FOR IMMEDIATE RELEASE

November 5, 2021

Contact: IR Section

Corporate Planning and Control Dept.

2-47, Shikitsuhigashi 1-chome,

Naniwa-ku, Osaka 556-8601, Japan

Phone: +81-6-6648-2645

RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 [IFRS]

Kubota Corporation hereby reports its consolidated results for the nine months ended September 30, 2021.

Consolidated Financial Highlights

1. Consolidated results of operations for the nine months ended September 30, 2021

(1) Results of operations

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

Nine months ended

Change

Nine months ended

Change

Sept. 30, 2021

[%]

Sept. 30, 2020

[%]

Revenue

¥ 1,641,640

21.0

¥ 1,356,794

(7.1)

Operating profit

¥ 211,503

62.8

¥ 129,887

(21.8)

Profit before income taxes

¥ 213,788

54.1

¥ 138,740

(19.0)

Profit for the period

¥ 160,917

51.7

¥ 106,104

(18.6)

Profit attributable to owners of the parent

¥ 146,628

52.0

¥ 96,468

(21.2)

Comprehensive income for the period

¥ 215,190

261.9

¥ 59,461

(49.3)

Earnings per share attributable to owners of the parent:

Basic

¥ 121.38

¥ 79.31

Diluted

-

-

(2) Financial condition

(Unit: millions of yen)

Sept. 30, 2021

Dec. 31, 2020

Total assets

¥ 3,492,082

¥ 3,189,317

Total equity

¥ 1,734,556

¥ 1,574,185

Equity attributable to owners of the parent

¥ 1,631,613

¥ 1,476,039

Ratio of equity attributable to owners of the parent

to total assets

46.7%

46.3%

Note:

Change [%] represents the percentage change from the same period in the prior year.

2. Cash dividends

(Unit: yen)

Cash dividends per common share

Interim

Year-end

Total

Year ending Dec. 31, 2021

¥ 21.00

¥ 21.00

¥ 42.00

(forecast)

(forecast)

Year ended Dec. 31, 2020

¥ 17.00

¥ 19.00

¥ 36.00

-1-

Kubota Corporation

and Its Subsidiaries

3. Forecasts of operations for the year ending December 31, 2021

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

Year ending

Change

Dec. 31, 2021

[%]

Revenue

¥ 2,150,000

16.0

Operating profit

¥ 260,000

48.3

Profit before income taxes

¥ 263,000

41.5

Profit attributable to owners of the parent

¥ 183,000

42.4

Earnings per share attributable to owners of the parent - Basic

¥ 151.49

Notes:

  1. Change [%] represents the percentage change from the same period in the prior year.
  2. Please refer to the accompanying materials, "1. Review of operations and financial condition (3) Forecasts for the year ending December 31, 2021" on page 6 for further information related to the forecasts of operations.

4. Other information

  1. Changes in significant subsidiaries during the nine months ended September 30, 2021 (changes in specified subsidiaries resulting in the changes in scope of consolidation): None
  2. Changes in accounting policies and changes in accounting estimates
    1. Changes in accounting policies required by IFRS: None
    2. Changes in accounting policies due to reasons other than a) above: None
    3. Changes in accounting estimates: None
  3. Number of common shares issued

a) Number of common shares issued including treasury shares as of September 30, 2021

:

1,208,576,846

Number of common shares issued including treasury shares as of December 31, 2020

:

1,208,576,846

b) Number of treasury shares as of September 30, 2021

:

533,677

Number of treasury shares as of December 31, 2020

:

643,937

  1. Weighted-averagenumber of common shares outstanding during the nine months ended September 30, 2021 : 1,207,963,253
    Weighted-average number of common shares outstanding during the nine months ended September 30, 2020 : 1,216,264,726

(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 November 5, 2021. The supplementary material will be published on the Company's website on the same day.

< Cautionary statements with respect to forward-looking statements >

This document may contain forward-looking statements that are based on management's expectations, estimates, projections, and assumptions. 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.

-2-

Kubota Corporation

and Its Subsidiaries

Index to accompanying materials

1. Review of operations and financial condition …………………………………………………………………………………………

4

(1)

Summary of the results of operations for the nine-month period ……………………………………………………

4

(2)

Financial condition ……………………………………………………………………………………………………………………......

5

(3)

Forecasts for the year ending December 31, 2021 …………………………………………………………………………

6

2. Other information ……………………………………………………………………………………………………………………............... 6

(1)

Changes in significant subsidiaries ……………………………………………………………………………………………………

6

(2)

Changes in accounting policies …………………………………………………………………………………………………………

6

3. Condensed consolidated financial statements …………………………………………………………………………………………

7

(1)

Condensed consolidated statement of financial position …………………………………………………………………

7

(2)

Condensed consolidated statement of profit or loss ………………………………………………………………………

9

(3)

Condensed consolidated statement of comprehensive income ………………………………………………………

10

(4)

Condensed consolidated statement of changes in equity ………………………………………………………………

11

(5)

Condensed consolidated statement of cash flows ……………………………………………………………………………

12

(6)

Notes to the going concern assumption …………………………………………………………………………………………

12

(7)

Consolidated segment information …………………………………………………………………………………………………

13

(8)

Consolidated revenue by product group …………………………………………………………………………………………

14

4. Results of operations for the three months ended September 30, 2021 …………………………………………………

15

(1)

Condensed consolidated statement of profit or loss ………………………………………………………………………

15

(2)

Consolidated segment information …………………………………………………………………………………………………

16

(3)

Consolidated revenue by product group …………………………………………………………………………………………

17

-3-

Kubota Corporation

and Its Subsidiaries

1. Review of operations and financial condition

(1) Summary of the results of operations for the nine-month period

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:

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 increased significantly mainly due to favorable weather conditions. In addition, sales of farm equipment in India were strong as well. In Other areas, sales of tractors and construction machinery in Australia increased significantly due to government stimulus policies.

Operating profit in this segment increased by 57.9% from the same period in the prior year to ¥214.9 billion due to significantly increased revenue in the domestic and overseas markets, raised product price, and favorable impact of foreign exchange rates, while there were some negative effects from increased fixed costs and a rise in material prices.

-4-

Kubota Corporation

and Its Subsidiaries

2) Water & Environment

Water & Environment is comprised of pipe- and infrastructure-related products (ductile iron pipes, plastic pipes, valves for public sector, industrial castings, spiral-welded steel pipes, air-conditioning equipment, and other products) and environment-related products (environmental control plants, pumps, valves for private sector, and other products).

Revenue in this segment decreased by 4.0% from the same period in the prior year to ¥213.6 billion and accounted for 13.0% of consolidated revenue.

Domestic revenue decreased by 3.0% from the same period in the prior year to ¥187.2 billion. In pipe- and infrastructure-related products, sales of ductile iron pipes and construction business decreased mainly due to a negative effect from postponed construction along with a state of emergency. On the other hand, in environment-related products, sales of pumps increased significantly due to increased sales of drainage pump vehicles.

Overseas revenue decreased by 10.7% from the same period in the prior year to ¥26.4 billion. Mainly sales of industrial castings decreased.

Operating profit in this segment increased by 13.6% from the same period in the prior year to ¥16.9 billion mainly due to an improvement in plant construction costs.

3) Other

Other is mainly comprised of a variety of services.

Revenue in this segment decreased by 4.9% from the same period in the prior year to ¥20.1 billion and accounted for 1.2% of consolidated revenue.

Operating profit in this segment increased by 10.9% from the same period in the prior year to ¥2.3 billion.

(2) Financial condition

  1. Assets, liabilities, and equity

Total assets as of September 30, 2021, were ¥3,492.1 billion, an increase of ¥302.8 billion from the prior fiscal year-end. With respect to assets, inventories increased mainly due to increased inventories in transit along with port congestion. In addition, finance receivables increased significantly due to an expansion in sales financing operations in North America, where retail sales were strong, and an increase in the value translated into yen caused by the yen depreciation.

With respect to liabilities, bonds and borrowings denominated in foreign currencies increased due to an increase in finance receivables. 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 46.7%, 0.4 percentage points higher than the prior fiscal year-end.

  1. Cash flows

Net cash provided by operating activities during the nine months ended September 30, 2021, was ¥47.9 billion, a decrease of ¥20.3 billion in net cash inflow compared with the same period in the prior year. This decrease was due to an increase in inventories despite increased profit for the period.

Net cash used in investing activities was ¥88.0 billion, an increase of ¥41.2 billion in net cash outflow compared with the same period in the prior year. This increase was mainly due to a decrease in cash inflow related to sales of securities and an increase in cash outflow related to acquisition of property, plant, and equipment and intangible assets.

Net cash used in financing activities was ¥8.9 billion, a decrease of ¥14.5 billion in net cash inflow compared with the same period in the prior year mainly due to a decrease in funding.

As a result of the above and after taking into account the effects from exchange rate changes, cash and cash

-5-

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Kubota Corporation published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 08:52:00 UTC.