Iseki : Consolidated Financial Results for the Six Months Ended June 30, 2023

Consolidated Financial Results

for the Six Months Ended June 30, 2023

[Japanese GAAP]

	August 9, 2023
Company name: ISEKI&CO., LTD.
Stock exchange listing: Tokyo
Code number: 6310
URL: https://www.iseki.co.jp
Representative: Shiro Tomiyasu	,President and Representative Director
Contact: Yoshikazu Ogusu	,General Manager of Financial Department

Phone: [phone]

Scheduled date of filing quarterly securities report: August 9, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months Ended June 30, 2023 (January 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2023	92,392		6.5	2,741	6.8	3,003	(9.8)	1,939	(24.8)
June 30, 2022	86,721		0.1	2,567	(45.6)	3,328	(39.6)	2,578	(37.5)

(Note) Comprehensive income:	Six months ended June 30, 2023:
	Six months ended June 30, 2022:

¥	3,551 million	[	19.0%]
¥	2,985 million	[	(35.6) %]

	Basic earnings	Diluted earnings per
	per share	share
Six months ended	Yen	Yen
June 30, 2023	85.75	85.73
June 30, 2022	114.04	114.00

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
June 30, 2023	218,611		75,133	32.2	3,116.22
December 31, 2022	206,491		72,345	32.9	3,006.74
(Reference) Equity: As of	June 30, 2023:	¥	70,480 million
As of	December 31, 2022:	¥	68,002 million

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2. Dividends

				Annual dividends
	1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended December 31, 2022	-		-	-		30.00	30.00
Fiscal year ending December 31, 2023	-		-
Fiscal year ending December 31, 2023				-		30.00	30.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023(January 1, 2023 to December 31, 2023) (% indicates changes from the previous corresponding period.)

		Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
			owners of parent	per share
		Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
Full year		176,500		5.9	4,500	27.3		4,000		6.3	2,600	(36.9)	114.97
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the six months ended June 30, 2023		No
(changes in specified subsidiaries resulting in changes in scope of consolidation):
New	-	(Company name:									)
Exclusion:	-	(Company name:									)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2023:	22,984,993	shares
December 31, 2022:	22,984,993	shares
2) Number of treasury shares at the end of the period:
June 30, 2023:	367,618	shares
December 31, 2022:	368,346	shares

3) Average number of shares outstanding during the period:
Six months ended June 30, 2023:	22,616,898	shares
Six months ended June 30, 2022:	22,614,492	shares

• The total number of treasury shares at the end of the period includes the Company's shares held by the "Board Benefit Trust" (254,700 shares for the period ended June 30, 2023, 255,800 shares for the period ended December 31, 2022). In addition, the Company's shares held by the "Board Benefit Trust" are included in the number of treasury shares deducted for the calculation of the average number of shares during the period.

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Millions of yen)
			As of December 31, 2022	As of June 30, 2023
Assets
	Current assets
	Cash and deposits	10,749	8,806
	Notes and accounts receivable - trade, and contract	27,574	38,372
	assets
	Merchandise and finished goods	53,562	57,169
	Work in process	10,335	10,506
	Raw materials and supplies	1,434	1,448
	Other	5,792	3,937
	Allowance for doubtful accounts	(33)	(54)
	Total current assets	109,414	120,187
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net	26,271	26,476
	Land	44,744	44,762
	Other, net	12,902	13,192
	Total property, plant and equipment	83,919	84,431
	Intangible assets	2,309	2,415
	Investments and other assets
	Investment securities	5,686	6,677
	Other	5,816	5,611
	Allowance for doubtful accounts	(654)	(712)
	Total investments and other assets	10,848	11,576
	Total non-current assets	97,076	98,423
	Total assets		206,491	218,611

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					(Millions of yen)
				As of December 31, 2022	As of June 30, 2023
Liabilities
	Current liabilities
		Notes and accounts payable - trade	19,457	17,110
		Electronically recorded obligations - operating	26,042	26,004
		Short-term loans payable	26,754	33,258
		Current portion of long-term loans payable	13,537	8,882
		Income taxes payable	588	985
		Provision for bonuses	566	802
		Other	11,241	12,657
		Total current liabilities	98,189	99,701
	Non-current liabilities
		Long-term loans payable	20,811	28,865
		Deferred tax liabilities for land revaluation	4,097	4,097
		Provision for retirement benefits for directors (and	163	157
		other officers)
		Provision for share awards for directors (and other	18	29
		officers)
		Retirement benefit liability	3,244	3,107
		Asset retirement obligations	908	913
		Other	6,711	6,604
		Total non-current liabilities	35,956	43,775
	Total liabilities	134,146	143,477
Net assets
	Shareholders' equity
		Share capital	23,344	23,344
		Capital surplus	13,139	13,139
		Retained earnings	21,131	22,384
		Treasury shares	(591)	(590)
		Total shareholders' equity	57,023	58,278
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	482	1,170
		securities
		Deferred gains or losses on hedges	8	(119)
		Revaluation reserve for land	8,835	8,835
		Foreign currency translation adjustment	1,142	1,869
		Remeasurements of defined benefit plans	510	445
		Total accumulated other comprehensive income	10,978	12,202
	Subscription rights to shares	12	12
	Non-controlling interests	4,330	4,640
	Total net assets	72,345	75,133
Total liabilities and net assets		206,491	218,611

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

		(Millions of yen)
	For the six months	For the six months
	ended June 30, 2022	ended June 30, 2023
Net sales	86,721	92,392
Cost of sales	61,545	65,131
Gross profit	25,176	27,260
Selling, general and administrative expenses	22,609	24,519
Operating profit	2,567	2,741

Non-operating income

Interest income

Dividend income

Foreign exchange gains

Other

Total non-operating income

Non-operating expenses

Interest expenses

Share of loss of entities accounted for using equity method

Commission for syndicated loans

Other

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on sale of non-current assets

Gain on change in equity

Other

Total extraordinary income

Extraordinary losses

Loss on sale and retirement of non-current assets Impairment losses

69	89
136	215
766	877
486	429
1,459	1,611
309	546
185	193
63	425
140	183
698	1,350
3,328	3,003
27	20
41	-
0	-
69	20
65	54
142	63

Total extraordinary losses	207	118
Profit before income taxes	3,189	2,905
Income taxes - current	928	996
Income taxes - deferred	(332)	(145)
Total income taxes	595	851
Profit	2,594	2,054
Profit attributable to non-controlling interests	15	114
Profit attributable to owners of parent	2,578	1,939

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