To all KIMOTO fans

We have announced the performance for the first half of the fiscal year and the full-year performance forecast.
Unfortunately, we ended the first half with performance below the initial forecast and revised the full-year forecast downward.
We deeply apologize for causing concern to everyone.

The main factors are as follows:
Regarding the budget, the sales budget forecasts for each business were optimistic, and compared to the previous year's results, the major factor was the loss of orders for IoT-related products (especially in Japan).

The replacement of sales products, which we have been promoting since the previous fiscal year to improve profitability, did not progress, and we were unable to acquire new business to match the amount of lost orders. We apologize once again.

The reason why ordinary profit and profit before tax exceeded operating profit is that ordinary profit includes foreign exchange gains, and profit before tax includes gains from the liquidation of our local subsidiary in Shanghai.

Regarding the forecast for the second half, we are implementing recovery measures as a united company, but we have formulated it considering the usual slowdown in performance during the winter season.

We will actively promote business development to recover operating profit, which is the profit from our core business.
We are a company with many shortcomings, but we humbly ask for your support and guidance.

October 30, 2018
KIMOTO Co., Ltd.
President and Representative Director Kazunobu Kimoto