Sakata Seed : (Disclosure Update) Notice Concerning Flooding in Brazil（50.3KB）

Translation

Notice: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

	July 12, 2024
Company name:	SAKATA SEED CORPORATION
Name of Representative: Hiroshi Sakata
	President and Representative Director
	(Securities code:1377, TSE Prime Market)
Inquiries:	Takenori Hoshi
	Senior Executive Officer

Senior General Manager of General Administration Div.

General Manager of Finance Dept. (Telephone: [phone])

(Disclosure Update) Notice Concerning Flooding in Brazil

SAKATA SEED CORPORATION (the "Company") hereby announces the latest update regarding "Notice Concerning Flooding in Brazil" disclosed on May 31, 2024, and June 18, 2024.

1. Overview of the Damage

Due to the large-scale flooding in the state of Rio Grande do Sul in Brazil, the office and warehouse of Isla Sementes Ltda ("Isla"), one of our subsidiaries in Brazil, located in the city of Porto Alegre, have been inundated. The restoration work was begun in June when the water level inside the office receded.

As for inventory, thanks to proper storage conditions, the damage was not as severe as anticipated, and the results of quality tests generally meet our quality level. Although all the tests will still take time, the condition of the inventory is better than initially expected. As for the packing machines, we found that several machines require repairs after cleaning and performing operational checks.

2. Impact on the Company's Consolidated Financial Results

While the exact amount of the damage has not been determined, we estimate approximately 700 million yen for inventory disposal loss, machinery disposal loss, recovery costs, and fixed costs during the non-operational period.

The Company estimates that the Isla's sales for the current fiscal year will decline by 1.2 billion yen compared to the budget, due to business suspension and a lack of salable items.

Working capital is supplied by Sakata Seed Sudamerica, Ltda., one of the Company's subsidiaries and the regional headquarters for South America.

3. Future Outlook

Since power supply was restored on June 17th, Isla has restarted sales activities through branch offices as well as via telephone and the internet. However, due to the disposal of inventory

for many crops and incomplete recovery of packing activities, Isla's salable inventory is limited. The Company estimates that it will take approximately one year for a full range of products for sales.