New Year's Thoughts (Summary) By Yasuo Masumoto, Representative Director, Chairman, President & CEO ～ Year of Speeding Up and Boldly Tackling Challenges ～

The global environment surrounding the Kubota Group is rapidly changing into a more complicated and adverse one due to the debt crisis in Europe, unprecedented strength of the yen, and other factors. The effect of the global environment on the Kubota Group is enormous as its revenue from overseas accounts for more than half of its total revenue. We need to improve our ability to respond quickly to the global market and management environment that are changing rapidly. Let us ascertain what we must change and what we should change, and speed up the reform.

As one means of further globalization, we established a control office in China (Kubota China Holdings, Co.) last year. It must control subsidiaries and affiliates in China, a country whose economy has grown and overtaken that of Japan's to become the second largest in the world, and effectively have others cooperate as group companies.
For localization of business, we decided to manufacture compact tractors in the US, and to acquire a European company with the expectation that this acquisition will be an important milestone in establishing a significant presence in the agricultural machinery market for dry fields.
We are now reforming the personnel management system so that it corresponds with the global business environment. And we have the Research & Development Strategy Committee, where heated discussions take place by the participants including young employees who will lead the next generation.
We will continue creating an environment where motivated employees can perform their best. Let us boldly tackle challenges and aim for the growth of the Kubota Group.

Recovery from the Great East Japan Earthquake and Thai floods is now at the level of reconstruction. It is crucial for the Kubota Group to grasp what is needed in the affected areas and cooperate beyond divisions and departments so as to solve problems, especially ones that are related to our business fields.
Having strong faith in society and reaffirming the social meaning and value of the Kubota Group, let us unite to help solve problems in the areas of food, water, and the environment.

The keyword that is common to all the points above is "Speeding up." Although the business environment has many uncertain elements, we will miss chances if we wait till they are assured. Let us continue to have strong faith in ourselves. I expect every employee of the Kubota Group to tackle challenges to achieve our goals promptly.