Quarterly Report for the third quarter of the 132nd business term (From July 1, 2021 to September 30, 2021) (0.7MB)

[Translation]

Quarterly Report

(The Third Quarter of the 132nd Business Term)

From July 1, 2021 to September 30, 2021

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

1. 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 ………………………………………………………………………………………………..……………………………………….. 24

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]	November 10, 2021
[Fiscal Year]	The Third Quarter of the 132nd Business Term
	(from July 1, 2021 to September 30, 2021)
[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]	Tamaki Kunimasa, 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)

	Nine months ended	Nine months ended		Year ended
	September 30, 2021	September 30, 2020	December 31, 2020
Revenue	¥	1,641,640	¥	1,356,794	¥	1,853,234
		[540,235]		[472,624]
Profit before income taxes		213,788		138,740		185,899
Profit attributable to owners of the parent		146,628		96,468		128,524
		[43,678]		[36,898]
Comprehensive income attributable to owners		203,760		56,147		96,656
of the parent
Equity attributable to owners of the parent		1,631,613		1,434,847		1,476,039
Total assets		3,492,082		3,112,264		3,189,317
Earnings per share attributable to owners of the parent:
Basic		121.38		79.31		105.85
		[36.16]		[30.46]
Diluted		―		―		―
Ratio of equity attributable to owners of the parent to total		46.7		46.1		46.3
assets (%)
Net cash provided by operating activities		47,860		68,188		142,919
Net cash used in investing activities		(88,040)		(46,796)		(47,133)
Net cash used in financing activities		(8,878)		5,633		(68,354)
Cash and cash equivalents, at the end of the period		179,285		220,466		222,919

(Notes)

1. The condensed consolidated financial statements and the consolidated financial statements are prepared in accordance with International Financial Reporting Standards.
2. As the Company prepares the condensed consolidated financial statements, its nonconsolidated financial data is not presented.
3. Revenue does not include consumption taxes.
4. Amounts less than presentation units are rounded to the nearest unit.
5. Earnings per share attributable to owners of the parent-Diluted is not stated because Kubota Corporation did not have potentially dilutive common shares that were outstanding during the period.

2. Description of Business

There were no material changes in the Company's business during the nine months ended September 30, 2021, nor were there any material changes in its associates.

Beginning with the current consolidated fiscal year, in conformity with the change in the business reporting structure of the Company, the amounts related to "Financial services businesses" are reported in the "Farm & Industrial Machinery" segment, whereas they were formerly reported in the "Other" segment.

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1. Business Overview

1. Risk Factors

For the nine months ended September 30, 2021, there are no major risks for which managements recognize that they may have a significant impact on the consolidated financial condition, business results, or cash flow information of the Company 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, 2020.

At the end of the reporting period, the Company estimates the impact of COVID-19 infection on its business is not significant. However, if the COVID-19 situation deteriorates, the Company's results of operations may be adversely affected.

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

(1) Analysis of Results of Operations

For the nine months ended September 30, 2021, revenue of Kubota Corporation and its subsidiaries (hereinafter, the "Company") increased by ¥284.8 billion [21.0%] from the same period in the prior year to ¥1,641.6 billion.

Domestic revenue increased by ¥10.3 billion [2.4%] from the same period in the prior year to ¥446.1 billion because of increased revenue in Farm & Industrial Machinery mainly due to increased sales of farm equipment, despite a decrease in revenue in Water & Environment and Other.

Overseas revenue increased by ¥274.5 billion [29.8%] from the same period in the prior year to ¥1,195.6 billion because of significantly increased sales of farm equipment and construction machinery, while revenue in Water & Environment decreased from the same period in the prior year.

Operating profit increased by ¥81.6 billion [62.8%] from the same period in the prior year to ¥211.5 billion mainly due to significantly increased revenue in the domestic and overseas markets and favorable impact of foreign exchange rates, while there were some negative effects from increased fixed costs along with an increase in production and operating activities and a rise in material prices. Profit before income taxes increased by ¥75.0 billion [54.1%] from the same period in the prior year to ¥213.8 billion due to increased operating profit. Income tax expenses were ¥55.4 billion. Share of profits of investments accounted for using the equity method was ¥2.5 billion. Profit for the period increased by ¥54.8 billion [51.7%] from the same period in the prior year to ¥160.9 billion. Profit attributable to owners of the parent increased by ¥50.2 billion [52.0%] from the same period in the prior year to ¥146.6 billion.

Revenue from external customers and operating profit by each reportable segment were as follows: Beginning with the current consolidated fiscal year, in conformity with the change in the business reporting

structure of the Company, the amounts related to "Financial services businesses" are reported in the "Farm & Industrial Machinery" segment, whereas they were formerly reported in the "Other" segment. The information for the prior period has been retrospectively adjusted to conform to the current fiscal year's presentation.

1) Farm & Industrial Machinery

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

machinery.

Revenue in this segment increased by 26.5% from the same period in the prior year to ¥1,408.0 billion and accounted for 85.8% of consolidated revenue.

Domestic revenue increased by 7.7% from the same period in the prior year to ¥238.8 billion. Sales of farm equipment and agricultural-related products increased due to a recovery from adverse reaction from rushed demand before the consumption tax hike and increased demand resulting from subsidies for business continuation of farmers.

Overseas revenue increased by 31.1% from the same period in the prior year to ¥1,169.2 billion. In North America, sales of tractors and construction machinery increased significantly due to strong demand along with trend in move to suburbs despite continued delay in production and shipment caused by port congestion and labor shortages. In Europe, sales of construction machinery, tractors, and engines increased due to continued recovery trend from sluggish sales along with the infection spread of COVID-19 in the prior year. In Asia outside Japan, sales of farm equipment in Thailand

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