24YUASA 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)