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Actions Implemented by the Kubota Group

Kubota will promote the following actions in order to realize mid- to long-term development of our business in the severe business environment.

1. Maintaining basic policies firmly

We will firmly maintain the policies that have been held up to form the basis of our business management.

(a) Business management which places priority on the work sites by being centered on technologies and manufacturing
We will continue the business management that places emphasis on improving the technology development and manufacturing capabilities, which are the core capabilities of a manufacturing business. With the rapid progress of globalization, it is crucial to strengthen the technology development and manufacturing capabilities in order to gain competitive success and realize mid- to long-term development. We will clarify the areas of technology development we need and work on the acquisition of leading-edge technologies. At the same time, through the maintenance of the organization to improve quality and production technologies, and other activities, we will work on the accumulation of manufacturing technologies and skills that overwhelm our competitors.
(b) Promoting CSR management to an even higher level
Sustainable growth and development of a corporate body is enabled by ensuring CSR management, the management which deeply considers the development of society and the conservation of the earth's environment. In the past, Kubota has implemented CSR management that focuses on the "reduction of environmental load", "expansion of diversity management", and "enhancement of internal control". From now on, while we continue working on such management, we will launch a new effort to "support the victims of the Great East Japan Earthquake and the reconstruction of the affected areas."

2. Promoting further globalization

For further growth of Kubota, about a half of whose sales is accounted for by overseas sales, "further globalization" is essential. We will promote globalization not only in sales but also in every aspect of our business, including production, R&D, business management resources, and business management control. Along with the expansion of overseas production, overseas localization of R&D, and appointment of overseas employees as executive officers, we will promote the establishment of a system to input group-wide management resources into the businesses in each country and region in a timely manner. Furthermore, to quickly cope with changes in the market of each country and region, we will work on the establishment and maintenance of business operation systems specific to each region.

3. Strengthening the commitment to long-term growth

We will promote the deployment of new businesses centering on food, water, and environmental areas to realize long-term growth. In the machinery business, we will attempt to make a foray into the market for large agricultural machinery for dry field farming in addition to the market for agricultural machinery for rice farming that we have been engaged in, in order to contribute to food production increase on a global scale as a comprehensive agricultural machinery manufacturer. In the water and environmental businesses, we will implement full-scale deployment in Asia. In the 121st period, we will start a pump business subsidiary in China, and establish the "Water and Environment General Research Institute" to meet the needs of developing countries etc. In the 122nd period, we will set up two water treatment business subsidiaries in China. Utilizing the long domestic business experience, we will develop the water and environmental businesses in Asia into our new growing businesses.

4. Actions for the Great East Japan Earthquake

Taking appropriate actions for the Great East Japan Earthquake that has caused unprecedented damage is a significant business issue. Kubota set up the "Support/Recovery Measures HQ" immediately after the occurrence of the disaster to provide various support for the affected people, and we will continue the support activities.

At the same time, we will make preparation to ensure that materials and products required for reconstruction are supplied to the affected areas. To this end, we will dedicate all our strength to the full-scale recovery of some of our manufacturing bases whose production activities have been restricted due to a shortage of parts etc.

5. Issues requiring action

Actions regarding the asbestos issue
From the standpoint of fulfilling our social responsibility as a corporate entity that for years manufactured products containing asbestos, Kubota will continue to work with good intentions towards the resolution of this problem.
[Reports on Kubota's actions]
The status of relief payments
As of March 31, 2013 relief payments have been made to 248 individuals pursuant to the internal policy of the “Relief Payment System for the Asbestos-Related Patients and the Family Members of the Deceased near the Former Kanzaki Plant.”
The status of medical supports provided for asbestos-related diseases

Kubota has provided financial support for clinical and basic research projects conducted by Hyogo College of Medicine.

Although the world economy is on a recovery trend, there are various uncertainties, and the unstable situation is continuing. In addition, the Great East Japan Earthquake has caused serious damage to Japanese economy, severely affecting the production and sales activities of companies. It is expected that there will continue to be various difficulties in the recovery of Japanese economy, and the business environment that surrounds Kubota will also continue to be severe. Nevertheless, by steadfastly promoting the efforts we mentioned, we will aim for long-term growth and development and increasing our corporate value.

We would like to sincerely ask our stockholders for continued support for our businesses.

Related Information

Kubota's research and development values thorough hands-on approach. As an agricultural and water expert, we challenge and attain the future of food, water, and the environment, realizing our customer’s needs.

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