To all KIMOTO fans

We would like to express our gratitude for your continued support.
At the June shareholders' meeting, we had the highest attendance of fans since our public listing.
Thank you very much.

Now, we would like to report on the first quarter of the current fiscal year.
Unfortunately, the operating profit resulted in an operating loss of 540 million yen.
The factors include a shortage of shipments due to inventory adjustments by customers in the IoT-related business and a loss from revaluation of inventory.
Although the net loss was less than the first quarter of the previous fiscal year, it still amounted to a net loss of 550 million yen.

We believe that the first quarter loss can be recovered in the second quarter, and we will proceed as planned at the beginning of the term.

This fiscal year is the second year of the fourth medium-term management plan, and we are advancing the execution of the plan as a united company.

We kindly ask for your continued support.

July 24, 2017
KIMOTO Co., Ltd.
President and Representative Director Kazunobu Kimoto