I. Long-Term Outlook for Business Environment (around 2030)
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.
II. Overview of Fifth Mid-Term Management Plan
1. Mid-Term Management Policy
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.
2. Major Strategic Initiatives
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.