920)

Income taxes paid

(426)

Refunded income taxes

59

Net cash provided by (used in) operating activities(1)

Proceeds from ales of securities

1

Purchase of tangible and intangible fixed assets(2,455)

Sales of tangible and intangible fixed assets

254

Purchase of investment securities(0)

Sales of investment securities

1,762

Net decrease (increase) in long-term loans

25

Net decrease (increase) in time deposits(157)

Others327

Net cash used in (provided by)investing activities(243)

Cash Flows from Financing Activities
Net decrease (increase) in short-term borrowings(394)

Proceeds from long-term debt

9,550

Repayment of long-term debt

(4,176)

Redemption of bonds(120)

Payment for purchase of treasury stock(2)

Others(3)

Net cash used in financing activities
IV(2,869)Cash Flows from Investing Activities
Payment for purchase of securities

III

(978)
2,117

Goodwill amortization

II

Amount4,853

Effect of Exchange Rate Changes on Cash and Cash Equivalents

108

V

Net Decrease in Cash and Cash Equivalents

1,848

VI

Cash and Cash Equivalents at beginning of the Period

4,985

II

Cash and Cash Equivalents at end of the Period

6,833

11