Yuasa Co. Ltd. · TSE:8074
Yuasa — Yuasa Trading — FY2023 Earnings Presentation
36 slides from Yuasa's earnings presentation, May 17, 2023
Slide 1: Financial results briefing for the Fiscal Year Ending March 2023
（Security identifier code：8074） Service Integrated Shosha Group Financial results briefing for the Fiscal Year Ending March 202３ May 17, 2023 Hiroyuki Tamura, President and CEO All Rights Reserved. Copyright YUASA TRADING CO.,LTD. 2023
Slide 2: Table of Contents
Table of Contents Service Integrated Shosha Group Summary of the Financial Results １ for the Fiscal Year Ended March 31, 2023 Review of Med-Term Management Plan ２ “Growing Together 2023” New Med-Term Management Plan 3 “Growing Together 2026” Consolidated earnings forecasts 4 for the Fiscal Year Ende
Slide 3: Summary of the Financial Results for the Fiscal Year Ended March 31, 2023
Service Integrated Shosha Group Service Integrated Shosha Group Summary of the Financial Results 1 for the Fiscal Year Ended March 31, 2023 All Rights Reserved. Copyright YUASA TRADING CO.,LTD. 2023 2
Slide 4: Consolidated Income Statement
Consolidated Income Statement Service Integrated Shosha Group In billions of yen (rounded down) Full-year forecast Comparison FY2021/3 FY2022/3 Change (Disclosed figures) with plan Net sales 462.7 504.8 +9.1% 490.0 +3.0% Gross profit 48.2 52.4 +8.7% (percentage) (10.42％) （10.39％） Selling, general an
Slide 5: Sales and Ordinary income by Segment
Sales and Ordinary income by Segment Service Integrated Shosha Group Sales Ordinary income Main factors of change ◼ Industrial Equipment & Tools 18.1 In billions of yen Plant utilization rates remained firm and sales 504.8 (rounded down) (▲34.6％) grew mainly for control-related equipment. 0.1 (▲20.7
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet Service Integrated Shosha Group Total assets Total liabilities Unit: billion yen (smaller amounts are 271.2 175.8 rounded down) Total assets Total liabilities 259.4 166.8 ≪Main factors of change≫ ■Current assets +8.4 Trade receivables +7.1 Current Inventories +2.3 Current
Slide 7: Consolidated cash flow
Consolidated cash flow Service Integrated Shosha Group In billions of yen (rounded down) FY03/21 FY03/22 Item Main factors Full-year results Full-year results Profit before income taxes:＋2.5 Income from increase Net cash provided by (△used in) in trade receivables：△1.0 operating activities 10.2 8.3
Slide 8: Review of Med-Term Management Plan “Growing Together 2023”
Service Integrated Shosha Group Service Integrated Shosha Group Review of Med-Term Management Plan 2 “Growing Together 2023” All Rights Reserved. Copyright YUASA TRADING CO.,LTD. 2023 7
Slide 9: Positioning of YUASA VISION 360 and Growing Together 2026
Positioning of YUASA VISION 360 and Growing Together 2026 Service Integrated Shosha Group Aiming to enhance corporate value from the dual aspects of economic value and social/environmental value Maximize corporate value from the dual aspects of economic (financial) value and social/environmental (no
Slide 10: Review of Financial Targets
Review of Financial Targets Service Integrated Shosha Group ◼ Net sales and ordinary profit both achieved revised targets for the final year (FY03/2023) ◼ Investment in growth strategy and core business was JPY5.6bn against investment budget of JPY13.0bn due to impact of COVID-19 ◼ Achieved sharehol
Slide 11: Basic Policy Implementation Status
Basic Policy Implementation Status Service Integrated Shosha Group ◼ Sales composition of growth strategy areas grew to approximately 25% owing to expanded Eco & Energy Solutions and other businesses ◼ Promoted proposals of “TSUNAGU” solutions to social issues ◼ Promoted building of sustainable mana
Slide 12: Summary of Growth Strategy
Summary of Growth Strategy Service Integrated Shosha Group ◼ Growth strategy areas in total grew by approximately 20% compared to FY20/3, propelling Group-wide results as a growth driver (All monetary amounts are in billions of yen) FY03/20 FY03/23 FY03/23 Growth Growth Strategy Actual Target Actual
Slide 13: New Med-Term Management Plan “Growing Together 2026”
Service Integrated Shosha Group Service Integrated Shosha Group New Med-Term Management Plan 3 “Growing Together 2026” All Rights Reserved. Copyright YUASA TRADING CO.,LTD. 2023 12
Slide 14: Numeric Targets for Growing Together 2026
Numeric Targets for Growing Together 2026 Service Integrated Shosha Group ◼ In the 3rd stage of YUASA VISION 360, we will aim to achieve JPY 600.0 billion in consolidated net sales and JPY 20.0 billion in consolidated ordinary profit. ◼ We will promote the proposal business to enhance corporate valu
Slide 15: Recognition of Current Situation
Recognition of Current Situation Service Integrated Shosha Group Changes in Market Timeline Product Out Market In Market Out Products are developed, produced, and Manufacturers adopt buyers’ standpoint and Consumers and society communicate sold using ideas from the supplier side, develop and supply
Slide 16: Basic Policy and Outline of Growing Together 2026
Basic Policy and Outline of Growing Together 2026 Service Integrated Shosha Group Basic policy In areas of manufacturing, housing environment, infrastructure, and construction, we work to solve social issues through TSUNAGU (Connect) innovation together with our business partners, creating new marke
Slide 17: Business Transformation (Overview)
Business Transformation (Overview) Service Integrated Shosha Group We will expand our existing businesses and growth strategy in Japan and overseas by transforming our business model and extending our existing business networks. Conceptual image of business transformation Enhancement of corporate va
Slide 18: Business Transformation (Shift to More Profitable Business Model)
Business Transformation (Shift to More Profitable Business Model) Service Integrated Shosha Group We will strive to solve social issues with “TSUNAGU” innovation together with our business partners and to form more profitable businesses. Create new value by “connecting Enhance (TSUNAGU)” various thi
Slide 19: Examples of “TSUNAGU” Innovation
“TSUNAGU” Reference Examples of “TSUNAGU” Innovation innovation Service Integrated Shosha Group We will promote “TSUNAGU” innovation that utilizes AI, data, and technology. Manufacturing Housing environment AI-based contaminant inspection Supply chain risk management app Vehicle to Home Gatepost Apa
Slide 20: Business Transformation (Develop into Growth Strategy)
Business Transformation (Develop into Growth Strategy） Service Integrated Shosha Group *Figures in [ ] are net sales after the application We will increase the ratio of growth strategy areas in net sales to 48% in FY03/26. of the revenue recognition standard. Promote Growth Strategy Growing Together
Slide 21: Business Transformation (Extend Markets in Japan and Overseas)
Business Transformation (Extend Markets in Japan and Overseas） Service Integrated Shosha Group By further extending our business partner network, we will extend and expand new and growth markets created through “TSUNAGU” innovation in Japan and overseas. Growth Potential YUASA 31 sites in Japan and
Slide 22: Overseas “Mini-YUASA” Project in Thailand
Overseas Service Integrated Shosha Group “Mini-YUASA” Project in Thailand In addition to YUASA TRADING (THAILAND) and YUASA ENGINEERING SOLUTION (THAILAND), we will expand into the construction field (construction materials and construction machinery), and consider constructing a new company buildin
Slide 23: Three Measures to Support Business Transformation
Three Measures to Support Business Transformation Service Integrated Shosha Group We will strengthen our efforts for corporate culture reform, DX promotion, and sustainability promotion to accelerate business transformation. Corporate culture reform Business transformation Foster a corporate culture
Slide 24: Corporate Culture Reform (Overview)
Corporate Culture Reform (Overview) Service Integrated Shosha Group Foster a corporate culture in which “TSUNAGU” innovation has become the norm through personnel system reform, environment building, and strengthening of governance Foster a corporate culture in which “TSUNAGU” innovation has become
Slide 25: Corporate Culture Reform (Personnel System Reform)
Corporate Culture Reform (Personnel System Reform) Service Integrated Shosha Group Through the YUASA PRIDE Project (“Increase Employee Work Satisfaction” project & “Regard for the Individual” project), we will increase employee engagement and develop personnel who can solve social issues with “TSUNA
Slide 26: Corporate Culture Reform (Environment Building)
Corporate Culture Reform (Environment Building) Service Integrated Shosha Group Using the new head office as a model, the entire YUASA TRADING Group will aim for an office environment that enables us to promote our total coordination skills, challenging spirit, and communication. New head office ove
Slide 27: Corporate Culture Reform (Strengthening of Governance)
Corporate Culture Reform (Strengthening of Governance) Service Integrated Shosha Group With the aim of improving corporate quality, we will strengthen our governance, compliance, and risk management initiatives. General Meeting of Shareholders Initiatives to Strengthen Governance Elect/ Elect/ Dismi
Slide 28: DX Promotion (Overview)
DX Promotion (Overview) Service Integrated Shosha Group With the goal of promoting business transformation, we will promote the construction of data use infrastructure, development of DX personnel, operational process reforms, and the creation of innovation. Business Transformation DX Promotion Expa
Slide 29: Sustainability Promotion (Carbon Neutrality)
Sustainability Promotion (Carbon Neutrality) Service Integrated Shosha Group In addition to aiming for carbon neutrality in the Group, we will accelerate the carbon neutrality promotion business. Carbon Neutrality Promotion in Our Group Carbon Neutrality Promotion Business Roadmap We will propose en
Slide 30: Investment Policy
Investment Policy Service Integrated Shosha Group We will conduct flexible growth investments (growth strategy, DX, and IT digital investments) through the promotion of face-to-face sales. Growing Together 2023 Growing Together 2026 Target Actual Details Investment Target Details JPY4.0bn - ‐ Overse
Slide 31: Shareholder Return Policy
Shareholder Return Policy Service Integrated Shosha Group We will continue to provide stable shareholder returns by improving the shareholder return ratio (dividends and share repurchases) and dividend on equity (DOE). ◼ Dividends: With a basic policy of stable dividends, we will issue dividends bas
Slide 32: Growing Together 2026 Numeric Targets & KPI (Financial)
Growing Together 2026 Numeric Targets & KPI Service Integrated Service IntegratedShosha ShoshaGroup Group Financial KPI In billions of yen (rounded down) FY03/23 Result FY03/2024 Target FY03/2026 Target Net sales (*1) 504.8 523.0 576.0 Operating profit 14.5 15.4 19.0 Ordinary profit 15.3 16.4 20.0 O
Slide 33: Growing Together 2026 Numeric Targets & KPI (Non-financial)
Growing Together 2026 Numeric Targets & KPI Service Service Integrated Integrated Shosha Shosha Group Group Non-financial KPI FY03/2023 Result FY03/2024 Target FY03/2026 Target CO2 emissions (t-CO2) (*1) ー 5,850 t-CO2 4,550 t-CO2 (10% reduction) (30% reduction) Percentage of women in management posi
Slide 34: Consolidated earnings forecasts for the Fiscal Year Ended March 31, 2024
Service Integrated Shosha Group Service Integrated Shosha Group Consolidated earnings forecasts 4 for the Fiscal Year Ended March 31, 2024 All Rights Reserved. Copyright YUASA TRADING CO.,LTD. 2023 33
Slide 35: FY03/24 forecast
FY03/24 forecast Service Integrated Shosha Group In billions of yen (rounded down) 1Q-2Q 3Q-4Q Full year FY2023/03 Target Target Target Change result Net sales 252.0 271.0 504.8 523.0 +3.6% Gross profit (percentage) 5.9 9.5 14.5 15.4 +6.2％ Selling, general and administrative expenses 2.3％ 3.5％ 2.89%
Slide 36: Forecasts and forward-looking statements
Service Integrated Shosha Group Forecasts and forward-looking statements in this document are based on information available as of the date of this document's release and on certain assumptions and expectations. Accordingly, actual results may differ materially due to various risks and uncertainties