Q2 FY2017 Results December 7, 2017

Transcription

1 Q2 FY2017 Results December 7, 2017 MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

2 Company Profile President and CEO, Takashi Mikogami MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

3 1.Message from the President Meeting customer needs by leveraging of the know-how and high technology we have cultivated. October 1, 2017, marked the launch of Mitsubishi Logisnext Co., Ltd., formed through the business integration of Mitsubishi Nichiyu Forklift Co., Ltd., and UniCarriers Corporation. Through this integration, we expect to generate synergies by combining the strengths of our individual companies, meeting customer needs through the provision of advanced distribution solutions. Going forward, all employees throughout the Group will step up their efforts to meet stakeholders expectations. I ask for your continued support. Takashi Mikogami President and CEO MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 3

4 2.Company Profile Company Name Head Office Mitsubishi Logisnext Co., Ltd. 1-1, 2-Chome, Higashikotari, Nagaokakyo-shi, Kyoto Japan Established August 1937 President and CEO Paid-in Capital Business Lines Takashi Mikogami 4,890 million yen (as of October 1, 2017) Development, designing, production and sales of logistics system products etc. such as battery forklifts, engine forklifts, robots for transportation, automated warehouses, warehouse management systems, construction machinery, engines for industrial equipment, transmissions, etc. Operation Centers Number of Employees Production Capacity per Year Japan Kyoto, Shiga, Kanagawa and others Overseas United States, Europe, China, Asia and others Approx. 11,000 persons Approx. 115,000 units MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 4

5 3.History Mitsubishi Nichiyu Forklift Co., Ltd have performed the integration of business with UniCarriers Corporation and changed its name to Mitsubishi Logisnext Co., Ltd Nippon Yusoki Co., Ltd. The first reach truck developed in Japan(1958) 1970 Mitsubishi Heavy Industries Ltd. Forklift production commenced 2013 Established Mitsubishi Nichiyu Forklift Co., Ltd Aim to become the world s top-class logistics equipment manufacturer 2011 Established UniCarriers Corporation 1957 The first Nissan Forklift rolls off the assembly line at Nissan Motor's Totsuka Plant Founding of Toyo Carriers Manufacturing Co., Ltd. Production of the first Japan-made forklift Founding of Nissan Forklift Co., Ltd., succeeding Nissan Motor's industrial machinery business Company renamed TCM Corporation MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 5

6 4.Corporate Logo Corporate Logo LOGISNEXT is a newly created word which represents Logistical Equipment & System Solutions Next. This encapsulates our strong commitment to providing customers with optimal solutions utilizing both logistics devices and systems, and to contributing to a brighter future. Blue Gray was adopted as the logo color to convey innovation, progress, sharpness and speed. MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 6

7 5.Japan Domestic Network Production Bases: 5 Distributor Subsidiaries: 11 Headquarters Kyoto Plant Shiga Plant 28 bases Konosu Plant (Global Component Technology) 315 bases Mitsubishi Logisnext Headquarters(Kyoto) Office(Tokyo, Kanagawa) 11 Direct Distributors 1Logisnext UniCarriers 2Logisnext Hokkaido 3Logisnext Tohoku 4Logisnext Tokyo 5Logisnext Shinetsu 6Logisnext Shizuoka 7Logisnext Chubu 8Logisnext Kinki 9Logisnext Chugoku 10Logisnext Shikoku 11Logisnext Kyushu 57 bases Onomichi Plant (UniCarriers Handling Systems) 439 bases 721 bases 65 bases 918 bases 16 branch offices 137 bases nationwide 107 bases 818 bases 1119 bases Mitsubishi Logisnext Office & Plant Sales Subsidiary Head Office Azuchi Plant Shin-Kawasaki Office MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 7

8 6.Overseas Network Mitsubishi Caterpillar Forklift Europe B.V. UniCarriers Europe A.B Mitsubishi Heavy Industries Forklift Dalian Co., Ltd. UniCarriers Americas Corporation (USA) Nichiyu Forklift (Shanghai) Co., Ltd. MF (Shanghai) Co., Ltd. Rapidparts Inc. UniCarriers Manufacturing Spain S.A Anhui Hecha Forklift Co., Ltd. Shanghai Nichiyu Forklift Manufacturing Co., Ltd. Mitsubishi Caterpillar Forklift America Inc. Production Base Mainly Sales Base UniCarriers China Corporation Mitsubishi Logisnext Asia Pacific Pte. Ltd. Nichiyu Forklift Thailand Co., Ltd. MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 8

9 Q2 FY2017 Financial Results President and CEO, Takashi Mikogami MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

10 1.Business environment Economic Trends Despite uncertainty in the economy of mature countries, a gradual recovery trend continues due to an increase in capital investment and improvement of the employment situation mainly in Japan and the United States. Regarding the emerging countries, the Chinese economy continues to grow steadily and the economies of Southeast Asian nations are strong due to strong domestic demand and exports. Forklift Market Trend Number of forklifts in global market in FY2017 (April - September) increased by 15.3% compared to the previous fiscal year. The increase in demand in emerging nations particularly stands out. (China: +40.2%, Asia (including Australia): +14.7% compared to the same period last year ) MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 10

11 2.Financial Highlights Profit and Loss Statement FY2016 1H FY2016 1H (Virtual consolidation ) FY2017 1H Unit: Hundred million JPY YOY change (Comparison with virtual consolidation) Sales 1,049 1,855 2, % Operating profit (Before amortization of goodwill) (Operating profit margin) 69.0 (3.7%) 80.1 (3.9%) % Amortization of goodwill Operating profit (Operating profit margin) Ordinary profit (Ordinary profit margin) (4.5%) 25.8 (2.5%) 13.0 (0.7%) 28.1 (1.4%) 26.9 (1.3%) % Net income (Net income margin) 7.6 (0.7%) 4.4 (0.2%) Balance Sheet FYE 31 March 2016 FY2017 1H Change compared to the previous term Total assets 3,669 3, % Total liabilities 3,069 3, % Net assets % Virtual consolidation: Estimated numbers when FY2016 1H result of Mitsubishi Nichiyu and UniCarriers were to be consolidated. FY2016 1H actual FX rates: USD = JPY EUR = JPY CNY = JPY18.85 FY2017 1H actual FX rates: USD = JPY EUR = JPY CNY = JPY16.42 MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 11

12 3.Business results by segment Sales: In Japan, electric forklift sales growth. In overseas, sales increase due to demand expansion. Unit: Hundred million JPY 国内事業海外事業 Domestic Business 2,500 Overseas Business 2,000 1,500 1, , 国内事業 ,057 海外事業 ,200 FY2015 FY2016 FY2016 1H FY 年 9 月期 2016 年 9 月期 2016 年 9 月期 2017 年 9 月期 1H 1H (Virtual 仮想連結 consolidation) 1H (in hundred million yen) , , , Europe 17% China & Asia Americas 33% Japan 42% 0.0 FY2015 FY2016 FY2016 1H FY 年 9 月期 2016 年 9 月期 2016 年 9 月期 2017 年 9 月期 1H 1H (Virtual consolidation) 1H 仮想連結 MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 12 8% Overseas Business 55.1% Sales by region Operating profit:in Japan, profit increased due to electric forklift sales growth and positive depreciation of yen. In overseas, profit decreased due to temporary factors. FY2016 1H (adjusted consolidation) & FY2017 1H are actual values before goodwill amortization. Domestic Business Overseas Business Operating profit by segment Domestic Business 44.9% Domestic Demand expansion in domestic battery-powered forklifts Positive impact from yen depreciation Sales increase in KD and repair parts due to strong sales overseas. Overseas Sales increase by market growth Domestic Demand expansion of the battery-powered forklift market Profit improvement by yen depreciation Overseas Impact of hurricanes in US Allowance for doubtful accounts has been posted at UC China

13 4.Inc./ Dec. factors of consolidated sales (FY2016 1H vs FY2017 1H) Revenue increased due to the positive impact from yen depreciation and increased sales in Japan and the US (Unit: Hundred million JPY) USA Europe 10 China & Asia 4 2,056 FX impact Domestic Increased by 20.1 billion yen 1, FY2016 1H (Virtual consolidation) FY2017 1H MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 13

14 5.Inc./ Dec. factors of consolidated operating profit(before amortization of goodwill) Operating income increased due to sales expansion and cost reduction despite the impact of material cost increase and allowance for doubtful accounts in China 69.0 UC 21.5 FX impact 11.8 Gross profit increase due to sales increase /MIX 14.6 Cost reduction 14.4 Soaring material cost 11.8 Expense increase due to sales increase 2.7 Reclassification of lease income into non-operating profit by applying IFRS (Europe) 2.6 Changes in depreciation method associated with UC integration (declining balance method straight-line method)) 2.2 One-time charge Total 14.1 Accounting change 4.8 UC 1 Operation increased by 0.51 billion yen Loss treatment of China Business Consolidation adjustment and others (Unit: Hundred million JPY) 1 UC:UniCarriers 2 MN:Mitsubishi Nichiyu Forklift 80.1 UC 26.6 MN 47.5 MN+UC Operation increased by 1.11 billion yen MN 2 Operation increased by 0.6 billion yen MN 53.5 FY2016 1H (Virtual consolidation) FY2017 1H MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 14

15 6.Inc./ Dec. factors of consolidated operating profit(after amortization of goodwill) FX impact 5.7 Gross profit increase due to sales increase /MIX 9.4 Cost reduction 11.5 Soaring material cost 9.7 Expense increase 5.1 Consolidation Accounting adjustment change and others MN Operation increased by 0.6 billion yen Due to consolidation of UC 26.6 (Unit: Hundred million JPY) Goodwill amortization of UC FY2016 1H FY2017 1H (Before consolidation of UC) FY2017 1H Inc./ Dec. factors of operating profit of UC (FY2016 1H vs FY2017 1H) 21.5 FX impact 6.1 Gross profit increase due to sales increase /MIX 5.2 Cost reduction Soaring material cost Expense decrease Change in accounting standard 2.6 Loss treatment of China Business 9.3 UC Operation increased by 0.51 billion yen Consolidation adjustment and others FY2016 1H FY2017 1H MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 15

16 Liabilities/ Net assets Assets 7.Consolidated Balance Sheet Total assets increased due to yen depreciation and inventories increased due to higher sales 3,669 3,743 1,782 1,862 Assets increased by 7.4 billion yen 1,887 1,881 FYE 31 March 2017 FY2017 1H 2017 年 3 月期 2017 年 9 月期 Item FYE 31 March 2017 (Unit: Hundred million JPY) FY2017 1H Change Current assets 1,782 1, (Tangible fixed assets) (Intangible fixed assets) (Investments and other assets) Fixed assets in total 1,887 1,881 6 Total assets 3,669 3, Current assets Despite decrease in accounts receivable, inventories increased due to higher sales in Japan and US Fixed assets Although tangible fixed assets increased, intangible assets decreased due to amortization of goodwill. 3,669 3,743 Liabilities 3,069 increased by 3, billion yen Item Current liabilities FYE 31 March 2017 FY2017 1H Change 1,516 1, Fixed liabilities 1,553 1, Total liabilities 3,069 3, Total net assets Total liabilities and net assets 3,669 3, Net assets Current liabilities increased by Accounts payable and short-term loans increased. 3.4 billion yen Borrowing increased by 2.8 billion yen FY ended 2017 年 March, 3 月期 2017 FY2017 年 9 月期 1H due to the sharp rise in the euro, MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. but substantially, decreased by 800 million yen. 16

17 8.Consolidated Cash Flow Statement Free cash flow (FCF) was 3.24 billion yen, continued to secure profit from previous term Beginning balance of cash equivalent Ending balance of cash equivalent (Unit: Hundred million JPY) Increase/ decrease in cash equivalent Cash used in investing activities 74.7 ( 63.0 in FY2016 1H) Cash generated by operating activities ( in FY2016 1H) Cash used in financing activities 23.8 ( 54.7 in FY2016 1H) FCF ( in FY2016 1H ) The main factor that FCF turned worse compared with the same period of the previous year was the decrease of the operating capital( 4.52 billion) by the increase of inventory assets. The increase of inventory assets is due to the impact of hurricane in US and the stock for large orders. These factors will be resolved by the end of the fiscal year, and stock will decrease to the same level as the previous year. MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 17

18 9.Financial Forecast for FY2017 Taking into consideration the temporary and seasonal factors, operating results for this fiscal year are in line with expectations. (Unit: Hundred million JPY) Item FY2017 1H (Results) FY ending March, 2018(Forecast) Units sold 54,000 units 115,000 units Sales 2,056 4,100 Operating profit (Before amortization of goodwill) (Operating profit margin) Amoritization of goodwill 80 (3.9%) (4.6%) 100 Operating profit (After amortization of goodwill) (Operating profit margin) Ordinary profit (Ordinary profit margin) Net income (Net income margin) 28 (1.4%) 27 (1.3%) 4 (0.2%) 90 (2.2%) 80 (2.0%) 35 (0.9%) Dividend per share 11 yen (Appendix)FY2016 1H units sold:50,500 units FYE 31 March 2018 FX rates forecast: USD = JPY105 EUR = JPY120 CNY = JPY16 MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 18

19 Appendix (Main management indicators) FY ended March, 2017 FY2017 1H Indicator Formula (Before amortization of goodwill) (Before amortization of goodwill) Comments Return-on-assets (ROA) Return-on-equity (ROE) Operating profit margin Net income margin Total asset turnover Recievables turnover Inventory turnover Capital adequacy ratio D/E ratio Earnings per share Price earnings ratio (PER) Price book value ratio (PBR) Net income Total assets Net income Shareholders' equity Operaing profit Sales Net income Sales Sales Total assets Sales Accounts recievable Cost of sales Inventories Shareholders' equity Total assets Interest-bearing debt Shareholders' equity Net income Shares outstanding Share value Earnings per share Share value Book value per share 1.3% 6.3% 3.9% (2.2%) (10.7%) (4.8%) 0.2% 1.5% 1.3% (2.2%) 0.2% 1.0 time 4.5 times 15.8% 3.2 times 34.2 yen 20.9 times 1.3 times (12.6 times) 1.4% 1.1 times 4.8 times 6.0 times 5.4 times 16.4% 3.1 times 8.3 yen 96.6 times 1.4 times (2.8%) (17.3%) (3.9%) (2.5%) (15.6 times) Net income declined due to the amortization of goodwill associated with the acquisition of UC and the loss on disposition of Chinese subsidiary. Net income declined due to the amortization of goodwill associated with the acquisition of UC and the loss on disposition of Chinese subsidiary. Stock prices End of FY2016 : JPY714 End of FY2017-1H: JPY804 MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 19

20 Appendix(Transition of stock prices) (yen) Nikkei Average Logisnext share value October 2017 Establishment of Mitsubishi Logisnext Co., Ltd Closing price on 5 December JPY926 (JPY) 40,000 35, , , November 2012 Announced the business integration with Mitsubishi Heavy Industries Ltd. 20,000 15, April 2013 Establishment of Mitsubishi Nichiyu Forklift Co., Ltd July 2015 Announced the acquisition of shares of UniCarriers Corporation May 2017 Determined the management integration policy 0 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 Jan 年 1 月 10,000 5,000 0 MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 20

21 Initiatives for business expansion Takashi Mikogami President and CEO MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

22 1.Building Business Fundamentals Actions taken prior to business integration January, 2017 Converted UniCarriers into a wholly-owned subsidiaries May, 2017 Announce the integration strategy of Unicarriers business operation (except domestic sales) October, 2017 Established Mitsubishi Logisnext Co., Ltd Established Logisnext UniCarriers Maximizing synergies Challenging growth areas Outline of business fundamentals Consolidate Head Office Function Consolidate head office function in Kyoto for enhanced support Glocal/Multi-brand strategy Integration of IT systems Integrated account system and design system (domestic only) Plan to system integration with overseas system in the future Unification of human resources management We will focus on Challenging Spirit Fairness, Simplicity, Transparency Diversity Establishment of the procurement organization Consolidation of suppliers Strengthening buying-power Strengthening of the R&D organization Creation of resources for the growth areas Establish design centers in Japan, US, and Europe Organizing our brands Plan to the best sales strategies based on a multi-brand strategy Building a company culture that can maximize synergies and meet the various needs of customers MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 22

23 2.Business Environment Environment surrounding our company Automation and Mechanization Long-term Operations Advancement of IT technologies such as AI, IoT, etc. Awareness of Environmental Issues Safety and Security Intensification Increase of Competition Future Technologies Remote Operation Technology Centralized Control Solutions Automation Technology (AGV AGF) Strengthening of Alliances Next-Generation Forklifts Safety, Security, Comfort MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 23

24 3-1. Initiatives in the area of automation technologies-logistics solution- AGV:Auto Guided Vehicle Expansion of AGV & AGF demand due to user requests AGF:Auto Guided Forklift for automation, mechanization, safety and security. Laser guided AGF with many advantages is powerful. No need for floor construction Reduction of construction cost, shortening of construction period Flexible layout Collision avoidance and vehicle arrangement control using independently developed drive management software Collision avoidance control Stop for prevention of collision レーザー誘導 AGF Platter Auto No.3 Laser guided AGF Platter Auto Laser guided AGF This AGF can recognize own position from the light reflector which installed in the wall No.1 Choose a bypass route No.2 Emergency stop After launching the laser-guided AGF "Platter Auto," we will greatly increase AGF inquiries and orders, fortify our initiatives in growth areas such as automation technologies to enable providing the best proposal to our customers. MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 24

25 3-2. Initiatives in the area of automation technologies-large scale AGVs- Magnetic guided AGV for large conveyance vehicle On-board Lithium-ion battery 24-hour driverless operation by non-contact automatic charging Conveyance facilitated with charge coils installed underground AGV housing charge pad Ground charge pad (embedded) Housing Non-contact charge pad charge section MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 25

26 3-3. Initiatives in the area of automation technologies-port cargo handling systems- Automatic RTG systems that utilize remote control and image processing technology Participating in the social experiment of a high sophisticated cargo handling system held by the Ministry of Land, Infrastructure and Transport in order to increase the size of container ships, decrease labor force and cope with the aging population. Outline of social experiment Remote Control RTG: Rubber tire gantry crane Three year plan from FY2016 Attempt remote operation in the first year Remote operation Guided by GPS Container handling by remote control Starting demonstration of automation from FY2017 Remote control experiment of RTG Realizing full automation of every field by utilizing technologies such as remote control and image processing. Providing one stop solutions with hardware such as cargo handling machines and automated software. Reach Stacker Top Lifter Forklift for empty container Straddle Carrier Transfer Crane MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 26 Port cargo handling equipment series

27 4.Initiatives for Safety "Good Viewer" perimeter monitoring system Driver s screen shows you the situation of 360 all around the truck by using four-camera image processing. Wide-angle camera Image of monitor screen Features Checking the perimeter at a glance. Covering blind spots from the driver s seat with top view video. No blind spots by the original synthesis technology. Realization of seamless images Improving display visibility by arranging single images around the entire perimeter and front and back. Forward motion displays forward image, neutral/reverse motion displays backward image The red line portion is the composite image area of horizontal and rear camera. Outline of Good Viewer Forward Backward Rear camera image Front camera image Toggles when switching of forward and reverse Advancing safety technology, and providing less accidents move reliability and higher work efficiency. MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 27

28 5.Logistic Vehicle Systems Providing suitable operating solutions through monitoring, dangerous zone checking, conductor analysis, etc. Engine forklifts FX 3G router RFID 3G line CAN data Location information (GPS) Onboard Acceleration equipment Cloud Battery forklifts Our company Service history Failure prediction Operational diagnosis Business systems Customers Dashboard for customers Reach forklifts Web FOCUS Third-party forklifts MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 28

29 Mitsubishi Logisnext will always pursue the newest technologies and provide customers with the most optimal solutions leveraging logistics equipment and logistics systems. MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 29

30 Disclaimer This material is prepared for the sole purpose of providing investors with information and not aimed at solicitation of any buying or selling. Forward-looking statements in this material are based on targets or forecasts and we shall not provide any commitment or guarantees with respect thereto. Please bear in mind when you use this material that the future business results of Mitsubishi Logisnex may be different from our present forecast. The statements concerning the business results are based on various data that we believe to be reliable but we do not guarantee the correctness or completeness of such data. This material is provided based on the premise that each investor should use it relying on his or her ow judgment and responsibility, whatever the purpose of its use may be. Mitsubishi Logisnext shall not be liable whatsoever in the event of any resulting from its use. Please direct inquiries regarding this material to the following: Mr. Saito or Mr. Tsuji Direct line: Planning Division Mitsubishi Logisnext Co., Ltd. 1-1, 2-chome, Higashikotari, Nagaokakyo-shi, Kyoto TEL: FAX: URL: MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved. 30

31 MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.