Greetings

Greetings

Greetings
KAWASE Masahiro*

I have just taken up the office of Representative
Director. Here I would like to state what I think issignificant to steer the KYB Group.
1. Growth Strategy
KYB Corporation, as a company with the world's topclass technology for vibration prevention and power
control that applies the principle of hydraulics, will
promote product development towards the goals ofachieving further corporate growth and sustainable socialdevelopment. For example, electrification of automobiles
and construction machinery is one of the measures torealize these goals. I think it is very important to focus ontechnical development for implementing these measures.
In Automotive Components Operations, we arepromoting the improvement of the basic performance ofshock absorbers as well as the development of new active
suspension systems and next-generation hybrid
suspension systems, in order to adapt to the trend of EVs
and CASE Note 1)
In Hydraulic Components Operations, by leveraging
our strength across the product family covering thecomponents (pumps, motors, valves, and cylinders) for
the drive mechanisms of construction machinery, we areworking on an effort for systemization of the products byadding electronic controls, such as sensing, in order toadapt to the trend of remote control and automatic/unattended operation of construction machinery.
Also, in the Special-Purpose Vehicles Division, byleveraging our technology for concrete mixers for which
we have the largest share in the Japanese market, we willdevelop new products making use of electrification andcomputerization technologies that can contribute to thecreation of a decarbonized society.
Furthermore, as an effort for entering new markets, weare developing a camping car that integrates ourproprietary technologies of AC and HC Operations andthe Special-Purpose Vehicles Division. Its concept andproduct display in exhibitions are introduced in this issueof KYB Technical Review.
Note 1) Acronym for Connected, Autonomous Share & Services,and Electric vehicles.

2. Production Innovation for Next Generation
We call our activity to advance Monozukuri(manufacturing) towards the next generation "Ship '30"
(Self handing innovation plant 2030). By using digitaltechnologies (DX and AI) as a key solution to minimize"transportation", "inventories", and "operation", we will
promote the implementation of unattended self-complete
factories. We will roll out this activity on a global basis
to optimize the Group-wide production system.
3. Relentless Cost Reduction Activity
Although the business is now on the road to recovery
from the spread of COVID-19 infection, the businessenvironment remains severe with surging prices of raw
materials, production adjustments at customers due tosemiconductor supply shortages, and other issues. Under
this social background, the Group is promoting a cost
reduction activity on a global basis to stabilize ourrevenue base. We will also concentrate resources on thecore businesses, namely, AC Operations, HC Operations,and Special-Purpose Vehicles Division to transform
ourselves into a highly profitable structure.
4. Activities for Sustainability
In order for a global company to achieve continual
growth, it is generally indispensable to promote ESG
management. KYB Corporation has also established theSustainability Committee headed by a Representative
Director and consisting of general managers of individual
divisions and operations. The Committee will introduce
specific activities for SDGs and develop employees'
awareness of initiatives for carbon neutrality and otherissues including reviews on Monozukuri/design
specifications, building the company's confidence while
responding to social needs.
KYB Corporation has changed its company name inJapanese on October 1, 2023. We would like you toextend continual support to us.
This concludes my greetings as RepresentativeDirector. We are committed to promoting reform by allof us and making effort to obtain trust from customers
throughout the world.

* Representative Director, and President Chief Operating Officer(COO), KYB Corporation―4―