To all KIMOTO fans

On May 15, we disclosed the financial results for the fiscal year ending March 2015.
We deeply apologize once again for the two downward revisions made at the end of July 2014 and the end of January 2015 for the previous fiscal year.

Globally, sales of consumer electronics, including smartphones, record high volumes from November to December at the end of the year, with this trend being particularly strong in Europe and the United States.
Many new product specifications for the year-end sales season are decided between May and June each year. Last year, the insufficient adoption of our film products in new products during the same period led to the downward revision at the end of July 2014.

Furthermore, due to structural changes in smartphones, the usage of the film previously used was halved, leading to another downward revision at the end of January 2015.

Currently, the adoption of our film products in electrical products, including smartphones, for this year's year-end sales season is steadily increasing. Our development, manufacturing, sales, and management teams are working together to continue efforts towards potential adoption projects.

As a bright spot
1) Multiple products that meet market needs have emerged in FPD-5 (five flat panel-related products), recovering from sales losses.
2) Business items other than FPD-5 are finally being commercialized and sales are starting in earnest.
3) In terms of management, we have become debt-free in the current fiscal year, with cash and deposits tripling compared to seven years ago, and we have zero real estate assets held for purposes other than manufacturing and development that are below book value.

We are still an immature company, but we believe we have ample room for growth.
We apologize for any concerns caused and kindly ask for your continued support as fans of KIMOTO.

May 18, 2015
KIMOTO Co., Ltd.
President and Representative Director Kazunobu Kimoto