FY 2018 (75th Term) BUSINESS REPORT

April 1, 2018-March 31, 2019

Brex Arena Utsunomiya, the home base of

TSE: 6409

the pro basketball team Link Tochigi BrexTo Our Shareholders- In FY 2018 Kito made newrecords in both sales and profit.
- Kito's dividend this year was
44 yen per share, up 11 yen.
- Our goal is to increase sales
and profit again this fiscal year.
Video archive offinancial results briefing
held on May 21.

Yoshio Kito, President and CEO
I want to express my deepest gratitude to you for yourwork on production-line reform at the Yamanashi main plantcontinuing support. The world economy was strong andfor higher production capacity and manufacturing efficiency.

stable throughout our fiscal year ended in March 2019.

In addition, we are transferring some production processes to

Responding to brisk demand, Kito continued to increase

the US and Thailand to optimize production and supply

production from the beginning of the year, which raised

systems for the entire Kito Group. With these measures we areproductivity and helped us expand profits. The results

aiming for new all-time highs in sales and profit on all levels.

included new records for sales and profit on all levels.
FY 2019 is the fourth year of our mid-term business plan. To
Despite an uncertain economic trend in the immediateachieve the goals set out in the plan, we will continue

future, we project continuing strong demand into FY 2019,

capturing brisk demand in various markets and increasing

supported by domestic demand in major markets. We

profits and cash flow through higher productivity andanticipate further growth this year based on stable demand

efficiency. For the two remaining years of the plan we aretrends in Japan and North America for investment related tokeeping our focus on its goals and on growing ourequipment and infrastructure, while we are reaching intooperations. We can confidently encourage high hopes for a

China to build business in growth industries. We are gaining

globally expanding Kito Group.

market share in China with increasing safety awareness andappreciation for quality products like ours. This year we will

株式会社キトー 2019年3月期 事業レポート

2018年4月1日‐2019年3月31日

Meet Link Tochigi Brex (cover photo)
The Japanese pro basketball team based at Brex Arena Utsunomiya is the first winner of thefirst section of the B league, which began with the 2016-17 season. Its top-notch players
include the first Japanese NBA player, Yuta Tabuse and the home games draw about 4,000
spectators, among the highest in the league.
TNER theatrical hoists lift an LED screen array above center court. This product is designed for
証券コード：6409

写真：プロバスケットボールチーム「リンク栃木ブレックス」の本拠地、ブレックスアリーナ宇都宮

uses such as supporting lighting and sound equipment in event venues and on stages.

FY 2018 Business Highlights
All-time High Sales andProfits on All Levels
Meeting brisk demand worldwide,we are reporting two-digit
year-on-year sales growth. Profit on
all levels increased significantly

Salesup

11.0%

Operating Income

612.3

36.5%

551.6
JPY in hundred million

year-on-year thanks to higher

64.1

up

JPY in hundred million

JPY in hundred million

Net Income Attributableto Owners of Parent

40.6

up

43.3%

46.9

28.3

JPY in hundred million

JPY in hundred million

JPY in hundred million

productivity, a result of production
growth and expanding sales.
March2018

March2018

March2019

March2019

March2018

Sales growth by market＋29.0＋9.6

JPY in hundred million

March2019＋11.4 612.3＋4.0＋6.3

JPY in hundred million

ChinaAsia

JPY in hundred million

JPY in hundred million JPY in hundred million

Europe

JPY in hundred million Americas

551.6

Japan

JPY in hundred million

March 2018

March 2019

FY 2019 Projections and Dividend Plan
Planning for a third consecutive year ofrecord sales and profit

We plan to continue increasing our dividend,
projecting an additional 4 yen for FY 2019.

While uncertain factors are increasing in the world

Dividend trend per share(payout ratio)

economy, we are entering a mature growth phase andOperating
IncomeOrdinary
IncomeNet Income628676443

JPY inhundredmillion

2.5%

JPY inhundredmillion

4.5%

JPY inhundredmillion

11.3%

JPY inhundredmillion

5.8%

44 yen(22.8 )%(22.1%)

aiming for a third consecutive year of sales and profit.

Sales

48yen

24

Year-end24

10 yen

March
2013

20

24 Mid-term

March March
2019 2020(forecast)Pick Up
Productsin use
October 2018March 2019

Here are some good examples of Kito products in use and our CSR activities.

Kito contributes to manufacturing and infrastructurebuilding worldwide.
While many Kito products are installed on the production lines of manufacturing plants,
others are used in temporary workplaces like construction sites. In the past six months,
we delivered products in response to demand related to private-sector equipment
investment and government infrastructure projects.

Global
Production line of a German
agricultural machinery maker
We delivered nearly 70 Erikkila light-cranesystems and over 50 units of electric chain
hoists a German manufacturer of agricultural
machinery. The total length of the aluminumand steel cranes reaches 800 meters.

JapanThree large bridge cranes formagnesium-alloy parts plantThis plant makes various parts exclusively frommagnesium alloy. The three large cranes move on
floor rails for changing dies and maintaining
equipment.

Processing burnable waste
into energy
On the construction site for a burnable waste processing
facility under construction by the cities of Hino,
Kokubunji and Koganei in Tokyo, workers are using ourmanual chain hoists to install steam-turbine generators
driven by heat from burning waste. The electricity
generated this way is used in the plant and sold toenergy firms.CSR Activities
Kito aims to be a company whereeveryone finds it easy to work
Kito puts special effort into hiring handicapped people. We
proactively and continuously improve our work environment,
offering on-the-job training in several workplaces before an
official hire, special communication tools and Silwatch for
those with a hearing loss. Handicapped employees are 6.9%of our Group's total work force (April 2019), far above thelegal mandate of 2.2%.

As a social contribution, Kito maintains a sponsorship agreement with
the Japan Para-Ski Federation, which promotes social participation of thehandicapped people. As an official sponsor for the national para-alpine
ski and ID-alpine ski teams, we help encourage handicapped skiers.

Peerless cited for excellence in environment improvement
Peerless Industrial, the leading North American chain maker and a Kito Group member, won Regional winner of the 2019
Industrial Water Quality Achievement Award from the Central States Water Environment Association (CSWEA), fordemonstrating consistent reduction of bio solids in its wastewater system from 1982 to 2017.

Supporting career-path selection
program for junior high schooland high school girls
This university-based program is designed to reduce
doubt and anxiety among female schoolers aboutmajoring in sciences at the college level, and so increase
the numbers of women science majors. In concordancewith the program's goals, Kito invited a group of juniorhigh school and high school girls to the Yamanashi Main
Plant to witness the action on the manufacturing floor
and talk with women engineers.

Public Relations"Train-jacking" withhang-strap ads!
We placed our first hang-strap ads on four
major trains and subway lines, specifically theOdakyu, Toei Mita, Asakusa and Oedo lines. On
your daily commute, you may find yourself on aKito train.

Investor Relations We remain active in providing up-to-date information.
Our global website is being revised to provide moreinvestor-related information.
Our Chart Generator shows ourperformance across any period you
designate.

Briefing on yearend financial results foranalysts and institutional investors
Video archive available on the same day ofthe event, in both English and Japanese.

Through our Ask an IR Officer column wetimely answer questions from investors.

Each year we offer a social event after theshareholders meeting.

We made video available online on the dayof the event, June 21.

We provided briefings for individual investors

We offer regular plant tours for individual investors.
The next tour will be on Friday, October 25.
Make a reservation!

A total of 700 people participated at seven locations nationwide.

A tour of the plant andexchange with ourDirectors will help
deepen yourunderstanding of Kito.

Communications throughSocial Media

Shareholder Memo
Record Dates

Annual shareholders meeting: March 31
Year-end dividend payment: March 31Interim dividend payment:
September 30
We regularly posts scenes whereKito products are at work and Kito
people in action.

See videos on Kito's profile and its
commitment to manufacturing.

Kito Corporation
Corporate Communication Department

SearchTokyoOffice

9th Floor, Shinjuku NS Bldg.,
2-4-1 Nishi-Shinjuku, Shinjuku-ku,
Tokyo 163-0809
Tel: +81-3-5908-0161

https://kito.com/ir

Yamanashi
Main Plant

2000 Tsuiji Arai, Showa-cho,
Nakakoma-gun,
Yamanashi Prefecure 409-3853
Tel: +81-55-275-7521