Value Creation Story
Value Creation Story
Leveraging our strengths to advance our business and environmental strategies as one and provide new value globally
Using the “five strengths” and “six capitals” we have cultivated as a global mega-supplier as our sources of value creation, we aim to continue providing new value to society and achieving sustainable growth as a group by advancing our business and environmental strategies as one.
Six Capitals and Strengths
Further enhancing our strengths by reinforcing each capital
By strategically enhancing its six capitals, the Astemo Group aims to strengthen its technological capabilities that combine hardware and software, expand its broad coverage of automobiles and motorcycles, and evolve into a company that provides innovative value in the mobility society of the future.
Focusing on reinforcing the capitals that support value creation
The Astemo Group is working to further reinforce each capital to create innovative value.
Social and relationship capital A customer base stretching across the globe
As a group, we do business with approximately 70 customers across 26 countries, pursuing further growth in the global market by meeting the diverse needs of each country, region, and industry. We appoint a global account manager for each major customer, contribute to the improvement of the customer’s corporate value, and work to build a relationship as true value-creation partners.
Intellectual capital Qualitative enhancement and strategic utilization of the IP portfolio
We are focusing on IP as a key component of intellectual capital, advancing its reinforcement by aligning business strategy with IP strategy. Specifically, we have established the Intellectual Property Strategy Meeting and the Patent Committee to strengthen and secure competitive advantage through the effective utilization of IP and the enhancement of brand value. In particular, by increasing the proportion of patents in the areas of electrification and SDVs, we are steadily building a solid foundation for establishing leadership in the next-generation mobility sector.
Human capital Developing human resources to realize our business strategy
To create social value through advanced technologies, we have designated “creating new value through DX and AI, and taking proactive measures against the risks” as one of our materiality issues, and formulated a human resource strategy aligned with our business strategy. Additionally, as we promote DX across the company, we are focusing on developing human resources. These individuals will be responsible for creating future business value. We are increasing the number of employees who can use digital technology to drive the development of Astemo’s advanced technologies and the improvement of operational efficiency to approximately 3,000 by around 2030.
Establishing competitive advantage through technology integration and business portfolio management
The Astemo Group aims to further establish a competitive advantage by strategically leveraging the strength of having motorcycle and automobile businesses, as well as its hardware and software integration technologies, which are based on its long-cultivated vehicle systems and electronic control technologies. We are striving to create innovative value in the next-generation mobility society by building a foundation for sustainable growth through the synergistic advancement of technology integration and business portfolio management.
Creating added value through the integration of hardware and software
While conventional vehicles are controlled by distributed ECUs for different functions, integrated control using an integrated ECU and a vehicle OS is expected to advance, leading to the development of IoV platforms that enable flexible software updates via cloud connectivity. The Astemo Group is a rare presence in the industry, possessing both hardware and software technologies. Leveraging this unique strength, we are advancing high-value-added technological development.
Broad coverage in automobile and motorcycle businesses, and portfolio management
Through a balanced combination of our diverse strengths, including dominant market share in the motorcycle business, high profitability in the internal combustion engine (ICE) business, and resilience (stability) in the chassis business, we achieve high margins and strong cash flow generation. Using cash flows obtained from these businesses, we are accelerating investment towards evolving into a system provider in the areas of electrification and SDVs, and will grow into a core player in next-generation mobility.
Business Strategy and Environmental Strategy
Strengthening competitiveness with a solid management foundation and accelerating investment in growth businesses
The Astemo Group uses cash flow generated from core businesses as a driving force to accelerate the transformation of its business portfolio and is working to create new environmental and social value. We are also seeking to further enhance our competitive advantage in global markets by strengthening our operating model and system foundation.
Creating environmental and social value through a growth strategy centered on electrification and software-defined vehicles (SDVs)
The Astemo Group sees the major shift in the automotive industry toward electrification and intelligence as a prime opportunity for medium- to long-term value creation and is formulating a strategy to achieve sustainable and competitive growth. First, in the area of electrification, we will expand our presence in the electrification market with a focus on core products such as inverters and motors. By establishing and expanding sales of competitive standard models and developing energy management systems, we will contribute to the realization of a decarbonized society. In addition, in the area of SDVs, by improving integrated ECUs and software, we will be able to integrate the control of the powertrain, brakes, suspension, steering, and other functions, enabling safer and smoother driving. Furthermore, by building an IoV platform, we will develop fundamental technologies for mobility services, leading to improved safety, comfort, and quality of life. Through these initiatives, we will transform our business portfolio and transition into a solutions provider that supports all aspects of mobility through advanced technologies, creating economic, environmental, and social value in an integrated manner.
Business portfolio visualized
Strengthening our business foundation through OPM 2.0, AI utilization, and DX
We are working to transform the entire Group to build a robust operational structure that supports sustainable business growth and further enhances our competitiveness in global markets. By evolving our previously deployed “OPM (operating model) 1.0” into “OPM 2.0” from FY2024, we have achieved even more flexible and resilient business operations. In parallel, by promoting the “TOPPAKO Project” as one of our DX measures, we are enhancing our entire supply chain business process—including demand-driven production planning, production and inventory management, shipping and delivery, and accounting—and accelerating decision-making, thereby improving overall organizational productivity and value creation capacity. Additionally, we are accelerating technological innovation and operational reform through active AI utilization. In addition to utilizing AI in product development and manufacturing, we are also using it to automate and streamline indirect operations, creating an environment where employees can focus on more creative activities.
Promoting an environmental strategy integrated with our business strategy
Through an environmental strategy integrated with its business strategy, the Astemo Group is working to reduce risks and create business opportunities toward the realization of a decarbonized society. We have obtained SBT certification and have set greenhouse gas emission reduction targets that are aligned with the Paris Agreement. With an eye toward the future introduction of a carbon pricing system, we are promoting Scope 1 and 2 CO2 emission reductions for both cost competitiveness and risk management. We are also working to reduce the environmental impact of our business activities by introducing renewable energy and engaging in energy-saving activities.
For Scope 3, we aim to contribute to reducing society’s overall CO2 emissions by expanding the supply of electrified products, improving efficiency and energy conservation in vehicle development through SDV technologies, and managing energy via engine control and driver assistance system optimization. We are also working to contribute to a recycling-oriented society by actively using recycled and environmentally friendly materials. We are dedicating resources to each of these activities, which align with our Group’s material issues.