YUASA CO., LTD. is promoting its medium-term management plan "Reborn 2031," covering the five-year period ending March 31, 2031, toward the achievement of its 10-year long-term vision "YUASA vision 370," which targets the fiscal year ending March 31, 2036, the 370th anniversary of its founding.
The first five years of the long-term vision are positioned as a period for "strengthening the foundation for offensive strategies," and we will promote initiatives to strengthen its "business foundation," "human resource foundation," and "management foundation."
In particular, regarding "strengthening the business foundation," we will work on the theme of improving "growth, profitability, and efficiency" for the entire Group.
First, to ensure "growth," we will proceed with building foundations in terms of both business and human resources in its overseas strategy. We will horizontally expand its business and base strategy initiatives that leverage its comprehensive strengths in Thailand to other countries, including ASEAN, India, and North America, while strengthening the overseas expansion of the business platforms cultivated in its domestic existing businesses. Through these initiatives, We aims to grow overseas net sales to 40 billion yen in the fiscal year ending March 31, 2031, and to a scale of 100 billion yen in the fiscal year ending March 31, 2036.
Furthermore, to improve "profitability," we will create its own unique added value and increase profitability by working to solve social issues through its unique "TSUNAGU" function and the exercise of its "comprehensive strengths" consisting of YUASA Group companies and its network of business partners. As a quantitative target, we will achieve "ordinary profit: 20 billion yen or more" in the fiscal year ending March 31, 2031, leading to "high-angle growth" beyond that point.
In addition, as an indicator to improve "efficiency," we have newly positioned ROIC (return on invested capital) as an important KPI from the perspective of improving capital efficiency and promoting disciplined growth investment. In addition to targeting an ROIC level of "8.0% or more" for the fiscal year ending March 31, 2031, we will aim to maximize corporate value by maintaining and improving a positive equity spread through initiatives to reduce the weighted average cost of capital (WACC).
Regarding the shareholder return policy, we have newly introduced a "progressive dividend (no dividend cuts in principle)" policy. In addition, we have set a shareholder return ratio of 35% or more and a dividend on equity ratio (DOE) of 3.5% or more as KPIs, and will continue stable shareholder returns.
We sincerely ask for your continued support in the future.
Hiroyuki Tamura,
Representative Director, President & CEO
