GS Yuasa Report 2018 for the Fiscal Year Ended March 31, 2018

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GS Yuasa Report 2018 for the Fiscal Year Ended March 31, 2018 GS Yuasa Corporation GS Yuasa Report 2018 For the fiscal year ended March 31, 2018 ©JAXA/NASA GS Yuasa Corporation Head Office 1, Inobanba-cho, Nishinosho, Kisshoin, Minami-ku, ©JAMSTEC Kyoto 601-8520, Japan English website: www.gs-yuasa.com/en The values that we supply to society Through our business we are contributing to achievement of the Sustainable Development Goals. Supplying the necessary key components for the diffusion of eco-vehicles Since emissions of carbon dioxide (CO2) from the more than 1.3 billion vehicles on roads around the world are having an impact on global warming, regulations on CO2 emissions and fuel consumption are becoming increasingly stringent in various regions. For this reason, the diffusion of eco-friendly vehicles, such as hybrid electric (HEVs), plug-in hybrid electric (PHEVs), and electric vehicles (EVs), is advancing. And even in the case of conventional gasoline vehicles, the standardization of start-stop functions designed to contribute to the improvement of fuel consumption is progressing. Our Group’s products are playing an important role in this shift to eco-vehicles and the electrification of automobiles. For example, to increase the traveling distance of EVs and PHEVs, for which demand Automotive Automotive lithium-ion is increasing, it is necessary to vastly improve storage battery performance. We are lead-acid batteries batteries tackling the challenge of making lithium-ion batteries better performing, cheaper, and longer-lasting. Global Market Forecast for Automobiles 150 (Million Fuel-cell vehicles (FCV) Compressed natural gas (CNG)/ units) Electric vehicles (EV) Liquefied petroleum gas (LPG) vehicles Plug-in hybrid electric vehicles (PHEV) Diesel vehicles Hybrid electric vehicles (HEV) Gasoline vehicles 100 50 We have secured the second largest share of We established a mass production system ahead the global market for these products. of competitors. 0 Our product development strength has enabled These batteries have been widely adopted 2000 20052010 2015 2020 2025 2030 (Year) quick responses to new demand, such as our by automakers worldwide. Source: International Energy Agency, Energy Technology Perspectives 2015 lead-acid batteries for vehicles with start-stop Numerous market hits systems. 1 GS YUASA Report 2018 GS YUASA Report 2018 2 The values that we supply to society Through our business we are contributing to achievement of the Sustainable Development Goals. Contributing to the increased use of power source systems and storage battery technology using renewable energies Since worldwide energy demand is increasing as a result of burgeoning populations and economic growth, it is necessary to expand the use of renewable energies to replace the limited fossil fuels, such as oil and coal. The introduction of power source systems and storage batteries to stabilize output fluctuations is essential for the effective use of energy from photovoltaic or wind power generation. Our Group’s products are attracting much attention as indispensable items for the diffusion of photovoltaic and wind power generation. Power conditioners In order to utilize energy generated from solar power without waste, we are for photovoltaic improving the conversion efficiency of power conditioners and pursuing technology. Storage battery system power plants Furthermore, in Japan we are engaged in the design and building of entire photovoltaic power generation systems. Trends in the Share ofof Renewable Energies in Power GeneratioGenerationn Facilities Introduced Each Year Worldwide 300 60 (GW) OtheOtherrre renewablenew energies (bioenergy, solar, geothermal, ocean) (%) Photovoltaic Wind Hydropower 200 40 Fossil fuels, nuclear Share of renewable energies (right-hand scale) 100 20 This system contributes to the effective With a product lineup from 4.5 to 250 use of energy through higher electricity kilowatts, these power conditioners are used conversion efficiency and little loss. in plants of all sizes, including small-scale 0 0 1990 19952000 2005 2010 2015 (Year) facilities and mega solar plants. Source: International Energy Agency, World Energy Outlook 2016 By combining solar panels and storage batteries, plant operators can build storage systems for on-site power use. 3 GS YUASA Report 2018 GS YUASA Report 2018 4 The values that we supply to society Through our business we are contributing to achievement of the Sustainable Development Goals. Contributing to power stabilization in social infrastructure with power backup equipment In an age when electricity is needed for all kinds of things, the activities of society would come to a halt if the supply of electricity were cut off. Therefore, backup power sources assuming the stoppage of power supplies at times of natural disaster, such as flooding or earthquakes, are becoming increasingly important. With their outstanding quality and reliability, our Group’s products are safeguarding society’s basic infrastructure. In addition, we are contributing to the continuity of business in office buildings and plants in the event of a large natural disaster. Japan is a country prone to such natural disasters as typhoons, earthquakes, and volcanic eruptions. AC uninterruptible Industrial To fulfill our responsibility vis-à-vis some social infrastructure, we have organized DC power supply power supply lithium-ion batteries a setup providing total support from product development to installation and maintenance. Japan’sJapan’s Share ofof the World’s Natural Disasters No. of earthquakes No. of active Amount of with magnitude volcanoes*2 natural disaster of 6.0 or more*1 damage*3 Japan Japan Japan ($100 million) World 212 World 108 World 2,068 1,036 (20.5%) 1,548 (7.0%) 17,361 (11.9%) *1: Total for 2000–9. Compiled by the Japanese Cabinet Office based on hypocenter materials of the Japan Meteorological Ranging from general purpose to specialized power supplies, our product lineup Customers can choose from among Agency for Japan and the United States Geological Survey for the rest of the world. meets all kinds of demand from customers. high-capacity types or fast-charging and *2: Active volcanoes are volcanoes,volcanoes, etc.etc. that have erupted in the last 10,00010,000 years or so.so. Compiled by the Japanese GS Yuasa’s network of over 100 service centers across Japan provides unmatched more powerful types to suit their needs. Cabinet Office based on volcano materials of the Japan Meteorological Agency for JaJapanp and the Smithsonian’s National Museum of Natural History in the United States forfor the rest ofof the world. customer support. We have created a highly competitive *3:*3: Total forfor 1979–2008. Compiled by the Japanese Cabinet OfficeOffice based on materials ooff tthe Centre for Research on the Epidemiology product lineup by utilizing automotive ofofDif DiDisastsasters (CRED).(CRE( D)D).) lithium-ion batteries. Source: Japanese Cabinet Office, White Paper on Disaster Management 2010, Diagram 1-1-1 5 GS YUASA Report 2018 GS YUASA Report 2018 6 Value Creation Process Considering the Resolution of Social Issues as an Opportunity for Growth Social issues Operational processes Growth driven by solving social issues Issues to be tackled Underpinnings of Sustainable by society as a whole value creation Business activities Values provided to society growth Promulgation of Sustainable A stable financial Automotive Batteries (Japan/Overseas) Automotive Lithium-ion Batteries Development Goals (SDGs) foundation bolstered by Promoting expanded use Maximization of the Group’s mainstay Manufacturing and marketing lead-acid batteries Manufacturing and marketing lithium-ion of eco-friendly vehicles profits Promote initiatives to achieve 17 goals, lead-acid battery business for cars, motorbikes, and industrial applications in batteries for electric vehicles (EVs), focusing on resources, climate change, and Japan and 17 countries around the world. plug-in hybrid electric vehicles (PHEVs), health, among others. P.33− hybrid vehicles, and similar. P.39− Promoting expanded use Maximization of Solid strengths for of renewable energy developing technologies returns to and cultivating markets Industrial Batteries and Power Supplies Others shareholders built on an outstanding Supplying various kinds of batteries for industrial Manufacturing and marketing lithium-ion through efficient track record and applications, as well as power supply systems, batteries for manned submersible Efficient use of electricity use of assets customer trust Issues concerning our Group lighting equipment, membrane systems, etc. research vessels, satellites, rockets, and P.37− other applications. P.41− Enhanced Climate change and Advanced technological More dependable technological capabilities bolstering social infrastructure global warming the lithium-ion batteries capabilities Carbon dioxide (CO2) emissions business Value creation strategy from over 1.3 billion automobiles worldwide are having a serious Stable or growing impact on global warming. Strong competitiveness Mid-term management plan CSR Activities number of and brand power Products that contribute to employees supported by business GS Yuasa pursues a management strategy aimed Addressing global social issues in a timely solving social issues Depletion of natural resources partnerships at reinventing ourselves as an energy device manner while keeping the needs and Increased use of renewable company with solid long-term sustainable expectations of all stakeholders in mind. growth. energy is needed as a P.16− P.45– Automotive batteries Stronger relations
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