Value Creation Story

Social Activities

Development of Technologies and Products Contribute to Improve Safety and Security●LED Headlamps■Evolution of light sources

KOITO has been developing high-output andhigh-performance light sources to create headlamps thatprovide brighter light to greater distances for safenighttime driving.
LED headlamps are KOITOʼs main products. They help
drivers to gain clear night views as they are bright, turn on
instantly and are close to daylight. KOITO is also
developing laser headlamps to further improve distancevisibility.

Luminous ﬂux (lm)
10 4

Gas discharge
bulb

LED

Halogen bulb

10 3

Semi-sealed
beam

Sealed beam

Incandescent bulb

10 2
10 1
10 0

Acetylene
gas lamp
Kerosene
lamp

Candle●Adaptive Driving Beam (ADB)

Semi-sealed beam
headlamp

1900

Sealed beam
headlamp

Halogenheadlamp

1940

1960

1920

Gas discharge
headlamp

1980

LED headlamp

2000

2020 (CY)■Image of ADB photometry

48

KOITO INTEGRATED REPORT 2022

The KOITO Group declares in the KOITO Group Corporate Behavior Charter that “we will gain customersʼ satisfaction andtrust through developing and providing safe and high-quality products and services,” and identiﬁed “enhancement of
product quality” as one of our materiality. We strive to create products with a customer-ﬁrst attitude to maintain andfurther improve quality of all products and services we provide to our customers.
The KOITO Group is utilizing its Quality Management System (QMS) to maintain and supervise the quality level in all
kinds of departments, from development to production.
We will continue quality assurance activities to meet the situations in various countries or regions and will keep
contributing to materialize a sustainable society through maintenance and improvement of the product quality.

Quality Management Structure
KOITO has established a quality management system
based on ISO 9001 and IATF 16949 which areinternational standards to ensure seamless operations.
Internal Quality Audits with the Quality AssuranceManager as the chair are conducted at least once a year
to make decisions on the quality management aspects
and to monitor the quality management status of theentire KOITO Group.
The progress of these activities is reported to theBoard of Directors and the Managing Committee byDirector or Corporate Ofﬁcer who are in charge of
Quality Assurance Department to reinforce themanagement system through monitoring by the
management. KOITO is building a system to ﬁnd thecauses of any defects found and implement prevention
measures in case any defects are found through quality
tests and evaluations.

■Quality Management System

The KOITO Group
Customer-ﬁrst Production
KOITO
MANUFACTURING

The Board of Directors /Managing Committee
ReportDirection
Requests,
comments

Quality Assurance Department
Quality audit

Quality meeting

Prevention of recurrence

Quality monitoring

System reinforcement

Quality improvement activity

Production
sites

Engineering
Headquarters

Overseas Subsidiaries

Procurement
Headquarters

Management
Divisions

High-quality
products andservices

Domestic Subsidiaries

High-beam lighting range

Acquisition of Quality Management System Certiﬁcates
The table on the right is a list of Group companies,
including overseas subsidiaries, that have acquired
ISO 9001 or IATF 16949.
All the subsidiaries and departments of KOITO willcontinue to carry out a thorough PDCA cycle, andensure product safety and quality throughenhancement of the quality management system.

Please refer to the Growth Strategies from P.18
to P.19 of this report.

The number of trafﬁc accident deaths in Japan is about
3,000 per year. Among them, fatal accidents occur mostfrequently at dusk, from 17 to 19 oʼclock, and in particular,“vehicle-to-pedestrian” accidents occur two to four times
larger than those in daytime. It can be inferred that
deterioration of driversʼ visibility can be one of the causes
for trafﬁc accidents with pedestrians. In addition, ananalysis of “vehicle-to-pedestrian” fatal accidents
occurrence shows that a considerable number of accidents
were likely to have been avoided if the driver had utilized
high beam.
High beam, which allows drivers to detect pedestrians
from a greater distance, is effective in preventing trafﬁc
accidents in dark driving conditions.

Corporate Information

Customers

The KOITO Groupʼs basic management policy is to create customer needs and contribute to the progress of society,guided by the theme of “Light.” Identifying “reduction of trafﬁc accidents” as one of our materiality, the KOITO Groupdevelops products which contribute to materialize a safe and secured automotive society under our corporate message“Lighting for Your Safety.”
To further improve the performance of LED headlamps and ADBs, we are also promoting R&D activities on Advanced
Driving Assistance System (ADAS), next-generation lamps and various sensors (LiDAR, cameras, etc.) which arecompatible with autonomous driving.
The KOITO Group will continue to contribute to the improvement of safety and security in an automotive society
through developing and supplying safe and high-quality products and services using our technologies.

High Beam Contributes to
Reduce Accident Mortality

ESG Activities

Quality and Product Safety

Activities to Improve Safety and Security

KOITO has developed a headlamp system called Adaptive
Driving Beam (ADB) that automatically controls the light
distribution pattern of the high beam and ensures wide
front visibility for drivers by enabling driving with highbeams all the time while preventing preceding or
oncoming vehicles from glare.
In addition, KOITO is conducting R&D activities on ADB
to further improve safety during nighttime driving by
providing ﬁner light distribution.

Business Overview■Number of “vehicle-to-pedestrian” death accidents bytime period (2015‒2019 cumulative)
Daytime(excluding dusk)

Nighttime

153

AoitecNorth American Lighting Mexico (Mexico)

Shizuokadenso

Koito Europe (U.K.)

Nissei Industries

Koito Czech (Czech Republic)

Fujieda Auto Lighting

GUANGZHOU KOITO (China)

Shizuoka Wire Harness

Hubei Koito (China)

KOITO ELECTRIC INDUSTRIESFUZHOU KOITO TAYIH (China)
THAI KOITO (Thailand)
INDONESIA KOITO (Indonesia)
Ta Yih Industrial (Taiwan)
INDIA JAPAN LIGHTING (India)

295.2
595

(Cases) 0

100

200

300

400

500

600

■Probability of collision avoidance by high beam

126

（56%）

IATF 16949
North American Lighting (U.S.A.)

Approx. 4 times

Dusk

99

ISO 9001
KOITO KYUSHUApprox. 2 times(excluding dusk)（44%）■Environmental certiﬁcation acquired in the KOITO Group■Accidents that are likely to havebeen avoided■Accidents with a low probabilityof collision avoidance
225 (cases) in total*Prepared based on the National Police Agencyʼs “Prevention of Nighttime
Pedestrians Accidents through the Advanced Use of High Beam”
https://www.npa.go.jp/bureau/trafﬁc/anzen/highbeam.html

Efforts in Quality Improvement
KOITO provides job rank-based quality education for new employees,
managers and supervisors. In addition, KOITO holds training session on SQC(Statistical Quality Control) for design and development engineers to improvetheir knowledge on quality management.
Furthermore, the QC circle activities and improvement presentation sessions(FQC Meeting, Staff QC Meeting and others) are being held periodically to
improve quality management activities.
KOITO will continue to enrich activities on training and education to further
improve quality management.

■ Staff QC Meeting (2019)

KOITO INTEGRATED REPORT 2022 49

Value Creation Story

Business Overview

ESG Activities

Supply Chain Management

Human Resource Management

KOITO believes that it is important to fulﬁll its social responsibility throughout the entire supply chain to practice“Eco-friendly Manufacturing for People and the Earth” through all business activities. Therefore, we have established theProcurement Policy to respond to social demands and expectations and deliver high quality service to our customers
while cooperating with suppliers.
KOITO is also presenting expectations on the cost, quality and the elimination of industrial accidents to each supplier toachieve goals together.
For Procurement Policy, please refer to our Supply Chain
We are aiming to materialize a sustainable societyManagement website.
throughout the entire supply chain while cherishing theclose relationship with our suppliers.
URL: https://www.koito.co.jp/english/csr/social/supplychain.html

KOITO has identiﬁed “human resource development,” “healthy and safe working environment,” “workstyle reform” and“protection of human rights” as part of our materiality. With the keywords of “communication and collaboration,” KOITO
encourages every employee to share their knowledge, experience, ﬁndings and problem awareness through various
means to build energetic worksites where every member can work on tackling problems.
Please refer to the Human Resource Strategy from P.24 to P.25 of this repor t.

Personnel Data

Initiatives to Strengthen Cooperation with Business Partners and Promote Co-existence and Co-prosperity
In March 2022, KOITO formulated and announced its Declaration of Partnership Building
to strengthen collaboration with our business partners and promote mutual prosperity, as
well as to contribute to sustainable growth of the society throughout the supply chain.
The following individual items are clearly indicated as KOITOʼs initiatives in the declaration.

(KOITO MANUFACTURING)FY 2019

Total workforce●We will Strengthen collaboration with other companies to accelerate open
innovation in order to respond to the transformation of automobiles and mobility.
●We will promote information sharing and digitization using IT to improve operational efﬁciency with related
business partners.

Reinforcement of CSR in the Supply Chain
KOITO holds annual Procurement Policy Brieﬁng Session
and monthly Supplier Information Liaison Meetings andother opportunities to help our suppliers understand our CSR
initiatives. We are also providing consultation as necessary.
At the Procurement Policy Brieﬁng Session, we share policies
on sales, technology, production, quality and other matters,
and also ask our suppliers to thoroughly comply with laws
and regulations. We have established a system for suppliers
so that they can inform us and promote compliance in theevent of their violating the law.
In addition, we encourage our suppliers to actively acquire
environmental certiﬁcation, and check the status ofcertiﬁcation every year. In FY 2022, approximately 430
suppliers were eligible for the survey. During ﬁre and disasterprevention inspections to our suppliers, KOITO also conﬁrms［KOITOʼs CSR activities］①Measures based on the “Guideline for the Right Transactionof Automobile Industry”②Continuous investigation on the inclusion of environmental
impact substances③Continuous annual investigation on conﬂict minerals④Thorough compliance with laws and regulations
concerning human rights and labor⑤Thorough implementation of compliance issues in general(Concluding contracts to eliminate anti-social forces, etc.)

Regularrecruitment

the management system or the amount of organic solventsused by suppliers. In the event that there is a problem with
suppliersʼ management system or others, we request them tosubmit an improvement plan and supporting their measures.
As for suppliers who conduct business with the KOITO
Group, we ask them to implement environmental and social
measures to materialize a sustainable supply chain.
In addition, we are conﬁrming some of our suppliersʼ
implementation status of overall CSR activities, including
quality, human rights, environment, compliance and others.

［ Environmental requests ］

・Acquire external environmental certiﬁcations such as ISO
14001 and Eco-Action 21
・Ban the use of certain materials under RoHS Directive
・Ensure transparency on substances under REACH Regulation
・Ensure traceability of nanomaterials contained in products
・Formulate environmental policies covering the automobile
industryʼs key challenges［ Social requests ］

・Abolish child labor, forced labor and discrimination
・Promote occupational safety and health・Secure decent wages and working hours
・Prevent other inhuman behaviors
・Conduct responsible procurement of minerals

Measures on Conﬂict Minerals
It has become an international concern that some minerals mined in the Democratic Republic of the Congo and nearby
nations have been the source of ﬁnancing for armed forces engaging in human rights violations. The United Statesdeﬁned four types of minerals of tin, tantalum, tungsten and gold produced in these regions as “conﬂict minerals” in the
Dodd-Frank Wall Street Reform and Consumer Protection Act and mandated annual investigations of the use of theseminerals and disclose the information.
KOITO avoids the use of conﬂict minerals along with its suppliers by conducting annual investigations on conﬂict
minerals not to assist human rights violations and environmental destruction and to fulﬁll its social responsibility
throughout the supply chain. When starting business with a new supplier, we carefully examine the results of conﬂict
minerals investigations and consider the feasibility of conducting such transactions.

50

Corporate Information

KOITO INTEGRATED REPORT 2022

FY 2022

3,534

3,471

3,551

3,570

Female

907

908

912

883

Total

4,378

4,459

4,482

4,417

Total (male and female)

Practical
positions

Total (male and female)

Ratio of female
Total (male and female)
Ratio of female
Ratio of female

17

19

25

0

47.0%

52.6%

32.0%

0.0%

71

81

70

27

7.0%

12.3%

8.6%

11.1%

43

47

47

24

25.6%

31.9%

29.8%

20.8%

131

147

142

51

18.3%

23.8%

19.7%

15.7%

Male

580

582

607

612

Female

6

6

8

9

1.3%

1.4%

Total (male and female)
Ratio of female

Number of employment ofstaff with a disability

FY 2021

Male

Generaladministrative
positions
Generaltechnical
positions

Number of employees
in senior management

FY 2020

Ratio of female
Ratio

1.0%

1.0%

80

85

84

82

2.27%

2.37%

2.31%

2.25%

19.7%

17.9%

17.7%

15.9%

Male

19.7

19.2

19.3

19.6

Female

21.8

21.3

21.5

21.7

Total

20.0

19.6

19.7

20.0

Senior management

91.7%

88.9%

100.0%

93.3%

Union members

75.4%

77.5%

85.7%

81.4%

Total

78.3%

79.4%

88.5%

84.3%

1.1%

1.1%

1.1%

1.6%

2,044.0

1,998.5

2,324.1

2,064.0

Monthly average overtime hours

23.7

20.6

9.9

9.3

Number of paid leave per employees

16.0

16.2

14.7

16.5

77.3%

78.2%

70.8%

82.5%

34

33

28

Ratio of dispatched employees
Average years employed by
the company

Re-employment ratio

Employee turnover rate (voluntary resignation)
Working hours

Paid leave taken
Number of employees taking maternity leave
Number of employees
taking child care leave
Number of employees
working reduced hours toaccommodate childcare
Number of employees using
taking family-care leave

37

Male

4

4

14

25

Female

59

58

65

65

Total

63

62

79

90

Male

1

1

0

2

Female

58

61

54

67

Total

59

62

54

69

Male

0

0

0

3

Female

3

0

1

2

Total

3

0

1

5

63,18175,24142,96044,953
10.2

Employee training time (hours)
Average training time per employee

14.4

16.9

9.6

Number of employees taking mental health training

1,028

682

239

243

Labor union membership rate

95.4%

98.3%

98.8%

98.1%

KOITO INTEGRATED REPORT 2022 51

Value Creation Story

Occupational Safety and Health
KOITO adopts “Safety comes ﬁrst” as the basic approachto safety and health and aims to create the safe, secure,and comfortable work environment with the participationof all employees. Five Safety Rules are also set as thestandard actions to follow in all activities that are to bepracticed by the entire Group.
The Safe and Environmental Committee chaired by the
Representative Director meets monthly to discuss policies
on employee safety and health measures, including
measures to prevent and recur problems or accidents, aswell as other important issues. The matters discussed at
the Safe and Environmental Committee are presented toevery employee through the Safe and Health Committee,
and the Safe and Environmental Committee of eachproduction site, or the worksite safety meetings
conducted at their worksites.
Targeting all personnel working in the premise, KOITO
repeatedly provides education and accident drills todevelop human resources who follow safety rules andincrease their awareness. We are also conducting risk
assessment and risk detection activities to enhance thesenses to ﬁnd potential risks at the worksites. In addition,
Directors and Managers conduct on-site inspections,
identify unsafe conditions, and take preventive measureswith the goal of zero labor disaster and trafﬁc accidents.

■Process safety total incident rate (lost worktime)
KOITO MANUFACTURING
Electric machinery and equipment
manufacturing industry*

0.6
0.4
0.2
0

0.51

0.58

0.54

0.54

0.52

Corporate Information

2018

2019

0

0

0

2020

2021

2022

Process safety Numbers of workers due to industrial accident
total incident ＝Total working hours
rate

(FY)

●Purchase of ESG Receivables
For fund management, in addition to investment efﬁciency and ratings, we assume the degree of contribution to ESG andsociety as one of the selection criteria. In order to contribute to materialize a sustainable society, KOITO has purchased
green bond and social bond from two organizations in FY 2022.

■Process safety incident severity rate (lost worktime)

0.04
0.03

KOITO MANUFACTURING
Electric machinery and equipment
manufacturing industry*
0.02

0.02

0.01

0.01

0.02
0.01
0

2018

2019

Process safety incident＝
severity rate

KOITO made 100 thousand euros of donations to UNHCR, the UN Refugee Agency, as
support for safety and livelihoods of people who are facing extremely harsh difﬁculties
due to the crisis in Ukraine. The donation will be used to support humanitarian activities
in Ukraine and its neighboring regions through UNHCR.

1,000,000*Source: The Ministry of Health, Labour and Welfare

0.05

To materialize one of our management philosophies, “fostering mutually beneﬁcial relationships with all stakeholders asa member of the society,” we declare in the KOITO Group Corporate Behavior Charter that “we will be conscious of our
responsibility as a good corporate citizen, and actively engage in social contribution activities, and we will contribute to
the realization of a prosperous society.” Based on the statement, we are promoting various activities.

●Donation to Support Humanitarian Efforts in Ukraine and Neighboring Regions

0.18
0.09

0.05

0.01

●Domestic Environmental Beautiﬁcation Activities

0.01

0

0

0

2020

2021

2022

Total lost working hours
Total working hours

(FY)

1,000

Initiatives between Management and Employees
A strong relationship based on mutual trust between management and employees is essential for building the workplaceenvironment where individual employee can make the best use of their capabilities, and maintain and improve highproductivity and motivation.
“KOITO Labor Union,” which consists of 3,878 KOITO employees, is a member of the “JAM Shizuoka.” In principle,
KOITO holds monthly labor-management meetings with KOITO Labor Union to discuss various issues such as businessperformance and labor conditions.
In addition, the labor union regularly conducts a union employee awareness survey on workplaces, operations andcareers targeting all union members. The labor union uses the ﬁndings to improve union activities and recommendations
to KOITO.

Respect for Human Rights
One of our management philosophies is to “stepping forward to realize our employeesʼ dreams,” and we declare in the
KOITO Group Corporate Behavior Charter that “we will respect the human rights of all persons.”
By respecting human rights of all stakeholders while communicating with business partners, local communities andemployees, KOITO strives to be a company that is trusted by international society.
We provide employee education on respecting human rights as a part of compliance education. Training to address
speciﬁc issues, such as harassment training, is offered when necessary to raise every employeeʼs awareness on respecting
human rights.

KOITO INTEGRATED REPORT 2022

ESG Activities

Social Contribution Activities

As part of its efforts for environmental conservation andbiodiversity, KOTIO is conducting activities such as
weeding at Miho-no-Matsubara, the constituent propertyof Mt. Fuji, the global cultural heritage, and cleaning thesurrounding coasts.

*Source: The Ministr y of Health, Labour and Welfare

52

Business Overview■ Weeding at Miho-no-Matsubara(2019)■ Cleanup Activities at Miho-noMatsubara Coast (2019)■ Exchanges with local schools (2019)■ Afforestation activities (2019)■ Summer festival (2019)■ Childrenʼs visiting day (2019)●Overseas Environmental Beautiﬁcation Activities
India Japan Lighting Private Limited (IJL) strives tobeautify and protect the environment by holding
exchange meetings and cleaning activities with local
residents.

●Participation in Regional Activities at Production Sites
KOITOʼs production sites periodically holds roundtablesessions with residents of regional communities and open
the sites to local community associations during summer
festivals.
We also host site tours for the residents and accept
childrenʼs visits so that they can better understand our
corporate activities.

Stakeholder Engagement
KOITO declares in the KOITO Group Corporate Behavior Charter that “we will disclose corporate information in an
appropriate, effective, and fair manner and engage in constructive dialogue.” In order to achieve our sustainable growthand increase corporate value over the medium- to long-term, we engage in constructive dialogue while fairly providing
accurate information to our shareholders and investors.
In FY 2022, KOITO held the 121st Ordinary General Meeting of Shareholders and an earnings release conference forsecurities analysts and institutional investors. At the earnings release conference, we explained our Groupʼs performance(results and plans), and received many questions and comments from the participants. Furthermore, we held a total of
approximately 220 individual meetings with institutional investors. In principle, a Director participates in all meetings.
The content of the meetings and comments or requests received from investors are reported to the top management,
Directors and Corporate Ofﬁcers, and reported to the Board of Directors. We are utilizing the knowledge gained from ourdialogue to improve our management activities.

KOITO INTEGRATED REPORT 2022 53