Directions for the next

Medium-Term Business Plan

KITO CORPORATION (TSE: 6409)

May 18, 2021

Copyright © 2021 KITO CORPORATION All rights reserved.

Previous MTP review (qualitative)

  • Qualitative Review
    • Product portfolio expansion
      • Expand product lines through M&A
      • Launching new products of Powered Chain Hoists, Light Cranes and others
    • Risk-hedgingthrough global production and development
      • Partial transfers of production to plants in Thailand, the US, elsewhere
      • Yamanashi 'mother' plant
    • Strategy review
      • Raise production efficiency with new ERP system, and customer convenience with e-commerce.
      • Start programs to train next generation of leaders.
      • Strengthen global management system.
      • Standardize and audit product quality groupwide.

Achievements:

High margin business structure and globally integrated enterprise

Challenges:

PMI of European subsidiaries, shorter product-launch cycle, and capital efficiency

Copyright © 2021 KITO CORPORATION All rights reserved.

2

Previous MTP review (quantitative)

  • Quantitative review

EBITDA: Decline for two years since the FY2018 peak at 9.2 billion yen.

OCF:

¥4.5B (FY2015) ⇒ ¥6.6B

(FY2020)

OCF margin:

8.1%

(FY2015) ⇒ 12.9%

(FY2020)

OP margin:

7.7%

(FY'11-15*)⇒

9.1%

(FY'16-20*)

ROE:

8.4%

(FY'11-15*)⇒

11.8%

(FY'16-20*)

*Average

The EBITDA goal of ¥13 billion was not achieved, but the company is back on track to high earnings.

Copyright © 2021 KITO CORPORATION All rights reserved.

3

Future direction (1. Background for determining KPIs)

  • Background for determining KPI

Present

Future

【Previous MTP review】

Set direction for future

Internal

・Slow ROI

・Slow product launch

business and redefine the

Factor

・Stronger inter-company

Kito mission

relationship

・COVID-19

【Changes in business environment】

・Higher awareness of sustainability

External ・Accelerating digital shift

・Digital transformation

factor

・Ongoing industrial

・ESG-focused management

reorganization

・Post COVID-19 era

Copyright © 2021 KITO CORPORATION All rights reserved.

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Future direction (2. KPIs)

1．Qualitative improvement in management to a new stage in global strategy

Redefine corporate mission, toward sustainable management Enhance HR development and increase diversity.

Raise both earnings power and capital efficiency.

KPI candidates:

Enhance and build up production capacity abroad,

optimize supply chain.

・ROIC

Promote PMI with new subsidiaries and strengthen

・CCC

inter-subsidiary ties

・New product sales ratio

2．Enhance brand value for customers

・Female management ratio

Further product differentiation

・Reduction of env. impact

Safety training for users

(CO2, etc.)

3. Continuous innovation as anti-gravity equipment

・BoD Effectiveness

manufacturer.

・Customer satisfaction rate

Develop and acquire new products and business.

・Overseas production ratio

Expand tailor-made business by strengthening engineering

etc.

capability.

Reduce environmental impact through product life cycle

Kito is working to achieve total equity value of ¥100 billion in near future based on these three policies.

Copyright © 2021 KITO CORPORATION All rights reserved.

5

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KITO Corporation published this content on 18 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 May 2021 02:51:59 UTC.