KAYABA Group Report 2023
April 1, 2022 – March 31, 2023

Contact

World Trade Center Bldg., South Tower 28F,
4-1, Hamamatsu-cho 2-chome,Minato-ku, Tokyo 105-5128, Japan
Tel. +81-3-3435-3511
Fax. +81-3-3436-6759

What You’ll Find in the KAYABA Group Report

Contents01	What You’ll Find in the KAYABA Group Report
Reporting Period
FY2022 (April 1, 2022 to March 31, 2023)
Note: Includes some activities andinformation from outside the above reporting
period.
Scope
The report covers KYB Corporation andsubsidiaries and affiliates in Japan andaround the world.
Note: E nvironmental data is for KYB
Corporation (Sagami Plant, Kumagaya
Plant, Gifu North Plant, Gifu SouthPlant, Gifu East Plant, and Mie Plant)
unless otherwise annotated.

To our stakeholders
Based on “Our Promise,” which is aimed at accomplishing our Corporate Spirit, we put together the KAYABA Group
Corporate Guiding Principles: a set of specific rules that are to be observed in everyday work and company life. Ourbasic stance toward our efforts to create a better society is indicated by these Principles. They apply to all people whowork at the KAYABA Group, who are required to act in accordance with the Principles.

Forward-Looking Statements
This report includes plans and forecasts asof the issue date, and estimates based on
our business plans and management
policies. Forward-looking statements arebased on information available at the time ofreport preparation, and actual results may
differ depending on changes in relevantconditions.

To our customers
We will provide our customers withsafe, quality goods and services
through our outstanding technology
and skill to gain their satisfaction andtrust.

To our suppliersWe will commit ourselves to holdtransparent, free and fair competition

To society and environment
We will contribute ourselves to thesociety, as good corporate citizens,giving the first priority to the safety
and environment and balancing withthe local communities.
Every one of us
We will comply with the laws, respecting mutual personality andindividual person’s sense of value, andtry to make the workplaces full of thecreativity and inclusion.

https://www.kyb.co.jp/english/index.html

Social conventions,etiquette, morals
Company regulations/ rulesLaws, regulations

Cover DesignThe design expresses the shape of our company
as we move into the future by fusing KAYABA’s
core technology with electrification. It symbolizes how we are evolving with the times while
carrying the spirit of our founder and hisenduring drive to “explore technology” inside ourcorporate DNA.

07
09
11Value Creation
14 Human Resources Strategy			 14 Human Resource Development			 16 Health Management			 19 Health and Safety
20 Monozukuri Strategy			 20 Technology / Manufacturing			 23 Quality			 24 Intellectual Property Activitie
25 Management Strategy			 25 ESG Management			 26 Corporate Governance			 33 Internal Control / Compliance			 34 Risk Management			 35 Environmental Preservation			 43 Supply Chain Management
Business Strategy

Basic principles for actions

464751
55

Investor Relations
For reports on our IR activities
such as management strategy,
financial affairs, and performance.

SNS (Japanese only)
Products

Message from the CEO
2023 Medium-Term Management Plan
KAYABA’s Significance for the Future

Our Three Mainstay Business Units
Automotive Components Operations
Hydraulic Components Operations
Special-Purpose Vehicles Division
Data

Corporate Website

Ethics, honesty

Strategy

Business Strategy

To our shareholders
We will run the Company with transparent and high-quality management,
striving to achieve the appropriate
result, and enhancing the degree ofmutual understanding and satisfaction
by our shareholders.

to establish the mutual trust and fairdeals.

The Origin of KAYABAKAYABA Products in Daily Life Today
The Year at KAYABA

Value Creation

Our commitment

030505Strategy

Date of Issue
November 2023

Overview

Overview

KYB Corporation (hereinafter “KAYABA“) has been issuing its Group Report since FY2019. It provides information on our management policies, business strategies, and CSR activities to our shareholders, investors, andall our stakeholders. It serves as an introduction to KAYABA for stakeholders of all kinds. We hope the reportwill help you understand and get excited about KAYABA’s future prospects and our mission: to pave the roadto an affluent future on the foundation of the history that we have built. And we’d be grateful if that inspires
you to support us over the long term. Going forward, we’ll be taking our stakeholders opinions on board in
our efforts to make this report better and easier to understand.
If you want to learn more about who we are and what we do, please check our corporate website, whereyou’ll find press releases and a range of other reports including technology and environmental reports.

Data5761636566

KAYABA Performance Highlights
11-Years Financial Summary
KAYABA in Globe
External Evaluations (FY2022)
Company Overview / Stock Information

For reports on our products
which support safety andcomfort in a wide range ofindustries.

Sponsorship (Japanese only)
For reports on motorsports,
including information on
support and sponsorship forvarious races.

01

KAYABA Group Report 2023

KAYABA Group Report 2023

02

Overview

The Origin of KAYABA

A Pioneer in Hydraulic TechnologyOverview

104Years
Since Our Founding

An Ongoing

At the dawn of the 1900s, our founder Shiro Kayaba wrote the first pagein the history of our company when he took an early interest in hydraulics, a then-new technology created in Europe. In 1919, at the age of 21, hefounded the Kayaba Research Center. It invented and made proposals formany high-performance hydraulic products that surpassed even those
produced in Germany and England, racking up 100 patents. The Center
laid a foundation as the pioneer of hydraulic technology in Japan, and it
led to the development of the modern-day KAYABA Group.

Determination

Lateral Cable Hydraulic Control
DeviceSA for Jeeps

SA Applications (1951)

First special-purpose vehicle
product (1953)

Origin of the Hydraulic Cylinder(1958)

Foundation as an Integrated
Hydraulics Manufacturer (1962)

Hydraulic support pillar for mining

Cylinder for Hydraulic Excavators

Data

First SA (1946)

Designed by our founder, this symbol
was inspired by the mystery that isthe birth of our universe, and represents the Company’s foundational
spirit and ideal management style.
The large circle in the middle represents a revolving heavenly body,and the three small circles are newsatellites being born. They stand forthe three values of vitality, love andcreativity. We started using it as ourcompany emblem again in 2022, theyear in which we returned to thebasics.

Business Strategy

Our First Hydraulic Product (1919)

Our Company Emblem Represents
Our Founder’s Values

Value Creation

EpisodeStrategy

Invention of the Hydraulic Damper for Aircraft
In 1935, Shiro Kayaba founded Kayaba Manufacturing Co., Ltd., where he invented
the predecessor to the automotive shock absorber, the hydraulic damper (oleo strut)
for aircraft. This invention set the course for KAYABA’s current hydraulic technology,
which can accurately control machinery that exerts several tons of force and absorb
vibration to the optimum levels.

Shiro Kayaba left behind these messages: “The development of new technology is the foundation forcorporate growth,” “Get deeply involved, and continue
your research without giving up.” Our founder dedicatedhis entire life to inventing and researching. And we carryon his spirit of determination today and into the future.
We encourage it through the Shiro Kayaba Award,
which recognizes those who contribute to technicalstandards and performance, and the Technology
Presentation and Exhibition, which seeks to evolve
technology further.
We believe that workplaces charged with positiveenergy can bring happiness to people all over the world
and deliver monozukuri (manufacturing skill) that contributes to a better society.

The takeoff and landing of fighter planes
presented a difficult issue—one thatcould cost human lives. This groundbreaking design was aimed at solving
that problem using entirely remote-controlled hydraulic equipment. At first,
however, the product faced resistance.
Shiro Kayaba repeatedly made a passionate defense of the product, stating “Thisis exactly the ideal device. It’s a unique
way and it’s simply the best way.” In1926, it became the first braking system
to be installed on an aircraft carrier.

03

KAYABA Group Report 2023

Directly following WWII in the latter halfof 1946, the Company started researchand development on a new productcalled a shock absorber (SA) in collaboration with automobile manufacturers.
The Company would receive an order for
4,000 SA for use in the jeeps of the U.S.
forces. Following that, the growing
popularity of automobiles would cause
the share of the product to expand.

Oil Damper for Railways

In 1951, The Company began development of oil dampeners for railways carsin collaboration with Japanese National
Railways (now the Japan Railways
Group). We have established a strong
customer base with a variety of partners
including automobile manufacturers,
motorcycle makers and construction
machinery companies.

High-Low Type Concrete Mixers

In 1953, the Company began assembling
and mounting the high-low type concrete mixers imported by Fuji BussanCo., Ltd. from CTM in the United States
onto trucks. This was the start of theshift to domestic production of concretemixer trucks. In 1959, produc¬tion beganon the ground-breaking “tilting mixertruck,” which has a drum portion that
could rotate, thereby using gravitational
pull to agitate fresh concrete.

In 1958, the technology for hydraulicsupport pillars for mining entered Japan
from England. By 1964, the product had
taken the industry by storm due to atechnological improvement to thepacking structure, with 4,000 units
produced that year.
The sealing and pipe welding structuretechnologies in hydraulic support pillars
were applied to construction machineryand industrial equipment, leading to thedevelopment of devices. KAYABAovercame various difficulties to create
our own proprietary sealing technology.

In 1959, we set to work building ourfoundation as an integrated hydraulics
manufacturer, starting with full-scale
engagement in hydraulic equipment for
general machinery. KAYABA’s construction machinery products didn’t leak oilfrom the rods and were competitively
priced, putting them in the spotlight for
both construction machinery andindustrial equipment industries.
Since November of 1962, we received
customer orders in rapid succession,
and we set up a mass production
system for cylinders at Gifu Plant.

KAYABA Group Report 202304

Overview

KAYABA Products in Daily Life Today

Offering Added Value to Society with Three Mainstay Businesses

AC Operations

p. 47

Our InheritedDNA

As experts in hydraulics, we use various kinds of digital technology togenerate new ideas and businesses as well as improve quality and productivity, and continue creating products that can contribute to the society ofthe future.

Agricultural Machinery

Construction
Machineryp. 51

Special-purpose
VehiclesMotorcycle
Components

p. 55

e-Mixer III / Touch panel monitor

Marine Equipment

Spool stroke sensor

Adjustable damping shock absorbers
with proportional solenoid

High voltage cylinder KCH

Business Strategy Special-Purpose
Vehicles Div.

Shock Absorbers for Automobiles

Japan’s first automotive shock absorber. The high voltage cylinder KCH,
which has become the global standard in the hydraulic excavator
industry. Beating the competition to
the first CAE analytical technology(support for design development
through computer use). The development of our environmentally friendly
cement mixer. Time and again,
KAYABA has offered industry-first,
high added value products.
In the near future, KAYABA will
incorporate digital transformation(DX) technology that will change theway we use our over 100 years ofrecords and know-how, evolve
through the use of big data, and accelerate our provision of high added
value products.

Value Creation

AutomotiveComponents

Strategy

Bringing High Added Valueto Products

Railroad Equipment

HC Operations

Overview

We carry on the spirit of our founder’s restless pursuit of creativity to this day. Our many products based on
our technological prowess support modern life from behind the scenes. Our Automotive Components (AC)Operations supports the vehicles that transport people every day, while Hydraulic Components (HC)Operations helps with the infrastructure our lifestyles need. Along with our Special-Purpose Vehicles Division,these three mainstay businesses will continue contributing to society through offering the products that are
essential to people’s daily lives.

The Year at KAYABA

05April	Common company name changed to“KAYABA” in Japan		 Started rally project		 Purchasing Policy Briefing (held online)
May Shiro Kayaba Awards		Briefing held for smart road monitoring
system technology		 Financial Results BriefingJune	Annual Shareholders' Meeting
September	Production Technology Block Presentation
October	Compliance Enhancement Month		 National Trade Skill Test & Certification		Hydraulic & Electronic Technology BlockPresentation

KAYABA Group Report 2023

November	Quality Month		Companywide Small Group Activity
Presentation (Production Division-Related)		 Automobile Technology Block Presentation
December	The Companywide Technology Presentation		 Development Product Testing Meeting2023

Data2022

January	First announcement of mobile home
(Tokyo Auto Salon)
February TCFD approval		 KAYABA Rally Team makes its debut		Companywide Small Group Activity
Presentation (Offices, Sales, Administration
Departments)
March	Certified as FY2022 Health and Productivity
Management Organization 2023

KAYABA Group Report 2023

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