GS Yuasa Corporation GS Yuasa Report 2022 For the fiscal year ended March 31, 2022


Value Creation

Corporate Philosophy

Innovation and Growth

We are committed to people, society and
the global environment through innovation and
growth of our employees and business entities.

Our worth lies in creating
value that benefits society
through innovation

President and
Representative Director
Murao sign

The storage batteries we create today play an important role in public infrastructure infrastructure that supports our daily lives and industry. And as achieving carbon neutrality becomes a crucial social issue on a global scale, our Company’s products, which function to store energy and supply it when needed, are playing an increasingly important role in this regard.
Going forward, we will continue to contribute to the realization of a sustainable society by creating innovative value through energy management that contributes to people, society and the global environment, and by continuing to grow sustainably.

Value Creation Process

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Opportunities and Risks


  • Diffusion of eco-friendly cars

    1 Diffusion of eco-friendly cars

    As environmental regulations advance in countries around the world, HEVs and EVs are becoming increasingly common.
    The Company supplies lithium-ion batteries for HEVs and automotive batteries for vehicles with start-stop systems (ISS: idling stop systems), primarily to Japanese automakers, playing an important role in the shift to eco-friendly vehicles and the electrification of automobiles.

  • Expanding renewable energy

    2 Expanding renewable energy

    Worldwide energy demand has been increasing in recent years, and it is necessary to expand the use of renewable energy.
    The introduction of storage batteries and power supply systems is essential for the effective use of energy from solar and wind power generation, and expectations are high for our products.

  • Increase in demand for social infrastructure

    3 Increase in demand for social infrastructure

    If the supply of electricity were cut off, the activities of modern society would instantly come to a halt. Therefore, batteries and power-source devices for backup power supplies in times of disaster are becoming increasingly important.
    Our Group’s products are safeguarding society’s basic infrastructure from various disasters and contributing to business continuity in office buildings and plants.


  • Raw material restrictions and price rise Raw material restrictions and price rise

    1 Raw material restrictions and price rise

    The global spread of regulations on lead usage in the EU, and the rise in prices and supply shortages of rare metals such as lithium could affect our Group’s production activities.

    • Development and manufacture of 12V lithium-ion batteries
    • Research and development of next-generation batteries without rare metals
    • Shifted raw material prices to sales prices
  • Changes in the market environment Changes in the market environment

    2 Changes in the market environment

    It is necessary for us to implement strategies that accurately grasp changes in the market, such as the rapid rise of eco-friendly vehicles in the automobile industry, the emergence of alternative batteries, the drift of young people away from cars, and the diffusion of car-sharing services.

    • Reinforced research and development on lithium-ion batteries for EVs
  • Supply-chain fluctuations Supply-chain fluctuations

    3 Supply-chain fluctuations

    Products which are our mainstays are easily impacted by the market conditions of raw material and customers. Cobalt that is used in some of our products is also a kind of conflict mineral. Proper supply-chain management and the ensuring of stable supply and demand are essential.

    • Stabilized supply chains through multiple purchasing
    • Responsible procurement promotion
  • Supply-chain fluctuations Supply-chain fluctuations

    4 Retention of human resources

    In Japan, the decline of the working-age population is emerging as a common risk for companies. To strengthen our corporate competitiveness, it is important to provide employees with workplace environments in which our diverse workforce can display their abilities.

    • Reinforced human resource development and recruiting
    • Established work environments that facilitate work by diverse human resources

Underpinnings of Value Creation

  • A stable financial foundation bolstered by the Group’s mainstay lead-acid batteries business

    1 A stable financial foundation bolstered by the Group’s mainstay lead-acid batteries business

    Our wide range of lead-acid batteries for starting automobiles support the Group’s financial foundation. In addition to those for new automobiles, profit is obtained continuously through demand for replacement with vehicle maintenance and inspections as the focus. In addition, stable earnings can also be expected for lead-acid batteries for industrial use and for forklifts, which support public infrastructure.

  • Solid strengths for developing technologies and cultivating markets built on an outstanding track record and customer trust

    2 Solid strengths for developing technologies and cultivating markets built on an outstanding track record and customer trust

    By using the relationships we have developed with Japanese automakers, we have established a global network of business sites. We continue to conduct development and production in demand areas as a partner to our customers.
    Going forward, we will use our site in Turkey, which became a consolidated subsidiary in 2022, to reinforce sales to the Middle and Near East, Europe, northern Africa, and other regions. We will also develop products and markets according to local needs including GS Yuasa Asia Technical Center Ltd. in Thailand.

  • Advanced technological capabilities bolstering the lithium-ion batteries business

    3 Advanced technological capabilities bolstering the lithium-ion batteries business

    As a pioneering manufacturer of automotive lithium-ion batteries that supplied the lithium-ion batteries for the world’s first mass-produced EVs and HEVs, we focus on cutting-edge technology and product development, and our products are used in the models of many Japanese automakers.
    We are maintaining our competitiveness in global markets while making efforts toward a full-scale entry into the BEV market by reinforcing partnerships with Japanese automakers.

  • Strong competitiveness and brand power supported by business partnerships

    4 Strong brand power and competitiveness supported by business partnerships

    The Group’s lead-acid batteries maintain a high market share in both the automobile and motorcycle battery markets. Since every vehicle including electric vehicles contains a lead acid battery, we believe that demand for automobile and motorcycle lead acid batteries will be maintained. We are also maintaining our leading share of the domestic market for backup applications and forklifts.

  • A workforce that upholds and passes down technologies rooted in sound understanding of the Company’s corporate philosophy

    5 A workforce that upholds and passes down technologies rooted in sound understanding of the Company’s corporate philosophy

    We promote integrated management as a Group and implement “Innovation and Growth” imbued with our inventor and challenge spirit on a daily basis. The Group’s manufacturing technologies are upheld and passed down through various activities including "Monozukuri (product creation) expert" education workshops and case presentations of team activities to drive kaizen (improvement).

  • CSR ingrained in the corporate culture

    6 CSR ingrained in the corporate culture

    Workplace meetings on CSR in each workplace have been held every year since fiscal 2012 with the aim of embedding an awareness of CSR and spreading awareness of compliance in our business activities.

Top Message

murao photo

Creating new value
for energy devices and contributing
to realizing a sustainable society

Osamu Murao President and Representative
GS Yuasa Corporation

Our worth and values

Contributing to society
through sustainable business

  In the more than a century since our founding, the GS Yuasa Group has continued to offer society new value through a diverse range of products built around storage batteries. Looking back at that history, we have grown by creating products that solved the social issues of the time.
  These include power supplies for communication equipment that supported the development of wireless communications at the beginning of the 20th century; auxiliary power supplies that played a role in the dawn of industrialization in Japan when power generation facilities were as yet incomplete; and lead-acid batteries that accelerated motorization in the postwar era.
  This spirit is still alive and well in the DNA of the Group. For example, the batteries we have developed have demonstrated reliable performance even in harsh environments such as the deep sea and outer space. I believe that our ability to create one-of-a-kind products other companies cannot imitate has been honed through our continuous challenging of the cutting edge. As a result,the Group’s technologies and products support people’s lives and industry in a variety of fields, including storage batteries for automobiles and motorcycles, emergency power supplies for public infrastructure, and energy storage systems for wind and solar power plants.
  Our business has a strong affinity with sustainability,and I believe that our social mission and responsibility will become even greater as solving the problems of climate change and energy resources becomes an issue for all of humanity. We recognize that the role of storage batteries as energy devices that store energy and supply it when needed will become increasingly important, and we hope to meet those expectations.
  My understanding is that our corporate philosophy of“Innovation and Growth,” established at the time of our 2004 corporate merger, means creating new value that contributes to society, thereby achieving sustainable growth ourselves. For the Group to generate new value and build the second and third pillars of our business, it essential for us to have both advanced technological capabilities and expertise, as well as a flexible approach that keeps us listening to our customers and the market and allows us to continue reforming ourselves. In my discussions, I keep in mind what brings joy to the customer, and the idea that, to create new value, it is important to always approach things from the perspective of the recipient of that value.
  For the Company to contribute to society in the years to come, it is important that we innovate further in those technologies we have developed for storing and using electricity, and that we implement and operate those technologies as part of the public infrastructure. I believe that creating a society in which all people can feel joy will lead to the realization of a sustainable society. For us, this will mean expanding our vision from the development, manufacturing, and sales of energy devices,to energy management that allows society as a whole to make full use of those devices, and beyond that to energy resource recycling.

Uniting to enhance
management quality

  There is something else that is important when talking about“Innovation and Growth.” I believe that as a manufacturing company, it is crucial that we maintain and improve quality in order to gain the trust of our customers and society and grow over the long term. We aim to improve not only the quality of our products, but the quality of our management overall through Total Quality Management (TQM).
  This is why, since my appointment as president in 2015, I have called for management with quality at its core, and have held regular quality management meetings, improvement case study presentations, and key quality problem case study presentations. We have shared the experience and expertise of those on the front lines with the entire company, including overseas, and have emphasized opportunities and approaches for learning from our mistakes.
  For example, when we first started holding our improvement case study presentations, most of the presentations were given by quality-related departments and engineering and manufacturing departments. Now, however, the sales, human resources, and financial departments are also participating, and efforts in pursuit of quality are leading to business process improvements across the entire company.
  In recent years, the unified efforts of the development, production, sales, and administrative departments have begun to bear fruit, and the incidence of complaints in the market and the in-process defect loss rate have both been steadily decreasing. Further, not only has product quality improved, but I sense that management quality overall—including business processes—has been enhanced, something that I have been aiming for.

Toward medium- to long-term growth

Completing the Fifth Mid-Term Management Plan

  In fiscal 2022, the final year of the current Mid-Term Management Plan, we forecast consolidated net sales of 520.0 billion yen, a record high 29.0 billion yen in operating profit before amortization of goodwill, and profit attributable to owners of parent of 12.0 billion yen. In the automotive lithium-ion batteries business, a growth segment, we will expand production capacity to meet demand for lithium-ion batteries for hybrid electric vehicles (HEVs) by starting operation of Blue Energy Co., Ltd. second plant. In the industrial battery and power supply business, we will further enhance synergies with GS Yuasa Infrastructure Systems Co., Ltd., a new addition to the Group in 2021.
  In the automotive batteries business, we will utilize our base in Turkey, which became a consolidated subsidiary in May 2022, to expand business by strengthening our production and sales structures for Europe, the Middle and Near East, and North Africa.
  By steadily advancing these measures, we will achieve the performance targets set out in the Fifth Mid-Term Management Plan.

Carbon neutrality as
an inflection point for our times

  Over the past few years, the movement toward carbon neutrality has accelerated on a global scale. Particularly in Europe, China, and Japan, there has been a marked movement toward the electrification of automobiles and the introduction of renewable energy. This trend is, without a doubt, an opportunity for our business, with its strong affinity with sustainability, and a tailwind that will drive growth. At the same time, we realize that there are risks, including increased costs for reducing environmental impact through the deployment of energy-saving equipment, as well as a gradual decline in demand for automotive lead-acid starter batteries, which to date have been our mainstay business.
  In this context, I see this trend toward carbon neutrality as an inflection point for our times. Our policy is thus to enhance the earning power of each of our businesses while carefully assessing both opportunities and risks in this rapidly changing market environment. As we work toward medium- to long-term growth, we will be pursuing growth strategies in the following three major fields.

1.Addressing the electrification of vehicles

  Our first growth strategy will be to address the electrification of automobiles. We will focus on expanding sales of lithium-ion batteries for HEVs and research and development in electric vehicle (EV) batteries and next-generation batteries in anticipation of the growth of the market for EVs. Based on a variety of surveys, we predict that HEVs will be the mainstream of electrification through the mid-2030s, and that EVs will come into the mainstream after that, though there will be differences in terms of timing and region. To date, we have worked to boost our automotive lithium-ion batteries business under our policy of concentrating resources on HEVs during the term of our Fifth Mid-Term Management Plan. As a result, we have achieved steady growth, including a return to profitability in fiscal 2021. Going forward, we expect to expand our annual production capacity of lithium-ion batteries for HEVs to 70 million cells in the latter half of the 2020s to steadily meet demand from new car manufacturers.
  Additionally, we will allocate resources to EV batteries, a sector that is expected to expand in anticipation of future market changes. In April 2022, an organization specializing in the development of lithium-ion batteries for EVs was set up within the Lithium-ion Batteries Business Unit to accelerate R&D in this area. We are accelerating R&D in high-performance, high-safety, and high-quality EV batteries for delivery in the next few years, making the most of the technologies and platforms we have developed to date and directly incorporating the requirements of new car manufacturers. At the same time, we will also engage in R&D into practical application of next-generation batteries with a view to the future.

2.Increasing share and profitability in the ASEAN region where our strength lies

  Our second growth strategy will be in the overseas lead-acid battery market, where we will focus on expanding sales in the ASEAN region. Although the electrification of automobiles is advancing, gasoline-powered vehicles are expected to remain the norm in emerging countries for the foreseeable future, particularly in the ASEAN region, as motorization progresses with economic growth and the number of vehicles owned increases. For the time being, we will continue our strategy in emerging markets, focusing primarily on lead-acid starter batteries for automobiles and motorcycles.
  In emerging markets, the issue is how well we can maintain and improve our advantage. The Group has been expanding its business in Asia since the 1960s in alignment with the overseas expansion of Japanese automakers and has increased its market share. Today, in addition to 15 manufacturing and sales sites in the ASEAN region, we have also established a technical center in Thailand for technical development so that we can quickly identify regional needs and reflect them in our products. Leveraging the relationships we have cultivated with Japanese automakers, we will further strengthen our sales force and bring to market high-value-added products such as batteries for vehicles with start-and-stop systems (ISS: idling stop systems) that allow us to differentiate, leading to improved profitability. Taking advantage our global information network, one of our strengths, we will direct our resources to areas of positive investment efficiency.

3.Offering products and services that contribute to achieving carbon neutrality

  Our third growth strategy is to meet the growing demand for storage batteries, which are essential to achieving carbon neutrality. Following the Japanese government’s “Declaration of Carbon Neutrality by 2050,” renewable energy is being introduced throughout Japan, and demand for storage batteries, which are indispensable for adjusting supply and demand on the power grid, is expected to grow in line with this trend. Companies are also beginning to install storage batteries as a means of managing energy at their business sites to achieve carbon neutrality. The main products of the industrial battery and power supply business are backup batteries and power supply units. However, to further expand our business in the areas of adjusting supply and demand on the power grid and energy management at business sites, we will utilize the lithium-ion battery technology and expertise acquired through the development and production of automotive batteries to develop even more competitive products in this field going forward.
  In addition, since storage batteries for backup use and for adjusting supply and demand on power grids are part of the power infrastructure, appropriate selection and installation as well as an emphasis on maintenance operations are important in ensuring stable operation and optimal control. We will thus be strengthening our business in creating services that will allow products to be used sustainably. We aim to establish a business model that generates continuous revenue by suggesting preventive maintenance and appropriate upgrades using AI, IoT, and other digital technologies once products are delivered.

Strengthen the management platform

Encourage ESG initiatives and use of digital technologies
E: Environment

  To achieve sustainable corporate growth, it is important that we strengthen our business foundations through non-financial initiatives as well as, at the same time, through growth strategies in each business.
  The Company recognizes that reducing the environmental burden of our business activities is an important social responsibility. In May 2021, we announced the “GY 2030 Long-Term Greenhouse Gas Target.” As one of the initiatives aimed at achieving that target, in November 2021 we switched all of the electricity used at GS Yuasa’s Kyoto Plant to substantially renewable energy sources. Further, in fiscal 2022 we introduced an Internal Carbon Pricing System (ICP System). By converting CO2 emissions associated with the deployment of equipment into cost equivalents and adding them to our investment decisions, we will promote low-carbon investments, including the introduction of energy-saving equipment and renewable energy, while also identifying the impact of CO2 reductions. The Company is committed to achieving carbon neutrality through our efforts to reduce CO2 emissions in our operations.


  We will also focus our efforts on strengthening human capital. We seek “autonomous-minded human resources”, people who can think for themselves, act on their own initiative, and deliver results. We believe that new value is created only when employees at each site practice“Innovation and Growth,” innovating business processes unbound by conventional methods and practices, developing new technologies, entering new markets, and so on.
  To advance the development and success of these kinds of human resources, we are working to create a workplace environment and put in place programs that allow for diverse, flexible work styles. In particular, we believe that work style reforms will eventually lead to the creation of varied types of corporate value. We would like to make further progress in creating an environment that encourages flexible work styles, for example remote work utilizing digital technology.
  To keep pace with the rapidly changing business environment, diversity and inclusion in all phases of corporate activity is a top priority. In the area of empowering women, in particular, we will expand opportunities for women to play an active role by simultaneously supporting both “career development” and“work-life balance”, working to increase the percentage of women in management and leadership positions.
  We speak of “work-life balance,” but I would like to continue to promote the development of an environment in which “life” takes priority, and we can refer to it as“life-work balance.”


  While the results of assessments show that, in general, we are able to ensure the effectiveness of our Board of Directors—a key governance theme—we continue to improve on issues singled out each year, primarily based on recommendations from our outside directors. At executive study sessions for those at the corporate officer, officer level and above, discussions are held about how “Innovation and Growth” can contribute to the environment in which the Company currently operates. We believe that another important issue in strengthening our ESG initiatives going forward is to consider a compensation system that is linked to ESG indicators.
  In fiscal 2021, we launched a company-wide Business Continuity Plan (BCP) project in response the recent increase in supply chain disruptions and natural disasters. We are moving ahead to diversify risk across multiple locations, taking into account both production efficiency issues and the impact on our customers.

Use of digital technology that contributes to business transformation and value creation

  Another area of emphasis as we strengthen our business foundation is the advancement of digital transformation (DX). We are promoting the use of AI, IoT, and other digital technologies in various operations, including the introduction of a battery demand forecasting system, an energy management project to optimize energy usage in factories, and a project to improve productivity through the digital transformation of the R&D department. In addition, employees are provided DX training to improve their basic knowledge, and ideas are solicited from those on the front lines as part of the effort to achieve DX.
  That said, even the use of cutting-edge digital technology is meaningless unless it leads to business model innovation and new value creation. We intend to continue making proactive use of digital technology to bring about change, both internally and externally, while keeping a close eye on these issues.

To our stakeholders

Striving to practice “ambidextrous management” with an eye to the future

  I have recently come to realize, once again, the importance and the difficulty of “ambidextrous management.” For a company to continue creating new value for society, it is important that it “digs deep” to refine the competitiveness of its existing businesses, while at the same time engaging in an ongoing “search” so that it can expand into new business opportunities. In our case, new business opportunities include, for example, batteries to succeed lithium-ion technology and energy management, as well as resource recycling.
  Funding needed to explore these new areas must be generated by existing businesses. That said, existing businesses must also “dig deep.” It is important that, with the understanding of our stakeholders, we strike a balance between how much of our management resources—including earnings from existing businesses—we invest in new areas, and how much is allocated to strengthening and expanding existing businesses.
  There are no fixed rules in this process, and not all seeds we sow will bear fruit, no matter how certain we are. While there have been many innovations over the course of the GS Yuasa Group’s 100-plus-year history, there have, naturally, also been failures. It is because our predecessors continued to take on new business challenges, nourished by their failures, that the Group is what it is today. We will continue to take on the challenge of new business, feeding off the failures we have experienced in order to succeed.
  I believe it is my mission as the top management leader to clearly articulate what the Company values and what we hope to accomplish, and by doing so, to strike a chord with our stakeholders. Going forward, we will continue to listen sincerely to and engage in an ongoing dialogue with our stakeholders as we take on the challenge of creating value toward the realization of a prosperous society. I ask for your continued understanding and support in that effort.

August 2022

Osamu Murao President and
Representative Director,
GS Yuasa Corporation

Message from the Director
in Charge of Finance

Matsushima photo

Striving for optimal allocation of capital from
a medium- to long-term perspective while aiming
to increase corporate value

Hiroaki Matsushima Director and
Chief Financial Officer,
GS Yuasa Corporation

The CFO’s Mission

Emphasizing compassion
along with a calm perspective

  I assumed the role of Chief Financial Officer (CFO) in June 2022. I joined Yuasa Corporation prior to the corporate merger, and was first assigned to the Information Systems Division, where I developed a view of the Company as a whole through its systems. For about the next 20 years, I was involved in practical work, primarily in accounting, finance, taxes, and other areas. When I was seconded to one of our Group companies, I was also involved in our cutting-edge storage battery business, including a joint project with a major trading company. I hope to make use of those varied experiences in my work as CFO going forward.
  The basic mission of the CFO is to support the sustainable growth of the company from a finance viewpoint. Maintaining a long-term perspective, I hope to steadily enact capital policies and financial strategies that help enhance our corporate value and lead to our contributing to society through “Innovation and Growth.”
  As the chief financial officer working to optimize the allocation of management resources, one must maintain a dispassionate view in identifying risks and opportunities, and be able to clearly indicate when no means no. That said, I also emphasize compassion. At our kickoff meetings at the start of each term, I always tell my employees that I want them to have compassion.This means more than simply being kind—it means using one’s imagination to put oneself in the other person’s shoes. The Financial Division is not involved in directly generating profits, or in making products. This is why it is even more important that we understand the growth strategies of each business unit, and that we listen to feedback from those working on the front lines of development, production, and sales. We need to implement the most appropriate financial policies only once we have imagined what they are struggling with and how they feel. I myself hope to be a CFO who maintains his composure but nevertheless always remembers to have compassion.

Financial results and financial condition

Ensuring completion of a solid foundation and addressing the final fiscal year of the Mid-Term Management Plan

  Although the business environment in fiscal 2021 was made difficult by the ongoing global COVID-19 pandemic, the Group’s consolidated net sales reached a record high of 432.1 billion yen, thanks in part to significant sales growth in the automotive lithium-ion batteries business as well as increased sales of lead-acid batteries in overseas markets. Operating profit was 22.7 billion yen, a decrease due to the significant impact of soaring raw material prices and rising logistics and labor costs, mostly overseas. Given this context, we consider it very significant that our automotive lithium-ion batteries business, which is positioned as a strategic field, has turned profitable and has entered a growth phase.
  In terms of cash flow, operating cash flow decreased from 35.8 billion yen in the previous fiscal year to 12.9 billion yen due to an increase in inventories and trade receivables. Meanwhile, investing cash flow increased by more than 10 billion yen from the previous fiscal year to a negative 30.2 billion yen, mainly due to capital investment to increase production of automotive lithium-ion batteries. As a result, free cash flow in fiscal 2021 was a negative 17.3 billion yen, a significant drop from the previous fiscal year, and the Company used cash and cash equivalents as well as borrowing to pay dividends and other expenses.
  That said, this deterioration in cash flow is temporary, and is due to the significant impact of supply chain disruptions during the COVID-19 pandemic. We hope to return conditions to normal as quickly as possible by increasing profits in each business and by working to monitor and optimize inventories.
  In addition, the Cost Management Department has been working to make costs in Japan and overseas more visible. To promote cost reductions going forward, we have launched a Value Engineering (VE) initiative, and will work to raise awareness in development and on the manufacturing front lines.
  Although the business environment is expected to remain challenging in fiscal 2022, we foresee achieving our sales and profit targets by steadily implementing our growth strategies for each business. We plan for capital investment and R&D expenses of 32.0 billion yen and 13.0 billion yen, respectively, even higher than in fiscal 2021. Interest-bearing debt is expected to increase to around 90.0 billion yen, but we expect to be able to maintain an equity ratio of 42% or higher, an indicator of financial soundness.

Capital efficiency

Further spreading ROIC management

  Bringing a medium- to long-term perspective to improving capital efficiency is one of the CFO’s key missions. To generate returns that exceed the cost of capital, we have introduced return on invested capital (ROIC) as a key performance indicator (KPI), and are working to boost earning power by enhancing asset efficiency in each business unit throughout the Group.
  Partly as a result of repeated executive training programs held to spread the concept of ROIC management, there has been considerable progress in raising awareness of capital efficiency at the senior management level. Meanwhile, we are gradually working to inculcate understanding among mid-level and frontline employees through in-house education and training programs, but it can be difficult for them to constantly be aware of capital costs in the course of their day-to-day work.
  We have thus begun efforts to establish ROIC throughout the organization through collaboration with Total Quality Management (TQM) activities, which have been routinely conducted in each department of the Company for some time now. We will link these TQM improvement efforts with ROIC, allowing employees to see how achieving specific items is tied to an equivalent improvement in ROIC values, and creating a virtuous cycle in which efforts by employees in each department to put these issues into practice lead to improved ROIC.

Investment and Risk Management

Managing risk while maintaining proactive growth investments
Two committees ensure the validity of investment decisions

  Further increasing our ability to earn as a Company will require continued growth investments under the Sixth Mid-Term Management Plan, scheduled to start in fiscal 2023. To ensure the validity of investment decisions, in addition to the existing Capital Investment Committee, in fiscal 2021 we established the Business Assessment Committee, a new internal review body.
  The Capital Investment Committee, comprising primarily executives from the development and manufacturing divisions, meets once a month, as a rule, to examine the appropriateness of capital investment proposals of 100 million yen or more submitted by the business divisions. The committee deliberates and considers each proposed deal in terms of the validity of its objectives, the recoverability of the amount to be invested, and the operational status and investment impact of past capital investments. Recently, investment decisions are also incorporating assessments of environmental factors such as reductions in CO2 emissions.
  The Business Assessment Committee is led by the Corporate Strategic Planning Office and comprises members with diverse expertise and skills from the Legal Affairs and Technology Development divisions and others, in addition to the Financial Division. The Committee also meets monthly to discuss investment deals other than capital investments, including mergers and acquisitions, and also examines the rationality, suitability, and recoverability of other large deals. We also perform solid risk checks from a variety of perspectives, validating issues and problems involved in the compliance and technical aspects of aggressive growth investing.

Introducing an Internal Carbon Pricing Scheme to drive more active low-carbon investments

  In addition to finance, I am also in charge of the CSR Division. Customers and investors also consider non-financial initiatives important from the perspective of increasing corporate value, and I consider it my mission to inform stakeholders about the Company’s activities in this area.
  In particular, we recognize that carbon neutrality, which has become a major global trend, is a tremendous growth opportunity for our business. At the same time, we also recognize that we need to be aware of the risks involved, including the increased costs required in reducing CO2 emissions in our business activities. Since announcing its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in fiscal 2019, the Group has conducted studies on climate change risks for its domestic and overseas sites, with input from experts. In May 2022, the Group made a number of new disclosures, including “Risks and Opportunities in Climate Change.”
  Additionally, under the “GY 2030 Long-Term Greenhouse Gas Target”, announced in May 2021, we have set out a target of reducing greenhouse gas emissions from our Group’s business activities by 30% or more by fiscal 2030 from fiscal 2018 levels. Since achieving this target will require low-carbon investments, including the deployment of energy-saving equipment and renewable energy, an Internal Carbon Pricing Scheme (ICP scheme) was introduced in fiscal 2022. Going forward, we will advance a variety of CO2 reduction methods in each of our businesses with the goal of achieving this target.

Simultaneously promoting investments in human capital and in DX

  We are also emphasizing human capital as the Company’s greatest management resource. It goes without saying that making solid investments in human resources— including hiring and training outstanding personnel and creating a comfortable working environment—and linking those investments to high returns is fundamental to corporate management.
  Looking into the future, however, the declining birthrate and aging population are expected to make it increasingly difficult to secure all types of human resources. We thus recognize the extreme importance of simultaneously securing and training a diverse workforce and streamlining operations using advanced IoT and digital technologies, or what is known as a digital transformation (DX). This is not simply a matter of replacing analog tasks with digital ones. Digital technology needs to be solidly incorporated in each individual’s work in order to achieve efficiency and reforms in an innovative yet grounded manner.

Shareholder returns

Continuing stable shareholder returns by further expanding earnings

  We have positioned the return of profits to shareholders as an important management issue. As a general policy, we determine the level of returns based on comprehensive consideration of consolidated earnings results, internal reserves used for future growth, our financial standing, and other factors, and aim for a total payout ratio of 30% or more. Note that in the interests of our shareholders, the total payout ratio is calculated based on profit before amortization of goodwill.
  Although profit declined in fiscal 2021, from the perspective of providing stable dividends, we instituted a dividend of 50 yen per share, the same amount as in the previous fiscal year. Note that for fiscal 2022, we plan to pay an interim dividend of 15 yen per share and a fiscal year-end dividend of 35 yen per share, for a full-year dividend of 50 yen, assuming we achieve our profit forecast.
  More than 15 years after the corporate merger, our financial situation has improved dramatically and our business has become more profitable. That said, we also recognize the need to further improve our earning ability. Going forward, we will continue striving to expand earnings and maximize corporate value from a medium- to long-term perspective while improving capital efficiency. We ask for the continued understanding and support of all of our stakeholders in this effort.

August 2022

matsushima sign Director and
Chief Financial Officer,
GS Yuasa Corporation

Medium- to Long-Term Strategies
and Performance

Response to Climate Change (TCFD)

The Group recognizes that climate-related issues are one of the important management issues and, in December 2019, we announced its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and are working on climate-related information disclosure based on the TCFD framework. In fiscal 2021, we launched a project to integrate climate-related risks and opportunities into our future business plans. The climate change scenarios used in the analysis are the 1.5°C scenario and the stated policies scenario (equivalent to the 3°C scenario). We devised strategies based on the short-term (fiscal 2025), medium-term (fiscal 2030), and long-term (fiscal 2050) time axes.

Feature ― Tackling the Challenges of
the Growing Renewable Energy Market ―

  • 1Challenge the “three new areas” based on extensive track record and respond to needs
  • 2Leveraging our strengths—networks and footwork
  • 3Developing business in the regular field as our second pillar

Business Portfolio

Automotive Batteries

We will meet the diverse
needs of the market with
passion and speed.

Masahiro Shibutani Representative Director, GS Yuasa Corporation
Representative Director, Business Unit Manager of Automotive Batteries,
GS Yuasa International Ltd.

  Automotive batteries play an important role in supporting driving around the world, and their value is increasing as we move toward a carbon-neutral society. Although a behind-the-scenes presence, automotive lead-acid batteries, in particular, continue to evolve in response to the climate and market characteristics of each region. For example, batteries for vehicles with start-stop systems (ISS: idling stop systems), which lead to improved fuel efficiency, require high durability, weather resistance, and charge-acceptance performance. We are contributing to the spreading popularity of low-environmental-impact ISS vehicles by developing products that meet the demands of automakers. Battery electric vehicles (BEVs) and other electrically powered vehicles are also equipped with lead-acid batteries for use in auxiliary equipment, and they will continue to support automobiles even as electrification advances. These are the fruits of our technological innovations, and are consistent with our corporate philosophy of “Innovation and Growth.”
  We believe that our corporate value, which leads to “Innovation and Growth,” is to bring passion and speed in responding to the diverse needs of the market, and to do so from the perspective of our customers, the automakers. We are also working to build employee motivation, and we believe that increasing engagement and continuing to offer growth opportunities will enhance the Company’s overall corporate value.

Automotive Batteries (Japan)

  • 売上高構成比グラフ
  • 売上高グラフ
  • 営業利益・営業利益率グラフ

Automotive Batteries (Overseas)

  • 売上高構成比グラフ
  • 売上高グラフ
  • 営業利益・営業利益率グラフ

Industrial Batteries
and Power Supplies

An expanded role in solving
global issues such as
disaster prevention and
mitigation and
carbon neutrality

Takashi Taniguchi Director
Business Unit Manager of Industrial Batteries and Power Supplies,
GS Yuasa International Ltd.

  Having long been involved in the industrial batteries and power supplies business, I realize how their importance in society has increased even further. From the time I joined the Company to today, the main role of industrial batteries and power supply devices was to serve as a backup during power outages.
  We believe backup batteries and power supplies must be serviced and maintained so that they can supply electricity at any time, trouble-free, once they are installed. This is because, in the event of a power outage, it is extremely important to ensure the health of the system by supplying electricity until the power network is restored. For example, during the Boso Peninsula typhoon of 2019, we rushed to the damaged city of Minami-Boso in Chiba Prefecture with storage batteries to operate their disaster radio system, which local residents relied on during emergencies. Natural disasters have recently increased in frequency and severity, perhaps due to the effects of global warming, and it is in times like these that we need electricity, something I feel even more strongly now than before.
  Storage batteries have also gained worldwide attention in recent years as a key device essential to achieving a carbon-neutral society by using renewable energy to stabilize the electric power network itself and by storing surplus power. As such, we recognize that the value we provide has grown to a level where we can play a role in solving issues on a global scale.

Industrial Batteries and
Power Supplies

  • 売上高構成比グラフ
  • 売上高グラフ
  • 営業利益・営業利益率グラフ

Automotive Lithium-ion

Leveraging knowledge
gained through pioneering
product development to
deliver corporate value

Kenji Kohno Executive Officer
Business Unit Manager of Lithium-ion Batteries,
GS Yuasa International Ltd.

  We have worked on lithium-ion batteries for HEVs and PHEVs, and supplied the world’s first lithium-ion batteries for HEVs in mass-produced models. We are proud to have thus contributed significantly to the spread of HEVs, which offer excellent fuel efficiency and are effective in reducing CO2 emissions. I myself am proud to have been at the forefront of lithium-ion batteries for HEVs over the past 10 years or so, from their development to the launch of Blue Energy Co., Ltd. and subsequently getting it on track.
  As we continue to develop products with automakers, we have learned and grown a great deal, including mass production technology and the productization process. I believe that an evolution and deepening of our knowledge is important, both in our business processes and in the process of productization. The accumulated experience of digging deep into specific themes and creating products generates a virtuous cycle that enhances the strength of our employees and the organization as a whole.
  Storage batteries will become increasingly essential to society going forward, and our responsibility in this business is significant. We will work to leverage our experience and expertise to make further contributions to society, in the belief that the role expected of us is tied directly to our corporate value.

Automotive Lithium-ion Batteries

  • 売上高構成比グラフ
  • 売上高グラフ
  • 営業利益・営業利益率グラフ

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GS Yuasa Report 2022

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