Financial Results for the First Quarter Fiscal Year Ending March,2009 Investor Relations Presentation Materials ISEKI & CO.,LTD. Kenji Minami, Vice President August 21,2008
1. Fiscal Year Ending March, 2009 Outline of Financial Results for the First Quarter 2.  Recent Development in Domestic and Overseas Markets 3.  Performance Forecast for the Fiscal Year Ending March, 2009 Revised Cumulative Performance Forecast  for the Second Quarter 4. Topics 1
(Note) The sales in first quarter are lower than in other quarters.
ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials
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ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials
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(JPY bn, %)

ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials
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*1  Repair fee, agricultural materials, etc. *2 Revenue from coin-operated rice polishing machines, and other items. 5
(JPY bn) *Sales for China are actual results (Jan.-Mar.) ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials 6
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＊＊  Factors of  YoY change [Extraordinary Gains] Gain on sale of securities : (0.7), Others : (0.1) [Extraordinary Losses]  Special loss for  voluntary retirees: +0.9, Others: (0.1) ＊  Factors of  change  from the plan [Others non-operating income]  Forex gain :+0.2, other:+0.1 88
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ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials

Trend of Demand for Agricultural Machinery (Forecast)
(1) Globally tightened demand for food led to a hike in grain prices. (2) Government stepped up measures for higher food self-sufficiency ratio. Focus on use of rice as a non-staple food (Use of rice flour as a wheat substitute, increase output of feed rice). (3) Hike in the price of agricultural materials (eg. fertilizer) and oil. (4) In the second half, agricultural machinery manufacturers will raise prices.
[Towards improved food self-sufficiency ratio] [21s¹ century New Agricultural Policy 2008] Targeted food self-sufficiency ratio 45%. Full fledged use of rice flour and feed rice. Announced actual demand for rice in 2007 and 2008 was 8.53 million tons, exceeding forecast by 0.2 million tons. Food self-sufficiency ratio improved to 40% in 2007 (1 point gain from 39%). Food self-sufficiency ratio target was revised upward from 45% to 50%. Time table to attain the target to be made by end of the year. Source: Extract from public data of Ministry of Agriculture, Fishery and Forestry ▪ Annual per capita rice consumption increased in FY2007 61.0kg →61.4kg Food self-sufficiency ratio 39% →40% Source: Extract from each statistical data  of Ministry of Agriculture, Fishery and Forestry
1. Trends in domestic agricultural machinery industry shipping and effective sales of ISEKI
Source: Estimated by ISEKI based on shipping statistics of Japan Farm Machinery Manufacturer's Association • Shipping of the industry recovered to the level of the previous year.(YoY,Jan.-Jun.) • Visible effects of ISEKI’s new products and the recovery of from temporary sharp decrease in sales of tractors and combine harvesters.
* 09/Mar/ Forecast: Apr.- Oct.  Orders received base
1. Compact Tractor Market in North America ※ Tractors with 50PS engines (PTO40PS) or less, and lawn mowers are not included
(Unit:1,00 、 %) Source: AEM statistics (Association of Equipment Manufacturers)
2. Trends in ISEKI’s Sales (North America)
•ISEKI's shipping also recovered. (JPY hn) ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials

1. Trends in European Market
Sales in  Landscaping market Sales in market for professionals were stable in general. Demand for consumer products declined due to inflation.
2. Trends in ISEKI’s Sales (Europe)
•ISEKI’s shipping stayed relatively slow affected by effective sales trend of distributors . We try to recover the 2 nd half centering on well selling products. in •Sales will be expanded to East and Central European market in future.

1. Trends in Asian Market
China: Market expansion by promotion of farming mechanization policy by the government. Sales of rice transplanters continued to grow. • South East Asia: Agricultural machinery demand expanded by global rise in grain prices.
2. Trend in ISEKI’s sales (Asia)
Rice transplanter sales continued to grow • China : in line with market expansion. Effective sales of bigger size  tractors shipped    1.0 • Korea : year were favorable. • Thailand :  Introduced 38HP tractors corresponding to increased demand for high power machinery. (JPY bn)
ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials
3. Performance Forecast for the Fiscal Year Ending March, 2009 Revised Cumulative Performance Forecast for the Second Quarter
ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials

• Company forex rate: $1=￥105; 1Euro=￥155 • In view of sales trends in domestic and overseas markets, cumulative 2Q performance forecast has been revised. •  Full year performance remains unchanged due to uncertainty of future market trends and material price.
*Cultivating Machinery   : Tractors, tillers *Planting Machinery   : Rice transplanters, Vegetable transplanters *Harvesting & Processing Machinery   : Combine harvesters, Dryers, Rice huller, etc. *Agricultural Machinery Related Business   : Repair fees, Agricultural materials, etc *Others   : Revenue from coin-operated rice polishing machines, and other items. ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials
• Company forex rate: $1=￥105; 1Euro=￥155
ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials

(JPY bn) 【Factors to increase or decrease operating income 】 Increased gross income by increased revenue   : +0.3 Reduced SG&A expenses : +0.2 ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials
1. July 1:   Established   Low Cost Agriculture Support Section - Sparse planting - Development of inside ridge processing machinery :UBS 21(Provisional name) 2. Intellectual Property Right
ISEKI 1st Quarter FY09/Mar.  Investor Relations Presentation Materials

1. Sparse Planting (in cultivation of rice)
Sparse planting is a method of cultivation with fewer plants per 3.3㎡. ISEKI’s sparse planting: 37 times per 3.3 m² (Traditionally: 60-80 plants) • Unchanged or more harvest • Halved raising seedling cost • Reduced labor time Merits for farmers •Secure profits •Expand scale • ISEKI has know-how accumulated in approx. 9 years → Establishment of ISEKI’s original cultivation technology. Experimental fields: Demonstrated in area of 2,326 ha except for Hokkaido. ISEKI intends to increase the number of technical advisors, allocate cultivation advisors and enhance sparse planting expertise of each sales personnel.
2. Development of machinery for outdoor culture,
inside ridge processing:UBS21 (Provisional name )
Announcement of UBS21 jointly developed with the National Agriculture and Food Research Organization on July 17. Trial sales starts in the current period followed by full-fledged sales in the next period. In cultivation of leaf vegetables like Cabbage and Chinese cabbage, fertilizer and medicine are mixed only in the effective area for plants in the mid ridge section. Able to reduce 30% of fertilizer, 50% of agrichemical. Mixing section of fertilizer and agrichemical
1 . Patent assessment ratio and rank in all industries *Ranked 1st  for 4 years running
※  Patent assessment ratio= Number of Decision to patent grant / (Number of Decision to patent grant +  Number of Decision of Refusal + Number of Withdrawal/ Abandonment) 2. Number of public patents by sector and rank *Ranked 1st  for 7 years running
Source: Japan Patent Office “Annual Report on Patent Policy”
• The objective of this presentation document is to provide information, and it is not intended to invite any action. • The document has been prepared by ISEKI based on currently available information and it involves potential risks and uncertainties. The forecast may not be consistent with actual results depending on fluctuation of the economic situation and market trends. • In using this information, investors are expected to depend on their own judgment. ISEKI is not liable for any losses incurred by investment decisions made utilizing the business forecast or targets given in this document.