The automotive industry is currently on the cusp of a major period of transformation with the introduction of CASE (Connected, Autonomous, Shared, and Electric) technologies. Social initiatives for tackling the Sustainable Development Goals (SDGs) are also gaining momentum and we anticipate that the role of energy devices in reducing impacts on the global environment will become increasingly important.
In this business environment, demand for lithium-ion batteries for automotive and industrial applications is expected to grow considerably mainly in developed countries. We also anticipate globally stable demand for GS Yuasa's mainstay lead-acid batteries and we expect to see increased opportunities through which we can play a role in contributing to a sustainable society.
In leveraging these business opportunities, during our Fifth Mid-Term Management Plan we will bolster our earnings capacity in the lead-acid batteries business's major markets and implement measures for expanding sales in key regions and at key bases. Furthermore, in the lithium-ion batteries business we will execute policies that play to our Company's strengths in an effort to maintain our earnings power, and make preparations for further growth during and after the Sixth Mid-Term Management Plan with upfront, strategic capital investments and R&D spending.
We will implement the following policy for our Fifth Mid-Term Management Plan in order to achieve the long-term goals that we have set based on our long-term outlook for the business environment.
To become an energy device company that constantly generates new value
To engage in strategic corporate activities that lead to sustainable growth in both the lead-acid batteries business and lithium-ion batteries business through the creation of new value based on the concept of "Mono-Koto Zukuri (product and service creation)."
At GS Yuasa, we believe that putting into practice our corporate philosophy of being "committed to people, society, and the global environment through innovation and growth" will lead to sustainable growth in our business operations.
Over the period covered by our Fifth Mid-Term Management Plan, we aim to establish business processes that incorporate CSR issues into our business strategies, enhance the quality of management from both financial and non-financial perspectives, and realize sustainable growth for our business and society.
*The impact of the novel coronavirus pandemic on the global economy makes it difficult to calculate consolidated results forecast figures for fiscal 2020 (ending March 31, 2021). Management has therefore decided to extend the Fifth Mid-Term Management Plan.
The current plan was originally to cover the three years from fiscal 2019 to fiscal 2021 (ending March 31, 2022). However, management has decided to essentially exclude fiscal 2020 from the plan and apply to it a single-year plan, thereby turning the Fifth Mid-Term Management Plan into a plan covering a four-year period concluding at the end of fiscal 2022 (ending March 31, 2023). The targets originally set for fiscal 2020 and fiscal 2021 have accordingly been pushed back one year each and are now the targets for fiscal 2021 and fiscal 2022, respectively.
|Net sales||¥460.0 billion or more|
|Operating income||¥28.0 billion or more|
|ROE (return on equity)||8% or more|
|Total return ratio||30% or more|
The above benchmarks are based on profit before goodwill amortization (operating income and net income).
During the period of our Fifth Mid-Term Management Plan, we will implement the following three major strategic initiatives: (1) step up efforts to address key CSR issues identified in our business processes; (2) work to strengthen our operational foundations by boosting earnings in the lead-acid batteries business and expanding our overseas business; and (3) lay the groundwork for ramping up the scale and earnings of the lithium-ion batteries business during our Sixth Mid-Term Management Plan and thereafter.
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