Sakata Seed : (Disclosure Update) Notice Concerning Flooding in Brazil（90.6KB）

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.

	June 18, 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 current update of "Notice Concerning Flooding in Brazil" disclosed on May 31, 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, have been inundated. After that, as the weather improved and the water level receded, we began cleaning activities inside the office and the warehouse, carrying out inventories and checking machinery. We have completed the removal of important seeds regarding inventories and are conducting quality checks on them sequentially. The packaged seeds and those stored in the upper areas of the warehouse have not been significantly affected in appearance, but we will determine their salability after the quality checks. Many machines, especially the packaging equipment, have been damaged. We are expediting the order for a new machine originally scheduled for late 2024 and are also ordering necessary repair parts. However, we anticipate that it will take a significant amount of time to complete the installation and repair of these machines. The power outage was fully resolved by June 17th.

Sakata Seed Sudamerica Ltda., the Company's consolidated subsidiary headquartered in Bragança Paulista, SP, Brazil and the parent company of Isla, serving as the regional headquarters for South America, has not been affected by the floods.

2. Impact on the Company's Consolidated Financial Results

We are still assessing the financial damage caused by the floods and its impact on the Company's consolidated results. If a significant impact is identified, we will promptly announce it.

3. Future Outlook

We are negotiating with our other group companies and other companies in the same industry in Brazil to receive support for packaging work and securing sales inventory. We plan to resume

business activities as soon as we secure the inventory to be sold, but this has not yet been determined as of today.