This is the English translation of the original Japanese-language Business Results of KITO CORPORATION (the Company)
for the fiscal year ended March 31, 2022 and is provided for reference purposes only. Readers are advised that theCompany does not guarantee the accuracy of the content contained in this report. In the event of any discrepancy between
this translation and the Japanese original, the Japanese original shall prevail.

Business Results for the Fiscal Year Ended March 31, 2022
[Japan GAAP] (Consolidated)
May 16, 2022
Company
Stock Code
Representative
Contact

KITO CORPORATION
Listed on the TSE Prime Market
6409
URL: https://kito.com/
Yoshio Kito, President & CEO
Shigeki Osozawa
Managing Director, GM, Corporate Financial Management Div. TEL: +81-3-5908-0161
Expected date of Annual General Meeting of shareholders:June 24, 2022
Expected date of filing of annual securities report:
June 22, 2022
Expected starting date of dividend payment:
June 27, 2022
Preparation of supplementary financial document:
Yes
Briefing session to explain the financial statements:
Yes (For institutional investors and securities analysts)(Rounded down to the nearest million yen)
1. Consolidated business results for the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated results of operations(% change from the previous fiscal year)
Net sales

FY ended Mar. 2022
FY ended Mar. 2021
(Note) Comprehensive income

Million yen
62,50651,805

Operating income

Ordinary income%
Million yen%
Million yen
%
20.7
6,184
38.7
6,415
41.0
(11.8)
4,457(18.6)
4,550(8.8)
Fiscal year ended Mar. 2022: 7,298 million yen
105.2%
Fiscal year ended Mar. 2021: 3,556 million yen
59.4%

Net income
per share

Diluted net
income per share

Return on
equityYen
Yen
FY ended Mar. 2022
221.97221.49FY ended Mar. 2021
114.29114.16(Reference) Equity in earnings of affiliates:
Fiscal year ended Mar. 2022:
Fiscal year ended Mar. 2021:

%
14.0
8.3
― million yen― million yen

Net income attributableto owners of parent
Million yen
%
4,563
94.7
2,344
(26.8)

Ratio of ordinary
income to total
assets
%9.3
7.1

Ratio of operating
income to net
sales
%
9.9
8.6

(2) Consolidated financial position
Total assets

Shareholders’equity ratio

Net assets

Million yen
Million yen
72,49037,04765,06730,567
As of Mar. 2022: 35,869 million yen
As of Mar. 2021: 29,537 million yen

As of Mar. 2022
As of Mar. 2021
(Reference) Shareholders’ equity

Net assets
per share

%
49.5
45.4

Yen
1,743.09
1,439.48(3) Consolidated results of cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
7,825
6,662

FY ended Mar. 2022
FY ended Mar. 2021

Cash flows fromfinancing activities

Million yen(4,552)(2,300)Million yen(6,183)(82)

Cash and cash
equivalents at the endof period
Million yen
11,26913,725

2. Dividends
Annual dividend

FY ended Mar. 2021
FY ended Mar. 2022
FY ending Mar. 2023
(Forecast)End of
1Q
Yen――

End of
2Q
Yen
12.00
22.00

End of
3Q
Yen
―
―

―

0.00

―

Year-end

Annual

Yen
18.00
22.00

Yen
30.00
44.00

0.00

―

Total
Million yen
615
905

Rate of total
Dividend
dividend to net
payout ratio
assets(Consolidated)
%
%
26.2
2.2
19.8
2.8
0

3. Forecast of consolidated business results for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

Net sales

Operating income

Million yen%

32,50070,000For the six months
ending Sept. 30, 2022
FY ending Mar. 2023(% change from the previous corresponding period)
Net income
Net
Ordinary income attributable to owners
incomeof parent
per share
Yen%
Million yen%
Yen

Million yen

%

14.9

1,900

(22.7)

1,800(25.4)

1,200(28.5)

58.31

12.0

6,500

5.1

6,400

(0.2)

4,200

(8.0)

204.10* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in the scope of
consolidation): None
(2) Changes in accounting policies, accounting estimates, and restatements
Changes in accounting policies due to revisions of accounting standards: Yes
Changes in accounting policies other than above: None
Changes of accounting estimates: None
Restatements: None
(3) Number of shares issued (common stock)
Number of shares issued at the end of period (treasury stock included)
As of Mar. 2022: 21,048,200 shares
As of Mar. 2021: 21,048,200 shares
Number of treasury shares at the end of period
As of Mar. 2022: 470,181 shares
As of Mar. 2021: 528,427 shares
Average number of shares over the period
Fiscal 2021 (ended Mar. 31, 2022): 20,557,370 sharesFiscal 2020 (ended Mar. 31, 2021): 20,509,115 shares(Reference) Summary of non-consolidated business results
Non-consolidated business results for the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Non-consolidated results of operations(% change from the previous fiscal year)
Net sales
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
FY ended Mar. 2022
27,097
25.8
3,369
56.2
4,320
36.2
3,134
27.4
FY ended Mar. 2021
21,534(19.4)
2,157(28.8)
3,172(10.8)
2,460(5.2)
Net income
per shareYen
152.48119.97

FY ended Mar. 2022
FY ended Mar. 2021

Diluted net
income per shareYen
152.15119.83(2) Non-consolidated financial position
Shareholders’ equity
ratio
Million yen
Million yen%
46,796
22,83948.7
47,68020,361
42.6
As of Mar. 2022: 22,782 million yen
As of Mar. 2021: 20,297 million yen

Total assets
As of Mar. 2022
As of Mar. 2021
(Reference) Shareholders’ equity:

Net assets

Net assets per share
Yen
1,107.11
989.18* This financial summary is not subject to auditing by certified public accountants or audit firms.
* Explanation regarding the appropriate use of business forecasts and other special instructions(Notes to the forward-looking statements)
The performance forecasts and other forward-looking statements presented in this report are based on information currently
available and certain assumptions deemed reasonable and are not to be read as guarantees of future performance by the Company.
Actual performance, etc., may differ substantially due to various factors. For preconditions of the assumptions and special
instructions regarding the appropriate use of business forecasts, please refer to “(4) Future outlook, 1. Overview of business results”
on page 4 of the appendix.

Contents of Attached Materials
1. Overview of business results

P. 2(1) Overview of business results for the subject period

P. 2(2) Overview of financial position for the subject period

P. 3(3) Overview of cash flows for the subject period

P. 3(4) Future outlook

P. 4

2. Basic approach toward the selection of accounting standards

P. 4

3. Consolidated financial statements and major notes

P. 5(1) Consolidated balance sheets

P. 5(2) Consolidated statements of income/Consolidated statements of comprehensive income

P. 7

Consolidated statements of income

P. 7

Consolidated statements of comprehensive income

P. 8(3) Consolidated statements of changes in net assets

P. 9(4) Consolidated statements of cash flows

P. 11(5) Notes to consolidated financial statements

P. 13(Notes regarding ongoing concern assumption)

P. 13(Changes in accounting policies)

P. 13(Segment information)

P. 14(Per share information)

P. 17(Important subsequent events)

P. 17

- 1 -

1. Overview of business results(1) Overview of business results for the subject period
During fiscal 2021 (ended March 31, 2022), despite intermittent constraints on economic activity in certain countries and regions
as a result of the coronavirus pandemic, overall demand recovered sharply centered on Western countries, while the Japanesemarket continued to recover at a moderate pace. At the same time, the rapid recovery in demand led to congestion in freighttransportation, as well as a sharp increase in costs for natural resources, energy, raw materials, parts and other components. In
addition, towards the end of the period, the conflict between Ukraine and Russia had a major impact on the global economy.
Under such conditions, Kito Group continued to increase production capacity in order to capture the firm demand in the North
American and European regions, and focused on maintaining stable customer service by securing its supply chain, including
material suppliers and transportation routes.
As a result, both revenue and earnings increased significantly from the previous fiscal year. Net sales amounted to ¥62,506
million (up 20.7% year on year), with operating income of ¥6,184 million (up 38.7%), ordinary income of ¥6,415 million (up41.0%), and net income attributable to owners of parent of ¥4,563 million (up 94.7%). Net sales, ordinary income, and net
income attributable to owners of the parent reached record highs.
Results by segment are as follows. The Kito Group’s business activities are classified by geographical segment for the Company
and its consolidated group companies.
Net Sales
YoY change in %Segment

Operating Income (Loss)YoY change in %Japan

27,097 million yen, up 25.8%

5,777 million yen, up 33.9%

The Americas

31,333 million yen, up 30.5%

2,396 million yen, up 107.0%

China

8,514 million yen, up 19.9%

1,168 million yen, up 12.0%

Asia

3,178 million yen, up 8.3%

334 million yen, up 60.9%

Europe5,956 million yen, up 33.5%

Others1,738 million yen, up 15.5%(430) million yen(368 million yen of operating loss for the previous FY)
25 million yen(35 million yen of operating loss for the previous FY)

Japan:
Despite the state of emergency and other prolonged constraints in Japan, demand recovered moderately. Exports continued toincrease on growing demand in North America, Europe, and other overseas markets. As a result, net sales amounted to¥27,097 million (up 25.8% year on year), with operating income of ¥5,777 million (up 33.9%).
The Americas:
Demand in the U.S. rose steadily on expectations for expanded infrastructure investment from government policy measures,along with investment among private companies that exceeded initial assumptions. As a result, both revenue and earnings rose
sharply to record highs, with net sales amounting to ¥31,333 million (up 30.5% year on year), and operating income reaching¥2,396 million (up 107.0%).
China:The Chinese market recovered relatively quickly compared to other markets, and demand remained firm during the subject
period. Net sales amounted to ¥8,514 million (up 19.9% year on year), with operating income of ¥1,168 million (up 12.0%). Of
note, the fiscal year for this segment starts in January, so the results for the subject period are from January through December.
Asia (excluding Japan and China):
Demand recovered moderately along with the easing of constraints on economic activities in Asian countries. Net sales
amounted to ¥3,178 million (up 8.3% year on year), with operating income of ¥334 million (up 60.9%).

- 2 -Europe:Economic activity in Europe gained momentum from the start of the period, and demand improved significantly. Net sales rose
sharply, amounting to ¥5,956 million (up 33.5% year on year). In terms of earnings, the impact from the increase in material andenergy costs, which accelerated during the period, resulted in the segment posting an operating loss of ¥430 million for the
subject period.
Others:This segment currently comprises business in Australia only. Net sales amounted to ¥1,738 million (up 15.5% from the previous
fiscal year), with an operating income of ¥25 million.
(2) Overview of financial position for the subject period
Assets:Total assets at the end of fiscal 2021 amounted to ¥72,490 million, an increase of ¥7,422 million compared to the end of theprevious fiscal year. The main factors were a ¥2,915 million increase in merchandise and finished goods; a ¥2,465 decrease in
cash and deposits; a ¥1,617 million increase in accounts receivable—trade (included in notes and accounts receivable—trade at
the end of the previous fiscal year); a ¥1,284 million increase in buildings and structures (net); and a ¥1,006 million increase inconstruction in progress.
Liabilities:
Total liabilities amounted to ¥35,442 million, an increase of ¥942 million compared to the end of the previous fiscal year. The
main factors were a ¥6,611 million decrease in short-term loans payable; a ¥2,543 million increase in long-term loans payable; a¥2,499 million increase in notes and accounts payable—trade; and a ¥1,349 million increase in other current liabilities.
Net assets:
Total net assets amounted to ¥37,047 million, an increase of ¥6,479 million compared to the end of the previous fiscal year. The
main factors were a ¥3,741 million increase in retained earnings; and a ¥2,398 million increase in foreign currency translation
adjustment.
(3) Overview of cash flows for the subject period
Cash and cash equivalents at the end of the subject period amounted to ¥11,269 million, a decrease of ¥2,455 million comparedto the end of the previous fiscal year.
Cash flows from operating activities:
Net cash provided by operating activities amounted to ¥7,825 million, an increase in inflow of ¥1,162 million compared to theprevious fiscal year. The main factors were ¥6,275 million in income before income taxes; a ¥2,832 million increase ininventories; and ¥2,647 million in depreciation and amortization.
Cash flows from investing activities:
Net cash used in investing activities amounted to ¥4,552 million, an increase in outflow of 2,252 million compared to theprevious fiscal year. The main factors were ¥4,166 million in payments for acquisition of property and equipment; and ¥357
million in payments for acquisition of intangible assets.
Cash flows from financing activities:
Net cash used in financing activities amounted to ¥6,183 million, an increase in outflow of ¥6,100 million compared to theprevious fiscal year. The main factors were ¥12,692 million in repayments of short-term loans payable; ¥6,822 million inproceeds from long-term loans payable; ¥6,004 million in proceeds from short-term loans payable; and ¥4,959 million in
repayments of long-term loans payable.

- 3 -(4) Future outlook
Looking at the current external environment, the international situation in Europe and elsewhere is increasingly uncertain. The
appreciation in material costs and raw material costs stemming from the rapid recovery in economic activity following thecoronavirus pandemic, and constraints on supply chains such as logistics disruptions, is also expected to continue. At the sametime, demand in the North American and European markets remains firm, while in the Japanese market, where recovery has
been relatively moderate, orders to meet capital investment plans are steadily increasing. Asian markets are also showing signsof a turnaround. In addition, government policy measures around the world are expected to continue to drive infrastructure
demand. Kito Group will continue to invest in manufacturing equipment for its production facilities in order to firmly capture allthis widespread demand.

Under such conditions, for fiscal 2022 (ending March 31, 2023), the Company expects to post record highs for both revenue andoperating income, and is forecasting net sales of ¥70,000 million, with operating income of ¥6,500 million, ordinary income of¥6,400 million, and net income attributable to owners of parent of ¥4,200 million. Of note, the foreign currency exchange rate
assumption for these forecasts is US$1=¥120.0.

Earnings forecasts were compiled based on information available at the time of publication. Actual results may vary from theforecast figures due to variety of factors, including the future spread of the COVID-19 virus, and the circumstances surroundinga return to normal conditions.
2. Basic approach toward the selection of accounting standards
The consolidated financial statements of the Company are prepared by the Kito Group based on the Ordinance on Terminology,
Forms, and Preparation Methods of Consolidated Financial Statements (excluding Chapter VII & Chapter VIII, Ordinance of the
Ministry of Finance No. 28 in 1976). This step is taken to facilitate the comparison between companies and periods.
The Company maintains the policy of adopting International Financial Reporting Standards (IFRS) after taking into considerationa variety of factors and conditions in Japan and overseas.

- 4 -3. Consolidated financial statements and major notes(1) Consolidated balance sheets(Million yen)
As of March 31, 2021

As of March 31, 2022

13,734
11,369――12,905
1,254
3,181
1,367
(78)
43,735

11,269―1,630
11,41015,820
1,866
3,824
1,774
(147)
47,45011,678(7,082)
4,595
20,341(16,136)
4,205
1,469
983
8,187
(6,812)
1,374
12,62813,488(7,608)5,880
22,013(17,527)
4,486
1,535
1,989
8,971
(7,142)
1,828
15,721

1,195
3,807
5,003

818
3,920
4,738

1,287
1,465
948
3,701
21,33265,067

1,327
1,868
1,383
4,580
25,03972,490AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Notes receivable—trade
Accounts receivable—trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OthersAllowance for doubtful receivables
Total current assets
Fixed assets
Property and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment, and vehicles
Accumulated depreciation
Machinery, equipment, and vehicles (net)Land
Construction in progress
Others
Accumulated depreciation
Others (net)Total property and equipment
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OthersTotal investments and other assets
Total fixed assets
Total assets- 5 -(Million yen)

Liabilities
Current liabilities
Notes and accounts payable—trade
Provision for product warranties
Provision for bonuses for employees
Provision for sales returns
Provision for business restructuring
Income taxes payable
Short-term loans payable
Current portion of long-term loans payable within one year
OthersTotal current liabilities
Long-term liabilities
Long-term loans payable
Net defined benefit liabilities
Deferred tax liabilities
OthersTotal long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on other available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -As of March 31, 2021

As of March 31, 2022

5,028
91
844
401
85
271
7,955
4,028
4,304
23,011

7,528
61
1,041
―
―
1,380
1,343
3,899
5,653
20,908

7,894
2,184
638
771
11,48834,50010,437
2,384
728
983
14,53435,442

3,976
5,056
20,561(455)
29,1383,976
5,099
24,302(405)
32,973

0
(69)
523
(54)
399
63
966
30,56765,067

0
8
2,921
(33)
2,895
57
1,120
37,04772,490(2) Consolidated statements of income/Consolidated statements of comprehensive income
Consolidated statements of income(Million yen)
FY2020(April 1, 2020 to March 31,
2021)

FY2021(April 1, 2021 to March 31,
2022)

51,80533,081
18,724
14,266
4,457

62,506
39,77522,731
16,546
6,184

36
58
72
163
36
109
475

35
280
88
53
92
80
631

233
55
94
383
4,550

183
64
151
399
6,415

5
―
5

6
224
231

3
334
41
305
188
―
873
3,682
1,159
72
1,232
2,450
106
2,344

2
119
24
―
―
224
371
6,275
1,937
(378)
1,559
4,716
153
4,563

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
Rents received
Subsidy income
Proceeds from sales of scrap
OthersTotal non-operating income
Non-operating expenses
Interest expense
Arrangement fee
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Insurance claim income
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Impairment loss
Loss on retirement of noncurrent assets
Loss on termination of retirement benefit plan
Business restructuring expenses
Litigation settlement
Total extraordinary loss
Income before income taxes
Income taxes – current
Income taxes – deferred
Income taxes (current and deferred)
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent- 7 -Consolidated statements of comprehensive income(Million yen)
FY2020
FY2021(April 1, 2020 to March 31, (April 1, 2021 to March 31,
2021)
2022)
Net income
Other comprehensive income
Valuation difference on other available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)
Owners of parent
Non-controlling interests

- 8 -

2,450

4,716

0
22
577
506
1,106
3,556

0
77
2,487
16
2,582
7,298

3,459
97

7,059
239

(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Million yen)
Shareholders’ equity

Balance as of the beginning of theperiodCapital stock

Capital surplus

3,976

5,234

Retained earnings

Treasury stock

24,086

Total shareholders’equity(5,678)27,618Changes during the period
Dividends from surplus(737)

Net income attributable to ownersof parent

2,344

(737)
2,344

Purchase of treasury stock
Disposal of treasury stock

12

Cancellation of treasury stock(46)

Change in ownership interest ofparent due to transactions with
non-controlling interests
Changes of items other thanshareholders’ equity during theperiod (net)Total changes during the period
Balance as of the end of the period(5,131)

（0）

(0)

44

57

5,178

―

(143)

(143)

―
―

(177)

(3,524)

5,222

1,520

3,976

5,056

20,561(455)

29,138

Accumulated other comprehensive income

Balance as of the beginning of theperiodValuationdifference on otheravailable-for-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

0

(91)

(64)

Total
Subscription rights
Remeasurements accumulated
to shares
otherof defined benefit
comprehensive
plansincome

(559)

(716)

66

Non-controllinginterests

Total net assets

958

27,927

Changes during the period
Dividends from surplus(737)

Net income attributable to ownersof parent

2,344

Purchase of treasury stock(0)

Disposal of treasury stock

57

Cancellation of treasury stock―

Change in ownership interest ofparent due to transactions with
non-controlling interests
Changes of items other thanshareholders’ equity during
the period (net)

0

22

587

505

1,115

(3)

8

1,120

Total changes during the period

0

22

587

505

1,115

(3)

8

2,640

Balance as of the end of the period

0

(69)

523

(54)

399

63

966

30,567

(143)

- 9 -

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity

Balance as of the beginning of theperiodCapital stock

Capital surplus

3,976

5,056

Retained earnings

Treasury stock

20,561(455)

Total shareholders’equity29,138Changes during the period
Dividends from surplus(821)

Net income attributable to ownersof parent

4,563

(821)
4,563

Purchase of treasury stock
Disposal of treasury stock

43

（0）

(0)

50

93
―

Cancellation of treasury stock
Change in ownership interest ofparent due to transactions with
non-controlling interests
Changes of items other thanshareholders’ equity during theperiod (net)Total changes during the period
Balance as of the end of the period

―
―
―

43

3,741

50

3,835

3,976

5,099

24,302(405)

32,973

Accumulated other comprehensive income

Balance as of the beginning of theperiodValuationdifference on otheravailable-for-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

0

(69)

523

Total
Subscription rights
Remeasurements accumulated
to shares
otherof defined benefit
comprehensive
plansincome

(54)

399

63

Non-controllinginterests

Total net assets

966

30,567

Changes during the period
Dividends from surplus(821)

Net income attributable to ownersof parent

4,563

Purchase of treasury stock(0)

Disposal of treasury stock

93

Cancellation of treasury stock―

Change in ownership interest ofparent due to transactions with
non-controlling interests
Changes of items other thanshareholders’ equity during
the period (net)

0

77

2,398

20

2,496

(5)

154

2,644

Total changes during the period

0

77

2,398

20

2,496

(5)

154

6,479

Balance as of the end of the period

0

8

2,921

(33)

2,895

57

1,120

37,047―- 10 -

(4) Consolidated statements of cash flows(Million yen)
FY2020(April 1, 2020 to March 31,
2021)

FY2021(April 1, 2021 to March 31,
2022)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Interest expense
Decrease (Increase) in trade receivables

3,682
2,697
334
347
233

6,275
2,647
119
316
183

147

(679)

Decrease (Increase) in inventories

1,225(2,832)

Increase (Decrease) in trade payables

(735)

2,191

56

139

437

198

76

(83)

(1)
41
―
(163)
111
―
(385)
(760)

(3)
24
(224)
(53)
―
224
312
498

164
507
8,017
32
(252)
(1,228)
159
―
―
(66)
6,662

(363)
(149)
8,740
36
(184)
(824)
57
224
(224)
―
7,825

(2,210)
34
(294)
(20)
(47)
237
(2,300)(4,166)
13
(357)
(9)
(215)
183
(4,552)

Increase (Decrease) in provision for bonuses for
employees
Increase (Decrease) in retirement benefit liability
Increase (Decrease) in provision for businessrestructuring
Loss (Gain) on sales of noncurrent assets
Loss on retirement of noncurrent assets
Insurance claim income
Subsidy income
Business restructuring expenses
Litigation settlement
Decrease (Increase) in accounts receivable
Increase (Decrease) in accrued expenses
Decrease (Increase) in consumption taxes
receivable/payable
OthersSubtotal
Cash received from interest and dividends
Interest paid
Income taxes paid
Proceeds from subsidy income
Proceeds from insurance income
Settlement package paid
Payments for business restructuring expenses
Net cash provided by operating activities
Cash flows from investing activities
Payments for acquisition of property and equipment
Proceeds from sales of property and equipment
Payments for acquisition of intangible assets
Payments for retirement of property and equipment
Payments of guarantee deposits
OthersNet cash used in investing activities- 11 -

FY2020(April 1, 2020 to March 31,
2021)(Million yen)
FY2021(April 1, 2020 to March 31,
2021)

22,331(17,743)
1,100(4,385)
(737)
(97)

6,004
(12,692)
6,822(4,959)
(821)
(84)

(185)
(344)
(19)
(82)

―
(356)
(95)
(6,183)

147
4,427
9,297
13,725455(2,455)
13,725
11,269Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid to owners of parent
Cash dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Repayments of lease liabilities
OthersNet cash used in financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

- 12 -

(5) Notes to consolidated financial statements(Notes regarding ongoing concern assumption)
No relevant matters to be noted.
(Changes in accounting policies)
Accounting Standard for Revenue Recognition
From the beginning of fiscal 2021, the Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement
No. 29, March 31, 2020, “Revenue Recognition Standard”).
Kito Group manufactures and sells hoists, cranes, chains, and related products. The Company is also engaged in the sale ofstandardized mass-produced items from make-to-stock items, customized products to meet varied needs according to the typeof cargo handling or the use environment, and parts.
The revenue recognition for these transactions is in principle made according to the point at which control of the subject
products is transferred to the customer and Kito Group has determined that it has sufficiently fulfilled its performance obligations,at the point of shipping or receipt by the customer, in the amount expected to be received in exchange for the subject items. Of
note, the Company applies alternative treatment as prescribed in Paragraph 98 of the Implementation Guidance on AccountingStandard for Revenue Recognition. For domestic product sales, in cases where the time between shipment and control of thesubject product is transferred to the customer is an ordinary period, the Company recognizes revenue at the point of shipment.
Also, the Company has recorded paid sales promotion expenses and other expenditures to special or general sales agents, asselling, general and administrative expenses. The estimated amount for sales promotion expenses and other expendituresduring a fixed period was treated as a consideration paid to the customer and deducted from the calculation of the transaction
price.
For the application of the Revenue Recognition Standard, in accordance with the proviso of the transitional treatment asprescribed in Paragraph 84 of the Revenue Recognition Standard, the Company has adjusted the amount of retained earnings
for the beginning of the subject period by the cumulative amount of financial impact from new accounting policies applied
retroactively prior to the beginning of the subject period, and applied the new accounting standard from the subject
beginning-of-year balance.
However, for the contracts that the Company has applied the method prescribed in Paragraph 86 of the Revenue Recognition
Standard and recognized nearly the entire amount of revenue according to the former treatment prior to the beginning of fiscal
2021, the Company has not applied the new accounting policies retroactively.
The “notes and accounts receivable―trade” item shown in “current assets” in the balance sheets for the previous fiscal year, isshown in “notes receivable―trade” and “accounts receivable―trade” from the subject period. Of note, in accordance withtransitional treatment as prescribed in Paragraph 89-2 of the Revenue Recognition Standard, figures for the previous fiscal year
have not been recombined to reflect the new presentation method.
As a result, compared with those before the application of the Revenue Recognition Standard, in the consolidated statements ofincome for the subject period, net sales decreased by ¥403 million, and selling, general and administrative expenses also
decreased by ¥403 million. However, there was no impact on operating income, ordinary income, or income before income
taxes.
The impact on the consolidated balance sheets and consolidated statements of cash flows for the subject period is immaterial.
There is no impact on the balance of retained earnings at the beginning of the subject period in the consolidated statements ofchanges in net assets.
There is no impact on per share information.

- 13 -

Accounting Standard for Fair Value Measurement
From the beginning of fiscal 2021, the Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019, “Fair Value Measurement Standard”). In accordance with transitional treatment as prescribed in
Paragraph 19 of Fair Value Measurement Standard and Paragraph 44-2 of Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019), the Company will apply new accounting policies stipulated by the Accounting Standard for Fair
Value Measurement and other standards going forward. Of note, this change does not affect the consolidated financial
statements(Segment Information)[Segment information]
1. Reportable segments (overview)
The reportable segments of KITO CORPORATION are units of the corporation, for which financial information is separately
available and which are subject to periodic reviews in order for the board of directors to determine the allocation ofmanagement resources and to assess business results.
KITO CORPORATION manufactures and sells hoisting equipment and cranes. The Company takes care of the domestic
market, while for overseas markets, locally incorporated companies in the regions of the Americas, China, Asia, and Europe
are respectively in charge of their own markets. Each of the locally incorporated companies is an independent management
unit, plans comprehensive strategies for its products by region, and conducts business operations.
Therefore, KITO consists of these regional segments based on manufacturing and sales systems; consolidated subsidiaries
are aggregated into six reportable segments, namely Japan, the Americas, China, Asia, Europe, and Other.
2. Calculation methods for net sales, income or loss, assets, liabilities, and other items of reportable segments
The accounting methods of respective reportable segments are basically the same as those used for the consolidated
financial statements.
Income of reportable segments is based on operating income, and internal sales and transfers among segments are on amarket-value basis.

As stated in “Accounting Standard for Revenue Recognition” of “Changes in accounting policies,” the Company has applied
the Revenue Recognition Standard to its consolidated financial statements from the subject period and has changed its
accounting method for revenue recognition, and has therefore changed the method of measuring profit or loss for its businesssegments in the same manner.
As a result of this change, net sales to unaffiliated customers in the Japan reportable segment for the subject period
decreased by ¥403 million compared with the previous method.

- 14 -

3. Information on the amounts of net sales, income or loss, assets, liabilities, and other items of reportable segments
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Million yen)

Adjustment
Note 1

Consolidated
financialstatement
amountNote 2

Reportable segments
Total
Japan

AmericasChina

13,09023,955

6,681

8,444

57

21,534

Segment income (loss)
Segment assets

Asia

EuropeOthers

2,934

3,638

1,504

51,805―51,805

422

0

823

―

9,748

(9,748)―24,013

7,104

2,934

4,462

1,504

61,554(9,748)51,805

4,313

1,157

1,043

207

(368)

(35)

6,319

(1,861)

4,457

28,43821,931

6,909

3,836

5,124

1,330

67,570(2,502)65,067

973

888

219

201

312

92

2,686

11

2,697

Amortization of goodwill

6

283

―

―

57

―

347

―

347

Increases in tangible
noncurrent assets andintangible noncurrent
assets

1,081

334

150

42

222

2

1,833

―

1,833

Net sales
Net sales to unaffiliatedcustomers
Net internal sales ortransfers among
segments
Total

OthersDepreciation andamortization

Notes:
1. The details of adjustments are as stated below:(1) The segment income or segment loss adjustment of ¥(1,861) million includes transaction offsets among segments of ¥294
million and Company-wide expenses that are not allocated to respective reportable segments of ¥(2,156) million.
Company-wide expenses are expenses mostly related to the general affairs, finance & accounting, and corporate planningdepartments of the parent company.
(2) The segment assets adjustment of ¥(2,502) million includes transaction offsets among segments of ¥(3,824) million andCompany-wide assets that are not allocated to respective reportable segments of ¥1,321 million. Company-wide assets areassets mostly related to the general affairs, finance & accounting, and corporate planning departments of the parent
company.
2. Segment income or loss is adjusted to operating income listed in the consolidated financial statements.

- 15 -

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Million yen)

Adjustment
Note 1

Consolidated
financialstatement
amountNote 2

Reportable segments
Total
Japan

AmericasChina

13,30731,2807,746

13,78953

27,097

Segment income (loss)
Segment assets

Asia

EuropeOthers

3,178

5,255

1,738

62,506―62,506

768

―

701

―

15,312(15,312)―31,333

8,514

3,178

5,956

1,738

77,819(15,312)62,506

5,777

2,396

1,168

334

(430)

25

9,271

(3,086)

6,184

26,662

28,708

8,558

4,663

7,110

1,574

77,278(4,787)72,490

1,118

661

242

193

349

74

2,639

8

2,647

Amortization of goodwill

―

300

―

―

15

―

316

―

316

Increases in tangible
noncurrent assets andintangible noncurrent
assets

1,483

2,087

209

10

633

8

4,431

15

4,446

Net sales
Net sales to unaffiliatedcustomers
Net internal sales ortransfers among
segments
Total

OthersDepreciation andamortization

Notes:
1. The details of adjustments are as stated below:(1) The segment income or segment loss adjustment of ¥(3,086) million includes transaction offsets among segments of¥(678) million and Company-wide expenses that are not allocated to respective reportable segments of ¥(2,408) million.
Company-wide expenses are expenses mostly related to the general affairs, finance & accounting, and corporate planningdepartments of the parent company.
(2) The segment assets adjustment of ¥(4,787) million includes transaction offsets among segments of ¥(6,122) million andCompany-wide assets that are not allocated to respective reportable segments of ¥1,334 million. Company-wide assets areassets mostly related to the general affairs, finance & accounting, and corporate planning departments of the parent
company.
2. Segment income or loss is adjusted to operating income listed in the consolidated financial statements.

- 16 -

(Per share information)
FY2020(April 1, 2020 to March 31, 2021)

FY2021(April 1, 2021 to March 31, 2022)

Net assets per share

1,439.48 yen

1,743.09 yen

Net income per share

114.29 yen

221.97 yen

Diluted net income per share

114.16 yen

221.49 yen

Notes:
1. The basis for calculating net assets per share is presented as follows:
FY2020(As of March 31, 2021)

FY2021(As of March 31, 2022)

Total net assets (million yen)

30,56737,047

Amount deducted from net assets (million yen)

1,029

1,178

(Subscription rights to shares)

(63)

(57)

(Non-controlling interests)(966)(1,120)29,53735,86920,519,773

20,578,019

Common stocks within net assets as of the endof the year (million yen)
Number of common stocks as of the end of theyear used for the calculation of net assets
per share (shares)

2. The basis for calculating net income per share and diluted net income per share is presented as follows:
FY2020(April 1, 2020 to March 31, 2021)

FY2021(April 1, 2021 to March 31, 2022)

2,344

4,563

―

―

2,344

4,563

20,509,115

20,557,370

Increase in common stocks (shares)

23,79744,456(Subscription rights to shares) (shares)(23,797)(44,456)

Net income per share
Net income attributable to owners of parent(million yen)
Not attributable to ordinary shareholders ofcommon stock (million yen)
Net income attributable to owners of parent’s
common stock (million yen)
Average number of common stocks during theyear (shares)
Diluted net income per share

Summary of dilutive shares that do not havedilutive effect and thus are not included in thecalculation of diluted net income per share――(Important subsequent events)
Planned Commencement of the Tender Offer for Shares, etc. of the Company by Lifting Holdings BidCo, Inc. in Connection With
the Business Combination of the Company and Crosby GroupOn May 16, 2022, the Company has entered into a business combination agreement (the “Business Combination Agreement”)- 17 -

concerning a business combination of the Company and the Crosby Group (defined below) that is based on a spirit of equality(the “Business Combination”) with Lifting Holdings Limited (“HoldCo”), which is the parent company holding all of the issued andoutstanding shares of Lifting Holdings BidCo, Inc. (“Offeror”), Crosby US Acquisition Corp., which is a wholly owned subsidiary of
HoldCo (“Crosby US”), and Crosby UK Acquisition Limited, which is a wholly owned subsidiary of HoldCo (“Crosby UK”,HoldCoand its subsidiaries, including Crosby US, Crosby UK and The Crosby Group LLC (“Crosby”), which is indirectly owned all of its
outstanding shares by HoldCo through Crosby US and other wholly-owned subsidiaries and established under the laws ofDelaware, U.S.A., collectively “Crosby Group”).
Further, in relation to the tender offer (the “Tender Offer”) for the Company’s common stock (the “Company Shares”) and theStock Acquisition Rights by the Offeror as part of the Business Combination, at the board of directors meeting held on that day, aresolution was made stating that if the Tender Offer commences, the position of the company as of that date is that it will declarea position in support of the Tender Offer and that it will recommend that the Company’s shareholders and stock acquisition rightholders accept the Tender Offer.
The above resolution of the board of directors is made on the premise that a series of transactions to achieve the Business
Combination, including transactions with the purpose of making the Offeror the only shareholder of the Company’s through theTender Offer and the subsequent series of transactions is contemplated, and that the Company Shares are scheduled to bedelisted.
For details, please refer to “Announcement of Position Statement on the Planned Commencement of the Tender Offer for Shares,
etc. of Kito by Lifting Holdings BidCo, Inc. in Connection With the Business Combination of Kito and Crosby Group” released onthat day.
1. Outline of Offeror
(1)
Name
(2)
Location

Lifting Holdings BidCo, Inc.
Pacific Century Place Marunouchi
11-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo
Robert Desel, Representative Director
Brandon Blum, Representative Director(1) Trading(2) All businesses related or incidental to the preceding item
5,000 yen
April 28, 2022

(3)

Position, name ofrepresentative(4)

Business details

(5)
(6)
(7)

Capital
Incorporation date
Major shareholders andshareholding ratio (as of May Lifting Holdings Limited
16, 2022)
Relationship between the Company and Offeror
Capital ties
Not applicable.
Personal ties
Not applicable.
Business ties
Not applicable.
Circumstances relevant to
Not applicable.
related parties

(8)

100％

2. Summary of the Tender Offer(1) Term of the Tender Offer
According to “Notice Regarding Plan to Commence a Tender Offer for Kito Corporation Shares (Securities code: 6409)”
that were published on May 16, 2022 by the Offeror, the Offeror aims to commence the Tender Offer in late October, 2022,
but as it is difficult to accurately predict the time it will require to deal with regulatory authorities inside and outside Japan,
they will provide notice of a more detailed schedule for the Tender Offer once clearances have been obtained from all
regulatory authorities. The company is informed that any changes to the expected timing of the commencement of theTender Offer as stated above will be also announced promptly.
(2) Purchase, etc. Price(1)Company Shares
2,725 yen per one share of common stock(2)Stock acquisition rights(a)Stock acquisition rights issued pursuant to the resolution at the ordinary general meeting of shareholders
held on June 22, 2012 and the resolution at the board of directors meeting held on May 28, 2013 (the“Tenth Series Stock Acquisition Rights”) (the exercise period is from May 29, 2015 to May 28, 2023):- 18 -

(b)

(c)

(d)

(e)

374,400 yen per stock acquisition right
Stock acquisition rights issued pursuant to the resolution at the ordinary general meeting of shareholders
held on June 20, 2013 and the resolution at the board of directors meeting held on May 27, 2014 (the“Eleventh Series Stock Acquisition Rights”) (the exercise period is from May 28, 2016 to May 27, 2024):
317,000 yen per stock acquisition right
Stock acquisition rights issued pursuant to the resolution at the ordinary general meeting of shareholders
held on June 23, 2015 and the resolution at the board of directors meeting held on May 31, 2016 (the“Thirteenth Series Stock Acquisition Rights”) (the exercise period is from June 1, 2018 to May 31, 2026):
366,800 yen per stock acquisition right
Stock acquisition rights issued pursuant to the resolution at the ordinary general meeting of shareholders
held on June 21, 2016 and the resolution at the board of directors meeting held on May 30, 2017 (the“Fourteenth Series Stock Acquisition Rights”) (the exercise period is from May 31, 2019 to May 30, 2027):
303,800 yen per stock acquisition right
Stock acquisition rights issued pursuant to the resolution at the ordinary general meeting of shareholders
held on June 21, 2017 and the resolution at the board of directors meeting held on May 29, 2018 (the“Fifteenth Series Stock Acquisition Rights”) (the exercise period is from May 30, 2020 to May 29, 2028):
66,200 yen per stock acquisition right(3) Planned number of shares of the Tender Offer
Number of share to be purchased: 20,726,019 shares
Limit on the maximum number of share certificates: 13,817,400 shares
Limit on the minimum number of share certificates: -- 19 -