Message from the President

Michiaki Kato It is my great pleasure to be newly appointed as a President of KOITO MANUFACTURING CO., LTD. at the meeting of the Board of Directors following the 121st Ordinary General Meeting of Shareholders held on June 29, 2021. As I will strive for the further growth of our business, I would like to ask for your continued support.
 In addition, I would like to express my deepest condolences to those affected by the Novel Coronavirus (COVID-19), and truly hope for this pandemic will soon come to an end. I would also like to express my heartfelt gratitude to healthcare professionals and essential workers, those who are struggling on the sites to maintain the lives of people.
 Putting the highest priority on the safety of customers, business partners, employees and their families, the KOITO Group is implementing various measures based on requests from the government and local governments for the purpose of preventing the spread of the COVID-19 pandemic.

Regarding our financial results in fiscal 2021, the year ended March 31, 2021, despite an increase in new orders in the mainstay automotive lighting equipment segment and a shift in automobile lamps to LED, the KOITO Group’s net sales decreased year on year due to a decrease in sales in Japan, North America and Asia compared to the previous fiscal year, caused by a decrease in the automobile production volume.
 On the earnings front, although KOITO strongly implemented cost reduction and rationalization in response to the decrease in sales, operating income, recurring profit and profit attributable to owners of the parent decreased year on year. This was attributable to the investment to meet new orders, and investment in R&D activities for the future growth.

Looking ahead, the global automobile production volume is expected to recover, even though the effects of the novel coronavirus continue, and the constraints in the supply and demand of semiconductors remain.
 The KOITO Group's net sales for the year ending March 31, 2022, are expected to increase year on year. Accordingly, even though we are planning to make further investment to meet new orders and promote R&D activities for the future growth, each of the operating income, recurring profit, and profit attributable to owners of the parent is expected to increase year on year.
Aiming to achieve our mid- to long-term sales expansion of the automotive lighting equipment, the KOITO Group is pursuing to reinforce its production capacity in the five major regions of the world (Japan, Americas, Europe, China and Asia).
 With a view to expand our market share, the KOITO Group will continue to strive to strengthen our order-winning activities, expand production capacity, enhance productivity, reinforce mutually complementary supply network, and establish business systems that can quickly respond to changes in the market, and establish an even more reliable corporation.

In order to deal with changes in the business climate of the automobile industry, the task of the KOITO Group is to establish development, production and sales systems, restructure and reinforce its management framework and organization, and achieve Sustainable Development Goals (SDGs) through our business activities as a global supplier.
 To accomplish this, in addition to developing new technology and new products that anticipate market and customer needs, the KOITO Group will enhance its ESG (environment, social and governance) activities as well as strive to strengthen its management systems, such as productivity improvement, cost reduction, and quality improvement activities.

As a leading automotive lighting equipment manufacturer, we will continue to develop the latest and best technologies, improve the performance and quality of our products, promote training for employees to improve 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 continued understanding and support.
Jun. 2021
President
Michiaki Kato