August 8, 2018
Name of Listed Company: ISEKI & CO., LTD.
Stock Exchange Listings: Tokyo
Company Code:6310 (URL http://www.iseki.co.jp)
Representative: Title President
Name Eiichiro Kinoshita
Enquiries:
Title General Manager of Financial Department
Name Yoshikazu Ogusu
Telephone: +81-3-5604-7671
Date of Submission of Quarterly Report:
August 8, 2018
Scheduled Date to Commence Dividend Payment:—
Supplementary Information for Quarterly Financial Results: Yes
Quarterly Financial Results Briefing:
Yes (for institutional investors and analysts)

Summary Announcement of Consolidated Financial Results
for the Six Months Ended June 30, 2018 (Japanese GAAP)
I. Consolidated Financial Results for the Six Months Ended June 30, 2018 (January 1, 2018－June 30, 2018)
A. Consolidated Results of Operations (Cumulative Total)(Rounded down to a million yen, % indicates changes from the previous corresponding period)

Six Months Ended
June 30, 201882,228
2,199
1,839
1,648

%

Six Months Ended
June 30, 2017
80,175
2,840
3,375
2,195

%

Net Sales
2.6(1.1)
Operating Income(22.6)
62.2
Ordinary Income(45.5)
167.0
Profit Attributable to Owners of Parent(24.9)
296.8
Earnings per Share (yen)
Basic
72.97
97.20
Diluted72.86
97.03
Note: Comprehensive income
Six months ended June 30, 2018: ¥681 million [(70.6)%]
Six months ended June 30, 2017: ¥2,322 million [—%]* The Company has consolidated shares of its common stock (one-for-ten share consolidation), effective July l, 2017.
The amounts stated for basic earnings per share are calculated based on the assumption that shares of the common
stock were consolidated at the beginning of the previous fiscal year.

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

As of June 30, 2018
Total Assets
Net Assets
Shareholder’s Equity to Total Assets Ratio (%)
Net Assets per Share (yen)Reference: Shareholder’s equity
As of June 30, 2018: ¥69,150 million
As of December 31, 2017: ¥69,164 million

As of December 31, 2017

214,067
70,91532.3
3,061.27

201,348
70,91634.4
3,061.84

II. Dividends

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

Dividend per Share(yen)2Q-end3Q-end———Year-end
30.00

—

Total
30.00

30.00

30.00

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

Operating
Income%Ordinary
Income%158,000 (0.2)
4,500 13.8
4,300
1.2
Note: Revision of the most recently announced financial results forecast: Yes
Full Year

ProfitAttributableto Owners of
Parent

%

3,200

14.0

Earnings
per Share(yen)

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

No
No
No
No

D. Total number of shares issued (common stock)1) Total number of shares issued at the end of the period (including treasury shares):
As of June 30, 2018
22,984,993 shares
As of December 31, 2017
22,984,993 shares2) Total number of treasury shares at the end of the period:
As of June 30, 2018
396,096 shares
As of December 31, 2017395,946 shares
3) Average number of shares during the period (cumulative total):
Six months ended June 30, 2018
22,588,983 shares
Six months ended June 30, 2017
22,587,943 shares* The Company has consolidated shares of its common stock (one-for-ten share consolidation), effective
July l, 2017. The amounts stated for the total number of shares issued (common stock) are calculated
based on the assumption that shares of the common stock were consolidated at the beginning of theprevious fiscal year.

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

 Contents of Appendix
1. Qualitative Information on Consolidated Financial Results for the Period under Review ....................2(1) Explanation on Results of Operations ..............................................................................................2(2) Explanation on Financial Position ....................................................................................................2(3) Explanation on Consolidated Financial Results Forecasts andOther Forecast Information ..............................................................................................................3
2. Quarterly Consolidated Financial Statements and Principal Notes ........................................................4(1) Quarterly Consolidated Balance Sheets............................................................................................4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ....................................................................................................................6(3) Quarterly Consolidated Statements of Cash Flows...........................................................................8(4) Notes to Quarterly Consolidated Financial Statements ..................................................................10(Notes to Going Concern Assumption) ..........................................................................................10(Notes to Material Changes in Shareholders’ Equity) ....................................................................10-1-

1. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation on Results of Operations
During the six months ended June 30, 2018, the Japanese economy saw signs of recovery in consumer spending
while corporate earnings and employment conditions remained on an improving trend. Meanwhile, the world
economy continued its slow recovery as a whole. The U.S. economy experienced steady growth against a backdropof improved corporate performance and employment environment. The European economy remained on a strong
recovery track, while the Chinese economy was underpinned by expanding personal consumption backed by an
improved income environment.
On the other hand, in the domestic agricultural environment, the market for agricultural machinery is bottoming
out and could potentially move into a recovery phase amid ongoing structural changes in agriculture.
Under these circumstances, ISEKI Group continued its initiatives to expand sales volume mainly by launching
new products and improving customer service in Japan, while working to strengthen its sales in its mainstay
overseas markets of North America, Europe, China and ASEAN. As a result, the Group’s consolidated financial
results are summarized as follows.
Net sales for the six months ended June 30, 2018 were ¥82,228 million, an increase of ¥2,052 million (2.6%) year on
year. Domestic sales in Japan were ¥63,920 million, an increase of ¥1,156 million (1.8%) year on year, mainly as aresult of favorable sales of rice transplanters thanks to the launch of new products, with added help from favorable
sales of farming implements, spare parts, and repair fees. Overseas sales were ¥18,307 million, an increase of ¥895
million (5.1%) year on year. This was mainly due to increased sales in North America attributable to thedisappearance of the effect of changes in business terms with OEM partner and increased sales at ISEKI France
S.A.S. in Europe, despite the decreased shipments of semi-finished rice transplanters in China stemming from local
inventory adjustments.
Operating income was ¥2,199 million, a decrease of ¥641 million (22.6%) year on year, mainly due to temporary
factors such as unprofitable construction of facilities and expenses resulting from the application of the principle ofcalculating retirement benefits upon the merger of subsidiaries, as well as other factors such as increased
development costs for products responsive to the emission gas regulations and increased personnel expenses.
Ordinary income was ¥1,839 million, a decrease of ¥1,535 million (45.5%) year on year, mainly due to aworsening in foreign exchange gains or losses and in the share of profit or loss of entities using equity method, as
well as the disappearance of subsidy income recorded in the same period of the previous fiscal year.
Profit attributable to owners of parent was ¥1,648 million, a decrease of ¥547 million (24.9%) year on year,
resulting from decreased tax expenses.
Sales by product are as follows.
[Domestic]
Sales of cultivating machinery (tractors, high-clearance multipurpose vehicles, among others) were ¥16,324
million (a decrease of 3.5% year on year). Sales of planting machinery (rice transplanters and vegetabletransplanters) were ¥6,472 million (an increase of 14.9% year on year). Sales of harvesting and processing
machinery (combine harvesters, among others) were ¥5,496 million (an increase of 0.2% year on year). Sales offarming implements, spare parts and repair fees were ¥21,266 million (an increase of 2.9% year on year). Sales ofother agriculture-related business (construction of facilities, among others) were ¥14,360 million (an increase of
2.2% year on year).
[Overseas]
Sales of cultivating and mowing machinery (tractors, among others) were ¥13,729 million (an increase of 23.4%
year on year). Sales of planting machinery (rice transplanters, among others) were ¥1,762 million (a decrease of
42.1% year on year). Sales of harvesting and processing machinery (combine harvesters, among others) were ¥131
million (a decrease of 87.3% year on year). Sales of farming implements and spare parts were ¥1,369 million (anincrease of 7.0% year on year). Sales of other agriculture-related business were ¥1,314 million (an increase of 42.3%
year on year).
(2) Explanation on Financial Position[Assets]
Total assets at the end of the second quarter ended June 30, 2018 increased by ¥12,719 million from the end of theprevious fiscal year to ¥214,067 million. This was mainly due to an increase of ¥2,824 million in cash and deposits,
an increase of ¥12,073 million in notes and accounts receivable - trade, a decrease of ¥1,134 million in other current
assets, and a decrease of 1,213 million in investment securities.
[Liabilities]
Total liabilities at the end of the second quarter ended June 30, 2018 increased by ¥12,719 million from the end of
the previous fiscal year to ¥143,152 million. This was mainly due to an increase of ¥5,693 million in notes andaccounts payable – trade and electronically recorded obligations - operating, an increase of ¥8,174 million in
short-term loans payable and long-term loans payable, and a decrease of ¥869 million in other non-current liabilities.
[Net assets]
Total net assets at the end of the second quarter ended June 30, 2018 were ¥70,915 million, an amount almost-2-

unchanged from the end of the previous fiscal year. This was mainly due to ¥1,648 million of profit attributable toowners of parent, ¥677 million of dividends of surplus, and a decrease of ¥806 million in valuation difference on
available-for-sale securities.
(3) Explanation on Consolidated Financial Results Forecasts and Other Forecast Information
With regard to the consolidated financial results forecasts for the fiscal year ending December 31, 2018, we havemade a downward revision of net sales in the amount of ¥6,500 million from the previous forecast (released on
February 13, 2018) in consideration of the actual financial results for the six months ended June 30, 2018, thecurrent trends of orders received, and other factors. There are no revisions in any of the other income items fromoperating income onward thanks to ongoing cost reductions, though gross profit fell due to decreased net sales.
These financial results forecasts are calculated based on the exchange rates at ¥110 per U.S. dollar (unchanged)and ¥130 per euro (unchanged) for the second half of the fiscal year ending December 31, 2018.
[Consolidated financial results forecasts for the fiscal year ending December 31, 2018 (January 1, 2018 throughDecember 31, 2018)](Millions of yen, unless otherwise stated)
ProfitEarnings
Operating
Ordinary
attributable
per share
Net sales
incomeincometo owners(yen)of parent
Previous Forecast (A)164,500
4,500
4,300
3,200
141.66
Latest Forecast (B)158,000
4,500
4,300
3,200
141.66(6,500)Difference (B－A)－－－－
Rate of Change (%)
(4.0)
－
－
－
－
(Ref.) Results for the Fiscal Year
158,382
3,953
4,250
2,807
124.29Ended December 31, 2017-3-

3. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2017

As of June 30, 2018

AssetsCurrent assets
Cash and deposits

7,981

10,806

Notes and accounts receivable - trade25,11337,187

Merchandise and finished goods

45,41045,387Work in process

6,728

6,776

Raw materials and supplies

1,267

1,200

Other

5,310

4,175

(60)

(102)

91,751

105,431

Buildings and structures, net

24,34325,172

Land

50,77351,049Other, net

20,476

19,949Total property, plant and equipment

95,592

96,171

1,025

1,035

Investment securities

7,146

5,932

Other

5,990

5,644

Allowance for doubtful accounts

(158)

(146)

Total investments and other assets

12,978

11,429109,596

108,636

201,348

214,067

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

Intangible assets
Investments and other assets

Total non-current assets
Total assets-4-

(Millions of yen)
As of December 31, 2017

As of June 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade26,532

29,118

Electronically recorded obligations - operating
Short-term loans payable

14,14027,216

17,24832,069Current portion of long-term loans payable

8,004

7,975

Income taxes payable

894

508

Provision for bonuses

446

484

Provision for loss on construction contracts

391

Other

12,018―12,353

Total current liabilities

89,64499,758Non-current liabilities
Long-term loans payable

24,35427,705

Deferred tax liabilities for land revaluation

5,780

5,780

Provision for directors’ retirement benefits

122

127

Net defined benefit liability
Asset retirement obligations

3,312
315

3,415
332

Other

6,902

6,032

Total non-current liabilities

40,78743,393

Total liabilities

130,432

143,152

Net assets
Shareholders’ equity
Capital stock

23,344

23,344

Capital surplus

13,453

13,453Retained earnings

16,51917,489Treasury shares

(986)

(986)

52,33053,301

1,818

1,011

(16)

12

Revaluation reserve for land

12,67012,670Foreign currency translation adjustment

1,115

928

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

Remeasurements of defined benefit plans

1,244

1,226

Total accumulated other comprehensive income

16,833

15,8498080

Non-controlling interests
Total net assets

1,671
70,916

1,684
70,915

Total liabilities and net assets

201,348

214,067

Subscription rights to shares-5-(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
For the Six Months Ended June 30, 2018
(Millions of yen)Six months ended
June 30, 2017

Six months ended
June 30, 2018

Net sales

80,17582,228

Cost of sales

56,421

58,682Gross profit

23,75423,545

Selling, general and administrative expenses

20,913

21,346

Operating income

2,840

2,199

Non-operating income
Interest income

7759

Dividend income

104

87

Foreign exchange gains

31―

Share of profit of entities accounted for using equity method

163―

Subsidy income

356

―

Other

372

486

1,105

633

Interest expenses

297

303

Foreign exchange losses―

146

Share of loss of entities accounted for using equity method

―

302

Other

273

239

Total non-operating expenses

570

992

3,375

1,839

Gain on sales of non-current assets

16

39

Gain on sales of investment securities―

52

Gain on step acquisitions―

16

Subsidy income

29―

Total extraordinary income

45

107

Loss on sales and retirement of non-current assets

79

82

Impairment loss

21

10

Total extraordinary losses

100

92

Income before income taxes

3,320

1,855

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses

Income taxes - current

819

452

Income taxes - deferred

291

(284)

Total income taxes

1,111

168

Profit

2,208

1,686

13

38

2,195

1,648

Profit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Quarterly Consolidated Statements of Comprehensive Income
For the Six Months Ended June 30, 2018
(Millions of yen)Six months ended
June 30, 2017
ProfitSix months ended
June 30, 2018

2,208

1,686

Valuation difference on available-for-sale securities

155

(826)

Deferred gains or losses on hedges

(1)

28

Foreign currency translation adjustment

38

(67)

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

(30)

(18)

(47)

(120)

113

(1,004)

2,322

681

2,309

664

12

17

Other comprehensive income

Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months ended
June 30, 2017

Six months ended
June 30, 2018

Cash flows from operating activities
Income before income taxes

3,320

1,855

Depreciation

3,542

3,327

Amortization of goodwill―

1

Impairment loss

21

10

Subsidy income

(386)

―

Increase (decrease) in net defined benefit liability

(236)

105

Increase (decrease) in provision for loss on disaster

(13)

―

Loss (gain) on sales of investment securities

―

(52)

Interest and dividend income

(181)

(146)

Interest expenses

297

303

Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment andintangible assets
Loss (gain) on step acquisitions

37

(58)

63

43

―

(16)

Decrease (increase) in notes and accounts receivable - trade(11,701)(12,069)

Decrease (increase) in inventories(4,585)19

Increase (decrease) in notes and accounts payable - trade

3,177

5,618

Other, net

979

1,660

Subtotal(5,665)601

Interest and dividend income received

189

146

Interest expenses paid

(292)

(300)

Proceeds from subsidy income

356

373

Payments for loss on disaster

(524)

―

―

(427)

(571)

(834)

(6,507)(441)(3,302)(3,655)

198

161

(0)

(12)

―

77

(454)

(204)

59

(91)

(3,499)(3,723)

Penalty paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Acquisition of investment securities
Proceeds from sales of investment securities
Decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investing activities-8-

(Millions of yen)Six months ended
June 30, 2017

Six months ended
June 30, 2018

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

5,495

4,927

Proceeds from long-term loans payable

2,825

7,691

Repayments of long-term loans payable(4,850)(4,367)

Proceeds from sales and leasebacks

343

315

Repayments of lease obligations(1,332)(1,145)

(0)

(0)

(339)

(670)

(2)

(4)

2,138

6,745

35

40

Net increase (decrease) in cash and cash equivalents(7,832)

2,620

Cash and cash equivalents at beginning of period

13,9097,795

Cash and cash equivalents at end of period

6,076

10,416

Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-9-(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumption)
Not applicable(Notes to Material Changes in Shareholders’ Equity)
Not applicable- 10 -