Our Strengths

Kawai's growing
Competitivenessaround the world.

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Our Main Businesses
The musical instrument and education business accounts for 83% of total sales. At the center of the MusicalInstrument and Education Business is the manufacture and sales of keyboard instruments, our founding business.

Material processing

Composition of sales by business segment
Other 5.0%

Musicalinstrument
education

11.9%
Company-widesales

87.7 billion
yen
83.1%

Source: Financial Results for the Fiscal Year Ended March 2023

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Breakdown of Keyboard Instrument Sales
International sales account for 83% of keyboard instrument sales, and Kawai is recognized as a global brand.

Composition of sales of keyboard
instruments in Japan and overseas

Main overseas bases

16.9%
EuropeChinaJapan(Headquarters)

North America

83.1%
Indonesia
AustraliaJapan

Overseas

Source: Financial Results for the Fiscal Year Ended March 2023

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Global Keyboard Instrument Market Size (Actual + Forecast)
Regarding Kawai’s main business, stable growth is expected in the global market for keyboard instruments (acoustic
pianos and digital pianos), which is expected to grow at an annual average rate of 2.8% through 2028.
($ million)3,500

CAGR 2.8%

3,000
2,500
2,000
1,500
1,000
50002018

2019

2020

2021

Source: Created by Kawai based on “Global Piano Market 2024-2028, Technavio (2023)”

2022

2023

2024

2025

2026

2027

2028

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Kawai’s Keyboard Instrument Sales (Global)
Over the past six years, sales of keyboard instruments have grown at an annual average rate of 10%.
(Million yen)

60,000CAGR 10.0%

50,00048,15540,00029,86230,00020,00010,0000March 2018

Source: Kawai’s financial data

March 2019

March 2020

March 2021

Acoustic pianos

Digital pianos

March 2022

March 202315

Kawai’s Sales Market Share of Keyboard Instruments (Based on Global Units)
In the last six years, the global market share of both acoustic and digital pianos has increased.

Acoustic pianos

Digital pianos

20%

20%

18%

18%

16%

16%

14%

14%

12%

12%

10%

10%

8%

8%

6%

6%

4%

4%

2%

2%

0%

0%
'18/3

Source: Study by Kawai

'19/3

'20/3

'21/3

'22/3

'23/3

'18/3

'19/3

'20/3

'21/3

'22/3

'23/3

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Factors Contributing to Increasing Market Share in the Keyboard Instrument Market (Our Strength)
Kawai's strength lies in the strength of our products, which have pursued substantial quality improvement,
and in the corporate culture that enables us to do so.

Acoustic pianos

Digital pianos

The highest quality pianos
chosen on the world stage

The digital pianos closest toa grand piano

Unique corporate culture enabling the above

Tradition

Innovation

Specialization17

Factors Contributing to Increasing Market Share in the Keyboard Instrument Market―Tradition―
We maintain a unique culture as pioneers in piano production, a long-established brand in the keyboard instrument
industry, and a company with approximately 100 years of management by three generations of the Kawai family.

１

Koichi Kawai, the founder of the company, was the first person in
Japan to develop keyboard actions, the central part of the piano.
Since then, we have been pioneers in piano production with athorough focus on quality.
The first keyboard action

2

Present-day action

Kawai is an established company in the industry that has been
producing pianos for approximately 100 years and electronic
musical instruments for more than 60 years.
First-generation acoustic piano First-generation electronic organ

3

Since the company’s establishment in 1927, the baton of leadershiphas been passed down through three generations of the Kawai family.
We have continued to improve the quality of products based on
consistent policy while inheriting the founder’s spirit of piano
production from generation to generation.
First generation:
Koichi Kawai

Second generation:
Shigeru Kawai

Third generation:
Hirotaka Kawai

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Factors Contributing to Increasing Market Share in the Keyboard Instrument Market―Innovation―
To date, Kawai has made numerous innovations in the keyboard instrument industry and continued to pursue
substantial improvements in product quality.

action material in the center of the piano was changed from
１ Thewood to carbon fiber to improve both operability and durability.

23Parts using carbon fibre

Ultra-Responsive Action

Seesaw wooden keyboard

CA901

Digital pianos are equipped with a seesaw wooden keyboard thatmakes the touch as acoustic piano-like as possible.

Kawai developed the Shigeru Kawai grand piano, described as a“piano that sings” by the world's top pianists.
It combines craftsmanship with the latest technology.
Shigeru Kawai SK-EXShigeru Kawai Piano Laboratory 19

Factors Contributing to Increasing Market Share in the Keyboard Instrument Market―Specialization―
Kawai continuously improves our brand power through intensive investment of people, goods, and money, made possible
only by specializing in keyboard instruments (acoustic pianos and digital pianos).

specialize in the manufacturing of keyboard instruments,
１ We
instruments, which account for 85% of our musical instrument sales.

2

We develop and manufacture a diverse range of keyboard
instruments, from concert grand pianos to digital pianos, withparticular attention to quality.

3

We actively participate in influential international pianocompetitions and strengthen relationships with artists.

85％

Keyboard instruments

Other musical instruments

20