Notice Regarding Establishment of New Company and Absorption-Type Company Split / Joint Venture

Overview of the Organizational Restructuring

The key points are explained regarding the establishment of Nichu Tech Co., Ltd. and the absorption-type company split under which Nippon Chutetsukan K.K. will transfer its ductile iron pipe (straight pipe) manufacturing business to the new company. Nippon Chutetsukan K.K. was the 100% investor in the new company prior to this transaction; after the capital allocation it will hold 80.1% and Kubota will hold 19.9%. The board of directors of the new company is planned to include four directors from Nippon Chutetsukan K.K. and one director from Kubota, and each party will appoint one statutory auditor.

Start of the Joint Venture and Outlook

The new company will be responsible for manufacturing ductile iron pipes and will collaborate with Kubota to improve productivity and profitability. It will also work on carbon neutrality measures including reducing CO2 emissions. Financial outlook for the joint venture is TBD, but profit improvement is expected through integration of both companies' facilities. Establishment, investment and commencement of the new joint venture are scheduled for January 4, 2027.