KYB : Value Creation P23-P50 （2.21MB）

Technology Development

In their efforts to develop technologies and products, our research centers, business units, and group companies collaborate to combine vibration control and power control technologies with all underlying technol- ogies, such as electronic control technology. When compared with other driving methods such as electric power or pneumatic pressure, hydraulics can deliver a more powerful output from a small device. They excel in responsiveness, and are characterized by their ease of control. And even in the current era of rapid technological evolution, we believe that hydraulic technology will make a valuable contribution to the development of society. Therefore, we are not only further deepening our core technologies, but also responding to changing times by adopting cutting-edge technologies such as AI, IoT, the promotion of DX, and advanced simulations to promote the systemization of products. We are also taking on the challenge of developing the next generation of hydraulic equipment that offers both higher efficiency and better safety, such as automated ICT construction machinery using electronic control.

Conceptual Diagram of Kayaba'sTechnology

Value creation

Core Technologies

Technology Development System

Kayaba uses its engineering, global production, and sales sections in concert to promote new technology and value creation while actively engaging in the development of advanced technology aimed at the resolution of social issues such as energy conservation and the reduction of materials with environmental loads.

• At our Basic Technology R&D Center and Production Technology R&D Center, we investigate and analyze long-term environmental changes and the accompany- ing changes in the needs of society and our customers, and conduct R&D focused on the ideal for future technologies based on our forecasts and the creation of road maps that clarify the related long-term strate- gies. In basic research, we are conducting research for the next generation of businesses and products as well as underlying technology research, and converting the results into tangible assets by, for example, developing an integrated system that combines electronically controlled suspension and electronic power steering technologies for the self-driving vehicles of the future.

At the same time, the engineering divisions of each business unit are also improving the performance and lowering the cost of existing products, conducting original product development, and moving them into mass production.

• In the Engineering Div., we are conducting basic research, future technology research, and underlying technology research while using our intellectual property strategy and digital technology. We then use this re- search for product development and mass production at our business units and group companies in a process that accumulates and upgrades technology on a Group- wide basis. In addition, we are using the technologies and know-how we have accumulated from our R&D to move toward the in-house production of manufacturing equipment and metal molds. Further, seeking to opti- mize and accelerate our R&D, we are forcefully engaging in efforts for efficiency and productivity im- provements, such as data analysis using AI, in addition to actively promoting DX throughout the Group.

Kayaba'sTechnology Development Process

Control, vibration, information and communications, electrical/electronics, mechanical elements, sensors, surface treatment, heat treatment, processing, assembly, inspection, automation, etc.

Engineering Division

Each business units/Group companies

*CAE: Computer-Aided Engineering. The use of computer simulations to resolve issues faced by technical departments.

Initiatives for New Product Development

Vibration Control: New EV and Automation Compatible Services Using DX

Introduction

Strategy

In Europe, China, and the ASEAN region, the demand for EVs and new energy vehicles is growing, spurred on by governmental policies.

• Kayaba offers products such as electric power steer- ing and transmissions as well as CVT vane pumps that low fuel consumption needs for automobiles.
  Furthermore, we are using the electronic control and electrification technologies we have fostered to

High Safety and Comfort Required by Mobility Shift

develop low energy consumption electric pumps that output only the required pressure and output as well as highly efficient electric pumps for e-Axle.

• e-Axleposes gear lubrication and motor/inverter cooling challenges. We believe that, through the devel- opment of electric pumps that respond to these issues, we can contribute to the reduction of electricity and fuel consumption in an EV-base society.

Reducing Electricity and Fuel Consumption

Data

Electronic

control

Sens Think Act

Active Suspension System

Pursuing safety and comfort in the automatic operation and EV era with the advanced integration of our core technology and electronic control systems

Next Generation Hybrid

Suspension System

Electric Pump

•Providing electric pumps for lubrication/cooling for electric

•Pursuit of safe function / ultimate at ride

•Next generation vehicle height adjustment + suspension systemデジタル技術

•Improve aerodynamic performance

•Reduce electric power / fuel consumption

•Improve vertical movement

製品開発

vehicle equipment

•Highly efcient pump/motor control technology •Proposals for oil pressure / hydraulic system maintenance

Power Control: Industrial Machinery -Electronic Control and Hydraulic Systems

Kayaba's strength lies in that we are the only manufacturer

Remote control, automatic operation, and increased efciency of construction machinery

with a full lineup of hydraulic products for construction machinery-valves, pumps, motors, and cylinders-in addition to handling electronic control systems.

Electronic

control

Sens Think Act

ECU +

Hydraulic equipment

Information System

Intellectual Property Strategy

In the Kayaba Group, our R&D departments and intellectual property departments collaborate to actively generate intellectual property and conduct the appropriate protection and usage thereof. These intellectual property initiatives create growth for our business and increase our corporate value.

• R&D departments and intellectual property departments regularly hold an Intellectual Property Strategy Meeting, in which they discuss R&D themes from an intellectual property perspective. In these meetings, the participants think of every single invention from the results of the R&D themes and attach them to patent applications. Through this procedure, we actively apply for patents, obtain rights, and protect our original products and technologies.
• As a result of these initiatives, we hold the highest number of patents worldwide that are related to protect- ing our major products of shock absorbers and hydraulic cylinders.
• In recent years, we have been obtaining patents by strategically generating inventions based on our technolo- gy strategies and product concepts. Also, we work to inventory the patent rights we own and to apply for patents in carefully selected overseas countries. We obtain and manage patents necessary to protecting the

global competitive edge of our business.

• Furthermore, we are working on a new initiative for using information on intellectual property in research and development. In order to create the technology of the future, we analyze and understand technology trends and the position of Kayaba and the competition using intellec- tual property information from the early stages of R&D, pinpoint the strategy for each technology, and incorporate that into our R&D. Also, we use IP landscaping* to formu- late our technology strategy, and for the purpose of building a patent portfolio for our core technology, we have been testing cooperative IP landscaping that links the engineering departments and intellectual property depart- ments of each business unit since 2021.
• In initiatives to protect our corporate and product brands, we are responding with formal legal objections to counterfeit trademark applications, particularly in China, and exercising our trademark rights against counterfeit products such as shock absorbers. In these ways, we are endeavoring to maintain and increase the value of our corporate brand.

*IP landscaping: To create proposals for strategies that contribute to intellectual property management by analyzing intellectual property information.

Ratio of Domestic and Overseas Patents Retained (As of March 31, 2022)

Number of Related Patents Retained

(As of May 12, 2022, based on our own research)

Products Built with the Environment in Mind

We believe that conducting environmentally friendly manufacturing activities is essential, and promote R&D that incorporates environmental considerations up to the manufacture of a product. Centering on the Environmental Regulation Response Group established in FY2020, we are responding to the REACH Regulations* as well as sharing and seeking out information from all countries related to social environmental regulations, such as the elimination of Pb.

Recycling greenery

Shredded wood chips

PrunedTree Shredder Truck

1. Substantially improving the efficiency of pruning labor and transport related to roadside trees
2. Effectively using wood chips for biomass power generation, soil improve- ment additives, mulching material, and more (applications for wood chips)

Introduction

• REACH Regulations： REACH stands for Registration, Evaluation, Authorisation and Restriction of Chemicals. It is an EU law intended to protect human health and the environment while fostering competitiveness within the European chemical industry.

Strategy

Innovative Manufacturing for the Next Generation

We have worked to evolve the sites of Kayaba's manufacturing craftsmanship starting from conveyer belt manufacturing in the post-WWII period, responding to widely changing social conditions and flexibly moving from mass production to high-mix low volume production.

• Kayaba is still looking toward the next generation. We have started work on Ship'30, an initiative that will further evolve manufacturing sites. The Ship'30 initiative is aimed at the breakthrough achievement of constructing an un- manned plant by 2030-an innovative plant that will be fully

self-sufficient with a foundation of digital technology.

• The initiative focuses on two major aspects of innovation: production process and equipment management. It will make possible an innovative manufacturing method with a compact production line that perfectly synchronizes process- ing and assembly. We are aiming to create a plant that ultimately will not rely on humans at all, and that minimizes transport, inventory, and work at the manufacturing site with innovative equipment management using the latest technolo- gy yet retaining the basics of equipment maintenance.

• In production process innovation, automated guided vehicles (AGV), robots, and imaging examination are incor- porated into processing to create a highly efficient production line, allowing for unmanned operation and reduced inventory.
• In innovative equipment management, we will set up a system that conducts real time centralized management of all kinds of data from equipment in operation while predict- ing the occurrence of an abnormality before it happens using AI. And we will completely prevent issues, providing training for and implementing next-generation total produc- tive management (TPM; an approach that engages all employees in production maintenance and production management) that is fitted to upgraded equipment groups.
• Through the Ship'30 initiative, we are building a worksite where processes run flawlessly on highly efficient produc- tion lines (through production process innovation) with high reliability (through cutting-edge equipment management), and aiming to bring our unmanned plant into operation globally in 2030.

Data

Next-generation Innovation Plant (Concept)

Self handling innovation plant 2030

Pursuit and evolution of a Kayaba production system with a core of digital technology

Back to the

Eliminating inefficient transport

Eliminating inefficient inventory

starting point

Eliminating inefficient operations

Analog, manual, and experience → Digital, automation, and AI analysis

Sustainability Promotion System

The promotion of ESG management is essential for a globally operating corporation to continue achieving sustainable growth. The standard for management is to not simply pursue profits, but to also contribute to society.

• At Kayaba, we are also seeking to strengthen our promotion of initiatives for ESG related to a sustainable society. To that end, we established the Sustainability Committee, an organization that oversees the entire Group, in March 2022. The President serves as the Committee Chair, and it is composed of the executives in charge of ESG promotion, the general managers of production, engineering, sales, accounting, safety, purchasing, and others as well as the general manag- ers of all business units. Through debating issues related to sustainability such as policies and manage- ment/measures for progress toward achieving targets, we are aiming to make the Kayaba group a corporate entity that contributes to society.

Board of Directors /

Board of Executive Ofcers