Message from the President

Hiroshi Mihara Regarding the results for the fiscal year ending March 31, 2020, 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 over the previous fiscal year due to a decrease in the global automobile production volume.
 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 a decrease in sales caused by a decrease in automobile production volume and increased R&D expenses, depreciation cost for capital investment to meet new orders.

The business climate surrounding KOITO is extremely challenging, as the Japanese and global economies are expected to show a significant recession due to sluggish consumer spending, deteriorating corporate earnings and employment situation caused by the expansion of the novel coronavirus pandemic, and intensifying trade dispute between the U.S. and China.
 In the automobile industry, global automobile production volume is expected to decrease significantly year on year due to sluggish demand for automobiles, and the impact of production suspension and production reduction in the first half of the fiscal year.
 Regarding KOITO’s business forecast for the fiscal year ending March 31, 2021, net sales are expected to decrease year on year, despite an increase in new orders and a shift in automobile lamps to LED in the mainstay automotive lighting equipment segment, due largely to the significant impact of decrease in global automobile production volume.
 On the earnings front, operating income, recurring profit, and profit attributable to owners of parent are all expected to decrease due mainly to a decrease in sales, the effect of currency exchange and an increase in depreciation cost.

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, Americas, Europe, China, and Asia). In addition to commencing operations at Malaysia in November 2019, KOITO has expanded plant in Koito Czech in May 2020.
 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.
July 2020
President
Hiroshi Mihara