Restoring Trust and Building a Resilient Corporate Structure in KYB’s First Year of Renewal

「We have designated the next 10 years as the “Decade of Growth,” and, building on our initiatives to date, will clearly present the vision of the “New Kayaba.” …We recognize that achieving steady growth and increasing corporate value are important challenges.」

「We have worked to fulfill our corporate social responsibility by contributing to society while meeting stakeholder expectations through sustainable growth and increased corporate value, and by strengthening corporate governance. …Conformity of oil dampers for seismic isolation and vibration control had progressed to approximately 99% by the end of fiscal 2023. We will continue working toward completion of the conformity process.」

「The Company completed an absorption-type merger effective 1 April 2023, under which the Company was the surviving company and its wholly owned subsidiary ＫＹＢ－ＹＳ株式会社, which operated the Automotive Components and Hydraulic Components businesses, was the absorbed company.」

「By merging YS, a subsidiary that manufactures and sells hydraulic equipment, we will improve sales profitability and strengthen our financial base. At the same time, the merger will promote more efficient management, including the effective use of the management resources held by both companies, and strengthen group governance through closer coordination with head-office functions.」

「Fiscal 2022 will be the final year of the current medium-term management plan. To prevent recurrence of improper conduct involving oil dampers for seismic isolation and vibration control and other matters, and to reform our corporate culture, we are transforming the Company into a highly profitable business while making awareness of standards and compliance the foundation of management, under the slogan “Regain Trust and Pride.”」

「By merging ES, a subsidiary that sells hydraulic equipment, we will strengthen our sales capabilities, improve profitability and reinforce our financial base. At the same time, through the merger we will seek to revitalize personnel rotation and strengthen the Group's governance framework.」

「During the second quarter of the current fiscal year, Kayaba System Machinery Co., Ltd., formerly a consolidated subsidiary of the Company, ceased to exist as a result of an absorption-type merger in which the Company was the surviving company, and was therefore excluded from the scope of consolidation.」

「Following improper conduct in the inspection processes and other operations involving oil dampers for seismic isolation and vibration control by the Company and its subsidiary KSM, the Company is promoting a “Group reorganization with a view to compliance-based management” as a recurrence-prevention measure. It is working to eliminate the entrenchment of personnel identified as a cause of the improper conduct and deficiencies in group governance.」

「We will make fiscal 2021 a year for catching up on delays to the medium-term plan caused by the COVID-19 pandemic. Although there is still no clear prospect of the COVID-19 pandemic coming under control and the outlook for the global economy remains uncertain, the Group will work as one to complete the medium-term plan and regain your trust as soon as possible.」

「We have designated fiscal 2019 as the “First Year of KYB's Rehabilitation” and will promptly and vigorously implement the following measures, based on preventing recurrence and ensuring compliance, in an effort to restore trust. While steadily implementing these priority measures to restore trust, the KYB Group will also work to transform itself into a leaner and more resilient company.」