KAYABA Group Report 2022

April 1, 2021-March 31, 2022

KAYABA will contribute to the sustainable development of the planet and society as a global leader in vibration and power control built on our core technology of hydraulics.

"Everything in use is still developing, a legacy from the past.The world continuously seeks that which is new.The unique ability of humankind to progress lies in its constant search for perfection." Shiro Kayaba left these words behind, and they are the key to our future. Kayaba is returning to our origin as a company rooted in the craftsmanship of manufacturing in order to contribute to the creation of a prosperous future through ingenuity and constant improvements and the lasting development of society. And from there, we will keep moving forward.

Masao Ono

Representative Director, and

President Chief Executive Officer (CEO)

Automotive Components (AC) Operations

  • Main Products

Shock absorbers for automobiles: Shock absorbers (original equipment (OE), aftermarket)

Shock absorbers for motorcycles: Front forks, rear cushion units

Hydraulic equipment for automobiles: Vane pumps, vane pumps for continuously variable transmissions (CVT), hydraulic power steering systems, electric power steering (EPS)

Others: Shock absorbers for all-terrain vehicles, free locks, dampers for railroad cars, brakes for railroad cars, active suspension systems for railroad cars

Basic Strategy

  • Strengthen: Stabilization of our revenue base
  • Evolution: Innovative monozukuri
  • New initiatives: Creation of high-value-added products

Vane pump for CVT

Active suspension

Front fork

system for bullet train

  • Market Share Source: KAYABA data (As of March 31, 2022)

Automobiles Shock Absorbers

Motorcycle Front Forks

Market share

World

Market share

in Japan

market share

in Japan

40%

13%

47%

Goal for FY2022

Establish a position as a core supplier

by further strengthening existing projects and core technologies

Net Sales*1

Segment Profits*2

(¥ million)

３００,０００

243,725

245,807

232,101

232,846

197,453

2００,０００

1００,０００

０

2017

2018

2019

2020

2021

(FY)

  • Shock absorbers for automobiles ■ Shock absorbers for motorcycles

■ Hydraulic equipment for automobiles ■ Others

(¥ million)

20,０００

15,417

15,０００

11,696

10,618

9,806

8,196

1０,０００

5,０００

０

2017

2018

2019

2020

2021

(FY)

*1. As of FY2017, "Royalty income" and "Revenue related to mold compensation," which were previously recorded in "Other income" in the Consolidated Statements of Income, are included in "Net sales."

*2. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from net sales.

Technological Strategy

Evolving our CoreTechnology to Offer New Value

In order to respond to a market that is undergoing a major transformation due to electrification and EVs, KAYABA is developing high-value-added products centered on our core technology and aiming to offer the optimum products to our customers.

  • Our vibration control technology supports transport equipment such as automobiles and railroads, and they are required to deliver outstanding safety and comfort. Therefore, we are collecting data from road surfaces and running vehicles to advance the development of an active suspension that makes real-time control a possibility, among other initiatives.

Also, fusing our vehicle measurement technology and analysis technology with AI and IoT, we have started a "Smart Road Monitoring." This service supports road maintenance management work by using dedicated devices installed on vehicles to automatically collect information on road conditions and detect abnormalities. We have completed verifications of the functions through trial applications in cooperating municipalities, and are adjusting the functionality of this service to prepare it for release.

Hydraulic Components (HC) Operations

  • Main Products

Hydraulic equipment for industrial use: Cylinders, valves, pumps,

motors, mini-motion packages (MMP), hydrostatic transmissions (HST)

System products: Equipment for military vessels, seismic isolation and vibration suppression devices, simulators, hydraulic systems, tunnel boring machines, environmental devices

Control valve

Hydraulic cylinder

Travel motor

Integrated HST (Pump and motor)

  • Market Share

Source: KAYABA data (As of March 31, 2022)

Hydraulic Cylinders

World

market share

25%

Basic Strategy

  • Respond to automation and complex needs
  • Promote cost reduction and local procurement

Goal for FY2022

A business that continues to be

trusted by customers with products used around the world

Net Sales*1

Segment Profits*2

(¥ million)

180,０００

140,625

141,572

122,787

125,321

111,348

120,０００

6０,０００

０

2017

2018

2019

2020

2021

(FY)

■ Hydraulic equipment for industrial use

■ System products

■ Others

(¥ million)

20,０００

15,０００

11,304

11,907

12,354

1０,０００

6,553

5,534

5,０００

０

2017

2018

2019

2020

2021

(FY)

*1. As of FY2017, "Royalty income" and "Revenue related to mold compensation," which were previously recorded in "Other income" in the Consolidated Statements of Income, are included in "Net sales." We are disclosing that Systems Products are included in HC Operations as of FY2021 as a result of a review of segment management classification.

*2. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from net sales.

Technological Strategy

OriginalTechnology that Makes Sophisticated Control a Reality We are continuing with the development of electronic control models of hydraulic equipment. Going forward, through the upgrading of electronic control systems, we will strengthen our ability to make proposals in line with technological trends such as remote operation, automation, and unmanned operation.

  • The control valve is likened to the "brain" of a piece of construction equipment. It controls all types of actuators (a drive device that converts energy in a linear or a rotary motion by means of a hydraulic or electric motor), and smoothly performs movements. According to that analogy, the pump would function like the "heart," and it is there we will generate new value by making advanced controls possible with a fusion

that brings together KAYABA's strengths of hydraulic technology, electric controls, and sensing technology.

  • We are working on load sensing in order to respond to market needs such as low noise, low fuel consumption, improved

operability, and attachment diversification, as well as the increasing necessity of environmental compatibility.Load sensing provides benefits including making simultaneous or combined operations that depend on operator's experience easier, conserving energy, and making electrification and automation possible without affecting the load. For social needs such as SDGs and carbon neutrality, we are moving forward with efforts for the next generation, such as the research and development of electrified products.

Special-Purpose Vehicles Division

  • Main Products

Concrete mixer trucks, granule carriers, pruned tree shredder trucks, specialfunction vehicles, tilting drum mixingmachines

Concrete mixer truck

Concrete pouring chute

Inside the drum

Product Lineup

  • Market Share

Source: KAYABA data (As of March 31, 2022)

Concrete Mixer Truck

Market share

in Japan

86%

Basic Strategy

  • Achieve continuous growth, aim to be a business that makes our employees feel pride.
  • Undertake business that is kind to the planet and to people

The Special-Purpose Vehicles Division strengthens its profit structure through the development of high-value-added products for domestic market needs, and accelerates the research and development of new products that can contribute to the decarbonization of society as well as next-generation products in collaboration with other business units. Overseas, it is advancing with the development of the foundation for a special equipment global system through the formulation of new overseas business plans.

Net Sales*1

Segment Profits*2

(¥ million)

12,０００

9,559

9,109

8,602

9,161

8,270

6,０００

０

2017

2018

2019

2020

2021

(FY)

(¥ million)

1,2００

896

948

803

737

701

6００

０

2017

2018

2019

2020

2021

(FY)

*1. As of FY2017, "Royalty income" and "Revenue related to mold compensation," which were previously recorded in "Other income" in the Consolidated Statements of Income, are included in "Net sales."

*2. Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from net sales.

C O L U M N

Products + Human Resources + the Future

A New Challenge for KAYABA

Mobile Home Research Project

The team formed for this project centers on the Special-Purpose Vehicles Division, but also taps the experience of AC Operations, HC Operations, and other R&D departments.

  • It uses KAYABA's vehicle customization skills and suspension technology to pursue safe and enjoyable driving, launching work on offering new value, such as vehicles that can serve as a living space in times of disaster.
  • Pursuing safety using technology
  • Offering living spaces during times of disaster

Vibration control technology +Power control technology

KAYABA Performance Highlights

Financial

Net Sales

(¥ million)

50０,０００

393,743

412,214

381,584

388,360

40０,０００

328,037

30０,０００

20０,０００

10０,０００

０

2017

2018

2019

2020

2021

(FY)

Segment Profit

(¥ million)

3０,０００

22,949

24,713

22,010

2０,０００

17,575

13,325

1０,０００

０

2017

2018

2019

2020

2021

(FY)

Note:■ Segment profit is calculated by deducting cost of sales and selling, general and administrative expenses from net sales.

Operating Profit (Loss)

(¥ million)

5０,０００

30,001

20,885

18,297

0

(28,496)

-5０,０００

(40,298)

2017

2018

2019

2020

2021

(FY)

■

Cash Flows (CF)

(¥ million)

4０,０００

29,252

22,576

20,826

24,247

17,047

2０,０００

1,146

10,418

0

(4,482)

(4,999)

(10,871)

(6,281)

(16,386)

(13,616)

-2０,０００

(21,505)

(32,711)

-4０,０００

2017

2018

2019

2020

2021

(FY)

CF from operating activities

CF from investing activities

CF from nancing activities

Profit (Loss) Attributable to Owners of the Parent

(¥ million)

8０,０００

4０,０００

15,202

17,087

22,549

0

-4０,０００

(24,757)

(61,879)

-8０,０００

2017

2018

2019

2020

2021

(FY)

■

Ratio of equity attributable to owners of the parent

（%）

60

43.7

33.9

35.3

40

25.9

20

18.1

０

2017

2018

2019

2020

2021

(FY)

Non-financial

Total CO2 Emissions: Scope 1 + Scope 2

（t）

0.740

0.778

（t）

40０,０００

0.674

0.687

0.800

173,288

174,115

30０,０００

154,462

169,557

0.600

20０,０００

0.400

42,928

38,433

32,123

33,689

10０,０００

96,944

91,271

77,934

81,210

0.200

０

2018

2019

2020

2021

(FY) ０

■ KAYABA

■ Domestic subsidiaries ■ Overseasc subsidiaries

Basic units

Note: The scope is the six plants of KAYABA, five domestic subsidiaries, and 17 overseas subsidiaries

Number of Employees (Consolidated)

(Person)

20,０００

15,427

15,439

14,754

14,718

14,472

1０,０００

０

2017

2018

2019

2020

2021

(FY)

■

Average Number of Paid Holidays, Days ActuallyTaken and Rate of Usage

(Days)

71.7

76.9

(%)

25

66.4

68.1

80

62.8

20

15.19

60

12.90

13.32

14.01

15

12.29

40

10

5

20

０

2017

2018

2019

2020

2021

(FY)

０

■ ■ Average number of paid holidays actually taken per employeeUsage rate

Disabled Employment Rate /

Legal Employment Rate of Persons with Disabilities

（%）

2.5

2.3

2.36

2.2

2.2

2.0

2.11

2.3

2.0

1.97

1.88

1.86

1.5

2017

2018

2019

2020

2021

(FY)

Disabled Employment Rate

Legal Employment Rate of Persons with Disabilities

Note: The scope of the paid vacation and disabled employee rates is for KYB Corporation.

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KYB Corporation published this content on 29 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2022 08:03:01 UTC.