Mid-Term Business Plan

• Corporate social responsibility has become heavier and heavier due to changes in society surrounding companies.
• Kubota needs to establish a new business model which enables sustainable growth 10 years later taking into account social issues and megatrends (realization of GMB2030).
• Kubota needs to take advantage of opportunities to expand existing businesses and promote to establish the foundation for further growth.
• Profit margin has a tendency to decline due to intensifying competition and upfront investment.
• As businesses become more globalized, a management control system is no longer in line with current business.

1. Promotion of ESG management
2. Establishment of the foundation for realizing GMB2030 that supports the next generation
3. Expansion of revenue in existing businesses
4. Improvement of profit margin
5. Development of infrastructure that supports sustainable growth

In addition to these main themes, we will promote digital transformation (DX) across all themes and proceed with specific efforts toward achieving the Mid-Term Business Plan 2025.

• Outline of Mid-Term Business Plan 2025

  

Kubota will promote ESG management using the company’s own approach to advance initiatives that are more ESG aware than ever.
As a company that engages in reducing environmental impacts and solving social issues through business, ESG Management Strategy Meeting and ESG Promotion Department are established under the direct control of the President in order to promote its own unique ESG initiatives (K-ESG) in addition to general initiatives. ESG Management Strategy Meeting is positioned as the institution that determines the Group’s important business management policies, and ESG will be recognized as the basis for decision-making on future business development.
We will also add stakeholder contribution as a perspective to the S (Society) of ESG, and provide all stakeholders with opportunities to contribute to solving social issues through gaining empathy with and participation in Kubota’s business.

Establishment of a Structure from Selection of Themes to Commercialization
The ESG Management Strategy Meeting oversees the selection of development themes, R&D organizational structure and role sharing, as well as business incubation in order to realize GMB2030 as important matters for the future.

Initiatives of R&D and Commercialization
Aiming to secure multiple business models, products, services, and market candidates that become the growth drivers in the next generation by 2025

Status-analysis and Basis Strategies

Analyze the current situation, and then deepen our existing businesses.

Setting and Promoting Growth Drivers

The following businesses are positioned as growth drivers for the next five years.

North America/Construction Machinery Business
Aiming for a significant increase in market share by expanding product lineup and locally integrated operations of development, production, and sales

ASEAN/Farm & Industrial Machinery Business
Aiming for a further increase in sales of farm equipment and construction machinery along with urbanization

Farm & Industrial Machinery/After-market Business
Aiming to expand "after-sales business" by utilizing abundant operating machineries on a global level

Water & Environment/Solution Business
Aiming to shift from equipment sales-oriented business to O&M- and solution-oriented business by utilizing IoT and other technologies

Machinery/Expansion of India Machinery Business and Entry into the Basic Market
Aiming to expand global business by increasing market share in tractor, the world's largest market, and exporting basic machinery

Sustainable growth requires proactive resource investment, as well as investments to prepare for various risks such as disasters, improvements to the working environment and other purposes in the ESG field. We will address measures as described below to generate investment resources without causing profit margins to decline.

Reform of a Business Operation Structure
Transforming operation structure in response to globalization

Initiatives to Secure and Strengthen Human Resources
Strengthening human resources who support sustainable growth by strengthening recruitment and cultivation, as well as providing opportunities

Strengthening Risk Management
Developing and expanding organization that can develop countermeasures more actively in response to various risks

Bringing about innovation in “products, services, and production sites”, “business processes”, and “communications and collaborations” by developing and utilizing a platform that is the foundation for DX, and ensuring the promotion of the five main themes