News Release (6409 TSE)

May 16, 2022
Company

KITO CORPORATION

President and CEO
Identification CodeContact:

Yoshio Kito
6409 (TSE Prime)
Shigeki Osozawa
Managing Director
Chief Financial Officer
TEL: +81-(0)3-5908-0161

Notice regarding Dividend Distribution (No Dividend)
KITO CORPORATION (TSE: 6409) (the “Company” or “we”) at the meeting of the Board of Directors
held today resolved that we will not pay an interim dividend with a record date of September 30, 2022
and a year-end dividend for the fiscal year ending March 31, 2023, subject to the settlement of thetender offer (the “Tender Offer”) for the Company’s common shares (the “Shares”” and stockacquisition rights (the “Acquisition Rights”), by Lifting Holdings BidCo, Inc. (the “Tender Offeror”) as
stated in the “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” dated today (the “Press Release of Position Statement”)
1. Details of Dividend Distribution (No Dividend)(1) An interim dividend with a record date of September 30, 2022
Items Decided

Previous Forecast

FY ended March 31, 2022

September 30, 2022―

September 30, 2021

JPY 0.00―

JPY 22.00

Total Dividends――

JPY 452 million

Effective Date――

December 3, 2021

Source――Retained Earnings

Record Date
Dividend per Share(2) A year-end dividend with a record date of March 31, 2023
Items Decided

Previous Forecast

FY ended March 31,2022*

March 31, 2023―

March 31, 2022

JPY 0.00―

JPY 22.00

Total Dividends――

JPY 452 million

Effective Date――

June 27, 2022

Source――Retained Earnings

Record Date
Dividend per Share*Resolved at the meeting of Board of Directors today
1News Release (6409 TSE)
2. Reasons
At the meeting of the Board of Directors, a resolution was made stating that if the Tender Offer
commences, the position of the company as of this date is that it will declare a position in support of
the Tender Offer and that it will recommend that the Company’s shareholders and stock acquisitionright holders accept the Tender Offer.
The above resolution of the board of directors is made on the premise that a series oftransactions to achieve the Business Combination, including transactions with the purpose of
making the Offeror the only shareholder of the Company’s through the Tender Offer and thesubsequent series of transactions is contemplated, and that the Company Shares are scheduled tobe delisted. Please refer to the Press Release of Position Statement for details.
For shareholder returns, the Company’s basic policy is to pay a stable and sustained dividend,
while ensuring sufficient retained earnings to support future business expansion. Our dividends havereflected our target of a payout ratio of 20% or higher on a consolidated bases, and we havecontinued to strive to maintain and improve this level. However, the Tender Offeror indicated that thepurchase price per share for the Shares and per the Acquisition Rights in the Tender Offer wascomprehensively judged and determined based on the assumption that an interim dividend with arecord date of September 30, 2022; and a year-end dividend for the fiscal year ending March 31,2023 would not be paid. Therefore, the meeting of the Board of Directors held today, the Company
resolved not to pay an interim dividend with a record date of September 30, 2022 and a year-enddividend for the fiscal year ending March 31, 2023.
End2