Message from the President

Hiroshi Mihara  Regarding the results for the first half of the fiscal year ending March 31, 2017, despite the effect of yen’s appreciation, the KOITO GROUP’s net sales increased over the previous fiscal year due to solid growth of automotive lighting equipment as our core business. The increase was mainly attributable to newly gained orders and a shift in automobile lamps to LED. As for profits, operating income, recurring profit, and net income all increased as a result of the increase in orders and rationalization effect in Japan and overseas.

 Regarding the outlook for the fiscal year ending March 31, 2017, revenues are expected to increase in Japan due to the expansion of new orders and the market transition to LED automobile lamps despite the decrease in automobile production volume. For overseas business, while new orders are expected to grow mainly in North America and China, and a shift in automobile lamps to LED, revenues on a consolidated basis are expected to fall from the previous fiscal year due to the effect of yen’s appreciation. On the earnings front, although sales increase in Japan, operating income and recurring profit are likely expected to decrease compared to the previous fiscal year due to the exchange rate conversion in overseas. However, net income is expected to rise as a result of an extraordinary loss from one of our subsidiaries posted in the previous fiscal year.

 For the purpose of sales expansion of automotive lighting equipment in the mid- and long-term perspective, the KOITO GROUP is pursuing to reinforce its production capacity and strengthen its development capability around the five major regions of the world (Japan, North America, Europe, China, and Asia).
 With a view to expanding market share, the KOITO GROUP will continue to strive to win orders, expand its production capacity, enhance productivity, reinforce its mutually complementary supply network, and establish business systems that can quickly respond to changes in the market, and promote compliance and corporate governance to establish an even more reliable corporation.

 The KOITO GROUP, with our corporate message “Lighting for Your Safety”, strives to develop our mainstay automotive lighting equipments in order to contribute to society.
 As a leading automotive lighting equipment manufacturer, we will continue to develop the newest and the best technologies, improve the performance and quality of our products, promote training for employees to raise their performance and skills, as well as staying true to our basic stance to adopt the perspective of customers to supply products and services that meet their expectations.
 We would greatly appreciate your continuous understanding and support.
October 2016
President
Hiroshi Mihara