Business Strategy

Our Three Mainstay Business UnitsKAYABA Provides Value for the Future
Through its Business Activities

AC Operations

KAYABA works to create value through concentrating its management resources on the three
Business Units of Automotive Components (AC) Operations, Hydraulic Components (HC)Operations, and the Special-Purpose Vehicles Division.

■ Market Share

Overview

With vibration control technology at the core, this business unit develops and offers a wide range of products
primarily for automobiles, motorcycles, and railway cars.
AC Operations’ products are at use in many situations
where comfort, safety and maneuverability are required,from secure, comfortable drives with the family towithstanding the harsh conditions of motorsports.

Source: KAYABA data (As of March 31, 2023)
Automobiles Shock Absorbers

Market sharein JapanWorldmarket share

38%

13%

■ Main machines that use KAYABA products
Automotive

Motorcycles
Market sharein Japan■ Others 0.8%

38%

Railroad Equipment

Motorcycle Front ForksWorld
market share

Market sharein Japan

13%

48%Strategy■ Others 1.3%

■ Special-Purpose Vehicles 2.1%

■ System products 0.9%
■ Hydraulic equipment forindustrial use 30.2%

Special-Purpose
Vehicles Div.

With power control technology at the core, this business
unit develops and offers various kinds of hydraulicequipment for construction machinery and industrial
vehicles. In addition, it expands the potential of hydraulics
to new areas, such as for stage mechanisms that support
theater productions. It deals in compact precision,
digitization, and the creation of systems, thereby providing support at the sites where manufacturing takes place.

HC Operations

32.0%

Net Sales■ Market Share

Source: KAYABA data (As of March 31, 2023)
Hydraulic cylinders for construction
machinery (by excavator machine mass)World
market shareWorldmarket share

More than 10t

Less than 10t

22%

40%

Business Strategy■M ain machines that use KAYABA products

AC Operations

64.6%

Value Creation

HC Operations

2 .1 %

Construction Machinery

Industrial Vehicles

Agricultural Machinery

Marine Products■ Shock absorbers
for automobiles 46.9%■ Shock absorbers for motorcycles 10.6%■ Hydraulic equipment for automobiles 4.9%
■ Others 2.2%

Special-Purpose Vehicles Div.
This business unit develops and manufactures speciallyequipped vehicles, mainly the concrete mixer trucks forwhich it enjoys the top domestic share. The products havea lineup that ranges from small to large sizes, and they
increase work efficiency on construction sites with highkneading, discharge, and environmental performance.

Our Inherited

DNA

Data

Application of Technology
Sports and social welfare
products
We use our core technology todevelop products used for sports
and social welfare.
Chair Ski■M ain machines that use KAYABA products
Special-Purpose Vehicles■ Market Share

Source: KAYABA data (As of March 31, 2023)
Concrete Mixer Truck

Market sharein Japan85%

Note: K
 AYABA has been involved in the business of hydraulic equipment for aircraft since our establishment. However, as a result of a comprehensive reexamination of ourbusiness portfolio and in order to strengthen corporate competitiveness through the selection and concentration of management resources, we decided to withdraw fromthe aircraft components business in February 2022. We are in the process of phasing out all operations of the Aircraft Components Division, including repairs.

45

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46

Business Strategy

Automotive Components (AC) Operations

Overview

Delivering Environmental Compatibility,
Ride Comfort, and Excitement
With Original Development Capabilities

Risks and Business Opportunities in the New
Medium-Term Management Plan

1. Raise each person’s awareness of norms and work
style reforms
2. Engage in quality assurance aimed at OwnProcess Completion
3. Unceasingly raise productivity on the foundation
of KPS/Ship'30
4. Technological development that makes customers
choose KAYABA

Minoru Ishikawa

General Manager,
Automotive Components Operations,
Senior Managing Executive Officer

Vane pumps for CVT

KADS for motorcycles

Active suspension systemfor bullet train*KADS: KYB Actimatic Damper SystemTM■ Main Products SA for automobiles
SA for motorcycles

Shock absorbers (original equipment, aftermarket), suspention systems
Front forks (FF), rear cushion units (RCU)

Hydraulic equipments Vane pumps, vane pumps for continuously variable transmissions (CVT), hydraulic power steering systems,
for automobiles
electric power steering (EPS)
Stay damper, SA for all-terrain vehicles, free locks, railroad equipments (dampers, brakes, suspension systems)

Othersissues while taking on the challenge of achieving monozukuri that ends defect losses and reduces waste.
We are striving for wide-ranging productivity improvements through Ship'30 and AI/DX. Some of our
production lines are already producing productivity
improvement results through the installation of image
inspection AI and robot transportation, and we are aiming
to expand installation of this technology globally in 2025.
We will increase our human resources with automation-related production technology skills andpost-installation equipment management skills.
Furthermore, in addition to conducting regional sales
promotions and acquiring new customers, including local
companies in anticipation of future growth, we aim toquickly complete development of high-value-added
products such as electronically controlled suspensions,
SBW*1 systems, and electric pumps for e-Axle*2 and thenmove into the mass production phase.

Providing systems for all electric / hydraulic mechanisms

Electronic
control

Sens

Think

ECU +
Hydraulic equipment

Act

Electrification
Autonomous
Actuator
Damper Steering

Accurate and high-quality movement
Improve maneuverability quality
Energy conservation
Combine electric powerand hydraulics

Cooperative control systems
SystemSafetyComfortUser-friendliness

Reaction force actuator

Steering actuator

Electronically controlledsuspensions*1 Steer-by-wire (SBW): A steering system for the era of automatic driving that connects an automobile’s tires and steering wheel with an electrical signal in a constant exchangeof steering information and reaction force from the road surface.
*2 e-Axle: A unit that integrates the travel motor, inverter, and transaxle (speed reduction mechanism).

Net Sales

Segment Profits(¥ million)(¥ million)

4００,０００

25,０００３００,０００“From environmental responsibility to the excitement of motorsports,
we will continue our initiatives and efforts to remainboth a pioneer and a specialist in our fields.”

SAs

Data

Due to a lagging market recovery in some sectors of
our product fields and sharp rises in raw material prices,
we were pressed to deal with increases in fixed andvariable costs. However, there were signs of positivechanges, and we had a year-on-year increase in sales
and profits.

There is a range of risk factors in the environment aroundus, including climate change, energy, human resources, andgeopolitics. In the automobile industry, emerging forces
are growing rapidly with the acceleration of the trend
towards electric vehicles, and it is highly likely that thiswill redraw the lines of the conventional power structure.
As we face sharp rises in inflation, raw material costs,
energy costs and labor expenses amidst an increasingly
unstable international situation, we are seeking to be acompany that customers choose regardless of which
unforeseen circumstances occur. In the 2023 mid-term
plan, we will provide basic education on TQM to all
employees and further its application by each individualon the business level, which will lead to the improved
performance of the organization. And we are working on
the stability and increase of quality at the product andprocessing level, the elimination of user complaints, andintensive improvements at plants dealing with quality

KADS* for snow mobile

Business Strategy

In the final year of the 2020 mid-term plan, we focused
our efforts on the following four points in AC
Operations.

FF/RCU for motocrossValue Creation

Looking Back on FY2022

Single piston-type electric power
steering for offroad vehicles

Strategy

As an independent manufacturer, we take pride in our strength of conducting unique development together
with our customers.
We promptly conduct driving trials and test prototype models with the latest testing equipment at the test
course in our Developmental Center, which expands the potential of our ideas. Another strength is the synergistic effect generated through the accumulation of know-how that includes knowledge from our global
development system and other Business Units (HC Operations and the Special-Purpose Vehicles Division).
We get involved in world-class motorsports races, where we can further increase our technological capabilities
through conducting developments that play a part in winning the championship.

Adjustable damping SA withproportional solenoid

278,511245,807

232,101

18,681

20,０００15,417

232,846
197,453

15,０００2００,０００

11,691
9,680

8,195

1０,０００1００,０００

０

5,０００

2018

2019

2020

2021

2022

■ Shock absorbers for automobiles ■ Shock absorbers for motorcycles■ Hydraulic equipment for automobiles ■ Others

０

(FY)

2018

2019

2020

2021

2022

(FY)

■

Notes: 1. A s a result of the review of segment management classification, railroad equipment that was previously categorized under the “HC Operation” is disclosed as part of
the “AC Operations” from FY2022.
2. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from net sales.

47

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48

Business Strategy

Automotive Components (AC) Operations

Evolving Core Technologies to Offer New Value

The major ingredient in the composition of the hydraulicfluid used in shock absorbers is petroleum-derived baseoil. In the event of a leak, there are concerns over theenvironmental impact as oil does not easily break downin nature. Also, there are cases in which it is burned as
an auxiliary combustion agent after disposal, causing
CO2 emissions.
KAYABA has eliminated the useof oil derivatives though conducting technological development on
hydraulic fluid for many years,
developing a fluid that has a low
environmental load by using

Fully Active Suspension System

Data analysis
Data collection

Inverter

Municipally managed road

Passengers don’t feel the movement

Steering

Think

*2

49

Taking on the JRCA Japanese Rally Championship

VerticalDamperOffer the ultimate in safety and comfort
Damper Steeringwithcooperative control that restrains
horizontal and vertical motion*1

Horizontal

Flat position

Emergency avoidanceSteering system

Cooperative
ControlA panel that was exhibited at the Tokyo Camping Car Show

Data

Actuator installed in the front of thevehicleCooperative Steering System / Control Suspension System

Operation
supportconcept car for the future at the Tokyo Camping Car
Show held in July of 2023, and was featured in various
media outlets.

Business Strategy

Fully active suspension systems provide the ultimate inride comfort—so much so that you might forget thatyou are riding in a vehicle.
This ultimate high-performance
product allows the user to freely
control its characteristics as it employs electronic control over thepressure generated by an electric
pump. However, it has conventionally
only been installed in some premiumclass vehicles.
We installed this technology in a
mobile home for the first time anywhere. It was announced as a

Feedback

M

Cooperative
Controlnaturally derived base oil.
We provide shock absorbers containing this hydraulicfluid for Toyota Motors’ carbon neutrality initiative of thehydrogen engine-equipped
Corolla, working as acompany that cooperates intheir carbon neutrality
activities. We held exhibitions on the technology
behind this hydraulic fluid in
Toyota’s lounges located at
super endurance racing
venues.
At the Toyota lounge

Data transfer

Local government

Developing an Environmentally Friendly Next-Generation Hydraulic Fluid

Value Creation

Transmission Motor
axle

Smart Road Monitoring

COLUMN

Strategy

In order to respond to a greatly changing marketplacewith the shift toward EVs, CASE*1, and MaaS*2, we aredeveloping high-added-value products—such as semi
active, fully active, and height adjustment suspensions—based on our company’s core technologies.
Our vibration control technology supports transportmachinery such as automobiles and railways, and isrequired to provide a high degree of safety and comfort.
With the progress of electrification and automation, thefocus is switching from drivers to passengers. There isemphasis on the need for “having fun while travelling,”
and greater comfort than ever before is required.
Therefore, we are collecting and analyzing road surface
and vehicle movement data, and developing semi active
and fully active suspensions that make control in realtime a reality. Steering systems restrain horizontal
motion, while suspensions restrain vertical motion, andbeing able to coordinate them is growing in importance.
Electric pumps for e-Axle are required to have cost
performance, variations by function ande-Axleoutput, small size, high efficiency andoptimized balance. In order to achievethese, we will reduce electricity and fuelconsumption in EVs by expanding ourline-up of products by function and output and developing next-generation MCUs (motor and ECU).

Also, we are fusing our vehicle measurement technology and analysis technology with AI and IoT to provide“Smart Road Monitoring.” This service will support roadmaintenance management work by using dedicateddevices installed on vehicles to automatically collectinformation on road conditions and detect abnormalities. The Basic Technology R&D Center is leading theadjustment of the functionality of this service to prepare it for release.
To secure a position as a supplier in the EV shift witha background in high technology, we will provide
high-value-added products that meet customer needs
such as quiet operation, spaciousness, maneuverability,
low vibration, and ride comfort.

Overview

The Value AC Operations Offers

Control suspension system

In April 2022, we launched the
KAYABA Rally Team as a project
activity. The team competed in the
JRCA Japanese Rally Championshipthat got underway in February 2023.
The team members were assembled
through open in-house recruiting. They
are gaining experience with the races
while developing their skills as engineers and mechanics and building
their awareness of product development that wins championships.

 onnected cars, autonomous driving, sharing and electrification. This keyword indicates the trend in the automobile industry.
CMobility as a Service. A new concept in the transportation service industry for integrating various means of transportation into a single service.

KAYABA Group Report 2023

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50

Business Strategy

Hydraulic Components (HC) Operations

Overview

A History of Setting Industry Standards
Seeking New Possibilities with Hydraulics

Risks and Business Opportunities in the New
Medium-Term Management Plan

“Using the vast amount of industry data
and know-how that has been passed down to us,
we will create new added value with a focus on automation.”

Integrated HST (Pump and motor)

MMP

Leak detection cylinders

Large stern crane■ Main Products Hydraulic equipment
for industrial use

Cylinders, valves, pumps, motors, mini-motion packages (MMP), hydrostatic transmissions (HST), seal

Auditorium and stage control systems, tunnel boring machines

OthersThere is a growing societal demand for decarbonizationand energy conservation, and we will respond by focusing on creating new added value, centered aroundautomation and electrification compatibility, as well as
the development of leading products in the next term.
The long-term forecast in demand for mini excavators in
the U.S. market remains firm, so we are working on the
production capacity to meet that demand while conducting sales promotions in the forestry industry. Also, we plan
to enter the Indian market, which is forecast to see expanding need for agricultural machinery products.
Flexibly evolving our production system so that it can
respond to the demand fluctuations of the times isimportant. It is also critical to build production systems
and reform ways of working through the visualization of
production information using IoT, AI and DX. In particular,
we are aiming to achieve tremendous productivity improvements and safe manufacturing workplaces throughthe automation of transport, assembly and component
processing in material handling.
Also, we are focusing on the human resources aspectwith education by position and continuous humanresources training through the Small Group Activity,
making efforts to improve the quality of products throughimproving the quality of work, and making TQM take roota second time.
Providing systems for all hydraulic mechanisms

Electronic
control
Sens

Hydraulic
System
PUMP

Ichio Nemoto

51

KAYABA Group Report 2023

VALVE

P

Service

Segment Profits(¥ million)

200,０００

20,０００141,572
125,321

137,876

15,０００111,348０In-house development
Breakdown prediction
Oil leakOily condition
Optimum maintenancedetection sensor detection sensor
Condition monitoring

12,354

11,836

1０,０００100,０００

Load Sensing

Information System

Net Sales

140,625

A system for supplying the required flow/pressure

Improve operability
Low energy consumption(¥ million)

150,０００Act

Self-driving
Remote control

7,507
5,531

5,501

2019

2020

5,０００

5０,０００General Manager,
Hydraulic Components Operations,
Senior Managing Executive Officer

Think

ECU +
Hydraulic equipment

Data

The risks identified include the impact of rising interest
rates in the United States, declining demand in thelargest construction machinery market of China, thedrawing out of the Russia-Ukraine conflict, the impact
of sudden fluctuations in the exchange rate on performance, growing inflation, the shortage of humanresources becoming more serious, and the expansionof costs for responding to environmental concerns.
The unstable market environment is not forecasted tochange in the medium term of 2023. However, we willcontinue to secure sales and profits by maintaining theearnings structure in our existing businesses whilesafeguarding our market share. Additionally, we will strive
to gain our customers' understanding regarding thenecessity of passing on the increased costs, stemmingfrom factors such as the notably sharp rise in steel prices
and energy expenses for lighting and heating in FY2022.

Hydraulic cylinders

Business Strategy

Segment profits were ¥7.5 billion, or a ¥4.3 billion
decline compared to the level recorded in the previous
consolidated fiscal year, due to the impact of factors
including a decline in manufacturing caused by downward revisions to customers’ production schedules in
response to falling demand in China and tightness inthe supply of semiconductors, as well as increases invariable costs related to manufacturing caused by sharp
rises in raw material and energy costs.
While the business environment was challenging, webegan to see positive signs, such as expanding ourlineup of load sensing products, particularly electronic
control valves for mini excavators, and the start of trial
manufacturing for a hydraulics monitoring system thatcan detect signs of a breakdown in hydraulic components and the machine in which they are installed,
leading to breakdown prevention.

Travel motor/ Swing motor

Value Creation

Looking Back on FY2022

Piston pump

Strategy

KAYABA has been a pioneer in devices that have led Japan’s hydraulics technology since hydraulic excavators
first entered Japan in the 1960s. We believe a major strength for the Company lies in how it continues to
evolve while passing on vast amounts of data and know-how.
In construction machinery, our product quality and efficient manufacturing processes have been fine-tuned
with feedback from many years of market performance. Also, we contribute to shorting lead time and energy
conservation in the machines that incorporate our products through proposing optimal systems made possible from our development, design, and manufacture of all hydraulic devices, such as pumps, control valves,motors, and cylinders.

Control valve

2018

2019

2020

2021

■ Hydraulic equipment for industrial use ■ System products2022■ Others

０

(FY)

2018

2021

2022

(FY)

■

Notes: 1. A s a result of the review of segment management classification, systems products that was previously categorized under the “Special-Purpose Vehicles Division” isdisclosed as part of the “HC Operations” from FY2021.
2.	As a result of the review of segment management classification, railroad equipment that was previously categorized under the “HC Operation” is disclosed as part of
the “AC Operations” from FY2022.
3. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from net sales.

KAYABA Group Report 2023

52

Business Strategy

Hydraulic Components (AC) Operations

2020

Computerization/Introduction of ICT

Excavator

AnalogExpand pump lineup
Introduce electronic controls for control valves
Improve maneuverability and durability,
reduce noise and decrease costs

TrendsLower noise and fuel consumption, improved operability,
safety, and ability to respond to multiple operations

Respond to attachment diversification and electrification

Respond to exhaust gas restrictions
Transition to a load load-sensing

Develop load sensing system
Expand lineup
Introduce electronic controls

Mini-excavator

COLUMN

Swing motor
Piston pumpSelf-driving
Improved operability/ workability
Energy and space saving

Control valve

Travel, swing

Motor

Hydraulics

Sending out
hydraulic fluid

CylinderReciprocating
motionHydraulics

Motor

Hydraulics

Sending out
hydraulic fluid

Valve

Hydraulics

Sending out
hydraulic fluid

Travel, swing

CylinderHydraulics

Reciprocating
motionValve

Hydraulics

Sending out
hydraulic fluid

Pump

Pump

Fuel

Hydraulicmotor

Short-range wirelesscommunication

Battery

53

KAYABA Group Report 2023

Construction
machine ECU

Receiver・Judgment function
・Communication
function

Power generationand supply equipment
Device sensing expansion / data connection(including mother machine)⇒ Necessary to build optimized control technology
for electrically powered hydraulic systems

We transferred the conventional systems that detectleaks in hydraulic cylinders with sensors and systems
that monitor the condition of the fluid to the productdevelopment stage. They monitor cylinder leaks and thecondition of the fluid within the system, and predict andprovide warnings on the deterioration of consumable
goods and the occurrence of breakdowns in hydraulicequipment. This product contributes to effective maintenance work for construction machines and equipment
manufacturers and users by defending against unexpected operation suspensions in construction machinesor equipment and minimizing lost time spent exchanging components and the impactof the costs for replacements.

Fluid condition
monitoring sensor

Kayaba’s technologies

Kayaba’s technologies

EngineTowards a replacement
for hydraulic electric
devices⇒ Strengthen technology
exchanges withcustomers andinformation collection
activities(Also make progresswith development ofelectric items)

Leak Detection System that Uses IoT to
Monitor the Condition of Hydraulic Fluid

Data

Travel motor

Against a backdrop of market trends toward automation
and unmanned operations, in products for hydraulicexcavators, we completed development on an electromagnetic proportional control valve for mini excavators(three-ton to six-ton class). It is KAYABA’s first electronic
control product, and we have launched its mass production. The fluid path is the same as the current model,
and we have achieved compatibility with electronic
controls using proportional solenoid.
Also, we launched mass production of improved
models of travel motors for seven- to eight-ton classmini excavators as part of the lineup of our mainstay
MAG series (travel motors equipped with reduction
gears). With this low-cost model, we are responding torequests for price reductions in the market by reducing
the number of components while ensuring maneuverability and durability.

Business Strategy

CylinderValue Creation

Full electrification

Digital ▶ Electromagnetic proportional control

Respond to exhaust gas restrictions*1 Actuators: A drive device that converts energy in a linear or a rotary motion bymeans of a hydraulic or electric motor.
*2 Load sensing: A system in which the load sensed by the valve is sent to thepump. The system is able to adapt the flow rate to the pressure required for
operation.

Electro-hydraulization

Automation, remote work andaddressing environmental issues

Use of IoT and big data

Hydraulic pilot control

New Products in FY2022
Present

2023

TrendsStrategy

Our unique technology makes possible systems
proposals and high-level control
KAYABA is one of the few manufacturers of all components in the power train mechanisms of construction
machinery, such as control valves, piston pumps, travel
motors, swing motors, and cylinders. This affords us
the great competitive advantage of being able topropose systems to construction machinery manufacturers. And we’re engaging in the latest technologicaltrends of remote control, automation, and unmanned
operations through developing an electronic control
system with all types of actuators*1 that minimize
energy consumption by moving efficiently and smoothly at the will of operators from a combination ofelectronic controls for hydraulic pumps and control
valves with sensing technology.
We are expanding our product lineup of pumps andload sensing devices*2 to match various sizes of construction machinery and offering them to customers
around the world.
In sensor development, we are working to combine
sensors that detect leaks and monitor the condition of
the fluid in hydraulic devices with DX technology,

Medium-Term Management Plan

Market Trends and KAYABA Technologies

Overview

offering optimal maintenance. And we are responding
to market needs such as low fuel consumption, low
noise, improved maneuverability, and the diversificationof attachments to ensure that construction machinery
equipped with KAYABA products can be used for alonger time. Also, by endeavoring to lower CO2 emissions through conserving energy in the production
process, we are contributing to a sustainable society.
In leading edge technologies such as electronic
controls and electrification technology, we can apply theknowledge and technology of products for the automobile market to HC Operations, which gives KAYABA an
advantage that no other company has. Going forward,
we will work to create new added value on the basis of
our electronics and hydraulic technologies, such asenvironmental compatibility, performance improvements, information collection features, failure detection,
optimization of the maintenance cycle, and condition
monitoring systems, and respond to social demands
such as engaging in the SDGs and efforts for carbon
neutrality.

The Value HC Operations Offers

Electromagnetic proportional
control valve

Seven-ton class travel motor

Leak Detection Cylinders

Construction machine
network communicationequipment

KAYABA Group Report 2023

54

Business Strategy

Special-Purpose Vehicles Division

Overview

A History of Creating Products that Meet
Customer Needs with Hydraulic andCustomization Technology

Concrete mixer trucks

Granule carriers

Pruned tree shredder trucks

Tilting drum mixing machines

We offer new added value by visiting customers and creating products that respond to their various needs.
KAYABA’s concrete mixer trucks are equipped with specialized hydraulic equipment that we make, which
contributes to the stable operation of the product. By making it possible to provide a stable supply of the fresh
concrete that is critical to construction work, they support urban development and infrastructure construction.
Also, they play an important role that impacts repair work in times of disaster, and we are proud that our
product contributes to the safe and comfortable lives of people.

Net Sales

Segment Profits(¥ million)(¥ million)

1,2００

12,０００

9,109

8,602

8,270

9,161

9,221

896

A concept model of a mobile
home

2018

2019

2020

2021

2022

Ichio Nemoto

55

KAYABA Group Report 2023

2018

2019

2020

2021

2022

(FY)

■

■

Notes: 1. A s a result of the review of segment management classification, systems products that was previously categorized under the “Special-Purpose Vehicles Division” isdisclosed as part of the “HC Operations” from FY2021.
2. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from net sales.

COLUMN

Using Wood Chips
The Wood Chip Transporter with Shredder has conventionally been used for the maintenance of roadside trees.
However, recent calls to respond to environmental issues
have increased the value of its use, because its mobility
means it can process wood from mountain forest thinning, while the generated wood chips can be used tocondition soil.
Further, it is possible to promote composting by using
the generated chips as secondary material for organic
compost and mixing with the tilting drum mixing machines, and their use as woody biofuel by creating pellets
is attracting attention. We are actively expanding so thatKAYABA’s technology can be applied in the field ofenvironmental business.

“We are aiming to be the leading mixer manufacturer
by strengthening after service and launching
high-value-added products.”

General Manager,
Special Purpose Vehicles Division,
Senior Managing Executive Officer

０

(FY)

e-Mixer, an environmentally friendly concrete
mixer truck
In response to demands for environmental considerationthat have been rising over the years, we create our
e-mixer electronically controlled concrete mixer truck in
2004.The drum that stirs fresh concrete is conventionallyturned by the engine, but the e-mixer uses a dedicatedelectronically controlled hydraulic pump and motor that
automatic controls the optimum engine speed. Keeping
fuel consumption low contributes to reducing CO2
emissions. Also, the electronic controls reduce noise byhalf when it is operating (hearing comparison).
We have continued to make improvements after thetruck went on sale, and in 2023 we released the latest
model, e-Mixer III. In addition to being installed with a
new type of ECU, it has a touch panel monitor near thedriver’s seat that makes it easy for the operator to beaware of the conditions of the mixer truck, further
increasing convenience.
Low fuel consumption (yearly)

CO2 emissions reduction (yearly)

Approximately 240 L per truck

Approximately 630 kg of CO2 per truck

Data

We have identified a drop in demand due to a tapering
off of demand for fresh concrete and cement and thetermination of business by our partners in the supply
chain as causes of potential risks.

559

6００

Business Strategy

Risks and Business Opportunities in the New
Medium-Term Management Plan

０803

Value Creation

The business environment for the year saw a range ofnegative factors, with truck manufacturers’ chassis
supply stagnating due to the impact of the semiconductor shortage, and production schedules needing to bechanged as necessary. However, we worked on a
flexible production system so that we could send evenone more concrete mixer truck to our many customers.
Sales increased as a result, but segment profits declined due to increases in raw material prices.

The use of EV trucks is a matter that we must engage
in going forward. In order to advance technology development and human resource training, we newly
established the Electric Drive Development Sect.
During FY2022, we were able to take steps towardmedium-term growth. We completed development on
our e-Mixer III, which latest model with a reduced
environmental burden and that features low noise andlow fuel consumption, and made sales. Also, we announced the concept model of a mobile homedeveloped with the cooperation of AC and HC
Operations. Seeking future growth, we will commercialize the mobile home and conduct sales promotions forexisting products, such as ourtilting drum mixing machines
and Wood Chip Transporter
with Shredder, which respondto social demands such as the
SGDs and carbon neutrality

948

737

6,０００

Looking Back on FY2022

Strategy■ Main Products Special-purpose Vehicles Concrete mixer trucks, granule carriers, pruned tree shredder trucks, specialfunction vehicles

Jun Katsuki

Deputy General Manager,
Special Purpose Vehicles
Division

Thinned wood

Using wood chips forconditioning soil and biofuel

Note: equivalent to 1.2 barrels

KAYABA Group Report 2023

56