March 27, 2020

Outline of the Results of the Effectiveness Evaluation of the Board of Directors
KITO CORPORATIONKITO CORPORATION conducted the evaluation of the effectiveness of the Board ofDirectors to confirm and continuously improve the effectiveness of the decision-making function
and management monitoring function of the Board of Directors. An overview of the results isprovided below.
1. Evaluation method
With respect to the following items, a total of 10 directors and corporate auditors were eachgiven a questionnaire. Opinions were collected by evaluation of each item on a five-point scaleand opinion column. The evaluation items have been partially revised based on the Corporate
Governance Code revised in June 2018, while basically maintaining the evaluation items up toFY2018.
[Questionnaire items]（１） Structure of the Board of Directors (composition, number and ratio of outside officers,
diversity, term of office, etc.)（２） Operations of the Board of Directors (roles of the Board of Directors, contents of materials,delegation of authority, degree of active discussion, etc.)（３） Agenda items of the Board of Directors (discussions on remuneration, election, dismissal,compliance, etc., status of response to previous issues, etc.)（４） System to support the Board of Directors (opportunity and frequency of informationexchange, cooperation with departments, information access, etc.)（５） The Nomination and Compensation Committee (composition, status of discussions on
remuneration, dismissal, succession planning, etc.)
2. Evaluation results (summary)
As a result of the evaluation, the proportion of positive evaluations (“Strongly Agree” and“Agree”) on the five-point scale (*) for some items fell slightly, but overall the effectiveness of theBoard of Directors as a whole was evaluated as being appropriately secured. Among others, allrespondents answered "Strongly Agree" to the question "Is the Board of Directors a place wheredirectors and corporate auditors can fully express their opinions, discuss and exchange opinions
openly and constructively?" under (2) Operations of the Board of Directors, which shows thatthe characteristic of our Board of Directors having substantial discussions has been highlyevaluated. The main point for which positive evaluation was lower than the previous year was
the status of response to the issues presented in FY2018.
(*) The answer choices on a five-point scale are "strongly agree, agree, neutral, disagree,
and strongly disagree."3. Matters to be dealt withThe Board of Directors has concluded, based on the results of the evaluation, that the threeissues identified in the FY2018 effectiveness evaluation need to be continuously dealt with. Inaddition, it was recognized that there was a need to further improve the content of theexplanatory materials to support appropriate judgment of the management. To further enhancethe effectiveness of the Board of Directors, we will continue to deal with the issues identified.
Three issues to be continuingly dealt with, and the measures to be taken
IssuesMeasures

Deepened discussions on medium- to long-Discussions will be deepened along withterm strategies, product strategies andformulating

regional strategies

management plan (scheduled to start inthenext

medium-term

FY2021).
Increasing frequency of risk discussions and We discussed material risks in FY2019. We
conducting periodic reviews

will also share and discuss other risks andissues

whichhaveimpactonourmanagement.
Discussing management succession plansDiscussions will be further promoted on theissues including a career plan for fostering
management positions throughout the group.