Message from the President

Hiroshi Mihara Regarding the results for the first half of fiscal 2021, in all segments except for China, sales decreased year on year along with a decrease in domestic and overseas automobile production volume in mainstay automotive lighting equipment. By this, the KOITO Group’s net sales decreased over the previous fiscal year.
 As for profits, although the KOITO Group companies made aggressive efforts on rationalization, including cutting costs along with a significant and rapid decrease in sales, operating income, recurring profit, and profit attributable to owners of parent decreased year on year. This was attributable to capital expenditures for the new orders and the R&D investment for future growth.

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 due largely to the significant impact of decrease in global automobile production volume.
 Along with a decrease in sales, although KOITO continues to promote cutting costs and rationalization, operating income, recurring profit, and profit attributable to owners of parent are all expected to decrease due mainly to an increased depreciation costs for manufacturing new orders and R&D investment in developing next-generation products such as LiDARs.

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).
 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.
Oct. 2020
President
Hiroshi Mihara