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Financial Results for FY2019ended March 31, 2020Presentation materials for webcastarchived on May 22 at;https://kito.com/ir/irnewsKITO CORPORATIONTSE 1st Section: 6409May 22, 2020Copyright 2020 KITO CORPORATION All rights reserved.
FY2019 Summary (Updated)- From the beginning of the year the overall equipment-investmentmarket slowed due to a generally pessimistic outlook about theeconomy ahead.- In the first half demand was strong, mainly in the infrastructuresector, but slowing became obvious as the second half began.- Sales were down in the fourth quarter, mainly because of fallingdomestic demand since autumn and a dip in tire-chain demand inNorth America due to a warmer winter.- Profit was down with the above-mentioned sales decrease andhigher yen value.- Despite the slowing trend, our Chinese operations gained sales andprofit, with the nation's growing safety-consciousness leading toincreasing market share.- The influence of the Covid-19 pandemic on our FY2019 results hasbeen small.Copyright 2020 KITO CORPORATION All rights reserved.2
FY2019 Financial HighlightJPY in millionSalesGross ProfitGross Profit/ SalesFY 336.8%Operating Income / Sales10.5%Non-operating incomeNon-operating expensesOrdinary Income / SalesEBITDAOp Income 018,5086.6％Note: Exchange Rate (FY2018 FY2019)USD/JPY 110.9 108.7 CAD/JPY 84.6 81.8Copyright 2020 KITO CORPORATION All rights reserved.9.3%4,991Income TaxesNet Income / Sales37.4%5,748Extraordinary Profit / lossNet IncomeYoY Change61,23822,545Operating IncomeOrdinary IncomeFY 20195.5%(4.1%)(13.2%)(21.2%)EUR/JPY 128.4 120.8 RMB/JPY 16.7 15.83
Quarterly Net Sales and Operating MarginOur earnings were sustained by a product portfolio that isdiverse both regionally and industriallyJPY in millionSalesOp Income20,00018,00016,00014,00012,00015,204 2.7%10,0006,00017,50116,45512,741 %9.6% 10%9.4%4.5% 5.7%5%2,0000Op Y 2017Sales 55,168Op Income 4,698Copyright 2020 KITO CORPORATION All rights reserved.FY 2018Sales 61,238Op Income 6,413Q41,717Q1Q2Q3Q48371,3391,7691,5260%FY 2019Sales 58,722Op Income 5,4744
Net Sales by Region (Japan)- Shipments softened a little starting in the third quarter.- Manual-hoist sales to infrastructure and rental industries seemed to reach aplateau.JPY in millionProduction at our main plant in Japan has temporarily5,000slowed due to a replacement of IT 4,2144,7223,995 3,8024,0943,2822,7612,0001,0000Q1Q2Q3FY 2017：13,261Copyright 2020 KITO CORPORATION All rights reserved.Q4Q1Q2Q3FY 2018：16,162Q4Q1Q2Q3Q4FY 2019：15,1745
Net Sales by Region (Americas)The graph shows the total of sales in the US,Canada and Latin America (converted to USD in thousand)- Orders were strong despite economic uncertainty due to political and tradeconflict between the US and China.- The impact of the Covid-19 pandemic rose to prominence at the end of thequarter.USD in ,46040,00030,00020,00010,0000Q1Q2Q3FY 2017：240,866Copyright 2020 KITO CORPORATION All rights reserved.Q4Q1Q2Q3FY 2018：249,442Q4Q1Q2Q3Q4FY 2019：251,3796
Net Sales by Region (China)Fiscal year of China starts in January and ends in December- While the economy slowed overall, our earnings were driven by performingdomestic industries.- The trend toward increasing market share and higher sales continued amidthe nation's growing safety-consciousness.- Earnings-conscious operations generated steady profits.120,000100,00080,00079,852115,405 RMB in ,01389,85090,73488,05360,00040,00020,0000Q1Q2Q3FY 2017：355,229Copyright 2020 KITO CORPORATION All rights reserved.Q4Q1Q2Q3FY 2018：391,360Q4Q1Q2Q3Q4FY 2019：432,3437
Operating Income ComparisonJPY in millionIncrease inmaterials costsDecreasein sales(476) 983(397)(695)Increase insales price6,413FY 2018Op IncomeCopyright 2020 KITO CORPORATION All rights reserved.FX impact(354)Increasein SGA5,474FY 2019Op Income8
COVID-19 impact on operation (Updated)Impact on demand- The gravity and duration of the effects will vary by period, region and industry,but we anticipate a relatively quick recovery thanks to our unique, regionally andindustrially diverse operational portfolio.- China and East Asia are moving ahead of other markets on the recovery trend.Impact on operations and supply chain- Even in regions under business restrictions Kito is maintaining normaloperations, because our industry has been designated essential.- Our main production bases in Japan, the US and China are operating as usual,with no supply-chain issues.- India and Italy were locked down, but that is lifting.Impact on employment and labor system- With a few regional exceptions, most of our people in administration and indirectdivisions are still teleworking.- We plan to keep as many jobs as possible despite some workday adjustmentsand furloughs implemented in some regions.Copyright 2020 KITO CORPORATION All rights reserved.9
Forecast of consolidated results for FY2020 (Updated)- Projected results and dividend for fiscal 2020 notannounced.- At this time we are unable to reasonably calculatethe impact of the pandemic on demand.- We plan to disclose the figures as we discloseresults for the first quarter.Copyright 2020 KITO CORPORATION All rights reserved.10
We hope the pandemic will subsideas quickly as possible.KITO CORPORATIONCopyright 2020 KITO CORPORATION All rights reserved.11
domestic demand since autumn and a dip in tire-chain demand in North America due to a warmer winter. - Profit was down with the above-mentioned sales decrease and higher yen value. - Despite the slowing trend, our Chinese operations gained sales and profit, with the nation's growing
