GS Yuasa (6674) Investor presentation summary

Strategic direction and vision

• Updated Vision 2035 focuses on two pillars: Mobility and Public Infrastructure, aiming for balanced profit contribution by FY2035.

• Public infrastructure, including ESS, AI data centers, and defense, is positioned as a new growth driver, with targeted investments and business expansion.

• Mobility remains a stable cash generator, with emphasis on lead-acid and lithium-ion batteries for automotive applications.

• Business portfolio is being transformed to prioritize high-demand, high-growth areas leveraging unique technologies.

• Materiality framework now aligns with sustainability management, focusing on value creation and risk reduction.

Review of the 6th Mid-term Management Plan

• Net sales reached ¥609.0 billion and operating income ¥61.0 billion, both exceeding revised targets.

• Profitability improved through price revisions, restructuring, and capturing demand in core areas.

• Operating cash flow doubled compared to the previous plan, reaching ¥150.0 billion.

• Strategic withdrawal from unprofitable regions and focus on high-value markets enhanced overall performance.

• Shareholder returns balanced with growth investments, maintaining stable and predictable dividends.

Market environment and opportunities

• BEV market growth has slowed, prompting a shift in strategy for each OEM.

• Aftermarket for lead-acid batteries is expanding due to longer vehicle holding periods.

• New markets are emerging for high-reliability power supplies, ESS, and defense, driven by technological evolution and security needs.

• Domestic production and supply chain resilience are increasingly prioritized.