Value Creation Story

Business Overview

ESG Activities

Corporate Information

Value Creation Story
Staying true to our basic stance to adopt the perspective of customers,
the KOITO Group is contributing to materialize a safe and comfort society
by providing high-value products and services.

The KOITO Groupʼs History

6

Message from Top Management

8

Value Creation Process

12

Materiality

14

Value Chain

16

Growth Strategies

18

Financial Strategy

22

Human Resource Strategy

24

KOITO INTEGRATED REPORT 2022

5

Value Creation Story

Business Overview

ESG Activities

Corporate Information

900

The KOITO Group's History

800

600

The foundation of KOITO began in 1915 with the development andproduction of the Japanʼs ﬁrst fresnel lenses for railway signal lamps.

500

Since then, we have been contributing to the safe and comfortable

400

society by developing lighting equipment for all kinds of transports,

300

including automobiles, railways and even aircraft and ships.

200

Net sales (billion yen)

700

100

1915

1950

Founding Period 1915−1945
1915

1970

1980

Post-war Recovery and Developing Period 1946−1980

1990

2000

0

2010

2022 (FY)

Expanding Period 1981−1999

To be a “Global No.1 Supplier” 2000−Present
2001 Koito Czech s.r.o. established (Czech Republic)
2003 Production and sales of the worldʼs ﬁrst swivel AFS begins

1949

KOITO MANUFACTURING listed on both the Tokyo andOsaka Stock Exchange

1981

Production and sales of the worldʼs ﬁrst plastic lensheadlamps begins

1930 Koito Genrokuro Shoten becomes
KOITO MANUFACTURING

1955

Enacted1983

North American Lighting, Inc. established (Illinois, U.S.A.)

1935 Shinagawa Plant opens (Tokyo, Japan)

1985

1968

Chicago Representative Ofﬁce opens (Illinois, U.S.A.)“Innovative ideas and decisive action” corporate slogan
introduced

2005 Fuzhou Tayih Industrial Co., Ltd. becomes a KOITO subsidiary (China)
KOITO KYUSHU LIMITED established (Saga, Japan)
GUANGZHOU KOITO AUTOMOTIVE LAMP CO., LTD. established (China)

1970

Headquarters building completed (Minato-ku, Tokyo)

1986

1972

Aircraft equipment and electronics plant opens(Shizuoka, Japan)

THAI KOITO COMPANY LIMITED established (Thailand)
Sagara Plant opens (Shizuoka, Japan)

2012

1988

Capital interest in Ta Yih Industrial Co., Ltd. acquired (Taiwan)

1977

Haibara Plant opens (Shizuoka, Japan)

1990

Production and sales of projector headlamps begins

1979

Production and sales of Japanʼs ﬁrst aerodynamic-type
headlamps begins

1992

Fujikawa Tooling Plant opens (Shizuoka, Japan)

1996

Capital interest in Britax Vega Limited acquired (U.K.)

1997

Technical Center opens in Shizuoka Plant (Shizuoka, Japan)
INDIA JAPAN LIGHTING PRIVATE LIMITED established (India)

1999

Britax Vega Limited becomes Koito Europe Limited

Koito Genrokuro Shoten founded (Kyobashi, Tokyo)
Fresnel lenses for railway signal lamps introduced

1936 KOITO MANUFACTURING CO., LTD. incorporated(capital 2.5 million yen)1943 Shizuoka Plant opens (Shizuoka, Japan)

1915

Koito Genrokuro Shoten foundedFounder Genrokuro Koito founded Koito Genrokuro
Shoten in Kyobashi-ku, Tokyo (current Kyobashi,
Chuo-ku, Tokyo) to sell fresnel lenses for railway
signal lamps, which he succeeded in the Japanʼs ﬁrst
production in 1912.

1936

Entering the automotive lighting equipment business

Based on KOITOʼs experience in supplying headlamps to military
motorc ycle with side c ar s c alled “ Kurogane” in 1932 andthree-wheeled trucks in 1933, KOITO has started to produce
headl amps for four- whe ele d vehicle s . We have supplie dheadlamps for the AA passenger cars to the automotive department of Toyoda Automatic Loom Works, Ltd. (current Toyota
Motor Corporation) in 1936. This commemorates KOITOʼsparticipation in automotive lighting equipment business, which
contributes to safe and comfortable automotive society.

1950

Semi-sealed beam headlamps developed

Focusing on the brightness of U.S.-made all-glass
sealed beam headlamps, KOITO has developed andsucceeded in commercializing semi-sealed beam
headlamps in August 1950. Until all-glass SB wasdevelope d , s emi-s eale d b eam headl amps wereadopted in various domestic automobiles.

6

1960

KOITO INTEGRATED REPORT 2022

trademark1961 Transferred a head ofﬁce to Minato-ku, Tokyo

2010 PT. INDONESIA KOITO established (Indonesia)

North American Lighting Mexico, S.A. de C.V. established (Mexico)

2014 Hubei Koito Automotive Lamp Co., Ltd. established (China)
2015 KOITO celebrates its 100th anniversary

2017 NAL do Brasil Indústria e Comércio de Componentes de Iluminação Ltda.
established (Brazil)
KOITO MALAYSIA SDN. BHD. established (Malaysia)
2019 Capital interest in BrightWay Vision Ltd. acquired (Israel)
2020

Capital interest in Cepton Technologies, Inc. acquired (U.S.A.)KI HOLDINGS CO., LTD. absorbed and merged
KOITO Development Center opens (Aichi, Japan)

2022

Transitioned to Prime Market following the market
reorganization of the Tokyo Stock Exchange

1957

1979

Since 1951, KOITO has been developing all-glass SB headlamps withhigher luminous ﬂux than SSB headlamps. As a result of repeated trial
manufacture and improvement, KOITO succeeded in its commercialization in 1957. KOITO then started supplying the products to various
automotive manufacturers, including Toyota Motor Company(current Toyota Motor Corporation), from October 1957.

KOITO has begun developing uniquely shaped headlamps (a kind of SSB headlamps), which are shaped
to ﬁt individual vehicle designs. These lamps started
to be installed in the Nissan Skyline and the Toyota
Crown in June 1979.

1975

1985

2014

Cleaning dirt on headlamps is crucial for ensuring safety, and relevant regulations were started to drawn up in Europe. KOITO has develo p e d j e t- t y p e h e a dl a m p w a s h e r s , a n d i t s
installation to export vehicles began in August
1975.

As a result of steady efforts on headlampsʼ resiniﬁcation to reduce weight and improve design, KOITO has
succeeded in developing plastic lenses and a BMC
reﬂector with even higher heat resistance and molding accuracy in 1981. In Januar y 1985, the worldʼsﬁrst all-resin aerodynamic-type headlamp was adopted in Toyota Motor “Soara.”

KOITO has star ted producing and selling the worldʼsﬁrst LED Compact-Bi-function, capable of switching
hi g h b e a m a n d l o w b e a m w i t h a s i n g l e L ED a n dachieved lower power consumption and weight compared to conventional lamp units. In November 2014,
it was installed in the Toyota Prius Alpha, and contributed to the worldwide spread of LED headlamps, being
adopted by various vehicles.

1996

2019

Production and sales of all-glass
sealed beam (SB) headlamps begins

Production and sales of uniquely
shaped headlamps begins

Production and sales of jet-type
headlamp washers begins

Production and sales of all-resin
aerodynamic-type headlamps begins

1978

Production and sales of
halogen headlamps begins
As halogen light bulbs with high luminous ﬂux
a n d e xc e l l e n t a n t i g l a r e p e r f o r m a n c e c a ncontribute to reduce traf ﬁc accident s , they
were standardized in Europe in 1971 and in the
U. S . in 1978 . KOITO has s t ar ted producing
halogen headlamps by incorporating halogen
light sources (originally impor ted products)
into SB and SSB headlamps in July 1978.

Reﬂector
Lens
Halogen bulb
Terminal

Production and sales of discharge
headlamps (GDHL) begins
With a light source that utilizes arc discharge between
electrodes, discharge headlamps (GDHL) were excellent in increasing light intensity, and has long life andhigh energy efﬁciency. As the next-generation lamp
contributes to improve vehicle fuel efﬁciency, KOITO
succeeded in developing discharge headlamps as well
as a control circuit called ballast, and were installed in
the Nissan Terrano and the Toyota Mark II in 1996.

Lens

Halogen bulb

Reﬂector

2007

Production and sales of the worldʼsﬁrst LED headlamps begins
KOITO has developed LED headlamp using white LEDs
as a low-beam light sources , which of fer s improved
visibility with higher luminous ﬂux, longer life, and lower
power consumption compared to GDHL and halogen
headlamps. In May 2007, they were installed in the Lexus
LS 600h, as the worldʼs ﬁrst LED headlamp in the market.

Production and sales of the worldʼs ﬁrst
LED Compact-Bi-function begins

Production and sales of the worldʼsﬁrst BladeScanTM ADB begins
KOITO has developed the worldʼs ﬁrst BladeScan T M
ADB (Adaptive Driving Beam) system, which is expected to further improve safety by enabling high-resolution light dis tribution than the conventional ADB
systems. It was installed in the Lexus R X in August
2019, becoming the worldʼs ﬁrst system in the market.

KOITO INTEGRATED REPORT 2022

7

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Message from Top Management
The KOITO Group will contribute to materialize
a sustainable society and resolve social issues throughour “Lighting for Your Safety” corporate message.
In April 2022, the Tokyo Stock Exchange has reorganized
its market structure into three new market segments,
and KOITO chose the “Prime Market” as a listing market.
Listed companies in this market are required to establish
a high level of sustainabi lity-relat ed systems and promote relevant activities. To meet these expectations andbuild a management system that can respond to changes
in the business climate, KOITO has established its management system to ensure objectivity and transparency.
We are striving to further grow the KOITO Group under a
new management system established in June 2022.
We are al s o wor king to s treng then SD G s and ESG
promotion activities in order to contribute to materialize
a sustainable society. In order to prevent global warming,
we have set the targets of reducing KOITOʼs CO 2 emissions
by 50% in FY 2031, compared to FY 2014, and achievingcarbon neutrality in FY 2051. In addition to accelerating
reductions in CO2 emissions more than ever before, KOITO
has signed up to support the “Task Force on Climate-Related Financial Disclosures” (TCFD) in December 2021.
We will continue to promote various activities which contribute to resolve social issues through our business activities.

Forecast for FY 2023
Although the outlook for global automobile productionis uncertain due to factors such as COVID-19 and semiconductor shortage, it is expected to gradually recover fromthe second half of the ﬁscal year, and the full year production volume is expected to increase from the previous year.
The KOITO Group is planning an increase in net sales
from the previous ﬁscal year due to an increase in automotive production, new orders, and an increase in salesof LED headlamps.
With regard to proﬁts, despite R&D investment for
the future, and capital investment for carbon neutrality
increases, operating income, recurring proﬁt, and proﬁt
attributable to owners of parent are expected to increase
from the previous ﬁscal year due to increase in sales,ongoing improvement and rationalization activities.
The KOITO Group will continue our efforts to improve
proﬁtability to meet the expectations of all stakeholders.
■The KOITO Groupʼs consolidated business results(ten thousand vehicles, million yen)

FY 2021
ResultFY 2022
ResultFY 2023
Plan*1

7,468

7,425

7,850

Net sales

706,376760,719871,000

Operating income

56,70753,43467,000

8.0%

7.0%

7.7%

Recurring proﬁt

61,10760,61369,000Proﬁt attributable to owners of parent

37,612

38,34046,000

Review of FY 2022
In FY 2022, despite the expectation of a recovery fromCOVID-19 pandemic, the domestic and overseas economic recovery was sluggish and the outlook was uncertain
due to the impact of the re-expansion of COVID-19 infections, a shortage of semiconductors, and soaring prices
for resources and raw materials, as well as geopoliticalrisks such as the situation in Ukraine.
Domestic automobile production also remained challenging, due in part to sudden production ﬂuctuations
caused by supply chain disruptions. Domestic production
declined for the third consecutive year, and overseas production also declined for the fourth consecutive year.
KOITOʼs domestic net sales declined from the previous
ﬁscal year due to a decrease in automobile production.
However, overseas, consolidated net sales increased fromthe previous ﬁscal year due to new orders in North America and Asia, progress in the shift of automobile lamps toLED, and the impact of foreign currency exchange.
With regard to proﬁts, despite the increase in net sales,
operating income and recurring proﬁt declined from theprevious ﬁscal year due to an increase in ﬁxed costs
caused by a sudden ﬂuctuation in production, soaring
prices for raw materials and electronic components, andinvestments in new orders and R&D for the future. However, net income attributable to owners of the parent
increased from the previous ﬁscal year due to gains onsales of investment securities and other factors.

8

KOITO INTEGRATED REPORT 2022

Global automobile production volume*2

Operating income ratio*1 Announced on April 27, 2022
*2 KOITOʼs estimates based on ﬁgures from Japan Automobile Manufacturers
Association, Marklines and etc.

New Challenge: To Illuminate the WorldThe KOITO Group aims to materialize a sustainable society and resolve social issues as a leading company ofautomotive lighting equipment and will strengthen its
business activities through our “Lighting for Your Safety”
corporate message.
Under our corporate slogan, “New challenge: To illuminate the world,” we will continue to develop the newest
and the best technologies, improve per formance andquality of our products, promote training for employees
to raise their performance and skills, as well as stay true
to our basic stance to adopt the perspective of customers
to supply produc ts and ser vices that will meet their
expectations. We would greatly appreciate your continued understanding and support.

Chairman and CEO

President and COO

Masahiro
Otake

Michiaki
Kato
KOITO INTEGRATED REPORT 2022

9

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Aiming to become a “Global No.1 Supplier,”
we are accelerating various activities.
The automotive industry is seeing accelerated movements toward the realization of a next-generation mobility society,including electriﬁcation and autonomous driving vehicles. We are facing many social issues as well, including climatechange, decarbonization, and growing social inequalities. Companies are required to implement activities related to Sustainable Development Goals (SDGs) throughout their business activities.
During this transformation, the KOITO Group aims to contribute to resolving social issues through its business activities and to achieve medium- to long-term growth by accelerating various initiatives with the goal of becoming a “Global
No.1 Supplier” under the keywords of “World-leading Technologies and Ingenuity,” “Sustainable Growth” and “A Trusted Company.”

Moreover, the KOITO Group will contribute to materialize a safe and secured next-generation mobility society
through promoting development of communication
lamps and smart infrastructures based on our lighting
and sensing technologies.

World-leading Technologies and Ingenuity

The KOITO Group has aggressively invested in future
growth-oriented areas, including capital investment and
R&D investment, based on the management resources it
has cultivated over the years. Although the current business climate is uncertain, we will aim to achieve sustainable grow th for the Group as a whole by promoting
growth investment, including digital transformation (DX)and carbon neutrality, and improving competitiveness inareas such as operational efﬁciency, productivity, andadded value creation, in order to quickly bring attractive
technologies and products to market and contribute tosociety.

The KOITO Group has created technologies and products
which have always pione ere d each generation andmarket, and developed its businesses by responding tocustomer needs to materialize a safe, reliable society oftransportation founded in our “innovative ideas and decisive action” corporate policy.
Technical capabilities are source of the KOITO Groupʼscompetitiveness. Therefore, we have established a global
network in all ﬁve major regions of the world, centered
upon KOITO Technical Center. In September 2022, weplan to open a Technical Center in GUANGZHOU KOITO
to expand new orders and strengthen our competitiveness in China.
We are working to expand sales of LED headlamps andAdaptive Driving Beam (ADB) headlamps in order to contribute to the reduction of trafﬁc accidents by providing
products that contribute to ensuring the visibility of night
drivers. Following the enactment of legislation in the U.S.
in February 2022, ADBʼs adoption ratio is expected to
expand in medium- to long-term. In response to these
expectations, the KOITO Group is striving to enhance
product variations and lowering prices. In addition, weare taking on challenges of developing sensing technologies that are essential for autonomous driving and are
responsible for surrounding detection. We are aiming tolaunch these technologies to the LiDAR market in 2023.

R&D Network in Five Major Regions of the WorldGUANGZHOU KOITO
Technical Center

In recent years due to the accelerated transition to electric vehicles , higher qualit y has become even more
important as automotive parts become more advanced
and complex. The KOITO Group streng thens on-site
capabilities and investigates the true causes of defects
through information sharing about any problems or chal-

Sustainable Growth

KOITO recognizes that human resource development is
crucial to achieving sustainable growth. Based on theidea that “manufacturing is human development” andthat employees are the driving force behind corporate
growth, with the keyword of “communication and collaboration,” we encourage every employee to share theirknowledge, experience, ﬁndings, and problem awarenessthrough various means to build energetic work sites
where every member can work on tackling problems.
We strive to enhance work-life balance, promote diversity, expand human resource development programs andr e b uil d s y s t e m a t i c hum a n r e s o ur c e d e v e l o p m e n tachievement evaluations in an effort to ensure every employee can experience their growth and become motivated to take on new challenges.

lenges discovered, mutual understanding of pre- andpost-processes, and assurance of each product with thegoal of achieving a level of quality chosen by customers
through the quality and trust of being global No. 1.
In terms of the environmental activities, in order to contribute to materialize a carbon-free society, we aim toachieve carbon neutrality by 2050. To this end, we arepromoting measures to reduce CO 2 emissions and environmentally hazardous substances, and promote recycle
resources. Through these ef for ts, we are expanding“Eco-friendly Manufacturing for People and the Earth”
globally.
In December 2021, KOITO has signed up to support the“Task Force on Climate-Related Financial Disclosures”(TCFD), established by the Financial Stability Board in2015. Recognizing climate change as one of our key management issues, to enhance climate-related information
disclosures based on TCFD recommendations, we are collecting and analyzing the data we need and reﬂecting itin our business activities.
Throughout these activities, the KOITO Group will continue to strive to be a company trusted by all stakeholders.
July 2022

The KOITO Group will also strive to strengthen its supply
chain, including production and logistics, to prevent disruptions to its product supplies even in the face of global
supply network disruptions. At the same time, the Group
is striving to achieve sustainable growth throughout the
supply chain by promoting procurement activities thatincorporate SDGs perspectives, such as strengthening
disaster mitigation systems, environmental conservation,
respecting human rights, and complying with laws andregulations.

THAI KOITO
Technical Center

A Trusted Company
KCZ
Technical Section

KOITO
MANUFACTURING
Technical Center

NAL
Technical Center

To ensure thorough compliance with laws and regulations, social conventions, corporate ethics and internal
rules, the KOITO Group is striving to raise complianceawareness in each and ever y employee and fur therstrengthen our corporate foundation.

10

KOITO INTEGRATED REPORT 2022

KOITO INTEGRATED REPORT 2022

11

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Value Creation Process
Throughout our business activities in the value chain centered on the automotive lighting business, the KOITO
Group aims to resolve various social issues to materialize a sustainable society and increase our corporate value.

Business Model of- A Leading Company in

the KOITO Group

Automotive Lighting Equipment Value Chain

Social Issues
Environment● Prevention of global warming● Reduction of environmental

impact substances and waste● Conservation of water resources

Safety / peace of mind
● Reduction of trafﬁc accidents● Technological development

contributes to materialize asustainable society● Enhancement of product quality

Corporate foundation● Compliance● Corporate governance● Information security● Human resource development● Healthy and safe working

environment● Workstyle reform● Respect for human rights● Disaster prevention

Managerial
resourcesautomobile industry● Progress in technologicalinnovation (IoT/AI)● Growing social demands for

decarbonization and ESG

Production andQuality Management

Marketing

Values provided to society(Safety / peace of mind / trust)Environment

Financial Capital● Reduction of CO 2 emissions of automobiles,

Total assets 855.2 billion yen
Net assets

627.3 billion yen

Manufacturing Capital
Capital expenditures 35.8 billion yen

Intellectual Capital
R&D expenditures 34.0 billion yen

3,090
Number of patents applied 867
R&D personnel

aircraft and railway cars

● LED Headlampʼs Contribution on CO 2

Automotive Lighting Equipment

Reduction: 365.5 thousand tons (FY 2022)● Reduction of environmental impact substances

Contributing to safety and peace ofmind of automotive society

Safety / peace of mind

The KOITO Group delivers headlamps with world-classbrightness, instantaneous lighting, low power consumption, and long life. We also produce rear combination
lamps and other products by developing cutting-edge
technologies to pursue even better safety and designs.
Our products are widely used by automobile manufacturers all over the world.

● Improving night vision and reducing trafﬁc

accidents by providing LED headlamps and ADB● Promoting development of energy-saving andlightweight products

Corporate foundation● Strengthening ESG activities● Promotion of workstyle reform● Contribution to local communities

Human Capital
Number of employees 23,454
Overseas employees

67%

Social and Relationship Capital

58.9 %

Extensive communication with employees

Natural Capital(KOITO MANUFACTURING)● Intensiﬁed competition in the

Procurement(FY 2022)

Overseas net sales

Business Issues

R&D

P.16

Resin materials 43,807tons

Aviation Products
Promoting energy efﬁciency and reducing
CO2 emissions in aviation lighting
By adapting LEDs into interior lighting devices (cabinreading lights, ceiling lights, sidewall lights and others)
and exterior lighting devices (landing lights and others),
the KOITO Group provides product with high energy
efﬁciency and long life. These lamps help cutting
operational costs while delivering superior reliability.

Electricity

107,732,000kWh
Utility gas 1,902,000 ㎥
2,897tons
LPG
654,000 tons
Water

Corporate foundation to
support our value creation

Railway and Other Products

Creation of corporate value

Contributing to safe and securedtransportation
The KOITO Group manufactures and sells railway LED
headlamps which improve visibility while lowering power
consumption and seats for railroad cars. We also produce
and sell a wide variety of lighting equipment, frommarine vessels to the roadways and bridges that provide
daily transport, and even to theme parks and stadiums.

P.2
The KOITO Group Corporate
P.15
Behavior Charter
Corporate Governance
P.54
Corporate Principles(FY 2022)

Net sales

760.7 billion yen

Operating income

53.4 billion yen

Operating income ratio over net sales

7.0 %Proﬁt attributable to owners of parent 38.3 billion yen
ROE

6.8%

Materiality

P.14
12

KOITO INTEGRATED REPORT 2022

KOITO INTEGRATED REPORT 2022 13

Value Creation Story

Materiality

Business Overview

ESG Activities

Corporate Information

The KOITO Group Corporate Behavior Charter

We believe that our business activities are highly compatible with and relevant to Sustainable Development Goals (SDGs)
adopted by the United Nations in September 2015, and can contribute to achieve these goals.
In order to accelerate these initiatives, we have referred to the GRI (Global Reporting Initiative) guidelines andidentiﬁed material issues (materiality) to be focused and SDGs to be solved among the various social issues, andpromoting relevant activities.
We will continue to promote our business activities that contribute to materialize a sustainable society.
For materiality assessment process, please refer to our Materiality website.
URL: https://www.koito.co.jp/english/csr/materiality/

The KOITO Groupʼs basic management policy is to create customer needs and contribute to the progress of society, while
also fostering mutually beneﬁcial relationships with all stakeholders, including shareholders, customers, employees, andbusiness partners, all guided by the theme of “Light.”
In accordance with this policy, we have established the following ten principles. We will comply with domestic andoverseas laws and regulations, international rules, and their underlying spirit, and conduct corporate activities inaccordance with corporate ethics.
In addition, with the aim of achieving sustainable growth of society, we will strive to resolve social issues through ourbusiness activities and fulﬁll our social responsibilities.

Sustainable growth and resolution

1 of social issues

Work practice and enhancement of workplace

P.48

6 environments

P.49

7 Engagement in environmental issues

P.60

8 Contribution to society

4 dialogue

P.53

9 Comprehensive risk management engagement P.60 P.62

5 Respect for human rights

P.52

10 implementation of this Charter

P.18

2 Trusted corporate activities
Compliance with social conventions /3 Global management

Fair information disclosure and constructive

P.20

P.24
P.38
P.53

Rejection of relations with anti-social forces /Role of top management and thoroughP.54〜58

Our Materiality and Initiatives
KOITO has set KPIs (key performance indicators) and targets for FY 2031 for each materiality. We are promoting activities
that contribute to solve social issues by incorporating them into speciﬁc activity plans.

Materiality
Environment
Safety / peace of mind

● Reduction of trafﬁc

Corporate foundation

F Y 2021
ResultF Y 2022
ResultCO2 emissions

59.8 thousand tons

56.7 thousand tons

VOC emissions

220 tons

192 tons(Iess than the amount in FY 2019)(continuous target by FY 2026)

Waste generated per unit
(tons per billion yen)

0.117

0.120

(7% reduction from FY 2019)(continuous target by FY 2026)● We will strive to achieve sustainable growth

Water usage per unit
(tons per million yen)

3.26

3.41

(7% reduction from FY 2019)(continuous target by FY 2026)● Looking ahead to autonomous driving society,

LED adoption ratio*

64%

70%

100%

ADB adoption ratio*

5%

5%

20%

Commercialization of LiDAR

ーーCommercializing next-generation product(FY 2026)

4 cases

0

0

91%

97％

100％

Number of serious violations of laws
and ordinances

0

0

0

Number of serious information
security incidents

0

0

0

9.6 hours

10.2 hours

More than 15 hours

0

0

0

1.3%

1.4%

More than 3.0%

Declaration of KOITOʼs Initiatives● We will promote reduction of CO 2 emissions● Prevention of

global warming

Relevant SDGs

P.20

P.42

● Reduction ofenvironmental impact P.44
substances and waste● Conservation of water

resources

accidents

P.45

P.48

● Technologicaldevelopment
contributes tomaterialize asustainable society● Enhancement of

product quality

P.18

P.49

● Compliance

P.60● Corporate governance

P.54● Information security● Human resource

development● Healthy and safe

P.63
P.24
P.52

working environment
P.24● Workstyle reform● Respect for humanrights● Disaster prevention

P.52
P.62

and environmental impact substances, andresource recycling guided by the theme of“Eco-friendly Manufacturing for People andthe Earth.”

KPI● We will contribute to the reduction of CO 2

emissions by further improving the lightemission efﬁciency and reducing the weight ofmainstay products.

and resolve social issues by developing andproviding socially beneﬁcial and safe products
and services.

we will promote produc t development ofsensors (LiDARs and cameras).

● We will gain customersʼ satisfaction and trust

through developing and providing safe andhigh-quality products and services.

● We will enhance corporate governance andstreng then compliance to establish soundmanagement system.

● We will strive to protect information assets by

preparing for risks on information security.

● We will strive to provide a healthy and safe

workplace environment in which all employees
can make the best use of their capabilities andfulﬁll their potential.

● We will promote initiatives to respect the humanrights of all persons.

● We will streng then our disaster prevention

system throughout the supply chain.

Number of recalls
Awareness of the KOITO Group
Corporate Behavior Charter

Training time per employee
Rate of lost-time injuries
Ratio of women in senior management

F Y 2031
Target36.9 thousand tons

(50% reduction from FY 2014)

Less than 299 tons

Less than 0.128

Less than 3.51

Commercialization (FY 2024)*Consolidated

14

KOITO INTEGRATED REPORT 2022

KOITO INTEGRATED REPORT 2022 15

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Value Chain
With the aim of enhancing our corporate value and resolving social issues throughout our business activities, the KOITO
Group is strengthening initiatives in the respective value chain of R&D, procurement, production, quality management
and marketing.

R&D
The KOITO Group makes full use of optics, electronics andother cutting-edge technologies in the pursuit of safety
and reliability, and conducts research and development ofinnovative and environmentally friendly system products.
The KOITO Groupʼs R&D activities are broadly categorized into basic research and product development.

OutlineBasic researchCentered upon technical center in Japan, the KOITO
Group conducts research to commercialize a new generation of produc t s anticipating market needs throughfurther evolution of our core technologies such as optics,
electronics, machinery, and structures.

Procurement
The KOITO Group procures parts by selecting material andcomponent suppliers necessary for production.
This selection of suppliers is determined based on component speciﬁcations, monthly quantities, unit prices, estimated price of molds and other factors. In addition, we audit andapprove supplier plants when engaging in new procurement.
We formulate and manage procurement plans for materials
and components according to the KOITO Groupʼs productionplans.

Product development

Our Strength(Japan, Americas, China, Europe and Asia)● Clear understanding of needs through partnerships withcustomers, suppliers, external agencies and other suchorganizations, and its implementation to the products● Provision of safe and reliable products such as Adaptive
Driving Beam (ADB) headlamps to provide better visibility at night● Contributions to prevent global warming through energy
efﬁciency as well as smaller and light-weight reductions,
including the promotion of a transition to LEDs
● Rapid response to technical challenges based on a wealthof knowledge and experience● Educational system to develop and strengthen diverse
human resources in technical ﬁelds

16

Business Issues
Social Issues

Tasks Addressed to Deep Value Chain● Promotion of research and development themes adapting

to rapidly changing technical and market needs as well as
a ﬁercer development race from connectivity, autonomous driving, sharing and electric vehicles (CASE) to mobility as a service (MaaS)● Development of monitoring sensors such as LiDAR andall-weather cameras that contribute to safety and security
under ADAS (Advanced Driver Assistance System) and
autonomous driving● More efﬁcient product development through the use ofvarious simulations and promotion of digital transformation (DX)● Training and securing engineers to pass down and evolve technologies● Promotion of advanced technical development that helps

materialize a safe and reliable automotive society, andachieve carbon neutrality

KOITO INTEGRATED REPORT 2022

The KOITO Group manufactures the products it develops anddesigns using the materials and products purchased from subsidiaries and suppliers. We audit plants when starting the manufacture of new products or when changing manufacturing processes at subsidiaries.
We formulate delivery plans based on order estimates fromautomotive manufacturers and other customers as well as subsidiaries (unofﬁcial monthly, yearly, mid-term and other plans)in addition to conﬁrmed orders as well as production planstaking applicable inventory and other plans into account.

Marketing
The KOITO Group understands global customer needs, realizes
cooperation with relevant departments and conducts proposal
and marketing activities through presentations.
We make proposals of next-generation products that contribute to safety, reliability and reduction of environmental impact
based on good customer relationships founded in trust, aiming
to expand its sales channels and proﬁt.

KOITO engages in quality management operations to assure
quality throughout the entire Group and formulates quality
inspec tion criteria and quality control methods. Ever yone
involved in manufacturing engages in quality control activities
based on the criteria and quality control methods.

The KOITO Group not only proposes new technologies toautomotive manufacturers and other customers, but also
develops products accommodating development plans
and required speciﬁcations.
● Global R&D network in ﬁve major regions of the world

Production andQuality Management● Global procurement system that allows local sourcing fromsuitable procurement sites● Enhancement of local procurement to mitigate the impact
related to foreign exchange ﬂuctuations● Sustaining and strengthening of good relationships with
suppliers● Realization of high-level Quality, Cost, Delivery and Development (QCDD) through ongoing improvement activities
with the cooperation of suppliers● Establishment of a BCP system to quickly grasp the level ofdamage and problems faced by suppliers when disasters strikeand to cooperate with suppliers to take the necessary action● Promotion of CSR /ESG activities throughout the entire
supply chain to materialize a sustainable society, such as
preventing global warming● Stable procurement by securing a ﬂexible supply andstrengthening the effectiveness of Business Continuity
Plans (BCP) in the supply chain● Optimization of supplier portfolios (thorough cooperation
across industries and elements of competition)● Enhancement of CSR/ESG activities throughout the entire

supply chain● Strengthening supply chain activities to achieve carbon
neutrality● Appropriate production system established by the KOITO

Production System (KPS)● Global production and quality assurance system in all ﬁve
major regions of the world● Designation of the KOITO Shizuoka District as the motherp l a n t a n d s u p p o r t f o r l au n c hin g o v e r s e a s p r o d u c t i o nsites/products and measures to address various problems● Drills and training to pass down and improve the technicalabilities and skills of employees throughout the entire Group● Strengthening and continuation of improvement activities for
production sites● G l o b al in f o r ma t io n g a t h e r ing an d s al e s s y s t e m in al lﬁve major regions of the world● Global top share sales capabilities● Clear under s t anding of changing and diver se cus tomer

needs as well as speciﬁc sales capabilities● Sus t aining and s treng thening of good , s trong rel ation-

ships based on close communication with customers● Product proposals of light sources and lighting technol-og y cultivated in the automotive lighting equipment
business for adoption in aviation, railway and infrastructure-related products● Strengthening of competitiveness by improving global QCDD

● Strengthening of marketing systems that reﬂect customer andadvanced and complex products● Enhancement of productivity through the use of AI, IoT and othertechnologies, such as the realization of smart factories● Strengthening of BCP at production sites, such as more resistant buildings and equipment and bet ter complimentar y
supply capabilities● Higher customer satisfaction● Shift to production equipment and processes that contribute● Proposals of attractive products that help materialize a safe,● Strengthening of quality management that adapts to moreto achieve carbon neutrality, reduce environmental impact
substances and effectively use resourcesmarket needs● Education and training to foster and strengthen complianceawarenessreliable automotive society and resolve social issues

KOITO INTEGRATED REPORT 2022 17

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 on
product 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, the
KOITO Group aims to materialize a safe and secure automobile
society by enhancing the performance of ADB (Adaptive Driving
Beam), 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)
（%）

TM

40

20

20

5

5

2021

2022

10
0

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 200
to 30 0 meters with high resolution. We are also developing
all-weather cameras capable of accurately detecting objects in
bad 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 in
LiDAR 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-weather
camera

200m

150m

◯

◯

Object detection under
bad 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

Camera
450

400
200

300

230

200
100
0

100

1

215

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.

50
30

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 trafﬁc
conditions

Telecommunicationequipment in vehicle

15
250

99
2020

2025

2030

(CY)

KOITO INTEGRATED REPORT 2022 19

Value Creation Story

Executive Vice President,
Production Headquarters

Masami Uchiyama

100

50

0

Expansion 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

50
50

2031

(Intermediate target)

Achieve carbon
neutrality by
FY 2051

2051(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

Product
Transportation

20

Production

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

・Adoption of highly efﬁcient truck
vehicles 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

100

50

on
)
ra

ne
h

(7
t

LE
D

h

LE
D

(6
t

ge

ge

ne

ne

ra

ra

ti

ti

on
)

on
)
ti

ti
ra
(5
th

ge

ne
ge
LE
D

LE
D

(4
t

h

d
(3
r

LE
D

on
)

on
)
ra

ne

ra
ne
ge

nd
(2

LE
D

ti

on
)
ti

ti
ra
ne

ge
(1
st

ge

ge
ch

ar

en

is

og

on
)

0

LED Headlampʼs Contribution on CO2 Reduction

Index number

77

200

LE
D

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 1
and Scope 2 by 50% in FY 2031 compared to FY 2014, and toachieve net-zero emission, or carbon neutrality by FY 2051.

100

Power 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 to
reduce 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-

D

Growth 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 2
emissions 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 “Second
Version 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

100

0

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 single
line, 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

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 2019

FY 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 results
FY 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
52

Senior 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 the
medium- 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.

0

In FY 2022, in addition to initial investment of $50
million, we have made an additional investment of $50
million 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 andproﬁtsMedium- tolong-term growth
Growthinvestment

KOITO INTEGRATED REPORT 2022 23

Value Creation Story

Human Resource Strategy

With the keywords of “communication and collaboration,”
KOITO encourages every employee to share their knowledge, experience, ﬁndings and problem awareness throughvarious means to build energetic worksites where ever ymember can work on tackling problems and can experience
their growth and become motivated to take on new challenges.
To achieve the KOITO Groupʼs fur ther grow th, we areworking to improve work-life balance. At the same time, weare revamping our human resource systems with the aim ofstrengthening our efforts to secure a diverse range of humanresources, including women, foreign nationals and mid-career hires and promote their active participation in our corehuman resources.

KOITO recognizes that various perspectives and values can bestrengths in securing sustainable growth, and promoting active
participation of diverse human resources. We have set KPIs andtargets for the promotion of women, foreign nationals, andmid-career hires in core human resources, and are working toprovide wide-ranging career support and improve working environment.

[Support for foreign employees]
・Employ foreign candidates to strengthen R&D・Strengthen the recruitment of exchange students by cooperating with universities etc.

Katsuyuki Kusakawa[Reduction of long working hours][Support for childcare, nursing care and others]

・Overtime working hours in each department is reported at

・Child-care leave can be taken up to the end of April after the[Acquisition of paid leaves]
employees to take paid leaves of 15 or more days per year
and conﬁrms the acquisition status by each department[Introduction of teleworking system]
・Applicants in administrative divisions can work from homechild reaches three years old

KOITO is working to enhance our member beneﬁt andimprove the workplace environment to increase our employeesʼ motivation.
As for beneﬁts, KOITO prepares dormitories, company
housing, and cafeteria facilities for employees. We also
introduce an employee stock purchase plan (ESPP) tosuppor t employeesʼ proper ty formation and share thecompanyʼs medium- to long-term growth.
T he improvement of the wor kpl ace environment
includes the installation of security cameras at entrance
gates and dormitories to enhance security, installation of
automatic ﬁre extinguishers as a ﬁre safety measure, andreplacing lights with LED lamps at work areas in production sites to reduce employeesʼ workload.

・Employees can voluntarily choose their attendance and leaving times under a ﬂexible working system
・Nursing care leave can be taken up to one year

For KOITO member beneﬁt in overseas subsidiaries,
please refer to our Human Resource Management
website.
URL: https://www.koito.co.jp/english/csr/social/humanresourse.html

Health and Hygiene

24

KOITO INTEGRATED REPORT 2022

Percentage of foreign nationals
in senior management

0. 3%

1.0%

Percentage of mid-careerhires in senior management

7.5%

10.0%

[Improve treatment for non-regular employees]
・Promote all non-regular employees as full-time employees(2019) etc.

[Support for staff with a disability]
・Creating a workplace where staff with a disability can play
active roles and expanding their employment[Activities on health]･ Implementing periodic medical checkups and providing results to employees･ Implementing workplace vaccination of COVID-19･ Inﬂuenza vaccination for applicants･ Implementing special health checkups to conﬁrm
there are no occupational illness･ Implementing life-saving seminars (including AED
seminars and others)[Efforts to maintain and promote mental health]
To prevent employees from mental health issues, weare providing “self-care” training for new employees
and applicants, and “line-care” training for Managers
and Chiefs. In FY 2022, a total of 167 employees participated in self-care and 76 in line-care training.
to encourage self-care, and support them by having
individual counseling.
In addition, we are improving our support system by
establishing an external consulting desk where emphone.

care for employees

KOITO engages in human resource development through a wide variety of curriculums, and provides job-rank based education, technical education, and global education.
The job-rank based education consists of management training for speciﬁc qualiﬁcations and positions. The technicaleducation includes 211 lectures in and outside of KOITO, such as advanced education on AI, IoT, and sensors. A total of
6,335 KOITO employees participated in these training and lectures in FY 2022.
The global education focuses on multi-culture training, e-learning and language training.

3.0%

ployees can consult on mental health issues over the・Implementation of seminars to balance work and nursing

Human Resource Development

1.4%

We conduct annual stress checks for all employees

・Employees and junior employees raising children under theage of nine can work under shortened working hours

Percentage of womenin senior management[Support for senior employees]with women staff etc.

KOITO has been improving the work-life balance to create awork environment where every employee can make the bestuse of their capabilities and fulﬁll their potential. In addition, we are promoting ﬂexible and diverse working styles.
KOITO has introduced teleworking system as one of “NewNormal” ways to work, following the COVID-19 pandemic.

FY 2026
Target・Rehiring of all applicants over 60 etc.

management, newly and mid-career hires

Senior Managing Director
In charge of Personnel Department

FY 2022
Result[Women empowerment]

・Provide education to women employees and for managers

Improvement of Work-life Balance

・The Committee for the Acquisition of Paid Leaves promotes

Corporate Information■Targets to secure dirersiﬁeed human resources

・Expanding the number of women in regular position, senior

Enhancement of Our Member Beneﬁt

being streamlined to reduce it

ESG Activities

Promotion of Diversiﬁed Human Resources

Aiming to secure a diverse range of human resources andpromote their active participation

the monthly Managing Committee, and work processes are

Business Overview

Based on ﬁve management elements of occupational
health (work environment management, work management , health management , hygiene education, andhygiene management system), KOITO is implementing
various activities to provide a healthy and safe workplaceenvironment.

[Activities on hygiene]･ Implementing training for hazardous chemical substances･ Preventing accidents and health impairment throughspecial education for organic solvents or powder handlers･ Implementing health lectures during National Occupational Health Week
･ Preventing collective infections at dining halls (sanitary inspections, etc.)

KOITO INTEGRATED REPORT 2022 25