GS Yuasa International Ltd. Business Report FY2010
|(in millions of JPY)|
|Sales||272,514||247,224||10.2||-Sales decreased because of the following factors:
-Demand for car batteries for new vehicles sharply declined.
-Sales prices both in Japan and abroad dropped, reflecting lower prices of lead.
-The yen remained stronger against other currencies.
|Operating income||17,589||11,521||52.7||- Mainly the Chinese and Southeast Asian markets remained strong throughout the year. In Japan, orders for car batteries, industrial batteries, and power-supply equipment started to increase in and after the third quarter. But the increase was not enough to offset the slowdown in demand in the first quarter.|
|Current net income||11,722||6,487||80.7||-|
|Automotive Battery Business Unit|
|Sales||60,305||58,307||3.4||- See below.|
-Sales increased year-on-year, totaling 275 billion, 514 million yen, an increase of 25 billion, 289 million yen, or a 10% rise. Overseas, sales increased mainly in Asia. In Japan, sales increased because the demand for automotive batteries for new cars and the demand for forklift batteries recovered; and because the Company started commercial operations in automotive lithium ion batteries.
-Business operating profit increased 52.7% year-on-year, totaling 17 billion, 589 million yen because the demand in Japan for automotive batteries for new cars and the demand for forklift batteries recovered; and because of the growth in business overseas, mainly in Asia.
Automotive Batteries (Japan)
-Sales in Japan at the Automotive Battery Business recovered, thanks to increased demand that resulted from eco-car sales incentives and to the seasonal demand for aftermarket batteries because of the record-breaking hot summer and cold winter.
Commercial Batteries and Power-source Devices (Japan)
-Sales increased year-on-year, amounting to 68 billion, 197 million yen, an increase of 6.88 billion yen (11.2%) due to increased sales volumes resulting from the recovery in demand for forklift batteries. In addition, there was an increase in demand for solar- power devices/equipment.
-Sales were up 12.5% year-on-year, totaling 119 billion, 776 million yen, thanks to greater sales volumes of automotive batteries mainly in China and Southeast Asia; and the Company's ability to include price raises in lead in its product selling prices.
-Sales increased year-on-year, reaching 24 billion, 233 million yen, which was an increase of 3 billion, 96 million yen, or a 14.7% increase. This was due to greater sales of automotive lithium ion batteries, and public-sector demand mainly for street lighting. The Company recorded a business operating loss of 4 billion, 278 million yen. (The previous year’s loss was 4 billion, 26 million.) This was due to increased depreciation expenses and R&D expenses spent on facilities and equipment investments to increase the production capacity of automotive lithium ion batteries.
Outlook for FY2011
Performance Forecast by Segment
|(in million of JPY)|
|Automotive Battery Business Unit (in Japan)||Sales||54,000||58,887||(8.3)|
|Industrial Batteries & Power Sources Business Unit (in Japan)||Sales||70,000||65,944||6.2|
|International BUsiness Unit||Sales||124,000||118,197||4.9|
|Lithium Ion Battery||Sales||25,000||-||-|
|(in millions of JPY)|
|Automotive Battery Business Unit||762||-||-|
|Industrial Batteries & Power Sources Business Unit||2,188||-||-|
|International Business Unit||781||-||-|
R&D Organization (battery and power supply equipment business)-In Japan, the Company's R&D activities on automotive batteries are conducted by GS Yuasa R&D Center and GS Yuasa R&D Headquarters.
-In Japan, the Company's R&D activities on commercial batteries and power supply devices are conducted by GS Yuasa R&D Center, GS Yuasa R&D Headquarters, and the R&D Department of the Commercial Battery & Power Business' Supply Systems Production Division.
-Outside Japan, R&D activities are conducted by GS Yuasa R&D Center, the R&D functions of the Ztong Yee Industrial Co., Ltd., Yuasa Battery, Inc., Yuasa (Tianjin) Technology Ltd.
-All other R&D activities are conducted by GS Yuasa R&D Center, GS Yuasa Lithium Ion Battery Business R&D Headquarters, GS Yuasa Technology Ltd., Lithium Energy Japan, Blue Energy Co., Ltd., GS Yuasa's lighting business unit, Industrial Batteries & Power Sources Business Unit's R&D group,Yuasa Membrane Systems Co., Ltd.
R&D Activities (Automotive Battery Business Unit in Japan)-The Company conducts R&D activities on automotive lead-acid batteries, continuing to work in this sector on improving battery chargeability and durability, which is needed automotive battery technology for low-fuel-consumption vehicles such as those with the idle-stop function.
- In its other business areas, the Company is conducting fundamental R&D on lithium batteries, as well as researching the following items: automotive lithium ion batteries, commercial-use lithium ion batteries, aircraft lithium ion batteries, extraterrestrial-use lithium ion batteries, facilities lighting, equipment applying ultra-violet light、eco-machinery, etc. In the area of fundamental R&D on lithium batteries, the Company is working to improve the reliability and safety of medium- and large-sized batteries.
- In the area of automotive lithium ion batteries, the Company is working to make further improvements and enhance the reliability and safety of batteries, aiming to increase its product lineup and production volume of batteries, along with increasing the production volume of lithium ion batteries for EVs. The Company is working on developments that will optimize production methods so as to increase the production speed and production volume at its Kyoto Plant. This made for an on-time production launch possible. In addition, the Company is continuing R&D activities on lithium ion batteries for hybrid cars, working to improve its EH Series Batteries so that they ensure the world highest standards in terms of output and long product life. Working in partnership with Honda, the Company is making progress step-by-step toward achieving the actual use of these batteries on vehicles.
-GS Yuasa Corporation, Mitsubishi Corporation, Mitsubishi Motors Corporation, and Lithium Energy Japan announced that they will conduct joint verification testing for putting into practice secondary use of lithium-ion batteries for electric vehicles. The testing will take place in Kyoto starting on January 26. Power generated by a solar battery will be stored in a used lithium-ion battery on the Mitsubishi i-MiEV electric vehicle. The stored power can be transferred to an electric vehicle using a quick charging system. This is the first time for such project to be carried out in Japan. The four companies are planning to spend a year to prove that the reuse of lithium-ion battery can reduce energy cost and such use of battery resources contributes to making the electric mobility technology even friendlier to the environment. (From an article in the Nikkan Jidosha Shimbun on January 26, 2011)
Product DevelopmentPhosphoric Acid Vanadium Lithium for Positive Electrode of Li-ion battery
-Announced development of phosphoric acid vanadium lithium, which features high safety and excellent output performance, for use as positive electrode material for a lithium-ion battery. The battery supplier will hereafter proceed with development of a lithium-ion battery using phosphoric acid vanadium as positive electrode material. With the lithium-ion battery with positive electrode made of this material, GS Yuasa has secured safety equal to that of a lithium iron phosphate battery, as well as output that is 20 percent higher than the conventional product. (From an article in the Nikkan Jidosha Shimbun on September. 10, 2010)
Quick Charger for Electric Vehicles
-Announced a quick charger "EVC-50KA" for electric vehicles, which will go on sale on July 1. GS Yuasa aims to sell 200 chargers during the first year by making sales efforts focused on government institutions and commercial facilities. The new device is designed in accordance with the global charging standard now being prescribed by the CHAdeMO Association, which is a consortium composed of corporations across industries in Japan and abroad with the aim of increasing quick-charger installations worldwide. The device not only ensures safety, but also makes charging operation easier by a larger liquid crystal color display and voice guidance. A 30-minute charging for the Mitsubishi "i-MiEV" enables the car to run up to 120 kilometers. Battery capacity can be chosen between 10 and 50-kilo watt because the power unit consists of 10-kilo watt pieces. The charger is applicable to the i-MiEV, Fuji Heavy Industries' "Plug-in Stella" and other forthcoming electric vehicle models. (From an article in the Nikkan Jidosha Shimbun on June. 28, 2010)
|(in millions of JPY)|
|Battery and Power Sources||-||3,271||4,942|
|Automotive Battery Business Unit(in Japan)||521||521||-|
|Industrial Batteries & Power Sources Business Unit||521||896||-|
|International Business Unit||3,689||1,854||-|
Investment in Japan
-The Company is going to start full-scale initiatives to acquire a piece of land adjacent to Lithium Energy Japan's plant site in Ritto City, Shiga Prefecture in order to establish a new lithium-ion battery production facility. The Kyoto-based Lithium Energy Japan is a consolidated subsidiary of GS Yuasa. The subsidiary's Ritto facility is going to produce lithium-ion cells for electric vehicles, starting at the beginning of 2012. Its annual production volume is expected to reach 4.4 million cells, which can power 50, 000 Mitsubishi i-MiEVs. (From an article in the Nikkan Jidosha Shimbun on September. 29, 2010)
-Lithium Energy Japan (LEJ), a battery manufacturer headquartered in Minamiku, Kyoto City, announced that it will dramatically expand its production capacity to make lithium-ion batteries for the Mitsubishi i-MiEV electric vehicles. By fiscal year 2012, the company is aiming to increase its yearly production capacity by more than thirty times from the current level of 2,300 battery packs. It is targeting 6,800 packs by June, and 17,800 packs by December this year. At the beginning of the fiscal term 2012, LEJ will be able to roll out another 50,000 battery packs per year. Total investment in the expansion project including spending for a new plant is expected to reach 48.4 billion yen. In the long term, the company is mulling the possibility of further pushing up the level to be able to supply batteries for 100,000 vehicles per year. LEJ was established as a joint-venture company by GS Yuasa Corporation, Mitsubishi Corporation, and Mitsubishi Motors Corporation in 2007. It is owned 51 percent by GS Yuasa, 34 percent by Mitsubishi Corporation, and 15 percent by Mitsubishi Motors. (From an article in the Nikkan Jidosha Shimbun on April. 15, 2010)
Investment Outside Japan
-The Company will increase the ratio of shareholding in PT. Trimitra Baterai Prakasa (TBP), which manufactures and sells lead-acid storage batteries for automobiles in Indonesia. GS Yuasa will acquire all 18.80 million shares of new stock TBP is going to issue in October for about 46.4 billion rupiah (approximately 430 million yen), making it its affiliated company accounted for under the equity method. When the share transaction is completed, the GS Yuasa Group, which owns TBP shares through PT. Yuasa Battery Indonesia as well, will become a 50 percent shareholder of TBP in all. (PT. Yuasa Battery Indonesia is owned 50 percent by GS Yuasa.) As part of its initiatives to expand its Asian business, the Group aims to raise the yearly sales of lead-acid batteries at TBP to 6.1 million units by fiscal year 2013, an increase of 60 percent from those in fiscal year 2009. TBP, which offers a wide range of automotive lead-acid batteries at low prices, has been increasing its exports by supplying its products to GS Yuasa's facilities in Europe, Vietnam, Malaysia, and Australia. By increasing its investment ratio in the Indonesian facility, GS Yuasa will further strengthen TBP's position as its export hub in the global market. (From an article in the Nikkan Jidosha Shimbun on October. 9, 2010)
New Facilities (Selected)
(in millions of JPY)
|Date of start||Scheduled date of completion||Purpose of the investment|
|GS Yuasa International Ltd.
|Facilities for manufacturing storage batteries, etc. for automotive applications||873||March 2011||March or after April, 2012||Reduce costs|
|Facilities for manufacturing power supply equipment and lead storage batteries, etc for industrial use||956||March 2011||March or after April, 2012||Reduce costs|
|Facilities for R&D and production activities; and facilities for renting to affiliated companies||4,841||March 2011||March or after April, 2012||Expand R&D facilities, reduce costs, and add new manufacturing facilities|
|Facilities for manufacturing large lithium-ion batteries, etc.||1,038||March 2011||March or after April, 2012||Increase production capacity|
|Lithium Energy Japan
|Facilities for manufacturing large lithium-ion batteries, etc.||23,053||Nov. 2010||March or after April, 2012||Add new manufacturing facilities and increase production capacity|
|Blue Energy Co., Ltd.
|Facilities for manufacturing lithium-ion batteries, etc. for automotive applications||13,068||Jan. 2011||March or after April, 2012||Add new manufacturing tools|
|Ztong Yee Industrial Co., Ltd.
(Yungkang Tainan, Taiwan)
|Facilities for manufacturing lead storage batteries||620||Dec. 2010||March or after April, 2012||Increase production capacity|
|Yuasa Battery, Inc.
|Facilities for manufacturing lead storage batteries||405||Dec. 2010||March or after April, 2012||Increase production capacity|
|Century Yuasa Batteries Pty Ltd.
|Facilities for manufacturing lead storage batteries||457||Dec. 2010||March or after April, 2012||Increase production capacity|
|Yuasa Battery (Shunde) Co., Ltd.
|Facilities for manufacturing lead storage batteries||623||Dec. 2010||March or after April, 2012||Increase production capacity|
|Tianjin GS Battery Co., Ltd.
|Facilities for manufacturing lead storage batteries||1,041||Dec. 2010||March or after April, 2012||Increase production capacity|