10YUASA 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

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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”
●
●

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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.

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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

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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