Message from the President

Hiroshi Mihara Regarding the results for the first half of fiscal year ending March 31, 2020, the KOITO Group’s net sales increased over the previous fiscal year due to an increase in new orders in the mainstay automotive lighting equipment segment and a shift in automobile lamps to LED.
 As for profits, although KOITO implemented rationalization in Japan and overseas, operating income, recurring profit, and profit attributable to owners of parent decreased year on year due to the increased R&D expenses and depreciation cost for capital investment to meet new orders.

Regarding the outlook for the fiscal year ending March 31, 2020, although new orders and the market transition to LED automobile lamps are expected to expand, net sales are expected to decrease due to the decrease in automobile production volume and the effect of currency exchange.
 On the earnings front, operating income, recurring profit, and profit attributable to owners of parent are all expected to decrease due mainly to the decrease in net sales, expansion of R&D expenses, and an increase in depreciation cost for capital investment to meet new orders.

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 in the five major regions of the world (Japan, North America, Europe, China, and Asia). In addition to plant expansion at NAL Mexico in July 2019, KOITO is scheduled to commence operations at Malaysia in December. Furthermore, in 2020, KOITO is slated to expand plant in Koito Czech, and to newly open a production plant in Gujarat in Western India.
 KOITO will also strengthen its development capability, and respond to the future changes in mobility, such as connectivity, autonomous driving, sharing, and electric vehicles.
 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.

Under our corporate message, “Lighting for Your Safety,” the KOITO Group, as an automotive lighting and electrical equipment manufacturer, is committed to create new value sought by customers. Moreover, we will continue to contribute to the development of the automotive industry and of the society through providing safe, reliable, and trustworthy products and services.
 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 2019
President
Hiroshi Mihara