To all KIMOTO fans

On July 31, we reported on the performance for the first quarter. Unfortunately, compared to the same period last year, both revenue and profit decreased. We apologize for causing great concern to everyone.

Sales remained almost flat, but a recovery is expected in the future.
There are two main reasons for the decrease in profit. One is the increase in manufacturing costs due to the low yield of the new product (hard coat film). This has been improved and resolved at this point. The other is that the loss amount from revaluation of inventory exceeded the expected amount, but this is a one-time loss.

This term, we expect to struggle until summer due to the impact of the previous term's poor performance, but we have budgeted for a recovery from autumn onwards. Fortunately, signs of recovery have definitely appeared, so we have not changed our performance forecasts for the half-year and full-year.

There are various concerns such as the slowdown in the smartphone market, instability in the Shanghai stock market in China, and the Greek economy, but KIMOTO employees around the world are working hard towards performance recovery.
We kindly ask for the continued warm support of all KIMOTO fans.

Thank you very much.

August 3, 2015
KIMOTO Co., Ltd.
President and Representative Director Kazunobu Kimoto