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 MarketHeadquarters

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-savingproducts.

▎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 waterheaters 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 TimberDivision)

Takaomi Omura

Director,
Chief General Manager of Construction MarketHeadquarters

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.