Progress in Medium- to Long-term Strategy (announced in FY3/26)

To realize sustainable growth, we are implementing two-pillar management seeking “sales growth” in the in-vehicle business and “profitability” in the industrial and consumer business. We are also further increasing our contribution to society through ESG management that emphasizes environmental contributions and human capital as the cornerstone of our strategy.

In the in-vehicle business, we revised our strategy in fiscal 2025 in response to changes in the business environment and are accelerating the establishment of its revenue base with a dual-region focus on Japan and North America. We aim to achieve early stable operation of the Kansas Factory, turning it into a new revenue base following in the footsteps of the Nevada Factory, while also progressing with the transformation of our factories in Japan into production bases primarily for Japanese OEM customers.

Strategic framework

In the industrial and consumer business, we aim to solidify our No.1 position*1 in storage battery systems for data centers. We are even considering a temporary shift in resources from the in-vehicle business into the data center market, which is experiencing rapid growth driven by generative AI, with the goal of balancing business growth and profitability. Furthermore, aiming to build new business pillars to follow in the footsteps of the data center business, we will continue to optimize our business portfolio by taking on the challenge of creating new growth areas in parallel with the reduction of unprofitable businesses.

Furthermore, in terms of our business foundation, we are continuing to work on strengthening our supply chain to minimize geopolitical risks. We are also using IRA subsidies to build a stable and flexible supply chain.

As our social responsibility grows with the expansion of our business scale, we regard ESG management as an important element of our business strategy. In particular, in terms of contribution to the environment, we are actively promoting efforts to halve our carbon footprint*2 (CFP) and reduce our environmental impact through resource recycling, with a focus on measures to achieve decarbonization and to realize a circular societ y as our priority themes. We are also developing an internal system that can comply with international standards and strengthening cooperation with suppliers to ensure we can respond quickly to increasingly sophisticated laws and regulations and customer requests.

*1 According to our research
*2 Carbon footprint: A figure that expresses the amount of greenhouse gas emissions in terms of CO2 throughout the entire life cycle, from raw material procurement to disposal and recycling