Value Creation Story

Business Overview

ESG Activities

Corporate Information

Financial Strategy

Aiming to build foundations for sustainable growth andenhance our corporate value
With regard to dividends, based on our basic policy of paying
stable and continuous dividends, we comprehensively consider our business performance and the business climate,aiming for a dividend payout ratio of 30%.
Despite our business climate remains uncer tain due toissues such as COVID-19 and a shortage of semiconductors,
we will work to make steady improvements in considerationof our business performance and the business climate, while
being conscious of a 30 % dividend payout ratio in themedium- to long-term perspectives.

Capital Policy
KOITO aims to build a foundation for medium- to long-termsustainable growth and increase corporate value throughout
management which is mindful of capital costs.
We are striving to strengthen our earnings structure byplacing more emphasis on ﬁnancial indicators such as operating income and recurring proﬁt rather than on net sales.
Although we have not set targets for return on equity (ROE)and other factors, we have achieved a consolidated operating
income ratio of between 11% and 12% around FY 2018 and2019, when global automobile production was robust, andwe are working to achieve these levels.
The current business climate is challenging due to factors
such as COVID-19 and the semiconductor shortage. However, we are working to improve our proﬁtability so that we canﬁrst secure an operating proﬁt ratio of 10% and achieve evenhigher ratio in line with the future recovery in the global
automobile production volume.
■Consolidated business results(million yen)

FY 2019FY 2020

FY 2021

FY 2022Net sales

826,257

800,928

706,376760,719

Operating income

101,534

82,411

56,70753,434

12.3%

10.3%

8.0%

7.0%

Operating income ratio
Recurring proﬁt

105,494

85,264

61,10760,613Proﬁt attributable to owners of parent

72,89558,022

37,612

38,340Total assets

738,175

729,715

782,163855,237

Cash and time deposits

287,803271,774

303,887

323,943

Net assets

503,564

513,524

569,438

627,315

16.7%

12.3%

7.4%

6.8%

Return on equity (ROE)■Non-consolidated business resultsFY 2019

FY 2020

FY 2021

FY 2022Net sales

364,104

356,505

312,201

294,463
743,000

Operating income

38,34625,574

21,13817,76052,000

10.5%

7.2%

6.8%

6.0%
7.0%

Recurring proﬁt

56,652

46,71338,18538,41656,000Net income

44,132

41,64438,04823,25335,000Total assets

419,791

430,006

469,849

475,170

Cash and time deposits

188,097

178,200

194,086

203,659

Net assets

303,560

324,311

365,178

379,654

15.2%

13.3%

11.0%

6.2%

Operating income ratio

Return on equity (ROE)

22(million yen)

KOITO INTEGRATED REPORT 2022

■Dividend amounts
Year-end dividendInterim dividend
Consolidated dividend payout ratio(yen)100（%）

50

92
52Senior Managing Director,
Finance & Accounting Headquarters

Hideharu Konagaya

80
60
40

Shareholder Return Policy

20

With the aim of returning proﬁts to shareholders andenhancing corporate value over the me dium- tolong-term, KOITO believes that we should allocate
funds to capital investment, R&D investment, andstrategic M& A investment that will contribute tofuture growth of the KOITO Group. In terms of ourshareholder composition, in par ticular, the ratio ofshareholders who hold and invest shares over themedium- to long-term is increasing both domesticallyand overseas, and we are expected to improve total
returns over the medium- to long-term, ranging fromﬁve to seven years. We intend to continue to invest in
capital expenditures in response to the increase inorders and in R&D investments in ADB, sensor-related
and other areas.

0In FY 2022, in addition to initial investment of $50
million, we have made an additional investment of $50million to Cepton, a company that had been developing LiDAR in collaboration with the KOITO Group.
We will continue to invest aggressively in companies
that possess technologies that contribute to themedium- to long-term growth of the KOITO Group.

40

72
20

20.3
40

19.9

30

21.4

20

2019

2020

30

54

50
30

52

2021

22.6

20

24

10

2022 (FY)

Toward the Medium- to Long-Term
Growth of the KOITO Group
Looking forward to the KOITO Groupʼs medium- to long-term
growth, we need to accelerate our efforts in digital transformation (DX) and carbon neutrality, in addition to developing
advanced technologies for LiDAR, cameras, and other sensors
compatible with CASE (connectivity, autonomous driving,
sharing and electric vehicles).
In particular, with regard to the development of advanced
technologies, we believe that collaboration with other companies are also important in the ﬁelds of autonomous driving,next-generation mobility, AI and IoT. Through the Silicon
Valley Lab in the U.S. and funds in Israel, we are exploring not
only sensors, but also new technologies related to smar t
street lights and trafﬁc signals on a global basis, and scrutinizing and discussing the information. If there are good technologies or projects that contribute to the growth of the KOITO
Group, we will actively consider collaborations and alliances,including M&A.
Going forward, we will continue to use the generated funds
to build a foundation for growth that can continue to increase
corporate value even in an uncertain business climate, andachieving medium- to long-term and sustainable growth.

Enhancingshareholder value
and shareholder
returns0(million yen)

Net income (consolidated)
Net income per share

FY 2019

FY 2020

FY 2021

FY 2022

72,89558,022

37,612

38,340¥453.52¥360.99¥234.00¥238.53

Total amount of dividends

14,787

11,572

8,036

8,679

Dividend per share

¥92

¥72

¥50

¥54

Interim dividend

¥40

¥52

¥20

¥24

Year-end dividend

¥52

¥20

¥30

¥30

Consolidated dividend payout ratio

20.3%

19.9%

21.4%

22.6%

Expandingsales andproﬁts

Medium- tolong-term growth
Growthinvestment

KOITO INTEGRATED REPORT 2022 23