Research and development

Focus on regions, products, and growth markets, which are our strength
Product and development strategy under the Mid-term Management Plan (product development theme)
Social changes and issues
Increase in size of farm business
Diversification to field crops andvegetables
Leasing of agricultural machinery

Acceleration of smart agriculture
Needs for low-priced products
Creation of a decarbonizedsociety

Stable food production and supply
Expansion of demand for landscaping
Improved productivity

Expansion of agriculture in the ASEAN
and East Asian regions
Lifestyle change

Domestic strategy <Response to large-scale farming>

Overseas strategy <Response to brand expansion>

Strengthening of large to medium size, low price, smart agricultural
machinery and products for field crops and vegetable farming
Response to changes in agricultural style (contractor leasing)

Strengthening of products for European and North American markets,
which are our strength
Strengthening of products for ASEAN
Penetration of brand in China and East Asia

Common strategy <Safety and environmental responses/Frontrunner development>
Promotion of environmentally-friendly design
Measures to prevent farming accidents

Electrification and hydrogen useAutomation, robotics, use of agricultural
ICT data, etc.

Research and development system
We have built a research and development systemthat displays collective power through collaboration
among the planning, development, production, andsales departments, and determine the direction for theproduct strategy and research and development basedon the market needs and market trends, and engage in
speedy research and development. The Development &Production Division has strengthened the system related
to the latest technologies and increased the number ofpersonnel in the Green Innovation Promotion Section, toaddress environmental issues including decarbonizationand smart agriculture. We are making up for any lacking
technologies and human resources through humanresources development and internal collaboration. We
are also committed to educating engineers to promoteresearch and development of electrification andagricultural machinery using hydrogen, automation, androbotics at IETC, a specialized educational institution for
design technologies.

Enhancement of emission regulations-compliant engines
produced in-house| Research and development system
Advanced Technology Strategic Committee

on and information shari
perating
Coo
Educationalsystems
IETC
ITTC
IGTC

Planning
departments

Agriculturalpolicy trends

Sales
departments

Discussion
Newtechnology

Market needs

Needs ofregions andcustomers

Jointresearch
Empiricalresearch

Sales subsidiaries
Suppliers

Testing research
institutions
Universities
Corporations

Developmentand production
departments

Expand research and development investment in priority strategic fields
Establish
development themesthat match sales
strategies

We focus on product development incorporating new technologies such as automatic control and robot technologies as development
themes for food security, field crops, and environmental responses.
(Examples of development themes) Japan ——— Smart agricultural machinery
Data use
Overseas — Electrification products for Europe
Products to promote mechanization of agriculture in India and Asia

Forward-looking
development

We aim to create successful products by setting forward-looking research themes, partnering with Japanese and overseas
corporations, universities, and public institutions, and utilizing open innovation. Using technologies cultivated throughelectrification products and research, we will launch electrification products for professional use in the European landscaping
market in response to environmental issues.

Investments inresearch anddevelopment

We are improving development productivity by allocating research and development man-hours to priority strategic fields. To thatend, we are developing internal specialized human resources and expanding career recruitment. In addition, we will optimize theupstream development process for improved productivity and optimal placement of personnel.