21YUASA 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
Sfor 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 themanagement foundations for human resources, infrastructure,compliance, and governance. Each one of the three-year mediumterm management plans under the 2017 YUASA VISION 360 hasset strengthening our management foundations as a prioritymatter. 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▎TTransformationWe 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,” “ChallengingSpirit,” 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

22YUASA 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 billionfor 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

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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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