GS Yuasa : Integrated Report (GS Yuasa Report 2022) (20.3MB)

2022 Report Yuasa GS

GS Yuasa Corporation

GS Yuasa Report 2022

For the fiscal year ended March 31, 2022

Head Office

1, Inobanba-cho, Nishinosho, Kisshoin, Minami-ku, Kyoto

601-8520, Japan

English website: www.gs-yuasa.com/en/

GS Yuasa Report 2022

C o n t e n t s

1	GS Yuasa's Value Creation	2	Message from Management
3	Corporate Philosophy and Significance of Existence	19	Message from the President
5	Contributing to Society Through Energy Devices	25	Message from the Director in Charge of Finance
7	Strengthening of Post-Integration Business	29	About ROIC Management
	Foundations

9 Business Development in Response to the World's Needs

11 Value Creation Process

13 Opportunities and Risks

15 Underpinnings of Value Creation

17 Growth Driven by Solving Social Issues

Medium- to Long-Term

3 Strategies and Performance

31 Long-Term Vision and

Fifth Mid-Term Management Plan

35 GY 2030 Long-Term Greenhouse Gas Target

37 Response to Climate Change (TCFD)

41 Feature:

-Tackling the Challenges of the Growing Renewable Energy Market-

43 Business Portfolio

43 Business Structure

45 Key Financial Indices by Business Segment

47 Automotive Batteries

53 Industrial Batteries and Power Supplies

57 Automotive Lithium-ion Batteries

61 Specialized Batteries and Others

63 Research and Development: -Initiatives for Next-

Generation Batteries-

4 ESG

1. CSR management
2. Materiality (Key CSR Issues) and Identification Process
3. Targets and Results Concerning Material Issues

71 Environment

75 Social

81 Governance

81 Directors and Auditors

83 Messages from Outside Directors

87 Corporate Governance

5 Financial / Corporate Data

101 11-Year Consolidated Financial Highlights

1. Financial Analysis

1. Financial Section

1. Corporate Information
2. External Evaluation

1. Stock and Investor Information
2. Overall Picture of Information Disclosure

This section carries a message from the president focusing on the significance of the GS Yuasa Group's existence based on our corporate philosophy of "Innovation and Growth." It also outlines our growth over the years, our social contribution through business, our present business, and our global development. Regarding the value creation process, after showing the overall picture, a detailed explanation

of the principal constituent factors is given on each page.

This section features the president's thoughts, in consideration of the market environment, on such matters as GS Yuasa's contribution to the solution of social issues and strategy toward long-term growth. It also presents the thoughts of the director in charge of finance on financial conditions and strategy, as well as a ongoing report on the current status of ROIC management.

In this section, a detailed explanation is given of such matters as our medium- to long-term strategy integrating financial and nonfinancial (ESG) factors and our response to climate change. There is also a special feature on our response to the expansion of renewable energy market, which has been attracting much attention recently.

This section outlines our materiality-related results and evaluation in detail, as well as our ESG initiatives and disclosed data.

In addition to long-term financial trend data and

a financial analysis of the fiscal 2021, this section presents basic information for understanding our company.

Scope of this report

Preparation of this report

This report has been issued to familiarize our stakeholders including shareholders and investors with the management policies and business strategies of the GS Yuasa Group. In this report, we explain the path toward value creation pursued by our Group with a focus on our business models and medium- to long-term policies and strategies in the hope that readers can deepen their understanding of these topics.

Period and content covered

Results for fiscal 2021 (April 1, 2021-March 31, 2022)

Companies covered

This report covers the GS Yuasa Group, comprised of GS Yuasa Corporation, the holding company; GS Yuasa International Ltd., the Group's core operating company; and consolidated subsidiaries. Notes are included for data that fall outside the scope of the companies covered.

Date of issue

October 2022

Referenced guidelines, etc.

IFRS Foundation, International Integrated Reporting Framework

Ministry of Economy, Trade and Industry, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue

for Collaborative Value Creation

Global Reporting Initiative (GRI), GRI Sustainability Reporting Standards

About importance and comprehensiveness

This report focuses on particularly important information, presented in such a way as to be easy to read and understand. The website discloses comprehensive information in order to meet public demands.

Target	Wide
/
Target					Website
audience	Narrow		Report
		Outline / Concepts	Contents	Detailed Data

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1	GS Yuasa's Value Creation		GS Yuasa's		Message from		Medium- to				Financial /
1	2	3	4		5
Long-Term Strategies	ESG
		Value Creation	Management	Corporate Data
							and Performance

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.

Management Vision

We are committed to delivering security and comfort to our customers around the globe through advanced technologies developed in the field of stored energy solutions.

Management Policy

1. GS Yuasa
   will become the "First call" company based on our "Customer first" policy.
2. GS Yuasa
   considers "Quality" and "Safety" as most important, and supplies environmentally conscious products all over the world.
3. GS Yuasa
   will comply with all laws and operate using clear and fair management.

Corporate Slogan

Creating the Future of Energy

The commitment instilled in this slogan:

We pledge to pioneer new modes of futuristic energy (storage batteries), engineered to address the constantly changing needs of the times.

Our worth lies in creating value that benefits society through innovation

Our Company comprises two parents-Japan Storage Battery Co., Ltd. and Yuasa Storage Battery Co., Ltd. Since the beginning of the 20th century, we have created products that solve social issues in response to the needs of the times, including backup batteries and power supplies to support a variety of public infrastructure and lead-acid batteries for automobiles and motorcycles. The spirit of invention and challenge of the founders of both companies lives on today in the DNA of the GS Yuasa Group.

The storage batteries we create today play an important role in public 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.

President and

Representative Director

Early automotive lead-acid batteries from the former Japan Storage Battery and the former Yuasa Corporation

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1 GS Yuasa's Value Creation

Contributing to Society Through Energy Devices

In our century-long history we have released original high-quality products one after the other.

1	GS Yuasa's	2	Message from	3	Medium- to	4		5	Financial /
Long-Term Strategies	ESG
Value Creation	Management	Corporate Data
					and Performance

Inheriting this spirit of constantly pursuing innovation and growth, we will contribute even more to the future society.

Industrial Batteries and Power Supplies

Specialized Batteries and Others

Specialized Batteries and Others

Supporting

the progress of space development projects

1895

Genzo Shimadzu manufactured Japan's first lead-acid battery

Specialized Batteries and Others

1919

Manufacture of lead-acid batteries for submarines

Automotive Batteries

Contributing to

the automobile industry's development in Japan

1919

Start of automotive lead-acid batteries production

Contributing to

the development of public infrastructure in Japan

1920s

Expanded demand for auxiliary power for buildings and public infrastructure

Specialized Batteries and Others

Contributing to

the diffusion of radios in ordinary households

1926

Supply of storage batteries for radios

Automotive Batteries

Supplying the new means of mobility

1930

Supply of lead-acid batteries for the first electric bus produced in Japan

Automotive Batteries

Contributing to

the diffusion of motorcycles

1954

Marketing of small and light storage batteries for motorcycles

Automotive Batteries

Assisting the electric vehicles (EVs) boom

1972

Development of a high-performance and long-lifelead-acid batteries

Supporting the evolution of mobile phones

1993

Development of a small prismatic lithium-ion batteries

Industrial Batteries and Power Supplies

Contributing to

the promotion of clean energy

2000s

Successive marketing of renewable energy storage systems

Automotive Lithium-ion Batteries

Ushering in a new EV era

2009

Supply of lithium-ion batteries for the i-MiEV, the world's first mass-produced EV

2016

Installation of lithium-ion batteries on the International Space Station

©JAXA/NASA

Industrial Batteries and Power Supplies

Contributing to the realization of decarbonized society

2021

Delivery of a world-class storage battery facility for wind power generation

Industrial Batteries and Power Supplies

Contributing to an energy-saving society

2017

Installation of lithium-ion batteries

in port automatic guided vehicles (AGVs)

Specialized Batteries and Others

Automotive Batteries

Industrial Batteries and Power Supplies

1910			1950
History of GS (Japan Storage Battery)
1917	1920		1938	1966
Establishment of	Invention of reactive lead	Start of alkaline	Establishment of first overseas
Japan Storage	oxide production method	batteries production	site in Thailand (Siam GS Battery
Battery Co., Ltd.	by Genzo Shimadzu		Co., Ltd.)
History of YUASA (Yuasa Corporation)

1990

1993

Development of prismatic lithium-ion batteries

2000

2004

Automotive Lithium-ion Batteries

2010

History of GS Yuasa Corporation
2007	2016
Establishment of a joint	Transfer of lead-acid batteries
venture company,	business from Panasonic
Lithium Energy Japan Ltd.,	Corporation (currently GS
with Mitsubishi Corporation	Yuasa Energy Co., Ltd.)
and Mitsubishi Motors Corporation

2020

2021

Transfer of infrastructure business from Sanken Electric Co., Ltd. (currently GS Yuasa Infrastructure Systems Co., Ltd.)

1918	1920	1941	1963
Establishment of	Start of automotive	Start of alkaline	Establishment of first overseas site
Yuasa Storage	lead-acid batteries	batteries production	(Yuasa Battery (Thailand) Pub.
Battery Co., Ltd.	production		Co., Ltd.)

1998

Marketing of ultra-thinlithium-ion polymer secondary batteries

Corporate merger

Establishment of GS Yuasa Corporation

2009	2019	2022
Establishment of a joint	Start of operation of the plant	Start of operation of second
venture company,	for automotive 12V lithium-ion	plant for Blue Energy Co., Ltd.
Blue Energy Co., Ltd.,	batteries in Hungary
with Honda Motor Co., Ltd.

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1	GS Yuasa's Value Creation		GS Yuasa's		Message from		Medium- to				Financial /
1	2	3	4		5
Long-Term Strategies	ESG
		Value Creation	Management	Corporate Data
							and Performance

Strengthening of Post-Integration Business Foundations

Since the corporate merger, we have strengthened our business foundations while conducting planned capital investment and coordinating and cooperating with other companies.

Going forward, we will continue to grow as an energy device company.

Specialized Batteries
and Others	Automotive
Automotive	Batteries (Japan)
Lithium-ion Batteries 3.9%	18.9%
11.0%

Trends in net sales	2007	2013
Trends in operating profit ratio
Net sales of the former Japan Storage	Establishment of a joint venture company,	Siam GS Battery Co., Ltd., a joint
Battery Co., Ltd.	Lithium Energy Japan Ltd., with Mitsubishi	venture in Thailand, turned into
Net sales of the former Yuasa Corporation
Corporation and Mitsubishi Motors	a consolidated subsidiary
2004	Corporation

Specialized Batteries
Automotive and Others	Automotive
10.5%	2.7%	Batteries (Japan)
13.9%
Lithium-ion Batteries

2021

Transfer of infrastructure business from Sanken Electric Co., Ltd. (now GS Yuasa Infrastructure Systems Co., Ltd.)

FY2021

Net sales

Industrial ¥432.1 Batteries and

Power Supplies

23.0% billion

Automotive

Net sales

¥520.0billion

Corporate merger
Establishment of GS Yuasa Corporation	Specialized Batteries
		and Others	Automotive
2009	Automotive	5.7%
Batteries (Japan)
Lithium-ion Batteries
20.6%
Establishment of a joint	7.3%
venture company, Blue

Industrial

Batteries and

Power Supplies

20.5%

FY2015

Net sales

¥365.6

billion

Automotive

Batteries (Overseas)

52.4%

Batteries (Overseas)

43.2%

Specialized Batteries			FY2011
	and Others	Energy Co., Ltd., with	Industrial	Net sales
	11.4%
	Honda Motor Co., Ltd.	Batteries and	¥285.4
Lighting	Power Supplies
		24.0%
4.0%
FY2005	Automotive	billion
	Net sales
Industrial	Batteries (Japan)
¥235.1	29.5%
Batteries and		Automotive
Power Supplies		Batteries (Overseas)
23.4%	billion			42.4%

Net sales	Automotive
¥234.3billion	31.7%
	Batteries (Overseas)

Operating profit ratio

0.4%

2014

Establishment of

GS Yuasa Asia Technical

Center Ltd. in Thailand

2016	2019
Start of operation of plant
Transfer of lead-acid	for automotive 12V lithium-ion
batteries business from	batteries in Hungary
Panasonic Corporation
(now GS Yuasa Energy Co., Ltd.)

2022

Ínci GS Yuasa Akü Sanayi ve Ticaret Anonim Şirketi, a joint venture in Turkey, turned into a consolidated subsidiary

Operating profit ratio

(before amortization of goodwill)

5.6%

																					(FY)
2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
																				Forecast
				First Mid-Term Management Plan		Second Mid-Term Management Plan	Third Mid-Term Management Plan	Fourth Mid-Term Management Plan	Fifth		Mid-Term
						Management Plan
					(FY2006 to FY2008)				(FY2010 to FY2012)			(FY2013 to FY2015)			(FY2016 to FY2018)			(FY2019 to FY2022)

Notes: 1. Fiscal 2009 was set aside as a stand-alone fiscal plan based on the impact of a serious recession in the global economy.

1. "Lighting" net sales was included in the "specialized batteries and others" segment from fiscal 2010 to fiscal 2013 and the "industrial batteries and power supplies" segment after fiscal 2014.
2. "Automotive lithium-ion batteries" net sales up to fiscal 2010 were included in the "specialized batteries and others" segment.

1. In fiscal 2019 some consolidated subsidiaries in the "automotive batteries (overseas)" segment were shifted to the "industrial batteries and power supplies" segment.
2. Operating profit ratio refers to operating profit before amortization of goodwill after fiscal 2016.
3. The Fifth Mid-Term Management Plan originally covered the period from fiscal 2019 to fiscal 2021. Due to the impact of the COVID-19 pandemic, however, we have excluded fiscal 2020 as a single-fiscal-year plan and changed the fifth plan to a four-year plan ending in fiscal 2022.

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