YUASA TRADING CO., LTD.

YUASAINTEGRATEDREPORTYUASA INTEGRATED REPORT

2023

Service Integrated Shosha Group01

つながる。ひろがる。響き合う。
Connect

SpreadResonate

The YUASA TRADING Group is taking on the challenge of solving social issues
by connecting (TSUNAGU) various things and experiences.

Under the Medium-term Management Plan “Growing Together 2026” which started in

April 2023, we aim to be a corporate Group where TSUNAGU innovation is normalized.
We have created a new slogan and icon to convey this with all of our stakeholders.

The “connections” that the Group cherishes will be “spread” across all stakeholders,
and those feelings will “resonate” and bring about the future.
This is the intention we hope to portray.

02

For
the Publicationof the Integrated
Report

The purpose of this Integrated Report is to convey to all stakeholders, including shareholders andinvestors, how to increase corporate value in the future while leveraging the unique strengths of the
YUASA TRADING Group, with a story in an easy-to-understand manner.
Integrated Report 2023 focuses on the vision we aim to achieve in our Medium-termManagement Plan, “Growing Together 2026,” which started in April 2023, and conveys the mediumto long-term growth story of the Group in terms of both financial and non-financial information.
Going forward, in order to strengthen our communication, we will continue to disclose information
as an indispensable and important tool for dialog with stakeholders.

Published in November 2023

Haruo Sanoki

Representative Director, Senior Managing Director
Supervisory Manager of Management Administration▎Contents

Starting Point for Creation of New Value・ ・・・・・・・ P.03
Corporate Philosophy and Our History・・・・・・・・・・・・・・・ P.03
Message from the President・ ・・・・・・・・・・・・・・・・・・・・・ P.05
Value Creation Process・ ・・・・・・・・・・・・・・・・・・・・・・・・ P.09

Strategies to Maximize Value Creation・・・・・・・・・・・・・ P.10
Long-term Vision and Medium-term Management Plan・ ・・ P.10
Business Transformation・ ・・・・・・・・・・・・・・・・・・・・・・・ P.15
Interview with Outside Directors・ ・・・・・・・・・・・・・・・・・・ P.19
Message from the Supervisory Manager ofManagement Administration・ ・・・・・・・・・・・・・・・・・・・・ P.21
Promoting Sustainability Management・ ・・・・・・・・・・・・・ P.23
Business Strategy for Realizing
Business Transformation ・ ・・・・・・・・・・・・・・・・・・・・・ P.24
Core Businesses・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.24
Growth Strategy・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.31
Value Creation Foundation・ ・・・・・・・・・・・・・・・・・・・・ P.40
DX Promotion・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.40
Environment・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.41
Society・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.44
List of Officers・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.49
Corporate Governance・・・・・・・・・・・・・・・・・・・・・・・・・・ P.51
Data・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.59

▎Reference Guidelines

・IFRS Foundation “Integrated Reporting Framework” and “SASB
Standards”

・Ministry of Economy, Trade and Industry “Guidance for Collaborative
Value Creation 2.0”
・Task Force on Climate-Related Financial Disclosures (TCFD)・Global Reporting Initiative (GRI) “Sustainability Reporting Standards”▎Positioning of Integrated Report 2023

Integration of financial andnon-financial information
YUASA TRADING CO., LTD.

YUASAINTEGRATEDREPORT

Financialinformation

YUASA INTEGRATED REPORT

2023

Service Integrated Shosha GroupNon-financial
information

YUASA REPORT (business report)

Summary of Consolidated Financial
Results
Fact Book

Company Profile

Corporate Governance Report
ESG Data

YUASA TRADING Website
https://www.yuasa.co.jp/en/▎Scope of Items Reported

In principle, the results include YUASA TRADING and 35 Group
companies (30 of which are consolidated subsidiaries) as ofMarch 31, 2023 (April 1, 2022 – March 31, 2023).
* Some organizational structures and measures include information for FY2023.

* The amounts and ratios shown in this Integrated Report differ from the figures shown in previous
reports due to changes in the rounding method.

▎Precautions on Forward-looking Statements
In the statements of this Integrated Report, statements other thanhistorical facts are forward-looking statements that reflect the
YUASA TRADING Group’s plans and expectations. Please note that
actual results and performance may vary from these statements
as a result of various risks, uncertainties and other factors.

03

YUASA INTEGRATED REPORT 2023

Starting Point for Creation of New Value

Corporate Philosophy and Our History
Our journey from our founding to our expansion of sales bases

Corporate Philosophy
Honesty and
TrustEnterprise andInnovation

Regard forthe Individual

Corporate Philosophy
https://www.yuasa.co.jp/en/corporate/philosophy/

1666
FoundedShokuro Yuasa, our founder,
launched a charcoal trading business
in Kyoto

1919
Established

After developing business bases (Tokyo,
Osaka, and Kyoto prefectures), a factory(Yuasa Iron Works) and expanding
overseas (Wuhan in China), establishedYuasa Shichizaemon Shoten in 1919 andproceeded to modernize

1674

Expanded to Edo(Tokyo)Opened an Edo outlet in
Hongoku-cho, Nihonbashi
after years of hardshippeddling wares from Kyoto

1972

1961

Steps to open multiple
outlets

Established sales base inJapan

Established branch in Nagoya, starting
steps to open multiple outlets, in addition
to full-scale expansion overseas withestablishment of representative offices in
Canada and the United States

Opened Naha sales office in Okinawa
Prefecture, completing a domestic network
extending from Hokkaido to Okinawa.
New company building in Odenma-cho,
Nihonbashi in Tokyo completed in 1975

Yuasa Iron Works (Sakai in Osaka Prefecture)established in 1909 to produce Western
hardware in Japan

Shokuro Yuasa,
our founderFormer head office building in Odenma-cho, Nihonbashi (until 2014)

Origins of innovation:
switch from charcoal trading to wholesale of metal
implements five years after founding

Premises of a Sumiya (a charcoal dealer), from which
YUASA TRADING evolved, located in what was formerly
the Toriabura-cho neighborhood of the Nihonbashi
district of Edo (Tokyo), which is now the Odenma-cho
neighborhood of Nihonbashi, and is where YUASATRADING’s head office used to be located.

Shokuro Yuasa, our founder, launched a charcoal trading business dealing
with swordsmiths in Kyoto. When the Sengoku Period (an era of civil war
in Japan) ended and Kyoto thrived as a city of commerce, Shokuro Yuasa
spotted the potential for metal implements such as scissors and knives, andswitched from charcoal trading to being a wholesaler of metal implements in
1671, just five years after founding his business.
Our founder’s decision to look to the future was YUASA TRADING’s firstinnovation and forms the foundation for the transformation that continues today.

Former head office site lasted for 288 years

The site of YUASA TRADING’s former head office in
Odenma-cho, Nihonbashi had been owned since thethird generation of the family in 1726. Despite being
destroyed several times in the great fires of Edo, thebusiness quickly recovered due to the immense trustand support of its business partners. In the Great Kanto
Earthquake of September 1, 1923, the company building
and the warehouse were completely destroyed by fire, but
a temporary store was completed on September 24 withthe assistance of business partners, which is said to havemade a strong impression on the victims of the disaster.

04

YUASA INTEGRATED REPORT 2023

Starting Point for Creation of New Value

Corporate Philosophy and Our History

2023

2026

Current Status of
YUASA TRADING GroupFY2022 Results
Net sales

Ordinary
profitROE

Total
payoutratio

15.382 billion

10.8 ％(includes share buybacks)

31 sites 23 sites in 10 countries
23 companies
12 companies
Overseas

Group companies in Japan

Group companies overseas

20 billion
11.8％
At least 33.0％

¥

¥

67.0％

600 billion¥[¥504.806 billion]▎YUASA TRADING Group Network (as of March 31, 2023)
Domestic

YUASA VISION 360 (Long-term Vision)
FY2025 Plan

523.875 billion¥(360th anniversary of the company’s founding)▎Share of Total Sales

Held by Each
Segment[¥576 billion]

Other

4.7％

Energy Division

3.8％

Construction
Machines Division

7.2％

Building Supplies &Exterior Division

10.2％

Net sales*

504.806 billion¥(FY2022)*After revenue recognition* Net sales figures in brackets are after
revenue recognition.

Industrial Equipment &Tools Division

15.3％

Machine Tools Division

23.5％

Housing, Air & Fluidic
Control Systems Division

35.3％

05

YUASA INTEGRATED REPORT 2023

Starting Point for Creation of New Value

Message from the President
Completing YUASA VISION 360,
Which Has Our Corporate
Philosophies as the Starting Point

Hiroyuki Tamura

Representative Director,
President & CEO▎

The Three Corporate Philosophies That
Connect
Our History to the Future

The YUASA TRADING Group has implemented three-year,
Medium-term Management Plans since 2017. These plans,
entitled Growing Together, are part of our long-term vision,
YUASA VISION 360 that extends to 2026, the 360th anniversaryof our founding. The third Medium-term Management Plan,
Growing Together 2026, was launched in 2023 and represents
the harvesting (reaping) stage of YUASA VISION 360.
Discussion for this third Medium-term Management
Plan began with the idea of putting our three long-standing
corporate philosophies of Honesty and Trust, Enterpriseand Innovation, and Regard for the Individual at the centerof the plan. Looking at all three mid-term management
plans together and sorting out the Group’s strengths andchallenges, the more I think about it, the more I am convincedthat these three philosophies must remain as they are.
Through the Honesty and Trust that we have cultivatedover the years, the Group has built a strong integrated
network of some 6,000 major suppliers and 20,000 major
sales partners. In addition, the philosophy of Enterpriseand Innovation is necessary for the promotion of TSUNAGU
innovation, which is the basis of our latest Medium-termManagement Plan (see the figure on the right). Previously,
we took product out or market in approaches, with the
manufacturing side playing the leading role, but the Groupis now promoting a business transformation to a market out
approach, in which the market serves in the leading role.
To achieve this transformation, it is essential that we beenterprising in catching wind of what consumers and society
need as soon as possible and be innovative in developing
products and services in cooperation with manufacturers
based on that information.
Regard for the Individual must also be a pillar for ourGroup.
Recent changes in the social environment havediversified means of communication, with telecommuting
and online conferencing becoming prevalent. We believethat strong human ties and networks are the source ofour competitiveness. While flexibly employing the latest
technologies, we intend to develop our business by placing
importance on face-to-face communication with our business
partners. I believe that communication connecting people
and thoughts eventually leads to respect for the individualand contributes to enhanced customer satisfaction andemployee prosperity.
These three core philosophies have shaped our history
to date and represent the Group’s strengths, and I havereaffirmed my determination that it is my responsibility topass them into the future.
■TSUNAGU Innovation Model

P.16

YUASA TRADING Group Markets

Manufacturing

Home building

Social issues
PeopleEnvironmentbuilding

Town building

Solutions
Information

Goods

Data

Money

Technology

By connecting (TSUNAGU) various things such as people, goods, money,
information, data, and technology, solve social issues and expand both “single
item business” and “integrated product-service”●●Establish a business model with a market out approach

06

YUASA INTEGRATED REPORT 2023

Starting Point for Creation of New Value

Message from the President▎Recap of Growing Together 2023

Facing Challenges and Aiming for Further Growth
For the previous Medium-term Management Plan, Growing
Together 2023, targets of ¥545.0 billion* for consolidated
net sales and ¥16.4 billion for consolidated ordinary profit
were set, but these targets were revised downward to ¥510.0
billion* and ¥14.5 billion due to the COVID-19 pandemic.
Although both net sales and net profit exceeded the revised
targets for FY2022 (April 1, 2022-March 31, 2023), they fell
short of the original targets for net sales, ordinary profit, andgrowth investments.
In terms of growth strategies, the Eco & Energy Solution
Business (currently Green Business) showed particular
growth. In recent years, carbon neutrality has become amajor theme globally; our Group was an early pioneer intackling this issue and has implemented carbon neutrality
into our various business models. In Japan, we are alreadyachieving significant results with a carbon-neutral proposal
using our original energy visualization system (YES-net) and acomposite proposal that encompasses solar power generation,
storage batteries, and Vehicle-to-Home (V2H). P.35 In overseas,
we have held seminars on carbon neutrality under the Joint
Crediting Mechanism (JCM), a bilateral carbon credit system
for reducing greenhouse gases in developing countries. Theseseminars were held in Thailand, Vietnam, Indonesia, thePhilippines, Mexico, and Malaysia, to great success. We intend
to continue to actively expand our domestically cultivatedexpertise in environmental solutions to overseas markets.
Our Robot (AI) & IoT Business (currently Digital Business)is performing well. The population decline in Japan due
to an aged population with fewer children is expected tocause ongoing labor shortages in various industries suchas the upcoming 2024 truck driver shortage for the logistics
industry. In the industrial field, the Group is developing

automation and labor-saving businesses that utilize AI, IoT,
and other technologies. In the future, we intend to takethese automation and labor-saving solutions from the
manufacturing field and expand and deploy them in theareas of home building and town building.
On the other hand, our biggest challenge is our Overseas
Business. As I will explain in more detail later, I believethat our Overseas Business has great growth potential
depending on how we think about turning challenges intostrengths. We would like to expand our Overseas Business bydemonstrating our total coordination skills similar to thoseof our businesses in Japan, instead of developing specificdivisions as we have done in the past.

usiness Transformation in Growing Together▎B2026
Initiatives to Enhance Profitability and Growth
Potential
For Growing Together 2026, we are promoting the TSUNAGU
innovation model to solve social issues by connecting
people, goods, money, information, data, and technology,
expanding the Group’s strengths into growth markets underthe business banners of Overseas, Green, and Digital. The
quantitative targets for FY2025 are consolidated net sales of¥600 billion* and consolidated ordinary profit of ¥20 billion.
To achieve these targets, we are engaged in a business
transformation, are developing our existing business partner
network, and are expanding our business domains both
domestically and internationally.
Two major pillars of the Group’s business transformation
efforts are improving profitability and growth.
For profitability, we are developing new products withnew and novel products through TSUNAGU innovation tosolve social issues faced by our business partners as well as

increase the Group’s profitability. We have introduced morethan 20 TSUNAGU solutions to the world since the previous
Medium-term Management Plan. We were able to achieve
this because of the Growing Strategy Division, which wasestablished in April 2020 to promote growth businesses
across sales divisions. The Group’s strength of leveraging
total coordination skills has led to the creation of new, novel
value-added solutions. Some of these solutions are patentpending, which is unusual for a trading company.
With respect to how to accelerate this, I believe thatthe ideal situation is for our Group’s sales representatives
to take the lead in identifying market trends and work
together with the Growing Strategy Division to create
TSUNAGU innovations. Such efforts have been gradually
coming to fruition since the second half of the previous
Medium-term Management Plan, and we hope to add many
examples into the future. We have also changed our thinking
about recruiting. In the past, we hired mostly experienced
salespeople, but we are now hiring people with different
kinds of occupational backgrounds to join us. Because theneeds of the market are diversifying, so is the content of ourwork. We would therefore like to have people with a varietyof backgrounds join our company to share their wisdom andpromote TSUNAGU innovation by absorbing new needs from

*Before revenue recognition

07

YUASA INTEGRATED REPORT 2023

Starting Point for Creation of New Value

Message from the President

the frontlines.
Next, with regard to growth potential, we will promotenine growth strategies by dividing them into three segments
to be promoted across the company and six target markets
and challenge areas to be promoted by specific businessareas/organizations (see figure on the right). P.17, 31
The original growth strategies were promoted by all
divisions in order to gather a wide range of information andexplore business opportunities. Because a certain levelof information was gathered in the first two Medium-termManagement Plans, Growing Together 2020 and Growing
Together 2023, the three years of the final Medium-termManagement Plan, Growing Together 2026, have been
divided into two categories, areas to focus on across theentire company (the same as in the past) and leadingorganizations or areas that will spearhead business efforts.

■Growth Strategy Specifics

P.31

Core Businesses

Strategies for expanding our core businesses
Overseas

Green (Eco & Energy Solution)
Digital (Robot [AI] & IoT)

Businesses
promoted bywhole company

Resilience & Security
New Distribution
SharingLong-term Care & Medical
Food Equipment

Target markets
and challengeareas promoted
on an area ororganizational
basis

Agriculture Process

New Businesses

Aiming for new growth by leveraging our strengths

Our growth strategy is to expand our core businesses
but also to spin new products and services cultivated in ourcore businesses into new markets. In FY2025, we plan toachieve significant growth, with total sales of ¥286 billion, or
approximately 48% of total sales, coming from our growthstrategies.

Development of Interactive and Cross-Industry
Platforms
In terms of market development, we will develop new andgrowing markets created through TSUNAGU innovation using
an interactive and cross-industry platform. This will be done
both domestically and internationally.
Specifically, having understood market needs, we willcommunicate those needs to our suppliers and work withthem to plan and develop products and services, and provide
them to the market (interactive platform).
When it is difficult for a single supplier to create a producton its own, we will create new added value by connecting
the technologies and skills of different suppliers in different
industries (cross-industry platform) and supply it to our sales
partners. Organic linking of these technologies will support
the invigoration of our Group network and help expand ourbusiness both domestically and internationally. P.18
To date, some of the Group’s overseas offices havecarried on their operation within the business scope of thespecific divisions. For example, if the Machine Tools Division
has offices in Thailand or Indonesia, these offices would
only sell machine tools. Looking to the future, we will locate
multiple divisions in our local subsidiary in Thailand todemonstrate our total coordination skills there as a “miniYUASA.” Furthermore, we will expand such efforts horizontallyto other countries such as India.
Our overseas markets have great potential, but at thesame time, we face fierce competition from foreign-affiliatedand locally capitalized companies. I hope that our young
employees in particular will be aware of this situation andchoose to step in and boldly take on the challenge.

08

YUASA INTEGRATED REPORT 2023

Starting Point for Creation of New Value

Message from the President▎

Three Measures to Support Our BusinessTransformation

Foster a Corporate Culture in Which TSUNAGU
Innovation Has Become the Norm

Growing Together 2026 sets out three pillars that will support
our business transformation: Corporate Culture Reform, DX
Promotion, and Sustainability Promotion.
Management, including myself, in this rapidlychanging world feel a strong sense of urgency about how
we can connect the history of the company to the future.
Conversely, certain parts of the company are reluctant toaccept change because of previous successes—I believe thismust be changed. I have therefore positioned Corporate
Culture Reform first and foremost in the new Medium-termManagement Plan.
■Overall Picture of Corporate Culture Reform
Accelerate business transformation
Create a culture that normalizes
TSUNAGU innovation
Increase employee
engagement
Increase employee
work satisfaction
・Talent cultivation
・Reform of various
personnel systems

Increase employee
ease of work
・Diversity
・Workstyle reform

Develop an environment that can maximize
TSUNAGU innovation

Governance, compliance, and risk management(the base of corporate culture)

P.44

As a concrete measure toward reforming corporate
culture, we have been holding roundtable meetings around
Japan with employees to ensure they all clearly understandthe new Medium-term Management Plan. At these meetings,
I personally explain how the company is changing and why itmust do so.
Another measure is YUASA PRIDE, a project for personnel
reforms from March 2023 in which all employees are
participating. We have also decided to construct a newheadquarters as a measure to create an environmentthat facilitates changes under the banner keywords of“Total Coordination Skills,” “Challenging Spirit,” and“Communication.” By bringing together all the Group
companies scattered throughout the Tokyo metropolitan
area into one location, we intend to further enhance our total
coordination skills by stimulating communication among
Group employees.

Strengthening Our Management Foundations
through the Promotion of DX and Sustainability

In terms of promoting digital transformation (DX), we arebuilding a data utilization infrastructure to address the issue ofdata siloing that has been present within the Group. In order
for all employees to understand the importance of building
data and the critical importance of that data to the Groupin the future, we will conduct DX training for all employees,
including myself and other management-level staff.

For the promotion of sustainability, we have poured all ofour beliefs into our October 2021 Sustainability Declaration.
We are also working on action plans according to themateriality (key issues) in each of our businesses. In terms ofdiversity promotion, a female Outside Audit & Supervisory
Board member was appointed in June 2023, bringing thenumber of female directors to two. We also intend to improve
corporate governance by utilizing diverse perspectives,
including those of corporate executives and those withmanagement experience.

▎To Our Stakeholders

Maximizing Corporate ValueThe Group has positioned the stable return of profits toshareholders as one of its most important management
policies, and we are continuing to aim for a total payout
ratio of 33% or higher. In FY2022, the total payout ratio toshareholders return was a high, at 67.0%, partly due to abuyback of treasury shares. Moreover, from FY2023, we haveset a dividend on equity (DOE) of at least 3.5% as a new
indicator.
We will continue to maximize corporate value by
proactively disclosing information and conducting IR activities
to further improve our stock price, as well as aggressively
invest in our growth strategy, DX, and other business areas. We
look forward to your continued support.

09

YUASA INTEGRATED REPORT 2023

Starting Point for Creation of New Value

Value Creation Process

We are aiming to improve corporate value both in terms of economic (financial) value and social and environmental value through TSUNAGU innovation.

Starting Point for
Creation of New Value

Corporate Philosophy
Honesty and
TrustEnterprise andInnovation

Business Model

Business model with a market out approach

Solve social issues in the market through TSUNAGU innovation
P.16< Markets >< Our Business Segments >YUASA TRADING Group’s
Competitiveness and
its Resources
Sound financial foundations
and aggressive investment ingrowth areas

P.21

The biggest network of its kindin the industry

P.18

A corporate culture thatencourages employees to takeon challenges

Core Businesses P.25-30

Machine
Tools
Division

Industrial
Equipment& Tools
Division

Construction
Machines
Division

Housing,
Air & Fluidic
Control
Systems
Division

Building
Supplies& Exterior
DivisionHome
building

Townbuilding

Environmentbuilding

Platforms for unleashing TSUNAGU innovation
P.18

P.44

Value Creation Foundation

Total coordination skills of theGroup as a whole

P.16

Manufacturing

Energy,Consumer
Products& TimberDivision

DX Promotion
P.40

Sustainability Promotion

Harmony with
the Global
Environment

Business Activities
for Service with
Good Products

P.23

Managementthat Respects
HumanityStrengthen
Governance
P.51

Contributing to a Sustainable Society andMaximizing Corporate Value

Regard for the
Individual

ImprovingSocial Value

Creating Prosperous,

Humanitarian Societies

Improving
Environmental
Value
Reducing

Environmental Impact

Improving
Economic(Financial) Value

Economic Development

10

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation
Long-term Vision and Medium-term Management Plan

Positioning of Long-term Vision andMedium-term Management Plan

Improve Corporate Value

Maximize economic value (financial value)and social/environmental value(non-financial value)

Realize Corporate Transformation

The YUASA TRADING is celebrating its 360th anniversary in 2026, and in 2017, the Group established theCreate a corporate group where
TSUNAGU innovation is the norm

YUASA VISION 360, and summarized our efforts to enhance corporate value and achieve a corporatetransformation in our three-year medium-term management plan, “Growing Together.” Growing Together
2026, which began in April 2023, represents the harvest stage for the achievement of YUASA VISION 360.
By promoting business models that aim to resolve social issues in manufacturing, home building,environment building, and town building, and becoming a company in which TSUNAGU innovation isHarvestnormalized, we aim to improve corporate value both in terms of social and environmental value.

2023

Cultivation

Growing Together 2023

2020

Foundation building

Growing Together 2020

< Core Measures >Build a sustainable management foundation based on“Total Coordination Skills,” “Challenging Spirit” and“Communication”(April 2017 - March 2020)

Corporate culture reform to discover growth areas andexercise total coordination skills< Core Measures Implemented >● Strengthened sales to local companies in overseas business●Concluded capital and business alliance with connectome.design inc. (AI consultant)●Strengthened interdepartmental cooperation by implementing a regional block

system●Fostered a corporate culture of challenge (implemented internal FA system,
internal recruitment system, and challenging project system)

3rd Stage(April 2023 - March 2026 )Aim to improve corporate value by proposing businesses(April 2020 - March 2023)< Core Measures Implemented >● Rolled out TSUNAGU solutions to solve social issues●Launched full-scale operation of carbon-neutrality promotion business inenvironmental area

● Business transformation

P.15- Improving profitability through TSUNAGU innovation- Developing our strengths in growing markets- Developing our business partner network● Strengthening management foundations

P.21- Corporate culture reform, DX promotion, Sustainability promotion- Strengthening Group Governance●Established cross-departmental organization (Growing Strategy Division) todemonstrate total coordination skills●Launched project for promotion of DX●Started initiatives for announcing and realizing Sustainability Declaration

2021

From October 2021

▼

2017

1st Stage

2nd Stage

Growing Together 2026

Sustainability Declaration

YUASA VISION 360 Where the Group should be in March 2026

P.23

Corporate Philosophy Honesty and Trust, Enterprise and Innovation, and Regard for the Individual

11

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Long-term Vision and Medium-term Management Plan

Review of the Medium-term Management Plan
▎Growing Together 2023 Summary■ 2nd Stage

Growing Together 2023
[Net sales]

450.0 432.1

����年�月期
FY2020[Ordinary profit]

10.0 10.0■FY2022����年�月期
FY2020471.0 462.7

����年�月期
FY2021Plan

����年�月期
FY2022Plan

12.5 11.7

����年�月期
FY2021Results

490.0 504.8 (billions of yen)

Results

14.5 15.3 (billions of yen)����年�月期
FY2022Growth strategy*1
Approx. 25%¥127.4 billion
Net sales

Core businesses¥15.3 billion

New businesses¥523.8 billion*2【¥504.8 billion】
Ordinary profit*1 The breakdown inside the graph corresponds to the color coding of the growth strategies on P.12.
*2 Net sales figures in brackets are after revenue recognition.

Main Initiatives
In Growing Together 2023, the second stage of YUASA VISION 360, we aim to evolve into a “TSUNAGU” Service
Integrated Shosha Group with a basic policy of strengthening our growth strategy, core business strategy, andmanagement foundation. Specifically, we regard the resolution of social issues as a growth business, and focus on
the development and commercialization of new products and services in collaboration with our own companies andother companies, and have put forward various plans for climate change measures, automation, labor saving, andthe like. Based on our Sustainability Declaration, we are promoting carbon neutrality for the entire Group and also
stepping up efforts to help build a sustainable society such as our domestic forest maintenance activities in Japan,
which have been certified under the J-Credit Scheme.
Results
Net sales for FY2022 were ¥504.8 billion, an increase of approximately 9% over the previous year. Operating income,ordinary profit, and net income all increased, marking FY2022 as a record high. From April 2020 to March 2023,
business activities overseas were largely restricted due to the impact of COVID-19. The percentage of growth strategy
fields increased to around 25%, contributing to the expansion of business performance.
Ongoing Topics
The final stage of the YUASA VISION 360 is the Growing Together 2026 Medium-term Management Plan, which
continues to address the following matters.
■ Improving the profitability of existing businesses■ Further promoting growth strategies■ Identifying things that should be changed and things that should not be changed, and implement measuresaccordingly■ Strengthening Group-wide initiatives for “Total Coordination Skills,” “Challenging Spirit” and “Communication”■ Building a system that can accumulate and utilize data for strategic planning and developing DX talent■ Promoting sustainability management

12

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Long-term Vision and Medium-term Management Plan

Review of the Medium-term Management Plan

▎Overview of Growth Strategy

The overall growth strategy set out in the plan was not achieved, but growth of about 20% for FY2019 was achieved, serving as a driver of growth for the
performance of the entire Group.
Growth Strategy

Overseas Business
Eco & Energy Solution
Business(currently Green Business)

FY2019 Results

FY2022 Plan

FY2022 Results

Growth from
FY2019

36.4

74.0

29.8

-18.1%

Summary

Sales and investment activities were restricted due to impact of COVID-19
Launched new business expansion with focus on making Thailand local subsidiary an
integrated entity●●Carbon-neutrality proposals through use of YES-net
Promoted sales that combined solar power generation, storage batteries, and V2H● Promoted JCM (Joint Crediting Mechanism) proposals
●

21.9

28.0

34.0

+55.3％

Robot (AI) & IoT Business(currently Digital Business)

6.5

17.0

11.7

+80.0%

Resilience & Security
Business

20.8

33.0

21.5

+3.4%

●

New Distribution Business

12.7

19.0

17.7

+39.4%●Long-term Care & Medical
Business

5.2

8.0

5.8

+11.5%

Food Equipment Business

-

8.0

2.9

-

Agriculture Process Business

1.9

5.0

2.1

+10.5%

Sharing Business
Growth Strategy—Total

-

5.0

1.9

-

105.4

197.0

127.4

+20.9％(All amounts are units of billion yen)●Promoted AI solutions with connectome.design inc.
Developed original robot products such as “Robo Combo” robot system●●Promoted development of TSUNAGU solution products (e.g., aluminum privacy fence
YACHIBEI®, bollard with flooding sensor “KIZUKI MIRAI”)
Expanded e-commerce transactions on Growing Navi site
Enhanced products posted on Growing Navi site●Promoted proposals for measures to combat infectious disease targeting long-termcare and medical facilities● Rolled out remote pre-fabricated ICU wards for developing countries●Concentrated efforts on original products through FOOMA (Food Processing
Technology EXPO), etc., but fell short of plan
● Original product development (device for detecting contaminants in beverages,
rewritable laser system, etc.)●Promoted proposals for original animal feed mixing machine (Appenki)
Promoted development of transportation system for harvesting work
● Promoted

proposals for UV-B fluorescent lamps for immuno-stimulation of crops●●

No progress in event rental business due to impact of COVID-19
Launched agricultural equipment and operator sharing business● Launched online rental business “Kariru Net”
●
●

13

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Long-term Vision and Medium-term Management Plan

Overview of Medium-term Management Plan “ Growing Together 2026 ”
Medium-term Management Plan “Growing Together 2026”▎Basic Policy

In the fields of manufacturing, home building, environment building, town building, we will work with our business partners to solve social issues through TSUNAGU innovation to create
new markets, expand domestically and internationally, to increase corporate value.

▎Priority Measures

Toward a Highly Profitable Business Model

Business
Transformation

P.16

Through TSUNAGU innovation, we will work together with our business partners to solve social issues and form highly profitable businesses.

Deployment of Growth Strategy

P.31

For the fiscal year ending March 31, 2026, we will increase the share of sales in growth strategy areas to approximately 48%.

Domestic and Overseas Market Expansion

P.18

We will expand new and growing markets created through TSUNAGU innovation by further developing our network of business partners both in Japan and overseas.

Strengthening
Management
Foundations

Corporate Culture Reform

P.44

We will foster a corporate culture that has normalized TSUNAGU innovation through the means of personnel reforms, environment building, and strengthened governance.

DX Promotion

P.40

To promote business transformation, we will build a data utilization infrastructure, develop DX talent, reform operational processes, and create innovation.

Sustainability Promotion

P.23

In line with our Sustainability Declaration, we will contribute to a sustainable society both in terms of our Group and our businesses.

Recognition of Issues

Ongoing Issues from the Previous Medium-term Management Plan

■ Improving the profitability of existing businesses■ Further promoting growth strategies■ Identifying things that should be changed and things that should not be changed, and implement measuresaccordingly■ Strengthening Group-wide initiatives for “Total Coordination Skills,” “Challenging Spirit,” and “Communication”■ Building a system that can accumulate and utilize data for strategic planning, and developing DX talent■ Promoting sustainability management

Business Transformation to a Market Out Approach■ Improving profitability by promoting TSUNAGU solution proposals that solve social issues■ Creating new markets and promoting growth strategies■ Market creation and deployment through existing trading networks■ Strengthening the management foundation, reforming the corporate culture, and promoting sustainability torealize transformation

14

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Long-term Vision and Medium-term Management Plan

Overview of Medium-term Management Plan “Growing Together 2026”▎Scale of YUASA VISION 360 and Transitioning Our Growth Strategy

For the third stage of YUASA VISION 360, we aim to achieve consolidated net sales of ¥600 billion and consolidated ordinary profit of ¥20 billion.

Growing Together 2020

Growing Together 2023

Growing Together 2026

FY2019 Results

FY2022 Results

FY2025 Plan

Growth strategy
Approx. 20%¥98.0 billion

Ordinary profit

Ordinary profit¥12.8 billion¥286.0 billion¥127.4 billion
Net sales¥523.8 billion[¥504.8 billion]

Net sales¥491.3 billion¥15.3 billion

Overview of Growth Strategy

Growth strategy
Approx. 48%

Growth strategy
Approx. 25%

CorebusinessesNewbusinesses

Overseas

Core
Businesses

Net sales¥600 billion[¥576.0 billion]¥20 billion

Item

FY2022 Results

FY2025 Plan

Operating profit

14.5

19.0

504.8

Net sales*1

Ordinary profit

Ordinary profit to net sales ratio
Adjusted net income before tax

15.3

3.0%
10.0

Return on equity (ROE)

10.8%

Dividend on equity (DOE)

3.4%

Total payout ratio*

2

67.0%

*1 Net sales after revenue recognition.
*2 Total payout ratio results for FY2022 include ¥3.7 billion used for purchase of treasury shares.

576.0
20.0

3.4%
13.2

11.8%

At least 33%

At least 3.5%

▎Non-financial KPIs*3
Item

CO2 emissions (Scope 1&2)

Percentage of female managers

Percentage of female employees in comprehensive
work position

New businesses

FY2022 Results

Long-term Care
& Medical

Food Equipment

Agriculture Process* Net sales figures in brackets are after revenue recognition.

FY2025 Plan

6.0%

62.8％

Digital talent cultivation(successful candidates from our original program)

New
Businesses

4.2％

1.9％

Percentage of taking paid leave
Average hours of labor

New Distribution

6,682t-CO2

10.3％

Managerial talent cultivation(number of training program participants: total)

Resilience &Security

30% reduction(compared with FY2022)

Percentage of employed females in comprehensive
work position

Percentage of male employee taking childcare leaveand leave for the purpose of childcare

Digital

Sharing

Ordinary profitCorebusinesses▎Financial KPIs

Green

78.1%

1,955 hours
84 persons
-

3.0％

12.0%

90.0%

70.0％

1,920 hours

370 persons

IT talent*4: 600 persons
DX talent*5: 40 persons*3 Of the non-financial KPIs, all indicators except CO2 emissions are for YUASA TRADING (non-consolidated).
*4 Personnel who can utilize IT tools and digital technologies in their own work and carry out digital measures.
*5 Personnel who utilize the results of data analysis and formulate and promote new plans based on specialized knowledge of marketing andmanagement strategies.

15

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Business Transformation

Overview of Business Transformation

The Group will expand existing business and implement growth strategies domestically and internationally by transforming business models and developing existing business
partner networks.
▎Conceptual Image of Business Transformation

Achieve Growing Together 2026

Enhance corporate value

Consolidated net sales for the fiscal year ending March 31, 2026

¥600 billion (of which is overseas business: ¥65 billion)

Interactive platform

Development ofbusiness partner
network

Profitability

Business modeltransformation

Promote solutions to new social issues throughinteractive information sharing

Solve social issues together
with our business partners

Corporate Culture Reform
Corporate Philosophy

TSUNAGU
innovation

DX Promotion

Cross-industry platform

Realize TSUNAGU innovation through cross-industry
collaborations to leverage total coordination skills

Promote growthstrategies

GrowthDevelop the Group's strengths
in growing markets

Sustainability Promotion

Honesty and Trust, Enterprise and Innovation, and Regard for the Individual

P.18

Extend in Japan and overseas

Extend business partner
networks

P.18

P.16

Business model transformation

P.21

Foundation of transformation

16

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Business Transformation

Business Model Transformation: Shift to More Profitable Business Model
We are creating a high valued-added business model that accurately grasps market needs with a market out approach and also connects information, data, and technologies in addition to the conventional
aspects of people, goods, and money. We aim to improve profitability by positioning this market out business model as TSUNAGU innovation and promoting it throughout the Group.

■TSUNAGU Innovation Business Model

Manufacturing

TopicsHome building

Social issues

PeopleEnvironment building

Town building

Solutions

Information

Goods

Technology

By connecting (TSUNAGU) various things such as people, goods, money, information, data, and technology, solve social issues andexpand both “single item business” and “integrated product-service” businesses●E stablish a business model with a market out approach●M aximize synergies among divisions and Group companies to create new value●T ake on the challenge of subscription and sharing services●

The KIZUKI MIRAI Bollard with flood sensor can bedelivered quickly to locations with frequent flood
damageThe KIZUKI MIRAI Bollard at Izu-Kogen
in Ito City, Shizuoka Prefecture(installed August 2022)

Data

Money

Examples of TSUNAGU solutions

The KIZUKI MIRAI Bollard serves as a countermeasureagainst flood damage from typhoons and torrential rains.
Installed beside roads and other familiar places in low-lying
areas, these bollards can quickly detect flooding.
This product was developed in cooperation withexterior manufacturer Sunpole Co., Ltd. (Hiroshima
Prefecture) and OYO Corporation, a geological survey
company headquartered in Tokyo. As Japan experiences
frequent natural disasters, flood damage is a pressing issue
that requires countermeasures. However, the high numberof rivers throughout the country makes developing amonitoring system a burden in terms of time and costs.
To solve this issue, it is possible to build a wide-areaand precise flood monitoring network by installing flood
sensors on bollards, which are already well established aspart of the infrastructure in Japan.

17

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Business Transformation

Business Transformation: Develop into a Growth Strategy▎Promoting Growth Strategy

This growth strategy consists of projects to expand core businesses and developing new
businesses for growth in new markets, aiming to achieve sales of ¥286 billion, or approximately
48% of total sales, by FY2025.
We will promote our growth strategy by deploying the strengths we have cultivated in our corebusinesses and aggressively investing.

■Positioning of
Growth Strategy andCore Businesses■Sales Targets by Growth Strategy for FY 2025

Overseas¥65 billion

Core Businesses

Industrial Equipment& Tools

Housing, Air & Fluidic
Control Systems

Green¥60 billion

Digital¥40 billion

Businesses promoted by whole company

Resilience &Security¥35 billion

Growth Strategy

Drivers for Core
Businesses Expansion

EnergyConsumer Products& Timber

New
Distribution¥25 billion

Long-term
Care & Medical
Sharing¥25 billion¥10 billion

Machine Tools

Construction
Machines

Building Supplies& Exterior

Food
Equipment¥16 billion

Agriculture
Process¥10 billion

Target markets and challenge areas promoted on an area or organizational basis

Projects to expand core businesses: ¥235 billion

Growth strategy total: ¥286 billion for FY2025

New businesses: ¥51 billion

18

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Business Transformation

Business Partner Network Development
Platforms for a market out approach

Business Partner Network

Work to solve social issues with one of theindustry's largest networks of business partners
Integrated Network

Major suppliers

Major sales partners

companies

companies

Approx.

6,000 Approx. 20,000

Grand Fair” promotion event▎“held
at five locations across Japan

Create new business by capturing market needs
and sharing information and knowhow withcustomers
Major
suppliers:
approx. 6,000
companies

31 sites in Japan /23 sites in 10 countries overseas
Group companies: 2
 3 domestic,
12 overseas

Major sales
partners:
approx. 20,000
companies

Integrated network
TSUNAGUproducts

Information

Data

Construction

Carbon neutrality

for utilization of idle facilities development▎Solution
and deployment of the Garage Golf system
Garage Golf combines
the products,
technologies, and ideasof YUASA TRADING
and manufacturers
to address thephenomenon of idle/
unused facilities
through the enjoymentof simulated golf.

Cross-Industry Platforms

New innovation to address social issues in themarket through a network that transcends
industry boundaries
Manufacturing

Industrial
Livingenvironment

Construction

Environmentbuilding

Home building
Town building

Sales partner
network

Supplier network

With a 45-year history,
our “Grand Fair” isthe Group’s largest
promotional event forleveraging our integrated
network. Grand Fairs
are held annually in five regions (Kanto, Kansai, Chubu,
Tohoku, and Kyushu). These events serve not only as avenue to secure sales but also to create new business
opportunities. In 2023 Grand Fairs are scheduled from Julyto September, with an expected 50,000 visitors.

Interactive Platforms

and deployment of gateposts▎Developmentwith V2H device and delivery boxes
P.35

Develop domestic and overseas
business partner network

19

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Interview with Outside Directors
We spoke with the YUASA TRADING Group outside directors about the Growing Together 2026 Medium-term Management Plan.

Investing in business resources cultivated inour core businesses and applying them overseas
as well as TSUNAGU innovation

Measures to increase the value we provide
and expand the markets we supply

Shinzo Maeda

Kyosuke Kimura

Outside Director

I believe this plan is well-anchored in changes to social conditions and the market environment. A
good point about the plan is the aggressive investment of business resources into our core businesses
and leveraging our strengths to expand areas of business growth. Among these growth strategies, theone that most draws my attention is overseas business development, which I believe is very important.
Japan’s future population decline will create a tendency toward shrinking markets. As such,it will be very important to build a strong and stable presence in overseas markets. We will makethe “mini-YUASA” we have established in Thailand succeed as a way of demonstrating the total
coordination skills of the Group. I believe this initiative will determine the success or failure of
our future overseas expansion. The key to overseas success will be the people; those engaged
in management and sales overseas need to understand the YUASA TRADING Group corporate
philosophy and management strategies. I believe the “Grand Fair” exhibition in Japan is a uniquebusiness development method, and I would very much like to see business development inThailand lead to a successful Grand Fair there. If the percentage of overseas sales can exceed 30%,
then employee awareness will change and a culture of thinking about business from a global
perspective will be created. As is true in Japan, global expansion is not possible without diversity.
It is necessary to consider cultures, religions, legal systems and the like when developing ourbusiness overseas.
The promotion of TSUNAGU innovation is also a strategy that demonstrates the strengthof a well-developed business partner network for our core businesses. However, the axis ofassessment for the products and solutions developed by companies has shifted in recent years.
Simply contributing to the sales and profits of certain customers is not enough; customers
have started to select products and solutions in line from various perspectives such as productbackground and processes, degree of social contribution and consideration for the environment.
Through the TSUNAGU innovation, I hope the Group continues providing value to society, whichmakes us the reason to be chosen by people.

Outside Director

Taking into account the current and future business environment, it can be assessed that themeasures taken by the YUASA TRADING Group to improve its corporate value are comprehensive.
Of these various measures, the most commendable is that the Group is increasing the value it
provides and expanding the markets it supplies.
I believe that many stakeholders were under the impression that we are an industrial
machinery trading company focused on the domestic market. As such, it would be difficult for
stakeholders to fully assess the existing value and growth potential of the Group. No matter how
stable the operating cash flow is, the image of business development in a limited market would
seem somewhat unattractive.
Today, we are gradually breaking away from such pre-conception. I feel that our stakeholders havecome to recognize the value that results from the connecting (TSUNAGU) that leverages the Group’s
network-building over more than 350 years of doing business. The Medium-term Management Plan
calls for a business transformation from a product out to a market out approach, and the promotion of
TSUNAGU innovation and growth strategies; I believe this approach will increase the value provided by
the YUASA TRADING Group and expand markets that demand such value.
This promotion of TSUNAGU innovation is a continuation from the previous Medium-termManagement Plan, and I hope to see it further accelerated. It doesn’t matter how niche an innovation
is—if stakeholders recognize that we are deeply involved in such matters, and if they understand thevalue we provide and the breadth of the market, then I believe that profitability will follow.
Also, it is human resources that drive these changes. I believe that if YUASA TRADING Group
employees hone their sense of integrated product-services and effectively utilize the intellectual
property that has been created, it will lead to an increase in corporate value. In promoting
overseas strategies, it will be necessary to instill the corporate philosophy and Medium-termManagement Plan among locally hired human resources. I hope the Group will continue to place
importance on investing in human resources.

20

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Interview with Outside Directors
Having welcomed two new outside directors, we spoke with them about the Group’s Medium-term Management Plan, Growing Together 2026.

Strengthening human resources development
and environment building that leverages ourbusiness partner network

Sustainability and competitiveness throughenhanced risk management

Yoshiro Hirai

Miki Mitsunari

Outside Director

Newly appointed

It is my great pleasure to join the Board of Directors.
For more than 350 years, the YUASA TRADING Group has been in tune with changes in
the world, but in recent years the pace of change has rapidly accelerated. While it is of course
important to preserve good and necessary traditions, I believe it is also essential to be able torespond quickly and flexibly to drastic changes. I hope to contribute to a strong foundation thatcan support pioneering for a new future and an environment in which employees can work withvigor and vitality.
In terms of the Medium-term Management Plan and recognizing the issues to be addressed
to improve corporate value, I believe that the YUASA TRADING Group’s focus on a business
transformation from a product out to a market out approach is appropriate in light of the times
and changes in the market. I believe the Group’s greatest asset and strength is its network ofbusiness partners. How we choose to leverage this extensive network will be vital, but it is noneother than employees who can make this a success. To this end, the question then becomes how
actively employees can approach their own work—it is important to not just passively do one’s
work but to also take an interest in it.
Creating new value by associating various events is much more difficult than one might
imagine. Making connections among unlimited possibilities and solving the issues of business
partners and the market will require an even greater ability to imagine and implement than
before. The key here is to develop human resources and build an environment that allows themto flourish. To do all of this, it is therefore vital to reform the corporate culture, including thefostering of human resources.
YUASA values include having a “Challenging Spirit,” and I believe it is important for
management-level and higher employees to first change their own behaviors. If upper levels set a
good example of a challenging spirit in action, that attitude will spread throughout the company.

Outside Director

Newly appointed

I am very pleased and humbled to be appointed to the Board of Directors.
I have been associated with the YUASA TRADING Group since its Sustainability Declaration
announcement in October 2021, and I find it to be a very dynamic organization. With a diverse
range of business partners, products, and services, there are many areas with growth potential.
I believe that in order to create new innovation, it is important to have a vibrant and enjoyable
workplace. In the future, I will fully support the moves toward being a company that is not only
carbon neutral but also one where employees find it a joy to work, where business partners are
happy, and where innovation happens.
In terms of the Medium-term Management Plan, I think that an overall good balance has beenachieved with the strategy of further expanding existing business and working in new fields thatare less susceptible to economic circumstances. Without solid profits generated from existing
businesses, we cannot invest in new solutions. Moreover, enhancing profitability with TSUNAGU
innovation requires abilities and knowledge to coordinate both sides of the TSUNAGU equation.
For this reason, I can greatly appreciate the measures everyone is taking to improve the internal
environment so employees can demonstrate their total coordination skills. In the future, I hope to
see the employees working on these efforts set goals and have a sense of accomplishment when
they achieve those goals, and I look forward to a corporate culture in which employees can feeleven more fulfilled in their work.
From the perspective of sustainability promotion, it has become very important to further
enhance risk management infrastructure to ensure transaction security. In particular, there is aneed to increase transparency throughout the value chain. Since the Group will handle a greatamount of data, I would like to see the YUASA TRADING Group improve its competitiveness byproperly and appropriately disclosing business transaction information through means such as
digital transformation (DX).

21

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Message from the Supervisory Manager of Management Administration
Aiming for Sustainable GrowthBased onOur Corporate Philosophy▎

 trengthening Our Management Foundations
S
for Sustainable Growth

I believe that the role of management administration is to build
systems and foundations for maximizing corporate value. For
sustainable business development, it is essential to strengthen the
management foundations for human resources, infrastructure,compliance, and governance. Each one of the three-year mediumterm management plans under the 2017 YUASA VISION 360 has
set strengthening our management foundations as a priority
matter. The environment in which our company operates ischanging greatly against a backdrop of technology development
and increasing social uncertainty. I believe that adapting to thesechanges will support sustainable development.
The current and third Medium-term Management Plan,
Growing Together 2026, represents the harvesting stage, andwe will strengthen our initiatives for corporate culture reform,
DX promotion, and promotion of sustainability to serve as thefoundations for accelerating our business transformation.

hree Measures to Support Our Business▎TTransformation

We set our first and foremost pillar as corporate reform. In terms ofstrengthened corporate governance, we added another outside
director to the board from FY2023.

■Three Measures to Support Our Business Transformation (Overview)
Business transformation

Haruo Sanoki

Representative Director, Senior Managing Director
Supervisory Manager of Management Administration

DX promotion

Corporate
culture reform

Sustainability
promotion

With the aim of enhancing the Group’s quality ofmanagement, we continue to strengthen governance,compliance, and risk management. In terms of personnel
reforms and environment building, we are promoting projects
that involve the participation of all employees, which is driven
by the keywords of “Total Coordination Skills,” “Challenging
Spirit,” and “Communication” in order to foster a corporate
culture in which TSUNAGU innovation has become the norm.
For the second pillar, DX promotion, we aim to establish acompetitive advantage by not only introducing systems but by
also using those systems to transform our business and enhance
our operations. In moving toward data-driven management,
we will focus on developing DX talent cultivation across thecompany, including management, and strive to transform
ourselves into a data-based specialized trading company.
The third pillar is the promotion of sustainability in linewith our 2021 Sustainability Declaration, with a focus on
harmony with the global environment, business activities forservice with good products, and management that respects
humanity. As the first step toward carbon neutrality for theGroup, we aim to reduce CO2 emissions by 30% by March 2026
(compared with FY2022). Leveraging our Group’s efforts andknowledge, we will also accelerate our social problem-solving
businesses, including promoting carbon neutrality for ourbusiness partners.

Corporate Culture Reform

We will foster a corporate culture that has normalized TSUNAGU
innovation through the means of personnel reforms, environmentbuilding, and strengthened governance.

P.44

DX Promotion

To promote business transformation, we will build a data utilization
infrastructure, develop DX talent, reform business processes, andcreate innovation.

P.40

Sustainability Promotion

We aim to make the Group as a whole carbon-neutral, and accelerate
the carbon neutrality promotion business.

P.23

22

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Message from the Supervisory Manager of Management Administration▎Maximize Corporate Value

To embody one of our core corporate philosophies, Enterpriseand Innovation, the YUASA TRADING Group undertakes
industry-leading initiatives—for example, our goal of making
the Group as whole carbon neutral by FY2030 is 20 years earlier
than what the Japanese government is calling for.
From the perspective of sustainability and human capitalmanagement, we have increased the number of non-financial
KPI items in the current Medium-term Management Plan.
We believe that achieving these KPIs will be the result ofstrengthened management foundations.
By promoting both financial and non-financial KPIs,
we aim to maximize the corporate value of the Group byenhancing both economic value (financial value) and socialand environmental value (non-financial value), aiming tomaximize the corporate value of our Group.

▎Strategies


Investment Policy for Strengthening Growth▎Total Payout Ratio to Shareholders

In terms of our cash flow allocation policy, we are investing¥21.2 billion, or slightly over half of our total operating cash
flow for the past three years, into growth areas and DX.
Additionally, in our growth strategy investment, we haveestablished an investment framework for integrating our bases inThailand to enhance overseas business and creating TSUNAGU
innovations, allocating investments to each of the following areas:businesses promoted company-wide (Overseas, Green, Digital),businesses promoted according to area and organization (Resilience& Security, New Distribution, Sharing, Long-term Care & Medical,
Food Equipment, Agriculture Processes), and core businesses.
DX IT digital investment has been allocated ¥11.2 billion
for the purpose of developing the necessary infrastructure andcultivating and strengthening talent to transform the company
into a data-based specialized trading company.

■Trends in Dividend Per Share and Payout Ratio■Investment Policy for Growing Together 2026
Investment

Overseas Business

Growth Strategy Investment

Green Business(Eco & Energy Solution)
Digital Business(Robot [AI] & IoT)

Plan

¥6.0 bn

Food Equipment
Business

DX andIT digital investments

Total● Thailand reinforcement investments
・TSUNAGU innovation development¥4.0 bn● Function strengthening
investments

・Human resource development
・Strengthened sales promotion
・Development of logistics
infrastructure

Agriculture Process
BusinessCore businesses● M&A investment● Product and service development
investments

New Distribution
Business

Long-term Care &Medical Business

Details

Interim dividend

Year-end dividend
Payout ratio

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Resilience & Security
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Sharing Business

Growing Together 2026

As to our shareholder payout policy, we have set a new
KPI for a dividend on equity (DOE) of 3.5% or higher, while
maintaining a shareholder payout ratio of 33% or higher basedon stable dividend payments, as in the past.
We will continue to strive to enhance corporate value
through proactive IR activities, appropriate information
disclosure, and the provision of stable shareholder returns.

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FY�����23

YUASA INTEGRATED REPORT 2023

Strategies to Maximize Value Creation

Promoting Sustainability Management

We will actively contribute to the establishment of a sustainable society through our business activities.
▎Governance

The YUASA TRADING Group has established the Sustainability
Promotion Committee in order to promote management that
contributes to sustainability. The committee deliberates on theoverall risks, opportunities, and impacts of sustainability, including
climate change, periodically reviews the policy for countermeasures
to reduce risks, and advises the Board of Directors. The Board of
Directors discusses these issues as important matters related tobusiness strategy and sustainability and determines policy.
■︎Sustainability Management Promotion System
Board of Directors

Sustainability Promotion Committee(Chair: Representative Director)

Administrative bureau

Support promotion
Each businesssite▎Strategy

Governance Advisory Committee

P.53▎Risk Management

With regard to overall risk management for sustainability,
including climate change, the Risk Management Supervisory
Manager, each of the committees (Ethics and Compliance
Committee, Internal Control Committee, Environmental and
Resilience Committee, etc.), and the Sustainability Promotion
Committee collaborate to identify, assess, and manage risks.
We also manage risks across the Group based on relevantinternal rules and notices, including the identification ofvarious risks in the Group’s business activities, collectionof information, planning of preventive measures, and theprovision of training.
■Sustainability Declaration and Materiality
Sustainability
Declaration

Sustainability Promotion Office(inside Corporate Planning Department)
Collaborate

Management
Administration

Group companies
in Japan

Unit responsible for sustainability promotion

Respond to climate change(realize a resilient society)

Group companies
overseas

Based on our corporate philosophy of “Honesty and Trust,”“Enterprise and Innovation” and “Regard for the Individual,” wepublished our Sustainability Declaration in October 2021 to further
evolve the management foundation which has been passed down
for over 350 years. We will continue to actively contribute to thefurther development of prosperous, humanitarian societies andcreation of sustainable societies through our corporate activities
by valuing mutually beneficial, symbiotic relationships in all
countries and regions of the world, with a focus on maintaining
harmony with the global environment.

Harmony with the Global
Environment

Materiality

Contribute to decarbonization ofsociety through energy creationand saving know-how

Support cyclical society(rental and sharing)

Lower environmental impact
through company activities■Main Initiatives in Growing Together 2026

We will reduce CO2 emissions 30% by March 2026 (compared with FY2022)●

6,682 t-CO2
CO2 emissions
FY2022*Target for Scope 1 and 2 emissions of the Group

30% reduction

Carbon neutrality

FY2025

FY2030CO2 emissions

Initiatives to reduce Scope 3 CO2 emissions●Promotion of businesses that solve social issues(e.g., carbon-neutral promotion business, Resilience & Security business)●●

Inform stakeholders of our transaction policy and human rights policy
Promotion of corporate culture reform projects (YUASA PRIDE project,
office environment building)●Business Activities for Service with
Good Products

Realize a safe and secure society
through service with good
products
Support sustainable
manufacturing, home building,environment building, and town
building
Create co-creation value –“TSUNAGU”

Management that Respects Humanity
Promote health management
and comfortable working
environments for the 400th
anniversary of the founding of
the company

Promote diversity(women, foreign nationals,
experienced mid-career hires)

Promote Digital Business
Strengthen relationship withbusiness partners(strengthen DX and logistics promotion
in and outside the company)

Enhance education and training(strengthen human resource
capabilities)

24

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation
Core Businesses

Messages from the Headquarters General Managers
Business Overview for FY2022 and Vision▎Industrial Market Headquarters(Industrial Equipment & Tools Division andMachine Tools Division)

Mamoru Hamayasu

Director,
Chief General Manager of Industrial Market
Headquarters

Aiming to Realize Factory Automation Based on“Digital” and “Green”

The Industrial Market Headquarters contributes to “monozukuri” inJapan and around the world by selling machine tools and generalfactory equipment and delivering cutting-edge technology fortools, industrial equipment and machinery, control equipment, andlogistics equipment to manufacturing sites in Japan, China, the restof Asia, and North America.
In FY2022, we achieved sales and profit growth. This was
the result of focusing our efforts on sales of products related toautomation and rationalization of production sites to help realize
factory automation and updating of obsolete equipment making useof various subsidies, in addition to sales of high-precision processing
machinery in order to improve competitiveness.
Looking at the domestic and overseas markets, sales of multitask machines are increasing in Japan as the decline in the working
age population becomes a significant problem and demands forlabor saving and automation grow. In overseas, there have been
negative factors such as surging prices of raw materials due to trade
friction between the United States and China and component
shortages. However, the increase in large-scale projects for production
equipment was greater than the impact from these negative factors.
We will continue to support “monozukuri” in Japan and aroundthe world through our global network that extends worldwide, ourknow-how in trading we have accumulated to date, and our support
system that collaborates in Japan and overseas. In order to support
factory automation, we will also provide one-stop proposals forequipment that produces high returns on investment across anentire production line, in addition to driving the carbon neutrality ofour business partners through energy-creating and energy-saving
products.

▎Living Environment Market
Headquarters(Housing, Air & Fluidic Control Systems Division
and Consumer Products Division)

Kenichi Tanaka

Senior Managing Director,
Chief General Manager of Living Environment Market
Headquarters

Strengthening Functions Leveraging Total Coordination
Skills of YUASA TRADINGThe Living Environment Market Headquarters provides proposals
for improving equipment across a wide range of sectors, including
housing equipment, piping products, building air conditioning, andfactory utility equipment.
In FY2022, we achieved sales and profit growth despite
anticipated delays in deliveries of some products such as water
heaters as a result of the global shortage of components. This was
the result of working on sales of non-housing products and providing
proposals for systems aimed at realizing carbon neutrality.
In the housing sector, amid an anticipated decline in demand
for new-build housing due to the low birthrate and aging population,
we will continue contributing to the realization of better living by
expanding sales of high-functionality, high value-added products.
In addition, we will target the renovation market, which is predicted
to remain robust, with solutions that leverage the total coordination
skills of YUASA TRADING. We will also provide proposals for improving
equipment utilizing energy-saving, highly efficient products forbuildings in the non-residential sector where carbon neutrality is
being called for recently.
Furthermore, in order to strengthen our engineering functions,
we will put in place a system that can offer an integrated service fromproposal and cost estimate through construction and maintenanceacross Japan by increasing the number of our construction partners
all around the country to build a nationwide construction system, as
well as leveraging the strengths of Group companies that specialize
in construction.

▎Construction Market
Headquarters(Building Supplies & Exterior Division, Construction
Machines Division, Energy Division, and Timber
Division)

Takaomi Omura

Director,
Chief General Manager of Construction Market
Headquarters

Aiming to Create New Value by Connecting Different
Business Domains

The Construction Market Headquarters consists of the Building
Supplies & Exterior Division, which provides integrated support forbuilding materials, landscaping and exterior materials, and civilengineering materials from cost estimates through to construction,
the Construction Machines Division, which offers suggestions on
cutting-edge industrial rental products and small construction
machines for road paving and civil engineering work, the Energy
Division, and the Timber Division.
The headquarters aim to identify changing market needs andflexibly offer new lifestyles. In particular, we are the only building
materials wholesaler with a nationwide sales network, which isone of our strengths together with the large number of products
we handle. In FY2022, we captured steady demand and achieved
sales and profit growth despite some remaining delivery delays
and other impacts from surging material and energy prices and thesemiconductor shortage.
Under the Medium-term Management Plan, we will further
expand our construction and road materials sales and construction
sales. We will also aim to create new value by expanding into the Thai
market and uncovering demand for machine rental and maintenance,in addition to connecting the different business domains of the Groupsuch as sales of timber and the energy business.
Moreover, to prepare for frequent disasters, we will contribute tosustainable urban development thereby creating the future throughpromotions of businesses that solve social issues such as expanding
maintenance of aging infrastructure as well as disaster prevention/
mitigation and BCP products, labor-saving solutions for workload
and labor saving at construction sites, and product proposals related
to the SDGs.

25

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Core Businesses

Industrial Market Headquarters

Industrial Equipment & Tools Division

With our industry-leading product lineup and consulting know-how, we promote smart factories at manufacturing sites.

Net sales

Operating profit /Operating profit to net sales ratio
Operating profit(billions of yen)
��

73.0

74.1

70.0

77.4

61.5

��

(billions of yen)

�.�

2.2

�.�

3.1

��

�.�

��

�.�

�

FY���� FY���� FY���� FY���� FY�����

Operating profit to net sales ratio (%)

2.1
1.8
1.3
1.0
1.9

2.5

Main business fields

Sales of tools, industrial equipment and materials, control
equipment, and logistics equipment●Relevant main materiality issues

Promote Digital BusinessSupport sustainable manufacturing and environmentbuilding
Contribute to decarbonization of society through energy
creation and saving know-how

2.8

1.7

FY���� FY���� FY���� FY���� FY����* Net sales from FY2021 onward show figures after the application of the revenue recognition standard.

Automobile manufacturing
Manufacturing industries, including IT and semiconductor
manufacturing equipment●F ood manufacturing●A ll other manufacturing industries●●

Promote automation and labor saving at manufacturing sites

Propose quality control and factory automation using robots, ICT (including local
5G), AI, etc.
●P
 ropose high added value through AI and IoT functions in manufacturing,inspection, and logistics processes●P ropose products that can reduce power and manufacturing costs for electricvehicles (EVs) and semiconductor-related factories●F urther development and sales of original products (TSUNAGU Y-Fi, etc.)●

Expand sales channels for in-factory air conditioning and refrigeration equipment
and industrial piping products●S upport manufacturing industry by proposing solutions for carbon neutrality●E xercise TSUNAGU innovation through product development that captures
market needs through data analysis●Strengths

Product lineup centered on tools, control, and logistics
Consulting capabilities based on many years of on-siteknow-how●E -commerce functionality (Growing Navi)●●

Increased demand for carbon neutrality
Expansion of semiconductor market● I ncreased labor-saving investments due to declining
birthrate and aging population● I ncreased business continuity plan (BCP) investment atfactories●

Opportunities

Relevant main markets▎Measures in Medium-term Management Plan

Expand sales products by leveraging the Group’s total
coordination skills

Business environment analysis

Risks

●

Decline in supply capacity due to rapid decline inworking population●L ower profit margins due to price competition●E ntry into e-commerce from other industries●▎Vision and Related Initiatives

Accurately grasp changes in needs and provide digital solutions to the entire
manufacturing line

We are focusing on proposing next-generation network “local 5G* solutions” to solve the problems on productive
improvements at manufacturing sites and labor shortages caused by population decline.
By constructing a large-capacity, high-security 5G system unique to the field and connecting a variety of ICT
devices, we will provide one-stop solutions for the realization of factory automation, such as remote work support
by skilled workers, remote management and control of equipment, predictive
On-siteHeadquarters
maintenance combined with high-performance AI, and visual inspection.
➀ Remote
In addition, in response to changes in the industrial structure, including
work support
Administrator
efforts to reduce CO2 and the spread of EVs, we will accurately grasp the needs
Local �G
(Expert)base station➁ Productionof the market and contribute to solving problems at manufacturing sites
line robot
controlthrough the development and proposal of products and systems that leadto the provision of environmentally-friendly solutions and the reduction of➂ AI inspection
Inspection
OK/NG
manufacturing costs.
determination
Presence of scratches, etc.
* A fifth-generation mobile communication system that can be built by various users such as local companies and local
governments “on their own premises,” “with their own investment,” and “exclusively for their own company.”

Key local 5G use cases that are often
consulted by manufacturing customers

26

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Core Businesses

Industrial Market Headquarters

Machine Tools Division

We will develop solutions that aim to solve social issues from the perspective of manufacturing support.
Net sales

Operating profit /Operating profit to net sales ratio
Operating profit(billions of yen)
���
���

130.5

�

122.4

118.5
102.2

��

82.7

��

5.7

5.3

�

�

● Sales of machine tools and general factory equipment

Relevant main materiality issues

Promote Digital BusinessSupport sustainable manufacturing and environmentbuilding
Strengthen relationship with business partners (strengthen
DX and logistics promotion in and outside the company)

4.3

�

�

FY���� FY���� FY���� FY���� FY����

5.9

�

�

��
�

Operating profit to net sales ratio (%)(billions of yen)

Main business fields

4.5

4.3

2.5

4.3

4.9

3.1

FY���� FY���� FY���� FY���� FY����* Net sales from FY2021 onward show figures after the application of the revenue recognition standard.

Relevant main markets[NEVs])● Semiconductor manufacturing equipment● Factory automation market● All other manufacturing industries

Maintain and expand share of machine tool market

Strengthen sales by selecting and concentrating on sales products●D evelop original products through alliances with manufacturers●E xpand handling of peripheral equipment in the pre- and post-processing
processes such as parts inspection and measurement●Promote automation and labor saving at manufacturing sites

Develop derivative products of Robo Combo, our original productDevelop solutions equipped with automatic setting of processing conditions andpreventive maintenance functions using AI●P romote sales of energy-saving and energy-generating equipment, improvementof factory environments (air conditioning and dust collection), and reduction of
power consumption (visualization of electricity)●B uild DX solution (subscription) services for manufacturing●Strengths

Top-level machine tool sales capabilities in Japan
Strength of business partner network●E ngineering capabilities through collaboration withGroup companies●●

Accelerated automation due to labor shortage andincreased sales of DX and system products●E xpansion of ultra-precision processing market due toadvances in IT digital technology●B irth of new processing market with shift to EVs●Opportunities● Automobile manufacturing (response to new energy vehicles▎Measures in Medium-term Management Plan●Business environment analysis

Market shrinkage due to population decline in Japan
Decline in supply capacity due to rapid decline inworking population●R eduction of parts and changes in manufacturingmethods due to shift to EVs
●

Risks

●

▎Vision and Related Initiatives

Total proposals that can only be made by our Group, which handles all machines, tools,
and peripheral equipment

In order to improve the processing environment at manufacturing sites, we have developed a system that canstably process parts of materials such as ceramics and silicon (brittle materials) required in the semiconductor fieldby connecting the microfine bubble generator “Bub Power 2,”
precision filtration equipment, and high-precision AE sensors
with machine tools. Our goal is to contribute to customers'
carbon neutrality efforts by maximizing the performance ofmachine tools, stabilizing machining quality, and reducing
machine maintenance and consumable purchase costs. In“Bub Power 2” andProlongs the life of processing
and cleaning fluids
addition, we will solve problems in the manufacturing industry microfiltration equipmentwith a total proposal from our company that handles all
machines, tools, and peripheral equipment, such as AI-based
Processing environment solution
processing fluid degradation management and verification to
introduction video
https://youtu.be/I8oe1XIQ8AQ
optimize processing conditions with sensing technology.

27

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Core Businesses

Living Environment Market Headquarters

Housing, Air & Fluidic Control Systems Division

Utilizing our unique engineering functions, we provide total coordination of living and office environments.
Net sales(billions of yen)
���
���

152.1

Operating profit /Operating profit to net sales ratio
Operating profit

162.4 158.9 164.2

177.9

���

�
�

5.0

5.4

5.4

3.4

3.4

5.7

6.3

�

��

�
�

��
��

�

(billions of yen)

Operating profit to net sales ratio (%)

3.3

3.5

3.6

�
FY���� FY���� FY���� FY���� FY�����

FY���� FY���� FY���� FY���� FY����* Net sales from FY2021 onward show figures after the application of the revenue recognition standard.
*Due to organizational restructuring in FY2022, actual figures for FY2021 have been retrospectively applied.

▎Measures in Medium-term Management Plan
Expand functionality of existing businesses

Strengthen and expand engineering capabilities/solution sales●E xpand logistics functions/processing work in warehouses●E xpansion of accumulation functions●C ollaboration with Group companies●Promote Green Business

Strengthen proposals for carbon neutrality through renewableenergy and energy conservation in supply chain●E xpand sales of environmental energy products●E stablish businesses related to hydrogen energy●Main business fields● S ale of tubing materials, air conditioning equipment, housing

equipment, and renewable energy-related equipment

Relevant main materiality issues

Support sustainable home building and environmentbuilding
Strengthen relationship with business partners (strengthen
logistics)
Contribute to decarbonization of society through energy
creation and saving know-how

Relevant main markets● P iping product wholesalers and plant engineering companies● H ousing equipment stores and subcontractors● D evelopers, builders, construction companies, etc.

Business environment analysis
Diverse product lineup centered on housing equipment,
piping products, and air conditioning●A bility to propose solutions by department specialized
in environment and energy conservation●L ogistics capabilities● 

Strengths

Opportunities

Expansion of renovation market
Increased demand for carbon neutrality● I ncreased demand in overseas markets●●

Decrease in demand for new housing due to population
decline●S oaring material prices●S hortage of craftsmen due to decrease in working
population
●

Risks

▎Vision and Related Initiatives

We support the creation of sustainable “home building” and “environment building” by proposing
solutions
Our strength lies in our energy-saving proposals and our ability to sell high-efficiency products. In order to promote carbon
neutrality, we propose upgrading various facilities such as homes, office buildings, hospitals, and schools to high-efficiency
equipment using energy-saving subsidies.
We have also launched the Renous Project to support companies working to maintain and improve the asset value ofboth residential and non-residential buildings in response to social issues such as
the increasing vacancy rate, which has become increasingly serious in recent years.
This project not only provides products but also provides study sessions, technicaltraining, and business improvement proposals for suppliers wishing to enter the
renewal market. We are also promoting the use of digital technology, including an
app utilizing MR* technology and a construction management system. Going forward,
we will continue to offer energy-saving proposals, new product development, andmaterial processing proposals utilizing the Group’s total coordination skills in the
renewal market, which is expected to continue to be strong.
* MR: Abbreviation for mixed reality, which is a technology that combines the real world with virtual reality.

Skill development app utilizing MR technology

28

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Core Businesses

Construction Market Headquarters

Building Supplies & Exterior Division

Leveraging our strength in the domestic market with our high share, we will expand our business by strengthening sales to public organizations and overseas.
Net sales

Operating profit /Operating profit to net sales ratio
Operating profit(billions of yen)(billions of yen)

�.�

��
��

56.2

58.2

56.6
46.5

51.6

��

�.�
�.�
�.�

��
�

Operating profit to net sales ratio (%)

1.6
3.0

2.3
1.8

3.2

1.8

3.2

1.8
3.9

4.6

�.�
FY���� FY���� FY���� FY���� FY�����

FY���� FY���� FY���� FY���� FY����* Net sales from FY2021 onward show figures after the application of the revenue recognition standard.
* Due to organizational restructuring in FY2022, actual figures for FY2021 have been retrospectively applied.

Main business fields● S ale of construction materials, landscape materials/exterior, civilengineering materials, etc., design supervision and contracting
for installation of external construction materials

Relevant main materiality issues

Support sustainable environment building and town
building
Respond to climate change (realize a resilient society)
Realize a safe and secure society through service with good
products

Relevant main markets● E xterior landscaping market● R oad, civil engineering and infrastructure construction markets● B uilding hardware market

Business environment analysis
Strengths

Leading exterior sales capabilities in Japan
Ability to propose solutions by department specialized
in resilience●A bility to procure products from overseas
● 

●

Demand for renewal of social infrastructure
Urban redevelopment projects●S pread of transportation IoT● I ncreased demand for EVs and renewable energyrelated products●

Opportunities●

Increased procurement costs (rising prices, logistics
problems in 2024, etc.)●D ecreased number of housing starts due to population
decline●C hanges in competitive environment due to industry
restructuring
●

Risks

▎Measures in Medium-term Management Plan

▎Vision and Related Initiatives

Expansion of sales networks for public sector (railway anddefense fields, redevelopment-related demand)●R espond to demand for infrastructure renewal (measures
for aging roads and bridges, accident repair, etc.)●D emand for renovation of buildings and condominiums●E xpansion into Southeast Asia, with a focus on Thailand

In recent years, lifestyles have been changing due to various factors such as the spreadof diverse work styles and the use of information technology. As one of the initiatives
to respond to such diversifying needs, the Group is proposing new ways to utilize
spaces and products. For example, “Garage Golf” P.18 , which developed a new use
for garages, is one of them. Going forward, we will leverage our leading exterior sales
capabilities in Japan to strengthen our expansion not only in the domestic market
but also overseas. In Thailand and other countries, the spread of the exterior seen in
Japanese houses is still underway, so we will create an exterior culture similar to that ofJapan and develop new markets overseas.
In addition, we will work to further expand sales of resilience and security measuresand products and services that solve social issues. SAI-GATE (pictured to the right), which
can automate the management of vehicles entering and leaving factories, warehouses,
construction sites, etc. using AI image recognition, will not only strengthen security, butalso contribute to solving the coming problem in the logistics industry in 2024, as ouroriginal labor-saving solution.

Strengthen sales by taking advantage of highmarket share●High value-added proposals that connect
manufacturers and products

Propose solutions for social issues (utilization of idle land,disaster countermeasures, etc.)●D evelop SDG-related products (solar car ports, timber
products, etc.)●P roduct development aimed at creating livable urban
spaces (installation of parklets*, etc.)●* Resting facilities that utilize road space to create spaces for bustle, relaxation, and lingering

In addition to creating new lifestyles, we will become a business entity that specializes in products thatsolve social and environmental issues

SAI-GATE, an authentication system that authenticates license
plates with a camera and automatically opens gates

29

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Core Businesses

Construction Market Headquarters

Construction Machines Division

We will create new added value by connecting “goods” and “services,” and contribute to sustainable urban development.
Net sales(billions of yen)
��

34.3

Operating profit /Operating profit to net sales ratio
Operating profit

37.2

36.1

33.5

36.5

��

�.�

�.�

�.�

��
�

(billions of yen)
�.�

�.�

��

Operating profit to net sales ratio (%)

0.8

2.5

1.2
0.9

0.9

2.5

2.6

0.8

2.5

3.3

�.�
FY���� FY���� FY���� FY���� FY�����

FY���� FY���� FY���� FY���� FY����* Net sales from FY2021 onward show figures after the application of the revenue recognition standard.

▎Measures in Medium-term Management Plan
Promote sale of high value-added products

Expand sales of construction machinery and tools thatlead to reduced workload and labor saving at worksites●P ropose products that contribute to CO2 reduction(electric work vehicles, etc.)●P ropose solutions to visualize greenhouse gas emissions●D evelop on-site safety products● 

Further expansion of sales partners and sales
opportunities
Propose IoT, ICT, and AI utilization solutions
Expand sales network to rental companies●P ropose productivity improvement solutions using
subsidies●●Main business fields● S ale, leasing and rental of construction machinery and materials,

and manufacture, sale and rental of container houses

Relevant main materiality issues

Support cyclical society (rental)
Support sustainable environment building and town
building
Promote Digital Business

Relevant main markets

Business environment analysis
Strengths

manufacturers, etc.)● C onstruction equipment rental● L ogistics and warehousing● S ervice industry such as event companies

Demand for infrastructure development to respond todisasters, disaster prevention, and mitigation● I oT, ICT and AI utilization at construction sites● I mprovement of working environment (reduced
workload and labor saving)●E xpand efforts to visualize greenhouse gas emissions●Opportunities● C onstruction (construction, road construction, plants, etc.)● M anufacturing (factories, construction machinery/materials

Nationwide network based on rental company
associations (YRA)●U
 sed construction machine sales (YUMAC) business●P re-shipment inspection function for imported products● 

Delays in delivery of construction equipment due toshortage of semiconductors●D emand fluctuations due to decrease in working
population●E ntry of overseas construction equipment
manufacturers●D ecrease in public works
●

Risks

▎Vision and Related Initiatives

By utilizing our procurement and sales network, we will promote “Integrated Product-Service” throughproduct development and the development of new markets

Our ability to develop products and procure products that meet various social needs are our major strengths. For example, in thearea of resilience measures, we developed our original flood prevention package called “TSUNAGU BCP Package” to address disasterprevention and mitigation. In terms of environmental measures, we have developed a system that can visualize CO2 emissions fromheavy construction machinery and equipment, and provide it to construction sites. We are also
CaptureSend
working to develop labor-saving solutions for workload using digital technologies, such as aquantity management system for temporary materials using AI-based image recognition (pictured
Display
Reply
to the right), to improve the working environment at construction sites.
results
In addition, we have concluded an exclusive agency agreement with Spanish construction
equipment manufacturer AUSA in Japan. AUSA’s four-wheel-drive tire-type forklift has excellent
Review/
OutputEdit results
results
maneuverability and mobility, contributing to improved productivity in rough terrain work in thecivil engineering and agricultural fields.
Automatic material counting system that utilizes
Going forward, we will continue to work to solve new social issues by connecting (TSUNAGU)
AI-based image recognition technology
our various solution networks.
P.34

30

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Core Businesses

Energy Division

We will realize a stable supply of energy suitable for a smart and decarbonized society.
Net sales

Operating profit /Operating profit to net sales ratio
Operating profit(billions of yen)(billions of yen)
��

23.4
��

�.�

20.5

18.8

19.1

15.5

0.31

�.�

0.31

0.34

1.3

1.6

�

Relevant main materiality issues

Realize a safe and secure society through service with good
products
Respond to climate change (realize a resilient society)

0.22
1.5

�.�
FY���� FY���� FY���� FY���� FY����● S
 ale of petroleum products

0.28
2.2

�.�

��

�

Operating profit to net sales ratio (%)

Main business fields

1.2

FY���� FY���� FY���� FY���� FY����* Net sales from FY2021 onward show figures after the application of the revenue recognition standard.

Support cyclical society (rental and sharing)

Relevant main markets● G
 as station operation▎Measures in Medium-term Management Plan
Enhanced service through gas stations

Enhanced car maintenance
Expanded installation of EV chargers●E xpanded services to reduce environmental impact, such as
eco-vehicle inspections●P rovision of car leasing●R egional platformization (insurance agency business,
smartphone repair, etc.)
● 

●

● C
 ar rental and used car sales markets● M arine fuel market

Other (Consumer Products & Timber) Divisions

We will propose products that support a sustainable lifestyle.
Net sales

Operating profit /Operating profit to net sales ratio
Operating profit(billions of yen)��(billions of yen)

20.3

20.6

23.1

23.6

��

�

FY���� FY���� FY���� FY���� FY����

�.�

0.19

�.�

0.8

�

cooking appliances, as well as wood products
Create co-creation value–“TSUNAGU”

Realize a safe and secure society through service with good
products

0.27

�.�

● S
 ale of consumer goods such as seasonal appliances andRelevant main materiality issues

�.�

23.8
��

Operating profit to net sales ratio (%)

Main business fields

0.15
0.8

1.3

0.15
0.7

0.10
0.4

FY���� FY���� FY���� FY���� FY����* Net sales from FY2021 onward show figures after the application of the revenue recognition standard.

Respond to climate change (realize a resilient society)Relevant main markets● C onsumer Products: Electronics mass merchandisers, home

improvement centers, and online sales● T imber: Building material wholesalers and building material

manufacturers▎Measures in Medium-term Management Plan

Consumer Products: Increase awareness of Group
company YUASA PRIMUS private brands
Utilization of social media
Promotion of product development based on user opinions

● 
●

Timber: Utilize Group network

In collaboration with Group company YUASA LUMBER, expand
use of timber-based architecture and timber products●T otal support for use of recycled wood (recycled timbermade from scraps during processing) (from collection tocommercialization)●31

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Growth Strategy▎Accelerate Growth through Expansion of Core Businesses and Expansion into New Markets

Our growth strategy aims to further increase company-wide sales leveraging the strengths the YUASA TRADING Group has cultivatedin existing businesses. The strategy comprises six businesses where we will seek to further increase the sales of core businesses andthree businesses where we will expand our strengths into new markets. Moreover, we will work to promote business with a greaterawareness of speed by dividing these businesses into “businesses promoted by whole company” and “target markets and challengeareas promoted on an area or organizational basis.”
Led by the Growing Strategy Division, which engages in promotion of the growth strategy across divisions, we will work to solve
social issues in the market through TSUNAGU innovation, demonstrating the total coordination skills of the YUASA TRADING Group.
Under Growing Together 2026, we will implement measures in each business with a target to increase the ratio of growth strategy
areas in net sales to approximately 48% by FY2025.
■Overview of Growth Strategy
Overseas

Core Businesses
Strategies for expanding
our core businesses

Green (Eco & Energy Solution)
Digital (Robot [AI] & IoT)

SharingAiming for new growth byleveraging our strengths

Long-term Care & Medical
Food Equipment

Agriculture Process

Growing Strategy
Division●Y ES Division

Resilience & Security
New Distribution

New Businesses

Businesses
promoted by whole
company

Growth Strategy
Promotion
SystemTarget markets
and challengeareas promoted
on an area ororganizational
basis

Provides carbon
neutrality support
Provides energy saving
consulting● I ntegrated Engineering

OfficeProvides construction
support●R esilience & Security

OfficePromotes resilience ofsocial infrastructure●N ew Distribution

Business Division

Yutaka Mihara

Executive Officer,
General Manager of Growing Strategy
Division

Promotion of Business Based on a Market Out
Approach to be Growth Strategy Driver

The Growing Strategy Division was launched in 2020 as
the organization to drive horizontal promotion of growthstrategy, including at Group companies. The Growing Strategy
Division is made up of the YES (YUASA Environment Solution)
Division, a dedicated energy saving consulting team, theNew Distribution Business Division, which creates futurebusinesses, the Integrated Engineering Office, a technicalgroup with many personnel with construction-related
qualifications, and the Resilience & Security Office, which
promotes the resilience of social infrastructure.
The Growing Strategy Division with its specialized
knowledge, works across the Group making it possible toprovide new solutions in the nine growth strategy areas
expected to grow as businesses that solve social issues. In
addition, another major roles of the Growing Strategy Division
is nurturing the many new business proposals from employees
every year into businesses.
We will continue striving to further expand business andsolve social issues by proposing solutions that are possible
only by YUASA TRADING Group.

32

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Overseas Business

Brings products and solutions developed in Japan to overseas markets and provides new value.

▎Issues to Be Addressed by the Group

Further growth in demand is expected for industry, urban
development, and infrastructure in emerging countries, but
environmentally conscious development as a social issue also
needs to be addressed.

▎Demonstrating the Group’s Strengths

We will expand our overseas business by leveraging the
procurement capabilities the YUASA TRADING Group has
cultivated for the manufacturing, home building, environmentbuilding, and town building to provide total support.
We will also contribute to the formation of a sustainable
society by promoting businesses that solve social issues suchas carbon neutrality, automation and reduced workloads, andresilience and security.

Topicsedium-term Management Plan Strategy to▎MAccelerate
GrowthUnder “Growing Together 2026,” we have positioned Thailand
to be a priority target for the Group and will strengthen ourinvestments and initiatives there.
In recent years, Thailand has been industrializing at a rapid
pace, increasing its presence as an important manufacturingbase for ASEAN. The Group has already established two
local subsidiaries in the industrial and housing environment
fields and we will newly enter the construction fields (in thearea of construction materials and construction machinery),
integrating all of them to become a “mini-YUASA” similar to
YUASA TRADING in Japan by strengthening its functions as acomprehensive base. This “mini-YUASA” model will also be
horizontally deployed in India to promote overseas businessdevelopment by leveraging our total coordination skills.

Thailand mini-YUASA project and our first overseas Grand Fair

The focus in Thailand will be to develop a “mini-YUASA” with trading company functions
in multiple fields, similar to those of YUASA in Japan. As part of this effort, preparations
are underway to consolidate the bases of the two existing local subsidiaries to establish
a new office aimed at enhancing future functionality. This new office will also serve as ashowroom for our products and will be a space where we can propose convenient andcomfortable lifestyles and a place where people can experience solutions for solvingsocial issues.
We also plan to hold our first overseas “Grand Fair,” which is our largest promotional
event, at the Bangkok International Trade and Exhibition Center (BITEC) in Thailand
in 2025. This will be our first time holding the Grand Fair overseas, and we are making
preparations for the success of this event as the first step in establishing our overseas
promotions.

■ Business Development Image
Home building

Manufacturing
Reducedworkload andlabor saving

Promotion ofcarbon neutrality,
etc.
Environmentbuilding

Leveraging
our Group’s

total
coordination
skillsConvenient andideal living,
etc.

Creation of an
exterior culture,etc.
Town building▎Net sales

Plan

Results(billions of yen)

65.0

29.4

29.8

FY����

FY����

22.0

FY����

FY����

Bangkok International Trade andExhibition Center (BITEC), where
the Grand Fair will take place

33

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Green Business

Provides customers with support for carbon neutrality through one-stop solutions.

For climate change issues such as global warming, there is a
growing need to reduce CO2 emissions throughout the entire
supply chain, including overseas. There is also a growing
need for carbon neutral initiatives for our suppliers involvedin manufacturing, home building, environment building, andtown building.

▎Demonstrating the Group’s Strengths

We have a dedicated energy conservation consulting arm
called YES (YUASA Environment Solution) to support ourbusiness partners in their efforts to be carbon neutral,providing advanced proposals based on our years of expertiseproviding environmental solutions.

Topicsedium-term Management Plan Strategy to▎MAccelerate
Growth▎Net sales

34.0

21.3

FY����

All industries and sectors are now seeking to achieve carbon neutrality, and the Group makes cross-divisional and cross-departmental proposals for this purpose. In addition to proposals for the products in which each division excels, such as high-efficiency manufacturing equipment, we also specialize in implementing air conditioning and renewable energy equipment for all industries in support of carbon neutrality regardless of industry or sector. We also provide
support for equipment installation via subsidies, having a solid record of accomplishment for adopting and introducing such equipment throughout Japan.
We aim to further expand our Green Business activities with our years of expertise in this area.

Open call applications
and selection

Contract and ordering

Delivery andconstruction

Completion report andreceipt of subsidy

25.0

FY����

■Case Study

FY����

 178.2 kW photovoltaic powerA
generation system was installedusing a subsidy from the Ministryof the Environment. The subsidy
covered approximately 20% of theinstallation cost, thus supporting
the introduction of renewableenergy with a low initial cost.

▲■One-stop Solutions Using Subsidies

Explain subsidy specifics
Interviews and site
surveysResults

60.0

We will leverage the advantages of having a broad network
to hold briefings on the introduction of energy-saving
equipment and to communicate information about subsidies,and utilize the YES consulting functions to support business
partners nationwide that are aiming for carbon neutrality.
In addition, we will further promote our current CO2
emissions visualization solution business for customers in
the construction industry by utilizing IT technologies such as
cloud computing and IoT.
We will contribute to solving social issues in terms ofboth goods and services by developing and discovering
environmentally friendly, high value-added commercial
materials and creating new solutions by connecting supplier
manufacturers with superior technologies.

Carbon-neutral proposals for all industries and sectors and the subsidy utilization

In addition to our rich selection of products and engineeringfunctions, we support our business partners in energy
conservation and carbon neutral efforts by providing
one-stop solutions that cover the proposal and selectionof the most appropriate subsidies, through to open callapplications for those subsidies.

Plan(billions of yen)▲

▎Issues to Be Addressed by the GroupFY����


Throughthe Industrial Equipment& Tools Division, we proposed
and installed a photovoltaic
power generation system on therooftop of a nursing home. We
are promoting carbon neutrality
among our business partners
regardless of division.

34

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Digital Business

Provides support to solve workplace issues through the promotion of robotics AI, and IoT.

▎Issues to Be Addressed by the Group

Working population decline due to demographic changes is
an issue common to Japan and other developed countries,
especially in terms of manufacturing and construction, which
requires improved productivity more than ever before.

▎Demonstrating the Group’s Strengths

We aim to solve social issues and achieve sustainable
development by leveraging our strength of having an AI
consulting company (connectome.design inc.) in the Groupfor introducing digital technologies such as robots, AI, and
IoT, and by utilizing our extensive business partner network of
6,000 major suppliers and 20,000 major sales partners in orderto achieve sustainable development.

edium-term Management Plan Strategy to▎MAccelerate
GrowthWe will strengthen our development of high value-added
products and services by promoting reduced workload
and labor saving that will help eliminate labor shortages atconstruction and manufacturing sites.
Under the banner of “enhanced productivity throughdigital technologies,” we are also developing and providing
new solutions that are both operationally efficient and precise,such as an AI contamination inspection device for beverages
and an autonomous robot that can sense wet concretesurfaces at construction sites. Such efforts for TSUNAGU
connections throughout the Group for all our products andnetworks will expand proposals and sales opportunities.

▎Net sales

Results

40.0

11.6

11.7

FY����

FY����

7.4

FY����

TopicsPlan(billions of yen)

FY����

AI-based image recognition for a scaffolding parts counting and management system■Social Issues and Market Needs
For scaffolding rental companies and at construction sites,
workers manually sort and count parts by hand, which is timeconsuming and labor-intensive; this results in a low turnover rate
for rentals as well as losses due to miscounting.
This counting system uses AI-based image recognition
technology to automatic quantities. Automating visual checks
using this system significantly reduces workloads, contributing
to onsite labor and staffing savings.

Count：50

Capture images ofmaterials using asmartphone

AI-based image recognition
automatically counts quantities

Video introducing image recognition quantity
management system for scaffolding parts
https://youtu.be/g3EfiURqO1s■YUASA TRADING’s RoleThe counting management system was developed together withconnectome.design, an AI solutions provider. YUASA TRADING
was involved in the development of this solution to help solve
issues faced by our customers such as construction sites andrental material companies and is one of the examples of TSUNAGU
innovation that addresses the needs of our business partners.

■Future Developments
By further deepening image recognition training, we will increase
the number of recognizable patterns and support labor-saving andimprovements in efficiency using a quantity control system applicablein various situations, including the 2024 logistics industry problem.

35

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Special Feature:

Green Business Initiatives

We seek mechanisms that lead to solutions for social issues through new product development and market development.

Development of Gatepost
with V2H Equipment andDelivery Box

A V2H* system enables electricity stored in electric vehicles(EVs) to be effectively utilized in the home. V2H equipment
has many advantages including a short charging time aswell as allowing savings on electricity charges and large
capacity storage. However, the equipment gives an artificial
feel when installed as is on the exterior of a home. Therefore,
incorporating V2H equipment into gateposts (with integrated
mail box, home delivery box, and nameplate light) with a woodgrain design allowed it to blend in with the surroundings.
This product makes a significant contribution to carbon
neutrality on two fronts: reducing redeliveries with a homedelivery box and storing/utilizing solar energy through the V2Hequipment. We explored how Gatepost with V2H Equipment
and Delivery Box was developed in an interview with thethree companies involved in the development: NICHICONCORPORATION, TAKASHO CO., LTD., and YUASA TRADING CO.,LTD.

▎環境意識の高まりを追い風に市場を開拓

We value the uniqueness created byadding innovation.

(Iwasaki, YUASA TRADING)

eveloping a Market Driven by Rising▎DEnvironmental
Awareness■ Iwasaki (YUASA TRADING): The Smart Energy Division,

Mr. Hiroshi Suzuki
Group Leader,
Product Design Group 3
TAKASHO CO., LTD.

*V2H: An acronym of Vehicle to HomeMr. Hideaki Ishikawa

Manager, Sales Section of Charging System Sales Department,
Tokyo Sales Office
NICHICON CORPORATION

Takeru Iwasaki

Smart Energy Division
YUASA TRADING CO., LTD.

which I belong to, originally handled solar power generation andstorage batteries. NICHICON was the first company in the world todevelop and mass produce V2H equipment. The development of
this particular product began when we asked them whether we
could expand the equipment into new markets.
■ Ishikawa (NICHICON): Our development of stand-alone
V2H equipment was triggered by electricity supply shortages
due to the Great East Japan Earthquake in 2011. There wereplanned power outages, and as it was around the time when
EVs were starting to appear, automobile manufacturers asked
us whether the electricity from EVs could be used elsewhere,
which led us to develop V2H equipment. In 2012, we produced
and launched the world’s first commercially-available product.
At present, there is daily media coverage of topics related to36

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation
Growth Strategy

Special Feature: Green Business Initiatives
creation of this product owes to the connections made by YUASATRADING. It was truly an idea we would never have thought of.

ew Products From Encounters with Different▎NIndustries

It was truly an idea we would never havethought of.

(Ishikawa, NICHICON)the environment and energy, such as solar power generation,
storage batteries, and EVs. Environmental awareness isdefinitely rising, and I think that products combined withvarious devices such as gateposts with home delivery boxes andintegrated V2H equipment will also draw more attention.
However, we had never thought about this kind ofcomposite product until we heard from YUASA TRADING. We had
never worked with a manufacturer like TAKASHO before, so the■ Iwasaki (YUASA TRADING): TAKASHO had a longstanding
relationship with the Building Material Supplies Division of
YUASA TRADING. Functional products such as solar power
generation and storage batteries give a rather artificial feel
when installed in front of a home. We consulted with TAKASHO
to see if we could create a design with more warmth.
■ Suzuki (TAKASHO): Our company originally began inlandscaping, handling products such as bamboo fences, so
our motto is creating gardens, exteriors, and products that
help people spend time in the garden. Functional products
such as V2H equipment were outside the scope of ourexpertise, but we have a decorative building material range(Ever Art Board) that comes in 88 colors to meet the needs ofcustomers as much as possible. I think we managed to help
the V2H equipment for this product blend into the exterior by
carefully selecting the colors to be used from this range andmatching the design to create harmony with greenery.
■ Ishikawa (NICHICON): We are complete amateurs in
relation to design. This collaboration with TAKASHO mademe aware of the importance of design.

■Contributing to Social Issues through Gateposts with Home Delivery Boxes and Integrated V2H Equipment
Social Issues to be Addressed●● esponding to climate change and theRassociated structural changes in energy
demand and supply (proliferation of EVs) reparing for natural disasters such as
Pearthquakes to increase social resilience

YUASA TRADING’s TSUNAGU Innovation●●

 roduct development connecting aPpower storage manufacturer (NICHICON)
with an exterior products manufacturer(TAKASHO) oordination of design and sale asCa package based on the TSUNAGU
perspective

Value Provided to Society●● practical exterior that leads to utilizationAof the electricity stored in EVs andpromotion of decarbonization
 he ability to ensure electricity forT
personal use in a disaster

SUNAGU Perspective Translated into High▎TValue
Added■ Iwasaki (YUASA TRADING): I think that other factors behindthe creation of this new product are the increase in contactlessdeliveries due to logistics issues and the COVID-19 pandemic,
as well as an increase in demand for the remodeling of areas
due to spending more time at home, including working fromhome. TAKASHO initially had a gatepost with a home delivery
box as a product, so we thought it would be functional if we
integrated all of these aspects.
We experienced success in making our ideas into reality bycollaborating with two highly specialized manufacturers. Looking
at the flow of goods only, the connections we made consist of
simply introducing products manufactured by manufacturers
to others. However, we are always conscious of the TSUNAGU
perspective, including people, goods, and technology, which is
the YUASA TRADING value added, and we value the uniquenesscreated by adding one more innovation to our value added.

I hope we managed to help make a designin harmony with greenery.

(Suzuki, TAKASHO)37

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Resilience & Security BusinessConnects security technology and BCP know-how to maintain safety and security while continuing business.

▎Issues to Be Addressed by the Group

Business continuity is becoming an issue in terms of newsocial challenges such as more severe natural disasters and
COVID-19.

▎Demonstrating the Group’s Strengths

To cope with increasingly severe natural disasters, the Grouphas been proposing combined products and functions. Using
the expertise we have cultivated over the years and under thelead of the cross-company Resilience & Security Office, we canmake proposals aimed at realizing a safe and secure society.

▎▎Net sales edium-term Management Plan Strategy toM
Accelerate Growth

We will work to solve societal issues from the key perspectivesof disaster prevention, disaster mitigation and business
continuity plans (BCP).
●F urther expand disaster stockpile warehouses●D evelop/deploy earthquake and flood countermeasures withTSUNAGU innovation●F urther expand sales of security commodities

28.3

30.8

Plan
Results(billions of yen)

21.5

FY����

AwardsRISK SAVER, our supply chain visualization system, received theAward for Excellence at the 9th Japan Resilience Awards, sponsoredby the Association for Resilience Japan.

35.0

FY����

FY����

FY����

P.43

New Distribution Business

Expanding our electronic trading business (Growing Navi) together with business partners.

▎Issues to Be Addressed by the GroupThe e-commerce market is growing annually as thedigitalization of business continues to evolve, factories andconstruction companies are increasingly going online forquicker procurement of materials and parts.

▎Demonstrating the Group’s Strengths

Since the late 1980s, we have been developing a VAN* systemlinked to our suppliers to automate inventory searches andordering. That knowledge has been utilized in our current
Growing Navi site. We have also expanded our logistics
functions to enhance the convenience of online purchasing.
* VAN: Value-added network

edium-term Management Plan Strategy to▎MAccelerate
Growth▎Net sales

We are aiming to expand our e-commerce business byconnecting our information platforms with business partners.
●E nhanced functionality of the Growing Navi site

13.8

Growing Navi
https://www.growingnavi.com/

FY����

25.0

16.1

FY����

17.7

FY����

FY����

Plan
Results(billions of yen)

38

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Sharing Business

Aims to carry out sustainable economic activities in response to various market needs.

▎Issues to Be Addressed by the Group

With an increasing number of consumers that are concernedwith the global environment, social contribution and othersustainability matters, there has been a shift from ownershipto sharing in various areas.

▎Demonstrating the Group’s Strengths

We promote the effective use of rental assets by maximizing
the functions of our Group company, YUASA MACROS CO.,LTD., which has one of the industry’s largest networks andan abundant product lineup. YUASA MACROS businessactivities include unit house rentals and event production andmanagement.

▎ edium-term Management Plan Strategy toM
Accelerate Growth

We offer a wide-ranging product lineup aligned with market needs
for construction sites, various events, and the rental business.
●P ropose new space concepts for the event market● Expand the rental business in terms of areas and scale● Expand areas for targeting “Kariru Net,” an online business forindustry and daily life
“Kariru Net,” an online rental businessfor industry and daily life

“Kariru Net”
https://www.karirunet.com/

Long-term Care & Medical Business▎Net sales

1.5

FY����

Plan

10.0

1.7

FY����

Results(billions of yen)

1.9

FY����

FY����

New Businesses

Proposes both hard and soft solutions for comfortable living in an aging society.

▎Issues to Be Addressed by the GroupThe long-term care and medical sectors are faced with various
social issues such as an aging society, labor shortages, anddisruption of services from infectious disease. The recent risein electricity prices has also taken a toll.

▎Demonstrating the Group’s Strengths

Making use of our experience with service robots and digitaltechnologies and utilizing the expertise we have developed forcarbon neutrality in our existing businesses, we are taking on
the challenge of addressing social issues in terms of increased
productivity and labor savings, energy conservation, andrenewable energy.

edium-term Management Plan Strategy to▎MAccelerate
GrowthWe combine the total coordination skills of the Group toprovide support for long-term care and medical facilities.
● Update equipment using subsidies and provide one-stop
solutions for implementing renewable energy● Pioneer new products for the longterm care and medical sectors● Promote implementation of projects
to install remote, pre-fabricated ICU
wards
Fuji Quality House (container house) delivered andset up as a ward in 2022 (Republic of Palau)▎Net sales

Plan

25.0

6.8

6.8

FY����

FY����

5.8

FY����

FY����

Results(billions of yen)

39

YUASA INTEGRATED REPORT 2023

Business Strategy for Realizing Business Transformation

Growth Strategy

Food Equipment Business

New Businesses

Promotes complete proposals for optimal facilities and equipment at food factories.

▎Issues to Be Addressed by the GroupThe food manufacturing process has many steps that require
human labor, so a major issue for the industry has been slow
progress in improving the efficiency because of a lack ofhuman resources as well as production losses, etc.

▎Demonstrating the Group’s Strengths

YUASA TRADING has a specialized team that handles foodmachinery. The team solves on-site issues by developing andproposing devices to realize smart food factories that are safeand productive, with few losses.

▎

 edium-term Management Plan Strategy toM
Accelerate Growth

We will strive to further expand sales by leveraging our
total coordination skills that address not only machineryand equipment for food factories, but also utilities and air
conditioning equipment.
● Develop original equipment through TSUNAGU innovation suchas the use of AI technology● Propose custom products according to on-site demands● Expand sales of sanitation and safety equipment
AI contaminant inspection device forbeverages
FaiND OUT 2 (AI-based contamination
inspection device)

Agriculture Process Business▎Net sales

Plan

16.0

3.5
2.7

FY����

FY����

Results(billions of yen)

2.9

FY����

FY����

Video introduction for FaiND OUT 2
https://youtu.be/bzAe25HOoj0

New Businesses

Solves problems for producers and proposes next-generation profitable agriculture.

▎Issues to Be Addressed by the GroupThe agricultural sector has been faced with the problem of areduced working population due to aging. Moreover, sudden
price jumps for production resources is exerting pressure on
many farming operations.

▎Demonstrating the Group’s Strengths

We have developed many examples of original agriculturalrelated equipment by leveraging our strong network ofsuppliers in a wide variety of fields. We also handle a wide
variety of agricultural equipment, so we can also put forward
proposals that meet our customers’ needs.

edium-term Management Plan Strategy to▎MAccelerate
GrowthWe propose next-generation profitable agriculture that aims to
reduce farmer burdens and realize efficient agriculture.
● Develop and propose robots and machinery that support smart
agriculture● Expand the use of used agricultural machinery auctions byleveraging our expertise in used construction machinery● Expand the use of TSUNAGU solutioncommodities
We are developing Appenki, our original machine that canstably mix feed for dairy farming using domestically available
raw materials rather than using the current standard ofimported feed. Appenki is small enough that even small-scale
dairy farmers can easily use it in their operations.

▎Net sales

Plan

10.0

1.9

1.9

FY����

FY����

2.1

FY����

FY����

Results(billions of yen)

40

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

DX Promotion

The shift from Single Item Business to Integrated Product-Service.
We aim to realize a sales strategy with a■Overview of Our DX Promotion
market out approach utilizing data.

Digital Talent Cultivation

Defensive/Intermediate DX
Organizing,
operational
improvement

Kaoru Hirose

Senior Executive Officer, Chief Digital Officer,
ESG Promotion Officer

of DX Promotion and its Place in▎ImportanceBusiness Model Transformation

We believe DX promotion is vital for the business modeltransformation the YUASA TRADING Group is aiming to realize inthe shift from single item business to integrated product-service.
Integrated product-service business means that we aggregate
and analyze customer and market issues, needs, information, anddata to provide TSUNAGU solutions, which combine products,
services, and technology, and solve social issues.
In addition, there is an urgent need to reduce operating costs
using IT technologies in the core businesses. We would also liketo implement measures that can provide useful information
using data analysis to YUASA Yamazumi Shareholding Association
and YUASA TANKYOKAI.
Due to the nature of its business as a trading company,
YUASA TRADING already has in place mechanisms for collecting
information from manufacturers and markets. Utilizing DX, wehope to convert this information and YUASA TRADING’s uniqueinformation into data and anticipate rapidly-changing market
needs to realize a sales strategy with a market out approach thatsolves social issues through new mechanisms and solutions.

Processtransformation

Business modeltransformation

Offensive DX

Operational
streamlining

Promote data
accumulation andutilization

Core businesses
expansion

The Future After Digital Talent Cultivation■︎Analyst talentService expansion

New business creation
The shift from Single
Item Business to
Integrated
Product-Service

To promote DX, we provide grade-specific training for
all employees to develop digital talent in addition to
support for Growing Together 2026 (the Medium-termManagement Plan), we are enhancing corporate value
through the creation of a new business model.

Utilize data

・Talent that analyzes
data combining internaland external data,and proposes analysis
results and hypotheses
to management, eachbusiness domain, andDX talentManagement

￥

Data

▎Current Issues and Development

The current issue within the Group is that information is dispersed
and master data management is not in place. This decentralizationof information is because there are too many different,
independent systems.
With the renewal of the core system scheduled for May
2025, we will aim to centralize management of information andstrengthen the Group’s management foundations.
With regards to master data management, which will become
more important with the renewal of the core system, we will assign
specialist personnel as well as addressing operational aspects.
In addition, we launched training for all employees in FY2023
to develop digital talent in parallel with strengthening digital
governance.

Analysis departments

Staff■ ︎IT talent・Talent that utilizes IT tools
and digital technologies toimplement streamlining
and digital measures

Divisions■ ︎DX talent・Talent that utilizes data
analysis results to promoteplanning and proposal
activities

We have positioned FY2023 as our digital “dawn” in orderto realize a digital “age of stability” from FY2026 onward.
We are aiming to produce 100 talented IT personnel, in
addition to providing IT basic training for the acquisition ofbasic IT knowledge, and training for DX and analyst talent.

41

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Environment

We will contribute to realizing a sustainable society both in our Group and in our business based on harmony with the global environment.

▎Approach to the Environment

Code of Conduct (excerpt)
The YUASA TRADING Group strives to meet the social needs ofdiverse consumers while providing safe and useful products
and services, giving adequate consideration to product liability,
resource and energy saving, and environmental problems
and conservation. We also give due consideration to social
responsibility in our handling of products and services.

Environmental Policy
All people who work at the YUASA TRADING Group take positiveand independent action and contribute widely to society
based on the Environmental Policy to realize sustainable
development which aims for harmony between the soundmaintenance of the environment and economic growth.

which consist of managing environmental hazards such as
reducing power consumption, waste emissions, and vehicle
fuel consumption, as well as managing environmental
benefits, such as selling environmentally-friendly, energysaving products. Led by the President, the Group makes
concerted efforts to promote its business activities as“environmentally-friendly YUASA.”
Environmental Management
https://www.yuasa.co.jp/csr/environment/activity1.html■Environmental Management Promotion System
Top management

Environmental Policy
https://www.yuasa.co.jp/en/sustainability/environment/
management/

Person responsible
for environmental
management
Internal auditing
team

Environmental
Management
Executive Office▎Environmental Management Promotion System
Environmental Management
Based on the YUASA TRADING Group Environmental Policy,
we are working to reduce the environmental burden of ourorganizational activities, products, and services to improveGroup-wide environmental performance using ISO 14001 to
implement continuous improvement activities based on thePlan-Do-Check-Act (PDCA) cycle.
The Group’s environmental activities focus on two areas,

Environmental
Management
Committee

Waste and Energy
Saving Committee

Environmental Conservation Activities
in Malaysia

In Malaysia, where our trading relationships in machine
tools and timber span over 50 years, we are implementing
environmental conservation activities in partnership with
the Japan Malaysia Association with the aim of regenerating
and protecting the country’s tropical rainforests. In FY2022,
we planted about 1,000
mangrove trees grown fromseedlings and maintained
the planted trees.
Students from Universiti Sains Malaysia
and local people planting trees

We also implemented an environmental education
program for students in the surrounding area to learn
about the need for conservation of mangrove forests. In
FY2022, we held a painting competition for elementary
school students of all grades at the activity site to draw the
mangrove forest ecosystem making use of TSUNAGU, theslogan of the YUASA TRADING Group.

EnvironmentallyFriendly Products
Committee

YUASA TRADINGGroup companies

Divisions and sites

Environmental
Management
Committee members

Environmental
Management
Committee members

TopicsSome of the paintings and outstanding students from each grade

42

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Environment▎Disclosure Based on TCFD Recommendations

The YUASA TRADING Group declared support for therecommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD) in March 2022, and we havecalculated CO2 emissions and identified risks and opportunities.
In June 2023, we decided to disclose information based on
TCFD following approval by the Board of Directors.

Governance and Risk Management
Viewing risks, opportunities, and impacts relating to climatechange as important issues to do with business strategy andsustainability, the Board of Directors deliberates on these issues
and decides on related strategies, etc. In October 2021, weestablished the Sustainability Promotion Committee chaired by
the Representative Director in order to discuss about importantsustainability issues, including climate change, and inquire andprovide advice to the Board of Directors.
The Sustainability Promotion Committee evaluates risk
management for sustainability overall, including climate change,
and reports on the status of risk management to the Board of
Directors as necessary in cooperation with the person who has
overall responsibility for risk management. P.23

Strategy
As a Service Integrated Shosha Group focused on the four key
areas of manufacturing, home building, environment building,and town building, we handle a diverse range of products andservices, and as a result the impacts of climate change and therelated changes in the business environment present us withboth risks and opportunities.
< Risks and Opportunities of Climate Change >In FY2022, we identified the risks and opportunities of climatechange considered to be important. We are conducting
discussions with representatives from business divisions andstaff in charge of promoting sustainability in administrative
departments. With regard to those businesses and fields thatwill be affected, besides making appropriate changes and■Risks and Opportunities of Climate Change
Categories

Policy andlegal
Transition
risks

Technology
Market andreputation

Physical risks

●
●
●

Acute

●

Chronic●

Products
and services
MarketCost increases due to strengthening of environmental
regulations for products●●

Opportunities

Main content

Cost increases caused by government regulations,such as introduction of carbon tax

●

●
●

●

Decrease in demand for existing products due to low
carbon technology

Cost increases due to soaring prices of raw materials,
etc. and rising energy prices due to decarbonization

Decline in external reputation and lower supply chain
competitiveness due to delays in taking action andinadequate information disclosure
Disruption of Group sites and the supply chain due tolarge-scale natural disasters
Stagnation of production activities due to water andpower shortages
Expansion in demand for products with high energy
efficiency
Expansion in demand for products related toresilience

Expansion in demand for products related to resource
recycling
Expansion in demand for renewable energy

implementing risk management, we are also working proactively
to exploit business opportunities during the transition period thatarise from changes in government policies, regulations and themarket environment, with the aim of realizing sustainable growth.
< Strengthening Initiatives to Seize Opportunities >In 2009, the Group established a dedicated energy saving
consulting team. In addition to providing support for the
introduction of energy-saving equipment and renewable energy
at suppliers’ manufacturing plants, the team promoted proposal
and sale of energy-saving and decarbonization-related products
to reduce CO2 emissions during product use by buyers and theircustomers. At present, we are strengthening initiatives related
to energy saving and decarbonization for overseas markets.
To contribute to reducing environmental impact right aroundthe world, we are holding seminars on carbon neutrality andpromoting energy-saving proposals utilizing the Joint Crediting
Mechanism (JCM).
We are also developing the Resilience & Security Businessto address the physical risks of climate change, which include

intensifying natural disasters. Besides working to promote
products and services that lead to the resilience of social
infrastructure based on the keywords of disaster prevention andmitigation and BCP, we are developing new solutions to tackle
social issues, such as increasingly severe natural disasters andinfectious diseases.

Indicators and Targets
Besides aiming to make the YUASA TRADING Group as a wholecarbon neutral by FY2030, we will also be striving to reduce theenvironmental burden throughout the supply chain. As the firststep toward making the Group carbon neutral, we are aiming
for a 30% reduction in CO2 emissions compared with the fiscal
year ended March 31, 2023, by the fiscal year ending March 31,
2026, the final year of the Medium-term Management Plan.
Starting from FY2022, we have been calculating CO2
emissions for each Group company, both domestic andoverseas, and we have begun implementing various measures
aimed at reducing emissions. Furthermore, in order to drive a
reduction in overall emissions in the entire supply chain throughour business, we have also been calculating Scope 3 emissions.
■︎YUASA TRADING Group’s CO2 emissions (FY2022)

Unit: t-CO2

Scope 1&2

Non-consolidated*1

Group companies*1
3,020

4,045

Scope 2

1,232

1,405

2,637

Scope 1&2

2,257

4,425

6,682

Scope 1

1,025

Total

*1 Non-consolidated includes YUASA TRADING CO., LTD. only. The Group companies include subsidiaries
and associates (except for those companies not accounted for using the equity method).

Unit: t-CO2

Scope 3Distribution-related emissions*2
Data center-related emissions*3

YUASA TRADING CO., LTD.
(non-consolidated)
500

139

*2 Calculated based on the power and fuel consumption of the main warehouses to which the company
outsources distribution operations.
*3 Calculated based on the power consumption at data centers to which the company outsources
operations.

43

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Environment▎Initiatives to Achieve Carbon Neutrality

Holding Overseas Seminars on Carbon Neutrality
As a global trend toward achieving carbon neutrality, reductions
in CO2 emissions are required throughout the supply chain,including outside Japan. Besides Thailand and Vietnam,
where we have been promoting energy-saving projects forsome time, we also held seminars in Indonesia, Mexico, thePhilippines, and Malaysia, where we conduct business, to gain
the understanding of methods for reducing CO2 emissions,
including utilization of the Joint Crediting Mechanism (JCM), aninternational framework for achieving reductions.
The YUASA TRADING Group has been striving to improve
the global environment by conducting initiatives that utilize theJCM system, which contributes to the reduction of greenhousegases in developing countries. In addition to using the seminars
as an opportunity for promoting the overseas expansion of
our environmentally-friendly businesses more strongly, we willcontribute to both economic development and environmental
conservation in the partner developing countries through ourJCM project structuring services.

Obtaining Certification under the J-Credit System(YUASA LUMBER CO., LTD.)
Our Group company, YUASA LUMBER CO., LTD., owns
approximately 100 hectares of forests in Hokkaido and has
managed renewable forest resources in cooperation with local
people. Appropriate maintenance (tree thinning and planting)encourages the growth of forests and increases absorption of
the CO2 in the atmosphere. YUASA LUMBER has developed a“forest management activity project” to quantitatively evaluate
CO2 absorption in its past and future maintenance, and it
has received certification under the Japanese government’s
J-Credit System* for the tree thinning and planting practiced insome of the forests it owns. In FY2022, emission reductions are
expected to be approximately 100 tons, and total absorption is
expected to be approximately 2,800 tons by FY2037.
Going forward, YUASA LUMBER will collaborate with local
government, universities, research organizations, and othergroups in efforts to utilize the unused timber created by tree
thinning, including the thin timber from tree thinning thatcannot be used for lumber manufacturing and branches.

* Reductions of CO2 and other emissions through the introduction of energy-saving equipment and useof renewable energy or absorption of CO2, etc. through appropriate forest management

Seminars already held in six countries(Thailand, Indonesia, the Philippines,
Vietnam, Malaysia, and Mexico)

A seminar on carbon neutrality in Thailand■Diagram Outlining the JCM System (Joint Crediting Mechanism)Japan

Diﬀusion of advanced decarbonizing
technologies, etc., and implementationof mitigation actions

Operation and managementby the Joint Credit Committee
which consists of representatives
from both sides
Credits are used toachieve Japan's emission
reductions target

CreditJCM

JCM

Partner countries
JCM projectMeasurement/
Reporting/Veriﬁcation

GHG emission
reductions/Removals▎Initiatives to Increase Resilience

Developing “RISK SAVER” Supply Chain Risk
Visualization System
Over the past few years, supply chain risks have occurred inquick succession, including unforeseen natural disasters, thespread of infectious disease, shortages of semiconductors,
and human rights problems. In order to identify these risks
and achieve a rapid response when they occur, our Group
company YUASA SYSTEM SOLUTIONS Co., Ltd. and JX PRESSCORPORATION jointly developed “RISK SAVER,” a supply chain
risk visualization system.
RISK SAVER is Japan’s first system with the ability to identify
supply chain risks in real time. The system automatically
picks up on supply chain risks by using AI to monitor online
risk information, such as information on natural disasters
disseminated through social media and news reports, and links it
to a company’s own supply chain information. It instantly displays
information that includes the kind of work assigned to a supplieraffected by a disaster and specific alternative production sites.
This enables preparation for calmly continuing production
even in a highly-charged disaster situation, providing support
for promotion of sustainable procurement.
Online risk information

Natural disasters
and accidents
Terrorism, etc.

The company-owned forest in Hokkaido that tree thinning was conducted for forest
restoration

Access andidentify
information
using AI

Risk assessment
function

Risk information
database

Customer supply chain information
Which components
to order fromwhich suppliers

Supply chain information
database

Alert
notiﬁcation function

Alternative
proposal function

RISK SAVER introductory video
https://www.youtube.com/watch?v=nRaWpkaKS2c

44

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society

In order to contribute to a sustainable society, we will promote reform of corporate culture centered on management that regard for the individual and build a culture that
normalizes innovation.

eforming Corporate Culture to Strengthen▎RHumanResource Capabilities

Code of Conduct (excerpt)
The YUASA TRADING Group will create prosperity andcomfort for the people working at the Group and ensure asafe environment with ease of employee work in addition
to realizing a corporate culture that gives maximum respect
to personality and individuality and enables employees toexercise free and open-minded creativity.

Overview of the Corporate Culture Reform
Regarding its employees as human resources (human talent),
the equivalent of capital, The YUASA TRADING Group pursues
entrepreneurial spirit and revolutionary ideas and focuses on
shaping the workplace environment based on the organization
and rules founded on concepts of mutual trust and a mindsetof collaboration.
In order to promote the “Total Coordination Skills,”“Challenging Spirit,” and “Communication,” which are the
keywords, there are now various systems already in place outof which new solutions for social issues are created.
We have launched the YUASA PRIDE Project, an allemployee participation-based personnel reform project withthe commitment of top management and led by the Human
Resources Department to attain further evolution over the three
years to FY2025, which is the harvest stage for the achievementof YUASA VISION 360.
We will increase
employee work
satisfaction and ease of
employee work throughthis project.
YUASA PRIDE Project workshop

Objective of Corporate Culture Reform
We will foster a culture which normalizes TSUNAGU innovation through personnel reforms, developing the working environment,
and strengthening governance.
Connection to the Medium-term Management Plan
By normalizing TSUNAGU innovation, we will accelerate business transformation with the aim of solving social issues.
■Overall Picture of Corporate Culture Reform

Accelerate business transformation
Create a culture that normalizes
TSUNAGU innovation
Increase employee
engagement
Increase employee
work satisfaction
・Talent cultivation
・Reform of various
personnel systems

Increase employee
ease of work
・Diversity
・Workstyle reform

Develop an environment that can maximize
TSUNAGU innovation

Governance, compliance, and risk management(the base of corporate culture)

Personnel reforms
YUASA PRIDE ProjectP.��

Develop the working
environmentP.��

Strengthen
governance
P.��

45

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Personnel Reforms “YUASA PRIDE Project”

Objective of Personnel Reforms
In order to accelerate business transformation, we will increase employee engagement and strive to develop human talent with theability to solve social issues through TSUNAGU innovation. As one of the initiatives for achieving this, we have launched the “YUASAPRIDE Project,” an all-employee participation-based personnel reform project to improve employee work satisfaction and ease ofwork. Under the project, we will consider new personnel systems and promote talent cultivation.
■︎Overall Picture of Personnel Reform
Corporate Philosophy
Becoming a TSUNAGU Service
Integrated Shosha Group● Achievement of YUASA VISION ���●

Proﬁle of the people we are seeking●

Accelerate business
transformation

Project to regard
for the individual

Promotion of diversity● Workstyle reform●

Solve social issues through
TSUNAGU innovation
Increase employee engagement

YUASA PRIDE Project

Generalmanagers
and above

Strategic thinking/business creation

Managers

Leadership

Assistantmanagers

Marketing

Supervisors

Accounting

Staﬀ

Logical thinking (business school)

Prospective
employees

Bookkeeping distance learning/
TOEIC examinations/Excel

Training to develop Business school Headquarters
global humanplacement
andresources
training
division training

Product knowledge/
manufacturer placement training/industry knowledge

Talent cultivation
Reform of various personnel
systems

YUASA BUSINESS SCHOOLBusiness school placement training

Project to increase
work satisfaction■Training System Diagram

Language training in Japan●

Human resources with the ability to solve
management issues of our business
partners

Basic Philosophy
The Group considers the training of management human resources
to be an important part of talent cultivation. Based on this, we willrevise our training system with management beings defined as“organizational management,” “business creation,” and “solving themanagement issues of business partners.”
More specifically, we will offer management skills training,
including business school and support for obtaining qualifications,professional skills training, including headquarters training andsupport for obtaining industry qualifications, digital skills training,
including digital transformation (DX) training, and global skills training,
including an overseas training system and language training.

Overseas training system●

With a challenging spirit, we strive foropen communication between members
inside and outside the division to exercise
the total coordination skills of the YUASATRADING Group that transcend the area of
our own organization.
● With gratitude for our predecessors
based on our understanding of morethan ��� years of tradition, we create newvalue to pass on to the next generation
through constant innovation.
●

YUASA VISIONYUASA Values▎Talent Cultivation<Cultivation of Human Talent to Be Strengthened from April
2023 Onward >・Enhancement of management skills
First, we will provide management skills training usingbusiness schools for all managers, which will be extended to
mid-level and general employees.
・Cultivation of global human talent・Cultivation of digital transformation (DX) human talent P.40

46

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Personnel System

Basic Philosophy
The Group aims to develop a personnel system that candemonstrate the “Total Coordination Skills,” “Challenging
Spirit,” and “Communication,” which are the keywords.
Moreover, we consider the training of management humanresources to be an important part of human talent cultivation.
To this end, we have launched the all-employee
participation-based YUASA PRIDE Project, and we will establish
a variety of personnel systems through the project.
Through the project, we will also consider “revision of
the seniority system,” “performance-based systems that areappropriate for YUASA TRADING,” and “realizing diversity” andmake necessary reforms to our various personnel systems.
Challenge Evaluation System< Points for Contributions from Other Departments >This is a system which adds points in HR evaluations basedon the results of contributions from other departments forthe purpose of fostering a corporate culture with active crossdepartmental and Group-wide contributions.
Incentive points called “Thanks Point” are added not
only for employees who have made contributions to otherdepartments but also to employees who have requested
incentive points for their cooperation.
■Points for Contributions from Other Departments
Mastery points
Success points
Incentive points

Points are added for internally announcing (registering)areas of expertise

Points are added for success based on cross-departmental
cooperation
Points are added for cross-departmental contributions< Challenge Career Points >This is a system that adds points in HR evaluations for
employees who have selected their own career in order tofoster a culture of taking on challenges in new areas.
■Challenge Career System
Internal FA system

System for employees to submit requests for voluntarytransfers across headquarters

Career pass system

A system in which the company transfers high achievers
across headquarters

Internal recruiting
systemOverseas assignment
system

A system in which the company publishes open positions,and employees who want to be assigned apply for them

A system for employees to request an overseas transfer< New Business Proposal Points >Employees who have made a new business proposal receive
points on their HR evaluations to provide motivation for new
business proposals from employees.
Applications are open to all Group employees in the
categories of “new business,” “new function,” and “new product”
and “new market.” Employees whose proposals advance tothe final selection are given the opportunity to present their
proposals to the company’s board members.

TopicsHolding round table meetings with the
President

Since 2017, we have been holding round table meetings
with the President for face-to-face, direct communicationby the President with the employees at each site, including
the Group companies, with the aim of deepening mutual
understanding and fostering an open corporate culture
through direct dialogue with representatives. In FY2023,
round table meetings are planned for all sites and all Group
companies in Japan.
The round table meetings with the President, whichenable the President and employees to act toward thesame purpose through direct dialogue, are positioned as animportant initiative for stimulating communication, which
is one of the Group’s keywords, and we will continue to holdthem in the future.

■Number of Proposals in the New Business Proposal System
FY201960

FY202151

FY2020
FY2022

70
57

Approximately half of the 57 proposals in FY2022 were in the“new business” category. Some of these proposals are being
considered for concrete commercialization.

Presentations for the new business proposal system

A round table meeting with the President with the employees at the Group
company, NAKAGAWA KINZOKU CO., LTD.

< YUASA Labor Union >YUASA TRADING and the YUASA Labor Union stand on an
equal footing with each other and have entered into a labor
agreement based on impartial understanding and trust.
The aim is to promote sound corporate development andimprovement of the working conditions and environment of
employees.

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Diversity

Basic Philosophy
Based on a spirit of “Regard for the Individual” the YUASATRADING Group has respect for the individuality and rightsof employees, and we have continued to engage in businessactivities while putting value on entrepreneurship andinnovative ideas.
Henceforth, employees with more diverse backgrounds
than ever before in terms of gender, age, nationality, disability,and various lifestyles and values will foster an environment ofrespect for each other’s values and cooperation.
We will also seek to enhance corporate value by
encouraging a transformation in the mindset and behaviorof each and every employee, creating an employee-friendly
environment, and implementing diversity management
throughout the Group.
YUASA TRADING Group Diversity Policy
https://www.yuasa.co.jp/en/sustainability/society/diversity/

Indicators and Targets< Diversity >■KPI for Medium-term Management Plan
“Growing Together 2026”*
��%��%Percentage offemale employees incomprehensive work position

��.�%

��.�%

�%
�%
�%
�%

Percentage of
employed females incomprehensive work position

Percentage offemale managers

Percentage of employed females
in comprehensive work position
Target 12.0%

��.�%

�.�%

�.�%

�.�%

�.�%

�.�%

FY����
Results

FY����
Results

FY����
Results

Percentage of male employee
taking childcare leave and leave
for the purpose of childcare

FY2021 Results

FY2022 Results

FY2025 Plan

56.2％

62.8％

70％

1,977 hours

1,955 hours

1,920 hours

Percentage of taking paid
leave
Average hours of labor

34.3％

Percentage offemale managers
Target 3.0%

FY����
Plan

78.1％

90％

■Initiatives to Support Raising the Next Generation*
Employees working
shortened hours

FY2021

FY202281

90

35

Female employees balancing work andraising of children (female employees withpre-elementary school aged children)

46

Specific Initiatives< Career Track Transfer System >In order to promote women’s empowerment, we have
implemented a system for employees to transfer their career trackfrom general office work positions to comprehensive work positions.

■Trend*Percentage of female employees
in comprehensive work position
Target 6.0%

�.�%

< Workstyle Reform >■KPI for Medium-term Management Plan “Growing Together 2026”*

Special service positions(in transfer trial period*1)

Comprehensive work positiontransfers

FY2021Results

3
1

FY2022
Results

7

FY2023
Plan

2

8
0*2

*1 There is a two-year trial period for a career track transfer from general office work positions tocomprehensive work positions (position = special service position).
*2 Five employees are scheduled to transfer to comprehensive work positions in April 2024.

We held training for employees
who are transferring fromgeneral office work positions
to comprehensive work
positions.

Held in January 2023
Training for employees transferring tocomprehensive work positions▎Health and Productivity Management

Basic Philosophy
In health and productivity management, maintaining andpromoting the safety and mental and physical health of employees
is very important for each and every employee to maximize hisor her individual skills. We have made a commitment to healthand productivity management in order to realize the sustainableenhancement of corporate value.
Health Management Declaration
https://www.yuasa.co.jp/corporate/health_management.html

Promotion System
The Supervisory Manager of Management Administration(Senior Managing Director) is the chief executive for employee
health management, and reports on the status of measures andinitiatives promoted jointly by the Personnel Department and thehealth insurance association at important management meetings.
< Recognized as the “2023 Certified Health & Productivity
Management Outstanding Organization” >Continuing from last year, YUASA TRADING was recognized forthe fifth time as a “Certified Health & Productivity Management
Outstanding Organization” in a system that awards major
companies who execute excellent
health and productivity management.
This is awarded by the Ministry of
Economy, Trade and Industry ofJapan to promote the spread ofhealth and productivity management.
●Major Initiative: Expansion of the Wellness Promotion

Center (WPC)The number of interview rooms have been increased, and afull-time public health nurse was employed in November 2022.

■︎Health and Productivity Initiatives (FY2022)*
Regular health checkup rate
Stress check rate

*Indicators for YUASA TRADING (non-consolidated)

100%
100%

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YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Society▎Development of the Working Environment

Objective of Working Environment Development
We aim for a Group-wide office environment with the ability topromote “Total Coordination Skills,” “Challenging Spirit,” and“Communication.”
We believe the “workplace environment” is as importantas system reform in order to increase employee “worksatisfaction” and “ease of work.”
We will accelerate business transformation by developing anenvironment with open communication regardless of division,
Group, job title, age, and other factors to create innovation.
We will also maximize individual performance to realize
workstyle reform.

■︎Development of the Working Environment We Are Aiming For
Developing an environment with the ability tomaximize TSUNAGU innovation
Total Coordination
SkillsAn environment that candemonstrate division andGroup total coordination
skillsChallenging Spirit
An environmentthat can meet thechallenge of new
business creation andoperational reform

TopicsCommunication
An environmentthat can facilitatecommunication
with diverse
employees

TopicsOccupational safety - disastercountermeasures to keep employees safe

The YUASA TRADING Group puts employee safety firstand has introduced systems for storing stockpiles andconfirming safety at each site and the Group company as
countermeasures in the event of an emergency.
At the head office and Kanto branch of YUASA TRADING,
we store a stockpile equivalent to three days' worth of
supplies for all employees working at the offices in linewith ordinance of the Tokyo Metropolitan Government as ameasure to deal with stranded commuters in the event of adisaster. As storage space is limited inside the offices, besides
the stockpile store room, we also utilize dead space effectively
to secure and disperse storage areas, such as above andbelow wardrobes, in business meeting spaces, and under theseating in break rooms.
A safety confirmation system that can confirm the safetyof employees as quickly as possible has been introduced at
all Group companies in Japan, and we run regular drills.
Moreover, from the perspective of managing various
risks in a disaster, we have distributed the Group's original“Disaster Prevention Handbook” to all employees, inaddition to commencing development of the “Disaster Initial
Response Manual” in FY2022. The manual compiling thesafety countermeasures to be prepared in advanced andwhat to do in terms of initial actions in the event of a disasterwill be distributed to all employees during FY2023.

Basic Philosophy
Based on the mindset of “service with good products” thathas been passed down from the founding of the Group, we
conduct fair, honest, and reliable commercial transactions.
In order to promote management that values sustainability,
including harmony with the global environment, inpartnership with diverse stakeholders, we have establishedthe YUASA TRADING Group Transaction Policy. Under thepolicy, we pay due attention to human rights, labor practices,
environmental conservation, quality, safety, and security in the
supply chain, and carry out regular checks.
YUASA TRADING Group Transaction Policy
https://www.yuasa.co.jp/en/sustainability/society/supply-chain/▎Respect for Human Rights

Compliance with Human Rights Policy
Respect for human rights is one of the important elementsof the YUASA TRADING Group's business activities. Based on
the YUASA TRADING Group Human Rights Policy, all officers
and employees of the Group companies practice the policy
throughout our business activities. In terms of specificinitiatives, besides the implementation of human rights due
diligence, we also engage in dialogue with stakeholders andwill continue to strengthen our measures aimed at respect forhuman rights.
YUASA TRADING Group Human Rights Policy
https://www.yuasa.co.jp/en/sustainability/society/human-rights/

New head office building

We will build a new head office building as a base that willconsolidate the YUASA TRADING Group sites in the Tokyo
metropolitan area, which are currently dispersed across several
locations, to be able to create vigorous communication andchallenging spirit and demonstrate total coordination skills.

▎Sustainable Procurement

Stockpile storage (Left: Under seating in a break room; Right: In empty spacein wardrobes)

49

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

List of Officers(as of June 23, 2023)

1 Hiroyuki Tamura

Representative Director, President & CEO
In charge of Overseas Business Development

Apr. 1982

Joined the Company

Mar. 2000

President of YUASA WARWICK MACHINERY LTD.

Apr. 1997

Oct. 2002
Apr. 2007
Apr. 2009Managing Director of YUASA MECHATRONICS (M) SDN. BHD.
Managing Director of YUASA SHOJI EUROPE B.V.

General Manager of Factory Solution Division of the Company

Executive Officer, General Manager of Factory Solution Division of the Company

Jun. 2010	Director, Executive Officer, in charge of Overseas Business Development andGeneral Manager of Factory Solution Division of the Company

Jun. 2013	Managing Director, Executive Officer, in charge of Overseas Business Development andGeneral Manager of Factory Solution Division of the Company

Apr. 2014	Managing Director, Executive Officer, Chief General Manager of Industrial Market Headquarters,in charge of Overseas Business Development and General Manager of Factory Solution
Division of the Company
Apr. 2016	Senior Managing Director, Executive Officer, Chief General Manager of Industrial Market
Headquarters and in charge of Overseas Business Development of the Company
Apr. 2017

Representative Director, President & CEO of the Company

Apr. 2021	Representative Director, President & CEO and in charge of Overseas Business Developmentof the Company (incumbent)

Reason for election
Mr. Hiroyuki Tamura has full knowledge of the industrial equipment and tools and machine tools areas due
to his serving in such capacities as Director, Executive Officer, Chief General Manager of the Industrial Market
Headquarters and also has abundant experience and achievements in overseas business as a representativeof some of the Company’s overseas subsidiaries and a Director in charge of Overseas Business Development.
Moreover, having demonstrated outstanding management skills since taking the position ofRepresentative Director, President & COO of the Company in April 2017, the Company decided it would beappropriate to have him contributing to the growth of the Company and the Group going forward.

12
4

10

3

5

13

6

7
1

9

2

11

8

2 Haruo Sanoki

Representative Director, Senior Managing Director
Supervisory Manager of Management Administration

Apr. 1978

Joined the Company

Apr. 2011

Executive Officer, General Manager of Machinery Engineering Division of the Company

Apr. 2007

Vice Assistant General Manager of Machinery Engineering Division of the Company

Jun. 2013	Director, Executive Officer, General Manager of Machinery Engineering Division of the Company
Apr. 2015	Director, Executive Officer, Vice Supervisory Manager of Management Administration,
General Manager of General Affairs Department of the Company

Apr. 2017	Managing Director, Executive Officer, Supervisory Manager of Management Administration,in charge of Regional Groups, Committee Chairperson of Export Administration Department,
Ethics and Compliance Committee, Internal Control Committee of the Company

Apr. 2018	Senior Managing Director, Executive Officer, Supervisory Manager of Management Administration,in charge of Regional Groups, Committee Chairperson of Export Administration Department,
Ethics and Compliance Committee, Internal Control Committee of the Company
Jun. 2019	Representative Director, Senior Managing Director, Executive Officer, Supervisory Manager
of Management Administration, in charge of Regional Groups, Committee Chairperson ofExport Administration Department, Ethics and Compliance Committee and Internal Control
Committee of the Company (incumbent)
Reason for election

Mr. Haruo Sanoki has full knowledge of the machine tools area due to his being a Director, Executive Officer,
General Manager of the Machinery Engineering Division and having served as a Representative Director,
Senior Managing Director, Executive Officer, Supervisory Manager of the Management Administration. He
has worked on strengthening the management foundation and governance at both the Company and theGroup and has abundant experience and achievements.

3 Kenichi Tanaka

Senior Managing Director
Supervisory Manager of Sales Division
Chief General Manager of Living Environment Market Headquarters

Apr. 1982

Joined the Company

Apr. 2008

Vice Assistant General Manager of Building Facility Division of the Company

Oct. 2007
Apr. 2010

General Manager of Plant Business Department of the Company

Executive Officer, General Manager of Building Facility Division of the Company

Apr. 2011	Executive Officer, General Manager of Living Environment Division (Eastern Area) of the Company
Jun. 2014	Director, Executive Officer, General Manager of Living Environment Division (Eastern Area) of
the Company

Apr. 2017	Director, Executive Officer, Chief General Manager of Living Environment Market Headquarters,
Supervisory Manager of Construction Business Headquarters, General Manager of Living
Environment Division (Eastern Area) of the Company

Jun. 2017	Managing Director, Executive Officer, Chief General Manager of Living Environment Market
Headquarters, Supervisory Manager of Construction Business Headquarters, General Manager
of Living Environment Division (Eastern Area) of the Company
Apr. 2018	Managing Director, Executive Officer, Chief General Manager of Living Environment Market
Headquarters, Supervisory Manager of Construction Business Headquarters of the Company
Apr. 2019	Managing Director, Executive Officer, Chief General Manager of Living Environment Market
Headquarters of the Company
Jun. 2019	Senior Managing Director, Executive Officer, Chief General Manager of Living Environment
Market Headquarters of the Company

Apr. 2020	Senior Managing Director, Executive Officer, Supervisory Manager of Sales Division and Chief
General Manager of Living Environment Market Headquarters of the Company (incumbent)
Reason for election

Mr. Kenichi Tanaka has full knowledge of the housing, air and fluidic control systems area due to his serving
in such capacities as Managing Director, Executive Officer, General Manager of the Living Environment
Division (Eastern Area) and as Senior Managing Director, Executive Officer, Chief General Manager of the
Living Environment Market Headquarters, and has abundant experience and achievements.

4 Mamoru Hamayasu

Director
Chief General Manager of Industrial Market Headquarters

Apr. 1984

Joined the Company

Apr. 2012

President and General Sales Manager of YUASA TRADING (SHANGHAI) CO., LTD.

Apr. 2011

Vice Assistant General Manager of Factory Solution Division of the Company

Apr. 2014	Supervisory Manager of East Asia Area of the Company, and Chairperson and President of
YUASA TRADING (SHANGHAI) CO., LTD.

Apr. 2015	Executive Officer, Supervisory Manager of East Asia Area of the Company, and Chairperson andPresident of YUASA TRADING (SHANGHAI) CO., LTD.
Dec. 2016	Executive Officer of the Company, and Representative Director, President of YUASA TECHNICALENGINEERING CO., LTD. (currently YUASA NEOTEC CO., LTD.)
Apr. 2021	Executive Officer of the Company, and Representative Director, President of YUASA NEOTEC
CO., LTD.
Jun. 2021	Senior Executive Officer of the Company, and Representative Director, President of YUASANEOTEC CO., LTD.
Apr. 2022	Senior Executive Officer, Chief General Manager of Industrial Market Headquarters of theCompany

Jun. 2022	Director, Executive Officer, Chief General Manager of Industrial Market Headquarters of theCompany (incumbent)
Reason for election

Mr. Mamoru Hamayasu has full knowledge of the industrial equipment and tools and machine tools areas
due to his serving in such capacities as Executive Officer and Senior Executive Officer of the Company,
including as a representative of the Company’s overseas subsidiary and Representative Director,
President of YUASA NEOTEC CO., LTD., a subsidiary of the Company, and has abundant experience andachievements.

50

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

List of Officers (as of June 23, 2023)
5 Takaomi Omura

Director
Chief General Manager of Construction Market Headquarters

8 Yoshiro Hirai

Outside Director

Oct. 1993

Joined Macros Co., Ltd. (currently YUASA MACROS CO., LTD.)

Apr. 1984

Joined the former ITOKI Co., Ltd.

Apr. 2012

Director, General Manager of Administration Department of YUASA MACROS CO., LTD.

May 2012

General Manager, Marketing Strategy Department Group of ITOKI CORPORATION

Apr. 2002
Apr. 2015
Apr. 2018

General Manager of the Administration Department of Macros Co., Ltd.
Representative Director, President of YUASA MACROS CO., LTD.

Executive Officer, General Manager of Construction Materials Division of the Company

Apr. 2023	Senior Executive Officer, Chief General Manager of Construction Market Headquarters of theCompany

Jun. 2023	Director, Executive Officer, Chief General Manager of Construction Market Headquarters of theCompany (incumbent)
Reason for election

Mr. Takaomi Omura has full knowledge of the construction materials and building exterior areas due tohis serving in such capacities as Executive Officer, General Manager of the Construction Materials Division,having served as Representative Director, President of YUASA MACROS CO., LTD., a Company subsidiary,and has abundant experience and achievements.

6 Shinzo Maeda

Apr. 1970

Outside Director

Joined Shiseido Company, Limited

Jun. 2003	Director, Corporate Officer, General Manager of Corporate Planning Department of Shiseido
Company, Limited
Jun. 2005

Representative Director, President and CEO of Shiseido Company, Limited

Apr. 2013

Representative Director, Chairperson, President and CEO of Shiseido Company, Limited

Apr. 2011
Apr. 2014

Jun. 2014
Jun. 2015

Sep. 2015
Jun. 2021

Representative Director, Chairperson of Shiseido Company, Limited
Representative Director, Chairperson of Shiseido Company, LimitedCounselor of Shiseido Company, Limited (retired June 2020)
Outside Director of the Company (incumbent)

Outside Director of TOSHIBA CORPORATION (retired in June 2018)
Outside Director of S.T. CORPORATION (incumbent)

Reason for election

Mr. Shinzo Maeda has worked in various public offices, in addition to having been the Representative
Director, Chairperson of Shiseido Company, Limited, and has abundant experience and high principles asa global business executive and intellectual. Due to these qualities, the Company decided that he can be
expected to give direction and advice from an independent and objective viewpoint as an Outside Director.

7 Kyosuke Kimura

Outside Director

Jul. 2009

General Manager, Human Resources Department of ITOKI CORPORATION

Jan. 2013	Executive Officer and General Manager, Marketing Strategy Department Group of ITOKICORPORATION
Jan. 2015

Executive Officer of ITOKI CORPORATION

Mar. 2022

Special Advisor of ITOKI CORPORATION (retired in March 2023)

Mar. 2015

Jan. 2023

Jun. 2023

President of ITOKI CORPORATION

Representative Director, President of OpenWorking Inc. (incumbent)
Outside Director of the Company (incumbent)

Reason for election

Mr. Yoshiro Hirai has been engaged in the management of ITOKI CORPORATION for many years, andhas a wealth of experience and a high level of insight as a business executive. Due to these qualities,
the Company decided that he can be expected to take on a supervisory and advisory function from an
independent and objective standpoint as an Outside Director.

9 Miki Mitsunari

Outside Director

Feb. 2011

Executive Vice President, PARAMOUNT BED CO., LTD.

President and Chief Executive Officer, PARAMOUNT BED CO., LTD.

President and Chief Executive Officer, PARAMOUNT BED HOLDINGS CO., LTD.

Apr. 2020	Chairperson, PARAMOUNT BED HOLDINGS CO., LTD. (incumbent)
Chairperson, PARAMOUNT BED CO., LTD. (incumbent)
Jun. 2021	Outside Director of the Company (incumbent)
Reason for election

Mr. Kyosuke Kimura has been engaged in the management of PARAMOUNT BED HOLDINGS CO., LTD. and
PARAMOUNT BED CO., LTD. for many years, and has a wealth of experience and a high level of insight asa business executive. Due to these qualities, the Company decided that he can be expected to take on asupervisory and advisory function from an independent and objective standpoint as an Outside Director.

Apr. 2022

Jun. 2022

Audit & Supervisory Board Members Office of the Company

Full-time Audit & Supervisory Board Member of the Company (incumbent)

Reason for election

Mr. Takeshi Maeda has many years of experience and a solid track record related to finance andmanagement administration in the Finance Department and management administration departmentsof the Company. The Company has decided that he possesses sufficient knowledge of finance andaccounting matters.

12 Mitsuhiro Honda

Outside Audit & Supervisory Board Member

Professor, University of Tsukuba Graduate School of Business Sciences (incumbent)

Mar. 2020

Jun. 2020
Jun. 2020
Jun. 2022
Jun. 2023

Outside Director of Funai Soken Holdings Inc. (retired in March 2023)
Director of Japan Accreditation Board (part time) (incumbent)
Board Director of YAMADA HOLDINGS CO., LTD. (incumbent)
Board Director of Solasto Corporation (incumbent)
Outside Director of the Company (incumbent)

Reason for election

Ms. Miki Mitsunari has been engaged in consulting work for the SDGs and corporate ESG for many years,
has a high level of insight as director of a public institution and has been engaged in management of her
own consulting company. Due to these qualities, the Company decided that she can be expected to takeon a supervisory and advisory function from an independent and objective standpoint as an Outside
Director.

Jul. 2010

May 2013
Apr. 2014

Mar. 2016

General Manager, General Affairs Department, Takamatsu Tax Bureau

International Tax Advisor, TOMA Consultants Group Co., Ltd. (incumbent)

Part-time Instructor, Waseda University Graduate School (retired in March 2021)
Outside Audit & Supervisory Board Member, Roland DG (incumbent)

Apr. 2016	Professor, Graduate School of Global Business, Meiji University and Lecturer (retired in March
2022)
Apr. 2017	Research Grant Selection Committee Member, The Institute of Tax Research and Literature(incumbent)
Aug. 2017	Member of the United Nations Committee of Experts on International Cooperation in Tax
Matters (retired in June 2021)
Jun. 2018

Sep. 2021

Outside Audit & Supervisory Board Member of the Company (incumbent)
Outside Director of YOKOREI Co., Ltd. (incumbent)

Reason for election

Mr. Mitsuhiro Honda has expert knowledge of tax matters due to his many years working for the National
Tax Agency and as a university professor, and has experience as an Outside Audit & Supervisory Board
Member of Roland DG and an Outside Director of YOKOREI Co., Ltd. The Company has decided that hepossesses considerable knowledge of tax and accounting matters.

10 Yoshiyuki Furumoto

Audit & Supervisory Board Member

Executive Officer and General Manager of Credit Department of the Company

Senior Executive Director, PARAMOUNT BED CO., LTD.

General Manager of Finance Department of the Company

Apr. 2020	Vice Branch Manager of Kansai Branch Office and General Manager of Osaka Administration of
the Company

Joined the National Tax Agency

Jun. 2016

Apr. 2009

General Manager of Affiliated Companies’ Strategy Department of the Company

Jul. 2012

Member of the Board, Kimura Kosan Co., Ltd. (currently PARAMOUNT BED HOLDINGS CO., LTD.)

Apr. 1997

Apr. 2016

Apr. 1984

Oct. 1982
Apr. 1991

Vice Branch Manager of Kansai Branch Office of the Company

Apr. 2014

Assistant Deputy General Manager of Finance Department of the Company

President of FINEV, Inc. (incumbent)

Joined Fuji Sogo Research Institute (currently Mizuho Research & Technologies, Ltd.)

Joined the Company

Senior Managing Director, PARAMOUNT BED CO., LTD.

Joined the Company

Apr. 2012

Apr. 2007

Joined TOKYU LAND CORPORATION

Apr. 1982

Sep. 1987

Apr. 1984

Sep. 2011

Feb. 2001

Joined Kimura Shindai Industry Co., Ltd. (currently PARAMOUNT BED CO., LTD.)
Member of the Board, Kimura Shindai Industry Co., Ltd.

Audit & Supervisory Board Member

Apr. 1994

Apr. 1979

Aug. 1979

11 Takeshi Maeda

Jun. 2011
Apr. 2018

Jun. 2018

General Manager of Credit Department of the Company

Executive Officer and Special Assistant to the President & CEO of the Company
Full-time Audit & Supervisory Board Member of the Company (incumbent)

Reason for election

Mr. Yoshiyuki Furumoto has many years of experience related to management administration as theCompany’s General Manager of Credit Department and a solid track record as a Full-time Audit &Supervisory Board Member of the Company. The Company has decided that he possesses sufficientknowledge of finance and accounting matters.

13 Chinami Kajo

Outside Audit & Supervisory Board Member

Apr. 1986

Registered as an Attorney at Law (Daini Tokyo Bar Association)

Apr. 2006

Court Adjudicator of Tokyo Family Court (until March 2016)

Apr. 2004

Court Adjudicator of Tokyo District Court (until March 2006)

Apr. 2006	Established Athena Law OfficePartner of Athena Law Office (incumbent)
Apr. 2016

Vice Chairman of Daini Tokyo Bar Association (until March 2017)

Jun. 2023

Outside Audit & Supervisory Board Member of the Company (incumbent)

Apr. 2016

Director of Japan Federation of Bar Associations (until March 2017)

Reason for election

Ms. Chinami Kajo is expected to strengthen the auditing structure of the Company by utilizing her expert
knowledge and experience as a lawyer.

51

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate Governance

Basic Approach to Corporate Governance
As a social entity, YUASA TRADING Group aims to maximize
corporate value, return profits to society, and continue to operate
in the long term by maintaining and expanding a multi-faceted andpositive relationship between management (Directors) who are
entrusted by many shareholders and various stakeholders, including
shareholders who delegated responsibility to management,
employees, suppliers, sales partners, and financial institutions.
■︎Corporate Governance System (as of June 23, 2023)
Elect/dismiss

ReportAudit & Supervisory Board (�)The Group is a large conglomerate comprised of 37 affiliatedcompanies*, including 30 consolidated subsidiaries and one
equity method affiliate. However, centered on YUASA TRADING,
the Group maintains close cooperation and strives for disciplined
company management that improves the value of the overall
corporate group based on the policies of our governance system.

* As of June 30, 2023

Director /Audit & Supervisory Board Member

General Meeting of Shareholders
Elect/dismiss

Outside Director /Outside Audit & Supervisory Board Member

Report(including � Outside Audit & Supervisory Board Members)★

Governance Advisory Committee(Chair: Independent Outside Director
Members: � Representative Director / � Independent Outside Directors /� Independent Outside Audit & Supervisory Board Members)★

Consult(Directors excluding Outside Directors serving
concurrently as Executive Oﬃcers)

Appoint/dismiss

Instruct/supervise

Marketing Strategy
Meeting

Corporate Management
Committee

Ethics and Compliance
Committee

Consult
Advise★

ReportElect/dismiss

Accounting Auditor (Crowe Toyo & Co.)
Collaborate

Board of Directors (�) (including � Outside Directors)

AdviseChairperson /Accounting audit

Collaborate

Audit★ Committee Chairperson

Sustainability Promotion Committee(Chair: Supervisory Manager of Management Administration
Members: Chief General Managers of Market Headquarters /� Independent Outside Directors)★

Supervise

ReportExecutive Oﬃcers (��)Personnel
Committee▎Timeline of Corporate Governance Strengthening Efforts
FY2022• Continued reducing cross-shareholdings• Reviewed of agenda items to be discussed by the Board of Directors(strengthened the monitoring function of the Board of Directors)

FY2021• Continued reducing strategic shareholdings• Determined remuneration for individual Directors at the Board of
Directors (canceled re-entrustment to the Representative Directors)• Strengthened the monitoring function of the Board of Directors• Increased the number of Outside Directors (Outside Directors accountfor over one third of all Directors)
FY2020• Reduced strategic shareholdings• Strengthened the monitoring function of the Board of Directors

Representative Director

Export Administration
Committee

The company implemented an Executive Officer system
in order to strengthen the function of the Board of Directors
as a decision-making body and an organization that oversees
business execution. In addition to aiming to optimize thenumber of Directors, the company elected four Outside
Directors as we strengthen the execution structure byaccelerating business execution and clarifying responsibilities.
On the other hand, the Audit & Supervisory Board that serves
as the supervising body is comprised of a total of four Audit &Supervisory Board Members, including two Outside Audit &Supervisory Board Members. Each Audit & Supervisory Board
Member attends important meetings, such as the Board of Directors
meetings, and conducts strict audits on the business execution of
Directors from an independent perspective as they contribute to thestrengthening and enhancement of the governance system.

Internal
Auditing Oﬃce

Internal
Control Committee(� Directors serving concurrently, �� not serving concurrently;
includes � serving as Senior Executive Oﬃcers)

Market Headquarters, Management Administration, domestic and overseas Group companies

Environmental and
Resilience Committee

FY2019• Elected a female Independent Outside Director• Established Governance Advisory Committee centered on
Independent Outside Officers• Eliminated advisor system
FY2018Introduced performance-linked share awards
FY2017
Elected one substitute Outside Director

FY2015
Elected two Independent Outside Directors
FY2013
Elected one Independent Outside Director

52

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate GovernanceEvaluating the Operation and Effectiveness of the Board of Directors▎Operation of the Board of Directors

Chaired by Hiroyuki Tamura, Representative Director andPresident, the Board of Directors is the body making decisions
related to important business execution and monitoringbusiness execution of Directors. The company holds the Boardof Directors meetings once a month, in principle, as well as otherextraordinary meetings as necessary. Directors with expertisein internal operations and Outside Directors with extensive
experience and insight in corporate management supervise
and provide advice from an objective standpoint on importantmanagement decisions in a specialized and wide-ranging
business environment, fulfilling their responsibilities such as
flexible decision-making and supervision.
In order to further strengthen corporate governance andensure management transparency, the company designated four
Outside Directors and two Outside Audit & Supervisory Board
Members as Independent Officers.
In addition, the four Audit & Supervisory Board Members(including two Outside Audit & Supervisory Board Members) attend
the Board of Directors meetings, where they express their opinions
as appropriate and survey the execution of their roles as Directors.
■Term of Office, Attendance at Board of Directors Meetings,
and Number of Company Shares Held
Hiroyuki Tamura
Haruo Sanoki

Kenichi Tanaka

Naomi Nakayama*

Mamoru Hamayasu
Takaomi Omura

Shinzo Maeda

Keiko Toya*

Term of Office as a
Director

Number of Board of
Directors Meetings
Attended (FY2022)

Number of Company
Shares Held(as of May 31, 2023)

10 years

15/15

7,500 shares

13 years
9 years
4 years
1 year

15/15
15/15
11/11

―

Newly appointed

4 years

15/15

8 years

Kyosuke Kimura

2 years

Miki Mitsunari―

Yoshiro Hirai

15/15

―

15/15

15/15

Newly appointed

Newly appointed

8,400 shares

6,700 shares―

1,900 shares
500 shares
―

―

―

―

―

* Term of office ended at the conclusion of the General Meeting of Shareholders held in June 2023.

■Term of Office, and Attendance at Audit & Supervisory
Board Meetings
Yoshiyuki FurumotoTakeshi Maeda

Susumu Tsuruta*
Mitsuhiro Honda
Chinami Kajo

Term of Office as an Audit &Supervisory Board Member

Number of Audit & Supervisory
Board Meetings Attended(FY2022)

1 year

11/11

5 years

12 years
5 years
―

16/16

16/16
16/16

Newly appointed* Term of office ended at the conclusion of the General Meeting of Shareholders held in June 2023.

nitiatives to Improve the Effectiveness of the▎IBoardof Directors

In addition to the Directors and Audit & Supervisory Board
Members doing a self-evaluation of their execution of duties,
we use a questionnaire about the effectiveness of the Boardof Directors to evaluate the aptness of operational methods,
procedures, and deliberation standards. These results arereported to the Board of Directors in order to improve theoperation of the Board of Directors.
For evaluating the effectiveness of the Board of Directors,
all Directors and Audit & Supervisory Board Members fill out aquestionnaire (self-evaluation) and discuss the results every year.
In addition to sharing an awareness of our current status,
it is necessary to continuously improve the effectiveness of
the Board of Directors though an extraction of issues. In lightof the report on the findings of analysis and evaluation of theoperation of the Board of Directors based on the results of thequestionnaire, we review the Board of Directors deliberation
standards and aim to make improvements to create more
nimble Board of Directors operations.

■ Implementation Overview of “Questionnaire on the
Effectiveness of the Board of Directors”

Evaluation Method
・Written questionnaire(5-point scale and free response)

Evaluation Items
・Operation and agenda of Board of Directors
meetings (12 items in total)

Results of FY2021 Effectiveness Evaluation
・For many items, the average score in the 5-point
evaluation exceeded 3.5, and we do not think there
are any major problems with the effectiveness andoperation of the current Board of Directors.
・An overview of the questionnaire results wasreported to the Board of Directors, and based on
the hearing results, measures to further improvethe effectiveness are being considered andimplemented.

FY2022 Initiatives Based on Evaluation Results・Based on the results of this evaluation anddiscussions on the roles and supervisory functionsof the Board of Directors based on the principle of“separation of management and execution,” theBoard of Directors revised the Board of Directors
deliberation standards as part of building a flexible
business execution system by transferring authority
to the executive side.

53

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate GovernanceEvaluating the Operation and Effectiveness of the Board of Directors▎Audit & Supervisory Board

The Audit & Supervisory Board of the company is chairedby full-time Audit & Supervisory Board Member Yoshiyuki
Furumoto and is comprised of two full-time Audit & Supervisory
Board Members and two part-time Audit & Supervisory Board
Members (Outside Audit & Supervisory Board Members). Basedon the auditing policies and plans established in the Audit &Supervisory Board, Audit & Supervisory Board Members attend
the Board of Directors meetings and other important meetings,
view important decision-making documents, visit each businesssite, and survey subsidiaries in order to conduct audits related
to execution of duties of Directors and internal controls.

Comment

Message from new Audit &Supervisory Board Member

Chinami Kajo

Outside Audit & Supervisory
Board Members

I am deeply honored to be appointed as an Audit &Supervisory Board Member, and I feel the weight andpurpose of the mission given to me.
I feel it is very important to “use one's imagination” as
an approach toward work. It is possible to move forward
by trying to change positions with and understand otherpeople. I will fulfill my responsibilities as an Audit &Supervisory Board Member from a neutral standpoint
outside the company, utilizing the experience I havecultivated in my previous roles. I would be grateful if I
could contribute in any way to the sustainable growth andgovernance of the YUASA TRADING Group.

▎Governance Advisory Committee

The company has established the Governance Advisory
Committee chaired by an independent Outside Director as
an optional advisory body beneath the Board of Directors
with members that mainly consist of independent officers forthe purpose of strengthening governance. The Governance
Advisory Committee is composed of all the independent
Outside Directors and independent Outside Audit &Supervisory Board Members as well as one Representative
Director. The committee deliberates on the following mattersand reports to the Board of Directors.
(1) M atters related to appointment and dismissal of Directors(2) M atters related to remuneration of Directors(3) M atters related to analysis and evaluation on theeffectiveness of the overall Board of Directors and otherproposals related to governanceThis committee meeting was held six times in the fiscal
year ended March 31, 2023 and reported to the Board of
Directors on the following matters.

■Key Considerations

・Determination of individual basic remuneration and bonuses for Directors

・Election of nine Directors; election of one Audit & Supervisory Board Member;election of one substitute Audit & Supervisory Board Member at the 144th Ordinary
General Meeting of Shareholders
・Conclusion of Directors and Officers Liability Insurance

・Changes to the Board of Directors resolution/deliberation standards■Composition of the Governance Advisory Committee(as of June 23, 2023)
Independent Outside Director

Shinzo Maeda (Committee Chairperson)

Independent Outside Director

Yoshiro Hirai

Independent Outside Director
Independent Outside Director
Independent Outside Audit &Supervisory Board Member
Independent Outside Audit &Supervisory Board Member
Representative Director,
Senior Managing Director

Kyosuke Kimura
Miki Mitsunari

Mitsuhiro Honda
Chinami Kajo

Haruo Sanoki▎Sustainability Promotion Committee

The Sustainability Promotion Committee sets targets related tosustainability, monitors progress, and evaluates achievements.
The committee will aim to meet twice a year and submit
reports and recommendations to the Board of Directors onsustainability issues and progress.

(1) Identification of key sustainability issues for the Group froma medium- to long-term perspective, study for resolution ofissues, and design of future vision(2) Establishment, revision, and abolition of basic policy, rules, andprocedures, etc. for the implementation of the aforementioned(3) Matter the Sustainability Promotion Committee deems
necessary related to the Group’s sustainability management(4) Matters for consultation from the Board of Directors■Composition of the Sustainability Promotion Committee(as of June 23, 2023)
Supervisory Manager of Management
Administration
Chief General Manager of Living Environment
Market Headquarters
Chief General Manager of Industrial Market
Headquarters
Chief General Manager of Construction Market
Headquarters

Haruo Sanoki (Committee Chairperson)

Independent Outside Director

Kyosuke Kimura

Independent Outside Director
Independent Outside Director
Independent Outside Director

Kenichi Tanaka

Mamoru Hamayasu
Takaomi Omura
Shinzo Maeda
Yoshiro Hirai

Miki Mitsunari▎Scope of Delegation to Management

Matters to be decided by the Board of Directors, Corporate
Management Committee, approvals, etc., are determined byresolutions of the Board of Directors, approvals of the Corporate
Management Committee, and approval by approval requests,
with a detailed and specific division of authority and responsibility
depending on the degree of importance. In addition, the company
has clarified the authority, division of duties, etc. of businessexecution officers and general managers through internal rules,
and a system has been established to constantly review them.

54

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate GovernanceInitiatives to Ensure the Effectiveness of Governance■Skill Matrix for Directors
Name

Position and main responsibility inthe company

Hiroyuki Tamura

Representative Director, President & CEO
In charge of Overseas Business Development

Haruo Sanoki
Kenichi Tanaka

Corporate
management

Marketing

Organizationand personnel
development

Finance andaccounting

Legal affairs& riskmanagement

Globaloperations

Representative Director, Senior Managing
Director
Supervisory Manager of Management
Administration

Senior Managing Director
Supervisory Manager of Sales Division
Chief General Manager of Living Environment
Market Headquarters
Director

Mamoru Hamayasu Chief General Manager of Industrial Market
Headquarters

Takaomi Omura

Director
Chief General Manager of Construction
Market Headquarters

Shinzo Maeda

Outside Director

Kyosuke Kimura

Outside Director

Yoshiro Hirai

Outside Director

Miki Mitsunari

Outside Director* The above table lists up to four fields in which Director’s expertise is particularly expected, based on the past experience of each candidate for Director. It is not an
exhaustive list of all the expertise and experience the Director possesses.

▎Qualifications and Criteria for Determining the Independence of Independent Outside Directors

With the objective of increasing objectivity in management decision-making and further improving
the soundness and transparency of management, when appointing Outside Directors, in addition
to the requirements under the Companies Act, the company uses the factors for determining(independence criteria) when there is a risk of conflict of interest with general shareholders in
the Guidelines Concerning Listing Control, etc. of the Tokyo Stock Exchange as the criteria for
determining the independence of Independent Outside Directors.
Furthermore, when selecting candidates for Independent Outside Directors, the criteria for selection
is based on their ability to provide advice on management policies and improving management based on
their own knowledge, from the perspective of promoting the company’s sustainable growth and increasing
its corporate value over the medium to long term, and to supervise management through the appointment
and dismissal of senior management and other important decisions of the Board of Directors.

▎Provision of Training for Directors and Audit & Supervisory Board Members

The company continuously provides the necessary opportunities, facilitation, and financial
support, including holding seminars by outside instructors, for all the Directors and Audit &Supervisory Board Members, including Outside Directors and Outside Audit & Supervisory
Board Members, to acquire the business, accounting, finance, legal affairs, and organizational
knowledge required to fulfill their roles and responsibilities. Newly appointed officers also strive
to acquire knowledge of corporate law by attending outside seminars.

▎Support for Outside Directors

Members of the Secretariat provide the Outside Directors with an explanation of the agenda forthe meeting of the Board of Directors before the date when the meeting is held each month. The
full-time Audit & Supervisory Board Member, who participates in the Corporate Management
Committee meetings and other key meetings, also provides the Outside Audit & Supervisory
Board Members with an explanation of the agenda for the meeting of the Board of Directors
before the meeting is held each month. In principle, the meeting of the Audit & Supervisory Boardis also held on the day of the meeting of the Board of Directors to discuss the agenda again.
The company has assigned one member of staff to the Audit & Supervisory Board and works tostrengthen the auditing system to make it more effective.

▎Reasons for the Election or Nomination of Individual Candidates for Director
The reasons for the election of all the Directors and Audit & Supervisory Board Members aredescribed in the reference documents for the General Meeting of Shareholders. In addition,
the areas of expertise that the company particularly expects the candidates for Directors tohave are listed in the form of a skill matrix. In appointing Outside Directors and Outside Audit& Supervisory Board Members, the scale of transactions between the company, the Group
companies, and the companies where the candidates hold concurrent positions is listed toprovide shareholders with information on the determination of independence.

▎Strengthening Group GovernanceIn order to strengthen control over domestic consolidated subsidiaries, YUASA BUSINESSSUPPORT CO., LTD. has been entrusted with their accounting processing. In addition, we haveintroduced an overseas business monitor for the purpose of strengthening financial monitoring,and have prepared a management book specializing in overseas consolidated subsidiaries.

55

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate Governance

Remuneration for Directors and Other Officers■Total Amount of Remuneration, Total Amount of Remuneration by Type, and Number of Recipient Directors and Other Officers(results for fiscal year ended March 31, 2023)
Categories

Director

Audit & Supervisory Board Member
Outside Director

Outside Audit & Supervisory Board Member
Total

Total amount of remuneration by type (millions of yen)

Total amount of
remuneration(millions of yen)

252
48
38
19

358

Basic remuneration

142
48
38
19

248

Performance-linked
remuneration, etc.

68
-

68

Non-monetary
remuneration, etc.

41

Number of recipient directors(and other officers)

-

41

6

3
3
2

14

*1 The limits of remuneration for Directors and Audit & Supervisory Members are set as below based on a resolution of the 139th Ordinary General Meeting of Shareholders held on June 22, 2018.
In addition, the portion of this remuneration that is for the Outside Directors is set as shown in parentheses based on a resolution of the 142nd Ordinary General Meeting of Shareholders held on June 24, 2021.
(1) Directors
A maximum of ¥380 million per year (of which not more than ¥50 million is for Outside Directors). Separately, a maximum amount of money funding for the performance-linked share awards system in the applicable
period comprising three fiscal years is a total of ¥540 million. However, the total for the system is a maximum of ¥360 million for the two fiscal years of FY2019 and FY2020.
Further, the company abolished the remuneration of share acquisition rights as it implemented the performance-linked share awards system.
As of the conclusion of the 139th Ordinary General Meeting of Shareholders, the number of Directors is 10, and as of the conclusion of the 142nd Ordinary General Meeting of Shareholders, the number of Outside Directors is three.
(2) Audit & Supervisory Board Members
A maximum of ¥80 million per year. The company has abolished the remuneration of share acquisition rights. As of the conclusion of the Ordinary General Meeting of Shareholders, the number of Audit & Supervisory
Board Members is four (two of whom are Outside Audit & Supervisory Board Members).
*2 The bonus above is the maximum provision for performance-linked remuneration for Directors (excluding Outside Directors) for the five Directors (excluding Outside Directors) for this fiscal year.
*3 The remuneration sum for Directors (excluding Outside Directors) does not include the ¥39 million (including bonuses) in employee wages for Directors who serve concurrently as employees.

*4 The content of non-monetary remuneration is the performance-linked remuneration described in “Concept of remuneration (1) Remuneration for Directors (b) Performance-linked remuneration.”▎Concept of Remuneration(1) Remuneration for Directors
Remuneration for Directors (excluding Outside Directors) is comprised of basic remuneration and performance-linked
remuneration (bonuses/shares). Outside Directors only receive basic remuneration.
(a) Basic remuneration
Monetary remuneration paid as a fixed sum depending on the position(b) Performance-linked remuneration
Performance-linked remuneration is comprised of bonuses and performance-linked share awards.
• Bonuses are monetary remuneration that fluctuate in amount based on consolidated results and individual results of theprevious fiscal year.
• Performance-linked share awards are comprised of a “fixed portion” that provides points for each fiscal year and a “performancelinked portion” that provides points based on the achievement level of performance targets at the final fiscal year of the Mediumterm Management Plan. This remuneration is paid upon retirement (one point = one share). Further, since 50% is paid as shares of
the company and 50% is used to pay income taxes, etc., the latter is paid as monetary value equivalent to the realized shares.
(2) Remuneration for Audit & Supervisory Members
Remuneration for Audit & Supervisory Members is paid only as a fixed monetary amount as basic remuneration as separately
established for full-time and part-time members through deliberations of all Audit & Supervisory Members in order to reflect theindependent nature, based on the remuneration system and standard corresponding to their duties and responsibilities.

▎Performance Indicators

This remuneration system aims to provide incentives toimprove medium- to long-term company results and corporate
value and share interests with shareholders. The following
indicators were used for evaluations in the Medium-termManagement Plan “Growing Together 2023” that ended in
FY2022.
Evaluation indicator (standard)

Evaluation
weightPerformancelinked factor

1/3

0-2.0

1/3

Consolidated net sales (¥545.0 billion)*
Consolidated ordinary profit (¥16.4 billion)

1/3

Profit attributable to owners of parent (¥11.5 billion)* Before revenue recognition

0-2.0
0-2.0

■Relationship Between Evaluation Indicators andPerformance-linked Factors(method of determining performance-linked share awards amount)
Consolidated net sales

Consolidated ordinary
profit¥599.5 billion or more ¥21.4 billion or more

Profit attributableto owners of parent

Performance linked
factor

¥15.0 billion or more

2.0 (upper limit)¥545.0 billion¥16.4 billion¥11.5 billion

1.0¥490.5 billion or less¥11.5 billion or less¥8.1 billion or less0 (lower limit)
Performance linked
factor(actual values)

Performance indicators

FY2022 results

Evaluation weight

Consolidated net sales(before revenue recognition)¥523.8 billion

1/3

Profit attributable toowners of parent¥15.3 billion

1/3

0.7

¥10 billion

1/3

0.5

Consolidated ordinary
profit0.6* The performance-linked coefficient for performance-linked compensation for the fiscal year ended
March 31, 2023, the final year of the Medium-term Management Plan “Growing Together 2023,” was 0.6
based on the actual values of the performance evaluation indicators.

56

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate GovernanceDialogue with Stakeholders▎Basic Philosophy

In order to achieve the sustainable growth of the company andincrease its corporate value over the medium to long term, thecompany promotes constructive dialogue with shareholders,clearly explains its management policies in an easy-tounderstand manner, and strives to gain the understanding ofshareholders.

(1) Appointment of a Member of Management or a
Director to Oversee Overall Dialogue
The Director in charge of Management Administration oversees
overall dialogue with shareholders, and through various
initiatives, such as earnings briefings by the Representative
Director, President & CEO, the company strives to proactively
engage in constructive dialogue with stakeholders.
(2) How Departments Work Together to Support
Dialogue
Each department in the Management Administration Division
actively collaborates with each other to share IR informationand knowledge, examine the direction of IR, and prepare
disclosure materials.

(3) Enhancement of Investor Briefings and IR Activities
As a means of dialogue other than individual interviews,
in principle, financial results briefings for analysts andinstitutional investors are held twice a year on a regular basis.
In addition, we are actively engaged in IR activities such as
setting up opportunities for small meetings with institutional
investors as appropriate.

(4) Feedback of Shareholder Opinions to the Company
Opinions, etc. obtained through dialogue with shareholders
are summarized as appropriate and fed back to the
management team and relevant departments in an effort todisseminate and share information.
(5) Insider Information Management during Dialogue
Rules for the management of insider information (Insider
Trading Prevention Rules, and Information Security Policy
Rules) have been established and are managed.
In addition, the Management Administration Division,
which serves as the point of contact, is fully aware of insider
information and fair disclosure rules when communicatingwith shareholders, and responds accordingly.

▎Toward an Open General Meeting of
Shareholders

From the perspective of ensuring sufficient time forshareholders and institutional investors to consider proposals,
the company strives to accelerate the delivery of convocation
notices for the Ordinary General Meeting of Shareholders anddistributes them on-demand for the purpose of disclosing
information to as many stakeholders as possible.
The 144th Ordinary General Meeting of Shareholders
https://webcast.net-ir.ne.jp/80742306/index.html▎Dialogue with Institutional Investors and Analysts

The company disseminates information to shareholders
and investors around the world by holding financial results
briefings online, providing video explanations (financial resultsfor each fiscal year, medium-term management plans, etc.)
through the company's website, and publishing factbooks andother materials.
In addition, individual IR meetings are held from time
to time on a wide range of topics, such as the progress ofmanagement targets and priority strategies, shareholder
return policies, and initiatives to promote sustainability andachieve non-financial KPIs, with importance attached to themas opportunities to receive valuable opinions and impressions
from the market and external parties regardless of theownership status of the company's shareholders.
In FY2022, a total of 18 IR meetings were held withinstitutional investors and analysts in Japan and overseas.

easures to Instill Evaluations from the Capital▎MMarket
within the Company

The feedback obtained through communication withinvestors is shared with management and related internal
departments, and is used as valuable input in considering
future management policies and elements to be disclosed.
Recently, in light of the growing needs of investors andcapital markets, we have established a new KPI from FY2023 to“maintain a DOE (dividend on equity) of 3.5% or higher” as anindicator to show a stable dividend policy, and have decided
to disclose the status of our efforts to achieve this.

57

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate Governance

Ethics and Compliance
The YUASA TRADING Group has enacted a management
philosophy, ethics policy, and code of conduct. The
Representative Director and President is prioritizing theexecution of these policies. By repeatedly expressing thismindset to Directors and employees, the hope is that laws
and regulations and compliance to corporate ethics become afoundation for all company activities.

▎Ethics and Compliance System

We have established an Ethics and Compliance Committeethat is under the direct control of the Representative Director
and President. The chair of this committee is selected by
the Representative Director and President from among the
Directors. The Ethics and Compliance Committee utilizes
in-house training to boost its effectiveness and monitors the■Ethics and Compliance Systemcompliance status along with the Internal Auditing Office.
It has formed an ethics and compliance system that spans
across the YUASA TRADING Group.

▎Ethics and Compliance Hotline

A permanent hotline has been established to directly report andadvise with the Ethics and Compliance Committee if Directors or
employees of the company violate or may have violated laws andregulations, the Articles of Incorporation, or other regulations.
This system also ensures that persons who issue such reports will
not receive disadvantageous treatment for this reason.
With the revision of Japan’s Whistleblower Protection
Act in June 2022, the company revised its internal reporting
rules, limited the internal hotline for reporting and advice tothe Ethics and Compliance Committee Secretariat, the Audit

Representative Director, President & CEO(Delegation)

Global Group Chief Compliance Officer (GGCCO)
Supervisory Manager of Management Administration(Instruction)(Report)Chief general managers
Branch and branch office managers
General Manager of Administration Department(Report)All officers and employees(Instruction)(Report/advice)

Ethics and Compliance Committee

Chair: Global Group Chief Compliance Officer (GGCCO)
General Manager of Administration Department
Secretariat(Report)Compliance Officer (CO)(Instruction)(Appointment)Internal Reporting System

Hotline: Secretariat [Global Helpline]
Hotline: Advising lawyers
Hotline: Audit & Supervisory Board Members(Report/advice)

All Group employees
All Group temporary employees
All Group contract employees& Supervisory Board Members and the external hotline to thelawyers in charge at the advising law firm, and strengthened
compliance with the obligation to protect confidentiality. At
the same time, the company expanded the scope of those whoare able to seek advice so that former officers and employees
can also use the hotline up to one year after their resignation.
After receiving an inquiry or report, the Ethics andCompliance Committee will investigate the incident, enact
measures to prevent it from occurring again, and will reportimportant cases to the Board of Directors through the
Representative Director and President.

▎Response Against Anti-social Forces

The code of conduct declares the severance of any
relationship with anti-social forces. Furthermore, the company
is standardizing the management of information throughmanuals and in-house training in order to eliminate anderadicate anti-social forces. External approaches are managed
in the Ethics and Compliance Committee. The company also
participates in the Tokyo Metropolitan Police Organized Crime
Prevention Association (Tokubouren) and strives to gather
information and preempt transactions with anti-social forces.

▎Compliance Education and Training

The company implements grade-specific (new employees,
employees hired mid-career, newly appointed site managers,
newly appointed line managers, etc.) education and training
on compliance in general, and e-learning education on
preventing harassment for all Group employees (implemented
August – end of October 2022). In addition, through followup training for young employees (two to three years after
joining the company) with practical experience, we strive tocontinuously instill awareness of legal compliance from afrontline perspective.

58

YUASA INTEGRATED REPORT 2023

Value Creation Foundation

Corporate GovernanceRisk Management▎Risk Management System

The YUASA TRADING Group has appointed the Director in chargeof the Management Administration as the Risk Management
Supervisory Manager and has established a system to swiftly andappropriately transmit information and respond to emergencies
for each expected risk. The Risk Management Supervisory
Manager reports on the status of risk management to the Boardof Directors as necessary and works to establish a business
continuity management system to minimize business disruption
and impact in the event that a risk materializes.

▎Overview of Operational Status

The Risk Management Supervisory Manager implements
comprehensive and cross-sectional risk management and works
to strengthen business continuity capabilities after appropriately
identifying and assessing the risks associated with businessactivities. Specifically, the Group classifies and evaluates risks
based on management strategies and operational processes,
identifies key risks that may have a significant impact on theGroup’s financial position, operating results, and cash flow
conditions, and ascertains the degree of impact of those risks.

▎Environmental and Resilience Committee

We formulate environmental policies aimed at maintaining
and improving the global environment through our businessactivities, and formulate a business continuity plan (BCP) in
anticipation of situations that may cause significant damage,such as large-scale disasters and the outbreak of new viruses.
Specifically, through ISO and BCP activities, we share
information on environmental laws and regulations, formulate
and develop disaster prevention plans, respond to disasters,
and conduct drills.

▎Export Administration Committee

In order to improve compliance related to overseas
transactions and exports in particular, the Export
Administration Committee established the Safe Export
Management Guidelines as internal standards related tocompliance of export laws and regulations. This committee is
responsible for raising awareness and monitoring activities.

▎Internal Control Committee

We have established internal controls for the entire Group,internal controls for the settlement of accounts, financial reporting
processes and operational processes, and internal controls
for overall IT and operational processes. In order to ensure thereliability of financial reporting, we identify risks that may leadto false statements, and take effective measures to reduce theoccurrence of such risks for matters of high importance.

■Key Risks Assumed
Main risks recognized with the potential to have a material impact on financial position, operating results, and cash flow
Risk item

1. Economic fluctuation risk
2. Share price fluctuation risk
3. Interest rate fluctuation risk
4. Credit risk

5. Exchange rate fluctuationrisk
6. Compliance risk
7. Risk related to information
systems and information
security
8. Product liability risk
9. Country risk

Overview

Countermeasures to mitigate risk

Risk in the event of unforeseen changes in the economic trends in industrial
equipment- and construction-related investments

We are focusing on the expansion of new areas and new markets outside
Japan

Risk in the event of changes in the interest rate for interest-bearing debt
with variable interest rates

In some cases, we may convert interest-bearing debt from variable interest
rates to fixed interest rates, etc.

Risk in the event of changes in share prices

Risk in the event of credit extended to business partners inside and outside
Japan involving credit losses
Risk in the event of changes in the exchange rate in import and exporttransactions

Risk in the event of major changes in or application of unexpectedinterpretations of relevant laws and regulations, including laws andregulations related to business activities

Risks such as leaks of confidential corporate information or personal
information due to unexpected unauthorized external access or invasion
by a computer virus, as well as non-operation of information systems due
to damage to system equipment or issues with communication lines froma natural disaster or an accident
Risk in the event of product defects that lead to a large-scale recall or
product liability compensation

Risk that it will be difficult to collect receivables or investments andloans due to policy changes or changes in the political and economic
environment of counterparty countries overseas

10. Natural disaster risk, etc.

Risk of shutdown of business site functions, damage to equipment, andinterruptions in the supply of power and other services in the event ofa natural disaster, such as an earthquake or large-scale flooding, or an
unexpected outbreak of an infectious disease, such as a new virus

11. Climate change risk

Risk of stronger legal regulations and regulations on provision of products
associated with climate change

We are reviewing our shareholdings as appropriate in accordance with our“Securities Investment Guidelines.”
We are implementing credit management in accordance with internalmanagement regulations.
We are executing exchange forward contracts for import and exporttransactions in foreign currencies.

In addition to establishing an ethics policy and code of conduct, we haveestablished an Ethics and Compliance Committee, which is under the directcontrol of the Representative Director, to ensure thorough compliance andprovide guidance throughout the Group.
In order to promote information sharing and business efficiency, we haveconstructed and operated an information system, and in order to ensure thesafety of information system operations, we have established information
security operating rules and are thoroughly tackling crisis management
responses.
We are engaged in the manufacture and sale of household appliances, andwe take every precaution to ensure the quality of these products, as well as
carrying product liability insurance.
We are responding carefully based on various information regarding thecountry risks that can be anticipated, and making efforts to manage andhedge risks, such as carrying trade insurance.

In order to continue our business activities, we have formulated a business
continuity plan (BCP), introduced a safety confirmation system, prepared adisaster countermeasure manual, and implemented earthquake resistancecountermeasures, and are conducting disaster drills, etc.

Through all of our business activities, the Group is working to solve social
issues by promoting an environmental business that sells and disseminates
equipment and systems that contribute to the global environment
both domestically and overseas, with the aim of achieving sustainable
development that aims for a balance between maintaining a sound global
environment and achieving economic growth.

59

YUASA INTEGRATED REPORT 2023

Data

Key Financial Data■︎Financial Data
Net sales
Operating profit

Unit

millions ofyenmillions ofyen

Securities Reporthttps://www.yuasa.co.jp/ir/library/asr.html

FY2012400,252

FY2013442,213

FY2014

441,723

FY2015442,042

FY2016446,335

FY2017

461,749

FY2018493,627

FY2019491,348

FY2020432,185

FY2021*

462,725(fiscal year)

FY2022504,806

7,310

9,518

9,815

10,357

10,923

11,402

12,517

11,871

8,983

11,88014,599

7,827

9,782

10,353

11,03911,704

12,14913,437

12,804

10,011

11,744

15,382

5,276

5,483

7,494

7,190

7,777

8,261

9,038

8,950

6,930

8,058

10,079196,740

205,669

204,897

202,891

216,984

235,022

247,747

237,071

237,487

259,413271,218

32,35722,296

11,935

4,972

3,117

3,138

3,048

4,290

4,472

3,709

3,691

0.09

(0.10)(0.37)(0.45)(0.47)(0.46)(0.44)(0.49)(0.42)(0.54)(0.51)

millions of
yen

5,729

9,407

12,476

9,114

11,908

6,645

4,387

12,970

5,982

10,2138,338(3,329)

(880)

3,550

(589)

(3,652)(1,355)(873)(2,843)(3,509)4,776(2,845)(4,323)(11,782)(11,810)(8,982)(5,501)(2,418)(3,182)(3,509)(3,713)(3,553)(6,890)

yen

24.21

250.78340.82326.27352.45373.22408.27403.55313.03364.54466.23

BPS (net assets per share)yen

172.812,010.64

2,369.99

2,573.88

2,910.02

3,236.29

3,464.20

3,635.18

4,057.16

4,160.75

4,483.99

Dividend per share

yen

6

6

―

100

95

110

140

150

100

123

140

ROA (return on assets)

％

4.0

4.9

5.0

5.4

5.6

5.4

5.6

5.3

4.2

4.7

5.8

ROE (return on equity)

％

20.8

13.4

15.6

13.2

12.9

12.2

12.2

11.4

8.1

8.9

10.8

Equity ratio

％

19.1

21.4

25.5

28.0

29.6

30.5

30.9

34.0

37.7

35.5

34.9

Total payout ratio

％

24.8

23.9

24.9

30.6

27.0

29.5

34.3

37.2

31.9

33.7

67.0

Ordinary profit

Profit attributable to owners ofparentTotal assets

Interest-bearing debt
Net debt to equity ratio

millions ofyenmillions ofyenmillions ofyenmillions of
yen
times

Net cash provided by (used in)operating activities

millions ofyen

Net cash provided by (used in)financing activities

millions ofyen

Net cash provided by (used in)investing activities

EPS (basic earnings per share)*Net sales from FY2021 onward show figures after the application of the Revenue Recognition Accounting Standard.

60

YUASA INTEGRATED REPORT 2023

Data

Non-financial Data

Scope: [Non-consolidated] YUASA TRADING CO., LTD.
[Group companies] S ubsidiaries and affiliates(excluding affiliates accounted for by the equity method)■Environment (consolidated)

CO2 emissions (Scope 1 & 2)

[Non-consolidated]

Unit

Scope 1

t-CO2

Scope 1&2

t-CO2

Scope 2

Scope 1t-CO2[Non-consolidated + Group companies]

Scope 1&2

t-CO2

Scope 1&2

CO2 emissions (Scope 3*1, 2)

Emissions related tologistics and data centers

－

2,257

－

3,020

－

4,425

－

－
－

1,405

－

FY2020

t-CO2

1,232

2,204

－

Unit

1,025

1,261

1,953

t-CO2

FY2022

943

1,054

t-CO2

Scope 2

FY2021

899

t-CO2[Group companies][Non-consolidated]

FY20206,682

FY2021735

FY2022688

639

ESG Data
https://www.yuasa.co.jp/en/sustainability/esg/

Unit

Full-time employees: Average annual income*4(Male)(Female)Full-time employees: Percentage of average annual income received by females*

4, 5Contract and part-time employees: Percentage of average annual income received by females*4

All employees: Percentage of average annual income received by females*4
Average age*3

Average length of service*3
Percentage of return to work after childcare leavethousandsof yenFY2020ー

FY2021ー

thousandsof yen

ー

ー

%

ー

ー

thousandsof yen

ー

ー

%

ー

ー

years old

38.0

38.4

%

ー

ー

FY2022

7,950

9,479
5,315
56.1

53.9
55.4

38.7

(Male) years old

39.3

39.4

39.7

years

12.3

12.8

12.8

(Female) years old(Male)(Female)

years
years
%

36.0

37.0

13.4

13.5

10.8

11.8

90.0

100.0

31

35

37.2

13.5
11.8

100.0

*1	Due to boundary changes, CO2 emissions from Scope 1 and 2 related to logistics and data centers, which were included in the figures disclosed in FY2020 and
FY2021, are disclosed as Scope 3 (the above Scope 3 figures are CO2 emissions from logistics and data centers only).
*2	For other Scope 3 emissions, we are currently calculating emissions from manufacturing products we handle, fuel and energy activities not included in Scope
1 and 2, and emissions related to our employees commuting to work.

Percentage of male employee taking childcare leave and leave for the purpose of childcare
Employees working shortened hours

persons■Society (non-consolidated)

Average hours of labor*3

hours

2,013

1,977

1,955

Average time of leaving office (non-management employees)*3

time

18:25

18:29

18:27

%

100.0

100.0

100.0

Number of employees*3 (figures in parentheses are consolidated)
Number of employees in comprehensive work position

Unit

FY2021

FY2022

persons 1,079（2,487） 1,074（2,489） 1,103（2,533）
644

644

660

Average time spent in office (excluding breaks) (non-management employees)*3

persons

781

786

795

Stress check rate*3(Male) persons

Percentage of female employees in comprehensive work position
Percentage of female employees in management position

32

cases

59

57

persons(Male) persons%

New graduate general office work employees (total)

persons

Number of employees with disabilities

persons

%

43

32

48

43
5

10.4

27

28.3

16

44
15

48
43
5

10.4

10

28.4

19

%

Number of negligent incidents of injury or death*3

33

75

1.5

hours
persons

persons

1.2

52.1

Number of fatalities*3

4.2%

Percentage of health checkups*3

%

762

4.1

(Female) persons

Percentage of permanent employees who are mid-career recruits

30

754

443

3.8

(Male) persons

Percentage of new graduate female employees in comprehensive work position

751

430

%

(Female) persons

New graduate employees in comprehensive work position (total)

435

50.0

time

Average time of office arrival (non-management employees)*3(Male) persons(Female) persons(Female) persons

New graduate employees (total)

FY2020Percentage of taking paid leave*3

%

1.9

35
22

39
35
4

10.3

18

29.9

20

Number of fatal incidents*3

Number of occupational injuries*3

34.3

56.2

8:26

8:26

8:58

9:02

100.0

100.0

0

0

0

cases

0

0

persons

Number of Directors (including Outside Directors)
Percentage of female Directors (including Outside Directors)

Unitpersons

1(Male) persons(Female) persons%

FY2020

10
9
1

10.0

46

62.8

8:28

8:58

100.0

0

0

0

0

0

*3: Excludes seconded employees.
*4: Excludes overseas seconded employees.
*5: There is no wage difference between men and women who have the same role grade age and evaluation in the same job duties.

■Governance

78.1

FY2021

8
7
1

12.5

0

FY2022

8
7

1

12.5

61

YUASA INTEGRATED REPORT 2023

Data

YUASA TRADING Group Network

8 branch offices
13 branches(as of March 31, 2023)

10 business offices

11
12
13

● Branch offices■ Branches

1
2

5
4

10

6

3

9

7

Business offices

8

Domestic Network● Head Office / Kanto Branch Office● Hokkaido Branch Office

Takasaki Business Office

Utsunomiya Business Office● Tohoku Branch Office■ Higashi-Kanto Branch■ Niigata Branch■ Yokohama Branch■ Koriyama Branch■ Nagano Branch

Matsumoto Business Office● Kita-Kanto Branch Office

Nishi-Kanto Business Office■ Shizuoka Branch

Hamamatsu Business Office■ Okazaki Branch● Chubu Branch Office■ Hokuriku Branch

Kanazawa Business Office■ Kyoto Branch■ Shikoku Branch

Matsuyama Business Office● Chugoku Branch Office

Yonago Business Office● Kansai Branch Office● Kyushu Branch Office■ Himeji Branch■ Okinawa Branch

Kobe Business Office■ Okayama BranchGroup Companies in Japan

Kagoshima Business Office● KOKKO CO., LTD.

● MARUBOSHI CO., LTD.

● FUJI QUALITY HOUSE CO., LTD.

●YOUR TECHNICA CO., LTD.

●TAKACHIHO CORP.

●YUASA NENRYO CO., LTD.

●YUASA NEOTEC CO., LTD.

● ROBOT ENGINEERING CO., LTD.
● NAKAGAWA KINZOKU CO., LTD.
● NAGAISANGYO CO., LTD.

●YUASA PRIMUS CO., LTD.
●YUKO CORPORATION●SANEI CO., LTD.

● FUSHIMAN SHOJI CO., LTD.
●YUASA QUOBIS CO., LTD.

●URAYASU KOGYO CO., LTD.
●YUASA LUMBER CO., LTD.

●YUASA MACROS CO., LTD.

17

14

● MARUKEN SERVICE CO., LTD.
● CHUBU IBI CO., LTD.

●YUASA SYSTEM SOLUTIONS CO., LTD.

●YUASA BUSINESS SUPPORT CO., LTD.
●connectome.design inc.

10 countries
12 companies
23 sites

Overseas Network
China● YUASA TRADING (SHANGHAI) CO., LTD. 1[Headquarters] Shanghai[Branches] Dalian Branch/Tianjin Branch/Suzhou Branch/
Guangzhou Branch

Taiwan● YUASA TRADING (TAIWAN) CO., LTD.
[Headquarters] Taipei 2[Liaison Office] Taichung 3

Thailand● YUASA TRADING (THAILAND) CO., LTD.
[Headquarters] Bangkok 4[Branch] Sriracha 5● YUASA ENGINEERING SOLUTION (THAILAND) CO., LTD.
[Headquarters] Bangkok 6

15

18

The Philippines● YUASA TRADING (PHILIPPINES) INC. 9[Headquarters] Manila

Vietnam● YUASA TRADING VIETNAM CO., LTD.
[Headquarters] Ho Chi Minh City 10[Branch] Hanoi 11

India● YUASA TRADING INDIA PRIVATE LIMITED[Headquarters] Gurgaon 12[Branch] Bangalore 13

U.S.

● YUASA MECHATRONICS (M) SDN. BHD. 7● YUASA-YI, INC.
[Headquarters] Chicago 14[Branch] Cincinnati 15
South Carolina 16
New England 17

Indonesia● YUASA SHOJI MEXICO. S.A. DE C.V. 18[Headquarters] Leon

Malaysia● NICHI-MA SEIKO REMANUFACTURING (M) SDN. BHD.
[Headquarters] Kuala Lumpur● PT. YUASA SHOJI INDONESIA 8[Headquarters] Cikarang

Mexico16

62

YUASA INTEGRATED REPORT 2023

Data

Share Information■Total number of authorized shares
40,000,000 shares■Total number of issued shares
23,155,882 shares(including treasury share of 1,870,205 shares)*1 A
 t the meeting of the Board of Directors held at May 12, 2023, the company
resolved to cancel treasury shares in order to further improve capital efficiency
and share value by reducing the total number of issued shares, and thecancellation was completed in May 31, 2023.
As a result, the total number of issued shares of the company after thecancellation became 22,100,000 shares.

■Number of shareholders

Company Profile(as of March 31, 2023)

7,412*2 The number of shares constituting one unit is 100 shares.

■Major shareholders (top 10)
Shareholder name
The Master Trust Bank of Japan, Ltd.

Number ofshares(thousand shares)

Ratio ofshareholding
(%)

951

4.46

2,591

BNYM AS AGT/CLTS 10PERCENTSTATE STREET BANK AND TRUST CLIENT OMNIBUS
ACCOUNT OM02 505002

900

Yuasa Tankyo Shareholding Association

Shares heldin own name�.��％Individuals/
other��.��％

Custody Bank of Japan, Ltd.

4.22

840

HIKARI TSUSHIN, INC.

3.95

708

West YUASA Yamazumi Shareholding Association

3.32

688

East YUASA Yamazumi Shareholding Association

3.23

627

2.94

528

Sumitomo Mitsui Banking Corporation

2.48

494

2.32

Financial
institutions
��.��％*3 The number of shares shown in the above list are rounded down to the nearest thousand shares.

Financial service
providers�.��％*6 Of the trust bank holding listed above, the number of shares related to trust operations of trust banks is as follows.

Other corporations
��.��％

Foreigncorporations,etc.
��.��％

4.22

899

Yuasa Trading Employee Shareholding Association■Shareholder ratio

12.17*4 The ratio of shareholding is calculated by deducting treasury stock and rounded down to the second decimal place.
Further, the company shares (171,000 shares) held by the Board Incentive Plan is not included in treasury shares.

2,591

Custody Bank of Japan, Ltd.

840

(thousand shares)(thousand shares)

Share price (yen)Volume

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YUASA TRADING CO., LTD.

■ Founded

March 1666

■ Share capital¥20,644 million■ Headquarters	7, Kanda-Mitoshirocho,
Chiyoda-ku, Tokyo■ Established

June 25, 1919

■ Number of employees	2,533 (consolidated)
1,103 (non-consolidated)■ Stock exchange listing	Prime Market ofTokyo Stock Exchange■ Security code

8074

■ Fiscal year	April 1 – March 31 of
the following year
(fiscal year ends in March)[Banking] 
Sumitomo Mitsui Banking Corporation[Life insurance] 
SUMITOMO LIFE INSURANCE COMPANY[General insurance] Mitsui Sumitomo Insurance Company, Limited[Securities]
Nomura Securities Co., Ltd.

■Trends of stock price and volume
�,���■ Company name

■ Main financial institutions*5 The company holds 1,870,000 shares as treasury share, which is not included in the above table.

The Master Trust Bank of Japan, Ltd.

April 2013

April 2015

April 2017

April 2019

April 2021

(as of March 31, 2023)

April 2023

�

YUASA TRADING CO., LTD.

YUASA INTEGRATED REPORT 2023
YUASA TRADING CO., LTD.
7, Kanda-Mitoshirocho, Chiyoda-ku, Tokyo 101-8580