GS Yuasa International Ltd. Business Report FY ended Mar. 2015
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 369,760 | 347,995 | 6.3 | -Sales reached a record high, as the Company acquired majority stakes in local operations and added them to its consolidated financial statements. A weak yen and stronger sales of automotive lithium-ion batteries also boosted sales. |
| Operating income | 20,914 | 18,197 | 14.9 | -Operating profit and ordinary profit reached record highs due to an increase in sales of automotive lithium-ion batteries and lower selling prices outside Japan. |
| Ordinary income | 22,357 | 20,333 | 10.0 | |
| Net income | 10,043 | 9,982 | 0.6 | - |
| Domestic Automotive Batteries | ||||
| Sales | 51,747 | 56,905 | (9.1) | -Sales declined y/y due to sluggish demand for automotive lead-acid storage batteries and a decline in sales of other vehicle-related components. |
| Operating income | 2,397 | 3,310 | (27.6) | -Operating profit declined y/y due mainly to higher lead prices. |
| Overseas Operations | ||||
| Sales | 183,759 | 164,252 | 11.9 | -Sales increased y/y as a result of turning a Thai affiliate and an Indonesian subsidiary into a consolidated subsidiary. A weak yen also boosted sales. |
| Operating income | 10,786 | 8,996 | 19.9 | -Operating profit increased y/y due to lower lead prices and reduced sales prices. |
| Lithium-ion Batteries | ||||
| Sales | 45,181 | 32,501 | 39.0 | -Sales increased y/y due to growth in sales of lithium-ion batteries for HVs and PHVs. |
| Operating income | (2,626) | (7,243) | - | -Smaller operating loss due to improved capacity utilization and the effects of streamlining efforts. |
Operations outside Japan
-The Company plans to increase production of automotive lead-acid batteries in Thailand to 5 million units per year by FY 2018 ending March 2019. This will be a 70 percent gain from the 3 million units produced in FY 2012. Demand for these batteries is expected to grow significantly in the Thai market, where the government has introduced the second phase of its eco-car program and Japanese automakers are stepping up production. The company expects to supply its batteries not only for vehicles sold in Thailand, but also for those destined for exports to its neighboring countries such as Myanmar, Cambodia, and Laos. In these countries including Thailand, sales of vehicles with engine stop-start systems are likely to expand, and these vehicles use lead-acid batteries. The company expects that this whole region will develop into huge OEM and after-sales markets in the future, and intends to utilize its Thai operations as its major supply hub. (From an article in the Nikkan Jidosha Shimbun on April 17, 2014)
Third mid-term business plan
-FY ending March 2016 is the final year of the Company's third mid-term business plan. Although economies are slowly recovering both in Japan and outside Japan, the Company predicts that it will be unable to achieve its financial targets (sales of JPY 450 billion, operating profit of JPY 36 billion, and operating margin of 8.0%), as each business segment is facing difficult conditions.
Financial targets by segment
| FY ending Mar. 31, 2016 | Sales (in billions of JPY) |
Operating Income (in billions of JPY) |
| Domestic Automotive Batteries | 62.0 | 6.5 |
| Domestic Industrial Batteries and Power Supplies | 87.0 | 12.5 |
| Overseas Operations | 228.0 | 15.5 |
| Lithium-Ion Batteries | 60.0 | 1.0 |
| Others | 13.0 | 0.5 |
| Total | 450.0 | 36.0 |
Earnings Forecast by Segment for FY ending Mar. 31, 2016
|
(in billions of JPY) |
| FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual) |
Rate of Change (%) |
||
| Domestic Automotive Batteries | Sales | 52.0 | 51.7 | 0.6 |
| Operating income | 3.0 | 2.4 | 25.0 | |
| Domestic Industrial Batteries and Power Supplies | Sales | 81.0 | 79.8 | 1.5 |
| Operating income | 9.0 | 8.7 | 3.4 | |
| Overseas Operations | Sales | 218.0 | 183.8 | 18.6 |
| Operating income | 12.0 | 10.8 | 11.1 | |
| Lithium-Ion Batteries | Sales | 40.0 | 45.2 | (11.5) |
| Operating income | 0.0 | (2.6) | - | |
| Others | Sales | 9.0 | 9.2 | (2.2) |
| Operating income | 0.0 | 1.7 | - | |
| Total | Sales | 400.0 | 369.8 | 8.2 |
| Operating income | 24.0 | 20.9 | 14.8 | |
Note: As part of its structural reorganization, the Company transferred its lighting and membrane system business to its Domestic Industrial Batteries and Power Supplies Division, effective FY ended March 2015.
Initiatives to achieve objectives set for FY ending March 2016
-Domestic Automotive Battery Division: expand sales of high-value added products such as batteries for vehicles with an automatic engine stop-start system
-Lithium-on Battery Division: return to profitability by responding to changes in business environment
| Company |
Major initiatives |
| Lithium Energy Japan | -Streamline purchasing processes by utilizing efficient logistics systems -Collaborate with business partners in order to improve productivity |
| Blue Energy | -Improve profitability by increasing yield ratio and reducing costs |
| Lithium Energy and Power | -This joint venture was formed in November 2013 with Robert Bosch and Mitsubishi Corporation –It began developing next-generation lithium-ion batteries at the end of 2013 -In 2015, the JV began preparing for mass-production. It aims to commence mass production in 2017. |
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Domestic Automotive Batteries | 685 | 676 | 663 |
| Domestic Industrial Batteries and Power Supplies | 2,258 | 1,923 | 1,793 |
| Overseas Operations | 643 | 658 | 684 |
| Lithium-Ion Batteries | 3,006 | 3,046 | 2,735 |
| Others | 131 | 191 | 351 |
| Total | 6,725 | 6,495 | 6,227 |
-R&D Expenditure for FY ending March 2016 is planned to be JPY 7,000 million.
R&D Facilities
| Business Unit | Company | Division |
| Domestic Automotive Batteries | GS Yuasa International Ltd. | Technological development division |
| Overseas Operations | Plants outside Japan |
Technological development division |
| GS Yuasa International Ltd. | Technological development division |
|
| GS Yuasa Asia Technical Center Ltd. (Thailand) | - | |
| Lithium-Ion Batteries | GS Yuasa International Ltd. | Research and technical development division Lithium-ion battery development division |
| Lithium Energy Japan | Technical Division |
|
| Blue Energy Co., Ltd. | Technological development division |
R&D Activities
Automotive business in Japan
-For vehicles equipped with an automatic engine stop-start system, the Company developed high-performance batteries that use lithium as an electrode material. The new batteries offer a 300% increase in charging capacity compared with the Group's conventional batteries. The Company adopted these technologies also for aftermarket products and released the ECO.R LONG LIFE series batteries, the industry's first of its kind that can support both conventional vehicles and those with an automatic engine stop-start system. Furthermore, the Company added two new products, K-42/50B19 and T-110/120D31, to the battery series.
Outside Japan
-In the area of automotive lead-storage batteries, the Company is working on developing batteries for charged-controlled vehicles and vehicles equipped with an automatic engine stop-start system. These batteries are targeted at vehicles being produced and used outside Japan.
Lithium-on batteries
-The Company is working on basic research on medium- and large-size batteries for improving their reliability, safety, and their energy density. In order to further improve the battery performance, the Company will search for and evaluate the performance of materials needed for next-generation positive electrodes and next-generation negative electrodes. It is also studying post-lithium-ion batteries.
-Lithium Energy Japan began operations at its Ritto Plant No.1 in April 2012, and began production at its Ritto Plant No.2 in October 2013. The company currently has the capacity to produce batteries for 10,000 EVs and 50,000 PHVs per year. It plans to produce these batteries mainly for Mitsubishi Motors.
-Blue Energy Co., Ltd. is collaborating with Honda R&D Co., Ltd. to develop batteries for various vehicles.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Domestic Automotive Batteries | 783 | 1,096 | 641 |
| Domestic Industrial Batteries and Power Supplies | 1,541 | 1,659 | 1,044 |
| Overseas Operations | 3,994 | 5,710 | 4,078 |
| Lithium-Ion Batteries | 1,877 | 6,912 | 24,943 |
| Otherｓ | 2,811 | 3,191 | 2,451 |
| Total | 11,008 | 18,570 | 33,159 |
-In FY ending March 2016, the Company plans to invest JPY 17,000 million in plants and equipment (JPY 3,400 million in the Lithium-ion battery business, JPY 5,500 million in Overseas operations, and JPY 8,100 million in domestic and other business)
Planned Capital Investment |
(As of Mar. 31, 2015) |
| Facilities (Location) |
Equipment | Amount (in millions of JPY) |
Date of start | Scheduled date of completion | Purpose of the investment |
| GS Yuasa International Ltd. (Kyoto, Japan) |
Facilities for manufacturing storage batteries, etc. for automotive applications | 1,847 | Mar. 2015 | During FY ending Mar. 31, 2016 or after | Reduce costs, add new manufacturing tools |
| Facilities for manufacturing lithium-ion batteries for automotive applications | 350 | Mar. 2015 | During FY ending Mar. 31, 2016 or after | Expand R&D facilities | |
| R&D facilities, production facilities | 3,431 | Mar. 2015 | During FY ending Mar. 31, 2016 or after | Expand R&D facilities, reduce costs, new manufacturing tools | |
| Lithium Energy Japan (Shiga, Japan) |
Facilities for manufacturing lithium-ion batteries for automotive applications | 2,311 | Mar. 2015 | During FY ending Mar. 31, 2016 or after | Add new manufacturing facilities and increase production capacity |
| Blue Energy Co., Ltd. (Kyoto, Japan) |
Facilities for manufacturing lithium-ion batteries for automotive applications | 2,424 | Mar. 2015 | During FY ending Mar. 31, 2016 or after | Add new manufacturing tools |
| Tianjin GS Battery Co., Ltd. (Tianjin, China) |
Facilities for manufacturing lead storage batteries | 1,243 | Dec. 2014 | During FY ending Mar. 31, 2016 or after | Increase production capacity |
| Siam GS Battery Co., Ltd. (Samutprakarn, Thailand) |
Facilities for manufacturing lead storage batteries | 803 | Dec. 2014 | During FY ending Mar. 31, 2016 or after | Increase production capacity |
| PT. Trimitra Baterai Prakasa (Jakarta, Indonesia) |
Facilities for manufacturing lead storage batteries | 622 | Dec. 2014 | During FY ending Mar. 31, 2016 or after | Increase production capacity |
| Century Yuasa Batteries Pty Ltd. (Queensland, Australia) |
Facilities for manufacturing lead storage batteries | 578 | Dec. 2014 | During FY ending Mar. 31, 2016 or after | Increase production capacity |
| Yuasa Battery (Shunde) Co., Ltd. (Guangdong, China) |
Facilities for manufacturing lead storage batteries | 469 | Dec. 2014 | During FY ending Mar. 31, 2016 or after | Increase production capacity |
Data
| Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
| Domestic Automotive Batteries | 719 | 748 | 791 |
| Domestic Industrial Batteries and Power Supplies | 1,472 | 1,333 | 1,304 |
| Overseas Operations | 10,970 | 10,061 | 9,065 |
| Lithium-Ion Batteries | 544 | 543 | 454 |
| Others | 801 | 924 | 985 |
| Total | 14,506 | 13,609 | 12,599 |
Sales by Segment
|
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | ||||
| Sales | Operating income | Sales | Operating income | Sales | Operating income | |
| Domestic Automotive Batteries | 51,747 | 2,397 | 56,905 | 3,310 | 55,648 | 3,931 |
| Domestic Industrial Batteries and Power Supplies | 79,822 | 8,657 | 79,242 | 12,199 | 72,427 | 10,813 |
| Overseas Operations |
183,759
|
10,786
|
164,252
|
8,996
|
119,885
|
6,380
|
| Lithium-Ion Batteries | 45,181 | (2,626) | 32,501 | (7,243) | 10,597 | (11,249) |
| Others | 9,248 | 1,698 | 15,094 | 936 | 15,951 | (100) |
| Total | 369,760 | 20,914 | 347,995 | 18,197 | 274,509 | 9,775 |
-As part of its structural reorganization, the Company transferred its lighting and membrane system business to its Domestic Industrial Batteries and Power Supplies Division, effective FY ended March 2015.
Sales by Geographic Area |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Japan | 175,877 | 179,357 | 152,699 |
| Asia | 112,859 | 94,705 | 61,917 |
| Europe & America | 55,227 | 49,039 | 38,574 |
| Others | 25,795 | 24,892 | 21,319 |
| Total | 369,760 | 347,995 | 274,509 |
(Note) Overall sales are based on customer locations, categorized by country or region.
Consolidated |
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (million yen) | 272,514 | 285,434 | 274,509 | 347,995 | 369,760 |
| Income from ordinary business activities (million yen) | 17,513 | 17,991 | 12,258 | 20,333 | 22,357 |
| Net income (million yen) | 11,722 | 11,733 | 5,767 | 9,982 | 10,043 |
| Comprehensive income (million yen) | 8,395 | 8,194 | 8,447 | 14,376 | 27,091 |
| Net assets (million yen) | 122,310 | 136,221 | 141,189 | 154,702 | 182,187 |
| Total assets (million yen) | 247,446 | 278,426 | 290,368 | 340,462 | 359,522 |
| Book value per share (yen) | 262.48 | 278.87 | 303.65 | 337.82 | 390.98 |
| EPS (yen) | 28.39 | 28.42 | 13.97 | 24.18 | 24.33 |
| Diluted EPS (yen) | - | - | - | 24.16 | 22.68 |
| Net asset ratio (%) | 43.8 | 41.3 | 43.2 | 41.0 | 44.9 |
| ROE (%) | 11.2 | 10.5 | 4.8 | 7.5 | 6.7 |
| PER | 19.47 | 15.97 | 27.27 | 22.62 | 22.23 |
| Cash flow from operating activity (million yen) | 25,478 | 8,287 | 19,069 | 19,704 | 19,729 |
| Cash flow from investment activity (million yen) | (25,444) | (28,660) | (29,249) | (9,786) | (14,519) |
| Cash flow from financial activity (million yen) | 8 | 13,152 | 3,839 | 589 | (5,798) |
| Balance at the term-end of cash and cash equivalents (million yen) | 24,030 | 16,476 | 11,210 | 23,392 | 25,708 |
| Number of employees | 12,394 | 12,265 | 12,599 | 13,609 | 14,506 |
Non Consolidated
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (million yen) | 5,016 | 4,785 | 4,800 | 5,936 | 4,937 |
| Income from ordinary business activities (million yen) | 4,408 | 4,207 | 4,663 | 6,223 | 5,409 |
| Net income (million yen) | 4,251 | 3,737 | 4,171 | 5,527 | 4,636 |
| Paid-in Capital (million yen) | 33,021 | 33,021 | 33,021 | 33,021 | 33,021 |
| Number of stock outstanding (1000) | 413,574 | 413,574 | 413,574 | 413,574 | 413,574 |
| Net assets (million yen) | 116,969 | 117,366 | 118,255 | 121,269 | 121,371 |
| Total assets (million yen) | 147,492 | 146,861 | 151,657 | 161,809 | 161,732 |
| Book value per share (yen) | 283.33 | 284.30 | 286.46 | 293.77 | 294.04 |
| Dividend per share (yen) | 8 | 8 | 6 | 8 | 10 |
| EPS (yen) | 10.30 | 9.05 | 10.11 | 13.39 | 11.23 |
| Diluted EPS (yen) | - | - | - | 13.38 | 10.45 |
| Net asset ratio (%) | 79.3 | 79.9 | 78.0 | 74.9 | 75.0 |
| ROE (%) | 3.7 | 3.2 | 3.5 | 4.6 | 3.8 |
| PER | 53.70 | 50.15 | 37.70 | 40.85 | 48.16 |
| Payout ratio (%) | 77.7 | 88.4 | 59.4 | 59.7 | 89.0 |
| Number of employees | 11 | 10 | 11 | 11 | 11 |