Value Creation Story

Business Overview

ESG Activities

Corporate Information

Growth Strategies

Strategy 1 Development of Advanced Technologies

LiDAR
We are promoting product development that combines the KOITO Groupʼs lighting technologies and technologies onproduct design and mass production that we have cultivated over the years with external collaborative organizationsʼadvanced LiDAR technologies.
KOITOʼs LiDAR, which uses the MMTTM (Micro Motion Technology) method of Cepton, Inc. (Cepton), achieves superior
detection capabilities and is scheduled to be commercialized in 2023. We are currently working to ensure the reliability
and improve productivity of products required for automotive sensors.

Looking forward the coming autonomous driving society, theKOITO Group aims to materialize a safe and secure automobilesociety by enhancing the performance of ADB (Adaptive DrivingBeam), developing sensing technologies for LiDAR and cameras,
products based on our lighting technologies, and smart infrastructure technologies.

■Roles of the KOITO Group and Collaborating Organizations in LiDAR Commercialization

Enhancement of ADBʼs Performance
The KOITO Group commercializes ADB, which can keep the driverʼs forward visibility in good condition by automatically control
the light distribution patterns of high beams and enabling drivers
to drive at high beams all times without glaring preceding andoncoming vehicles.
Since our Japanʼs ﬁrst production of ADBs in 2012, we have promoted performance improvement, costs and diversiﬁcation. In
2019, we have commercialized the worldʼs ﬁrst BladeScan TM ADB.
Currently, ADB adoption is expanding in a variety of vehicles,from luxury vehicles to mini vehicles and trucks. In 2022, the useof ADB was legislated in the United States, and expected to accelerate its adoption.
The current BladeScan ADB achieves high-resolution light distribution equivalent to using approximately 300 light sources with
12 LED light sources. To further improve performance, reduceweight and costs, we are striving to commercialize a next-generation BladeScan TM ADB that provides light distribution equivalent
to using 600 LED light sources. We are also promoting the development of high-resolution ADB, which achieves high-level of light
distribution equivalent to several thousand to tens of thousandsof light sources. We are working to further expand ADBʼs adoption
ratio within the KOITO Groupʼs headlamps, with the goal of 20%
in FY 2031.

The KOITO Group
Collaboratingorganization

R&D

Executive Vice President,
Engineering Headquarters

Kenji Arima■ADB penetration targets (Global)
（%）

TM40

2020552021

2022

100

Development of Sensing Technologies
By installing sensors such as LiDAR in the headlamps and rear
combination lamps located at the four corners of the vehicle, efﬁcient 360 sensing around the vehicle can be achieved.
As one of our sensor developments, the KOITO Group is developing a high-precision LiDAR capable of sensing distances of 200to 30 0 meters with high resolution. We are also developing
all-weather cameras capable of accurately detecting objects inbad weather conditions such as heavy rain and snow.
The market scale for these ADAS, LiDARs and cameras for autonomous driving is forecast to grow by approximately 200 times inLiDAR market and 2.5 times in the camera market over ten years
from 2020 to 2030.

18

KOITO INTEGRATED REPORT 2022

2031

(FY)

■Performance of sensors developed by KOITO

LiDAR

All-weathercamera

200m

150m

◯◯Object detection underbad weather condition△Insufﬁcient◯
Detectible

Autonomous driving level

Level 3 and 4

Level 4

Distance measurement
Object detection■Market scale of LiDARs and cameras(Index number)

LiDAR

500

Camera450

400200300

23020010001001215

Production

Development of Products Based on
Our Lighting Technologies

Quality assuranceMarketing■Communication lamp

KOITO is enhancing the added value of lamps by proposing
new products with a theme of “Light,” by utilizing the technologies cultivated in lamps development to peripheral products.
We are aiming to contribute to the safety and security of thesociety by reducing accidents and etc.

5030

Performance evaluation

Communication Lamp
Communication lamps contribute to prevent accidents byquickly transit necessary information, such as vehicle movements and warnings, to surrounding vehicles and pedestrians.

Development of Smart Infrastructure Technologies
KOITO is working with KOITO ELECTRIC INDUSTRIES todevelop smart infrastructures. By installing in-vehicle sensors(LiDAR, cameras, etc.) on trafﬁc infrastructures such as trafﬁclights, those infrastructures enable to detect surrounding trafﬁc conditions and provide information to trafﬁc control systems and surrounding vehicles.
In addition to contributing to safety and security, such as
preventing trafﬁc accidents and alleviating trafﬁc congestion,
the system is expected to contribute to the environment by
reducing CO 2 emissions. We are aiming to commercialize thissystem in 2024.

■Telecommunicating image of smart trafﬁc lights
Smart trafﬁc lights andstreet lights

Trafﬁc controlling center

Trafﬁc controlling system
ControllingPC
Telecommunicationequipment

Surrounding vehicles

Providing information on
vehicles, pedestrians, etc.
in blind spots

Trafﬁc lights

Controlling trafﬁclights according to trafﬁcconditions

Telecommunicationequipment in vehicle

15250

99202020252030(CY)

KOITO INTEGRATED REPORT 2022 19

Value Creation Story

Executive Vice President,
Production Headquarters

Masami Uchiyama

100500Expansion of energy-saving facilities
Enforcement of energy-saving activities
Introduction of renewable energy

Introducing energy saving equipment
Promoting energy-saving activities

2014(Base year)

2017

2020

2022

50% decrease
from FY 2014

50502031(Intermediate target)

Achieve carbon
neutrality byFY 20512051(Final target)(FY)

Reducing CO2 Emissions Considering Product Life Cycle
In order to contribute to materialize a decarbonized society, KOITO is working to reduce CO2 emissions from vehicles. We
are promoting several company-wide activities by promoting productsʼ power conservation, size reduction, and weight
reduction from the development and design phase, as well as introducing energy-saving facilities at production sites.
・Development of high-efﬁcient andpower-saving light sources

Development ・Reduction of the number of parts and weight・Development of plant-based plastics

Procurement

ProductTransportation

20Production

・Procurement of materials and parts withlow environmental impact
・Efﬁciency of logistics in procurement

・Adoption of highly efﬁcient truckvehicles with a large loading capacity
・Improvement in packaging
・Consideration of using EVs and FCVs
for transport vehicles

KOITO INTEGRATED REPORT 2022

Introduction of LED high-beam

150

Integration of low-beamand high-beam

10050on)raneh(7tLEDhLE
D(6tgegeneneraratition)on)titira(5thgenegeLEDLED(4thd(3rLEDon)on)raneranegend(2LEDtion)
titiranege(1stgegecharenisogon)

0LED Headlampʼs Contribution on CO2 Reduction

Index number

77200LED

KOITO has promoted the introduction of energy-saving facilities
and energy-saving activities, mainly in the manufacturing process,and has worked to reduce CO 2 emissions. As a result, CO 2 emissions in FY 2022 was 23% lower than FY 2014, which is the baseyear for CO2 emissions.
We will vigorously promote environmental activities, such as
further introducing energy-saving facilities and considering the introduction of renewable energy. With our target of reducing CO 2 emissions by 50% in FY 2031 compared to FY 2014, which exceeds thegovernment target, and achieving carbon neutrality in FY 2051,
KOITO will further strengthen our activities to reduce CO2 emissions.

Introduction of LED low-beamal

CO2 Emissions Results and Targets

Corporate Information*Total amount of low-beam and high-beam

250

H

To accelerate our activities on “prevention of global warming,”
one of KOITOʼs materiality, the entire company is working together on environmental activities to reduce CO2 emissions in Scope 1and Scope 2 by 50% in FY 2031 compared to FY 2014, and toachieve net-zero emission, or carbon neutrality by FY 2051.

100Power consumption*(W/vehicle)

Aiming to reduce CO 2 emissions by improving the fuelefﬁciency of vehicles, and to respond to the accelerating
shift to EVs, KOITO has started to introduce LEDs as thelight source for headlamps ahead of its competitors. The
latest LED headlamps, consume about 80% less electricity than the conventional halogen headlamps and 70%
less electricity than discharge headlamps, contribute toreduce vehiclesʼ battery load.
Due to their capabilities, the adoption of LED headlamps has expanded to a variety of vehicles, including
large-size and compact vehicles, mini vehicles, and motorcycles. In FY 2022, global LED adoption ratio among
the KOITO Groupʼs headlamps was approximately 70%,
and is expected to widespread further.
With the aim of commercializing even greater powersavings and lighter l amps , we are al so working to
improve the per formance of white LEDs, reduce thenumber of parts, and use resins efﬁciently.

Strategy 2 Initiatives to Achieve Carbon Neutrality

ESG Activities■Reduction of headlampʼs power consumption

Development-Reduction of headlampʼ s power consumption-

DGrowth Strategies

Business Overview

Customer Useof Products・Integration of production lines
・Energy conservation in production
equipment
・Utilization of natural light inproduction plants
・Consideration of introducing
renewable energy

・Reducing CO 2 emissions fromvehicles through power-saving,
lightweight lamps

The KOITO Group is contributing to improve vehicle fuele f ﬁ c i e n c y a n d r e d u c e CO 2 e m i s s i o n s b y p r o v i d i n g
eco-friendly products.
KOITO has evaluated our global environmental contribution of LED headlamps by comparing the amount of CO 2emissions when using conventional halogen headlamps.
Contributions are increasing year by year due to the evolution of light sources and the spread of LED headlamps.

■LED headlampʼs contribution on CO2 reduction
Contribution on CO 2 reduction(thousand tons of CO 2)
400

365.5
287.0

300

KOITO has calculated the contribution by referring to the calculation methodologies on the EUʼs “Technical Guidelines for the preparation of applications for the approval of innovative technologies pursuant to Regulation(EC) No 443/2009 and Regulation (EU) No 510/2011” and JAPIAʼs “SecondVersion of Regulation 2 of the Guidelines for Calculating LCI (Data Chartfor Calculating Environmental Impact at the Stage of Use).”[Calculation formula]
Energy-saving effect* (W/units) / 1,000 Consumption of effective power(ℓ/kWh) / Efﬁciency of alternator CO 2 emission factor (t-CO 2/ℓ) Operating hours (hours/year) Usage factor the number of vehicles equippedwith the KOITO Groupʼs LED headlamps*Power consumption differences between LED headlamps and halogen headlamps

218.3
200

1000

158.6
106.1

2018

2019

2020

2021

2022 (FY)

Production -Reduction of CO2 emissions by integrating surface treatment linesThe lenses of headlamps are processed in two processes: hard coating and anti-fogging coatings. Previously, hard coating
and anti-fogging coating were done on separate processing lines. Aiming to integrate conventional two lines into a singleline, KOITO is developing equipment and materials that can be processed with a single line. We are gradually integratingthese lines.
Following the integration, we are aiming to reduce power consumption by 65% comparing with conventional lines.
Previous (2 lines)
Coating

UV drying

Coating

Target for 2025 (1 line)
Hot-air drying

Simultaneous coating

Hot-air drying

New coating
material

Hot-air

Power consumption：100

Reduce power
consumption
by 65%

Hot-air

Hot-air

Power consumption：35

KOITO INTEGRATED REPORT 2022 21