Kubota : Quarterly Report for the first quarter of the 135th business term (From January 1, 2024 to March 31, 2024) (0.6MB)

[Translation]

Quarterly Report

(The First Quarter of the 135th Business Term)

From January 1, 2024 to March 31, 2024

2-47, Shikitsuhigashi 1-chome,Naniwa-ku, Osaka, JAPAN

Kubota Corporation

TABLE OF CONTENTS
1. Overview of the Company	1
1.	Key Financial Data	1
2.	Description of Business	1
2. Business Overview	2
1.	Risk Factors	2
2.	Analysis of Consolidated Financial Position, Results of Operations,
	and Cash Flows by Management	2
3.	Material Contracts	4
3. Information on Kubota Corporation	5
1.	Information on the Shares of Kubota Corporation	5
2. Changes in Directors and Senior Management	7
4. Financial Information	8
1.	Condensed Consolidated Financial Statements	8
2. Other	22
Confirmation Letter

COVER
[Document Filed]	Quarterly Report ("Shihanki Hokokusho")
[Applicable Law]	Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act of Japan
[Filed to]	Director, Kanto Local Finance Bureau
[Filing Date]	May 15, 2024
[Fiscal Year]	The First Quarter of the 135th Business Term
	(from January 1, 2024 to March 31, 2024)
[Company Name]	Kabushiki Kaisha Kubota
[Company Name in English]	Kubota Corporation
[Title and Name of Representative]	Yuichi Kitao, President and Representative Director
[Address of Head Office]	2-47, Shikitsuhigashi 1-chome,Naniwa-ku, Osaka, JAPAN
[Phone Number]	[phone]
[Contact Person]	Kaori Sato, General Manager of Accounting Dept.
[Contact Address]	Kubota Corporation, Tokyo Head Office
	1-3, Kyobashi 2-chome,Chuo-ku, Tokyo, JAPAN
[Phone Number]	[phone]
[Contact Person]	Koji Motomochi, General Manager of Tokyo Administration Dept.
[Place Where Available for Public	Kubota Corporation, Tokyo Head Office
Inspection]	(1-3, Kyobashi 2-chome,Chuo-ku, Tokyo, JAPAN)
	Tokyo Stock Exchange, Inc.
	(2-1, Nihombashi Kabuto-cho,Chuo-ku, Tokyo, JAPAN)

This is an English translation of the Quarterly Report filed with the Director of the Kanto Local Finance Bureau via Electronic Disclosure for Investors' NETwork pursuant to the Financial Instruments and Exchange Act of Japan.

The translation of the Confirmation Letter for the original Quarterly Report is included at the end of this document.

For the purposes of this Quarterly Report, the "Company" refers to Kubota Corporation and its subsidiaries, unless context indicates otherwise.

References in this document to the "Financial Instruments and Exchange Act of Japan" are to the Financial Instruments and Exchange Act of Japan and other laws and regulations amending and/or supplementing the Financial Instruments and Exchange Act of Japan.

1. Overview of the Company

1. Key Financial Data

(Unit: millions of yen, except earnings per share)

	Three months ended	Three months ended		Year ended
	March 31, 2024	March 31, 2023	December 31, 2023
Revenue	¥	775,232	¥	781,563	¥	3,020,711
Profit before income taxes		106,119		105,495		342,289
Profit attributable to owners of the parent		72,922		69,100		238,455
Comprehensive income attributable to owners		173,613		94,712		367,470
of the parent
Equity attributable to owners of the parent		2,321,530		1,943,414		2,175,773
Total assets		5,752,993		4,916,820		5,359,247
Earnings per share attributable to owners of the parent:
Basic		62.06		58.11		201.74
Diluted		―		―		―
Ratio of equity attributable to owners of the parent to total		40.4		39.5		40.6
assets (%)
Net cash provided by (used in) operating activities		19,720		(105,047)		(17,273)
Net cash used in investing activities		(57,532)		(47,171)		(173,441)
Net cash provided by financing activities		58,859		105,777		178,404
Cash and cash equivalents, at the end of the period		249,155		181,097		222,118

(Notes)

1. The condensed consolidated financial statements and the consolidated financial statements are prepared in accordance with IFRS Accounting Standards.
2. As the Company prepares the condensed consolidated financial statements, its nonconsolidated financial data is not presented.
3. Amounts less than presentation units are rounded to the nearest unit.
4. Earnings per share attributable to owners of the parent-Dilutedis not stated since Kubota Corporation did not have potentially dilutive common shares that were outstanding during the period.

2. Description of Business

In the three months ended March 31, 2024, there were no material changes in the Company's business nor were there

any material changes in associates.

1

2. Business Overview

1. Risk Factors

For the three months ended March 31, 2024, there were no major risks for which managements recognize that they may have a significant impact on the consolidated financial position, results of operations, and cash flows (hereafter, "results of operations") presented in "2. Business Overview" or "4. Financial Information."

There were no material changes in the information described in the Risk Factors section of the Annual Securities Report for the year ended December 31, 2023.

2. Analysis of Consolidated Financial Position, Results of Operations, and Cash Flows by Management

(1) Analysis of Results of Operations

For the three months ended March 31, 2024, revenue of the Company decreased by ¥6.3 billion (0.8%) from the same period in the prior year to ¥775.2 billion.

Domestic revenue decreased by ¥9.5 billion (5.8%) from the same period in the prior year to ¥154.1 billion because of decreased revenue from Farm & Industrial Machinery although revenue increased in Water & Environment.

Overseas revenue increased by ¥3.1 billion (0.5%) from the same period in the prior year to ¥621.1 billion because of increased revenue from Farm & Industrial Machinery although revenue decreased in Water & Environment.

Operating profit decreased by ¥0.3 billion (0.3%) from the same period in the prior year to ¥103.0 billion mainly due to decreased sales in mostly Europe and North America of Farm & Industrial Machinery although there were some positive factors such as favorable effects from fluctuation of foreign exchange rates and price increase. Profit before income taxes increased by ¥0.6 billion (0.6%) from the same period in the prior year to ¥106.1 billion. Profit for the period increased by ¥3.9 billion (5.1%) to ¥79.2 billion, reflecting income tax expenses of ¥27.0 billion and share of profits of investments accounted for using the equity method of ¥0.1 billion. Profit attributable to owners of the parent increased by ¥3.8 billion (5.5%) from the same period in the prior year to ¥72.9 billion.

Revenue from external customers and operating profit by each reportable segment were as follows:

1) Farm & Industrial Machinery

Farm & Industrial Machinery is composed of farm equipment, agricultural-related products, engines, and construction machinery.

Revenue in this segment decreased by 0.7% from the same period in the prior year to ¥680.2 billion, which accounted for 87.7% of consolidated revenue.

Domestic revenue decreased by 11.7% from the same period in the prior year to ¥70.3 billion mainly due to decreased sales of farm equipment and agricultural-related products.

Overseas revenue increased by 0.7% from the same period in the prior year to ¥610.0 billion along with positive effect from fluctuation of foreign exchange rates. In North America, the Company struggled with tractor business due to continuous stagnation of residential market and crop prices decline although sales of construction machinery were solid thanks to the demand of housing construction and infrastructure development. In Europe, sales of construction machinery and engines slowed down due to investment decrease by the public budget curtailment and interest rate hike. Tractor business was also sluggish due to continuous weak investment by farmers. In Thailand, purchasing refrain caused by drought has continued while it is getting ease gradually. In India, sales became slow due to shrinking of the rice market and the dryland market caused by water shortage.

Operating profit in this segment decreased by 2.2% from the same period in the prior year to ¥105.4 billion mainly due to some negative factors such as the loss caused by sales decrease, a rise in material prices and incentive rate hike although there were some positive factors such as favorable effects from fluctuation of foreign exchange rates and price increase.

2

2) Water & Environment

Water & Environment is composed of pipe system business (ductile iron pipes, plastic pipes, and other products), industrial products business (reformer and cracking tubes, spiral-welded steel pipes, air-conditioning equipment, and other products), and environment business (environmental control plants, pumps, and other products).

Revenue in this segment decreased by 0.7% from the same period in the prior year to ¥90.3 billion, which accounted for 11.7% of consolidated revenue.

Domestic revenue increased by 0.8% from the same period in the prior year to ¥79.1 billion due to increased sales of environment business and industrial products business generated by steady sales progress of air-conditioning equipment.

Overseas revenue decreased by 10.5% from the same period in the prior year to ¥11.2 billion. Although sales of environment business increased, sales of reformer and cracking tubes decreased due to shipment delay despite steady demand.

Operating profit in this segment increased by 12.5% from the same period in the prior year to ¥10.1 billion mainly due to material price decline.

3) Other

Other is mainly composed of a variety of other services.

Revenue in this segment decreased by 15.6% from the same period in the prior year to ¥4.7 billion and accounted for 0.6% of consolidated revenue.

Operating profit in this segment increased by 26.2% from the same period in the prior year to ¥0.9 billion.

(2) Analysis of Financial Position

Total assets as of March 31, 2024, were ¥5,753.0 billion, an increase of ¥393.7 billion from the prior fiscal year-end. With respect to assets, trade receivables increased mainly in North America business.

Total liabilities also increased from the prior fiscal year-end due to an increase in bonds and borrowings as a result of increase in borrowings belonging to North America business. Equity increased due to the accumulation of retained earnings and an improvement in other components of equity along with fluctuations mainly in foreign exchange rates.

The ratio of equity attributable to owners of the parent to total assets stood at 40.4%, 0.2 percentage points lower than the prior fiscal year-end.

(3) Analysis of Cash Flows

Net cash provided by operating activities during the three months ended March 31, 2024 was ¥19.7 billion, an increase of ¥124.8 billion in net cash inflow compared with the same period in the prior year. This increase resulted from improvement of working capital such as trade payables and decrease in finance receivables.

Net cash used in investing activities was ¥57.5 billion, an increase of ¥10.4 billion in net cash outflow compared with the same period in the prior year. This increase resulted mainly from the acquisition of property, plant, and equipment due to capital expenditure.

Net cash provided by financing activities was ¥58.9 billion, a decrease of ¥46.9 billion in net cash inflow compared with the same period in the prior year due to a decrease in funding.

As a result of the above and after taking into account the effects of exchange rate changes, cash and cash equivalents as of March 31, 2024, were ¥249.2 billion, an increase of ¥27.0 billion from the beginning of the current period.

(4) Issues to Address on Business and Finance

There were no material changes with respect to issues to be addressed in the three months ended March 31, 2024, and no additional issues arose during the period.

(5) Research and Development

The Company's research and development expenses for the three months ended March 31, 2024, were ¥23.8 billion. There were no material changes in the Company's research and development activities during the three months

ended March 31, 2024.

3

3. Material Contracts

There were no material contracts which were decided or entered into during the three months ended March 31, 2024.

4

3. Information on Kubota Corporation

1. Information on the Shares of Kubota Corporation

(1) Total Number of Shares

1) Total Number of Shares

ClassTotal number of shares authorized to be issued (shares)

Common shares	1,874,700,000
Total	1,874,700,000

2) Issued Shares

	Number of shares issued	Number of shares issued	Stock exchange
	as of end of period	as of filing date	on which
	(shares)	(shares)	Kubota Corporation
Class	(March 31, 2024)	(May 15, 2024)	is listed	Description
				The number of shares
			Tokyo Stock Exchange, Inc.	per one unit of shares
Common shares	1,176,666,846	1,176,666,846	(the Prime Market)	is 100 shares.
Total	1,176,666,846	1,176,666,846	―	―

(2) Information on Share Acquisition Rights

1. Details of Stock Option Plan Not applicable.
2. Details of Other Stock Acquisition Rights Not applicable.

(3) Information on Moving Strike Convertible Bonds

Not applicable.

(4) Changes in the Total Number of Issued Shares, the Amount of Common Shares, and Other

	Changes in the	Balance of the
	total number of	total number of	Changes in	Balance of		Changes in	Balance of
	issued shares	issued shares		common	common		capital	capital
	(thousands	(thousands		shares	shares		reserve	reserve
Date	of shares)	of shares)	(millions of yen)	(millions of yen)	(millions of yen)	(millions of yen)
From：January 1, 2024	―	1,176,666	¥	―	¥ 84,130	¥	―	¥ 73,117
To：March 31, 2024

(5) Major Shareholders

Not applicable.

5

(6) Information on Voting Rights

Information on voting rights on the shareholders' list as of December 31, 2023, is stated in this subsection since Kubota Corporation could not identify the number of voting rights as of March 31, 2024.

1) Issued Shares

				(As of December 31, 2023)
		Number of shares	Number of
Classification		(shares)	voting rights	Description
Shares without voting rights		―	-	-
Shares with restricted voting rights		―	-	-
(treasury shares, etc.)
Shares with restricted voting rights		―	-	-
(others)
Shares with full voting rights	(Treasury shares)		-	-
(treasury shares, etc.)	Common shares:	23,600
	(Crossholding shares)
	Common shares:	718,400
Shares with full voting rights	Common shares:	1,175,359,700	11,753,597	-
(others)
Shares less than one unit	Common shares:	565,146	―	Shares less than one unit
				(100 shares)
Number of issued shares		1,176,666,846	―	-
Total number of voting rights		―	11,753,597	-

(Note)

The Shares with full voting rights (others) includes 1,000 shares (10 voting rights) registered in the name of Japan Securities Depository Center, Incorporated, and 1,324,314 shares (13,243 voting rights) held by the trust in connection with the stock compensation plan.

2) Treasury Shares

(As of December 31, 2023)

			Number of		Ownership
		Number of	shares held		percentage
		shares held	under		to the total
		under own	the names	Total	number of
		name	of others	shares held	issued shares
Name of shareholder	Address	(shares)	(shares)	(shares)	(%)
(Treasury share)
Kubota Corporation	2-47, Shikitsuhigashi 1-chome,	23,600	―	23,600	0.00
	Naniwa-ku, Osaka, JAPAN
(Crossholding shares)
Akita	295-38, Terauchikamiyashiki,	41,400	-	41,400	0.00
Kubota Corporation	Akita-shi, Akita, JAPAN
Minami Tohoku	16-1, Takakura Sugishita,	102,000	-	102,000	0.01
Kubota Corporation	Hiwadamachi, Koriyama-shi,
	Fukushima, JAPAN
Hokuriku Kinki	956-1, Shimokashiwanomachi,	9,000	-	9,000	0.00
Kubota Corporation	Hakusan-shi,
	Ishikawa, JAPAN
Fukuoka Kyushu	11-36, Noma 1-chome,Minami-ku,	566,000	-	566,000	0.05
Kubota Corporation	Fukuoka, JAPAN
Total crossholding shares	―	718,400	-	718,400	0.06
Total	―	742,000	-	742,000	0.06

(Note)

Treasury shares do not include shares of Kubota Corporation held by the trust in connection with the stock compensation plan.

6

2. Changes in Directors and Senior Management

There were no changes in Directors and senior management during the period from the filing date of the Annual Securities Report for the year ended December 31, 2023, to March 31, 2024.

(Reference Information)

Kubota Corporation has adopted the Senior Executive Officer and Executive Officer System. There were no changes in Senior Executive Officers and Executive Officers who do not hold the post of the Director during the period from the filing date of the Annual Securities Report for the year ended December 31, 2023, to March 31, 2024.

7