KOITO MANUFACTURING CO.,LTD.

I would like to express my sincere appreciation for your continued support.

Regarding our financial results of the 1st half of fiscal 2023, the year ending March 31, 2023, while the KOITO’s Group’s net sales increased year-on-year due to the effect of foreign exchange conversions in North America, China and Asia segment, etc., the operating income, the recurring profit and profit attributable to owners of the parent decreased year on year, due to an increase in fixed costs accompanying the sudden fluctuation in production especially in Japan and China and deteriorating employment conditions in North America, as well as a rise in various costs such as raw material costs, distribution costs, and utility costs.

The KOITO’s business forecast for fiscal 2023, the net sales are expected to increase year on year due to a recovery in automobile production, new orders, and the effect of foreign exchange conversions.
　On the earnings front, despite the expected effects of profit improvement activities, the operating income and the recurring profit are expected to decrease from the previous year, due to the significant impact of the lockdown in Shanghai and the shortage of semiconductors in the 1st half of the year, and profit attributable to owners of the parent is also expected to decrease due to the loss on valuation of investment securities.

The KOITO Group has formulated the "KOITO VISION - Lighting the Way for Our Sustainable Future -" and has set the following management targets for Fiscal 2031: consolidated net sales growth of 5% per year on average, and consolidated operating income ratio of 10% or more.
　This is to clarify the strategies which the KOITO Group should take, under the unpredictable business environment with uncertain factors such as the COVID-19, the shortage of semiconductors, and the economic situation.

"KOITO VISION" is our long-term vision, which consists of the three pillars of "Enforcement of Corporate Foundation", "Sustainable Growth", and "Coexistence with the Earth and Society".
　In "Enforcement of Corporate Foundation", we will promote activities to enhance corporate credibility, such as strengthening and reforming "manufacturing and human-development", in addition to enhancing our BCP framework and corporate governance.
　We will achieve "Sustainable Growth", by expanding our global market share including motorcycles, and by developing and commercializing technologies and products that contribute to the next-generation mobility society based on the theme of "light".
　In "Coexistence with the Earth and Society", we will aim to be an essential company for all in particular, in terms of "global environment", we will work to reduce environmental impact substances throughout product life cycles, and regarding "people, corporate culture", we will respect for each values and create a culture and system that will enable our employees to strive for continuous challenges.

We will continue our efforts without forgetting 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.