YUASA GROWING REPORT 2021

TSUNAGUService Integrated Shosha Group

Integrated Report 2021
YUASA GROWING REPORT“SUMIYA Ukeainashi”

Share Information (as of March 31, 2021)―Service With Good Products and Well-Thought-Out Advertising―
SUMIYA (VI) Shichizaemon (1758-1836),
the sixth owner of the SUMIYA and brilliant salesman,
inscribed “SUMIYA Ukeainashi” (meaning quality not guaranteed) on*

Total number of authorized shares
40,000,000 shares

his razor that had excellent cutting capabilities.
He distributed this as sample to barber shops in towns along
the Tokaido Road.

Shareholder ratio

Total number of issued shares
23,155,882 shares(including treasury share of 868,978 shares)

Users were surprised by the cutting ability and wondered
how amazing the guaranteed razors would be if
the SUMIYA’s not guaranteed razors were this good.
The razors gained a reputation and the name of
the SUMIYA spread across Japan.

Financial institutions
24.59%

Shares held in own name
3.76%
Individuals/other23.77%

Financial service
providers
0.64%
Other corporations
19.52%

Foreign corporations, etc.
27.72%

Number of shareholders
7,676* The number of shares constituting one unit is 100 shares.

* Company name of YUASA TRADING during the Edo era

Major shareholders (top 10)

Ideals Passed Down the Generations

Number of shares Ratio of shareholding
Ideals to Passthe
Generations(thousandDown
shares)(%)

Shareholder name
Custody Bank of Japan, Ltd.

Spirit of Service With Good Products

The Master Trust Bank of Japan, Ltd.
STATE STREET BANK AND TRUST CLIENT OMNIBUS
ACCOUNT OM02 505002
Yuasa Tankyo Shareholding Association

TSUNAGUBBH FOR FIDELITY PURITAN TR: FIDELITY SR
INTRINSIC OPPORTUNITIES FUND
West Yuasa Yamazumi Shareholding Association

2,341
1,651

10.50
7.41

911

4.08

822

3.68

675

3.02

1. The number of shares shown in the above list are rounded
down to the nearest thousand shares.
2. The ratio of shareholding is calculated by deducting treasury
stock and rounded down to the second decimal place.

Value Creation

3. The Company holds 868,000 shares as treasury share,
which is not included in the above table. Further, theCompany shares (196,000 shares) held by the Board
Incentive Plan is not included in treasury shares.

632
2.83
4. Of the trust bank holding listed on the left, the number of594
2.66
shares related to trust operations of trust banks is as follows.
Realizeasustainable
societythrough“TSUNAGU”
value
creation
East Yuasa Yamazumi Shareholding Association
587
2.63
Custody Bank of Japan, Ltd.
2,341,000 shares
The Master Trust Bank of Japan, Ltd.
1,651,000 sharesthat connects
YUASA TRADING Employee Shareholding
Association people with
483 people, people
2.16 with products,
DAIKIN INDUSTRIES, LTD.
452
and people with information
and2.02
technology.
Sumitomo Mitsui Banking Corporation

Trends of stock price and volume(thousand shares)

8,000

VolumeShare price

6,000

4,000

4,000

3,000

2,000

2,000

0

Apr. 2012

Apr. 2014

Apr. 2016

Editing Policy••

Basic philosophy
The actual results of the fiscal year ended March 31, 2021 (April
1, 2020 to March 31, 2021) is the main target of this report.
A portion of results before or after this period are also included.
Scope of items reported
In principle, the results of YUASA TRADING and 42 groupcompanies (34 consolidated subsidiaries) as of March 31,
2021 are reported.

CONTENTS
Top Message

2

Chapter 1

Two Driving Forces Connecting Us to the Future
Driving Force 1

Promotion of Sustainability Management
Driving Force 2

Promotion of DX

6
10

Chapter 2

Strategy Connecting Us to the Future

12

(yen)

5,000

Chapter 3

Business Foundation to Connect to the Future

Value Creation Process, Financial Strategy,

Environmental initiatives, Realizing a resilient society,

Current YUASA TRADING Group, Growth Strategy,

Creating organizations that utilize human resources,

Segment Business Overview

Corporate Governance

39

Apr. 2018••

Apr. 2020

1,000

Sept. 2021

Regarding notes to consolidated financial statements
This integrated report has not included the notes toconsolidated financial statements. Please see “Securities
Report” available on the Investor Relations - IR Library on thecorporate website for these notes.

Precautions on forward-looking statements
In the statements of this integrated report, statements other thanhistorical facts are forward-looking statements that reflect
YUASA TRADING’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.
Financial data, YUASA TRADING Group Network,
Date ofpublishing
Corporate
Profile,Share Information
54
November 2021

•

1 61

Integrated
Integrated
ReportReport20212021

Top Message

2. Progress of Mid-term Management Plan “Growing Together 2023”
In April 2020, we announced the Mid-term Management
Plan “Growing Together 2023,” which ends in the fiscal
year ending March 31, 2023, as the second stage of“YUASA VISION 360.”

YUASA VISION 360

Realizing a sustainable
society through“TSUNAGU” value creation
Representative Director, President & CEO

We established “YUASA VISION 360” as our 2026 vision
for the 360th anniversary of the founding of the Company.
This plan established numeric targets of consolidated net
sales of ¥600.0 billion, ordinary profit of ¥20.0 billion,
ordinary profit to net sales ratio of 3.3%, ROE of at least
11.7%, and shareholder return ratio of at least 33.0% for
the fiscal year ending March 31, 2026. It also aims for thegroup to grow into a “TSUNAGU Service Integrated
Shosha Group” with an industry leading profit structure.

Growing Together 2023

Hiroyuki Tamura

Create a sustainable management foundation
through “comprehensive capabilities,”“challenges,” and “communication”

YUASA VISION 360(Vision for 2026 (360th anniversary of
the founding of the Company))

Grow into a “Since our founding, the Company had held a corporate
philosophy based on three elements, “Honesty andTrust,” “Enterprise and Innovation” and “Regard for the
Individual.” “Honesty and Trust” and “Regard for the
Individual” are part of a core philosophy that sustains
our business and company organization. “Enterprise andInnovation” is meant to consistently develop and operatebusinesses based on the needs of society and the times.
In other terms, we have maintained our business over
350 years based on a corporate philosophy of making“change” a constant part of our company.
Resolving social issues through business is a role that thesociety and stakeholders demand of us. I am proud tosay that the history of YUASA TRADING is one that facedsocial issues in Japan and the world head on. I believethat our societal value lies in creating new value by
connecting (“TSUNAGU”) people with people, people
with manufacturing, and people with information/technology.
In the field of manufacturing, we have operated hubs incountries in Southeast Asia since Japanese companies

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Integrated Report 2021

In the field of home building, we have expanded out
lineup of solar power generation systems and highperformance energy-saving housing equipment. We
proposed environmentally-friendly, pleasant homebuilding by connecting these products and systems.
In the field of environment building, we established theYES (YUASA Environment Solution) Division, a
specialized department for Eco & Energy Solutions in
2009, pioneering this area in the industry. We havesupported the ESG management of our clients byconnecting the know-how we gained fromenvironmental consulting for hundreds of companies.
In the field of town building, we started a resiliencebusiness from 2014 with “disaster prevention, disastermitigation, and BCP” as our keywords. We generated
new solutions that contribute to safe and secure
town-building by connecting the technology of affiliatedmanufacturing companies.
We will continue to take efforts to resolve social issues
through business with “TSUNAGU” value creation.

Numeric targets (consolidated)
Mar. 2021
results

Mar. 2023
plan

Mar. 2026
plan▶Net sales¥432.1 billion ¥545.0 billion ¥600.0 billion▶Ordinary profit

Net sales¥545.0 billion¥600.0 billion

Ordinary profit

Ordinary profit

Investments

began to enter foreign markets in the 1990s. By
connecting the manufacturing sites in Japan and theworld, we have contributed to manufacturing across theworld.

Service Integrated ShoshaGroup” with industry-leading profit structure

Net sales

Contribute to society through manufacturing,home building, environment building, andtown building

TSUNAGU

Growth businessstrategy

Growth businessstrategy

1. Direction the Company’s Group seeks

The quantitative targets of the Mid-term Management
Plan are as follows: The pie chart on the right shows thegoals for 2026. The pie chart of the left shows the goals
for Growing Together 2023. By strengthening the ExistingCore businesses and increasing the ratio of the nine
Growth businesses, we aim for future consolidated net
sales of ¥600.0 billion and ordinary profit of ¥20.0 billion.

¥16.4 billion¥20.0 billion

2.3%

3.0%

3.3%

▶ROE

11.4% or more 11.7% or more

▶Shareholder return ratio■ Overseas ■ Robot (AI) & IoT ■ Eco & Energy Solution ■ New Distribution ■ Resilience & Security■ Agriculture Process ■ Long-term Care & Medical ■ Food Equipment ■ Sharing ■ Existing Core businesses

In the Overseas Business, we are focused onstrengthening our transactions with local capitalcompanies. We have positioned Thailand as our highest
priority, where we will establish a Construction Divisionin addition to the Industrial Division and Living
Environment Division that are already in place. Our aim
is to grow this as the central Southeast Asia site.

▶Ordinary profit to net sales ratio

8.1%¥17.0 billion(From April 2020 toMarch 2023, 3 years)

Status of progress of the Growth business¥10.0 billion ¥16.4 billion ¥20.0 billion

31.9%

33.0% or more 33.0% or more

recently provided support for Kanazu Murata
Manufacturing Co., Ltd. from the Murata Manufacturing
Group to create a factory wholly powered by renewableenergy. In addition to providing equipment such as solar
power generation modules, power conditioners, andcarports, we conducted the prime construction work of
the project, assisted customers in achieving carbon
neutrality, and reduced the burden on customers for
power supply networks that are part of the social
infrastructure.

In the Robot (AI) & IoT Business, we developed the
add-on robot system “Robo Combo” for users who are
considering introducing robots. We have started selling
this product this fiscal year. By connecting robot and tool
manufacturers with ROBOT ENGINEERING CO., LTD., thesystems integrator of the Company’s Group, we are able
to realize automation of production facilities at low costs
and in a short time.
In the Eco & Energy Solution Business, we promote thetotal support of the ESG management of companies. We

Kanazu Murata Manufacturing Co., Ltd. (Fukui Prefecture), where the Company
supported efforts to create a factory wholly powered by renewable energy

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Top Message

In the Resilience & Security Business, we promoted
development of original projects that address social
issues based on themes of disaster prevention, disastermitigation, and BCP. We developed aluminum privacy
fence Yachibei® used for improving concrete walls in ajoint product with our business partners. This product isbeing adopted more and more as it uses the pillars andfoundation of the existing concrete wall while reducing
costs, shrinking construction time, and constraining theemission of industrial waste.
In the Long-term Care & Medical Business, our groupsubsidiary FUJI QUALITY HOUSE CO., LTD. developed thecontainer house, Infection Reduction House, which wasdeveloped as a simple examination room for COVID-19
or for receiving outpatients who contracted the virus.
This product has been used in a wide array of COVID-19
immunization venues and hospital facilities nationwide.
Medical container houses have gained attention fromoverseas developing nations. In the future, we will
expand this business overseas.
In the Agriculture Process Business, we have beensuccessful in promoting proposals for fluorescentlighting that invigorates the immune capabilities ofstrawberries with UV-B (ultraviolet rays).
In the Food Equipment Business, we exercisedengineering functions on the theme of “food safety” andmade total proposals for the automated production line
for food product factories.

Core business- Strengthen functions of trade businessIn the Core businesses, we strove to strengthen IT/
logistics functions in the trade business to “deliver
needed products at the needed times.”
In the e-commerce site “Growing Navi” the Company
operates, we started operating a B-to-B-to-U (User)
system that connects the Company, sales partners, andusers from this fiscal year. We are promoting the use ofthis system as a digital sales tool in the COVID-19 era forsales partners who are limited in visiting their users.
Concept of Growing Navi B to B to U
Suppliers

Approx. 550
companies
2.5 million
items

The Company (B)Sales partners (B)Users (U)Approx. 2,000
companies

Company A
Company B
Company C...

(Sales partners
with IDs)

For logistics functions required for e-commerce, we arefocused on processing logistics to shrink delivery times.
In our Kanto Distribution Center (Kashiwa City, Chiba
Prefecture), we manufacture and assemble automatic
valves and chain slings. From this fiscal year, this center
began providing services for air conditioning renovation
work and cleaning of oil from products before shipping.
We will support these efforts to further shrink delivery
times.

In the Sharing Business, we started a driver andagriculture machine sharing service to be used throughagriculture corporations.

October 2021 in order to further advance themanagement foundation we have passed down overmore than 350 years.
We aim to be carbon neutral* across the entire YUASATRADING Group by the fiscal year 2030 to achieve“harmony with the global environment.” We also aim torealize a sustainable society through “business activities
for Service with good products” and “management that
respects humanity.” To realize our Sustainability
Declaration, we established the Sustainability Promotion
Committee, chaired by the Representative Director, andthe Sustainability Promotion Office in the Corporate
Planning Department, as our promote structure. We willdevelop an action plan and execute upon it.
Recognizing climate change as an importantmanagement issue, the Company’s Group plans to
declare support for the TCFD (Task Force on
Climate-Related Financial Disclosures). We are taking aproactive approach to information disclosure on how
climate change affects our Group business activities
based on the recommendations of the TCFD.
* Scope of businesses subject to carbon neutrality: [Scope 1] Direct CO2
emissions from YUASA TRADING and group companies, [Scope 2] Indirect
CO2 emissions corresponding to generation of energy used by each company

Initiatives to strengthen
corporate governance
We are conducting initiatives to strengthen governanceand risk management based on the application of the
Revised Version of Japan’s Corporate Governance Code.
We elected three Outside Directors at the 142ndOrdinary General Meeting of Shareholders held in June

2021 in order to increase the transparency of corporate
governance, raising the percentage of Independent
Outside Directors in the Board of Directors. We are also
selling shares based on guidelines for holding standards
in order to reduce the strategic shareholdings on an
ongoing basis. In addition, we are executing initiatives toimprove the effectiveness and transparency of the Boardof Directors, such as disclosing the skill matrix of Director
candidates and changing the decision-making process
for individual Director remuneration.

4. Sustainable development
3. Build foundation for growth
DX (digital transformation)
promotion project begins
In the Mid-term Management Plan “Growing Together
2023,” we are promoting a digital transformation acrossthe Group as a means of strengthening our managementfoundation. We aim to convert all of the knowledge andknow-how the Company’s Group has amassed into data
as well as concentrate data from business partners andthe general market. By applying AI to this data, we willdevelop new services and products that address social
issues as we realize a transformation From “Single Item

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Integrated Report 2021

Business” to “Integrated Product-Service.”
In September 2021, we selected 23 DX promotion
members in-house and began specific initiatives. In the
future, management will take the lead and strive toestablish a competitive advantage utilizing data anddigital technology.

Sustainability Declaration
The Company’s Group announced the “Sustainability
Declaration” based on our corporate philosophy in

Fostering a culture based on the keywords“challenge,” “comprehensive capabilities,”and “communication”
My greatest mission is to build a managementfoundation that can survive periods of extreme change. I
think that the key factors for achieving this are“comprehensive capabilities,” “challenges,” and“communication.” Firmly positioning these elements
within our Group corporate culture is the key to shaping
the YUASA TRADING Group that will continue into the
future and reach the 400th anniversary of the foundingof the Company. I will take the lead in promoting thistransformation in our corporate culture and focus onbuilding a foundation for sustainable development.

We aim to maintain at least a 33.0% shareholder return
ratio, including ongoing and stable dividends, in order for
shareholders and investors to hold our shares for a longtime. While balancing business investments and returnto shareholders, we will maintain financial health as we
aim to increase share value by investing profits
generated through business activities in growthbusinesses and new businesses.
We truly appreciate your continued support.

Integrated Report 2021

5

Chapter

Two Driving Forces Connecting Us to the Future

Driving
Force

1. Promotion of Sustainability Management

Based on our corporate philosophy of “Honesty and Trust,” “Enterprise and Innovation” and “Regard for the Individual,”
YUASA TRADING Group has contributed to the further development of prosperous, humanitarian societies by valuing
mutually beneficial, symbiotic relationships in all countries and regions of the world, with a focus on maintaining
harmony with the global environment.
In order to further advance our management foundation passed down over 350 years, we enacted a “Sustainability
Declaration” based on this corporate philosophy and are proactively contributing to the construction of a sustainable society.

Materiality selection process
We have established the procedures below for important issues (materiality) that we will focus on to preserve
sustainable growth.

1. Extraction of issues

Based on our corporate philosophy and relationship with stakeholders, we conducted
initiatives for ESG (Environment, Social, Governance) and extracted issues needed toachieve the YUASA VISION 360 in each business division.

2. Setting priorities

Through dialogue with external experts, we created a materiality matrix (refer to page 8)
after organizing important areas based on sustainability direction.

Sustainability Declaration

3. Confirmation of
appropriatenessWe conducted discussions in the management meeting attended by Directors andSenior Executive Officers, as well as held hearings with major stakeholders andOutside Directors to confirm the appropriateness of measures.

1.
2.

3.

Harmony with the global environment

4. Identification ofmateriality

Materiality was determined by the Board of Directors.

We aim to be carbon neutral across the entire YUASA TRADING Group by the fiscal year
2030. We will also focus on creating a relationship of mutual benefits, respond to climatechange, and strive to reduce our environmental impact across the entire supply chain.

Business activities for Service with good products
Based on the mindset of “Service with good products” that has been passed down from thefounding of the Company, we conduct fair, honest, and reliable commercial transactions aswell as promote the creation of a safe, secure, and rich society with our stakeholders as a
“TSUNAGU Service Integrated Shosha Group.”Management that respects humanity
We operate diversity management that respects the individuality and human rights of
employees. We will develop as the corporate group where each employee can feel their work
is meaningful and is able to grow.

Discussions in forming the Sustainability Declaration
We believe sustainability is the resolution of social issues through business as targets in the “YUASA VISION
360.” A study team consisting of the Corporate Planning Department of the Company and outside experts
considered materiality, Sustainability Declaration details, promotion structure, and the action plan.

Major opinions and advice received at hearing to stakeholders• The resilience and environmental solutions as well as SDG initiatives at YUASA TRADING are more
forward-thinking, so we hope the company will continue to grow these areas further. (Business partner)• We hope to see proactive information disclosure about execution processes and specific action plans.
(Business partner)• We are not unfamiliar with the concept of materiality. Resilience is a keyword for Japan and a strength of YUASATRADING, so this can be utilized in future developments. (Financial institution)

Support for TCFD
Recognizing climate change as an important management issue, the YUASATRADING Group plans to declare support for the TCFD (Task Force on
Climate-Related Financial Disclosures). We are enhancing our information disclosure
on how climate change affects our Group business activities based on therecommendations of the TCFD.

We also discussed deploying the energy storing know-how from the Eco & Energy Solutions Businessin-house in order to proactively take efforts to calculate and reduce greenhouse gases.

6

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Chapter

Two Driving Forces Connecting Us to the Future ― Promotion of Sustainability Management

Materiality matrix

Sustainability Declaration Themes● Harmony with the global environment● Business activities for Service with good products● Management that respects humanity

Important items in YUASA VISION 360 and Mid-term Management Plan

Action plan

1.

(Areas to increase impact on society)

Extremely important● Respond to climate change (realizea resilient society)● Support sustainable manufacturing,home building, environment building,and town building● Contribute to decarbonization ofsociety through energy creation andsaving know-how● Support cyclical society(rental and sharing)● Create co-creation value - “Tsunagu”(Note) Scope 1: Direct greenhouse gas emissions though the business itself (consuming fuel, industrial processes)
Scope 2: Indirect emissions through use of electricity, heat, or steam supplied by another company
Scope 3: Indirect emissions not covered in Scope 1 or Scope 2 (emissions from another company related to business activities)(2) Respond to climate change (adaptation)a) Promote the Resilience & Security Businessb) Confirm the climate change risks of major sites and business partners in and outside Japan(3) Respond to climate change (mitigation)a) Promote the Eco & Energy Solution Business● Promote Robot (AI) and IoT Business● Strengthen relationship with business
partners (strengthen DX and logistics
promotion in and outside the Company)● Lower environmental impact throughcompany activities◦Initiatives to achieve carbon neutrality● Promote health management andcomfortable working environments
for the 400th anniversary of
the founding of the Company● Promote diversity (women, foreign
nationals, mid-career hires)● Enhance education and training(strengthen human resource
capabilities)

Important areas inside
the Company
Comparatively important

Extremely important

Sustainability management
promotion system
Along with the “Sustainability Declaration,”
we established the Sustainability Promotion
Committee in October 2021. This committee,
which is comprised of Directors and Senior
Executive Officers and chaired by the
Representative Director, will inquire andprovide advice about important sustainability
issues to the Board of Directors.
The administrative bureau is theSustainability Promotion Office, which wasestablished in the Corporate Planning
Department. It will collaborate with eachbusiness division, formulate policies, gather
and manage data related to ESG, andconduct improvement activities.

Integrated Report 2021

Board of Directors

Sustainability Promotion Committee(Committee Chairperson: Representative Director)

Governance Advisory
Committee

Administrative
bureauSustainability Promotion Office(inside Corporate Planning Department)

Support promotion

2.
3.
4.

Importance to the Company’s Group8(1) Calculate the CO2 emissions inside the YUASA TRADING Group and determine reduction targets. Evaluate
the financial impact and disclose as appropriate.
a) Calculate the CO2 emissions (Scope 1&2) b) Calculate the CO2 emissions (Scope 3) c) Comply with TCFD

Implement renewable energy

Reduce purchased electricity and CO2 emissions by consuming electricity generated by solar power on site with no CO2 emissions.

Promote energy-saving(operation and equipment)

Reduce purchased electricity and CO2 emissions by energy-saving, such as making operations improvements andupdating to more efficient equipment (lighting/air conditioning).

Switch to eco-friendly company vehicles Reduce CO2 emissions by switching to eco-friendly vehicles for sales and distribution.

Comparatively important

Importance to society/stakeholders● Realize a safe and secure society
through Service with good products

Harmony with the global environment

Collaborate

Each business division and group companies
Industrial Market Headquarters,
Living Environment Market Headquarters,
Construction Market Headquarters,
Management Administration,group companies in Japan,
and group companies overseas

Fix CO2 by company-owned forests

Fix CO2 by ongoing management of the Company’s Group-owned forests.

Purchase renewable energy

Reduce CO2 emissions by purchasing power generated by zero carbon renewable energy (power with no net CO2
emissions as offset by non-fossil certificates (credits), etc.).

Utilize emission credits

Offset emissions through CO2 emission credits held by the Company.

Business activities for Service with good products(1) Formulate transaction policy with business partners (2) Formulate action plan directed at compliance with transaction policy(3) Spread awareness of transaction policy to business partners and conduct a questionnaire to check on current situation

Management that respects humanity(1) Establish diversity policy and targets (2) Establish human rights policy and other policies(3) Consider conducting in-house education and training program and other initiatives; continuously conduct

Gathering, management, and disclosure of ESG-related data
Gather data related to ESGs and enhance information disclosure

Comment from expert
Across the world, more companies are making ESG investments assustainability becomes incorporated into company evaluations. More bondsthat take into consideration the environment and society are being issued inorder to raise capital. The revised Corporate Governance Code also calls forthe involvement of the Board of Directors in sustainability and the disclosureof climate change information. As such, the importance of sustainability
initiatives that address ESG (E: Environment, S: Society, G: Governance) isrising. This shift is not a transitory one, but a large internationaltransformation. Regulations and policies to encourage ESG-focusedmanagement are likely to continue.
Based on this background, the materiality of the YUASA TRADING Group finds
significance in initiatives in its main businesses, the Resilience & Security
Business, the Eco & Energy Solution Business, and in addressing management
issues in SMEs that it often transacts with. According to the Sustainability
Declaration, it will be more active in communication with stakeholders.
Therefore, I expect new innovation to be generated that will further
strengthen its main business.

President, FINEV inc.

Ms. Miki Mitsunari
After graduating from Keio University, she
acquired a master’s degree from Universityof Pennsylvania (Environmental Studies).
From 2021, she spent ten and a half years at
a major think-tank performing environment
and CSR consulting, and then establishedFINEV inc. She currently provides
ESG-related consulting and support related
to the environment and climate change.
She concurrently serves as outside director
at YAMADA HOLDINGS CO., LTD. and Funai
Soken Holdings Inc., and part-time director
at the Japan Accreditation Board (JAB).

Integrated Report 2021

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Two Driving Forces Connecting Us to the Future

Chapter

Driving
Force

2. Promotion of DX

IT digital investments

Becoming a digital trading company with
“Integrated Product-Service” through DX promotion
We plan to shape our history and experience into data as much as possible as well as centralize market data and theinformation from our network of current suppliers and sales partners. By analyzing this data with AI, we can link it to newservices and proprietary product development that solves social issues to realize the shift From “Single Item Business” to“Integrated Product-Service.”
We aim to establish our competitive superiority utilizing data and IT technologies that no other companies possess.

Promote business originated in data
From the fiscal year 2022, we aim to establish an IT foundation shared across the global Group by 2026 based on eachof “offensive DX” and “defensive DX” strategies.

4.0 billion

Fiscal Year 2021

Establish
promotion structure

Offensive DX
Market•••Establish expert meeting
Form administrative bureau for
DX promotion project

Fiscal Year 2022 and later
Promote initiatives for both“offensive DX” and “defensive DX”

Propose DX
promotion plan••

FY2024/3 to FY2026/3

FY2021/3 to FY2026/3

Users

Operational
data/electricity
consumption
volumeCurrency
exchange
fluctuation

We aim to acquire data from various customer touch points and construct services froma customer perspective (new business model) by analyzing customer emotions andactions from compiled data.
Yamazumi
Shareholding
Association

TANKYOKAI
manufacturers

YUASA TRADING Group

Business
User map
partner
information

Customerprofileinventory
information

Orderhistory

Receivedorders/sales Receivables
Received and payables
orders/procure

Experttechnician
information

Inventory

HR data

Inquire/Sales
consult/
Estimate know-how
failed orders
proposals/price

Exhibition
visitors

Decision
workflow

Collaborate

Analog data
(papermedia/
voice, etc.)

Product
information(environmental
performance)

Compliancecheck
New productinformation

Form data

Site progress(image)GatherCompetition
trendsShared foundation

GatherOrdering
information

Collaborate

Electronic transactions/EC

Form DX promotion organization
Propose both offensive and defensive
DX promotion plan

Survey current status of businessissues, etc.

¥

Heading toward achieving YUASA VISION 360, we are promoting the separate phases of“offensive DX” and “defensive DX.”

Preferences/
population
trendsFiscal Year 2020

12.0 billion¥

FY2021/3 to FY2023/3

Market status/
overseas trends

We will develop a “business originated in data” to utilize our amassed data.

8.0 billion¥

OffensiveDX

Generate
new businesses

DefensiveDX

Digitalize core
operations for
digitalization

Delivery data
(information gathered
at distribution)

Becomekeystone of
supply network

Delivery data
(information gathered
at distribution)

Growing NaviEC (access log)

Yamazumi
Shareholding
Association,
sales partner
network

TANKYOKAI,
supplier
network

Strengthen DX promotion structure
Select DX promotion members
23 DX promotion members were selected across Japan andassumed their position in a ceremony in September 2021.

Shape the YUASA supply network through a shift to “Integrated Product-Service.”

We will promote DX in the YUASA TRADING Group by
deliberating company transformation initiatives that utilize
digital technology through projects that integrate the Sales
Division and Management Administration.

Defensive DX
President Tamura expresses expectations in the DX promotion member
nomination ceremony (center)

Made CAC Knowledge Co., Ltd. a consolidated subsidiary and launched
YUASA SYSTEM SOLUTIONS CO., LTD.
In February 2021, YUASA TRADING made CAC Knowledge Co., Ltd., which develops, maintains, and operates operations
systems, a consolidated subsidiary. This addition of a consolidated subsidiary will strengthen the Company’s Group in
the IT area, allow for smoother DX promotion, ensure the effectiveness of IT digital investments, and expand the
IT-related business. This will lead to higher medium- to long-term corporate value of the YUASA TRADING Group.

Establish global IT
environment for the Group

Digital human resource
training

Update core operations

We will establish a system
environment that will be thefoundation for YUASA VISION 360
and update the IT environment tobe shared across the global Group.

We will select personnel in chargeof DX to promote DX as acompany. We will train digital
human resources to deploy
businesses originated in data.

We will update our legacy
operating systems and improve
operational efficiency byseamlessly connecting operations
dispersed over various systems.

On April 1, 2021, the company’s name was changed to “YUASA SYSTEM SOLUTIONS CO.,LTD.” as it started anew.

10Integrated Report 2021

Integrated Report 2021

11

ChapterStrategy Connecting Us to the Future

Value Creation Process

Respond to social issues throughinnovation for a sustainable society

TSUNAGUStrengths developed“TSUNAGU” growth strategy

Value generated“TSUNAGU” value tothrough “TSUNAGU”

and business activities

through “TSUNAGU”

the future
Realize a sustainable society

Medium- to long-term vision

YUASA VISION 360

Strong relationship withsales partners and suppliers

Business activities(Social/affiliate capital)• Sales partners

Approx. 20,000 companies• Suppliers

Approx. 6,000 companies

Net sales

Shift From “Single Item Business” to“Integrated Product-Service” throughthe comprehensive capabilities of the Group• Yamazumi Shareholding Association
Approx. 3,000 companies
member companies• TANKYOKAI
member companies

6,000 companies

20,000 companies(TANKYOKAI
approx. 500 companies)(Yamazumi Shareholding Association
approx. 3,000 companies)

Approx.

Approx.

(Human capital)• Fair, true, and transparent transactions (compliance)• Develop professional human resources with enterprise spirit• Develop personnel and organizations that respect theindividuality and human rights of employees• Number of employees atconsolidated companies

Sales partners

Approx. 2,500

Resolve social issues through business(Intellectual capital/natural resources)

Integrated
Business Model• Industry-leading business area coverage• Expand engineering functions

2.1%

Ordinary profit

2.3%
6.9 billion

¥

8.1%

ROE
Shareholder
return ratio

cost reduction

10.0 billion

Ordinary profit to
net sales ratio
Profit attributable toowners of parent• Group companies skilled in specialty areas

31.9%

Environmental
measuresHomebuilding(Financial capital)

37.7%• Net debt to equity ratio-0.43 times• Basic earnings per share¥313.03* Results of the fiscal year ended March 31, 2021

Rich network in and outside Japan(Network capital)• Domestic sites

31 sites• Overseas sites

27 sites• Group companies in Japan

27 companies• Group companies overseas

14 companies in 10 countries

Environment P40

Society

Governance

P42

P48

Pro
ent
motio
n of Sustainability Managem

Honesty and TrustEnterprise andInnovation

Regard for the Individual

Corpo

Sharing* Results of the fiscal year ended March 31, 2021

• Provide engineering function• Provide information and logistics platform• Provide diverse group function

Stable financial foundation

Automation
Labor-saving,power-saving,¥• Provide coordination function through“Integrated Product-Service”• Solutions sales know-how

Integrated Report 2021

Manufacturing

Comfortable
lifestyle
BCP, disasterprevention/
mitigation

Business partner value• Strengthen trade business foundation(EC functions, logistics functions)• Equity ratio

8.9 billion¥

Social value• Business management based on twin engines of treadingbusiness and solutions businessSocial issues

432.1 billion

OPM

Suppliers

Social needs¥

Operating profit

Approx. 500 companies

Foster corporate culturethat takes on challenges

12

Economic value

Environmentbuilding
Security
measures
Quality control

Shareholder value• Profit • ROE • Shareholder return ratio

Employee value• Percentage of taking paid leave• Average hours of labor

Environmental, social value• Total expenditure amount for social
contributions• Amount contributing to greenhouse gas
reduction

Townbuilding

Health care

rate Philosophy

Integrated Report 2021

13

Strategy Connecting Us to the Future

Chapter

Growth investments

Financial Strategy

We have set a total of ¥17 billion in growth investments for Growing Together 2023. In the first year, fiscal year ended
March 31, 2021, we have invested ¥5.7 billion. In the future, we will accelerate investments for the Overseas Businessand digital transformation that will lead to further growth.

We will strengthen our financial foundation by improving financial liquidity, profitability, and fiscal health as a “TSUNAGU”
Service Integrated Shosha Group that contributes to society through manufacturing, home building, environmentbuilding, and town building.
Based on the “Growing Together 2023” Mid-term Management Plan,” we will strategically develop new markets, newproducts, and new businesses by promoting investments in Growth businesses centered around deepening of the Corebusinesses.

Investments(3 years)

Growth business name

Overseas Business¥4.0 billion

Robot (AI) & IoT Business¥4.0 billion

For capital liquidity, our basic policy is to apply short-term borrowings and own fund for the capital demand of working
capital and capital expenditures. We aim to enhance the capital management structure and improve capital efficiency on
a consolidated base by Group financing that utilizes cash management systems in the Group.
We will maintain financial health while making growth investments. We aim to expand earnings per share and increase
corporate value by investing profits generated through business activities in growth fields.

¥1.7 billion—

Remaining investments(2 years)Investment details—¥4.0 billion

Business and capital alliances with AI ventures, etc.

¥2.3 billion—¥100 million EC site Growing Navi function development, etc.

New Distribution Business

—

Total

—

¥100 million Investments in agriculture robot companies, etc.

¥5.0 billion

Agriculture Process BusinessWe will strengthen our financial foundation by improving financial liquidity, profitability, and fiscal health. We will also
secure capital for growth through M&A and business investments.

—

Eco & Energy Solution BusinessResilience & Security Business

Basic philosophy toward financial strategies

Results(1 year)

Total¥1.5 billion

Long-term Care & Medical Business * Existing Core——

Food Equipment Business——

Sharing Business——Core businesses¥3.3 billion

IT digital investments¥4.0 billion

Make information-related company a subsidiary,¥500 million promote DX project, etc.

¥3.5 billion

Total¥17.0 billion¥5.7 billion¥11.3 billion

business investments
included* Core business
investments included

M&A to strengthen functions, etc.

Investment and capital policy

Growth Matrix in YUASA VISION 360 and Growing Together 2023
Image of growth matrix
We are investing ¥4.0 billion into the Overseas Business and Robot (AI) & IoT Business and ¥5.0 billion into other Growthbusinesses and the Core businesses by fiscal year ending March 31, 2023.

In the Growing Together 2020 Mid-term Management Plan, as initially planned, the ratio of investments, return toshareholders, and funds for the future investments were around one-third each.
In Growing Together 2023, the ratio of investments is to be increased to ¥17.0 billion, or 57%, while the shareholder
return ratio is maintained at least 33%.
In the plan through 2026, investments would be 50% while the shareholder return ratio is maintained at least 33% asdescribed below.
[Growing Together 2020]* Values in parentheses are sales targets for the fiscal year ending March 31, 2023

Growth market

Sharing Business(¥5.0 billion)

Investments¥4.0 billion

Food Equipment
Business(¥8.0 billion)

Overseas Business(¥74.0 billion)

Agriculture Process
Business(¥5.0 billion)
New
Distribution
Business(¥19.0 billion)

Investments¥4.0 billion
FY 2021 results¥1.7 billion[Targets of Growing Together 2023]
FY2021-FY2023 (3-year) profit(¥30.0 billion) distribution plan

10%

31%

[Growing Together 2023-2026]
FY2021-FY2026 (6-year) profit(¥70.0 billion) distribution plan

17%

50%

35%
33%

MarketEco & Energy Solution Business(¥25.0 billion)

57%
34%

Existing market

Core businesses
Machine Tools

Housing, Air &Fluidic Control Systems

Energy,Building Supplies & Exterior
Consumer Products & Timber

Existing product14Long-term Care &Medical Business(¥8.0 billion)

Robot (AI) &IoT Business(¥17.0 billion)

FY2018-FY2020 (3-year) profit(¥26.1 billion) distribution results

Integrated Report 2021

Resilience & Security Business(¥24.0 billion)
Industrial Equipment &Tools
Construction Machines

Product

Investments¥8.2 billion

Growth businesses andInvestmentsCore businesses¥5.0 billion(besides Overseas,
Robot (AI) & IoT Business)

Growth product

Return toshareholders(dividends)¥8.8 billion
Funds forthe future
investments¥9.4 billion• M&A related• Capital expenditures for systems, etc.

Investments• M&A, business succession• New businesses• IT digital investments• Human resource development/
development of new businesses¥17.0 billion

FY18/3 dividend amount: ¥2.4 billion
FY19/3 dividend amount: ¥3.1 billion
FY20/3 dividend amount: ¥3.3 billion

Shareholder
return ratio

33% or more

Aim to increase DOE (dividends onequity), including purchase oftreasury shares

Net assets per share
FY17/3 results: ¥2,910⇒FY20/3 results: ¥3,635

Funds forthe future
investments

Investment funds to respondquickly and flexibly to the changesof the future business environment

33%

6-year total
investments

M&A, new businesses ¥23.0 billion¥35.0 billion

IT digital investments ¥12.0 billion

Shareholder
return ratio

Aim to increase DOE (dividends onequity), including purchase oftreasury shares

33% or more

Integrated Report 2021

15

ChapterStrategy Connecting Us to the Future

Current YUASA TRADING Group

Core businesses (Net sales for the fiscal year ended March 31, 2021)

Promote the Core businesses and the Growth businesses
through integrated network connecting

Approx.

Suppliers

500 companies

Provides industrial machines andresources required for road paving and civilengineering while also proposing
cutting-edge industrial rental products thetimes seek.

61.5 billion

supplier group called “TANKYOKAI,” and the “YUASA TRADING Group.”

TANKYOKAI

Construction Machines Division

Supports “manufacturing” through ourproprietary nationwide IT & logistics
network.
¥sales partner group called “Yamazumi Shareholding Association,”

Supplier group

Industrial Equipment & Tools Division

Sales partner group

Machine Tools Division

Energy Division

Supports global “manufacturing” byadding proprietary engineering functions
to the machinery and equipment of top
manufacturers in Japan.

Realizes stable provision of energy fitting
smart technology, BCP, and low carbon
society.

82.7 billion

Yamazumi
Shareholding
Association

Housing, Air & Fluidic Control
Systems Division
Realizes smart society through proprietary
eco-engineering.

3,000 companies

158.9 billion¥

Sales partners

Approx.

Approx.

20,000Top number ofsuppliers in
the industry

Sales network
stretching acrossJapan and overseas

companies

20.6 billion¥

Supports construction materials forbuildings and apartments from estimatesto actual construction in order to create
pleasant, strong, and flexible urban spaces.

56.6 billion¥

Overseas BusinessResilience & Security Business

Provides new products and functions in
the Southeast Asia and North America
areas.

Proposes town-building of the futurewith disaster prevention, disastermitigation, and BCP as our keywords.

22.0 billion¥

Sales and ordinary profit in past 10 years
YUASA VISION 360(billions of yen)

1st stage

15.0

10.0

Agriculture Process Business

Strengthened system integration functions
and deploys solutions operations throughrobotics (AI) & IoT in each field.

Proposes efficient agriculture andmethods to reduce the burden on
farmers.

7.4 billion

¥

12.0

9.0

6.7

6.0

28.3 billion¥

Robot (AI) & IoT Business

432.1

300.0

200.0

Proposes new industry and lifestyle shapesthat fit diversifying lifestyles andindustries.

Growth Businesses (Net sales for the fiscal year ended March 31, 2021)

31 sites in Japan/27 sites in 10 countries overseas
27 group companies in Japan/14 group companies overseas

400.0

Other (Consumer Products & Timber)

Building Supplies & Exterior Division

6,000

companies

396.7

15.5 billion¥¥

Approx.

Net sales: ■Core businesses ■Overseas ■Robotics (AI) & IoT■Eco & Energy Solutions ■New Distribution ■Resilience & Security(billions of yen)
■Agriculture Process ■Long-term Care & Medical
500.0● Ordinary profit

36.1 billion¥

1.9 billion¥

Eco & Energy Solution BusinessLong-term Care & Medical Business

Promotes sales business in and outside
Japan for equipment and systems that
contribute to the environment.

Offers a comfortable lifestyle byproposing equipment and systems
that support improved environments
for aging society.

21.3 billion¥

6.8 billion¥

New Distribution Business
100.0

0

16

3.0

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3

Integrated Report 2021

0Strengthened information transmission
utilizing IT and expanded electronic tradingbusiness with sales partners.

13.8 billion¥

Integrated Report 2021

17

Strategy Connecting Us to the Future ― Growth Strategy

Chapter1

Connecting the World and Japan

Overseas Business

Overseas Network

Growth Strategy

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

inConcentrates Group business resources

Net saleson North America, Southern Asia, and22.0 billion

Eastern Asia regions.

Asia

10

China, Taiwan, Thailand, Malaysia,
Indonesia, Philippines, Vietnam, India

14

countries

companies

27

Top area of focus

sites(as of March 31, 2021)

Group companies

Investments

11 companies, 20 sites¥

Thailand

4.0

¥

80.0

YUASA SHOJI MEXICO.
S.A.DE C.V.
(Mexico)billion

60.0

YUASA TRADING INDIA
PRIVATE LIMITED(India)YUASA TRADING(PHILIPPINES) INC.
(Philippines)

North
Americain

U.S. and Mexico
YUASA TRADING(THAILAND) CO., LTD.
(Thailand)

YUASA TRADINGVIETNAM CO., LTD.
(Vietnam)

YUASA ENGINEERING
SOLUTION (THAILAND)
CO.,LTD. (Thailand)

Living Environment
MarketExpanded sales of energy-saving and generatingproducts in Thailand and Vietnam

2 companies, 5 sites[Construction Materials] Strengthened overseas
construction business (imports/exports)[Construction Machines] Expanded exports ofused construction and agriculture machines

YUASA SHANGHAI held its first exhibit at CME (China
Machine Tool Exhibition) held in Shanghai in July 2020. As
the number of COVID-19 infections had fallen in China,
there were 1,300 exhibiting companies and around 120,000
visitors, making it a very lively event.
Many visitors from a wide range of fields visited the booth,
where the company was able to conduct public relations andwork with representatives from assorted manufacturers.
Employees came together to engage in sales activities, suchas visiting customers that showed interest.

20.0

0

41.5

55.0

60.9

36.4
22.0

2019/3 2020/3 2021/3 2023/3

Contributing to activities to improvethe environment in Southeast Asia
YUASA ENGINEERING SOLUTION(THAILAND) CO.,LTD.
In September 2016, YUASA ENGINEERING SOLUTION(THAILAND) CO., LTD. was established in Thailand. This
company operates an energy solutions business that
handles everything from proposing renovations ofexisting equipment to solar power generation systems
design and construction in Southeast Asian countries,
utilizing the strengths in energy generation and saving
know-how developed in Japan.

PT.YUASA SHOJI
INDONESIA(Indonesia)
YUASA MECHATRONICS (M)
SDN.BHD.
(Malaysia)

Integrated Report 2021

Group companies

40.0

Trained local sales staff and expanded sales tolocal capital companies (target: 50% of sales)First exhibit for YUASA SHANGHAI at CME(China Machine Tool Exhibition)

74.0

ended March 31, 2021 due to suspending
operations at local companies and travel
restrictions for Japanese staff due to COIVD-19

Industrial Market

Construction Market

YUASA TRADING(TAIWAN) CO., LTD.
(Taiwan)18

Significant decline in income for the fiscal year

49.5

YUASA-YI, INC.
(U.S.)

billion(2023 plan)(billions of yen) ■ Plan ■ Results

Progress of Growing Together 2023

YUASA TRADING(SHANGHAI) CO.,LTD(China)74.0¥(2021 results)

We are promoting design, installation, and sales of solar power
generation systems in Thailand.

Integrated Report 2021

19

ChapterStrategy Connecting Us to the Future ― Growth Strategy

2

Connecting Technology and People

Heading toward realizing a society that “connects” everything, we will introduce
cutting-edge AI/IoT and robot technology and aim to grow with our customers.

Robot (AI) & IoT Business

Growth Strategy
We aim to develop the entire network ofBusiness Introduction

We developed the robot system“Robo Combo” series that realize automation easily at a low pricebusiness partners through proposing
cutting-edge AI/IoT and robot technology.
Investment targets Alliances with AI venture companies and SIers
Investment to strengthen SIer function

Development backgroundIn recent years, labor shortages due to lower birthrates and an aging society, workstyle reforms, and the COVID-19 pandemic
have suddenly increased the needs for automation that utilizes industrial robots in manufacturing sites. However, in reality, thedesire to introduce these systems has halved as automation systems significantly surpass the price of the manufacturing
equipment itself. This is one of the impediments for increasing production efficiency at manufacturing sites. Anothersignificant issue is that introduction of automated equipment limits the equipment available to use.

Address issues with Robo Combo
Extract workpiece (product)from the stocker

Set in the cutting machine

After machining, return tothe stocker

Improve
operational
efficiency

Beforeintroduction(manual work)

Improveproductivity

Afterintroduction(manual work
not required)(2) Attach workpiece to the jig andmachine with machine tools

Robo Combo product characteristics

••
•
••
•

Realize low price by minimizing functions
Can be sold by unit (robot portion, stocker portion)
Easily realize unit transportation/re-installation throughone-touch position setting function
Supports various automation levels by selecting stocker grade
Customizable by selecting options
Can be installed on existing equipment(3) Return completed
workpiece to the stocker

Robo Combo MI Ver 1

Integrated Report 2021¥

(2021 results)billion(2023 plan)(billions of yen) ■ Plan ■ Results

18.0

17.0

billion

Progress of Growing Together 2023
Industrial Market

Develop and propose automation system“Robo Combo”

Living Environment
MarketDevelop and propose machinery suited toSociety 5.0

Construction Market

Develop and propose public exterior-related
IoT products

In order to solve issues in labor shortages and cost
reduction, we are focusing on proposing labor-saving
improvements that supports worker picking at logistics
warehouses as well as automation of factory logistics bytransportation between factory processes without people.

14.0
12.0
10.0

8.3

8.0
6.0

5.8

6.5

7.6 7.4

4.0 3.2
2.002019/3 2020/3 2021/3 2023/3

Proposed AI systems that solve issues
in construction
We develop AI systems that detect the degree ofdamage and volume of materials in construction
sites in order to solve social issues such asworkstyle reforms and labor-saving.

As one example, along with Doog Inc., we used the cooperativetransportation robot “THOUZER BASIC” for autonomoustransport of heavy items and carrying of items to destinations
by automatic tracking. We conducted testing to implement
these systems in stations and commercial facilities in the future.

We will focus on proposing and developing AI
systems that can contribute to labor-saving andfatigue reduction among workers.

Testing robot at Takanawa Gateway Station (Yamanote Line) (Provided by East
Japan Railway Company)

Exhibit proposing the resource quantity counting system that utilizes AI(YUASA Growing Fair)

Image of opened
robot unit

We are supporting automation for our customers by reducing the cost burden
through the promotion of our product “Robo Combo.”

20

4.0

¥

17.0

7.4 billion

¥

16.0

Promote spread of cooperative robots

Automate repetitive work

(1) Extract workpiece (product)from the stocker

Investments

Net sales

Integrated Report 2021

21

ChapterStrategy Connecting Us to the Future ― Growth Strategy

3

Connecting the Future and Smart Energy

We will contribute to the realization of a decarbonized society by utilizing our know-how

in environment solutions amassed until now.

Total support for company ESG management(zero actual emissions)

We work towards

of introducing renewable energy/energy-saving equipment, shifting to

the efficient use of energy andCountries and companies have begun initiatives
in earnest to achieve carbon neutrality. The
Japanese government has announced a target of
reducing CO2 emissions by 46% by the fiscal year
2030 and achieving complete carbon neutrality
by fiscal 2050. As a result, companies have seenthat CO2 reduction initiatives such as maximizing
use of renewable energy and implementing
energy-saving solutions directly link withcompany value as they aim for carbon neutrality,a goal in the E (Environment) portion of ESGs.

Example of initiative to achieve carbon neutrality
We achieve carbon neutrality through a combination
renewable energy, and carbon off-sets.

Current

RenewableenergyWe are providing optimized services at a one-stop-shop based on theenvironment solutions know-how we have amassed until now.

One-stop solutions related to introduction of renewableenergy/energy-saving equipment
We have prepared a system to provide one-stop solutions through thewide-ranging know-how and advanced proposal capabilities unique toa trading company in order to address the issues of CO2 reduction byintroducing renewable energy/energy-saving equipment.

Energysaving

Consulting related to renewable energy, energy-saving, andCO2 reduction
Provide one-stop solutions, including site surveying, equipment
selection, quotes, proposals, installation, maintenance, and inspection

YUASA TRADING presented for “Self-generated solar
power and storage systems”
At the Nikkei Sangyo Shimbun Forum held in August, 2021, our Senior
Executive Officer and General Manager of Living Environment Division(Eastern Area) Hirose presented for “Self-generated solar power andstorage systems learning from introduction examples,” which introduced
the energy storage, generation,and saving solutions of YUASATRADING. During the session, in
addition to providing examples of
introducing self-generated solar
power and storage systems, heexplained the process of realizing
ESG management.

Integrated Report 2021

Purchased energy
CO2 emissions volume: 100%
Consumption ofself-generated
solar power

40% reduction

Purchased energy
CO2 emissions
volume60%

Purchased energy CO2 emissions
factor: 0.5 kg-CO2/kWh

Reduce purchased energy
through renewable energy

Example of introducing solar power generation systems(Food manufacturing business)

Equipment capacity:
Cost of introduction:

150 kW¥25 million

Power generated:
CO2 reduction volume:

165,000 kWh/year
61 t-CO2/year

Amount of energy cost reduction:
Amount of reduction in renewableenergy generation promotion levy:
Years until costs recovered:

Consumption ofself-generated
solar power

Upgradingenergy-saving
equipment

40% reduction 30% reduction

Purchasedenergy30%

Fuel used to generate purchased energy, including
natural gas, oil, and coal, all emit CO2.

Reduce purchased electricity and CO2 emissions byconsuming electricity generated by solar power on

Example of upgrading energy-saving equipment(Plastic product manufacturing)Amount of energy cost reduction: ¥3.85 million/year
Amount of reduction in renewableenergy generation promotion levy: ¥780,000/yearYears until costs recovered:
10.8 years

RenewableenergyTargetConsumption ofself-generated
solar power

Upgradingenergy-saving
equipment

Switching to
renewableenergy40% reduction 30% reduction 30% reduction

Purchased energy
CO2 emissions volume:

Renewable energy CO2 emissions
factor: 0.0 kg-CO2/kWha decarbonized society thatutilizes renewable energy.
Progress of Growing Together 2023
Promote energy-saving solution proposals
across the entire company centered aroundYES (YUASA Environment Solution) Division¥480,000/year
8.8 years

Reduce purchased energy
through energy-saving

utilities as we aim to realizesite with no CO2 emissions.

¥2.4 million/year

Upgrade costs:
Subsidies acquired:
Energy reduction volume:
CO2 reduction volume:¥65 million¥15 million
260,000 kWh/year
82 t-CO2/year

Growth Strategy

securing of resilient lifeline

Reduce purchased electricity and CO2 emissions byenergy-saving, such as making operations improvements
and updating to more efficient equipment.

High performance air
conditioning equipment

Nikkei Sangyo Shimbun Forum22

Eco & Energy Solution Business

•
•
•
••

Storage battery lineup aligned with needs
and uses from household to industrial usage
Continuous training of environment
instructors across divisions
Proposing solutions that combine solar power
generation, storage batteries, and V2H
Promote cyclical business using O&M
Respond to shift from ownership model toenergy services contract model (establish
PPA model)

LED lighting equipment

Power originating from renewable energy (zero CO2).
Reduce CO2 emissions by purchasing power with no net CO2
emissions as offset by non-fossil certificates (credits), etc.

Net sales

21.3 billion¥(2021 results)

0%

Achieve carbon neutrality!

As the contracting construction company, wedelivered a 638 kW solar power generation
system for Kanazu Murata Manufacturing Co., Ltd.
(Awara City, Fukui Prefecture) from the Murata
Manufacturing Group to create a factory wholly

billion(2023 plan)(billions of yen) ■ Plan ■ Results

30.0

Introduction example
Supported Kanazu Murata Manufacturing(Murata Manufacturing Group) create
factories that use 100% renewable energy

25.0

¥

25.0
21.9 21.9
20.0 21.5
21.3
20.0 19.3
25.0

powered by renewable energy.
From November 2021, all of
the energy used at this factoryis from renewable sources.

15.0
10.0
5.0

Reduce the supply burden of powersystems by combining storage batteries
and energy management systems.

0

2019/3 2020/3 2021/3 2023/3

Integrated Report 2021

23

ChapterStrategy Connecting Us to the Future ― Growth Strategy

Connecting Information Platforms
with Business Partners

4Strengthening information transmission functions utilizing IT to expand
our electronic trading business (Growing Navi) with business partners.
Business Introduction

New Distribution Business

Growth Strategy
Expand the e-commerce businessNet sales

company-wide and connect the Company
with sales partners and users by operating

Operating B-to-B-to-U Growing Navi that users can also usea B-to-B-to-U (User) ordering system.

From May 2018, YUASA TRADING has operated a
B-to-B site called “Growing Navi” that connectedsales partners with the Company. From this fiscal
year, we have been operating a B-to-B-to-U systemthat connects sales partners (B) with users (U).

¥(2021 results)

19.0

billion(2023 plan)(billions of yen) ■ Plan ■ Results

Progress of Growing Together 2023

19.0
15.2
13.6
16.0 11.7
13.8
12.7
11.3
12.0
20.0

•
•
•

Increase order amount for Growing Navi
(FY2021/3 results ¥5.0 billion → FY2023/3 plan ¥10.0 billion)
Deploy B-to-B-to-U platform that ties together sales partners
and users (from 2021)
Promote providing products at one-stop-shop through New
Distribution Business DivisionThis system is an e-commerce platform that
accepts orders through sales partners. We arepromoting this as a digital sales tool for the
COVID-19 era when visits to users are limited.

13.8 billion

¥

8.0
4.0
0

2019/3 2020/3 2021/3 2023/3

New function Growing Navi: B to B to U
“Growing Navi” can now be used as
one’s own EC site.
We support the improved operational
efficiency of sales partners.
Can be used as digital sales tools in
the COVID-19 and post-COVID era● Concept of Growing Navi B to B to U
Suppliers

The Company (B)Approx. 550 companies

2.5 million items

Sales partners (B)Approx. 2,000 companies(Sales partners with IDs)

On the customer’s computer, smartphone, or tablet

Sales prices can bedisplayed to users.

Can list inventory and price information

Simple set up to be usable fromthe next day
Free to use. You can use with minimaluser registration and price registration!

24

Integrated Report 2021

Company A
Company B
Company C
...

10.0

(billions of yen)Can use immediately
without building one’s own e-commerce!

In addition to publicizing inventory information,
this service can reduce inventory status
and price inquiry operations!

Sales of Growing Navi

Users (U)

10.0
8.0
6.0
4.0

Registration in 3 simple steps

1. Register company information
2. Create a management code and issue password
3. Register sales price

4.1

4.7

5.0

2.0
Inventory
information canbe displayed tosales partners.

0* Inventory registration is required
to display stock amount.

2019/32020/32021/32023/3
Plan

Integrated Report 2021

25

ChapterStrategy Connecting Us to the Future ― Growth Strategy

Connecting Security Technology and
BCP Know-How

5

Natural disasters and pandemics are growing more severe.
In order to maintain safety and security while continuing business,
we are connecting security technology and BCP know-how.

Resilience & Security Business

Growth Strategy
With “disaster prevention, disaster mitigation,
and BCP” as our keywords, we promote safe

Business Introduction

Developed aluminum privacy fence Yachibei® used for improving concrete walls―Prevents collapse damage in the event of an earthquake and contributes to resilient town development―
Since the incident of block walls collapsing during the 2018 Northern Osaka Prefecture Earthquake, renovation of block
walls across Japan has made some progress. However, many old block walls still remain as the cost of renovation is an
obstacle. In order to address this issue, YUASA TRADING and our business partners developed an aluminum privacy
fence Yachibei® used for improving concrete walls that mitigates the damage of walls collapsing due to earthquakes.
Customers can use the existing pillars of concrete fencing and replace the heavy concrete panels with the light aluminum
panels of Yachibei® in order to reduce costs, shrink construction times, and limit industrial waste emissions.

and secure “industry” and “town-building.”

Net sales

28.3 billion¥(2021 results)

30.0

¥

billion(2023 plan)

Progress of Growing Together 2023
(billions of yen) ■ Plan ■ Results

Made the Resilience & Security Office a company-wide division,
further improved proposal capabilities.

•
•

30.0

Strengthened proposals toward securing power in various fields(power generator, storage battery, uninterruptible power supply
system, etc.)
Developed aluminum privacy fence Yachibei® used for improving
concrete walls―Prevents collapse damage in the event of an earthquake andcontributes to resilient town development―
Developed and proposed social infrastructure related products
through the “Mirainnovation” Project (flooding detection
transmission system, emergency power supply warehouse, etc.)•

Characteristics of Yachibei®

28.3

25.0

19.0
17.5

20.0

30.0

20.8
20.5 20.5

15.0
10.0
5.0

Before0

After2019/3 2020/3 2021/3 2023/3

Success during July 2021 heavy rains in Shizuoka! Flooding detection transmission system
KIZUKI MIRAI Bollard
Flooding detection transmission system KIZUKI MIRAI Bollard, which was released in April 2021, had quickly been put
to use in Oyama-cho, Sunto-gun, Shizuoka Prefecture, where it was being tested.
Late at night on July 1, 2021, there were record heavy rains that flooded the Prefecture Road Yamanakako Oyama-Sen in the
Yubune district. At 3:36 a.m., KIZUKI MIRAI sent a notification of rising water levels to the road administrator and a red,
flickering warning light shone across around 200 meters to catch the attention of approaching vehicles. Despite the flooding
occurring late at night, the e-mail notification to the road administrator was sent without any time lag and no vehicles faced
any damage as they were warned and the road administrator was able to shut down traffic.

Use pillars as is; does not require foundational construction● Mitigate the damage of collapsing due toearthquakes by lightweight aluminum panels(Reduces weight by approximately 85%)
● By reusing the existing pillars:(1) Reduce reinforcement costs(reducing costs by approximately 35%)
(2) Shorten construction time(3) Environment-friendly product that limits
emissions of industrial waste● Improves design with pillar covers and top rails

Boost safety26

Integrated Report 2021

Foundational
construction
not required

In the future, we will confirm its effectiveness to warn during floods and notify information.

Lightweight aluminum panels

System overview and characteristics(1) Main device (flooding sensor
bollard) detects flooding andreports information to receiver

Reduce weight byapprox. 85%* Compared to common
concrete panels

Limit industrial
waste emissions(2) Receiver (wireless warning lightreceives information and emits
warning light)(3) Passing vehicles see warning light.
Detects danger beforehand andprevents dangerous situationsKIZUKI MIRAI Bollard installedin Oyama-cho, Sunto-gun,Shizuoka Prefecture

Integrated Report 2021

27

Strategy Connecting Us to the Future ― Growth Strategy

Chapter

Agriculture Process Business,
Long-term Care & Medical Business6

Agriculture
Process Business

Proposes next-generation “earning agriculture.”

Net sales

Progress of Growing Together 2023

1.9 billion¥(2021 results)

5.0

¥

•
•

Propose fluorescent lighting that invigorates immune capabilities ofstrawberries by UV-B (ultraviolet rays)
Develop and propose smart agriculture robots with DONKEY Corporation(2023 plan)•••(1) Invigorate immune capabilities ofstrawberries by UV-B (ultraviolet rays)
UV-B globular fluorescentlighting(2) Make strawberries more resilient
against illnesses

Supports improvements to sites related tolong-term care and medical services.

(2023 plan)

Strengthen sales of food equipment/factory logistics equipment
Propose testing equipment that prevents the mixing of outside
substances (secure food security)

Promote infectious disease reduction house using container houses

Exterior••

Progress of Growing Together 2023

Exhibited “food product line” at Kanto Grand Fair 2021
Propose testing equipment that prevents the mixing of outside
substances (secure food safety)

Growth Strategy•

Interior¥

Create sharing platform••

Progress of Growing Together 2023

Promote agriculture machine sharing services
Develop sharing model in factory equipment, industrial
equipment and tools, robots, and service/maintenance fields

Harvesting using shared agricultural machine

Overseas Business
Robot (AI) & IoT Business
Eco & Energy Solution Business
New Distribution BusinessResilience & Security Business
Agriculture Process BusinessLong-term Care & Medical Business
Food Equipment Business
Sharing Business
Consumer Products & Timber

EnergyConstruction Machines

Building Supplies & Exterior

Housing, Air & Fluidic Control Systems

In April 2020, the Company established the Growing
Strategy Division as the organization to promote theGrowth businesses across divisions including groupcompanies. This organization is comprised of the
New Business Development Division, YES (YUASA
Environment Solution) Division, New Distribution
Business Division, Resilience & Security Office, andIntegrated Engineering Office. It generates new
businesses for the future through cross-Groupefforts. There are many personnel certified inconstruction in the Integrated Engineering Office.
They are responsible for the Group engineeringfunctions as a group of technicians.

5.0 billion•

Serves as engine to promote the Growth businesses“Growing Strategy Division”(2021 results)

Fields where sharing business is(2023 plan)
being considered• Factory equipment, industrial equipment and tools, robots• Various logistics center functions• Trunk room utilizing open space• Service, maintenance field

Machine Tools

Integrated Report 2021

8.0 billion

Industrial Equipment & Tools

Develop nursing/rehabilitation equipment with
supplier manufacturers
Emergency power generation equipment thatutilizes financial assistance
Promote living environment improvements(air conditioning, air purification, lighting, etc.)
Labor-saving for nursing assistants utilizing
power-assist suits
Propose and sell anti-odor, sterilization, andhygiene products

28¥

1.5 billion¥

with market needs.

(2021 results)

Growing Strategy Divisionbillion(2023 plan)••

Promote infectious disease countermeasures for long-termcare and medical facilities utilizing financial assistance

Growth Strategy

•
•
•
•
•

2.7 billion¥

Supervisory Manager ofSales Division

8.0

Total proposals and promotion torealize smart food factories

Net sales

Create sharing platform that aligns

Food product line exhibited at Kanto Grand Fair 2021

Progress of Growing Together 2023

¥

•
••
•
•

Net sales

Promote living environment improvements (air conditioning, air
purification, lighting, etc.)

Net sales

6.8 billion

Growth Strategy

Sharing BusinessSupports introduction of HACCP to improve food safety andensure quality management

Develop and propose robots andmachinery that support smart
agriculture
Develop agriculture-related
equipment through collaborations
with supplier manufacturers
Propose package for electricity homeconsumption for livestock and dairy
farming fields(2021 results)

Food Equipment
Business
smart food factories.

Growth Strategy¥

Food Equipment Business, Sharing Business

Promote total proposals forbillionLong-term Care &Medical Business

Challenge Fields

Objective of established Growing Strategy Division
1. Promote growth strategy across the Company and Group
2. Responsible for discovery and development of new businesses for 3rd stage

Container house adopted by large-scale COVID-19 vaccine immunization sites

Integrated Report 2021

29

ChapterStrategy Connecting Us to the Future ― Segment Business Overview

Segment Overviews (Fiscal year ended March 31, 2021)
Seven Core businesses

Sales of work tools, industrial
equipment, machinery, control
equipment, and logistics
equipment

Construction Machines Division

Major businesses

Sales and leasing of construction
machines and materials

Major businesses

Major businesses

Sales of machine tools andgeneral factory equipment

Sales of piping/air conditioning
equipment, housing equipment,
and renewable energy equipment;
design, management, andcontracting of construction, house/building trading

Building Supplies &Exterior Division

Major businesses

Sales of construction materials,
landscape, exterior, and civilengineering resources; design,
management, and contracting of
installation work of exteriormaterials

Other(Consumer Products & Timber)

Energy Division

Major businesses

Housing, Air &Fluidic Control Systems Division

Sales of petroleum products

Major businesses

Sales of consumer products suchas seasonal home appliances andcooking appliances, and wood
products*■ Industrial Equipment &Tools Division■ Industrial Equipment &Tools Division

19.1%

8.7%

■ Machine Tools Division■ Machine Tools Division■ Housing, Air & Fluidic
Control Systems Division■ Housing, Air & Fluidic
Control Systems Division

20.3%

14.2%
36.8%

■ Construction Machines
Division

8.4%■ Energy Division

3.6%■ Other (Consumer
Products & Timber)

4.8%

432.1 billion
Operating profit

8.9 billion¥(FY2021/3)

43.7%■ Building Supplies &Exterior Division

14.7%■ Construction Machines
Division

7.6%■ Energy Division

2.8%* Numbers shown are before adjustments.

30

Integrated Report 2021

Increase in investments to improve working
environment in COVID-19 pandemic

Opportunities

Increase in investments for labor-saving due tolow birthrate and aging society

Become the number one trading company
in the fields of cutting, control, andlogistics by strengthening proprietary IT &logistics functions and integrating
solutions sales.

•
•
•
•
•
•

Product lineup centered based on housing, air,and fluidic control systems

Strengths

Solutions proposal capabilities throughdepartments specializing in environment andlabor-saving
Logistics functions
Expansion of renewal market

Opportunities

Expansion of renewable energy market
Increase in demand from overseas

Expand our share in the renewal market bystrengthening engineering and logistics
functions as well as environmental energy
solutions.

•••

Network through rental company organization (YRA)

Strengths

Used construction machinery sales business(YUMAC)
Inspection of imported products before shipping(Chubu Center)•••

Strengths

VisionImplementation of IoT/ICT for construction sites•••

Return overseas production back to Japan

Opportunities

Acceleration of automation due to labor shortage;increased sales for DX and system products
Expansion of ultra-precision market throughprogress in IT digital technology

VisionBecome the number one trading company
in the field of factory equipment sales bystrengthening engineering across theGroup and equipment proposal
capabilities.

•••

Top level exterior sales capabilities in Japan

Strengths

Solutions proposal capabilities throughdepartments specializing in resilience
Product procurement capabilities from overseas•••

Demand for renewal of social infrastructure
Urban redevelopment project

Opportunities

VisionIncrease in traffic IoT investments

Maintain and expand position as number
one trading company in the public exterior
field by strengthening initiatives towardsocial infrastructure as well as
construction and logistics functions.

••

SS (service station) network concentrated in Aichi
Prefecture

Strengths

Sales capabilities for light oil and shipping fuel•••Improved supply and demand balance for oil
Loosening of SS regulations

Opportunities

Demand for infrastructure construction indeveloping countries

Acquire and strengthen functions for
product development, sales, services/maintenance, used machinery sales,
secondary rentals (sharing).

Overseas network capabilities in Asia and North
AmericaEngineering capabilities through group companies

Increase in demand for infrastructurereconstruction to prevent and mitigate disasters

Opportunities•••

Top level machine tools sales capabilities in Japan

Increase in BCP investments for factories■ Other (Consumer
Products & Timber)

2.2%

•
•
•

Energy Division

13.1%

¥

Logistics functions
EC functions (Growing Navi)

VisionConstruction Machines Division■ Building Supplies &Exterior Division

Net sales

Strengths

Building Supplies & Exterior Division

Percentage of total operating profit

Housing, Air & Fluidic Control Systems Division

Percentage of total sales

Product lineup based on work tools, controls, andlogistics

VisionPercentage of total sales and operating profit•••

Machine Tools Division

Major businesses

Machine Tools Division

Industrial Equipment & Tools Division

Industrial Equipment &Tools Division

Current status and vision for the future

VisionStrong demand for light oil

Increase income for areas other than fueland oil by a region-focused services
platform that integrates with otherformats and strengthens SS maintenancefunctions.

Integrated Report 2021

31

ChapterStrategy Connecting Us to the Future ― Segment Business Overview

Industrial
Market Headquarters

Industrial
MarketOverview

Toshiyuki Takachio Industrial Equipment & Tools Division

Machine Tools Division

Managing Director, Chief General Manager of Industrial Market Headquarters

FY2021/3 operating profit

FY2021/3 net sales

Industrial Equipment & Tools Division¥

61.5 billion
Net sales¥

scope reaches beyond Japan and to overseas regions, not only for Japanese companies, but also
production facilities for local capital companies. High performance machine tools, robots, work tools, andother equipment made in Japan are needed to create high quality products. We are delivering Japan’s
cutting-edge technology to factories not only in Japan, but also China, Asia, and North America, etc. YUASATRADING Group utilizes all of its capabilities to address social issues such as labor shortages atmanufacturing sites, aging society, and workstyle reforms. We are also taking efforts to propose equipmentthat can achieve automation and reduce labor and solve issues. We aim to generate new value that utilizes
our coordination capabilities to shift From “Single Item Business” to “Integrated Product-Service.”(billions of yen)

Machine Tools Division

¥

60.0

2.5%

1.9%

2017/3 2018/3 2019/3 2020/3 2021/3

160.0

¥

Operating profit(billions of yen)
Operating profit to net sales ratio 6.0

120.0

2017/3 2018/3 2019/3 2020/3 2021/3

1.2

80.0

0.6

40.0

0

Business overview of the fiscal year ended March 31, 2021
While there has been a decline in factory operational rate due to the impact of the COVID-19 pandemic, semiconductorrelated demand has grown, primarily around 5G (5th generation mobile communications systems), and production forautomobile-related industries also began to recover toward the end of 2020 as we saw a gradual recovery in demand for
cutting tools, measurement equipment, and control equipment. Food-related industry also maintained strength anddemand for logistics-related equipment was strong.
Under these circumstances, we strove to improve logistics functions such as implementing campaigns through our“Growing Navi” EC site and strengthening our immediate delivery system by integrating and expanding distribution sites.
We also expanded sales of new products, such as security products for factories, enhanced our lineup that addresses theenvironment, energy-saving, and safety, such as compressors, power generators, and control equipment, and focused onstrengthening sales of logistics equipment, robot devices, and machine tool peripherals. As a result, net sales for the
fiscal year ended March 31, 2021 were ¥61.52 billion (-12.2% YoY).

0

2.5 billion

Operating profit/Operating profit to net sales ratio

4.3%
1.7%

20.0

(billions of yen)

1.8

3.0% 3.1%

FY2021/3 operating profit

82.7 billion
Net sales(billions of yen)
Operating profit
Operating profit to net sales ratio 2.4

40.0

FY2021/3 net sales

Operating profit/Operating profit to net sales ratio

80.0

0

1.0 billion

The Industrial Market Headquarters contributes to manufacturing in Japan and the world. Our business

4.5% 4.5%

4.5

4.3%
3.0

3.1%

2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3

1.5
0Business overview of the fiscal year ended March 31, 2021
In Japan, while there has been a recovery in demand for machinery for semiconductor related equipment like 5G, etc.,
companies are still being conservative in making capital expenditures. Production delays due to supply shortages ofsemiconductors from the start of the year also contributed to lower sales of automobile-related equipment, an industry
that had been performing well. Overseas, there were signs of demand recovering for some automobile parts in China
and Vietnam. However, as the recovery for new equipment investment was delayed due to the impact of the COVID-19
pandemic, we strove to expand orders by strengthening sales activities toward local capital companies.
Under these circumstances, net sales for the fiscal year ended March 31, 2021 were ¥82,723 million (-32.4% YoY)
despite efforts to propose labor-saving and automation, including robot systems, renovate deteriorating equipment withfinancial assistance, and sell high-precision machinery and anti-virus equipment for strengthening competitiveness.

Diving deeper into manufacturing

Made cutting tools trading company
a subsidiary
On December 1, 2020, the Company acquired sharesof Nakagawa Kinzoku Co.,Ltd.and its wholly-owned
subsidiary NAGAISANGYO CO.,LTD. Both companies
maintain businesses of approximately ¥6.0 billion
together. We plan to utilize their strengths, theirbusiness foundations, and the Group’s strength, awide-ranging product lineup and functions to expand
both of their businesses.

Strengths and synergies• Forecasts expanded business area by strengthening
cutting tool sales business and enhancing product lineup• Sales of machine tools to manufacturers in the Keiyo
Coastline Industrial Belt and Chiba and Ibaraki Prefectures

32

Integrated Report 2021

Diving deeper into manufacturing

Sales sites

Conducted merger to improve efficiency
and streamline group business operations
Tohoku Business Office
Oyama Local OfficeHitachi Business Office

Ryomo Business OfficeSuwa Business Office

YonagoBusiness Office
Fukuyama
Business Office
Hiroshima
Business Office
Yamaguchi Office

Hyogo
Business Office

Head Office

Omiya
Business
OfficeTokyo Business Division,
Tokyo Business Office

SagamiBusiness Office

Matsuyama Business Office Chiba (NAGAISANGYO)
Expand sites across Japan and conduct business across a wide range of fields, primarily
major automobile and construction equipment manufacturers

In April 2021, the consolidated subsidiaries of the Company,
YUASA TECHNICAL ENGINEERING CO., LTD. and YUASAPROMATEC CO., LTD. merged to form YUASA NEOTEC CO.,LTD. and set out on a new start.
“NEO” means “new” and “TEC” means “technology.”
Through “new technology,” this company aims to be a
trading company that can swiftly respond to recent complex
and wide-ranging user demands at a one-stop shop.

The main businesses of YUASA NEOTEC CO., LTD. are
the six categories of factory equipment seen below.
• Machine tools/forging
machines/peripheral devices• Semiconductors/FPD/opticalequipment manufacturing
facility-related• Measurement/analysis/
inspection equipment• Labor-saving equipment/
specialty equipment

Strengths and synergies• Logistics/packaging
equipment• Aim to improve efficiency and streamline business managementof the Group• Environment
equipment-related• Utilize common business foundation and aim to expand businesses

Integrated Report 2021

33

ChapterStrategy Connecting Us to the Future ― Segment Business Overview
LivingEnvironment
MarketOverview

Living Environment
Market Headquarters
Kenichi Tanaka

Housing, Air & Fluidic Control Systems Division

The Living Environment Market Headquarters proposes products and equipment improvements
across a wide range of fields, from housing equipment and building air conditioning to factory
utility equipment. In the renewable energy related field, we provide storage batteries and power
conditioners for home use of solar power generation systems as well as output control systems
that were developed by the Company. We also promote the development and sales of seasonal
electronics and household electronics that respond to the needs of stay-at-home demandthrough our group company YUASA PRIMUS CO., LTD.

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

FY2021/3 operating profit

FY2021/3 net sales

158.9 billion

Housing, Air & Fluidic Control Systems Division¥¥

Net sales

Introduction of group companies

5.4 billion

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

160.0

(billions of yen)
Operating profit
Operating profit to net sales ratio 6.0

120.0

4.5
3.7%

80.0

3.4%
3.4% 3.3% 3.4%

40.0
0

3.0
1.5

2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3

YUASA PRIMUS CO., LTD. sells original household electronics
Since its founding in 1978, YUASA PRIMUS CO., LTD. has maintained a motto of “Contributing to creating a rich society through fairand earnest company activities.” As such, it has continuously provided richness and benefits to consumers during their daily lives.
The mainstay products of YUASA PRIMUS are seasonal home appliances including fans in the summer, seasonal home appliances
including heated kotatsu table in the winter, and PB (private brand) products for household electronics, such as rice cookers andmicrowaves.
Also, the company has acquired ISO 14001 and ISO 9001 certifications and promotes business that takes into consideration theenvironment and quality.

0

Business overview of the fiscal year ended March 31, 2021
While there were delays to construction do the impact of the COVID-19 pandemic, there was new demand for air andfluidic control systems as companies restarted capital expenditures. The housing reform market recovered due toincreased time spent at home as more people worked from home. There were signs of recovery in renovation demandfor housing equipment. Moreover, demand for storage battery related equipment trended strongly in the renewableenergy field in anticipation of home consumption and the expiration of FIT (feed-in tariff system).
Under these circumstances, we strengthened the sales of valves, pumps, and other non-housing field products and air
conditioning equipment with high energy-saving performance while also focusing on expanding the sales of products toprevent infection. Furthermore, as a result of expanding the sales of storage batteries, power conditioners, and otherperipheral equipment as well as new merchandise endowed with an excess power purchasing scheme while also striving
to strengthen our engineering functions in renewable energy related products and acquiring the JET PV System
Operation & Maintenance certification (JET PV O&M certification), net sales for the fiscal year ended March 31, 2021
were ¥158,970 million (-2.1% YoY).

Characteristics•

Strengths in seasonal home appliances (fans andkotatsu) and cooking appliances

Production introduction•

Promoted product development that aligns with stay-at-homedemand stemming from COVID-19

Use to work from home!

New members registering on
this EC site receive points
worth ¥500!
New members
who register can receive
500 points (equal to ¥500 )that can be used in
yuasaprimus.com.
(Member registration is free)Supports
voice
activation

You canaccess fromhere.

Fan (Kotoba de Fan)

USB kotatsu

Rakugumi booth desk

Renewable energy/energy-saving initiatives

Proposing solutions that combine solar power
generation, storage batteries, and V2H
The importance of distributed energy that utilizes
renewable energy is increasing to use energy efficiently
and realize a sustainable society. Using our strengths inenvironment solutions know-how amassed until now, weare promoting package proposals including storage
batteries as well as solar power, and implementation of
V2H system, which allows users to use electricity stored
in electric vehicles at home.
In the future, we aim to realize a distributed energy society
by promoting the efficient use of renewable energy.

V2H (Vehicle to Home)

Supply electricity from car to facilities
Install V2H charge/
discharge equipment
V2H charge/
discharge
equipment
Used to supply power to facilities during
power outages and non-emergencies(Source: Next Generation Vehicle Promotion Center website)

34

Integrated Report 2021

Exhibit at the 3rd AI & Smart Home Expo
We presented an exhibit at the 3rd AI & Smart Home Expo, which was heldat Tokyo Big Sight from December 2, 2020 to December 4, 2020. As costs
for solar power generation fall, it is becoming less expensive to use the solar
power together with storage batteries compared to purchasing electricity
from a power company. Therefore, storage batteries are now in the spotlightonce again. At this event, we publicized our lineup of storage batteries.
The national government and Tokyo have announced plans to switch all new
vehicles to hybrids or electronic vehicles in the 2030s. Therefore, we
proposed the “renewable energy chargeable EV lease promotion package,”an original V2H package for corporations that use leased vehicles. With this package, you can use the power stored in EV
batteries at home or the office during emergencies, as well as PR for the company.
We will continue to focus on spreading renewable energies.

Integrated Report 2021

35

ChapterStrategy Connecting Us to the Future ― Segment Business Overview

Construction Market
Headquarters
Naomi Nakayama

Construction
MarketOverview

Building Supplies & Exterior Division

Construction Machines Division

The Construction Market Headquarters is comprised of the Building Supplies & Exterior Division,
which provides support for building supplies and exterior/civil engineering materials frombudgeting to construction, and the Construction Machines Division, which proposes cutting-edge
industrial rental resources that are needed in various construction sites such as road paving andcivil engineering works. In particular, we are putting effort in businesses to address deteriorating
infrastructure to prepare against increasing natural disasters based on the Fundamental Plan for
National Resilience, as well as sales of disaster mitigation, prevention, and BCP products.

Director, Chief General Manager of Construction Market Headquarters

FY2021/3 operating profit

FY2021/3 net sales

Building Supplies & Exterior Division¥

56.6 billion
Net sales(billions of yen)

60.0

¥

1.8 billion

30.0

3.3%

36.1 billion

3.0%(billions of yen)

30.0

1.0

20.0

0.5

10.0

3.2%

2017/3 2018/3 2019/3 2020/3 2021/3

A decrease in new demand was seen around scenic exterior merchandise with the delays of construction and thereevaluation of redevelopment projects around the metropolitan area due to the impact of the spread of COVID-19.
Meanwhile, investments in public facilities based on the Fundamental Plan for National Resilience, such as natural
disaster measures and other measures to prevent traffic accidents, grew steadily. Moreover, the need for storage anddelivery boxes due to lifestyle changes swelled, and the number of units sold increased.
Under these circumstances, net sales for the fiscal year ended March 31, 2021 were ¥56,624 million (-2.8% YoY) as aresult of focusing on expanding the sales of bollards (car barriers) with flooding sensors, water sealing plates, aluminum
fencing to replace concrete fencing with a risk of overturning, and other products to combat natural disasters, andresilience products that were developed through joint efforts.

(billions of yen)
Operating profit
Operating profit to net sales ratio 1.0

0.75

0

2.5%

2.6%
2.5% 2.5%

0.25

2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3

0

Business overview of the fiscal year ended March 31, 2021
While demand in certain parts has been sluggish due to construction delays from a labor shortage of construction
workers and revisions to private capital expenditures, public construction for infrastructure, disaster recovery, anddisaster prevention/mitigation was strong as construction machinery demand from rental companies and demand for
civil engineering products were also solid.
Under these circumstances, we expanded the handling of products emphasizing safety measures at construction sites
according to the Fundamental Plan for National Resilience and strengthened the sales of mainstay compact construction
machinery and temporary civil engineering construction materials, etc. for rental companies. Moreover, as a result ofstriving to enhance our comprehensive strength through an expansion of the group network while also focusing on
expanding the sales of the used construction machinery auction business, net sales for the fiscal year ended March 31,
2021 were ¥36,102 million (-3.1% YoY).

Mirainnovation Project

Made construction machinery rental company with maintenance functions a subsidiary

Since 2018, we began the “Mirainnovation Project” with seven major
construction materials manufacturers for the purpose of productdevelopment that contributes to addressing social issues and building thetowns of the future.

In October 2020, we made MARUKEN SERVICE CO.,LTD. and its wholly-owned subsidiary MARUKEN TRADING CO.,LTD.
consolidated subsidiaries. Both companies operate their businesses out of Aichi Prefecture as construction machinery
rental companies holding maintenance functions. In the future, we plan to utilize the maintenance and rental functions thatare strengths of both companies along with the YUASA TRADING Group’s wide-ranging product lineup and functions to
expand the business.

In the future, we plan to expand the number of participating manufacturers
and grow as a company-wide project.
You can view the Mirainnovation
Project pamphlet here.

Strengths and synergies• Repair and maintenance know-how
for construction machinery and arental machine lineup• Expand business realm ofConstruction Machines Division
through maintenance and rental
functions
SUMITOMO CONSTRUCTION MACHINERY’s Asphalt Paver HA90C. MARUKEN
TRADING CO.,LTD. is the only rental company in Japan that owns this machine

Integrated Report 2021

0.5

Strengthen functions in construction field

The KIZUKI MIRAI Bollard displayed on page 27 is a product born of joint
development between two member companies of this project (SUNPOLE
CO.,LTD. and OYO Corporation) and YUASA TRADING.

36

0.9 billion

2.8%

0

Business overview of the fiscal year ended March 31, 2021¥

Operating profit/Operating profit to net sales ratio

40.0

3.2% 1.5

15.0

Contributing to safe town-building¥

FY2021/3 operating profit

Net sales(billions of yen)
Operating profit
Operating profit to net sales ratio 2.0

2.8%

2017/3 2018/3 2019/3 2020/3 2021/3

Construction Machines Division

Operating profit/Operating profit to net sales ratio

45.0

0

FY2021/3 net sales

Maintenance work

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37

ChapterStrategy Connecting Us to the Future ― Segment Business Overview

Energy Division¥

15.5 billion
Net sales(billions of yen)¥

0.3 billion

Operating profit/Operating profit to net sales ratio(billions of yen)
Operating profit
Operating profit to net sales ratio 0.45

40.0
30.0

Business Foundation to Connect to the Future

2.2% 0.3

20.0

1.3%

10.0
0

Chapter

FY2021/3 operating profit

FY2021/3 net sales

0.15

1.5%

0.7% 0.7%
2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3

0

Environmental

Business overview of the fiscal year ended March 31, 2021
While demand for petroleum products, including gasoline, and sales prices were sluggish due to the impact of
COVID-19, sales saw a slight recovery toward the end of the period.

initiatives

Under these circumstances, we strove to strengthen tire, automobile inspection, coating, and other car care services in
the gas station business deployed around the Tokai region. Furthermore, we focused on strengthening sales throughrenovating service stations and large-scale car washers. As a result, net sales for the fiscal year ended March 31, 2021
were ¥15,555 million (-24.4% YoY).

YUASA TRADING’s
ImportantThree Themes
Other (Consumer Products & Timber)¥

20.6 billion
Net sales(billions of yen)

25.0
20.0

¥

0.2 billion

the YUASA TRADING Group places importance on

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

1.3%

1.1%

0.8%

15.0

0.2
0.1

0.8%

10.0

0

5.0
0

In all business activities,

FY2021/3 operating profit

FY2021/3 net sales-0.5%
2017/3 2018/3 2019/3 2020/3 2021/3-0.1

2017/3 2018/3 2019/3 2020/3 2021/3

Business overview of the fiscal year ended March 31, 2021

the three themes of “Environment,” “Resilience,”

Realizingaresilientsocietyand “Human Resources” in an effort tosolve issues and create corporate value.
By pursuing these three themes,
we aim to contribute to the achievement of
Sustainable Development Goals (SDGs).

Creating
organizations that utilize

human resources

In the Consumer Products Business, sales have been strong, primarily for household electronics, as people are spending
more time at home. In particular, sales of humidifiers have increased as more people are aware of infection
countermeasures. We also strove to expand the EC site business, including sales of new products. In the Timber
Business, import volume decreased due to the impact of COVID-19 in production countries. Challenging sales conditions
continued due to the rise in prices with the expansion of demand in the U.S. and China and the rise in transportation
costs and arrival delays, etc. caused by the container shortage.
As a result, net sales for the fiscal year ended March 31, 2021 were ¥20,687 million (+1.8% YoY).

38

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39

ChapterBusiness Foundation to Connect to the Future

Create value through business

Environmental

Realize pleasant ventilation through energy-saving!
Joint project to expand the sales of the high performance ventilation equipment“Venti-air” by DAIKIN INDUSTRIES, LTD.

initiatives

Through all business activities, the YUASA TRADING Group aims to realize “sustainable development” that achieves a
harmony between maintaining the health of the global environment and sustaining economic growth. Based on ourenvironmental policy, everyone who works in the Company’s Group acts autonomously andproactively, and contributes to the society widely.

In order to expand sales, YUASA TRADING and DAIKIN INDUSTRIES, LTD. work together to analyze market trends and selecttargets while transmitting information internally and externally as a set with subsidy information that can be utilized. YUASATRADING is providing support, such as internal briefings and seminars on the subsidy application method and ways topropose exchanging air conditioning units, as well as joint sales operations for sales partners and users.

▶ You can view the environmental policy and environment management
system promotion structure from here.

Participation in Initiative for Decarbonized
Infrastructure in Thailand and Vietnam

Merits of installing high performance ventilation equipment
High performance
ventilation equipment

Until now, the Company’s Group has conducted initiatives that utilize the JCM that contributes to the reduction of*greenhouse gases in developing nations as we have striven to improve the global environment.
As public and private entities take efforts to realize carbon neutrality by 2050, expectations toward JCM continue toincrease. In Thailand in 2020 and Vietnam in June 2021, we declared our participation in the “Initiative for Decarbonized
Infrastructure” the Ministry of the
Basic philosophy of JCM
Environment developed in order tofurther strengthen our overseas
Japan
Partner countries
Popularize excellent low
infrastructure presence through thecarbon technology andconduct mitigation activities
JCM.
JCM projectIn the future, we will contribute to boththe economic growth andenvironmental conservation of bothnations through support operations of
JCM-related projects in Thailand andVietnam.

Utilize in achieving
reduction targets
in JapanDue to the COVID-19 pandemic, the Ministry of Health, Labour and Welfare of Japan recommends to “improve close quarter
environments” and prepare ventilation for “30 m3 per person per hour.” The use of “heat exchange equipment” that retains
heat during the winter have gained attention. The high performance ventilation equipment “Venti-air” by DAIKININDUSTRIES, LTD. is heat exchange equipment that can be attached to existing equipment. This product both improves theenvironment and combats the spread of COVID-19. In the fiscal year 2020 supplementary budget, the Ministry of theEnvironment of Japan began providing financial assistance to businesses that support the installation of such equipment.

Managed and operated
by joint committee made up ofrepresentatives fromboth countries

Measure/report/test

CreditGreenhouse gas
emission reduction/
absorption volume* JCM: The Joint Crediting Mechanism. This system was created and operated by the Ministry of the Environment to contribute to the
reduction of greenhouse gases across the world. It aims to promote the popularization and use of excellent low carbon technology,
products, systems, services, and infrastructure to developing nations. This system quantitatively assesses Japan’s contribution in
reducing and absorbing GHG emissions through these activities and is used to achieve GHG reduction targets in Japan.

Air conditioner

Prevent intrusion of
insects, dust, and noise

Prevent temperature fromfalling while ventilating

Lower energy loss
from heat recovery

Shut out dirty
outside air

Energy-saving

Fresh airPrevents condensation

Construct sustainable hospitals through the new wooden
construction technology “Ichu Wood Frame Structure”
Unlike general examinations, treatment in orthopedic surgery rehabilitation rooms may take a considerable amount oftime and many patients may attend for a long time. As such, we wanted to create a pleasant space for rehabilitation byusing wood materials, which are known to provide comfort, mental stability, and refreshment. Upon the new
construction of the orthopedic surgery wing in Gifu Prefecture, we adopted an “Ichu Wood Frame Structure” that used
local wood materials in order to realize sustainable construction (buildings that use cyclical resources).
By using local wood materials, we help protect Japanese forests, reduce and absorb CO2, revitalize forests, generate
jobs, and reinvigorate the local community.

Initiatives to prevent global warming

Continue forest conservation activities
in Hokkaido

The Company’s Group performs a total engineering function that spans from the planning, design, construction tomonitoring and maintenance of buildings. We are striving to spread sustainable construction.

Our group subsidiary YUASA LUMBER CO., LTD.
has continuously conducted tree thinning andplanting activities in a total of 106.26 hectares offorest (equivalent to approx. 22 Tokyo Domes) inthree areas it owns in Hokkaido. It will continue to
conduct these activities in the future as one of its
environment conservation activities.

40

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41

ChapterBusiness Foundation to Connect to the Future

Create value through businessRealizing

Container house manufactured by FUJI QUALITY HOUSE CO., LTD.
used for COVID-19 vaccine administration sites across Japana resilient society
In the Resilience & Security Business, considered as a growth business in the Mid-term Management Plan “Growing
Together 2023,” we operate a business in both of the hard and soft aspects of disaster prevention, disaster reduction,and business continuity that connect with the strengthening of social infrastructure.
We will contribute to the society building and creation of safe and secure communities by promoting this business.

In the Long-term Care & Medical Business, the container housemanufactured by our group company FUJI QUALITY HOUSE CO.,LTD. has been used for large-scale COVID-19 vaccine
administration sites across Japan.
FUJI QUALITY HOUSE CO., LTD. designs, manufactures, sells, andrents various container houses that fit the needs of the client,including single and multiple wing units.

Developing “TSUNAGU BCP Package” fortorrential rain countermeasures

7 consecutive years of winning Japan
Resilience Award (Strengthening Award)

We are promoting the development of the new water drainage system “TSUNAGU BCP Package” to combat torrential
rain storms that have increased in recent years. By providing a package that includes water depth detection, power
generation, and automatic drainage, we can protect precious lives, equipment, and facilities from flood damage that
may occur from frequent typhoons and torrential rain storms.

The Japan Resilience Award is a system of
discovering, assessing, and awarding
forward-thinking initiatives across Japan for theconstruction of a resilient society for the next
generation.
In fiscal year 2021, the YUASA TRADING Group
received a total of four awards, including two awards
for excellence and two of the highest awards.
Using these awards as encouragement, we will takeefforts for the development of proprietary products
and services and contribute to the realization of a
resilient society.

2

Automatic
tracking

internal sensor
Transmit information on
Japan Resilient Award ceremony

Labor-saving/BCP:
Flooding detection transmission system

The Company’s Group has won
this award each year fromthe 1st event to the 7th event.

Infectious disease countermeasures:
Infectious disease reduction house

Flooding sensor
bollard

BCP

5

Plant

School6

Pump

DrainageEngine power
generator

Receive flooding information via e-mailCan check on the status even off-site

5

Engine power generator(underwater pump controller attached)

Turn generator on and off remotelywith a dedicated app
Provide stable power to underwater
pump for a long period of time

6

Drainage pump

Provide power from power generator
and drain water through water level
detection by a floating switch. Can
operate without complicatedconditions, such as pump priming,
even as water levels suddenly rise.

Torrential rain
countermeasuresin factory

Rain waterdrainage

Water stop
wall

Plant
(Image)(Award-winning company:
FUJI QUALITY HOUSE CO., LTD.)

Labor-saving/infection disease countermeasures:
Appointment management system for all forms of construction

Continuously holding resilience leader conferences
Having obtained resilience certification, the Company has held
resilience leader conferences once every six months from 2014, when
the resilience business was positioned as a growth business.

Details ▶ P27(Award-winning company:
YUASAQUOBIS CO., LTD./DANDORIWORK)

Integrated Report 2021

2

Housing complex

Pump drains water automatically

Local government

Administrator

Infectious
diseasecountermeasures

Socialissues3 4

3 4 Notify administrator about rising water levels
6

Hospital

Notify administrator
about rising water levels

2 Flooding sensor bollard detects water level
5 Turn on engine power generator remotely3Distribution warehouse(Award-winning company: YUASA TRADING CO., LTD/SUNPOLE CO.,LTD./OYO Corporation)

42

4

Flooding monitoring forvarious scenarios!

Simple operations

Safety design

1 Torrential rainfall

rising water levels

Labor-saving
Unmannedline running

Flooding detection
transmission system
Automatic detection ofwater levels through4 products and services that won the Japan Resilience Award 2021
Labor-saving/infectious disease countermeasures:Anti-bacteria sanitation robot “Elephunter”

1 Typhoon/torrential rain storms occur

Cloud server

All resilience leaders of the YUASA TRADING Group gather together and enrich theGroup strategy by sharing activities reports and plans and deliberating products for
new initiatives.

Integrated Report 2021

43

ChapterBusiness Foundation to Connect to the Future

Initiatives to improve the ease of employee work

Creating organizations
that utilize

KPI for Mid-term Management Plan “Growing Together 2023”
Female employee ratio in comprehensive work position
Female employee hiring ratio in comprehensive work position

human resources

15%

Initiatives that increase employees sense ofachievement in work3.

In order to foster a culture of taking on challenges in new areas, we have introduced
the following systems in which employees can select their careers. Points added
based on HR evaluations.
Internal FA system[Description]

4.

Internal recruiting system

Career pass system

Overseas assignment system

Points added based on HR evaluation depending on results of other department
contributions on three points in order to foster a corporate culture wherecross-department contributions are conducted actively.

New business proposal points

3.6%

0%

1 Mastery points

2 Incentive points

50

FY2020/3

60

FY2021/3

70

Target 60.0%

60%

55.0%

52.1%

51.1%

Average hours of labor

Target 1,900 hours

40%
30%

2,007 hours

2,013 hours

2,400 hours

1,950 hours

1,800 hours
1,200 hours

10%

2020/3
results

2021/3
results

2022/3plan

600 hours

0%2023/3plan

2020/3
results

2021/3
results

2022/3plan

0 hours2023/3plan

Realize productivity improvements andpromote workstyle reforms
FY2019/3

FY2020/3

FY2021/3

Rate of female
employees

38.4%

40.1%

40.3%

Number of employeeswith disabilities

15

15

16

Initiatives to support training of next generation (as of March 31, 2021)
Employees who have taken childcare leave Total of 100 persons
Male employees who have taken childcare leave
FY2019: 3, FY 2020: 2, FY 2021: 2 (as of August 31)

Employees working shortened hours

31 employees••

Reducing average hours of labor
Trends in hours spent in office by non-management
employees
June 2019

June 2020

Average time ofarrivalJune 2021

8:23

8:24

8:25

Average time ofdeparture

18:36

18:18

18:25

Average time spent
in office(excluding breaks)

9:12

8:53

9:00

Female employees balancing work and raising of
69 employees
children in elementary school or younger

3 Success points

Points added based on HR evaluation for
employees who make proposals in the Company’sGroup’s new business proposal system.
FY2019/3

Percentage of taking paid leave

70%

20%

3%

Health management

Final selection
committee

Recognized as the “2021 CertifiedHealth & Productivity Management

Number of proposals in the new business proposal system

Outstanding Organization”

Major initiatives that began in thefiscal year ended March 31, 2021
1. Banning smoking during work hours
2. Holding a woman’s health seminarfor new female employees

Continuing from last year, YUASA TRADING was recognized for the third time as a “Certified Health & Productivity Management
Outstanding Organization” in a system that awards major companies who execute excellent health and productivity management. Thisis awarded by the Ministry of Economy, Trade and Industry of Japan to promote the spread of health and productivity management.
The company, employees, and health insurance associations will continue to work together to further maintain and promote health.

5.

M&A proposal points

Points added based on HR evaluation for employees who propose M&A.

6.

Challenge points for acquiringcertifications (only general employees)

In addition to providing financial assistance for educational resources and tuition for
employees who seek certifications such as bookkeeping, points added based on HR
evaluation for employees who acquire certifications.

Training programs aimed at increasing employees’ value in the labor market and their contribution to the company•••

Joint training based on level (logical thinking, sales capabilities, accounting, marketing, strategy construction, etc.)
Next generation management human resource training
Language training and overseas training system

44

4.4%

3.8%

TrendsPoints added based on HR evaluation for new initiatives that aim to expand profits,
reduce costs, and produce unprecedented schemes, systems, and functions.

Other department
contribution points

Target 5.0%•

The Company has implemented a system of evaluations for various challenges in order to foster a corporate culture oftaking on challenges.

[System details]

Female employee ratio incomprehensive work position

6%

Percentage of taking paid leave (left axis)
Average hours of labor (right axis)

50%

10.4%

Promote diversity

Challenge evaluation system

2. Challenge career system

9.8%

10.4%

9%

In addition to respecting employee individuality and rights, YUASA TRADING pursues entrepreneurial spirit andrevolutionary ideas and focuses on shaping the workplace environment based on the organization and rules founded on
concepts of mutual trust and a mindset of collaboration. Employees clarify their own goals and responsibilities, pursue
outcomes, and divide management roles by exercising creativity in business activities. The company distributes theresults and responds to employee contributions based on the results of activities.

1.

Target 12.0%

12%Ensuring the corporate philosophy - “Regard for the Individual”

Challenge points

Female employee hiring ratio incomprehensive work position

Integrated Report 2021•

Off-site training for business school

Health management

SANEI CO., LTD. certified as Class A in Yokohama Health Management Certification

Initiatives toward health management have spread to our group companies as well. In March 2021, SANEI CO., LTD. was certified as
Class A in Yokohama Health Management Certification. Classes are divided on three levels, from A to AAA. SANEI CO., LTD. will aim to
obtain a Class AA certification by accurately grasping health issues of its employees and taking measures to address them. It willconduct initiatives to build a workplace environment where employees can work easily and in good health.
Creating an easy-to-work workplace

Acquired Kurumin certification

As a company that supports childcare, YUASA TRADING received certification from the Minister of Health,Labour and Welfare (Kurumin certification) from 2019. We will continue to take initiatives for all employees to beable to balance a fulfilling work and home life so that they can execute their abilities by constructing a workplaceenvironment in which employees can work with a sense of ease.

Integrated Report 2021

45

Business Foundation to Connect to the Future ― Corporate Governance

Chapter

Corporate Governance
List of Officers (as of October 31, 2021)
1

Hiroyuki Tamura

Representative Director, President & CEO
In charge of Overseas Business Development
Apr. 1982
Apr. 2009
June 2010
June 2013
Apr. 2016
Apr. 2017

Joined the Company
Executive Officer
Director
Managing Director
Senior Managing Director
Representative Director, President & CEO(incumbent)

Reason for election
Mr. Hiroyuki Tamura has full knowledge of the industrial
equipment and tools and machine tools areas and also
has abundant experience and achievements in overseas
business. Moreover, having demonstrated outstanding
management skills since taking the position ofRepresentative Director, President & CEO of the Company
in April 2017, the Company decided it would beappropriate to have him contributing to the growth of theCompany and the Company’s Group going forward.

2

Haruo Sanoki

Representative Director, Senior Managing Director
Supervisory Manager of Management Administration
In charge of Regional Groups
Committee Chairperson of Export Administration
Committee,
Ethics and Compliance Committee
and Internal Control Committee

12 10 5

4

3

9

11

6

7

Apr. 1978
Apr. 2011
June 2013
Apr. 2017
Apr. 2018
June 2019

2

8

1

3

46

Kenichi Tanaka

4

Toshiyuki Takachio

Joined the Company
Executive Officer
Director
Managing Director
Senior Managing Director
Representative Director, Senior Managing
Director (incumbent)
Oct. 2021 Committee Chairperson of Sustainability
Promotion Committee (incumbent)

Reason for election
Mr. Haruo Sanoki has full knowledge of the machine
tools area. Having served as a Representative Director,
Senior Managing Director, Executive Officer,
Supervisory Manager of the Management
Administration, he has worked on strengthening themanagement foundation and governance at both theCompany and the Company’s Group and has abundant
experience and achievements.

5

Naomi Nakayama

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

Managing Director
Chief General Manager of Industrial Market
Headquarters

Director
Chief General Manager of Construction Market
Headquarters

Apr. 1982
Apr. 2010
June 2014
June 2017
June 2019

Apr. 1980
Apr. 2012
June 2016
June 2019

Apr. 1979 Joined the Company
Apr. 2011 Executive Officer
June 2019 Director (incumbent)

Joined the Company
Executive Officer
Director
Managing Director
Senior Managing Director (incumbent)

Joined the Company
Executive Officer
Director
Managing Director (incumbent)

Reason for election

Reason for election

Reason for election

Mr.Kenichi Tanaka has full knowledge of the housing,air & fluidic control systems area and has abundant
experience and achievements having served inimportant positions in the Living Environment Market
Business for many years.

Mr. Toshiyuki Takachio has full knowledge of theindustrial equipment and tools and machine tools
areas and has abundant experience and achievements
having served in important positions in the Industrial
Market Business for many years.

Mr. Naomi Nakayama has full knowledge of thebuilding exterior and construction machines areas andhas abundant experience and achievements having
served in important positions in the Construction
Market Business for many years.

Integrated Report 2021

6

Shinzo Maeda

Apr. 1970
June 2003
June 2005
Apr. 2011
Apr. 2013
Apr. 2014
June 2014
June 2015
Sept. 2015
July 2019
June 2021

Outside Director

Joined Shiseido Company, Limited
Director of Shiseido Company, Limited
Representative Director, President and CEO of Shiseido Company, Limited
Representative Director, Chairperson of Shiseido Company, Limited
Representative Director, Chairperson, President and CEO of Shiseido
Company, Limited
Representative Director, Chairperson of Shiseido Company, LimitedCounselor of Shiseido Company, Limited (retired in June 2020)
Outside Director of the Company (incumbent)
Outside Director of TOSHIBA CORPORATION (retired in June 2018)
Committee Chairperson of Governance Advisory Committee of theCompany (incumbent)
Outside Director of S.T. CORPORATION (incumbent)

7

Keiko Toya

Outside Director

July 1999 Managing Director of MARKETING EXCELLENCE Co. LTD. (incumbent)
Apr. 2006 Full-time Lecturer, Faculty of Business Administration, Toyo University(retired in March 2007)
Apr. 2007 Associate Professor, Doshisha Business School (retired in March 2014)
Apr. 2010 Adjunct Lecturer, Business School, Professional Graduate School, Chuo
University (incumbent)
Apr. 2014 Visiting Researcher, Human Informatics Research Institute, The National
Institute of Advanced Industrial Science and Technology (currently
Human Augmentation Research Center) (incumbent)
Professor, Graduate School of Global Business, Meiji University (incumbent)
Oct. 2014 Member of Science Council of Japan (incumbent)
June 2019 Outside Director of the Company (incumbent)
June 2021 Outside Director of SHIN NIPPON BIOMEDICAL LABORATORIES, LTD.
(SNBL) (incumbent)

Reason for election

Reason for election

Mr. Shinzo Maeda has worked in various public offices, in addition to having been the
Representative Director, Chairperson of the Board, etc. of Shiseido Company,
Limited, and has abundant experience and high principles as a global businessexecutive and intellectual. The Company expected him to reflect that rich knowledge
and experience into the management of the Company.

Ms. Keiko Toya has for many years advised a number of companies on corporate
management as a marketing consultant, has abundant experience and knowledge
through her involvement as a committee member of administrative institutions, etc.,
and she is currently pursuing further research activities. The Company expected her
to reflect that rich knowledge and experience into the management of the Company.

8

Kyosuke Kimura

Outside Director

9

Kazumi Mizumachi

Audit & Supervisory
Board Member

Apr. 1979 Joined Kimura Shindai Industry Co., Ltd. (currently PARAMOUNT BED CO., LTD.)
Aug. 1979 Member of the Board, Kimura Shindai Industry Co., Ltd.
Oct. 1982 Member of the Board, Kimura Kosan Co., Ltd. (currently PARAMOUNTBED HOLDINGS CO., LTD.)
Sept. 1987 Senior Managing Director, PARAMOUNT BED CO., LTD.
Apr. 1991 Senior Executive Director, PARAMOUNT BED CO., LTD.
Apr. 1997 Executive Vice President, PARAMOUNT BED CO., LTD.
Apr. 2009 President and Chief Executive Officer, PARAMOUNT BED CO., LTD.
Feb. 2011 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)
June 2021 Outside Director of the Company (incumbent)

Apr. 1977 Joined the Company
June 2011 Director
June 2014 Full-time Audit & Supervisory Board Member (incumbent)

Reason for election

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 awealth of experience and a high level of insight as a business executive. The
Company expected him to reflect that rich knowledge and experience into the
management of the Company.

Mr. Kazumi Mizumachi possesses experience related to accounting and business
management over many years, as well as experience as a Full-time Audit &Supervisory Board Member of the Company. The Company determined that hepossessed significant insights related to finance and accounting.

10 Yoshiyuki Furumoto

11 Susumu Tsuruta

Audit & Supervisory
Board Member

Outside Audit &Supervisory Board Member

Apr. 1982 Joined the Company
June 2016 Executive Officer
June 2018 Full-time Audit & Supervisory Board Member (incumbent)

Apr. 1986 Registered as an attorney at law (Daini Tokyo Bar Association)
Joined Tsuchiya and Takaya Law Office (currently, Tsuchiya Law Office)Apr. 1990 Established Murakami and Tsuruta Law OfficeJan. 2005 Partner at Tsuchiya Law Office (incumbent)
June 2011 Outside Audit & Supervisory Board Member of the Company (incumbent)

Reason for election

Reason for election

Mr. Yoshiyuki Furumoto possesses experience related business management overmany years. The Company determined that he possessed significant insights related
to finance and accounting.

Mr. Susumu Tsuruta was elected to strengthen the auditing structure of the Company
by utilizing his expert knowledge and experience as a lawyer.

12 Mitsuhiro Honda

Outside Audit & Supervisory Board Member

Apr. 1984 Joined National Tax Agency
July 2010 Assistant Regional Commissioner, Takamatsu Regional Taxation Bureau
July 2012 Professor, Graduate School of Business Sciences, University of Tsukuba(incumbent)
May 2013 International Tax Advisor, TOMA Tax Account’s Corporation (incumbent)
Apr. 2014 Part-time Lecturer, Graduate School of Waseda University (incumbent)
Mar. 2016 Outside Audit & Supervisory Board Member, Roland DG Corporation(incumbent)

Apr. 2016 Concurrently Appointed Lecturer, Professional Graduate School of Global
Business, Meiji University (incumbent)
Apr. 2017 Research Grant Selection Committee Member, The Institute of Tax
Research and Literature (incumbent)
Aug. 2017 Member of the Committee of Experts on International Cooperation in Tax
Matters, United Nations (incumbent)
June 2018 Outside Audit & Supervisory Board Member of the Company (incumbent)

Reason for election
Mr. Mitsuhiro Honda has experience as an Outside Audit & Supervisory Board Member at Roland DG Corporation and expertise in tax affairs developed at the National Tax
Agency and as a graduate school professor. The Company determined that he possessed significant insights related to taxes and accounting.

Integrated Report 2021

47

Business Foundation to Connect to the Future ― Corporate Governance

Chapter

Basic approach to corporate governance2
As a social entity, YUASA TRADING aims to maximize corporate value, return profits to society, and continue to operate in thelong-term by maintaining and expanding a multi-faceted and positive 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.

Audit & Supervisory Board
The Audit & Supervisory Board of the Company is chaired by full-time Audit & Supervisory Board
Member Kazumi Mizumachi and is comprised of two full-time Audit & Supervisory Board Members
and two part-time Audit & Supervisory Board Members (Outside Audit & Supervisory Board Members).
Based on 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 business site, and survey subsidiaries in order
to conduct audits related to execution of duties of Directors and internal controls.

The Company’s Group is a large conglomerate comprised of 42 affiliated companies, including 34 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.

Attendance to Audit & Supervisory Board Meetings

Corporate governance system (as of October 31, 2021)
Elect/dismiss

2

Audit & Supervisory Board (4)(including 2 Outside Audit & Supervisory Board Members)

Audit

3

Consult

Governance Advisory Committee (6)AdviseAccounting
audit

1

3

Collaborate

Board of Directors (8) (including 3 Outside Directors)
Appoint/
dismiss

Consult

Supervise

Representative Director

AdviseEthics and Compliance Committee

Export Administration
Committee

Personnel
Committee

Internal
Auditing Office

Board of Directors

4

Chaired by Hiroyuki Tamura, Representative Director and President, the Board of Directors is the body making
decisions related to important business execution and monitoring business execution of Directors. The
Company holds the Board of Directors meetings once a month, in principle, as well as other extraordinary
meetings as necessary. In order to further strengthen corporate governance and ensure managementtransparency, the Company designated three 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.

Attendance to the Board of
Directors Meetings for the fiscal
year ended March 31, 2021

100%

Attendance to the Board of Directors Meetings(As of September 2021)

Directors

Audit & Supervisory Board Members
Outside /Outside /Outside /Independent Independent Independent

FY2022/3

Toshiyuki
Takachio
13/13
Toshiyuki
Takachio
8/8

Naomi
Nakayama
13/13
Naomi
Nakayama
8/8

ShinzoMaeda
13/13
Shinzo
Maeda
8/8

Keiko
Toya
13/13
Keiko
Toya
8/8

Kyosuke
Kimura4/4

Full-time

Full-time

Kazumi
Mizumachi
13/13
Kazumi
Mizumachi
8/8

Yoshiyuki
Furumoto
13/13
Yoshiyuki
Furumoto
8/8

Outside /Outside /Independent Independent
SusumuTsuruta
13/13
SusumuTsuruta
8/8

Mitsuhiro
Honda
13/13
Mitsuhiro
Honda
8/8

*1 For the fiscal year ended March 31, 2021, all Directors and Audit & Supervisory Board Members were reappointed. As such, the number of Board of Directors Meetingsfrom the start of the fiscal year are counted.
*2 All Directors and Audit & Supervisory Board Members attended all Board of Directors meetings.
*3 The attendance of Director Kyosuke Kimura for the fiscal year ending March 31, 2022 is shown for after his appointment on June 24, 2021.

48

Integrated Report 2021

FY2022/3

7/7

7/7

7/7

7/7

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

Shinzo Maeda
Keiko Toya
Kyosuke Kimura
Susumu Tsuruta
Mitsuhiro Honda
Haruo Sanoki(Deliberation details)• Matters related to appointment and dismissal of Directors• Matters related to remuneration of Directors• Matters related to analysis and evaluation on the effectiveness of the overall Board of Directors and other proposals related to governanceOn 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 the strengthening and enhancement of the governance system.

FY2021/3

15/15

Governance Advisory Committee

Committee Chairperson
MemberMemberMemberMemberMember

The Company implemented an Executive Officer system in order to strengthen the function of the Board of Directors as adecision-making body and an organization that oversees business execution. In addition to aiming to optimize the number of
Directors, the Company elected three Outside Directors as we strengthen the execution structure by accelerating businessexecution and clarifying responsibilities.

KenichiTanaka13/13
KenichiTanaka8/8

15/15

The committee members as of June 24, 2021 are as follows.

Market Headquarters, Management Administration, domestic and overseas group companies

Haruo
Sanoki
13/13
Haruo
Sanoki8/8

15/15• Election of eight Directors; revision of remuneration amount for Outside Directors; election of one substitute Audit & Supervisory
Board Member at the 142nd Ordinary General Meeting of Shareholders• Changes to the Board of Directors deliberation standards

Executive Officers (26)Hiroyuki
Tamura13/13
Hiroyuki
Tamura8/8

15/15This committee meeting was held four times in the fiscal year ended March 31, 2021 and reported to the Board of Directors on thefollowing matters.

Internal Control
Committee(5 Directors serving concurrently, 21 not serving concurrently;
includes 4 serving as Senior Executive Officers)1

Outside /Outside /Independent Independent
Kazumi Yoshiyuki Susumu Mitsuhiro
Mizumachi Furumoto Tsuruta
Honda
Full-time Full-time(1) Matters related to appointment and dismissal of Directors(2) Matters related to remuneration of Directors(3) Matters related to analysis and evaluation on the effectiveness of the overall Board of Directors and other proposals related to governance

ReportReportCorporate Management
Committee

Outside /Outside /Independent Independent
Kazumi Yoshiyuki Susumu Mitsuhiro
Mizumachi Furumoto Tsuruta
Honda

The Company established the voluntary Governance Advisory Committee as an advising body for the Board of Directors in order to further
strengthen corporate governance and improve the fairness, transparency, and objectivity of procedures related to important matters decided
in the Board of Directors Meetings. It is comprised of all Independent Outside Directors and Independent Outside Audit & Supervisory Board
Members, as well as one Representative Director. It deliberates on the following matters and reports to the Board of Directors.

(Directors excluding Outside Directors serving concurrently
as Executive Officers)

Instruct/supervise
Marketing Strategy Meeting

Audit & Supervisory Board Members

Accounting Auditor (Crowe Toyo & Co.)

Sustainability Promotion Committee (8)(Committee Chairperson: Representative Director
Member: Directors/Independent Outside Directors/Senior
Executive Officers)

FY2021/3

Elect/dismiss

ReportCollaborate(Committee Chairperson: Independent Outside Director
Member: Independent Outside Directors/Independent Outside
Audit & Supervisory Board Members/1 Representative Director)

4Elect/dismiss

Report100%(As of September 2021)

Audit & Supervisory Board Members
Full-time Full-time

General Meeting of Shareholders

Attendance to Audit & Supervisory
Board Meetings for the fiscal year
ended March 31, 2021

Sustainability Promotion Committee
In order to ensure the sustainable growth of the Company and the Company’s Group and increase the medium- to long-term corporate
value, the Company established the Sustainability Promotion Committee to report on policies and activity plans related to sustainability
to the Board of Directors and promote and manage the management that contributes to sustainability, including important ESG issues.
This committee is comprised on persons selected by the Board of Directors of the Company, deliberates the following matters, andreports its findings to the Board of Directors.
(1) Designate important sustainability matters for the Company’s Group from a medium- to long-term perspective, deliberatematters for the resolution of issues, and design the future shape of the Group(2) Enact, change, and abolish basic polices, guidelines, and procedures in order to execute on the item above(3) Matters the Sustainability Promotion Committee recognizes as needed related to the sustainability management of the Company’s Group(4) Advise on matters from the Board of Directors
The committee members as of October 22, 2021 are as follows.
Committee Chairperson
Vice Committee Chairperson
Members

Representative Director, Senior Managing Director
Senior Executive Officer
Senior Managing Director
Managing Director
Director
Independent Outside Director
Independent Outside Director
Independent Outside Director

Haruo Sanoki
Noriyoshi Takahashi
Kenichi Tanaka
Toshiyuki Takachio
Naomi Nakayama
Shinzo Maeda
Keiko Toya
Kyosuke Kimura

Integrated Report 2021

49

ChapterBusiness Foundation to Connect to the Future ― Corporate Governance

Skill Matrix for Directors
Name
Position and main responsibility in
the Company

Corporate
management

Timeline of Corporate Governance Strengthening Efforts
Marketing

Hiroyuki Tamura

Organization andpersonnel
development

Finance andaccounting

Legal affairs & risk
management

Global operations

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

FY2014/3

FY2016/3

FY2019/3

Elected one
Independent Outside
Director

Elected two
Independent Outside
Directors

Introduced
performance-linked
share awards

FY2021/3

Haruo Sanoki• Reduced strategic shareholdings• Increased the number of Outside
Directors• Strengthened the monitoring
function of the Board of Directors

Representative Director, Senior
Managing Director
Supervisory Manager of Management
Administration

Kenichi Tanaka

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

FY2020/3

Toshiyuki Takachio

FY2018/3

Managing Director
Chief General Manager of Industrial
Market Headquarters• Elected female Independent Outside Director• Established Governance Advisory Committee
centered on Independent Outside Officers• Eliminated advisor system

Elected one substituteOutside Director

Naomi Nakayama

Strengthening efforts conducted in the fiscal year ended March 31, 2021

Director
Chief General Manager of Construction(1) Reduced strategic shareholdings

Market Headquarters

Strategic shareholdings reduction standards (common to group companies)•

Shinzo Maeda
Outside Director

Holding limit standards
Net asset standards Reduce if shareholdings amount exceeds a set
percentage of net assets of held company
Income standards•

Keiko Toya
Outside Director

Reduce if shareholdings amount exceeds a set
percentage of profit of held company

Continual holdings standards Reduce if profitability to market cap falls below
a set percentage

Sales results for the fiscal year ended March 31, 2021 (including group companies)
14 companies, 605,000 shares

Kyosuke Kimura(2) Increased percentage of Outside Directors to atleast one third
Composition of the Board of Directors(percentage of Independent Outside Directors)
Full-time Director

Independent Outside
Director

Percentage of Independent
Outside Directors

5

3

37.5%

(3) Strengthened the monitoring function of
the Board of Directors
Receiving the report of the Governance Advisory Committee,
we changed the Board of Directors deliberation standards andstrengthened the monitoring function of the Board of Directors.

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 Director. It is not an exhaustive list of all theexpertise and experience the Director possesses.

Message from newly elected Outside Director

Evaluation of Effectiveness of Board of Directors

I am honored to be elected as Outside Director of YUASA TRADING CO., LTD.
I was a member of the Company for six years from 1973. So even though I am in theposition of an outside third-party, I do have affection for the Company. At the time, I was
blessed with good customers and felt a very warm corporate culture here.

In addition to the Directors and Audit & Supervisory Board Members doing a self-evaluation of their execution of duties, we use aquestionnaire about the effectiveness of the Board of Directors to evaluate the aptness of operational methods, procedures, anddeliberation standards. These results are reported to the Board of Directors in order to improve the operation of the Board of
Directors.
For evaluating the effectiveness of the Board of Directors for fiscal year ended March 31, 2021, all Directors and Audit &Supervisory Board Members filled out a questionnaire (self-evaluation). The results were reported to the Governance Advisory
Committee and then deliberated. Furthermore, it has been determined that the Governance Advisory Committee, which iscomprised of all Independent Outside Directors, Independent Outside Audit & Supervisory Board Members, and one Representative
Director, is engaging in lively exchange of opinions regarding the Company governance and the improvement of corporate value.
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. Based on the results of the questionnaire of this period, the Governance Advisory
Committee will issue analyses and evaluation results for the operations of the Board of Directors. We then review the Board of
Directors deliberation standards and aim to make improvements to create more nimble Board of Directors operations.

Procedures for evaluation of effectiveness of Board of Directors (Fiscal year ended March 31, 2021)
Mid-May 2021
Distribute questionnaire

50

Integrated Report 2021

Early-June 2021
Collect and analyze
questionnaire; report anddeliberate in Governance
Advisory Committee

Mid-June 2021

Late-June 2021

Report and deliberate
evaluation results in Board of
Directors; determine results
overview to disclose

Announce (submit Corporate
Governance Report)

After resigning, I have been involving in the management of PARAMOUNT BED CO., LTD.
as a founder for over 40 years. After managing technology development, production, sales,
new businesses, and global expansions, I became the President and Chief Executive
Officer in 2009. I strove to increase corporate value while keeping in mind the need tosatisfy all stakeholders.

Outside Director

Kyosuke Kimura▶ Career summary

P47

The role of Outside Directors is to monitor management decision-making and execution ofbusiness from an “outside” perspective. I hope to give advice on business strategy andplans based on my experience as a company manager.
I will do my best for YUASA TRADING to fully execute its capabilities based on its traditions
and relationship with customers developed over a long history as it aims to achieve the“YUASA VISION 360.” I will also work to ensure that the Company takes on challenges to
dig into growth businesses and increases corporate value while deepening communication
with stakeholders. I hope to contribute even a little to the future of the Company 400 and
500 years after its founding.

Integrated Report 2021

51

ChapterBusiness Foundation to Connect to the Future ― Corporate Governance

Remuneration for Directors (and Other Officers)

Compliance and Risk Management

Total amount of remuneration, total amount of remuneration by type, and number of recipient
directors (and other officers) (Results for the fiscal year ended March 31, 2021)
Categories of directors (and other officers)

Total amount of remuneration(millions of yen)

Total amount of remuneration by type (millions of yen)Basicremuneration

Share awards

BonusesNumber of recipient directors(and other officers)

The Company’s Group has enacted a management philosophy, ethics policy, and code of conduct. The Representative Director
and President is prioritizing the execution of these policies. By repeatedly expressing this mindset to Directors and employees,
the hope is that laws and regulations and compliance to corporate ethics become a foundation for all company activities.

Directors (excluding Outside Directors)

285

173

65

46

8

Audit & Supervisory Board Members(excluding Outside Audit & Supervisory Board Members)

49

49

-

-

2

We have established an Ethics and Compliance Committee that is under the direct control of the Representative Director and President.

Outside Directors

21

21

-

-

2

The chair of this committee is selected by the Representative Director and President from among the Directors. The Ethics andOutside Audit & Supervisory Board Members

19

19

-

-

2

Total

375

263

65

46

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.
(1) Directors
A maximum of ¥380 million per year (of which not more than ¥30 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 theperformance-linked share awards system. As of the conclusion of the General Meeting of Shareholders, the number of Directors is ten (including two Outside Directors).
(2) Audit & Supervisory Board Members
A maximum of ¥80 million per year. The Company has abolished the remuneration of share acquisition rights.
2. The bonus above is the maximum provision for bonuses for directors (and other officers) for the eight Directors (excluding Outside Directors) for this fiscal year.
3. The remuneration sum for Directors (excluding Outside Directors) does not include the ¥89 million (including bonuses) in employee wages for Directors who serve
concurrently as employees.
4. As of the conclusion of the 129th Ordinary General Meeting of Shareholders held on June 27, 2008, the Company abolished the retirement benefits for directors (andother officers) for Directors and Audit & Supervisory Board Members. For Directors and Audit & Supervisory Board Members who continued to serve after theconclusion of the said General Meeting of Shareholders, the Company decided to provide retirement benefits for directors (and other officers) based on the period theofficer served up until the abolishment of this system. This sum will be paid when each officer retires.
5. A resolution of the Board of Directors Meeting held on May 14, 2021 determined the remuneration of individual Directors shall be decided by the Board of Directors inorder to ensure further fairness, objectivity, and transparency of the decision-making process for the remuneration of Directors.
6. Eight Directors, including three Outside Directors, were elected at the 142nd Ordinary General Meeting of Shareholders held on June 24, 2021. In addition, remuneration amount ofmonetary remuneration for Directors (no more than ¥380 million per year) was unchanged and the remuneration amount for Outside Directors was set as no more than ¥50 million.

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 the previous fiscal year.
• Performance-linked share awards are comprised of a “fixed portion” that provides points for each fiscal year and a “performance-linked
portion” that provides points based on the achievement level of performance targets at the final fiscal year of the Mid-termManagement Plan. This remuneration is paid upon retirement (one point = one share). Further, since 50% is paid as shares of theCompany 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
the independent 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 andcorporate value and share interests with shareholders. The
following indicators are used for evaluations in the Mid-termManagement Plan “Growing Together 2023” that ends in thefiscal year ending March 31, 2023.

52

Compliance

Evaluation indicator(standard)

Evaluation
weightPerformancelinked factor

Consolidated net sales(¥545.0 billion)

1/3

0-2.0

Consolidated ordinary profit(¥16.4 billion)

1/3

0-2.0

Profit attributable to owners of parent(¥11.5 billion)

1/3

0-2.0

Integrated Report 2021

Relationship between evaluation indicatorsand performance-linked factors> Compliance system

Compliance Committee utilizes in-house training to boost its effectiveness and monitors the compliance status along with the Internal
Auditing Office. It has formed an ethics and compliance system that spans across the Company’s Group.

> Ethics and Compliance Hotline
A permanent hotline has been established to directly report and advise with the Ethics and Compliance Committee, lawyers from advising
law firms, Audit & Supervisory Board Members, and YUASA Labor Union if Directors or employees of the Company violate or may haveviolated laws and regulations, the Articles of Incorporation, or other regulations. This system also ensures that persons who issue suchreports will not receive disadvantageous treatment for this reason. After receiving an inquiry or report, the Ethics and Compliance
Committee will investigate the incident, enact measures to prevent it from occurring again, and will report important 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 themanagement of information through manuals and in-house training in order to eliminate and eradicate 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 (Tokuboren) and strives to gather information and preempt transactions with anti-social forces.

Risk Management
In the risk management system of the Company, the Director in charge of the Management Administration is appointed as the
Risk Management Supervisory Manager. The Company has established a system to swiftly and appropriately transmit
information and respond to emergencies for each expected risk.

> Risk Management Supervisory Manager
The Risk Management Supervisory Manager presides over the Ethics and Compliance Committee, places staff depending on the categoryof the risk, grasps various risks in business activities of the Group based on related internal regulations/messages, proposes
countermeasures, comprehensively manages risks across the Group (including raising awareness), and reports the status of risk
management to the Board of Directors as needed.

> 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 to compliance of export laws and regulations. This
committee is responsible for raising awareness and monitoring activities.

> BCP
In November 2017, the Company revised the basic policy of the BCP (business continuity plan) that oversees the establishment of adisaster management system for risks to business operations in the case of a natural disaster like earthquakes or flooding, or viruses like
COVID-19. The Company is developing a headquarters disaster prevention plan, stockpiling evacuation supplies, constructing a payment
system, implementing a system to confirm people’s safety, creating and distributing disaster prevention cards, and executing disasterprevention training.

(Method of determining performance-linked share awards amount)
Consolidated
net sales

Consolidated
ordinary profit

Profit attributableto owners of parent

Performancelinked factor¥559.5 billion
or more¥21.4 billion
or more¥15.0 billion
or more2.0 (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)

Please read the Securities Report for details on
remuneration for directors (and other officers).

Integrated Report 2021

53

Financial data

Key Financial Data

Please read the Securities Report for details on financial information.

Financial highlights (consolidated)

Non-financial highlights (non-consolidated)

Net sales/Operating profit/Operating profit to net sales ratio( billionsof yen )Net sales(left axis)(

Operating profit billionsof yen(right axis)

Operating profit
to net sales ratio

ROE)

Equity ratio

Number of employees

(%)

(%)

(persons)

15

40

1,250

12.0

12

37

9.0

9

200.0

6.0

100.0

500.0

300.0

0

2.45%

2017/3

2.47%

2018/3

2.54%

2019/32.42%

2020/3

Employees(male)

Percentage of taking paid leave
Employees(female)Volume of power used/vehicle fuel consumption
Volume of power used
(left axis)

Vehicle fuel consumption(km/L)(right axis)

(%)

(kWh)

60

2,700,000

1,000

55

2,620,000

14.8

34

750

50

2,540,000

14.6

6

31

500

45

2,460,000

14.4

3.0

3

28

250

40

2,380,000

14.2

0

0

15.0

400.0

Number of
employees

15.0

2.08%

2021/32017/3

2018/3

2019/32020/325

2021/32017/3

2018/3

2019/32020/32021/30

2017/3

2018/3

2019/32020/32021/335

2017/3

2018/3

2019/32020/32,300,000

2021/32017/3 2018/3 2019/3 2020/3 2021/3

Key Financial Data

14.0

(fiscal year)
Unit

FY2011/3

FY2012/3

FY2013/3

FY2014/3

FY2015/3

FY2016/3

FY2017/3

FY2018/3

FY2019/3

FY2020/3

FY2021/3

Net sales

millions of yen

355,910

396,732

400,252

442,213441,723

442,042446,335

461,749

493,627

491,348

432,185

Operating profit

millions of yen

4,899

6,634

7,310

9,518

9,815

10,357

10,923

11,402

12,517

11,871

8,983

Ordinary profit

millions of yen

4,691

6,714

7,827

9,782

10,353

11,03911,704

12,14913,437

12,804

10,011

Profit attributable to owners of parent

millions of yen

3,293

4,202

5,276

5,483

7,494

7,190

7,777

8,261

9,038

8,950

6,930

Total assets

millions of yen

178,084

195,440

196,740

205,669

204,897

202,891

216,984

235,022

247,747

237,071

237,487

Interest-bearing debt

millions of yen

40,31434,94732,35722,296

11,935

4,972

3,117

3,138

3,048

4,290

4,473

Net debt to equity ratio

times

0.48

0.13

0.09

(0.10)(0.37)(0.45)(0.47)(0.46)(0.44)(0.49)(0.43)Net cash provided by (used in) operating activities millions of yen

10,958

11,602

5,729

9,407

12,476

9,114

11,908

6,645

4,387

12,9705,982

Net cash provided by (used in) investing activities millions of yen

(715)

(724)

(3,329)

(880)

3,550

(589)

(3,652)(1,355)(873)(2,843)(3,509)Net cash provided by (used in) financing activities millions of yen(3,713)Financial data (consolidated)(7,669)(6,440)(4,323)(11,782)(11,810)(8,982)(5,501)(2,418)(3,182)(3,509)EPS (Basic earnings per share)

yen

15.22

19.37

24.21

250.78340.82326.27352.45373.22408.27403.55313.03

BPS (Net assets per share)yen

135.73151.91172.812,010.64

2,369.99

2,573.88

2,910.02

3,236.29

3,464.20

3,635.18

4,057.16

Dividend per share

yen

3

5

6

6

-

100

95

110

140

150

100

ROA (Return on assets)

%

2.6

3.4

4.0

4.9

5.0

5.4

5.6

5.4

5.6

5.3

4.2

ROE (Return on equity)

%

16.0

20.3

20.8

13.4

15.6

13.2

12.9

12.2

12.2

11.4

8.1

Equity ratio

%

16.5

16.9

19.1

21.4

25.5

28.0

29.6

30.5

30.9

34.0

37.7

Dividend payout ratio

%

19.7

25.8

24.8

23.9

24.9

30.6

27.0

29.5

34.3

37.2

31.9

Non-financial data (non-consolidated)persons

762

807

820

823

856

870

896

932

975

1,030

1,079

Employees (male)persons

507

533

538

542

561

568

571

583

601

617

644

Employees (female)persons

255

274

282

281

295

302

325

349

374

413

435

years old

39.9

40.3

39.9

39.6

39.3

39.1

38.8

38.6

38.3

38.2

38.0

Employees (male)years old

41.3

41.3

41.1

40.7

40.6

40.5

40.3

40.2

39.8

39.8

39.3

Employees (female)years old

37.3

38.0

37.7

37.4

36.7

36.5

36.1

35.9

35.9

35.8

36.0

years

14.7

14.8

14.5

14.3

13.9

13.1

13.6

13.3

12.8

12.7

12.3

Employees (male)

years

15.7

15.7

15.3

15.0

14.9

14.8

14.8

14.5

13.9

13.9

13.4

Employees (female)

years

12.6

13.1

13.1

12.8

12.0

11.9

11.6

11.3

10.9

10.8

10.8

thousands of yen

6,071

6,793

7,078

6,926

7,314

7,525

7,664

7,691

7,844

7,892

7,339

Employees (male)thousands of yen

7,033

7,914

8,336

8,094

8,436

8,770

9,008

9,112

9,297

9,532

8,883

Employees (female)thousands of yen

4,182

4,757

4,673

4,688

5,039

5,096

5,136

5,149

5,341

5,272

4,977

Number of employees

Average age

Average length of service

Average annual salary

54

Percentage of taking paid leave

%

-

-

38.7

38.9

49.4

50.7

51.6

53.9

54.1

51.1

52.1

Volume of power used

kWh

-

-

-

2,731,320

2,679,576

2,633,9782,613,798

2,546,025

2,409,014

2,363,796

2,446,531

Vehicle fuel consumption

km/L

-

-

-

15.0

14.7

14.4

14.3

14.8

15.0

14.7

14.3

Integrated Report 2021

Integrated Report 2021

55

Financial data

Consolidated Financial Statements
Consolidated balance sheets
As ofMarch 31, 2020

(millions of yen)
As ofMarch 31, 2021

Assets197,460

185,777

Cash and deposits

43,78042,567

Notes and accounts
receivable - trade116,621

107,874

Current assets

Liabilities
Current liabilities

149,894

138,081

114,952

90,009

Electronically recorded
obligations - operating

18,55533,945

Short-term borrowings

3,489
68
2,506
2,469

3,744
68
995
2,383

Lease obligations

18,287

18,678Inventories

16,19014,574

Other

2,641

2,159

(59)

(77)

39,61051,71013,601

15,665320

1,076

Buildings and structures

2,847

3,199

Machinery and equipment

125

122

Tools, furniture and fixtures

555

483

9,433

10,647

Leased assets

101

111

Construction in progress

218

24

5,192

5,148

Goodwill

2,907

2,910

Other

2,285

2,237

20,81630,896

Valuation difference on
available-for-sale securities

Investment securities

9,335

13,679Long term a money claim

1,364

1,292

188

218

Retirement benefit asset

6,718

12,205

Share acquisition rights

Other

3,703

3,950

Non-controlling interests

Allowance for doubtful accounts

(494)

(449)

237,071

237,487

Non-current assets
Property, plant and equipment
Fixed assets for rent

Land

Intangible assets

Investments and other assets

Deferred tax assets

Total assets

As ofMarch 31, 2021

Notes and accounts payable- tradeElectronically recordedmonetary claims - operating

Allowance for doubtful accounts

As ofMarch 31, 2020

Income taxes payable
Provision for bonuses
Provision for bonuses for
directors (and other officers)

86

66

7,766
6,148
801
135
1,337

6,868
9,163
728
104
3,912

Provision for retirement benefits
for directors (and other officers)

132

196

Provision for share awards

107

139

Provision for share awards for
directors (and other officers)

80

127

705
2,847
156,042

947
3,007
147,245

76,356
20,644
6,804
50,269(1,362)80,474
20,644
6,815
54,749(1,735)

4,327

9,126

2,515

4,334

Deferred gains or losses onhedges020Foreign currency translation
adjustment

(110)

(272)

Remeasurements of defined
benefit plans

1,921

5,044

299
45
81,028272
368
90,242

237,071

237,487

Other
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities

Retirement benefit liability
Other
Total liabilities

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Accumulated othercomprehensive income

Total net assets
Total liabilities and net assets

Consolidated statements of income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Other
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on step acquisitions
Gain on extinguishment of tie-in shares
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Amortization of leasehold interests in land
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on valuation of investments in capital
Loss on dissolution of investment in capital
Logistics restructuring cost
Loss on disaster
Loss on COVID-19
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent(millions of yen)
Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

491,348444,268
47,08035,208
11,871
2,050
1,420
262
367
1,117
1,032
84
12,804
575
44
530
132
4
12
32
14
0
0
56
12
13,247
4,556
(233)
4,323
8,923
(26)
8,950

432,185
389,004
43,181
34,197
8,983
2,173
1,361
235
576
1,145
903
160
81
10,011
729
0
679
33
16
265
2
41
88
3
10
117
10,475
3,048
496
3,544
6,930
0
6,930

Consolidated statements of comprehensive income(millions of yen)

Fiscal year ended March 31, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Fiscal year ended March 31, 2021

8,923
(1,691)(1,201)
1
19
(510)
7,232

6,930
4,799
1,821
19
(163)
3,122
11,7307,257(24)11,7290Consolidated statements of cash flows

Securing a stable financial foundation
In order to realize growth investments (total of ¥35.0 billion over six years) expected in thequantitative plan of YUASA VISION 360 and Growing Together 2023 and continuous return ofprofit to shareholders, we consider the stability of the financial foundation to be a mostimportant factor.
YUASA TRADING has received an A rating from Rating and Investment Information, Inc. (R&I).
−

56

Integrated Report 2021

(millions of yen)
Fiscal year ended March 31, 2020

Rating and Investment
Information, Inc. (R&I)

A-

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of period

Fiscal year ended March 31, 2021

12,970(2,843)(3,509)3
6,620
36,626-

5,982(3,509)(3,713)(73)(1,313)43,246
13

43,246

41,947

Integrated Report 2021

57

YUASA TRADING Group Network (as of April 1, 2021)
Japan Network

Provide proprietary solutions that connect products, services, and systems.

⃝Head Office
Sumitomo Fudosan Kanda Bldg. 16-19F (reception
on 17F), 7, Kanda-Mitoshirocho, Chiyoda-ku, Tokyo
101-8580⃝Hokkaido Branch Office
Sapporo Shiroishi Daiichi Seimei Bldg., 6-1-20,
Higashi Sapporo 3-jo, Shiroishi-ku, Sapporo-shi,
Hokkaido 003-8577

Hamamatsu Business OfficeHamamatsu Aoiro Kaikan Bldg. 302, 2-10-1, Chuo,
Naka-ku, Hamamatsu-shi, Shizuoka 430-0929▪Okazaki Branch Office
Okazaki Higashi Bldg. 4F, 3-11, Koseidoriminami,
Okazaki-shi, Aichi 444-8577⃝Chubu Branch Office2-171, Takayashiro, Meito-ku, Nagoya-shi, Aichi
465-8503⃝Tohoku Branch Office
1-8-2, Shindenhigashi, Miyagino-ku, Sendai-shi,
Miyagi 983-8545▪Hokuriku Branch OfficeToyamafukokuseimei 2nd Bldg. 6F, 6-11,
Sakurabashidori, Toyama-shi, Toyama 930-8552▪Koriyama Branch Office
2-38-21, Kuwano, Koriyama-shi, Fukushima
963-8025

Kanazawa Business OfficeUrban Useful Bldg. 2F, 8-1, Futatsuyamachi,
Kanazawa-shi, Ishikawa 920-0065▪Niigata Branch Office3-4-10, Bentenbashidori, Chuo-ku, Niigata-shi,
Niigata 950-8737▪Nagano Branch Office
Showa Bldg. 5F, 259-2, Takada, Nagano-shi, Nagano
381-0034
Matsumoto Business Office
Design Center Bldg. 3F, 1095-1, Shimadachi,
Matsumoto-shi, Nagano 390-0852⃝Kita-Kanto Branch Office
4-7-5, Miyahara-cho, Kita-ku, Saitama-shi, Saitama
331-8540
Takasaki Business Office
Harajisho 2nd Bldg. 8F, 4-11, Sakae-cho,Takasaki-shi, Gunma 370-0841▪Kyoto Branch Office
25, Takedakitamitsugui-cho, Fushimi-ku, Kyoto-shi,
Kyoto 612-8419⃝Branch office ▪Branch

8
12
11

Business officebranch offices
branches

10
14
27

business offices(as of March 31, 2021)⃝Kansai Branch OfficeYuasa Osaka Bldg. 2-4-12, Minamisenba, Chuo-ku,
Osaka-shi, Osaka 542-8660
Kobe Business Office
Harborland Diamond Nissei Bldg. 14F, 1-7-4,
Higashikawasaki-cho, Chuo-ku, Kobe-shi, Hyogo
650-0044▪Himeji Branch Office
Himejieki Minami Maku Bldg. 4F, 3-50,
Higashinobusue, Himeji-shi, Hyogo 670-0965▪Okayama Branch Office
Meijiyasudaseimei Okayama Kuwadacho Bldg. 2F,
18-28, Kuwada-cho, Kita-ku, Okayama-shi, Okayama
700-0984

Utsunomiya Business Office
Yamaguchi Bldg. 7F, 4-1-20, Higashishukugo,
Utsunomiya-shi, Tochigi 321-0953▪Shikoku Branch Office
6-15, Higashihazemachi, Takamatsu-shi, Kagawa
761-8533▪Higashi-Kanto Branch Office
Sun Plaza Bldg. 3F, 4-5-10, Kashiwa, Kashiwa-shi,
Chiba 277-0005
Nishi-Kanto Business Office
Kunitachi KT Bldg. 6F, 1-4-15, Higashi, Kunitachi-shi,
Tokyo 186-8505▪Yokohama Branch Office
Nisso 5th Bldg. 2F, 2-10-39, Kitasaiwai, Nishi-ku,
Yokohama-shi, Kanagawa 220-0004

Matsuyama Business Office
Obel Bldg. 301, 1-7-1, Takewaramachi,
Matsuyama-shi, Ehime 790-0052⃝Chugoku Branch Office
Sanyo Bldg. 8F, 4-6-16, Otemachi, Naka-ku,
Hiroshima-shi, Hiroshima 730-8561▪Shizuoka Branch Office
Daidoseimei-Shizuoka Bldg. 2F, 59-6, Kurogane-cho,Aoi-ku, Shizuoka-shi, Shizuoka 420-0851

Yonago Business Office
Harima Bldg. 4F, 2-218-1, Doshomachi, Yonago-shi,
Tottori 683-0064

Kagoshima Business OfficeDaiwa Kagoshima Bldg. 4F, 12-13,
Kamoikeshinmachi, Kagoshima-shi, Kagoshima
890-0064
Okinawa Business Office
Okinawaken Kensetsu Kaikan 6F, 5-6-8, Makiminato,
Urasoe-shi, Okinawa 901-2131

The YUASA TRADING Group has 26 group companies in Japan.
Provide new value and proprietary functions, such as engineering functions and import distributor functions.

▪KOKKO CO., LTD.
4600 Nakasu Suwa-shi, Nagano 392-8505
TEL: +81-266-52-2457▪YUASA NEOTEC CO., LTD.
MD-Kanda Bldg. 5F, 9-1, Kanda-Mitoshirocho,
Chiyoda-ku, Tokyo 101-0053
TEL: +81-3-6369-1740▪YOUR TECHNICA CO., LTD
7, Kanda-Mitoshirocho, Chiyoda-ku, Tokyo 101-8580
TEL: +81-3-6369-1633▪ROBOT ENGINEERING CO., LTD.
374-4, Arakuchi-machi, Maebashi-shi, Gunma
379-2107
TEL: +81-27-212-5720▪NAKAGAWA KINZOKU CO.,LTD.
1-32, Kanda-Suda-cho, Chiyoda-ku, Tokyo
101-0041
TEL: +81-3-3785-7001▪NAGAISANGYO CO.,LTD.
1-36, Goi-Kanasugi, Ichihara-shi, Chiba 290-0056
TEL: +81-436-23-1344

Overseas Network▪YUASA PRIMUS CO., LTD.
Tomizawacho Green Bldg. 2F, 9-8,
Nihonbashi-Tomizawa-cho, Chuo-ku, Tokyo
103-0006
TEL: +81-3-5695-1515

China

Malaysia•

YUASA TRADING (SHANGHAI) CO.,LTD. 1[Headquarters] Shanghai[Branches] Dalian Branch/Tianjin Branch/Suzhou Branch/Guangzhou Branch▪YUKO CORPORATION
Yuasa Osaka Bldg. 9F, 2-4-12, Minamisenba,
Chuo-ku, Osaka-shi, Osaka 542-8660
TEL: +81-6-4977-6780▪MARUBOSHI CO., LTD.
2-3-20 Itachibori Nishi-ku, Osaka-shi, Osaka 550-0012
TEL: +81-6-6532-1614

58

Integrated Report 2021

▪MARUKEN TRADING CO.,LTD.
7-14, Taiheitori, Nakagawa-ku, Nagoya-shi, Aichi
454-0838
TEL: +81-52-354-3121•YUASA ENGINEERING SOLUTION6 (THAILAND) CO.,LTD.

▪FUSHIMAN SHOJI CO.,LTD.
5-1, Kitahachijyonishi, Kita-ku, Sapporo-shi,
Hokkaido 060-0808
TEL: +81-11-716-7101▪YUASA NENRYO CO.,LTD.
2-171, Takayashiro, Meito-ku, Nagoya-shi, Aichi
465-8503
TEL: +81-52-779-8460▪YUASAQUOBIS CO., LTD
OP Bldg. 2F,1-8, Kanda-Nishiki-cho, Chiyoda-ku,
Tokyo 101-0054
TEL: +81-3-6369-1403▪CHUBU IBI CO.,LTD.
2-171 Takayashiro, Meito-ku, Nagoya-shi, Aichi
465-8503
TEL: +81-52-779-8460▪URAYASU KOGYO CO., LTD
2-8-7, Kinshi, Sumida-ku, Tokyo 130-0013 Japan
TEL: +81-3-3624-2441▪YUASA SYSTEM SOLUTIONS CO.,LTD.
24-1, Nihonbashi Hakozaki-cho, Chuo-ku, Tokyo
103-0015
TEL: +81-3-5847-7561▪YUASA MACROS CO., LTD.
1047 Kamatsuka Kounosu-shi, Saitama 369-0112
TEL: +81-48-598-8712▪FUJI QUALITY HOUSE CO., LTD.
1, Nishida-cho, Isesaki-shi, Gunma 372-0058
TEL: +81-270-26-5121[Headquarters] Kuala Lumpur[Headquarters] Gurgaon[Branch] BangaloreIndonesia

U.S.

•YUASA-YI, INC.

[Headquarters] Chicago 13[Branch] Cincinnati 14 /South Carolina 15 /New England 16

Philippines•YUASA TRADING (PHILIPPINES) INC. 9

Mexico[Headquarters] Manila

YUASA TRADING (THAILAND) CO.,LTD.
[Headquarters] Bangkok 4[Branch] Sriracha 5•YUASA SHOJI MEXICO. S.A. DE C.V. 17•Kokko Subic Representative Office[Headquarters] Leon

Vietnam•YUASA TRADING VIETNAM CO., LTD.
10

[Headquarters] Bangkok

1•YUASA TRADING INDIA PRIVATE LIMITED 12[Headquarters] Jakarta [Branch] Cikarang

Thailand▪TAKACHIHO CORP.
Yokohama Landmark Tower 9F, 2-2-1, Minatomirai,
Nishi-ku, Yokohama-shi, Kanagawa 220-8109
TEL: +81-45-224-6070••NICHI-MA SEIKO REMANUFACTURING (M) SDN. BHD.
•PT. YUASA SHOJI INDONESIA 8[Headquarters] Taipei[Liaison Office] Taichung 3

•

India

YUASA MECHATRONICS (M) SDN. BHD. 7

CO.,LTD.
•YUASA TRADING (TAIWAN)
2▪MARUKEN SERVICE CO.,LTD.
7-14, Taiheitori, Nakagawa-ku, Nagoya-shi, Aichi
454-0838
TEL: +81-52-354-3151▪TOYO SANGYO CO., LTD.
717-12, Wakamatsu-cho, Wakaba-ku, Chiba-shi,
Chiba 264-0021
TEL: +81-43-422-4100

sites

Bring products and solutions developed in Japan to overseas markets and provide new value.

▪SANEI CO., LTD.
Miyake Bldg. 4F 402, 549-2, Shinano-cho,
Totsuka-ku, Yokohama-shi, Kanagawa 244-0801
TEL: +81-45-828-3601▪YUASA LUMBER CO., LTD.
OP Bldg. 3F,1-8, Kanda-Nishiki-cho, Chiyoda-ku, Tokyo
101-0054
TEL: +81-3-6369-1391

companies(as of April 1, 2021)⃝Kyushu Branch Office
5-5-1, Sumiyoshi, Hakata-ku, Fukuoka-shi, Fukuoka
812-8537

TaiwanGroup Companies in Japancountries[Headquarters] Ho Chi Minh City
[Branch] Hanoi 11

2

3

4

5

6

8

9

10

11

14

15

16

17

▪YUASA BUSINESS SUPPORT CO., LTD.
7 Kanda-Mitoshirocho, Chiyoda-ku, Tokyo 101-0053
TEL: +81-3-6369-1688▪connectome.design inc. Equity method affiliate
Haneda Innovation City Zone K 110, 1-1-4,
Hanedakuko, Ota-ku, Tokyo 144-0041

7

Affiliate company▪DONKEY Corporation
Sagamihara Industrial Creation Center SIC-1 1103,
5-4-21 Nishihashimoto, Midori-ku, Sagamihara-shi,
Kanagawa 252-0131
TEL: +81-42-703-0235

12

13

Integrated Report 2021

59

“SUMIYA Ukeainashi”―Service With Good Products and Well-Thought-Out Advertising―Company Profile(as of March 31, 2021)

Share Information (as of March 31, 2021)

SUMIYA (VI) Shichizaemon (1758-1836),

the sixth owner of the SUMIYA and brilliant salesman,
inscribed “SUMIYA Ukeainashi” (meaning quality not guaranteed) on*

Company name
YUASA TRADING CO., LTD.

Total number of authorized shares
40,000,000 shares

Stock exchange listing
his razor that had excellent cutting capabilities.
First Section of the Tokyo Stock Exchange

He distributed this as sample to barber shops in towns along
the TokaidoRoad. code
Security

Headquarters
7, Kanda-Mitoshirocho, Chiyoda-ku, Tokyo
Users were8074
surprised by the cutting ability and wondered

Established
June 25, 1919
Share capital¥20,644 million

Other corporations
19.52%

Foreign corporations, etc.
27.72%

Major shareholders (top 10)

Ideals Passed Down the Generations

Shareholder name
Custody Bank of Japan, Ltd.

Spirit of Service With Good Products

The Master Trust Bank of Japan, Ltd.
STATE STREET BANK AND TRUST CLIENT OMNIBUS
ACCOUNT OM02 505002
Yuasa Tankyo Shareholding Association
BBH FOR FIDELITY PURITAN TR: FIDELITY SR
INTRINSIC OPPORTUNITIES FUND
West Yuasa Yamazumi Shareholding Association

All communication tools

Sumitomo Mitsui Banking Corporation

Tools postings

East Yuasa Yamazumi Shareholding Association
YUASA TRADING Employee Shareholding Association

Please see the website below for communication tools.

The “YUASA TRADING Integrated Report 2021” is an integrated report ofFinancial service
providers
0.64%* The number of shares constituting one unit is 100 shares.

[Banking] Sumitomo Mitsui Banking Corporation[Life insurance] SUMITOMO LIFE INSURANCE COMPANY[General insurance] Mitsui Sumitomo Insurance Company, Limited[Securities] Nomura Securities Co.,Ltd.

Number of employees
2,487 (consolidated)
1,079 (non-consolidated)

Individuals/other23.77%

Number of shareholders
7,676

Main
institutions* Company name of
YUASAfinancial
TRADING during
the Edo era

Financial institutions
24.59%

Shares held in own name
3.76%

Total number of issued shares
23,155,882 shares(including treasury share of 868,978 shares)

how amazing the guaranteed razors would be if
Fiscal year
the SUMIYA’s not guaranteed razors were this good.
April 1 - March 31 of the following year
The razors gained a reputation and the name of(fiscal year ends in March)
the SUMIYA spread across Japan.

FoundedMarch 1666

Shareholder ratio

DAIKIN INDUSTRIES, LTD.

the financial information and non-financial information of the Company.

Number of shares Ratio of shareholding(thousand shares)
(%)

2,341
1,651

10.50
7.41

911

4.08

822

3.68

675

3.02

632
594
587
483
452

2.83
2.66
2.63
2.16
2.02

1. The number of shares shown in the above list are rounded
down to the nearest thousand shares.
2. The ratio of shareholding is calculated by deducting treasury
stock and rounded down to the second decimal place.
3. The Company holds 868,000 shares as treasury share,
which is not included in the above table. Further, theCompany shares (196,000 shares) held by the Board
Incentive Plan is not included in treasury shares.
4. Of the trust bank holding listed on the left, the number ofshares related to trust operations of trust banks is as follows.
Custody Bank of Japan, Ltd.
2,341,000 shares
The Master Trust Bank of Japan, Ltd.
1,651,000 shares

We also display information from multiple angles in reports and on the website
as depicted below in order for stakeholders to understand the Company.

Trends of stock price and volume(thousand shares)

Corporate site https://www.yuasa.co.jp/
Company image and new information are also posted on
the comprehensive tools (web).

8,000

Share price

(yen)

5,000

A
B

6,000

4,000

4,000

3,000

2,000

2,000

C

YUASA TRADING Integrated Report 2021
Nonfinancial
information

VolumeCompany guide

TOP

C

Company Information

Corporate Profile

Corporate Governance ReportTOP

A

Investor Relations

IR Library

Environment dataTOP

B CSR/Environmental Activities

Environmental ReportTOP

A

Investor Relations

IR Library0

Apr. 2012

Apr. 2014

Apr. 2016

Apr. 2018

Apr. 2020

1,000

Sept. 2021

YUASA REPORT (business report)
Financialinformation

Summary of Consolidated Financial Results
Fact Book

Editing Policy••

Support the activities of two young female pro golfers
From 2017, the Company has supported the activities of two professional golfers,
Minami Hiruta and Hikari Tanabe, who play on the LPGA (Japan Ladies
Professional Golfers’ Association) for the purpose of sponsoring sports through the
C ON Tdevelopment
ENTS
and support of young athletes who will be the stars of the future.
Both athletes place emphasis on practice, maintain an ongoing stance, and exhibit

Chapter
1 on new challenges. This mindset
Top Message
a play style that is filled 2with a desire
to take
Driving We
ForcesConnecting
Us totheir
the Futurereflects the corporate culture of Two
the Company.
will continue
to support

activities as they seek to achieveDriving
furtherForcegrowth.
1

Promotion of Sustainability Management
Driving Force 2

Promotion of DX

60

Integrated Report 2021

Chapter 2

Strategy Connecting Us to the Future

Minami Hiruta

6
10

Hikari Tanabe

12

Value Creation Process, Financial Strategy,

Basic philosophy
The actual results of the fiscal year ended March 31, 2021 (April
1, 2020 to March 31, 2021) is the main target of this report.
A portion of results before or after this period are also included.
Scope of items reported
In principle, the results of YUASA TRADING and 42 groupcompanies (34 consolidated subsidiaries) as of March 31,
2021 are reported.

•••

Regarding notes to consolidated financial statements
This integrated report has not included the notes toconsolidated financial statements. Please see “Securities
Report” available on the Investor Relations - IR Library on thecorporate website for these notes.
Precautions on forward-looking statements
In the statements of this integrated report, statements other thanhistorical facts are forward-looking statements that reflect
YUASA TRADING’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.
Date of publishing
November 2021

Current YUASA TRADING Group, Growth Strategy,
Segment Business Overview
Integrated Report 2021

61