Kubota : Earnings release for the three months ended March 31, 2024 (2.1MB)

Interim

Undecided

Total

Undecided

FOR IMMEDIATE RELEASE	May 10, 2024

Contact: IR Section

Corporate Planning and Control Dept.

2-47, Shikitsuhigashi 1-chome,

Naniwa-ku, Osaka 556-8601, Japan

Phone: [phone]

FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 [IFRS]

Kubota Corporation hereby reports its consolidated results for the three months ended March 31, 2024.

Consolidated Financial Highlights

1. Consolidated financial results for the three months ended March 31, 2024

(1) Results of operations			(Unit: millions of yen, except per share amounts)
	Mar. 31, 2024		(%)	Mar. 31, 2023	(%)
Revenue	¥ 775,232		(0.8)	¥ 781,563	31.8
Operating profit	¥ 102,950		(0.3)	¥ 103,248	54.6
Profit before income taxes	¥ 106,119		0.6	¥ 105,495	41.0
Profit for the period	¥ 79,183		5.1	¥ 75,318	35.7
Profit attributable to owners of the parent	¥ 72,922		5.5	¥ 69,100	36.6
Comprehensive income for the period	¥ 187,158		76.8	¥ 105,849	(22.0)
Earnings per share attributable to owners of the parent:
Basic	¥ 62.06			¥ 58.11
Diluted
(2) Financial position				(Unit: millions of yen)
	Mar. 31, 2024		Dec. 31, 2023
Total assets	¥ 5,752,993			¥ 5,359,247
Total equity	¥ 2,575,421			¥ 2,416,067
Equity attributable to owners of the parent	¥ 2,321,530			¥ 2,175,773
Ratio of equity attributable to owners of the parent
to total assets	40.4%			40.6%

Notes:

1. Change (%) represents the percentage change from the same period in the prior year.
2. Amounts less than one million yen are rounded.

2. Cash dividends

Year ending Dec. 31, 2024

Year ended Dec. 31, 2023

Note:

(Unit: yen)

Cash dividends per common share

Year-end

Undecided

Although Kubota Corporation's basic policy for the return of profit to shareholders is to maintain stable dividends and raise dividends, the specific amount of cash dividends for each fiscal year is decided in consideration of the development of business performance, financial position, and shareholder return ratio calculated from dividends and share buybacks. The specific amount of year-end cash dividends for the year ending December 31, 2024 has not been decided at this time, and Kubota Corporation will publicize the amount as soon as a decision is made.

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Kubota Corporation

and Its Subsidiaries

3. Forecasts of operations for the year ending December 31, 2024				(Unit: millions of yen, except per share amounts)
	Six months ending		Change		Year ending		Change
	June 30, 2024		(%)		Dec. 31, 2024		(%)
Revenue	¥ 1,550,000		2.0		¥ 3,050,000		1.0
Operating profit	¥ 180,000		(2.5)		¥ 320,000		(2.7)
Profit before income taxes	¥ 188,000		(2.0)		¥ 333,000		(2.7)
Profit attributable to owners of the parent	¥ 130,000		0.9		¥ 226,000		(5.2)
Earnings per share attributable to owners of the parent - basic

Notes:

1. Change (%) represents the percentage change from the prior year.
2. Please refer to the accompanying materials, "1. Review of operations and financial results (3) Forecasts for the year ending December 31, 2024" on page 6 for further information related to the forecasts of operations.

4. Other information

1. Changes in significant subsidiaries during the three months ended March 31, 2024 (changes in specified subsidiaries resulting in the changes in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates
3. 1. Changes in accounting policies due to reasons other than a) above: None
   2. Changes in accounting estimates: None
4. Number of common shares issued

a) Number of common shares issued including treasury shares as of March 31, 2024	:	1,176,666,846
Number of common shares issued including treasury shares as of December 31, 2023	:	1,176,666,846
b) Number of treasury shares as of March 31, 2024	:	1,685,485
Number of treasury shares as of December 31, 2023	:	1,685,151
c) Weighted-average number of common shares outstanding during the three months ended March 31, 2024	:	1,174,981,464
Weighted-average number of common shares outstanding during the three months ended March 31, 2023	:	1,189,168,601

Information on the status of the quarterly review by the independent auditor

This release is not subject to the quarterly review by the independent auditor.

Method of obtaining supplementary materials on the financial results

Kubota Corporation plans to hold a result briefing (conference call) for institutional investors and securities analysts on May

< Cautionary statements with respect to forward-looking statements >

This document may contain forward-sumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company's markets, particularly government agricultural policies, levels of capital expenditures both in public and private sectors, foreign currency exchange rates, the occurrence of natural disasters, continued competitive pricing pressures in the marketplace, as well as the Company's ability to continue to gain acceptance of its products.

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Kubota Corporation

and Its Subsidiaries

	Index to Accompanying Materials
1.	4
(1)	4
(2)	5
(3)	6
2.	6
(1)	6
(2)	6
3.	7
(1)	7
(2)	9
(3)	10
(4)	11
(5)	12
(6)	12
(7)	13
(8)	14

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1) Farm & Industrial Machinery

2) Water & Environment

3) Other

a)

b)

Kubota Corporation

and Its Subsidiaries

3. Condensed consolidated financial statements

(1) Condensed consolidated statement of financial position

ASSETS							(Unit: millions of yen)
				Mar. 31, 2024		Dec. 31, 2023		Change
				Amount	%		Amount	%		Amount
Current assets:
	Cash and cash equivalents		¥	249,155		¥	222,118		¥	27,037
	Trade receivables			1,105,408			945,490			159,918
	Finance receivables			578,546			552,419			26,127
	Other financial assets			92,330			83,018			9,312
	Contract assets			29,727			47,669			(17,942)
	Inventories			707,208			668,048			39,160
	Income taxes receivable			2,296			5,763			(3,467)
	Other current assets			77,485			55,846			21,639
	Total current assets			2,842,155	49.4		2,580,371	48.1		261,784
Noncurrent assets:
	Investments accounted for using			46,666			46,523			143
	the equity method
	Finance receivables			1,399,026			1,349,047			49,979
	Other financial assets			207,402			188,654			18,748
	Property, plant, and equipment			767,825			727,061			40,764
	Goodwill			154,438			145,715			8,723
	Intangible assets			193,297			187,000			6,297
	Deferred tax assets			102,029			96,091			5,938
	Other noncurrent assets			40,155			38,785			1,370
	Total noncurrent assets			2,910,838	50.6		2,778,876	51.9		131,962
	Total assets		¥	5,752,993	100.0	¥	5,359,247	100.0	¥	393,746

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									Kubota Corporation
									and Its Subsidiaries
LIABILITIES AND EQUITY								(Unit: millions of yen)
				Mar. 31, 2024			Dec. 31, 2023		Change
				Amount		%		Amount	%		Amount
Current liabilities:
	Bonds and borrowings		¥	779,640			¥	663,294		¥	116,346
	Trade payables			315,589				300,902			14,687
	Other financial liabilities			97,725				93,270			4,455
	Insurance contract liabilities			53,718				51,333			2,385
	Income taxes payable			35,693				29,706			5,987
	Provisions			78,451				77,191			1,260
	Contract liabilities			35,665				33,043			2,622
	Other current liabilities			272,966				244,323			28,643
	Total current liabilities			1,669,447		29.0		1,493,062	27.9		176,385
Noncurrent liabilities:
	Bonds and borrowings			1,383,989				1,326,913			57,076
	Other financial liabilities			42,275				44,701			(2,426)
	Retirement benefit liabilities			16,024				15,907			117
	Deferred tax liabilities			58,816				55,653			3,163
	Other noncurrent liabilities			7,021				6,944			77
	Total noncurrent liabilities			1,508,125		26.2		1,450,118	27.0		58,007
	Total liabilities			3,177,572		55.2		2,943,180	54.9		234,392
Equity:
	Share capital			84,130				84,130
	Share premium			97,730				97,377			353
	Retained earnings			1,738,396				1,693,681			44,715
	Other components of equity			404,484				303,794			100,690
	Treasury shares			(3,210)				(3,209)			(1)
	Total equity attributable to owners of the parent			2,321,530		40.4		2,175,773	40.6		145,757
	Noncontrolling interests			253,891		4.4		240,294	4.5		13,597
	Total equity			2,575,421		44.8		2,416,067	45.1		159,354
	Total liabilities and equity		¥	5,752,993		100.0	¥	5,359,247	100.0	¥	393,746

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Kubota Corporation

and Its Subsidiaries

(2) Condensed consolidated statement of profit or loss

									(Unit: millions of yen, except earnings per share)
				Three months ended		Three months ended		Change
				Mar. 31, 2024				Mar. 31, 2023
				Amount		%			Amount	%		Amount	%
	Revenue		¥	775,232		100.0		¥	781,563	100.0	¥	(6,331)	(0.8)
	Cost of sales			(537,884)					(551,394)			13,510
	Selling, general, and administrative expenses			(136,733)					(126,798)			(9,935)
	Other income			4,113					1,060			3,053
	Other expenses			(1,778)					(1,183)			(595)
	Operating profit			102,950		13.3			103,248	13.2		(298)	(0.3)
	Finance income			4,687					3,293			1,394
	Finance costs			(1,518)					(1,046)			(472)
	Profit before income taxes			106,119		13.7			105,495	13.5		624	0.6
	Income tax expenses			(27,048)					(30,290)			3,242
	Share of profits of investments accounted for			112					113			(1)
	using the equity method
	Profit for the period		¥	79,183		10.2		¥	75,318	9.6	¥	3,865	5.1

Profit attributable to:

Owners of the parent

Noncontrolling interests

Earnings per share attributable to owners of the parent: Basic

Diluted

• 72,922
  6,261
• 62.06

9.4 ¥

69,100

0.8 6,218

• 58.11

8.8 ¥

3,822

0.843

5.5

0.7

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Kubota Corporation

and Its Subsidiaries

(3) Condensed consolidated statement of comprehensive income

							(Unit: millions of yen)
			Three months ended	Three months ended		Change
				Mar. 31, 2024		Mar. 31, 2023
	Profit for the period		¥	79,183	¥	75,318	¥	3,865
	Other comprehensive income, net of income tax:
	Items that will not be reclassified subsequently to profit or loss:
	Remeasurement of defined benefit			(149)		(4)		(145)
	pension plans
	Net change in fair value of financial assets measured at			11,046		3,290		7,756
	fair value through other comprehensive income
	Items that may be reclassified subsequently to profit or loss:
	Exchange rate differences on translating			97,078		27,245		69,833
	foreign operations
	Total other comprehensive income, net of income tax			107,975		30,531		77,444
	Comprehensive income for the period		¥	187,158	¥	105,849	¥	81,309
	Comprehensive income attributable to:
	Owners of the parent		¥	173,613	¥	94,712	¥	78,901
	Noncontrolling interests			13,545		11,137		2,408

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