Financial Results for the Second Quarter Fiscal Year Ending December 2016 Investor Relations Presentation Materials ISEKI & CO., LTD. Eiichiro Kinoshita, President August 19, 2016 an次1.  Outline of Financial Results for the Second Quarter Fiscal Year Ending December, 2016 2.  Recent Development in Domestic and Overseas Markets 3.   Performance Forecast for the Fiscal Year Ending December, 2016 4. Topics 2
Impact on business performance - Loss on disaster (Extraordinary losses) : ¥ 1.14 billion
*Gain on sales of investment securities (Extraordinary gains) : approx.¥ 1.08 billion (recording of  ¥ 0.97 billion in the 2 nd quarter) <Current situation of our subsidiaries in Kyushu> • Iseki Kyushu Co., Ltd. ,a sales company covering the entire Kyushu region, has resumed normal operations since 6th May. • Iseki-Kumamoto MFG. Co., Ltd. ,a manufacturing plant of combine harvesters,  has resumed full production since 23 td May. 3
As a transitory treatment, 9-month results are consolidated for fiscal 2015.
(The results from Oct. to Mar. are consolidated in the 2 nd quarter.) 4 1.Outline of Financial Results of the Second Quarter Fiscal Year Ending December, 2016 (Billions of yen) Net Sales ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials
Note: 2nd Quarter Average actual forex rate :  ¥112.7 to the US$, ¥126.2 to the Euro * Announced on Feb.12. 6
ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials 1
8
ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials 9
(JPY bn,)
(
Balance of Interest Bearing Liabilities (JPY bn) Equity Ratio (%)
Note: D/E Ratio= Interest bearing liabilities(incl. Lease liabilities) / Net assets ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials 12 2.Recent Development in Domestic and Overseas Markets New Tractor for Domestic Market “RESPA  RTS Series” (18.5- 25.0PS) ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials
Domestic industry shipment (9 principal machinery, moving annual total from 2008 to 2016) The impact of the last-minute demand surge before the consumption tax hike diminishing, market demand has been flat to be ¥ 240 - 250 billion.
* Shipment result (from Jan.- Jun.) + Orders received (from Jul.-Oct.) The results of “Parts & Others” are not included. ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials (

1. Market in North America
(Unit: 1000)
2. Situation of AGCO (OEM partner) Unit sales (Jan.- Jun.) ▷Utility tractors :   higher than last year ▷Compact tractors :   higher than last year
3. Our situation
Order & shipment (Jan.-Oct.): higher than last year Both compact and utility tractors outperformed the market. We will try to make further sales. Source: Association of Equipment Manufacturers statistics Figures have been rounded and non-adjusted. Net Sales in North America (

1. Trend in European Market
Whole market : downside risks caused by the UK’s decision to leave the EU Landscaping market: weak demand due to bad weather 2. Situation of distributors ▷Unit sales (Jan.-Jun.) Distributors      : lower than last year ISEKI France S.A.S  : lower than last year [Consolidated subsidiary]
3. Our situation
Order & shipment (Jan. -Oct.): almost the same with the previous year Although there is a concern of an economic downturn in the entire market, we make efforts to achieve our sales target by actively promoting new product (e.g. economy tractors) and making full use of the parts distribution center at ISEKI France S.A.S.

1. Trend in Thai market
Whole economy : recovery trend with the economy of automobile industry bottoming out Demand of agricultural machinery : a sign of farm income increase thanks to the rise of farm product prices and recovery from a long-term drought. 2. Situation of ISEKI (Sales) Thailand (Mitsubishi Corporation 80%, ISEKI 20% investment) Strong sales of new products launched last year ▷  Unit Sales of tractors (Jan.-Jun.): higher than last year Sales of combine harvesters started in August this year. We will make further sales through new product launch (e.g. combine harvesters), sales promotion by our sales company and sales network expansion. ISEKI THAILAND ,a new subsidiary will be established in Oct. and start developing, procuring and distributing parts and farming implements.

1. Trend in Indonesian market
The promotion run by the Indonesian government to spread agricultural machinery throughout the country boosting market demand
2. Our situation
A Sales Received orders for tractors and walk-behind rice transplanters this (Produced in our manufacturing site in China) year again We already acquired more orders than the previous year. We will further promote to get orders also in the second half.

1. Trend in Chinese market
(Yuan bn) ■Government subsidy

2. Situation of Dongfeng Iseki
Sales of Dongfeng Iseki (Jan. - June.) *Excluding export to Southeast Asia from China ▷Rice transplanters : higher than last year (walk-behind & ride-on) ▷Pest control machine : higher than last year ▷Tractors : Got off a good start (Yuan bn) Trend of ISEKI's sales in China (including equity) The sales of rice transplanters and tractors remain robust. We will focus on sales of combine harvesters for the autumn demand season. 3.Performance Forecast For the Fiscal Year Ending December, 2016 | for Domestic Market “JKB23-CY” ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials

1. Performance forecast

*Announced on Feb 12 ** Announced on August 10 Note: Foreign exchange rate: ¥105 to the US$ (revised from ¥120),  ¥115 to the Euro (revised from ¥130)
2. Year-End Dividend Forecast

< Foreign exchange sensitivity > (Operating Income, 12-month total)
(JPY million) 4 . Topics C ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials

1. Open patent per specialty field
Ranked 1st for 15 years running
Note: since the 2009 edition, agriculture & fisheries has been classified into "other special machinery" sector.
2 . Patent allowance rate
Ranked 1st In all industries
Note: patent allowance rate is calculated as follows; no. of patent granted / (no. of patent granted + no. of patent refused I + no. of  patent dismissed/ abandoned) Source: 2002-2016 Annual Report on Patent Policy announced by the Japan Patent Office published on June 30,2015 ISEKI 2Q of FY ending Dec.16 Investor Relations Presentation Materials

<Plant growth diagnosis device>
Awarded “2016 Special award for development” The Japanese Society of Agricultural Machinery and Food Engineers Industry’s first product jointly developed with Ehime University The device measures the function of photonic synthesis invisible to the human eyes while working automatically at night. It provides numerical assessment of the conditions of the plants which cannot be recognized by us, allowing us to find their disease at early stage and thus to improve their growing environment.
<Variable fertilizing rice-transplanter>
Awarded “2016 Award for new technology” The Japanese Society of Agricultural Machinery and Food Engineers Being equipped with "soil fertility sensor", "soil depth sensor" and "tablet terminal", the machine calculates soil fertility value of each paddy field by “soil fertility sensor” and the depth of plowed soil by “soil depth sensor”. Controlling the amount of fertilizer applied properly would prevent plants lodging and the fields contaminated by excessive fertilizer, which provides us efficient work at the time of harvesting.
Signed a technology partnership agreement with VEAM corporation, a state-enterprise in Vietnam (News released in August)
OUTLINE
•  To provide technical information of ISEKI's medium-sized tractor (model NT536/548) •  To produce ISEKI brand medium-sized tractors at the manufacturing plant to be constructed by VEAM corporation. Spreading ISEKI brands throughout the nation, we will promote further business expansion in Vietnam market. [About VEAM corporation]
• The objective of this presentation document is to provide information and never intends to induce any action. • The document was created by ISEKI with 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 decision made utilizing the business forecast or targets given in this document. ISEKI group is a promotional partner of FOO As a proposal of “smart choices”, we develop and deliver environmental-friendly products like "eco products".